District of Oregon
Press releases recorded for this federal judicial district.
"Operation Pongo" Leads to Arrest of Two Malaysian Men on Federal Charges of Smuggling Wildlife into the U.S.Read the Press Release
PORTLAND, Ore. – Two Malaysian nationals have been arrested on federal wildlife smuggling charges after they allegedly used mail parcels to illegally smuggle orangutan skulls and parts of other protected wildlife into the United States.
Eoin Ling Churn Yeng, 35, and Galvin Yeo Siang Ann, 33, both Malaysian citizens, were arrested without incident, on Friday afternoon, December 4, by special agents with the U.S. Fish and Wildlife Service and National Oceanic and Atmospheric Administration. Ling and Yeo were arrested soon after arriving in Portland to meet with an associate.
Ling and Yeo are charged in a criminal complaint that alleges multiple counts of illegally importing wildlife into the United States, an offense that carries a statutory maximum penalty of 20 years in federal prison and a $250,000 fine.
According to the criminal complaint, 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).
U.S. Fish and Wildlife agents initiated an undercover operation named “Operation Pongo,” which was inspired by the orangutan’s genus Pongo. The investigation revealed that Ling and Yeo were co-owners of an online business that regularly smuggled endangered wildlife into the United States from 2004 to 2015. The criminal complaint states that U.S. Fish and Wildlife reviewed records that indicate Ling and Yeo have sold wildlife items to multiple individuals and businesses in the United States. Undercover U.S. Fish and Wildlife 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.
Ling and Yeo are expected to make their initial court appearance in U.S. Magistrate Court today at 1:30 p.m.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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 is being prosecuted by Assistant United States Attorney Ryan W. Bounds.
Oregon's U.S. Attorney's Office Hires Suzanne Hayden to Further Federal Smart on Crime ProgramRead the Press Release
PORTLAND, Ore. – Acting U.S. Attorney Billy J. Williams announced today that Suzanne Hayden will join the U.S. Attorney’s Office for the District of Oregon in January, with the responsibility of implementing components of the District’s Smart on Crime Action Plan. The Smart on Crime Initiative is a nationwide effort created by the Department of Justice that directs federal prosecutors to focus on the most serious cases implicating substantial federal interests, while at the same time improving efforts to engage the community and to assist the recently incarcerated through supervised reentry programs. Hayden brings extensive community engagement and public safety experience to the position from her years as a Deputy District Attorney with Multnomah County, and most recently, as Executive Director of the Citizens Crime Commission. She has been a part of the Oregon statewide Justice Reinvestment effort, working with public safety leaders and community members to achieve improved public safety outcomes.
“In this time of limited resources, we are pursuing efforts to work ever smarter to make our communities safe, using data and research to make more informed decisions and strengthening our relationships with our law enforcement partners and the communities we serve,” said Mr. Williams. “With a renewed focus on reducing the disparate impacts of the criminal justice system, we will strengthen protections for vulnerable populations through enhanced prevention, strategic and targeted enforcement and reentry efforts.”
Oregon Felon Receives 10-Year Prison Term for Possessing Stolen FirearmRead the Press Release
EUGENE, Ore. – On Thursday, November 19, 2015 Mitchell Wayne Brolin, 42, of Linn County, Oregon, appeared before U. S. District Judge Michael McShane and was sentenced to 10 years in prison for being a felon in possession of a revolver he stole during the commission of a burglary.
On February 25, 2013, Brolin and two accomplices were burglarizing a home in Lebanon, Oregon, when a neighbor accosted and grabbed Brolin, who was carrying a loaded revolver he had just stolen. Brolin dragged the neighbor across the yard before shaking him loose and jumping into his accomplices’ van. Several other firearms were also stolen from the home.
In September 2015, Brolin pled guilty to being a felon in possession of a stolen firearm. Brolin’s criminal history includes convictions for delivering methamphetamine, felony assault and coercion. Brolin’s sentence was part of a global plea agreement with the U. S. Attorney’s Office and the Linn County District Attorney’s Office.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms, the Linn County Sheriff’s Office and the Albany Police Department. The case was prosecuted by Assistant United States Attorney Frank R. Papagni, Jr. with the assistance of Deputy District Attorneys Jonathan Crow and Michael Wynhausen.
Happy Valley Woman Sentenced for Insurance FraudRead the Press Release
PORTLAND, Ore. – The former owner of a local auto business was sentenced yesterday to 51 months in prison for a scheme that defrauded two insurance companies and netted her $200,000. Lisa Ephrem, 40, of Happy Valley, pleaded guilty in February to mail fraud and aggravated identity theft.
Beginning in 2011, Ephrem obtained group life insurance policies for fictitious employees of her wholesale automobile business, Carr City, located in Portland, Oregon. Ephrem provided false information to the insurance company victims – Standard Insurance Company and LifeMap Assurance Company – claiming that certain people were employees, when in fact they were not. Shortly after the issuance of the policies, Ephrem submitted life insurance claims for the death of six purported employees. Between January 2012, and May 2012, Ephrem submitted eight life insurance claims to Standard and LifeMap totaling $660,000. Standard and LifeMap each paid $100,000 for the death of one purported employee, but denied subsequent claims.
Standard and LifeMap conducted internal investigations and determined that Ephrem had lied (the people were real, and had in fact died, but had not been Carr City employees), and contacted federal investigators. Despite the results of Standard’s and LifeMap’s internal investigations that determined Ephrem’s claims were fraudulent, Ephrem persisted and filed civil lawsuits against both insurance companies seeking payment for the claims. Those lawsuits were eventually dismissed, but cost Standard and Lifemap more than $150,000 in costs and attorney fees.
In sentencing Ephrem to the high end of the sentencing guideline range, U.S. District Judge Michael Mosman noted Ephrem’s extensive criminal history which included bank fraud, and told her she was a grown woman who had “free rein” with her criminal tendencies. He also ordered Ephrem to pay more than $280,000 to Standard and LifeMap for restitution.
Ephrem was ordered to surrender to the Bureau of Prisons by December 17, 2015.
The case was investigated by the FBI and the Social Security Administration Office of the Inspector General. The case was 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.
Department of Justice Announces 10 Tribes to Participate in Initial Phase of Tribal Access Program to Improve Exchange of National Crime InformationRead the Press Release
PORTLAND, Ore. – The Department of Justice announced today the first 10 tribes to participate in an initial User Feedback Phase of the Tribal Access Program for National Crime Information (TAP), a program to provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purposes.
In the District of Oregon, the Confederated Tribes of the Umatilla Indian Reservation (CTUIR) have been selected to participate in this initial phase of the TAP.
The User Feedback Phase will grant access to national crime information databases and technical support to the following tribes: the Cherokee Nation of Oklahoma, the Eastern Band of Cherokee Indians of North Carolina, the Keweenaw Bay Indian Community of Michigan, the Oneida Indian Nation of New York, the Pascua Yaqui Tribe of Arizona, the Suquamish Indian Tribe of the Port Madison Reservation of Washington, the Shoshone-Bannock Tribes of the Fort Hall Reservation of Idaho, the Tulalip Tribes of Washington, the Confederated Tribes of the Umatilla Indian Reservation of Oregon, and the White Mountain Apache Tribe of the Fort Apache Reservation of Arizona.
“This innovative program will allow an unprecedented sharing of critical information between tribal, state and federal governments, information that could help solve a crime or even save someone’s life,” said Deputy Attorney General Sally Quillian Yates. “This initial phase of TAP will help us understand the information gaps and the best ways to use this service to strengthen public safety in Indian country. The TAP program is a reflection of the Justice Department’s commitment to the government-to-government relationship, to overcoming barriers, and building strong partnerships with American Indian and Alaska Native people. The department will continue to work with Congress for additional funding to more broadly deploy the program.”
“Providing the Confederated Tribes of the Umatilla Indian Reservation of Oregon access to federal criminal information databases through the Tribal Access Program for National Crime Information will address a longstanding tribal request for access to national databases and will assist tribal law enforcement in protecting and keeping tribal communities safe,” said Acting U.S. Attorney Billy J. Williams.
“The Tribal Access Program will be critical in protecting native women on the Umatilla Indian Reservation by ensuring all tribal domestic violence protection orders are entered into federal criminal databases. Currently, the CTUIR does not have this ability. My hope is that this will prove to be a program that will eventually be available to all tribes and help protect tribal communities throughout the nation. It has been something tribes have long requested and I'm happy the CTUIR has been chosen to be among the pilot tribes.” Brent Leonhard, CTUIR Tribal Attorney, Office of Legal Counsel.
TAP will support tribes in analyzing their needs for national crime information and help provide appropriate solutions, including a state-of-the-art biometric/biographic computer workstation with capabilities to process finger and palm prints, take mug shots, and submit records to national databases, as well as the ability to access the FBI’s Criminal Justice Information Service (CJIS) systems for criminal and civil purposes through the Department of Justice. TAP will also provide specialized training and assistance for participating tribes.
This initial phase, funded by the Office of Justice Programs’ Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), and supported with technical assistance from the Office of the Chief Information Officer, will focus on assisting tribes that have law enforcement agencies. In the future, the department will seek to address the needs of the remaining tribes and find a long-term solution.
While in the Tribal Law and Order Act of 2010 Congress required the Attorney General to ensure that tribal officials that meet applicable requirements be permitted access to national crime information databases, the ability of tribes to fully participate in national criminal justice information sharing via state networks has been dependent upon various regulations, statutes and policies of the states in which a tribe’s land is located. Therefore, improving access for tribal law enforcement to federal crime information databases has been a departmental focus for several years. In 2010, the department instituted two pilot projects, one biometric and one biographic, to improve informational access for tribes. The biographic pilot continues to serve more than 20 tribal law enforcement agencies.
Departments of Justice and Interior Working Group
In 2014, the Departments of Justice and the Interior (DOI) formed a working group to assess the impact of the pilots and identify long-term sustainable solutions that address both criminal and civil needs of tribes. The outcome of this collaboration was the TAP, as well as an additional program by the DOI’s Bureau of Indian Affairs (BIA) that provides tribes with national crime information prior to making child placement decisions in emergency circumstances. Under the BIA Purpose Code X Program, social service agencies of federally recognized tribes will be able to view criminal history information accessed through BIA’s Office of Justice Services, which will conduct name-based checks in situations where parents are unable to care for their children.
For more information on TAP, visit: www.justice.gov/tribal/tribal-access-program-tap.
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal.
For more information about the Department of the Interior’s Bureau of Indian Affairs, visit: www.indianaffairs.gov/
U.S. Attorney's Office, District of Oregon, Hosts Training on Identifying and Investigating Hate CrimesRead the Press Release
PORTLAND, Ore. - On Wednesday, October 28, the United States Attorney’s Office, in partnership with the United States Department of Justice, and the Department of Public Safety Standards and Training, held a day-long training for local, state, tribal, and federal law enforcement, as well as advocacy organizations and community leaders on the topic of Identifying and Investigating Hate Crimes. The training was held on the anniversary date of the passage of the landmark Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, signed into law by President Obama on October 28, 2009.
The training brought nearly 100 people together, representing law enforcement, as well as state, regional, and national community representatives covering the range of interests of the protected classes under the Act. The training featured information on federal and state hate crimes statutes, with particular emphasis on the importance of accurate reporting of hate crimes, as well as a community panel on how law enforcement and the community can work together to bring awareness and prevention of hate crimes. Several special guest speakers presented throughout the day, including Judy Shepard, mother of Matthew Shepard (after whom the statute was named), U.S. Attorney Billy J. Williams, and Marion County Sheriff Jason Myers. Also, Representatives from the Civil Rights Division of the U.S. Department of Justice and the Federal Bureau of Investigation provided case studies to help provide context for the legal complexities of prosecuting such cases. The training is part of the Department’s nationwide effort to provide training on the Hate Crimes Prevention Act to local law enforcement entities, and to increase awareness on the importance of reporting such crimes.
Acting United States Attorney Billy J. Williams notes that the involvement of the community in such training is key to successful enforcement of hate crimes. “Being able to live safely in one’s community is one of the most basic civil rights. In a diverse nation like ours, every one of us must be able to live, go to school, and work without fear of being attacked because of how we look, what we believe, where we come from, or whom we love,” Williams stated. “My office is committed to working with the Civil Rights Division, Law Enforcement, and the community to properly investigate and prosecute those who commit hate crimes.”
Mrs. Shepard, who spoke to the victim’s perspective on hate crimes, said: “On the long road to passing this law, Dennis and I always kept in mind the true purpose, which was to not only see that justice is done for hate crime victims and their loved ones, but more importantly to educate the public about the sheer size of this problem and the community about the exact ways it can protect them. Trainings like these are vital to ensure the Act delivers its full potential.”
The Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act enables the Justice Department to prosecute crimes motivated by race, color, religion and national origin without having to show that the victim was engaged in a federally protected activity. The Shepard-Byrd Act also empowers the Department to prosecute hate crimes committed because of the actual or perceived sexual orientation, gender identity, gender or disability of the individual targeted.
