District of Oregon
Press releases recorded for this federal judicial district.
Crook County Man Sentenced to Two and Half Years in Prison for Possessing a Loaded Firearm After Being Convicted for a Crime of Domestic ViolenceRead the Press Release
EUGENE, Ore. – Today, United States District Judge Anne Aiken sentenced Willard Bryan Wilhelm, 34, of Crook County, Oregon, to two and one-half years in prison and three years of supervision after his release from prison for possessing a firearm and ammunition after being convicted in an Oregon court of the misdemeanor crime of domestic violence.
Wilhelm pled guilty without a plea agreement to possessing a firearm and ammunition after being convicted in an Oregon court for an “Assault in the Fourth Degree Constituting Domestic Violence.” Wilhelm was warned he could no longer lawfully possess a firearm and ammunition. On July 19, 2012, Prineville officers were called to Wilhelm’s residence and arrested him for possessing a loaded rifle. Two female adults and four children were present in the residence when Wilhelm was taken into custody. Witnesses testified at Wilhelm’s sentencing about his history of possessing firearms while intoxicated and his abuse of women and children.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the
Prineville Police Department, and was referred to the U.S. Attorney’s office for prosecution by the Crook County Deputy District Attorney Katherine Krauel-Hernberg. It is being prosecuted by Assistant U.S. Attorney Frank R. Papagni, Jr..
Woodburn Man Sentenced to 108 Months in Federal Prison for Drug, Firearms, Food Stamp Fraud, and Illegal Reentry CrimesRead the Press Release
PORTLAND, Ore. – U.S. District Court Judge Michael W. Mosman today sentenced Albino Miranda Camarillo, 44, of Woodburn, Oregon, to 108 months in prison for possession with intent to distribute methamphetamine, felon in possession of firearms, food stamp fraud, and illegal reentry by a deported alien.
Portland FBI, ICE, and ATF agents, in conjunction with the South Metro Gang Task Force, consisting of Hillsboro Police, Woodburn Police, Canby Police, Oregon City Police, and Department of Agriculture Special Agents began investigating the drug trafficking activities of a person referred to as “JoJo.” Agents learned that Albino Miranda Camarillo was a Mexican citizen who had prior criminal convictions in 1990 and 1994 in Madera County, California, for transporting narcotics for sale, and that he had been deported after serving prison sentences.
An undercover investigation identified a storage locker, several vehicles, and a home in Woodburn after buying drugs from Camarillo. A financial investigation revealed that Camarillo was collecting food stamp benefits while claiming to be unemployed and the head of a family of five.
A Canby Detective sought seizure warrants to seize cash deposited in bank accounts by defendant totaling $28,504.22, which was later forfeited as unlawfully obtained food stamp benefits, since defendant Camarillo failed to declare his drug trafficking income on his State of Oregon benefit claims. Upon his arrest, defendant’s premises and were vehicles searched, and his bank accounts seized. On November 15, 2012, Camarillo pled guilty to four federal crimes and agreed to a sentence of 108 months in federal prison. At the time of his release he will be deported to Mexico. Should Camarillo illegally return to the United States after serving his federal prison sentence he will be subject to additional prosecution for immigration offenses.
Assistant U. S. Attorney John Haub prosecuted the case.
Tax Defier Chester Evans Davis Sentenced to 97 Months in PrisonRead the Press Release
PORTLAND, Ore. — U.S. District Court Judge Michael Simon today sentenced Chester Evans Davis, 56, of Oregon City, to 97 months in federal prison, to be followed by three years of supervised release. In March 2013, a federal jury convicted Davis of five counts of tax evasion, four counts of failure to file a corporate tax return, and one count of obstructing the internal revenue laws. At the sentencing hearing, the government presented evidence that Davis currently owes over $7 million in state and federal income taxes, and Judge Simon ordered Davis to pay his taxes and to file timely tax returns in the future.
“This defendant took extraordinary measures to hide his money,” said U.S. Attorney S. Amanda Marshall. “He refused to pay his fair share of taxes, to the detriment of all taxpayers, but now he will be repaying his debt to society for a very long time.”
“There are a number of strategies we often see people use when they try to get away with tax evasion,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “Mr. Davis tried a lot of them. He filed frivolous lawsuits, false documents with the IRS, and false and harassing claims against IRS personnel. He used alternative ‘banks’ to conceal his finances and nominees to disguise his business activities. These strategies all have one thing in common - they result in criminal conviction.”
Davis is the former owner and president of ESA International (formerly ESA NW, Inc.), a Gladstone engineering firm specializing in power system software. Davis’ company earned millions of dollars in annual revenue, including revenue from federal government agencies such as the U.S. Air Force, the Army Corps of Engineers, and Bonneville Power Administration. Davis transferred money from his company to various shell corporations and a warehouse bank, and then used the money to purchase more than $5 million in gold bars and coins. In response to the IRS audit, Davis sought to harass IRS employees, by filing arrest warrants against them, by filing liens, and by filing bogus Forms 1099-OID representing that he had paid income to IRS employees, as well as others.
Special Agents with Internal Revenue Service (IRS) Criminal Investigation seized over $1 million of Davis’ gold while executing search warrants at Davis’ residence and business, but the unaccounted-for gold is worth more than $7 million. While executing search warrants, IRS Criminal Investigation Special Agents found and seized over $1 million of Davis’ gold and approximately $115,000 in cash, much of which Davis hid in Bazooka tubes in his and a family member's home. In Davis' home, agents also found thirty-nine firearms, body armor, tactical gear, sniper training materials, survival manuals, and anti-government literature.
This case stemmed from an investigation by Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Craig Gabriel and Stacie Beckerman.
Former Owner/Operators of Summit Accommodators in Bend Convicted of Conspiracy to Defraud Clients and Conspiracy to Commit Money LaunderingRead the Press Release
PORTLAND, Ore. – A jury in federal court in Portland today convicted three former owner/operators of Summit Accommodators, Inc., of Bend, of conspiracy to commit mail fraud and conspiracy to commit money laundering in connection with a 10-year fraud scheme. The defendants used $75 million of client funds for undisclosed personal investments in real estate, investments in businesses in the Bend area, and loans to business associates and family members. Sentencing in the case is scheduled for October 23, 2013, before U.S. District Judge Anna J. Brown.
“Attorneys, certified public accountants and business executives who, motivated by greed, lie to clients to gain use of their money for personal purposes are especially deserving of prosecution and punishment,” said U.S. Attorney Amanda Marshall. “This office and our federal and state partners will do whatever it takes to bring dishonest professionals to justice.”
After three weeks of trial and two and one-half days of deliberations the jury found CPA Mark A. Neuman and Attorney Lane D. Lyons, both of Bend, and Timothy D. Larkin, of Redmond, guilty of conspiring to defraud the clients of their former business, Summit Accommodators, Inc., by misrepresenting how they would hold and use client funds. Several thousand clients entrusted them with more than $1 billion from 1999 to 2008, when the business closed and filed for bankruptcy. Brian Stevens, another former owner/operator of Summit, previously pleaded guilty to identical charges and testified against his former partners.
Neuman and Stevens created Summit in 1991 to help customers take advantage of lawful federal income tax deferral transactions. In a typical transaction, a customer would sell income producing property, allow Summit to hold the proceeds of the sale, then buy another income producing property within 180 days. Federal income tax laws then allowed the customer to defer paying taxes on the profits from sale of the first property. Summit eventually opened affiliate offices in Texas, Washington, Utah, Montana, Wyoming, Nevada, and Lake Oswego, Oregon.
In 2002, Neuman and Stevens hired Larkin as Summit’s Chief Operating Officer. In 2005, Neuman and Stevens hired Lyons as Summit’s in-house counsel. In 2006, Larkin and Lyons became equal partners in Summit with Neuman and Stevens.