In late 2014, the FBI released its annual Hate Crime Statistics report for 2013. The report can be accessed at http://www.fbi.gov/about-us/cjis/ucr/hate-crime/2013. According to the report, 5,928 hate crime incidents involving 6,933 offenses were reported by state and local law enforcement partners to the FBI’s Uniform Crime Reporting (UCR) program in 2013. These hate crime incidents impacted a total of 7,242 victims – defined as individuals, businesses, institutions, or society as a whole. Of note, this report was the first UCR publication to contain data collected under the Matthew Shepard and James Byrd, Jr. Hate Crime Prevention Act of 2009.
Underreporting of such crimes remains a significant concern. According to data provided in the report, thousands of police departments did not report data to the FBI, and of those that did, only about 12 percent reported one or more hate crimes. Further, more than 80 cities with populations over 100,000 either did not participate in the reporting program, or affirmatively reported zero hate crimes to the FBI. In his opening remarks, Acting U.S. Attorney Bill Williams stated that, “We must seize this time as an opportunity to redouble our efforts to work together to improve reporting of hate crime data in order to understand, to the fullest extent, the issues facing our communities today.”
12 Individuals in District of Oregon Receive Attorney General AwardsRead the Press Release
PORTLAND, Ore. – Attorney General Loretta Lynch presented 279 Justice Department employees and 33 individuals, including 12 people in the District of Oregon, with Attorney General Awards at a ceremony today in Washington, DC. These annual awards recognize department employees and other individuals for their dedication to carrying out the Department of Justice’s mission.
“The individuals being honored today stand out within a department that holds all of its employees and partners to an extremely high standard of excellence,” said Attorney General Lynch. “They have put in long hours, made immense sacrifices, and, in some cases, placed themselves in harm’s way. They have taken on issues that once seemed intractable, and made progress on problems that once seemed impossible. And their outstanding work is an inspiration to public servants everywhere.”
The 12-person trial team in the matter of U. S. v. Mohamed Osman Mohamud was recognized for The Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security. This award acknowledges a special act or service by a Department employee or group who has greatly contributed to protecting U.S. national security.
“This award recognizes the exemplary accomplishments of the Mohamud trial team as a significant milestone in protecting national security,” said Acting U.S. Attorney Billy J. Williams. “There were numerous unique legal challenges in this case: defining the scope of entrapment; protecting classified and sensitive information and techniques; and maintaining the secrecy of the classified true identities of the undercover agents. Throughout the litigation, the prosecutors met every challenge. Obtaining a guilty verdict in this case, therefore, did more than bring a dangerous extremist to justice. It affirmed the validity of terrorism sting investigations. Their dedication and work ethic greatly contributed to furthering the interests of national security.”
The U.S. Attorney’s Office trial team, listed below, successfully investigated and prosecuted U.S. v. Mohamud for attempted use of a weapon of mass destruction, and was recognized today by receipt of this Attorney General’s Award.
- AUSA Ethan Knight was lead counsel on the investigation and prosecution.
- AUSA Pamala Holsinger joined the team post-indictment and co-chaired the trial.
- AUSA Jeffrey Sweet oversaw the investigation of the case through indictment.
- Trial Attorney Jolie Zimmerman was the Counter Terrorism Section liaison throughout the investigation and trial, handling much of the CIPA litigation.
- Susan Cooke performed automated litigation support duties for trial preparation and trial.
- Rena Rallis performed automated litigation support duties during the discovery phase.
- Lori McBryde provided all other support functions including trial preparation and handling of classified pleadings.
- Special Agent Ryan Dwyer was the lead case agent and testified at trial.
- Supervisory Special Agent Jared Garth supervised the discovery and trial preparation of the case, with particular responsibility for resolving issues involving classified information and sensitive law enforcement techniques.
- Special Agent Miltiadis Trousas managed the undercover operatives and testified at trial.
- Special Agent Elvis Chan managed the undercover operatives and testified at trial.
- Supervisory Special Agent Tom Ford was the FBI HQ liaison who supervised and obtained approvals for the undercover operation
Klamath Falls Armed Career Criminal Sentenced to 15 Years in PrisonRead the Press Release
MEDFORD, Ore. - Russell Ray Moore, 63, of Klamath Falls, Oregon, was sentenced on Monday, October 19, 2015, by U.S. District Court Chief Judge Ann Aiken to 15 years in federal prison after he pled guilty to being a felon in possession of a firearm. Moore will also be on three years of supervised release after he completes his prison term.
The case resulted from three separate incidents in which Moore illegally possessed firearms. On September 3, 2014, Moore was arrested by the Klamath County Sheriff’s Office after a high-speed chase with police in which his vehicle was disabled by a spike strip. Moore possessed a Bersa .380 handgun, a taser, digital scales, and methamphetamine. On September 16, 2014, the Oregon State Police executed a search warrant at Moore’s house after receiving information that he was selling methamphetamine and possessed a sawed-off shotgun. Police found a Winchester 12-gauge shotgun with the barrel sawed off to 15 inches, more than 700 rounds of ammunition, and methamphetamine. On February 25, 2015, police executed another search warrant at Moore’s house after receiving information that he possessed another firearm. In Moore’s bedroom, police found a loaded Hi-Point 9mm handgun, a box of 9mm ammunition, methamphetamine, digital scales, and drug packaging materials. Moore’s repeated association with these weapons, in combination with his serious criminal history, caused local investigators to refer the matter for federal prosecution.
Under federal law, any person who possesses a firearm or ammunition after being previously convicted of three violent felonies or drug trafficking crimes is an Armed Career Criminal subject to a 15-year mandatory minimum prison sentence. Moore is an Armed Career Criminal based upon eight prior felony convictions for delivery and manufacture of methamphetamine, and an additional conviction for attempted murder. Moore also has two prior convictions for felon in possession of a firearm in 1997 and 2012.
This case was investigated jointly by the Klamath County Sheriff’s Office, Oregon State Police, and the Bureau of Alcohol, Tobacco, and Firearms. It was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Multi-Agency Investigation of Large Drug Trafficking Organization Results in the Indictment of 24 DefendantsRead the Press Release
PORTLAND, Oregon – Today, 12 defendants appeared in federal court after being charged in a federal indictment alleging a conspiracy to manufacture, distribute and possess with the intent to distribute methamphetamine, a conspiracy to commit money laundering and a conspiracy to violate the Animal Welfare Act (rooster fighting). The indictment, charging a total of 24 defendants, was unsealed yesterday after the early morning execution of federal and state search warrants in Oregon and Washington.
The underlying case involves a vast drug trafficking conspiracy in which drug cartels, criminal organizations and gangs were sourcing a large drug trafficking organization that was operating within Washington County, Oregon with hundreds of pounds of methamphetamine, which in turn was being sold to other drug distributors within the area.
See the indictment and the government memorandum attached.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation involving the Westside Interagency Narcotics team, Department of Homeland Security Investigations, Hillsboro Police Department – Street Crimes Unit, Beaverton Police Department, Washington County Sheriff’s Office, Tigard Police Department, Portland Police Bureau – Drugs and Vice Division, Clackamas County Interagency Task Force, FBI, DEA, ATF, U.S. Marshals, Multnomah County Sheriff’s Office – Special Investigations Unit, Yamhill County Interagency Narcotics team, Woodburn Police Department, Salem Police Department, and the Department of Agriculture. The Portland Police Bureau’s Special Emergency Reaction Team and the Washington County Tactical Negotiations Team helped with the execution of search warrants. The Humane Society has assisted with the handling of roosters found during the execution of the search warrants. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations and those primarily responsible for the nation’s illegal drug supply. The case is being prosecuted by Assistant U. S. Attorneys Scott Kerin, Patrick Ehlers and AnneMarie Sgarlata.
Federal Investigation into Former Local Business ClosedRead the Press Release
PORTLAND, Ore. - The United States Attorney’s Office announced it has closed its investigation of Safety Net, a former representative payee for Social Security beneficiaries, without the filing of criminal charges.
In March of 2014, federal agents executed a search warrant on the Safety Net offices in Portland pursuant to a search warrant that established probable cause that conserved funds, held by Safety Net on behalf of payees, were significantly less than reflected in Safety Net’s records. The investigation, conducted by the Social Security Administration Office of the Inspector General, Office of Investigations and Office of Audit, revealed accounting and bookkeeping errors, but found no evidence of theft or embezzlement from Safety Net’s clients during the time period under investigation.
Eastern Oregon Ranchers Convicted of Arson Resentenced to Five Years in PrisonRead the Press Release
EUGENE, Ore. – Dwight Lincoln Hammond, Jr., 73, and his son, Steven Dwight Hammond, 46, both residents of Diamond, Oregon in Harney County, were sentenced to five years in prison by Chief U.S. District Judge Ann Aiken for arsons they committed on federal lands.
A jury sitting in Pendleton, Oregon found the Hammonds guilty of the arsons after a two-week trial in June 2012. The trial involved allegations that the Hammonds, owners of Hammond Ranches, Inc., ignited a series of fires on lands managed by the U.S. Bureau of Land Management (BLM), on which the Hammonds had grazing rights leased to them for their cattle operation.
The jury convicted both of the Hammonds of using fire to destroy federal property for a 2001 arson known as the Hardie-Hammond Fire, located in the Steens Mountain Cooperative Management and Protection Area. Witnesses at trial, including a relative of the Hammonds, testified the arson occurred shortly after Steven Hammond and his hunting party illegally slaughtered several deer on BLM property. Jurors were told that Steven Hammond handed out “Strike Anywhere” matches with instructions that they be lit and dropped on the ground because they were going to “light up the whole country on fire.” One witness testified that he barely escaped the eight to ten foot high flames caused by the arson. The fire consumed 139 acres of public land and destroyed all evidence of the game violations. After committing the arson, Steven Hammond called the BLM office in Burns, Oregon and claimed the fire was started on Hammond property to burn off invasive species and had inadvertently burned onto public lands. Dwight and Steven Hammond told one of their relatives to keep his mouth shut and that nobody needed to know about the fire.
The jury also convicted Steven Hammond of using fire to destroy federal property regarding a 2006 arson known as the Krumbo Butte Fire located in the Malheur National Wildlife Refuge and Steen Mountain Cooperative Management and Protection Area. An August lightning storm started numerous fires and a burn ban was in effect while BLM firefighters fought those fires. Despite the ban, without permission or notification to BLM, Steven Hammond started several “back fires” in an attempt save the ranch’s winter feed. The fires burned onto public land and were seen by BLM firefighters camped nearby. The firefighters took steps to ensure their safety and reported the arsons.
By law, arson on federal land carries a five-year mandatory minimum sentence. When the Hammonds were originally sentenced, they argued that the five-year mandatory minimum terms were unconstitutional and the trial court agreed and imposed sentences well below what the law required based upon the jury’s verdicts. The Ninth Circuit Court of Appeals, however, upheld the federal law, reasoning that “given the seriousness of arson, a five-year sentence is not grossly disproportionate to the offense.” The court vacated the original, unlawful sentences and ordered that the Hammonds be resentenced “in compliance with the law.” In March 2015, the Supreme Court rejected the Hammonds’ petitions for certiorari. Today, Chief Judge Aiken imposed five year prison terms on each of the Hammonds, with credit for time they already served.
“We all know the devastating effects that are caused by wildfires. Fires intentionally and illegally set on public lands, even those in a remote area, threaten property and residents and endanger firefighters called to battle the blaze” stated Acting U.S. Attorney Billy Williams.
“Congress sought to ensure that anyone who maliciously damages United States’ property by fire will serve at least 5 years in prison. These sentences are intended to be long enough to deter those like the Hammonds who disregard the law and place fire fighters and others in jeopardy.”
Assistant U.S. Attorneys Frank R Papagni, Jr., AnneMarie Sgarlata and Kelly Zusman handled the prosecution of this case.
Two Oregon Men Indicted Federally for Firearms Trafficking to MexicoRead the Press Release
EUGENE, Ore. – The U.S. Attorney’s Office announced that a federal grand jury has indicted two men for their involvement in a scheme to illegally purchase and sell firearms and smuggle them to Mexico. Those men are Erik Flores Eloretgui, 33 years old, of Beaverton, Oregon and Robert Allen Cummins, 56 years old, of Eugene, Oregon. Defendant Cummins appeared today on a summons before Magistrate Judge Thomas M. Coffin, who ordered Cummins to return to court on October 5, 2015, for a hearing on release conditions and detention status.
The indictment is the result of a year-long investigation and international collaboration that began after a large shipment of firearms was found in Sonora, Mexico. According to the indictment, members of the conspiracy deposited tens of thousands of dollars near the U.S./Mexico border to bank accounts associated with Erik Flores Elortegui. Defendants then allegedly straw-purchased over $70,000 dollars’ worth of high-caliber firearms, including .50 caliber and AK-47 type rifles, some of which were recovered in Mexico soon after being purchased.
The indictment further alleges that on the same day as a $38,100 firearms purchase in Oregon City involving three .50 caliber rifles, Erik Flores Eloretegui purchased a Dremel grinding tool – commonly used by firearms traffickers to grind off firearms’ serial numbers – and a few days thereafter drove from Oregon and crossed into Mexicali, Mexico.
In announcing the indictment, Acting U. S. Attorney Billy J. Williams said, “Those who illegally deal and smuggle firearms share responsibility for the violence those firearms promote. This case serves to put firearms traffickers, and anyone who illegally buys or sells firearms, on notice that they will be held accountable for violating laws designed to keep firearms out of the hands of criminals and to assure the safety of citizens both here and abroad.”
Summary of the Charges
• Count 1: conspiracy to smuggle firearms from the United States to Mexico and making false statements in connection with the acquisition of firearms, which carries a maximum sentence of five years in prison and up to a $250,000 fine.
• Counts 2 through 13: making false statements in connection with the acquisition of firearms – each of those charges carries a maximum sentence of five years in prison and up to a $250,000 fine.
• Counts 14 through 25: illegal smuggling of goods from the United States – each of those charges carries a maximum sentence of ten years in prison and up to a $250,000 fine.
• Count 26: unlawful dealing in firearms, which carries a maximum sentence of five years in prison and up to a $250,000 fine.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Armed Bank Robber Sentenced to 32 Years in Federal PrisonRead the Press Release
MEDFORD, Ore.—Bradley William Monical, 45, of The Dalles, Oregon, was sentenced on September 23, 2015 by U.S. District Judge Michael McShane to 32 years in prison for committing seven bank robberies in Southern Oregon, Eastern Washington and Idaho, all in 2010. Judge McShane ordered the sentence to be served concurrently with state sentences previously imposed in Jackson and Coos County Circuit Courts for robbery in the first degree, robbery in the second degree, unlawful use of a weapon, felon in possession of a firearm, and escape. Monical was also ordered to pay $68,698 in restitution and to serve three years of supervised release.
The bank robberies Monical plead guilty to include:
- June 11, 2010, at Bank of America in Redmond, Oregon;
- August 27, 2010, at Wells Fargo Bank in Coeur d’Alene, Idaho;
- September 4, 2010, at Banner Bank in Walla Walla, Washington;
- October 2, 2010, at Sterling Savings Bank in Spokane Valley, Washington;
- November 9, 2010, at Sterling Savings Bank in Medford, Oregon;
- December 2, 2010, at U.S. Bank in Kennewick, Washington; and
- December 20, 2010, at Sterling Savings Bank in Klamath Falls, Oregon.
During the Oregon robberies, Monical was armed with a pistol. In the Washington and Idaho robberies he was armed with what appeared to be a hand gun.
Monical was in custody on Oregon bank robbery charges when he escaped from the Jackson County Jail on November 19, 2012. Defendant was later found in Oregon City and was arrested by the U.S. Marshals Service. At the time of his arrest, he was found with his girlfriend, Carolyn Gibson. Gibson pled guilty to concealing a person from arrest and providing money and a vehicle for Monical after his escape. Gibson was sentenced to probation on February 2, 2015.
Monical also has pending charges of robbery and attempted murder in Marion County, Oregon.
The bank robbery and escape investigations were conducted by the FBI, U.S. Marshals Service, Redmond Police Department, City of Coeur d’Alene Police Department, Walla-Walla Police Department, Spokane Valley Police Department, Ashland Police Department, Medford Police Department, Jackson County Sheriff’s Office, Kennewick Police Department and Klamath Falls Police Department. The federal case was prosecuted by Assistant U.S. Attorney Judith R. Harper.
Albany Man Pleads Guilty to Facebook ThreatsRead the Press Release
EUGENE, Ore. – Timothy Loren McCoy Fleming, 23, of Albany pled guilty today in U.S. District Court to transmitting a threat in interstate commerce. Fleming admitted in his plea agreement that he posted on Facebook threats to kill a police officer at the Albany City Hall, along with a picture of himself holding a pistol.
Transmitting a threat in interstate commerce is a felony offense punishable by up to five years in prison and a $250,000 fine.
Fleming made the threats last January and was arrested on a state probation violation. He was transferred to federal custody in April after a complaint was filed in U.S. District Court. Fleming remains in custody pending his sentencing hearing on January 4 before U.S. District Judge Michael McShane in Eugene.
This case was investigated by the Albany Police Department and the FBI. Assistant U.S. Attorney William “Bud” Fitzgerald is prosecuting the case.
Beaverton and Eugene Police Departments Receive Federal Grant Funds for Body Worn CamerasRead the Press Release
PORTLAND, Ore. – Yesterday, Attorney General Loretta Lynch announced that the Justice Department has awarded grants totaling more than $23.2 million to 73 local and tribal agencies in 32 states to expand the use of body-worn cameras and explore their impact. The grants, awarded by the Department’s Office of Justice Programs (OJP), are part of President Obama’s proposal to purchase 50,000 body-worn cameras for law enforcement agencies within three years.
“This vital pilot program is designed to assist local jurisdictions that are interested in exploring and expanding the use of body-worn cameras in order to enhance transparency, accountability and credibility,” said Attorney General Lynch “The impact of body-worn cameras touches on a range of outcomes that build upon efforts to mend the fabric of trust, respect and common purpose that all communities need to thrive.” http://www.justice.gov/opa/speech/attorney-general-loretta-e-lynch-delivers-remarks-white-house-champions-change-event.
The grants, which require a 50/50 in-kind or cash match, can be used to purchase equipment and require that applicants establish a strong implementation plan and a robust training policy before purchasing cameras. The long term costs associated with storing this information will be the financial responsibility of each local agency.
“I am pleased that two police departments in Oregon are recipients of these federal funds,” said Acting U.S. Attorney Billy J. Williams. "The use of body-worn cameras will assist our law enforcement partners and the communities they serve by providing greater transparency into the challenging work done every day."
BJA has launched a comprehensive online toolkit that consolidates research, promising practices, model policies and other tools that address issues surrounding body-worn cameras, including implementation requirements; image retention; concerns of policy makers, prosecutors, victim and privacy advocates; and community engagement and funding considerations. The toolkit is available at: https://www.bja.gov/bwc/.
OJP’s Bureau of Justice Statistics is collecting data on body-worn camera usage through surveys of law enforcement agencies. It is also designing data collection forms for future surveys of prosecutors and public defenders to measure how body-worn camera footage is being used by the courts in criminal cases.
For additional information about the BWC Pilot Implementation Program, visit http://www.bja.gov/bwc/pdfs/BWCPIP-Award-Fact-Sheet.pdf.
Justice Department Awards over $97 Million to Improve Public Safety and Victim Services for American Indians and Alaska NativesRead the Press Release
WASHINGTON, DC. – The Department of Justice today announced 206 awards, totaling more than $97 million, to American Indian tribes, Alaska Native villages, tribal consortia and tribal designees. The announcement was made last week at the 2015 Tribal Leader Briefing, sponsored by the National Congress of American Indians, and included Tribal leaders, Members of Congress and Administration officials.
Awards to American Indian Tribes in Oregon include funding for Tribal Youth Programs; Juvenile Healing to Wellness Courts; Alcohol and Substance Abuse Programs; Comprehensive Tribal Victim Assistance Program; Community Police Programs; and; Violence Against Women Programs, as follows:
$1,227,951 Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians
$ 101,969 Confederated Tribes of the Grand Ronde Community of Oregon
$ 830,457 Confederated Tribes of the Warm Springs Reservation
$ 683,439 Coquille Indian Tribe
$ 450,000 The Klamath Tribes
The awards are made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
“My office has a strong history of working closely with the tribal communities in Oregon on issues of public safety, juvenile justice, violence against women, services for crime victims, and tribal youth programs,” said Acting U.S. Attorney Billy J. Williams. “These funds will make a significant impact on enhancing community safety and prevention programs throughout Oregon, and across the nation.”
“For the past five years, the CTAS program has helped tribes develop their own comprehensive approaches to making their communities safer and healthier,” said Acting Associate Attorney General Stuart F. Delery. “CTAS grants have funded hundreds of programs to better serve crime victims, promote community policing, and strengthen justice systems. This year’s awards also support efforts to reduce domestic and dating violence, and promote wellness and healing for tribal youth, among many other programs.”
The awards are made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
Since then, more than 1,400 grants totaling more than $620 million have been provided to enhance law enforcement practices, victim services, and sustain crime prevention and intervention efforts in nine purpose areas; public safety and community policing; justice systems planning: alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.
American Indians and Alaska Natives experience disproportionate rates of violence and victimization and often encounter significant obstacles to identifying and accessing culturally relevant services. CTAS funding helps tribes to develop and strengthen tribal justice systems’ response to crime, while significantly increasing programs and services available to them.
A listing of all of the awards is available at www.justice.gov/tribal.
This announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
Former Federal Grand Juror Sentenced to Probation for Leaking Sealed Grand Jury InformationRead the Press Release
PORTLAND, Ore. – Today, Lori Ann Cubit, 56, of Gresham, Oregon, was sentenced by U.S. District Judge Michael W. Mosman to one year of probation following her conviction of the misdemeanor crime of criminal contempt of court. As a condition of probation, Mrs. Cubit will be required to perform 100 hours of community service.
On December 30, 2013, a federal grand jury was presented with information related to the criminal activities of a violent Blood street gang involved in drug trafficking and other crimes in the greater Portland, Oregon metropolitan area. The evidence presented to the grand jury was the result of a year-long Metro Gang Task Force investigation which included the use of federal wiretaps to target the involved individuals. On December 31, 2013, the government learned through an informant that secret information regarding the grand jury proceedings had been disclosed within the community. The leaked information included the identities of people who had been criminally charged by the grand jury, the charges they faced and the existence and use of federal wiretaps and evidence derived from them. At the time of the disclosure, the indictments were under seal and not subject to disclosure. Due to the leak of information, a series of planned search warrants and arrests had to be canceled due to concerns over officer safety. One defendant fled the jurisdiction.
An investigation into the source of the leaked grand jury proceedings revealed that Mrs. Cubit, a former federal grand jury member, had disclosed the information to family members and others. From there, the information spread throughout the community.
On April 29, 2015, Mrs. Cubit pled guilty to one count of criminal contempt of court. In her plea agreement, Mrs. Cubit admitted that, on or about December 30, 2013, she knowingly disobeyed the order and commands of a Court of the United States and of U.S. District Judge Ancer L. Haggerty that she not to disclose any information relating to any matter occurring before the grand jury. She additionally admitted that she disclosed information from the grand jury on December 30, 2013, to unauthorized individuals, including evidence presented to the grand jury, the existence of federal wiretaps, the names of the defendants and the criminal charges they faced, all while the evidence presented and charging documents were still under seal and not subject to disclosure to the public.
Both before and during the sentencing hearing, Mrs. Cubit apologized for her actions.
"The rules governing grand jury proceedings are critically important to the integrity and safety of the investigative process and they must be followed," stated Acting U.S. Attorney Billy J. Williams. "This case, unfortunately, highlights the serious consequences that can result from the unauthorized disclosure of criminal matters, even when it is not done with any malicious intent. We are grateful that we found out about the leak when we did so that no law enforcement officers were placed in danger as a result of Mrs. Cubit’s actions."
This case was investigated by the Metro Gang Task Force (MGTF) and Federal Bureau of Investigation (FBI). The case was prosecuted by Assistant U. S. Attorney Scott Kerin.
US v. City of Portland - Compliance Assessment ReportRead the Press Release
The United States has prepared the enclosed periodic compliance status assessment report (hereinafter, ‘Report’) in preparation for our September 14, 2015 meeting with the Albina Ministerial Alliance Coalition for Justice and Police Reform (AMAC) regarding the City of Portland’s (the City) progress in implementing the parties’ Settlement Agreement,
see Collaborative Agreement 15, Dec. 30, 2013, ECF No. 55-1. This Report also serves as a platform to respond to the Court’s order to "describe to the Court the progress being made toward achieving substantial compliance with all provisions of the Settlement Agreement and any obstacles or impediments toward that end." Order, July 30, 2015, ECF No. 99. We will provide a copy of this Report to the Court, the AMAC, and the Compliance Officer/Community Liaison (COCL), and we anticipate presenting a copy to the Community Oversight Advisory Board (COAB) at its October meeting. We also plan to post it on our public DOJ website. In addition to the comprehensive assessment required pursuant to paragraph 175 of the Settlement Agreement, see ECF No. 4-1 175, the United States may provide additional periodic compliance status assessment reports and technical assistance as we monitor the City’s compliance with the Settlement Agreement, pursuant to paragraph 167.
For the attached Report, we reviewed extensive documentation, particularly PPB’s quarterly self-assessment reports from the First Quarter of 2014 through the present. Each quarterly self-report referred to documentation that PPB believes supports its own assessment of compliance. References to "folders" herein are to the City’s individually-numbered electronic folders corresponding to the paragraph(s) of the Settlement Agreement that the documentation reportedly supports. This Report considers the information provided by the City as of August 28, 2015, up to and including the Quarterly Report for the Second Quarter of 2015 and supporting documentation. In addition to document review, we also consulted with our two expert consultants, conducted interviews of City employees, and made personal observations at City-sponsored meetings (such as the Community and Police Relations Council, Citizens Review Committee, Community Oversight and Advisory Board, Behavioral Health Unit Advisory Committee, and the Training Advisory Council).