The trial evidence showed that although Neuman and Stevens began using their clients’ exchange funds for personal investments before 1999, they promised their clients their exchange funds would remain in Summit bank accounts and would only be used to complete their tax deferral exchanges. Neuman was responsible for creating Summit marketing brochures and Summit’s website. Both falsely promised Summit would maintain client funds in bank accounts or in government securities.
From 2004 through October 2008, Summit held between $49 million and $109 million of its customers’ money in a typical month. The defendants routinely transferred large amounts of client money to Inland Capital Corp., another company they owned and controlled. Through Inland, the conspirators used client funds for over 100 real estate projects in Central Oregon in which one or more of them had direct personal interests.
The co-conspirators hid the fraud scheme by concealing from most of Summit’s employees and from most of the owner-operators of Summit’s branch offices that the conspirators were using Summit customer money to invest in real estate and for loans to themselves and others. In February 2007, when Summit’s clients and branch owner-operators began to express concern about the safety of Summit client money, the conspirators lied by saying that all Summit client money was deposited and maintained in financial institutions or invested in highly-secured short term notes. For 10 years, the conspirators intentionally concealed from clients that they used large amounts of client money to enrich themselves.
This case was investigated by the Federal Bureau of Investigation; IRS, Criminal Investigation; the United States Postal Inspection Service; and the Oregon Division of Finance and Corporate Securities. Assistant U.S. Attorneys Seth D. Uram and Donna Maddux handled the prosecution of the case.
Eugene Woman Sentenced to Prison for Selling More than 5,000 Illegally Obtained Sprint Cellphones Through the InternetRead the Press Release
EUGENE, OREGON— On January 8, 2013, Tamara Diane Brown, 41, of Eugene, Oregon, pleaded guilty to one count of mail fraud in U.S. District Court in Eugene, admitting her involvement in a scheme to sell illegally obtained cellphones through the internet. Today she was sentenced to 21 months in federal prison and ordered to pay restitution to the victim.
Brown admitted that while working as an employee of The Pape Group, Inc. in Eugene, she used her corporate authority to order large quantities of Sprint cellphones, which she then diverted and had delivered to her home and the home of her friend. Brown sold the devices through eBay. The scheme to defraud The Pape Group, Inc. and Sprint took place between February 2010 and October 2011. Brown admitted that during the scheme, she improperly ordered 5,107 cellphones and obtained more than $305,000 from selling them. She deposited the ill-gotten gains into her personal bank account and spent the proceeds by making a down payment on a residence and for vehicles, trips to Hawaii and Las Vegas, clothes and other personal expenses. The Pape Group, Inc. and Sprint were unaware of the fraud during the time it was occurring. Brown was terminated once The Pape Group, Inc. discovered her scheme.
Chief United States District Judge Ann Aiken presided over the case ordered Brown to serve 21 months in federal prison. After her prison sentence Brown must serve three years of supervised release. Brown was also ordered to forfeit the $305,000 she made from the fraud, and pay full restitution to the Pape Group, Inc.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U. S. Attorneys Chris Cardani and Amy Potter.
Portland Couple Indicted on Charges Related to Anti-Gay AssaultRead the Press Release
PORTLAND, Ore. — A federal grand jury in Portland, OR, has indicted George Allen Mason, Jr., 23, and his wife, Saraya Sophia Lisa Gardner, also 23, on charges related to a the assault of a 26-year old gay man who was walking his pink-dyed poodle with his boyfriend on the streets of Hillsboro, a Portland suburb, which occurred because of animus against the victim’s sexual orientation.
Mason is charged with violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act that was enacted in October 2009. The indictment alleges that Mason struck the victim with a metal tool because of the victim’s actual or perceived sexual orientation, thereby causing bodily injury to the victim.
Gardner is charged with one count of obstruction of justice for knowingly and intentionally misleading Hillsboro Police Department (HPD) officers in statements she provided in connection with the investigation of Mason. The indictment alleges that Gardner lied about Mason’s whereabouts at the time HPD officers were searching for him and that she further misled HPD officers when she repeatedly changed her story as to the weapon that Mason employed to strike the victim.