As the City is aware, the Effective Date of the Settlement Agreement is August 29, 2014. During this past year, however, the DOJ and City have engaged in additional settlement negotiations regarding the City’s appeal of the Court’s order entering the Settlement Agreement, which was finally resolved on July 30, 2015, when the Court entered an amended Order. To the extent that we have not yet been able to engage in a full assessment of implementation of any particular area of the Settlement Agreement, we have so noted in our analysis.
This Report uses the following color-coded compliance status levels to indicate our current assessment of PPB’s progress in complying with each provision of the Settlement Agreement:
Blue: compliance rating pending or not measured. This level indicates that either the specific provision does not have a specific measurement to assess, or that the DOJ has not yet been able to fully assess compliance, either due to insufficient documentation provided for assessment, or because DOJ must complete additional analysis/observation of how the specific provision is being implemented.
Green: substantial compliance with an ongoing obligation. This level indicates that the City has implemented the specific provision as required by the Settlement Agreement, and that the City has an ongoing obligation to continue such action to remain in compliance.
Yellow: partial compliance with an ongoing obligation. This level indicates that while there has been progress made with implementation, specific areas need further attention in order to reach substantial compliance.
Red: non-compliance. This level indicates that we have recognized barriers to achieving implementation of the provision that must be addressed to achieve compliance.
The Parties have acknowledged that the systemic reforms required by the Settlement Agreement will take time to implement.
See, e.g., Settlement Agreement 178(a) (anticipating substantial compliance with all provisions by October 12, 2017). Our analysis and technical assistance provided with this Report is intended to both acknowledge the City’s accomplishments achieved thus far in the implementation of the Settlement Agreement and to advise the City on certain course corrections that will help achieve compliance.
As always, we appreciate the various City bureaus’ efforts and progress in implementing the terms of our Settlement Agreement and look forward to a continued cooperative relationship in achieving our mutual goal of sustained constitutional and effective policing in the City of Portland.
For a copy of the original cover letter as well as the full compliance report please see the attached .pdf document.
us_v._city_of_portland_-_compliance_assesment_report_and_cover_letter_-_september_10_2015.pdf (556.05 KB)
Tumalo Falls Vandalism Case ResolvedRead the Press Release
EUGENE, Ore. - On May 2, 2015, the railing at Tumalo Falls in Tumalo, Oregon, was vandalized. The U.S. Forest Service investigated the incident, issued a federal ticket for the violation, and referred the matter to the U.S. Attorney’s Office. A fine was assessed and restitution was paid to the U.S. Forest Service to repair the railing. The citation is now resolved. The details of the federal ticket are not public record and no further information will be provided.
Bend Area Plumber Pleads Guilty to Filing False Federal Tax Returns and Omitting $1.6 Million in IncomeRead the Press Release
EUGENE, Ore. –Yesterday, Gary L. Ford, 55, of Bend, Oregon, pled guilty to willfully filing a false federal income tax return. As part of his plea agreement, Ford, the owner and operator of Summit Plumbing in Bend, Oregon, admitted that he failed to report more than $1.6 million of income on his federal tax returns for tax years 2006 through 2009. Ford also admitted that he was responsible for all of his plumbing business’s and his personal financial record keeping, including accounting, sales, and invoicing, and that he prepared the federal income tax returns and related schedules.
Sentencing is set for January 5, 2016, at 10 a.m. before Chief U.S. District Judge Ann Aiken. The maximum penalty for filing a false return is three years in prison and a $100,000 fine.
This case was investigated by IRS Criminal Investigations and is being prosecuted by Assistant U.S. Attorney Scott E. Bradford.
Lincoln County Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
EUGENE, Ore. – Troy Wooley, 48, of Newport, Oregon, pled guilty to possession of child pornography and was sentenced today by Chief U. S. District Judge Ann Aiken to 120 months in prison, to be followed by a lifetime term of supervised release.
The federal charges were brought after the Newport Police Department received a tip that computer equipment belonging to Wooley contained child pornography. According to the prosecutor, Wooley had an extensive criminal history that included prior convictions for sex abuse and possession of child pornography. He was in possession of approximately 86 images of child pornography.
This case was investigated by the Newport Police Department, the Albany Police Department and the FBI. This case was prosecuted by Assistant U.S. Attorney Amy Potter.
Justice Department Reaches Proposed ADA Settlement Agreement on Oregon's Developmental Disabilities SystemRead the Press Release
The U.S. Justice Department announced today, along with private plaintiffs, that it has entered into a proposed settlement agreement with the state of Oregon that will resolve violations of the Americans with Disabilities Act (ADA) and 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 proposed agreement resolves a class action lawsuit by private plaintiffs in which the department intervened. The parties’ proposed settlement agreement must still be approved by U.S. Magistrate Judge Janice Stewart of the District of Oregon, who is presiding over the lawsuit. The agreement will be filed with the court in the coming weeks.
The department 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 to sheltered workshops.
As a result of the proposed settlement, over the next seven years, 1,115 working-age adults with I/DD who are currently being served in segregated sheltered workshops will have opportunities to work in real jobs at competitive wages. Additionally, at least 4,900 youth ages 14 to 24 years old will receive supported employment services designed to assist them to choose, prepare for, get and keep work in a typical work setting. Half of the youth who receive employment services will receive, at a minimum, an individual plan for employment through the state’s Office of Vocational Rehabilitation Services.
The proposed 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.
The proposed agreement recognizes that Oregon has made substantial progress in providing employment services to and improving employment outcomes for individuals with I/DD since the filing of the plaintiffs’ complaint and the department’s complaint-in-intervention. In 2013 and 2015, respectively, Oregon’s then Governor John Kitzhaber issued Oregon Executive Orders 13-04 and 15-01 and the state developed Integrated Employment Plans committing to implement strategies for the Oregon Department of Human Services and Oregon Department of Education to improve Oregon’s employment service system for individuals with I/DD. These plans call upon the state to reduce its reliance on segregated sheltered workshops and increase its investment in supported employment services.
“Work is a fundamental aspect of most people's lives,” 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. We are pleased that the state of Oregon has fully embraced integrated employment services for people with intellectual and developmental disabilities and we look forward to the new ways people with intellectual and developmental disabilities will be able to contribute to their communities as this proposed agreement is implemented.”
“This proposed agreement not only realizes the requirements of federal law, but just as importantly, it embraces policies and practices to support both youth and adult community members with disabilities to successfully interact and work alongside non-disabled Oregonians,” said Acting U.S. Attorney Billy J. Williams of the District of Oregon. “The implementation of the agreement will bring all of our communities together in recognizing the work capabilities of individuals with intellectual and developmental disabilities.”
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 Justice Department’s Civil Rights Division.
Salem Man Sentenced to 15 Years Under the Armed Career Criminal ActRead the Press Release
PORTLAND, Ore. – Alberto Contreras, 34, of Salem, Oregon, was sentenced today under the Armed Career Criminal Act to the mandatory minimum sentence of 15 years in prison by U. S. District Court Judge Marco A. Hernandez. Contreras pled guilty to being a felon in possession of a firearm with an Armed Career Criminal enhancement on March 23, 2015. Following his prison term, Contreras will serve five years of supervised release.
This case arose out of an investigation by the Salem Police Department after they developed information that Contreras was selling methamphetamine while carrying a firearm. Following a traffic stop of the vehicle he was driving on March 12, 2014, police developed probable cause to search the vehicle, and a loaded 9mm Ruger pistol, which had previously been stolen, was found hidden in the vehicle in addition to a digital scale. Subsequently, Contreras allowed the police to search his apartment and a small amount of methamphetamine and two digital scales were located.
Under federal law, any person who possesses a firearm after being previously convicted of three violent felonies or drug trafficking crimes qualifies as an armed career criminal and faces a mandatory 15-year minimum sentence. Contreras qualified for that sentence based upon the following prior convictions: (1) Delivery of a Controlled Substance, Marion County, 2001, sentence of 16 months imposed; (2) Assault II, Marion County, 2003, sentence of 60 months imposed; (3) Delivery of a Controlled Substance, Marion County, 2011, sentence of 19 months imposed.
This case was investigated by the Salem Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U. S. Attorney Fred Weinhouse.
Violent Career Criminal Sentenced to 50 Years in PrisonRead the Press Release
EUGENE, OR – Thomas William Cornelius, Jr., age 50, of Coos County, Oregon, was sentenced on Tuesday, September 1, 2015, by Chief U.S. District Judge Anne Aiken to 50 years in prison for being a felon in possession of firearms and for violent assaults he committed in prison while awaiting trial.
Cornelius, who has a lengthy criminal record, began burglarizing residences throughout Oregon shortly after being released from prison in August 2010. Cornelius forcibly broke into homes and, while armed with a loaded gun, stole firearms, jewelry, cash and electronics. By May 2011, Cornelius had burglarized 25 homes in Coos, Curry, Lane and Douglas counties. While returning from a vacation in Hawaii, Cornelius was stopped for speeding by an Oregon State trooper. The trooper arrested Cornelius after discovering two loaded pistols in the trunk of his rental car, which he had stolen during prior burglaries.
A subsequent investigation by the Oregon State Police and the Bureau of Alcohol, Tobacco and Firearms led to the recovery of several other guns and valuables Cornelius had stolen from burglarized homes. The investigation also led to the identification and prosecution of Cornelius’ accomplices. In September 2011, a federal grand jury indicted Cornelius for being a felon in possession of stolen weapons.
While awaiting trial in the Federal Correctional Institution in Sheridan, Oregon, Cornelius assaulted another inmate from behind with a prison shank. He bashed the inmate several times in the head and then stabbed him in the abdomen. Prison officials transferred Cornelius into the Special Housing Unit at Sheridan. In August 2013 Cornelius attacked another inmate with a razor blade he had secreted in his clothing. Cornelius repeatedly cut the throat of this inmate, who was handcuffed at the time. The inmate survived the attack.
A federal grand jury returned additional indictments against Cornelius for the prison assaults. Three separate trials ensued. In 2014 and 2015 federal trial juries convicted Cornelius for assault with a dangerous weapon, assault with intent to commit murder, possessing prohibited objects in a correctional facility, and eight felon-in-possession charges.
Cornelius’ criminal history includes convictions for:
- Burglary (1985, 1988)
- Unauthorized Use of a Motor Vehicle (1985, 1986)
- Failure to Appear (1985)
- Escape (1988, 1990)
- Assault (1988, 1990)
- Inmate in Possession of a Firearm (1990)
- Assault in the Second Degree with a Firearm (1997)
- Robbery in the First Degree with a Firearm (1997)
- Felon in Possession of a Firearm – Armed Career Criminal (1997).
In the 1997 case, Cornelius robbed a Portland, Oregon jewelry store and shot the owner during the course of the robbery.
After a sentencing hearing on September 1, 2015, Chief Judge Aiken sentenced Cornelius to a total of 50 years in federal prison based on the three jury convictions. “We applaud this lengthy and appropriate sentence imposed by Judge Aiken. This defendant’s criminal history is replete with violent, repetitive, and highly dangerous criminal conduct that has impacted numerous victims and law enforcement agencies for many years,” said Acting U.S. Attorney Billy J. Williams. “He is more than deserving of the sentence of 50 years. This sentence will ensure that a dangerous criminal, clearly beyond reform, will spend the rest of his life in prison. Our thanks to the many law enforcement partners who have assisted an outstanding prosecution team in working to see that justice was done.”
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, and Firearms, the United States Bureau of Prisons, the Oregon State Police, Coos, Curry, Lane and Douglas County Sheriffs, with assistance from the Eugene, North Bend, Coos Bay, and Springfield Police Departments, and the Coos County District Attorney. The case was prosecuted by Assistant U.S. Attorney Frank R Papagni, Jr.
Mother Sentenced to 25 Years in Prison for Sexually Abusing her Young ChildRead the Press Release
PORTLAND, Ore. – U.S. District Judge Michael H. Simon sentenced Carolyn M. Knudsen, 29, of Camas, Washington, to 300 months in prison, for transporting her young child across state lines from Camas, Washington to Gresham, Oregon, for purposes of sexually abusing the child. Following her release from prison, Knudsen will be required to serve ten years on supervision and register as a sex offender.
Knudsen, and co-defendant James Hickerson, 36, of Gresham, Oregon, were jointly charged with aggravated sex abuse (sex abuse of a minor under the age of 12), transportation of a minor across state lines for unlawful sexual purposes, and production of child pornography. According to court documents, the two sexually abused Knudsen’s toddler child for months, possibly up to two years, in Gresham and on at least one occasion in Washington. The government presented two videos of the abuse at sentencing to refute Knudsen’s claims that she did not sexually abuse her child, that she was forced to engage in the conduct, and that she did not know Hickerson was videotaping the abuse.
Knudsen pled guilty in May as part of a plea agreement calling for the 25-year sentence. Although Knudsen stood by her plea at the sentencing hearing, she denied many of the government’s allegations at her change of plea, and according to the government’s argument at sentencing, in a letter she provided the court immediately before sentencing. Knudsen told the court that it only knew part of the facts and insisted she “did not hurt” her child. However, after viewing the videos in chambers, Judge Simon replied, “It may be true that I’m only getting a portion of what happened, but from the portion that I have seen and that I have read, it does appear to me that you have failed to fulfill the fundamental responsibility of a parent, which is to protect one’s child.” The Court then followed the parties’ joint recommendation and sentenced Knudsen to 25 years in prison for her conduct, finding it an appropriate sentence considering the serious nature of the offense, the defendant’s history and characteristics, the need to promote respect for the law, and to punish and deter future illegal conduct.
Knudsen was facing a mandatory 30-year sentence on the aggravated sex abuse charge, and potentially a higher sentence, if she went to trial or was prosecuted by either state. The Multnomah County District Attorney’s Office and the Clark County, Washington Prosecutors Office agreed not to prosecute Knudsen further as long as she received a sentence of at least 25 years in the federal case. James Hickerson has also entered a guilty plea in this case and in a separate child pornography case. Hickerson is scheduled for sentencing before Judge Simon on November 9, 2015.
Acting U. S. Attorney Billy J. Williams praised the sentence and said, “Child sex abuse is always disturbing, but is particularly reprehensible when it involves a parent. It is simply despicable, and was aggravated in so many respects in this case, between the age of the child, the length of abuse, and the fact that the defendants recorded videos and photographed it. Thanks to the good work of law enforcement and the quick coordination with child welfare, this child was promptly rescued, and the child’s mother will remain behind bars until after the child is an adult.”
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.
This investigation involved the cooperation and participation of the Multnomah County Sheriff’s Office, the Interagency Child Exploitation Proactive Task Force (INTERCEPT), the Vancouver Interagency Crimes Against Children (ICAC) Task Force, the Camas Police Department, Child Protective Services in Vancouver, Washington, the U.S. Department of Homeland Security/Homeland Security Investigations, the Multnomah County District Attorney’s Office, the Clark County, Washington Prosecutor’s Office, and the U. S, Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Jane Shoemaker.
Eugene Man Sentenced to Federal Prison for Conspiracy to Distribute Heroin and MethamphetamineRead the Press Release
EUGENE, Ore. – Mitchell Levi Ellingson, 52, of Lane County, Oregon, was sentenced on Tuesday, September 1, 2015, by U.S. District Judge Michael McShane to 60 months in prison for conspiracy to distribute heroin and methamphetamine. Following his release from prison, Ellingson will be on supervised release for five years.
Following a drug overdose death in 2014, the Lane County Interagency Narcotics Team (INET) and the FBI investigated the source of supply of the drugs taken by the deceased, and determined that co-conspirator Megan Suzanne Jacob sold, and injected, the heroin that contributed to the overdose death. After a medical examination, the cause of death was determined to be a mixed drug overdose of heroin and methamphetamine. Because the deceased had used a significant amount of methamphetamine earlier in the day that was obtained from another source, the death could not solely be attributed to Jacob and her distribution of heroin.
In July 2014, law enforcement made a series of controlled purchases of heroin and methamphetamine from Jacob, and it was determined that Mitchell Ellingson was Jacob’s source of supply for these transactions. Both Jacob and Ellingson were arrested on July 30, 2014. Jacob pled guilty to conspiracy to distribute heroin and methamphetamine and was sentenced to 60 months in prison on June 17, 2015.
Acting U.S. Attorney Billy J. Williams said that, “Heroin is a deadly drug that causes far too many tragic and needless deaths. The U.S. Attorney’s Office is committed to working with our federal and local law enforcement partners to fight this epidemic, and to hold heroin traffickers accountable.”
Ellingson has prior felony convictions which include first degree burglary, possession of a controlled substance and assault on a public safety officer.
The investigation of this case was conducted by the Lane County Interagency Narcotics Team and the Eugene Resident Agency office of the FBI. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Washington County Drug Dealer Sentenced to 12 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. –Eric Allen Forsyth, 37, of Tigard, Oregon, was sentenced by U.S. District Judge Michael H. Simon on Thursday, August 27, 2015, to 12 years in federal prison following his federal conviction for possession with the intent to distribute methamphetamine. When the defendant is released from prison, he will serve five years of supervised release.
In February 2014, Beaverton Police Officers received information that the defendant was selling methamphetamine. As part of the investigation, on April 14, 2014, deputies with the Westside Interagency Narcotics (WIN) Team conducted a traffic stop on a car in which the defendant was a passenger and arrested him on an outstanding warrant. When the defendant was searched, officers found him carrying $8,801 in cash and 55.5 grams of methamphetamine. A search warrant was later executed on the defendant’s residence and officers seized approximately 549 grams of methamphetamine packaged in 14 individual bags. According to police reports, following his arrest, the defendant admitted that he sold approximately one to two pounds of methamphetamine every day “for the money.”
In imposing the sentence Judge Simon noted that this was a “very serious offense” and that, based upon his prior criminal history, the defendant qualified as a Career Offender under the Federal Sentencing Guidelines. The defendant has three state court convictions for the Unlawful Delivery of a Controlled Substance.
"Methamphetamine has been identified as the region’s most serious drug threat,” stated Acting U.S. Attorney Billy Williams. “I applaud the work done by our local law enforcement partners on this case and we will continue to work with them to hold these drug dealers accountable for their actions.”
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).
This case was investigated by the Westside Interagency Narcotics (WIN) Team and the Beaverton Police Department. The case was prosecuted by Assistant U. S. Attorney Scott Kerin.
Portland Married Couple Pleads Guilty to One Million Dollar Tax Fraud SchemeRead the Press Release
PORTLAND, Ore. - A Portland, Oregon married couple pleaded guilty before U.S. District Judge Robert E. Jones in the District of Oregon today for conspiring to file fraudulent federal income tax returns that claimed refunds of more than $1 million.
According to the plea agreement, spouses Shawntina Ware and Brandon Leath admitted to conspiring with each other and other individuals to prepare and file more than 227 fraudulent income tax returns for calendar year 2009 during the 2010 tax filing season. The false information on the tax returns included fictitious W-2 wage and withholding information and fraudulent refundable tax credits.
According to court documents, Leath has agreed to a sentencing recommendation of 24 months in prison for his crimes. Ware faces a statutory maximum sentence of 10 years in prison for the theft of government funds count, and a statutory maximum sentence of 5 years in prison for both the conspiracy count and the false claims count.
Ware and Leath agreed to pay restitution to the Internal Revenue Service with a combined total of more than $150,000, and will each be sentenced on November 3, 2015.
The special agents of Portland, Oregon IRS-Criminal Investigation investigated the case. Trial Attorneys Lori A. Hendrickson and Ryan R. Raybould of the Tax Division are prosecuting the case, with valuable assistance from the U.S. Attorney’s Office in Portland, Oregon.
Drug Dealer Sentenced to 120 Months in PrisonRead the Press Release
PORTLAND, Ore. – Tyson Gregory Fortner, 36, of Portland, Oregon, was sentenced by U.S. District Judge Marco A. Hernandez to 120 months in prison following his federal conviction for possession with the intent to distribute methamphetamine. When the defendant is released from prison, he will serve five years of supervised release.
On June 26, 2013, investigators from the Clackamas County Interagency Task Force received information from a confidential informant (CI) that the defendant was a methamphetamine dealer operating in the Portland, Oregon area. Surveillance teams set up on the defendant’s residence in Portland, Oregon and, after he was observed driving away from the residence, they conducted a traffic stop on his car. The defendant was found to be driving without a license. A subsequent search of the defendant’s car found 89 grams of methamphetamine, 38 grams of heroin, a digital scale, and $8,100 in cash. When the officers searched the defendant they found a drug record ledger and $655 in cash. A subsequent search of the defendant’s residence resulted in the discovery of an additional 572 grams of methamphetamine, 123 grams of heroin, 4 grams of psilocybin mushrooms, 14 grams of cocaine, drug packaging material, a digital scale, a .45 caliber Smith and Wesson handgun, a .45 caliber Colt handgun, brass knuckles, and $49,850 in cash. The officers’ investigation revealed that the defendant possessed the drugs with the intent to distribute them and that over the previous eight months he had conservatively distributed at least 84 kilograms of methamphetamine and 567 grams of heroin. The defendant was arrested and indicted on federal charges on July 9, 2013.
“Methamphetamine has been identified as the region’s most serious drug threat, and heroin is a close second,” stated Acting U.S. Attorney Billy Williams. “Our office will continue to work with law enforcement to prosecute these significant drug dealers who are spreading destruction throughout the community for their own personal profit.”
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).
The HIDTA report also noted that “heroin availability and its use has reached a critical level and represents a close second to methamphetamine as the region’s most serious drug threat” and that “[n]early a quarter (24%) of law enforcement officers surveyed in Oregon and Idaho in 2015 indicated that heroin was the principal threat to their area due to the substantial rise in availability and the increase in the number of new and younger users and associated overdoses.” Id. at 20.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation involving the Clackamas County Interagency Task Force, the Drug Enforcement Administration, Department of Homeland Security Investigations, the Portland Police Bureau and the U.S. Attorney’s Office. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations and those primarily responsible for the nation’s illegal drug supply. The case was prosecuted by Assistant U. S. Attorney Scott Kerin.
Serial Bank Robber Pleads GuiltyRead the Press Release
MEDFORD, Ore. - On Monday, June 29, 2015, Bradley William Monical pled guilty to bank robbery and weapons charges related to a string of armed bank robberies he committed in 2010. Monical pled guilty to three armed bank robberies that occurred in Medford, Klamath Falls and Redmond, Oregon. He also pled guilty to using a firearm in connection with a violent crime based on his use of a handgun in the Medford and Klamath Falls robberies. Monical also pled guilty to three armed bank robberies that occurred in Washington and an additional bank robbery that occurred in Idaho.
Monical was in custody on pending bank robbery charges when he escaped from the Jackson County Jail on November 19, 2012. Monical was later found in Oregon City and was arrested by the United States Marshals. At the time of his arrest, he was found with his girlfriend, Carolyn Gibson. Gibson pled guilty to concealing a person from arrest for providing money and a vehicle for Monical after his escape. Gibson was sentenced to probation on February 2, 2015.
Monical is scheduled to be sentenced on September 23, 2015, before the Honorable Michael McShane.
This case was investigated by the Medford Police Department, the Jackson County Sheriff’s Office, the FBI, and the United States Marshals Service, and was prosecuted by Assistant U.S. Attorney Judith R. Harper.
Oregon Resident Charged with Planting a Fake Bomb on AirplaneRead the Press Release
PORTLAND, Ore, – Sean Michael Davies, 22, a U.S. Citizen residing in Warrenton, Oregon, was arrested this morning after he surrendered to agents of the FBI in connection with charges involving the planting of a fake bomb on a Dutch airliner. Davies is charged in a two-count indictment with making a false report of a destructive device which could damage or destroy an aircraft, and conveying false information about a destructive device which could damage or destroy an aircraft. Both charges carry a maximum penalty of five years in prison and a $250,000 fine.
According to the indictment, on October 20, 2014, Davies was travelling on Flight 569 operated by KLM Royal Dutch Airlines between Amsterdam, Netherlands, and Kilimanjaro and Dar Es Salaam, Tanzania. Davies allegedly constructed what appeared to be a possible bomb or destructive device, hid it in the restroom of the aircraft, and then falsely reported to the flight crew that he had discovered the device, causing KLM Flight 569 to be diverted to Cairo, Egypt.
Davies appeared today before United States Magistrate John Acosta who set the trial on the charges for September 1, 2015, before United States District Judge Michael W. Mosman. Davies is charged in the District of Oregon, as he is a U.S. citizen and a resident of Oregon.
This case was investigated by the FBI with the assistance of authorities in the Netherlands. The prosecution is being handled by Assistant U.S. Attorney Charles F. Gorder, Jr. from the U.S. Attorney’s Office in the Portland, Oregon.
An indictment is only an allegation and not evidence of guilt. Davies is presumed innocent unless and until proven guilty in court.
Drug Dealer Sentenced to 87 Months in PrisonRead the Press Release
PORTLAND, Ore. – Ivan Zarate-Alvarado, 27, originally from Michoacán, Mexico, was sentenced by U.S. District Judge Michael H. Simon to 87 months in prison following his federal conviction for possession with the intent to distribute methamphetamine. When the defendant is released from prison, he will serve three years of supervised release.
On June 27, 2013, investigators from the Clackamas County Interagency Task Force utilized a confidential informant (CI) to conduct a controlled buy of approximately two kilograms of methamphetamine from the defendant, who the CI knew was a methamphetamine dealer. When the defendant showed up to do the deal, he was arrested. Inside the defendant’s vehicle officers located approximately 1,917 grams of pure methamphetamine.