Mason faces a statutory maximum penalty of ten years in prison. Gardner faces a statutory maximum penalty of twenty years in prison. Both defendants will appear before a U.S. Magistrate Judge at the Mark Hatfield Federal Courthouse at a time to be set in the near future.
This case is being investigated by the Portland Division of the FBI in cooperation with HPD. It is being prosecuted by Assistant U.S. Attorney Hannah Horsley for the District of Oregon and Trial Attorney Fara Gold of the Civil Rights Division of the Department of Justice.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
Rogue River Man Sentenced to 25 Years in Federal Prison for Sexually Abusing MinorsRead the Press Release
Rogue River Man with Prior Conviction for Sex Crime, Sentenced for Transporting Two Minor Girls to California and Committing Sexual AssaultMEDFORD, Ore. – Today, Senior U.S. District Judge Owen M. Panner sentenced James Robert Powell, 50, of Rogue River, Oregon, to 25 years in federal prison for crimes relating to his sexual assault of two minors.
After receiving allegations that Powell had molested minors, law enforcement officials learned that Powell used his friendship with a woman to obtain her permission in March 2012 to take her two daughters, ages 15 and 13, from Rogue River, Oregon to Brookings, Oregon, purportedly to help Powell sell merchandise at a local fair. The investigation disclosed that Powell instead took the girls to a beach house he had rented in Smith River, California. Once there, Powell provided alcohol to the minors, got them drunk, and sexually abused both of them over a two day period. Powell also secretly recorded the girls while they were naked. He instructed the girls that upon their return, to lie to their mother about where they had been over the weekend.
On June 29, 2012, a federal grand jury returned an indictment against Powell, charging him with various offenses relating to his sexual assault of the minors. Powell pleaded guilty on January 22, 2013 to transportation with intent to engage in criminal sexual activity with a minor, and using a minor to produce a visual depiction of sexually explicit conduct. Powell has been in federal custody since he was arrested in April 2012.
Powell has a prior conviction in 1994 for assault with intent to commit rape and verbal threats to kill (U.S. Department of the Army, Fort Leavenworth, KS). Powell served five years in a military prison and received a General Court Martial.
Today, Senior U.S. District Judge Owen Panner sentenced Powell to serve 25 years in federal prison, and ordered that Powell be on supervised release for the rest of his life. U.S. Attorney Amanda Marshall applauded Judge Panner’s sentence, commenting that, “This 25-year sentence sends a clear message to other sex offenders like Powell. If you sexually abuse a child, we will find you, we will prosecute you, and you will be locked up for a very long time. We will continue to do everything in our power to remove these predators from society and prevent them from victimizing others.”
This case was investigated by the FBI, Grants Pass Police Department, and Southern Oregon High-Tech Crimes Task Force, and was prosecuted by Assistant U. S. Attorney Judith Harper.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Felon in Possession of Firearm Sentenced to 120 MonthsRead the Press Release
EUGENE, Ore. – On June 18, 2013, Klamath Falls resident Kevin Rowdy Hurst, 45, was sentenced by U.S. District Chief Judge Ann Aiken to 120 months in federal prison for unlawful possession of a firearm and ammunition. Upon his release from prison, Hurst will be on supervised release for three years.
On August 13, 2011, a Klamath County Sheriff’s Officer encountered Hurst biking the streets of Klamath Falls while carrying a loaded AR-15. When confronted, Hurst threw the rifle over a fence and eluded officers. Defendant has multiple felony convictions and a lengthy criminal history.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Klamath County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Hui "Judy" Wang Sentenced for Wire Fraud in Connection with a $2 Million Advance Fee SchemeRead the Press Release
Defendant Bilked Customers who Sought Venture Capital FundingPORTLAND, Ore. – Hui “Judy” Wang, 46, of Laguna Niguel, California, was sentenced today to 41 months in prison by U.S. District Court Judge Ancer L. Haggerty following her guilty plea to one count of wire fraud related to an advance fee scheme. Wang was also ordered to pay restitution to the victims in the full amount of $2 million.
“People who lie to cheat others out of their hard earned money in fraud schemes such as this will be prosecuted to the full extent of the law,” said U.S. Attorney Amanda Marshall. Marshall thanked the Internal Revenue Service for their investigative efforts.
In 2007 a Vancouver business owner sought venture capital for his technology-based start-up company. He found Wang and her business, Grand Capital Financial, through her internet website, advertising the business as a real estate investment trust and financial lender. He approached Wang for her assistance in finding venture capital for his company. Wang promised him that she could secure up to $200 million for his business, but told the victim that he first had to deposit $2 million into her account for a period of 30 days in order to prove to the potential financiers that the business was operational and solvent. If the funding was secured, the deposit would be considered as an advance on her fee. Wang’s contract provided that she would return the $2 million deposit if she could not secure the promised funding within 30 days.
Over the following few months, the victim contacted potential lenders, and eventually a Portland resident agreed to provide a short-term loan of $2 million to the victim so he could pursue additional venture capital through Wang. The money was thereafter wired from Oregon to California.
As soon as the money was deposited into Wang’s account, she began to spend it. She paid off two personal mortgage loans, purchased a residence in Texas, bought two vehicles, and paid numerous personal expenses. When the 30-day window ended and no venture capital was secured, the victim asked for his money back consistent with the contract. Wang repeatedly lied, stating that funding was still being worked out, that she still had all the money, and would return it if she couldn’t secure the funding in the short term. No venture funding ever materialized. All subsequent efforts to recover the money have failed, and the victims have lost the entire advance fee given to Wang.
“Trust in the people you do business with is such an essential part of our economy, and Ms. Wang took advantage of her victim’s trust in her to satisfy her own greed,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “The 41‑month prison sentence handed down today in this case is a clear message to fraudsters that the IRS will bring the skills of its financial investigators to the task of following the money and holding the guilty accountable.”
This investigation was conducted by the Internal Revenue Service, Criminal Investigation. This case was prosecuted by Assistant U.S. Attorney Scott Erik Asphaug.
Federal Indictment Charges Lane County Couple with Obtaining a Firearm for a Convicted Felon and Being Accessories to Kidnapping and Other CrimesRead the Press Release
Indictment Charges Husband and Wife with Obtaining Firearm for Charged Federal Defendant David Joseph Pedersen and Being Accessories After the Fact for Pederson and Co-Defendant Holly Ann GrigsbyPORTLAND, Ore. - A federal indictment was unsealed today charging Corey Wyatt, 28, and his wife, Kimberly Scott Wyatt, 32, of Springfield and Monroe, Oregon with conspiracy to obtain and transfer a firearm to convicted felon David Joseph Pedersen a/k/a Joey Pedersen who was prohibited from possessing a firearm, the straw purchase and transfer of that firearm, being accessories after the fact to kidnapping resulting in death, using a firearm in a crime of violence that caused death, and transportation of a stolen vehicle by assisting David Joseph Pedersen and Holly Ann Grigsby, and misprision of a felony.
Kimberly Scott Wyatt appeared before U.S.Magistrate Dennis J. Hubel for arraignment and entered a plea of not guilty to all counts of the indictment. She was detained in custody pending further review, and a trial date of August 20, 2013 was set. Defendant Corey Wyatt is currently in custody on unrelated state charges, and an arraignment before a U.S. Magistrate will be scheduled on a later date.
The attached indictment charges an alleged conspiracy that began on or about July 4, 2011, and charges the Wyatts with making a false statement to deceive a licensed firearms dealer that Kimberly Scott Wyatt was the actual purchaser of a 9mm luger pistol when, in fact, they purchased the firearm for David Joseph Pedersen who was a convicted felon who was prohibited from possessing a firearm. David Joseph Pedersen and Holly Ann Grigsby are currently pending federal charges that stem from an alleged 10-day crime spree that spanned from Everett, Washington to Eureka, California, and included four murders and the possession of that firearm and others.