“Methamphetamine has been identified as the region’s most serious drug threat,” stated Acting U.S. Attorney Billy Williams. “Our office will continue to work with law enforcement to prosecute those significant dealers who profit by selling these poisons within 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).
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation involving the Clackamas County Interagency Task Force, the Drug Enforcement Administration, Department of Homeland Security Investigations, the Portland Police Bureau and the U.S. Attorney’s Office. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations and those primarily responsible for the nation’s illegal drug supply. The case was prosecuted by Assistant U. S. Attorney Scott Kerin.
Former CEO and CFO of the Bank of Oswego Indicted for Conspiracy to Commit Bank FraudRead the Press Release
PORTLAND, Ore. – A federal grand jury returned an indictment charging Diana Yates of Sherwood, Oregon and Dan Heine, of Naples, Florida, with one count of conspiring to defraud The Bank of Oswego. The grand jury also charged Heine and Yates with 26 counts of false entries in bank records. Both were arrested on Friday and Yates made her appearance in Portland, Oregon before the Honorable John Acosta. Heine was arraigned in the Middle District of Florida and will make an appearance in the District of Oregon on a later date next month.
Heine is the former Chief Executive Officer of the Bank of Oswego and Yates is its former Chief Financial Officer. The indictment alleges that between September 2009 and through 2014, Heine and Yates conspired to defraud the Bank of Oswego. The purpose of the conspiracy was to deceive the Bank’s Board of Directors, its shareholders, regulators and the public by representing that the Bank was in a much better financial position than it actually was. The defendants achieved this by using Bank or third-party proceeds to pay delinquent loans of customers, mischaracterizing assets in reports to the Board of Directors of the Bank and the Federal Deposit Insurance Corporation (FDIC), and concealing information about loans to bank insiders. The indictment further alleges that Heine and Yates made false entries in the Bank’s reports to the FDIC and to the Bank’s Board of Directors about the status of various loans and transactions.
“Our community and economy depend on the integrity of our financial institutions and the officers charged with ensuring their safety and soundness,” stated Acting U.S. Attorney Billy J. Williams. “Officers who make material misrepresentations about these institutions’ financial well-being will be prosecuted in this District. We are grateful to our law enforcement partners at the FDIC Office of Inspector General and the Federal Bureau of Investigation for their work on this case.”
"The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join the United States Attorney’s Office for the District of Oregon and with the Federal Bureau of Investigation (FBI) in defending the integrity of the financial services industry,” said Wade Walters, Special Agent in Charge for the FDIC’s, Office of Inspector General. “We are particularly concerned when senior bank officials, who are in positions of trust within their institutions, are alleged to have falsified financial records to deceive the regulators and the public as to the true condition of their banks. We are committed to helping maintain the safety and soundness of the Nation’s financial institutions.”
“Americans have a right to expect that their financial institutions - and the people who run them - are working to keep their money safe and secure,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “When that trust is broken, the impacts on the community, the shareholders and the customers are very real. As alleged in this indictment, the damage estimates can soar into the millions of dollars.”
Each charge carries a maximum sentence of thirty (30) years in prison. If convicted, the defendants face a maximum of thirty years in prison for each count.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.
The Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of the Inspector General conducted the investigation. Assistant U.S. Attorneys Claire Fay and Michelle Holman Kerin are prosecuting the case.
Bandon Man Sentenced for Disability FraudRead the Press Release
EUGENE, Ore - Calling the defendant’s conduct “huge criminal thinking,” a Bandon man was sentenced on Wednesday to eight months’ confinement at the Residential Reentry Center in Medford and ordered to pay more than $169,000 in restitution for disability and medical benefits he fraudulently received. Daniel Stadelman, 55, pleaded guilty in October to theft of government funds based on his concealment of work activity from the Social Security Administration (SSA) for more than ten years.
According to Stadelman’s admissions and court records, Stadelman applied for disability benefits in 2001, claiming he was unable to work due to an illness that left him severely fatigued. SSA initially denied his application, but Stadelman appealed and eventually an Administrative Law Judge (ALJ) approved his claim in 2004. Despite the ALJ’s admonition to Stadelman that he be aware of the reporting requirements if he returned to work, Stadelman failed to advise SSA that he was working for himself and for his family’s business, Bandon Supply, where investigators – prompted by an anonymous complaint - observed him working lengthy hours, lifting heavy objects, and operating large machinery. When SSA asked Stadelman if he had returned to work, Stadelman repeatedly denied work of any kind. After federal investigators served a search warrant on Bandon Supply and defendant’s residence in June 2014, Stadelman retained counsel and contacted the government to negotiate a plea resolution.
During the sentencing hearing, U.S. Chief District Court Judge Ann Aiken called Stadelman’s crime a “significant violation of public trust” telling Stadelman that people should know that “just doing the right thing is what is expected,” and that although he may have initially been eligible for the benefits, he “should have been proud to say ‘I don’t need them anymore’” when he returned to work. She also ordered him to perform 225 hours of community service. Stadelman has already remitted more than $150,000 to the government for his court-ordered restitution obligation.
Stadelman’s case was investigated by the Social Security Administration Office of Investigations in Salem and was prosecuted by Special Assistant U.S. 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.
Man Sentenced to Federal Prison for Setting Fire to Landmark Portland RestaurantRead the Press Release
PORTLAND, Ore. – Marcus Allen Tyler, 31, of Portland, was sentenced today to 71 months in federal prison by U.S. District Judge Michael W. Mosman. In November 2014, Tyler pled guilty to the felony offense of arson. Tyler is currently in the custody of the U.S. Marshals Service.
After Tyler has completed his 71 months in prison, he must serve three years of federal supervised release. While on supervised release, Tyler will be required to pay restitution for the damage caused by the fire.
According to statements made in federal court, Tyler was the kitchen manager at Pal’s Shanty Tavern, located at 4630 NE Sandy Boulevard, in Portland, Oregon. Tyler had worked for Pal’s Shanty Tavern for five years, but he became upset with his employers because he believed that the waiters were not sharing enough of their tips with him.
In the early morning hours of November 15, 2013, Tyler used his key to enter Pal’s Shanty Tavern after it had closed for the night. Tyler spread gasoline in the kitchen to start a fire in the restaurant. Tyler intended for his arson to conceal a separate crime that night, which was a plan to steal an ATM that was located inside of Pal’s Shanty Tavern. After Tyler ignited the gasoline with a lighter, he slipped and fell on the gasoline that he had poured, and he was severely burned. Firefighters were called to respond to the fire, and it took 53 Portland firefighters to finally extinguish the fire, which destroyed Pal’s Shanty Tavern.
Tyler, who had fled the scene before firefighters arrived, was eventually transported to the hospital. A police investigation almost immediately revealed Tyler’s involvement in the arson.
“This sentence holds the defendant responsible for the crime of arson and recognizes the impact on the community. The defendant’s criminal actions were a betrayal to the long time owners and the neighborhood, Pal’s Shanty has been a Portland landmark and meeting establishment since 1966,” said Acting U.S. Attorney Billy J. Williams. “My office commends the Portland Fire & Rescue Bureau for their investigation of this case.”
Pal’s Shanty Tavern was a family-owned business that had been operating in Northeast Portland’s Hollywood District since the 1960s. It has not reopened since the arson.
"This fire put a well-known Portland establishment, Pal's Shanty, out of business. The successful prosecution of arson brings some closure to the owners, employees, and all the people who loved this local establishment,” said, Erin Janssens, Chief of Portland Fire & Rescue Bureau.
This case was investigated by the Portland Fire & Rescue Bureau and the Portland Police Bureau. The case was prosecuted by Assistant U. S. Attorneys Pamala R. Holsinger and Craig J. Gabriel.
Lincoln County Career Offender Sentenced to 8 Years in PrisonRead the Press Release
EUGENE, Ore. – Patrick Ball, 38, of Toledo, Oregon, was sentenced today by Chief U.S. District Judge Ann Aiken to 96 months in prison, to be followed by a three-year term of supervised release. The federal charges were brought after the Lincoln County Police and Toledo Police Department identified Ball as a methamphetamine trafficker and began an investigation. After a traffic stop, he was found with 107 grams of actual methamphetamine and arrested.
According to the prosecutor, Ball was a career offender because he had prior drug delivery convictions. He also had several convictions for property crimes including Burglary I, Burglary II, and Theft I. He was on supervision at the time he was found with the drugs, yet he was pedaling drugs in the local community. “The impact of methamphetamine on our local communities cannot be underscored and this case makes it clear that we will continue to aggressively seek out these types of cases for prosecution,” said Acting U.S. Attorney Billy J. Williams.
This case was investigated by the Lincoln County Police Department, the Toledo Police Department, the Newport Police Department and the DEA. This case was prosecuted by Assistant U.S. Attorney Amy Potter.
Former Eugene Gang Member Sentenced to 10 Years in Federal PrisonRead the Press Release
EUGENE, Ore. – Cory Charles Weise, 33, Eugene, Oregon, was sentenced on Wednesday, June 24, 2015, by U.S. District Judge Michael McShane to 120 months in prison for possession with intent to distribute methamphetamine and felon in possession of a firearm. Following his release from prison, Weise will be on supervised release for three years.
Weise was a well-known member of the West Side Gangsters in Lane County, Oregon, and his activities were investigated by the Eugene Police Department (EPD) and the FBI. On November 13, 2013, EPD detectives executed a search warrant at his Eugene residence and in a safe located two firearms and ten grams of a mixture or substance containing methamphetamine. As a convicted felon, Weise was prohibited from possessing firearms. Scales and packaging material were found in his bedroom, and $1,170 cash was found on his person.
The investigation of this case was conducted by the Eugene Police Department Special Investigations Unit and the Eugene Resident Agency office of the FBI. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Oregon Resident Sentenced to 87 Months in Prison in Connection with 2009 Suicide Bombing of ISI Headquarters in Lahore, PakistanRead the Press Release
PORTLAND, Ore, – Reaz Qadir Khan, 51, a naturalized U.S. Citizen residing in Portland, Oregon, was sentenced today to 87 months in prison by U.S. District Judge Michael Mosman in connection with the May 27, 2009 suicide bomb attack at Pakistan’s intelligence service headquarters in Lahore, Pakistan. The attack killed approximately 30 people and injured some 300 more.
Khan had previously entered a plea to the crime of accessory after the fact to the crime of providing material support to terrorists. In entering his plea, Khan admitted arranging for the delivery of approximately $2,450 to Maldivian Ali Jaleel, one of the suicide bombers responsible for the May 27, 2009 attack. Khan also admitted to providing advice and financial assistance to Jaleel’s wives after the bombing, while knowing that providing such assistance would hinder and prevent the apprehension of Jaleel’s wives and others who may have helped Jaleel.
The 87 month sentence was jointly recommended by the parties and concludes a lengthy investigation of Khan’s connection to the attack. “With today’s sentence, the Court held the defendant accountable and made it clear that no community should be subjected to the dangers posed by those seeking to assist violent extremists whether here or abroad,” said Acting U.S. Attorney Billy J. Williams. “Today’s result would not have been possible without the hard work of the dedicated professionals in the law enforcement and intelligence communities. I look forward to our continued work with Muslim communities in Oregon who are committed to ensuring that all people are safe from the threat of violent extremism, and to counter the global recruitment efforts of ISIS and other terrorists organizations to travel abroad to join them or commit acts of terrorism in this country."
“The threads of violent extremism are weaving a path through many American cities. As in the Khan case, sometimes that path leads to those who are willing to fund activities overseas. In other instances, the path leads to homegrown extremists who are willing to commit heinous acts or to those who inspire them to do so,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “As the threat becomes more insidious and difficult to track, we rely on our shared community to come forward to help us identify and isolate those who would do harm to our nation. I would ask anyone with information about potential threats to call their local FBI office.”
This case was investigated by the FBI’s Joint Terrorism Task Force. The prosecution was handled by Assistant U.S. Attorneys Ethan D. Knight and Charles F. Gorder, Jr. from the U.S. Attorney’s Office in the District of Oregon. Trial Attorney David P. Cora from the Counterterrorism Section of the Depart of Justice’s National Security Division assisted.
Eugene Felon Sentenced to 10 Years in Federal Prison for Possessing FirearmsRead the Press Release
EUGENE, Ore. – On June 16, 2015, Billy Jess Barnard, 30, of Eugene, Oregon, was sentenced by U.S. District Judge Michael McShane to ten years in federal prison for unlawful possession of firearms. Upon his release from prison, Barnard will be on supervised release for three years.
On December 10, 2013, Eugene Police Department officers arrested Barnard in a stolen vehicle and found him with two handguns. A search of his phones revealed photos of Barnard holding multiple firearms, including an AK-47 type pistol and a shotgun. Barnard has prior felony convictions for, among other things, fleeing or attempting to elude police and burglary in the second degree.
In addition to his federal case, the Lane County District Attorney’s Office is prosecuting Barnard in two separate criminal cases arising from other events in 2013.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eugene Police Department, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik, with the assistance of Lane County Deputy District Attorneys Paul Graebner and Katherine Green.