The attached indictment also charges both Corey Wyatt and Kimberly Scott Wyatt with being accessories after the fact to Pedersen and Grigsby between September 27 and 28, 2011, in order to hinder and prevent their apprehension, knowing that Pedersen and Grigsby had committed crimes including kidnapping resulting in death, using a firearm in a crime of violence that caused death, and transporting a stolen vehicle. Pedersen and Grigsby are charged in a separate federal indictment with the murder, kidnapping and robbery of Pedersen’s father, David Jones “Red” Pedersen, of Everett, Washington, as well as using a firearm during and in relation to a crime of violence that resulted in death, and the interstate transportation of Red Pedersen’s stolen vehicle from Washington to Oregon between September 26 and 27, 2011.
If convicted, the defendants face maximum penalties for the charges ranging from three to 15 years, 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.
These charges stem from an investigation led by the Federal Bureau of Investigation (FBI), the Oregon State Police, the Everett, Washington Police Department and the Eureka, California Police Department, with assistance from the Oregon Department of Corrections, Lincoln County Sheriff's Office, Lincoln County Major Crimes Team, Linn County Sheriff's Office, Benton County Sheriff's Office, Corvallis Police Department, Salem Police Department, Keizer Police Department, California Highway Patrol, Yuba County, California Sheriff's Office, Portland Police Bureau, United States Marshals Service, Tillamook County Sheriff's Office, Philomath Police Department, Lebanon Police Department, Stayton Police Department, Snohomish County Sheriff's Office, and the Oregon Department of Justice.
Assistant U.S. Attorneys Jane Shoemaker and Hannah Horsley are handling the prosecution of the case.
Portland-Area Drug Trafficker Sentenced to over 17 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – Michael Thomas Ragnone, 37, of Portland, Oregon, was sentenced yesterday by U.S. District Judge Michael W. Mosman to 210 months (17.5 years) in prison and five years of supervised release, for his leadership role in a conspiracy responsible for distributing significant quantities of methamphetamine in the Portland metropolitan area.
“This 17-year sentence marks the culmination of an efficient investigation by the Clackamas County Interagency Task Force, the Drug Enforcement Administration (DEA) and an effective federal prosecution targeting a drug distribution network responsible for introducing significant quantities of methamphetamine into our community,” said U.S. Attorney Amanda Marshall. “Thanks to the hard work of our law enforcement partners, another drug dealer is off the streets.”
In March 2011, Clackamas County Interagency Task Force (CCITF) officers successfully introduced an undercover officer to an upper-mid level drug dealer known to them as “Russian John.” Agents identified “Russian John” as Michael Thomas Ragnone, the owner of R&M Motors car lot at 809 North Rosa Parks Way. Between April and September 2011, agents conducted several controlled buys of methamphetamine from Ragnone and his drug couriers, in multiple ounce quantities. Surveillance officers observed Ragnone driving a BMW M5, Mercedes E320, and Honda CRV. On September 7, 2011, agents arrested Ragnone and executed a search warrant at his car lot. They seized 15 firearms, over four pounds of methamphetamine, digital scales, and piles of stolen property including boat motors, bicycles, credit cards, and hundreds of catalytic converters.
At the defendant’s initial appearance in federal court, the magistrate judge released defendant to pretrial supervision, over the government’s objection. During his time on pretrial supervision, defendant continued to engage in criminal conduct by sending a methamphetamine-laced letter to his incarcerated girlfriend, using stolen credit cards, and diversifying his drug distribution business to include both heroin and methamphetamine. He was taken back into custody in October 2012. As a result of his pretrial misconduct, defendant lost 7 years’ worth of sentencing credit for “acceptance of responsibility.” On June 6, 2013, Judge Mosman sentenced Ragnone to 210 months in prison and imposed a money judgment of $500,000. Judge Mosman found that aggravating factors justified the lengthy prison term, including the firearms, defendant’s leadership role, and defendant’s post-indictment misconduct in the community while pending trial.
Ragnone was the final defendant to be sentenced in the overall CCITF investigation in which Ragnone’s co-conspirators in related cases received federal prison sentences of 70 months, 75 months, 87 months, 120 months, and 262 months.
This case was investigated by Clackamas County Interagency Task Force and the DEA. The case was prosecuted by Assistant United States Attorney Leah K. Bolstad and Special Assistant United States Attorney Steven T. Mygrant.
Eugene Man Sentenced to 196 Months in Prison for Bank RobberyRead the Press Release
EUGENE, Ore. – Jeremie Wesley Skordahl, 33, of Eugene, Oregon, was sentenced today by Chief District Court Judge Ann Aiken to 196 months in prison for bank robbery. Upon his release from prison, Skordahl will be on supervised release for three years.
On November 12, 2012, Skordahl entered the Coburg Road branch of U.S. Bank in Eugene and handed the teller a note, which demanded money. He stated he was armed and would not hesitate shooting as many people as possible. Skordahl obtained $2,630 and fled the bank. Later the same day, Skordahl was located in a nearby residential area after a resident reported seeing Skordahl running through neighboring backyards. Skordahl was arrested and the money he stole was found on his person.
Skordahl's criminal history qualified him as a career offender under the Federal Sentencing Guidelines, resulting in an increased sentence. Additionally, as part of his plea agreement, Skordahl agreed to serve a longer federal sentence in order to receive a concurrent sentence in a Lane County Circuit Court assault case.
This case was investigated by the Federal Bureau of Investigation and the Eugene Police Department and was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Albany Woman Arrested on Charges She Called in Bomb Threats to SchoolsRead the Press Release
EUGENE, Ore. – Today FBI Agents arrested Jenelle Pinkston, age 45, for allegedly calling in bomb threats to Albany, Oregon, elementary schools in April and May of this year. Pinkston faces one count of threatened use of a destructive device. If convicted, she faces a maximum penalty of 10 years in prison and a $250,000 fine. Pinkston made her initial appearance before Magistrate Judge Thomas M. Coffin on Wednesday, and he ordered Pinkston held pending further court proceedings.
According to the criminal complaint, investigators allege that Pinkston made one call on April 16, 2013, to Waverly Elementary School, threatening that a bomb would explode in 10 minutes. The complaint further alleges that Pinkston made two calls on May 23, 2013: another call to Waverly Elementary School and one to Periwinkle Elementary School. In all cases, administrators evacuated the schools, but no devices were ever found. Albany Police Department and Albany Fire Department responded to all incidents and expended significant resources in determining that the schools were safe for the students to return. Albany Police Department initially determined the phone that was used in the threats, traced that phone’s ownership and use, and arrested Pinkston on local charges of coercion, disorderly conduct, and tampering with evidence.
Assistant United States Attorney William Fitzgerald is the federal prosecutor overseeing this case.
A criminal complaint is only an accusation of a crime, and all defendants should be presumed innocent until proven guilty.
Prolific Sex Trafficker Sentenced to 16 Years PrisonRead the Press Release
PORTLAND, Ore. – Rashad Q. Sanders, 28 was sentenced to 194 months in federal prison yesterday by U.S. District Judge Marco A. Hernandez, after pleading guilty to three counts of a superseding indictment charging him with the sex trafficking and transportation of three minors. Sanders was also sentenced to 10 years of supervised release and will have to register as a sex offender.
The investigation began in September of 2008 when Sanders made contact with two minors aged 16 and 17 via the internet. He ultimately convinced both of them to leave the State of Minnesota and travel to Portland, Oregon to work for him as prostitutes. Sanders purchased Greyhound Bus tickets for the minors and picked them up at the bus station when they arrived in Portland. Thereafter, Sanders took the girls to a local hotel and provided one of the minors with a false identification card that showed her to be over 18. He gave her instructions to register a room under the false name. The same day he helped the minors obtain cellular phones. Later in the evening he used his laptop computer to post pictures of the minors in commercial sex advertisements online via Craigslist.com. Thereafter, the victims started receiving calls from paying customers and engaged in sex acts for money. The girls complied with Sanders instructions to give him all the money they made from prostitution. After a short period of time, the girls realized they didn’t want to work for Sanders anymore and tried to leave. At that time, Sanders became angry and punched one of the girls in the head, knocking her down the hotel stairs. The other minor ran from the hotel, entered a stranger’s home, and asked if they would call 911. By the time the police arrived, Sanders had fled the area, leaving his laptop and other possessions.