Eugene Woman Sentenced to Federal Prison for Delivery of Heroin Which Contributed to Overdose DeathRead the Press Release
EUGENE, Ore. – Megan Suzanne Jacob, 25, of Lane County, Oregon, was sentenced on Wednesday, June 17, 2015, by U.S. District Judge Michael McShane to 60 months in prison for conspiracy to distribute methamphetamine and heroin. Following her release from prison, Jacob will be on supervised release for five years.
Following a drug overdose death, the Lane County Interagency Narcotics Team and the FBI investigated the source of supply of the drugs taken by the deceased and determined that Jacob had sold, and injected, the heroin that contributed to the death. In July 2014, law enforcement made a series of undercover drug buys of methamphetamine and heroin from Jacob for which she was ultimately arrested and pled guilty
Law enforcement determined that on the day of the overdose, Jacob had been introduced to the victim, a first-time heroin user, through a mutual friend. The two later met at a hotel where she sold the deceased heroin, and administered an injection. Later that same night, the deceased asked for more heroin. Jacob gave another injection to the deceased, who began to overdose. Jacob left the hotel, apparently while the deceased was still alive, and did not call 9-1-1. The deceased was later discovered in the hotel room. After a medical examination, the cause of death was determined to be a mixed drug overdose of heroin and methamphetamine. Because the deceased had used a significant amount of methamphetamine earlier in the day that was obtained from another source, the death could not solely be attributed to Jacob and her distribution of heroin.
Acting U.S. Attorney Billy J. Williams said that, “Heroin is a deadly drug that causes far too many tragic and needless deaths. The U.S. Attorney’s Office is committed to working with our federal and local law enforcement partners to fight this epidemic, and to hold heroin traffickers accountable.”
Jacob has prior felony convictions for possession of heroin and methamphetamine and failure to appear.
The investigation of this case was conducted by the Lane County Interagency Narcotics Team and the Eugene Resident Agency office of the FBI. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Former Carson Helicopter Vice President Sentenced to Federal PrisonRead the Press Release
MEDFORD, Ore. - Steven Metheny, 45, Medford, Oregon was sentenced Tuesday to 12.5 years in federal prison by U.S. Chief District Court Judge Ann Aiken after his convictions for conspiracy to commit mail and wire fraud and the making of false statements in defrauding the United States Forest Service in procuring helicopter firefighting contracts in 2008.
Levi Phillips, 48, Grants Pass, Oregon, was also sentenced today for his role in the conspiracy. Phillips pled guilty on September 23, 2013, to the crime of conspiracy to commit mail and wire fraud. Judge Aiken sentenced him to serve 25 months in federal prison. Both defendants were ordered to surrender to Bureau of Prisons on August 17, 2015, and upon release from prison, both will serve a three year term of supervised release.
In 2008, Metheny, as Vice President of Carson Helicopters in Grants Pass, Oregon, and aided by co-conspirator Phillips, the Director of Maintenance for Carson, submitted contract bid proposals on behalf of Carson to the Forest Service with falsified helicopter weight and balance charts and falsely altered Federal Aviation Administration (FAA) helicopter performance charts. These charts were then used by the Forest Service in determining whether Carson’s helicopters met minimum contract payload specifications and, as a result, awarded contracts to Carson that it would not have received otherwise. The contract awards amounted to over $51 million dollars. Carson received nearly $19 million dollars before the Forest Service discovered the fraud and cancelled Carson’s contracts following the crash of Carson helicopter N612AZ in California.
According to documents filed with the court, Assistant U.S. Attorney Byron Chatfield said Metheny schemed with Phillips to create a formula that allowed them to enter a desired weight and center of gravity to generate the necessary scale readings needed to deceive the Forest Service into believing that two of Carson’s helicopters had actually been weighed as required by the contract. Metheny then used the formula to create false weights for other helicopters including the crash helicopter. Metheny also created a falsified FAA helicopter performance chart used in conjunction with the false helicopter weights in order to meet the minimum contract payload specifications for much more lucrative contracts. The Forest Service had previously warned Metheny about not using the actual performance chart it was created from, prohibiting its use for bidding purposes or field operations because it was intended for emergency operations only and its use compromised safety and gave Carson an unfair competitive advantage over other helicopter operators.
Metheny distributed the falsified helicopter weight and balance charts, as well as other falsified FAA helicopter performance charts to pilots and helicopter flight manuals for use in the field. Unaware of the false nature of the charts, they were then used by pilots and the Forest Service personnel in conducting wildfire flight operations. Their use included calculating the helicopter’s maximum payload capacity during firefighting operations thereby risking the life and safety of the pilots operating the helicopters and those aboard, including firefighters.
On August 5, 2008, N612AZ crashed during takeoff while conducting firefighting operations. The crash resulted in nine fatalities and four were severely injured. The pilots utilized these same falsified charts in the flight manual in determining the payload calculations for the fatal flight. The surviving and permanently injured co-pilot of N612AZ said that pilots trust the integrity of the charts with their life; if the weight of the helicopter is wrong, the final payload will be wrong. If he had known, he would never have used those charts. Other pilots also stressed the importance of using accurate charts as an integral part to the safe operation of a helicopter, especially when carrying passengers. If the Forest Service manager at the crash site had known the truth about the falsified weight documents, the operation would have been immediately shut down and the firefighters would not have been allowed on board the helicopter. National Transportation Safety Board (NTSB) investigators would later discover the accurate weight documents for the crash helicopter and learn that it weighed over 1400 lbs. more than the falsified weight documents used by the pilots. Within days of the crash, Metheny replaced the crash helicopter with another helicopter for the contract by using falsified FAA power performance charts and weight documents for that aircraft.
Court documents further disclose that following the crash of N612AZ, Metheny and Phillips then attempted to conceal the fraud by devising schemes to prevent the Forest Service from discovering the actual weight of each aircraft under contract. Their schemes included having Carson pilots and crew improperly remove equipment and helicopter components without recording their removal. However, some refused and one crew chief explained that he was done lying about the helicopter’s weight. The Forest Service eventually discovered that all of the aircraft were over their bid weight, the weight documents submitted in the contract proposals were fraudulent with underreported weights and the helicopters were using falsified performance charts. All of the contracts were terminated.
Government documents show that Metheny also concealed the fraudulent conduct involving N612AZ from the NTSB during its crash investigation. He and Phillips were Carson representatives on the NTSB investigation. Yet, Metheny knew NTSB investigators were relying on the falsified weight documents used by the crash helicopter and he attempted to convince them of their accuracy. Later, when NTSB discovered that the performance chart used by N612AZ was falsified, the product of a “cut and paste” created at Carson’s Grants Pass office, Metheny attempted to throw suspicion onto a former employee, someone he held animosity toward.
Court documents further reveal that Metheny was continuously stealing from Carson. He used Carson funds to buy jewelry and other personal items for himself and his wife, to renovate their residence and he sold Carson helicopter parts and equipment and diverted the proceeds to his own private aviation company for his personal use. He also stole tail rotor blades from a shipment at Carson’s Grants Pass facility then attempted again to place suspicion on the same person he had animosity toward. Metheny repaid Carson over $73,900 as restitution for the theft of helicopter parts from the company.
In recommending a sentence of 15.5 years, Assistant U.S. Attorney Chatfield argued Metheny was the architect behind the scheme to defraud the Forest Service and gain a significant advantage over his competitors. His fraudulent conduct was the result of pure greed that eventually placed the lives of numerous pilots and firefighters in extreme danger. Metheny demonstrated such an indifference to the danger in which he placed others just to perpetuate the fraud. As a licensed helicopter pilot, he knew the falsified charts put firefighters and pilots at risk of serious injury, even death.
Chatfield said that helicopter firefighting operations certainly have a high level of risk where failure can have catastrophic consequences, such as with the crash of N612AZ. Yet, what is totally unacceptable is the substantial risk Metheny created by his fraudulent conduct, unnecessarily putting the lives of so many pilots and firefighters in harm’s way. Metheny’s conduct has had such an adverse and lasting impact on so many people, both financially and emotionally. To know that those firefighters who lost their lives would not have been even allowed on the crash helicopter if the Forest Service manager or the pilots had known about the falsified weight is absolutely devastating to their families. “This is an incredibly disturbing case that has exposed the senseless greed behind this despicable criminal conduct. There is a price to pay for submitting false information about helicopter payload capabilities in the bid process. The intentional deceit defrauded the Forest Service and created a reckless risk of harm to those who used the information in firefighting operations, including those who were relying on the false information when a Carson helicopter crashed near Weaverville, California on August 5, 2008,” says Acting U.S. Attorney, Billy J. Williams. “The lives of heroic individuals serving in these operations were placed in harm’s way when greedy people enriched their pockets without consideration for their conduct.”
“This investigation demonstrates that ensuring the integrity of the acquisition process and that taxpayer dollars are protected from fraud and abuse, as well as the inherent associated safety risks, is a top priority for the Office of Inspector General (OIG),” said William Swallow, Department of Transportation OIG Special Agent-in-Charge. “Working with our law enforcement and prosecutorial colleagues, we will continue our efforts to promote the prevention, detection, and prosecution of contract fraud and ensuring the public’s safety.”
The U. S. Attorney’s Office has worked with the Offices of Inspector General for both the Department of Agriculture and the Department of Transportation in Portland, Oregon and Seattle, Washington, and the FBI and the IRS in Medford, Oregon in the investigation and prosecution of this case. The case was prosecuted by Assistant U. S. Attorney Byron Chatfield.
California Man Sentenced for Defrauding Portland Area Investors Out of Almost $1 MillionRead the Press Release
PORTLAND, Ore. – U.S. District Court Judge Michael W. Mosman sentenced Bryan Scott Gunn, 40, of Victorville, California, yesterday to 20 months in prison for coning investors out of almost $1 million. Judge Mosman also sentenced Gunn to serve three years of supervised release and ordered him to pay $939,308 in restitution.
According to court documents, Gunn was a fairly sophisticated conman. In fact, in this case, Gunn executed a con within a con. For the first scam, Gunn convinced his victims to invest more than $500,000 in an alleged heavy equipment leasing company, Republic Funding LLC, gaining the investors’ trust with charm and lies of a high rate-of-return. During the scheme, Gunn showed the investors documentation that falsely showed the alleged company was profitable. Gunn diverted the investors’ money for his personal use; among other things, he spent the money on a home, a condo, the construction of a luxury pool, travel, a Mercedes Benz, and his girlfriend. When the investors began to seek a return on their investment and began to challenge Gunn’s claims about the alleged business, Gunn started his second swindle – a clever and rather elaborate attempt to cover up his diversion of the investors’ money.
Gunn created two fictitious companies, a few fictitious employees, and a fictitious attorney, including corresponding email accounts, to conceal his fraud. Gunn told the investors that he had sold the equipment leasing business’ portfolio to one of his fictitious companies, CMC Funding. When the investors sought payment from the sale of the portfolio, Gunn explained that CMC Funding had filed for bankruptcy and that its assets, including the portfolio, were being purchased by Fidelity LLC, Gunn’s other fictitious entity. Gunn, using letters and emails, posed as employees of Fidelity and as an attorney, and falsely claimed that costs associated with the bankruptcy needed to be paid before the investors could receive any payment for the alleged purchase of the portfolio. The investors fell for Gunn’s second scheme and paid more than $411,000 in an attempt to recover some of their investment. Gunn continued to use their money to live lavishly.
At one point, in an attempt to appease the investors, Gunn created and gave two bogus checks to the investors as a payout. The checks, one for $314,113 and the other for $1,169,887, appeared to be issued from CMC Funding and to be drawn on an account at SEIU Federal Credit Union. After depositing the checks, the investors quickly learned that the checks were fraudulent and that the account at SEIU Federal Credit Union did not exist.
This case was investigated by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Scott E. Bradford.
Washington Man Sentenced to Six Years in Custody for Theft of 22 Handguns from Newberg Fred MeyerRead the Press Release
PORTLAND, Ore. – Mark Anthony Reyna, 26, from Skagit County, WA was sentenced today by U.S. District Judge Garr M. King to six years in federal prison, following his pleas of guilty to the theft of firearms from a federally-licensed firearms dealer and felon in possession of firearms.
On June 18, 2014, Reyna broke into a locked firearms display located at the Newberg Fred Meyer. The store was open to the public at the time of the theft. Reyna took 22 firearms with a value of over $12,000. Three days after the theft, Reyna was observed by a police officer in Mount Vernon, WA, operating a vehicle; the officer knew that Reyna had an unrelated arrest warrant on file and attempted to stop the vehicle. Following a brief police chase and struggle with the officers, Reyna was arrested. One of the stolen firearms from Fred Meyer, a .40 caliber loaded Ruger pistol, was located in Reyna’s vehicle. During a subsequent police investigation, six of the other stolen firearms were located and seized; 15 stolen firearms are currently unaccounted for.
Several charges are pending against Reyna in Skagit County, WA. He will be transported to that jurisdiction and will receive a sentence concurrent to the federal sentence. The pending charges include the related attempt to elude a pursuing police vehicle and unlawful possession of a stolen firearm. Reyna was prohibited from possessing firearms by virtue of his Skagit County 2014 conviction for disarming a law enforcement officer of his taser.
This case was prosecuted by the Newberg Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and by the Mount Vernon Police Department. It was prosecuted by AUSA Fred Weinhouse.
Oregon Felon Sentenced to 10 Years in Federal PrisonRead the Press Release
EUGENE, Ore. – Christopher Shawn Kanatzar, 28, Springfield, Oregon, appeared before U. S. District Court Chief Judge Ann Aiken in Eugene today and was sentenced to ten years in prison. Earlier this year, Kanatzar pled guilty to being a felon in possession of a 9 mm pistol found by Springfield police in a stolen car following a high speed chase. Kanatzar and two police officers sustained injuries when he resisted arrest after the pursuit ended.
In March 2013, Kanatzar also pled guilty in an Oregon court to robbery in the first degree with a firearm. Kanatzar admitted robbing a person of their methamphetamine at gunpoint. Kanatzar is pending sentencing for that crime.
Chief Judge Aiken sentenced Kanatzar to the maximum sentence of ten years because he possessed the pistol after having been previously convicted of unlawfully using and possessing firearms, first degree burglary and first degree theft. According to court documents and statements made in court, Kanatzar’s state sentences will be served concurrently while he is in federal prison.
Kanatzar’s guilty plea, admissions and 10-year prison sentence were part of a global plea agreement with the U. S. Attorney’s Office for the District of Oregon and the Lane County District Attorney’s Office.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms and the Springfield Police Department. The case was prosecuted by Assistant U.S. Attorney Frank R. Papagni, Jr., with the assistance of Lane County Deputy District Attorney Erik Hasselman.
Canadian Woman Sentenced for Identity TheftRead the Press Release
PORTLAND, Ore. - Carolyn Gallagher of Canada was sentenced today for the theft of at least 28 Forms I-9 from Urban Outfitters, where she once worked as a manager. Gallagher previously pleaded guilty to identity theft, admitting to stealing Forms I-9 from Urban Outfitters and selling them, knowing that false tax returns would be filed in the names of her victims. Gallagher appeared today before the Honorable Robert E. Jones and was sentenced to 12 months and a day in prison and ordered to forfeit $37,475—the total fraudulent refunds paid out by the Treasury based on the false tax returns in the names of her victims.
Gallagher’s co-conspirators, Jheraun Dunlap, Ernest Bagsby, Jermaine Moore, and Brandi McCall, who conspired in the preparation and filing of over 200 false tax returns, including 28 false tax returns in the names of Gallagher’s victims, were previously sentenced by the Honorable Robert E. Jones to 65 months, 51 months, 45 months, and 12 months and a day in prison.
This case was investigated by the IRS Criminal Investigation Stolen Identity Refund Fraud Task Force. Trial Attorneys Leslie A. Goemaat and Lori A. Hendrickson of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Methamphetamine Distribution Conspirators SentencedRead the Press Release
EUGENE, Ore. – Cesar Arnoldo Menjivar, 30, of Lane County, Oregon, was sentenced on Tuesday, June 2, 2015, by U.S. District Court Chief Judge Ann Aiken to a 96-month prison term for conspiracy to distribute methamphetamine. Following his release from prison, Menjivar will be on supervised release for four years. On June 3, 2015, co-conspirator William Friend, 19, was sentenced to 60 months in prison for conspiracy to distribute methamphetamine, and on January 20, 2015, co-conspirator Richard Wilson, 37, was sentenced to 60 months in prison for distribution of methamphetamine and felon in possession of a firearm.
A joint investigation by federal and local law enforcement revealed that Menjivar and his associates were distributing methamphetamine. Between December 17, 2013 and January 28, 2014, a confidential source negotiated five separate purchases of methamphetamine with Menjivar, and the drugs were delivered by William Friend, Richard Wilson and another individual.
On January 30, 2014, search warrants were executed at multiple locations. Approximately five ounces of methamphetamine, more than one ounce of heroin, packaging material, scales and a loaded pistol were located at William Friend’s residence, and a digital scale was located at Menjivar’s residence.
This case was investigated by the FBI, the DEA, the Lane County Interagency Narcotics Enforcement Team and the Eugene Police Department Special Investigations Unit. Assistant U. S. Attorneys Jeffrey Sweet and Nathan Lichvarcik prosecuted the case.
Troutdale Drug Dealer Sentenced to 96 Months' ImprisonmentRead the Press Release
PORTLAND, Ore. –Ulicis Acevedo-Yanez, 38, of Troutdale, Oregon, was sentenced by U.S. District Court Judge Michael W. Mosman to 96 months in prison following his federal conviction for possession with the intent to distribute methamphetamine. When the defendant is released from prison, he will serve four years of supervised release.
Between September 2012 and April 2013, agents with the Metro Gang Task Force (MGTF) identified the defendant as a methamphetamine and heroin dealer operating within the greater Portland, Oregon metropolitan area. On April 26, 2013, agents arrested the defendant and executed a series of federal search warrants on his residence on S.W. 12th Street, in Troutdale, Oregon, as well as a “drug stash” location he maintained on S.E. Harold Street, in Portland, Oregon. Agents also received consent to search another “drug stash” location the defendant was using on S.E. Hinkley Street, in Happy Valley, Oregon.
In total, the agents seized over one kilogram of methamphetamine, approximately 765 grams of heroin and 10 firearms. During a post-arrest interview the defendant admitted that when he was arrested he was on his way to deliver approximately eight ounces of methamphetamine to a customer. When asked for details of his drug dealing the defendant stated that he usually pays $30,000 for a “brick” (kilogram) of cocaine and most recently purchased one three weeks ago. The defendant said he sold the cocaine for between $33,000 and $35,000 a kilogram. The defendant also said that he is currently paying $7,000 for a pound of methamphetamine and he usually buys five pounds at a time. The defendant also admitted that he pays $27,500 for a kilogram of heroin and then resells it for $950 an ounce. The defendant admitted to dealing methamphetamine, cocaine and heroin for at least a year to supplement his income after he lost his job. The defendant pled guilty to the charge on January 21, 2015.
“Methamphetamine, heroin and cocaine trafficking are scourges within our community,” stated Acting U.S. Attorney Billy Williams. “Our office will continue to work with law enforcement to prosecute high-level drug dealers who profit by selling these poisons within our neighborhoods."
This case resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by the Metro Gang Task Force and the U.S. Attorney’s Office. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations and those primarily responsible for the nation’s illegal drug supply. The case was prosecuted by Assistant U. S. Attorney Scott Kerin.
Bribe-Taker Ellis McCoy, Former City of Portland Smart Parking Meter Manager, Sentenced to 24 Months in PrisonRead the Press Release
PORTLAND, Ore. – Ellis McCoy, former Manager of Portland’s Parking Operations Division, was sentenced today by U.S. District Court Judge Marco Hernandez to 24 months in prison after his conviction for taking almost $200,000 in bribes from two city contractors from 2002 to mid-2011.
In August 2012, a year after FBI and IRS agents executed search warrants at McCoy’s office and home, McCoy pleaded guilty to conspiring to accept bribes, accepting bribes, and filing false tax returns on which he did not report a substantial amount of the bribe income. McCoy admitted he gave favorable treatment to the city contractors in return for $164,567 in checks and currency plus the value of travel, meals, lodging, and other expenses of an undetermined amount.
During its investigation, the government proved McCoy created a phony consulting company and submitted invoices for fictitious consulting work so he and the contractors could disguise some of the bribe payments as payments for consulting work. The government also proved McCoy accepted about $70,000 of the bribe payments in cash and that the contractors paid for some or all of his meals, travel, and entertainment expenses on about 60 trips for business and pleasure.
“The citizens of Portland are entitled to an honest day’s work from every City employee and they did not get that from Ellis McCoy,” said Acting U.S. Attorney Billy J. Williams. “Instead, McCoy broke trust with Portland and its citizens and rigged the contracting for smart parking meters in favor of those who bribed him. The U.S. Attorney’s Office, the FBI, and the IRS will always make it a priority to aggressively investigate and prosecute those involved in public corruption of any kind.”
George Levey, former president of Cale Parking Systems USA, Inc. and one of the contractors who bribed McCoy, pleaded guilty on April 29, 2015, and is scheduled to be sentenced on August 11, 2015.
This case was investigated by the FBI and the Criminal Investigation Division of the Internal Revenue Service. The case is being handled by Assistant U. S. Attorney Seth D. Uram.
Strip Club Operators Charged with Conspiring to Promote Prostitution and to Defraud the IRSRead the Press Release
PORTLAND, Ore. – Today a federal grand jury returned a superseding indictment charging Lawrence George Owen, 73, of La Paz, Mexico, and Gary Bryant, 67, of Estacada, Oregon, with conspiring to defraud the IRS of more than $1.5 million in unpaid income and payroll taxes stemming from the operation of strip clubs and other adult-oriented businesses in the Portland metropolitan area between January 2006 and June 2010. The grand jury also charged Owen with conspiring to use facilities of interstate commerce to promote illegal acts of prostitution at the businesses throughout that period. The U.S. Attorney also filed a criminal Information charging Kandace Desmarais, 63, and Gilbert “Mace” Desmarais, 50, both of Milwaukie, Oregon, with participating in both conspiracies.
The superseding indictment and information allege that, by January 2006, Lawrence Owen and Gary Bryant, along with Kandace Desmarais and Gilbert Desmarais (two of Owen’s stepchildren) managed eleven adult-oriented businesses. The businesses, which accepted cash only, included eight strip clubs (the Landing Strip, Dillinger’s Pub, the Oh! Zone, Sugar Shack, Sugar Shack Too, Peek-a-Boos, Tommy’s, and Tommy’s Too), two stores offering pornographic videos and sex toys (Video Visions and Video Visions Plus), and a restaurant featuring Oregon Lottery games (Pelican Bay).
The strip clubs featured totally nude female dancers who paid the management “stage fees” of $15 for every shift they worked. In addition, most of the strip clubs either had enclosed rooms for “private shows” with the dancers or were adjacent to affiliated businesses with such rooms. Customers could arrange for 30-minute “private shows” with the dancers by paying $60 to the house and at least $100—often several times that amount—to the dancers. In fact, the “private shows” frequently involved illegal acts of prostitution paid for with cash from the conspirators’ ATMs.
The grand jury and U.S. Attorney alleged that the conspirators concealed more than five million dollars in receipts from the IRS—and fraudulently avoided $1.5 million in income taxes—between January 2006 and June 2010, largely by failing to report income from dancers’ “stage fees” and the payments for “private shows.” The businesses also failed to pay payroll taxes for numerous employees who were paid only in cash without any record of employment or wages.
The charges culminate an investigation by the Internal Revenue Service Criminal Investigation (IRS-CI) spanning more than five years. In June 2010, IRS-CI agents executed search warrants at all of the businesses and the homes of many of the conspirators. The agents seized more than $800,000 in cash and records of more than 35,000 “private shows” at the businesses over the course of the charged conspiracy.
Each charge carries a maximum sentence of five years in prison. If convicted, defendants Lawrence Owen, Kandace Desmarais, and Gilbert Desmarais face a maximum of ten years in prison, and Gary Bryant faces a maximum of five years in prison.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.
The Portland Police Bureau assisted IRS-CI with this investigation. Assistant U. S. Attorneys Seth D. Uram and Ryan W. Bounds are prosecuting the case.
Methamphetamine Distribution Conspirators SentencedRead the Press Release
EUGENE, Ore. – Raymundo Felix-Rodriguez, 42, of Lane County, Oregon, was sentenced today by U.S. District Court Chief Judge Ann Aiken to serve 97 months in prison for conspiracy to distribute 50 grams or more of methamphetamine. Following his release from prison, Felix-Rodriguez will be on supervised release for five years. On December 18, 2014, co-conspirator Samuel Sanchez-Campa was sentenced to 57 months in prison, and on September 4, 2014, co-conspirator Angela Luna-Guillen was sentenced to 24 months in prison.
A long-term investigation by the DEA revealed that Felix-Rodriguez sold methamphetamine to Sanchez-Campa and others, who then resold the methamphetamine. Luna-Guillen facilitated the conspiracy by storing methamphetamine and transferring drug proceeds. In 2011, a DEA undercover agent purchased methamphetamine from Felix-Rodriguez on multiple occasions, and ultimately determined that Felix-Rodriguez bought methamphetamine in California and drove it back to Oregon.
On January 8, 2012, Felix-Rodriguez was driving to Oregon when he was stopped in Redding, California. The vehicle was searched and approximately three pounds of methamphetamine were located, leading to his arrest. Sanchez-Campa and Luna-Guillen were later charged and arrested.
This case was investigated by the Eugene Resident Office of the DEA. Assistant U.S. Attorneys Jeffrey Sweet and Amy Potter prosecuted the case.