On May 4, 2011, Sanders was arrested on a state charge of compelling prostitution at the Palms Hotel in Portland, Oregon. At the time,“C.C.”, a 15 year old, was a passenger in the front seat of his car. On that date, the police were called by staff at the Palms Hotel because Sanders would not pay for double occupancy on a room that he rented. When they contacted CC she said that Sanders was her pimp and brought her to the hotel for a prostitution date. She said that Sanders had drugged her and forced her to work as a prostitute for him. Inside Sanders’ car, the police found lingerie, condoms, and a cell phone that was used to receive calls from “C.C.” customers. “C.C.” was taken to a local hospital and interviewed. In the days and months that followed, “C.C.” began to tell a consistent story about how she met Sanders about a year earlier when she was 14 year old. Also, about how Sanders provided and injected her with methamphetamine. Additionally, she shared over time he convinced her to work for him as a prostitute beginning about December of 2010.
At the sentencing hearing, Sanders did not express any remorse for the minors and told Federal District Court Judge Hernandez that these minors are not victims and blamed them for his current situation.
This case was investigated by the Portland Police Bureau, FBI, and the FBI Child Exploitation Task Force. The case was prosecuted by Assistant U.S. Attorney Kemp Strickland.
Texas Couple Convicted of Conspiracy to Defraud the U.S. and to Engage in Money LaunderingRead the Press Release
Jury Verdict Returned Thursday June 27, 2013PORTLAND, Ore. – A federal jury in Portland returned verdicts of guilty Thursday in the trial of husband and wife Hossein Lahiji, age 50, and Najmeh Vahid Dasterjerdi a.k.a. Najmeh Lahiji, age 33, both of McAllen, Texas. Hossein Lahiji is a physician specializing in urology and Najmeh Vahid is an attorney, both practicing in Texas. The counts of conviction included conspiracy to defraud the United States which carries a maximum penalty of five years in prison and a fine of $250,000 and conspiracy to engage in money laundering which carries a maximum penalty of 20 years in prison and a fine of $500,000. The indictment alleged that defendants conspired to impede and impair the functions of the Internal Revenue Service in the collection of income taxes and the Office of Foreign Assets Control of the Treasury Department in the enforcement of the Presidential Embargo against Iran. The jury also returned a verdict of forfeiture to the United States of $600,000 that was involved in the money laundering offense.
Trial evidence showed that defendants provided funds to a Portland charity, the Child Foundation, between 1998 and 2006. The Child Foundation, in turn, gave the defendants charitable donation receipts and transferred the funds to Iran. Defendants claimed charitable deductions from their income taxes for these payments. Some of the funds were used to purchase a building in Tehran in the name of Hossein Lahiji’s sister. Additional funds were used to invest in an interest-bearing account in an Iranian bank. Yet additional funds were committed to be spent at the discretion of an Iranian Ayatollah. Some of the payments were backdated to facilitate claims of charitable donations for a year prior to the year of actual payment. Many of the uses of the funds violated the Presidential embargo against Iran, instituted in 1995. Co-conspirators Child Foundation and Mehrdad Yasrebi were separately prosecuted and sentenced in March 2012. Child Foundation has since completely reorganized and continues to operate under the supervision of U.S. Probation officers.
Judge Garr M. King presided over the trial, which began on June 11, 2013. He scheduled sentencing for November 19, 2013 at 10:00 a.m. Defendants remain on release pending sentencing. Defendants are charged in a separate federal indictment in the Houston Division of the Southern District of Texas with conspiracy to commit health care fraud, health care fraud, conspiracy to violate the Iranian Embargo, and failure to file a report of foreign bank and financial accounts. Trial in the Houston case is currently scheduled for October of 2013.
These cases were investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division, and prosecuted by Assistant U.S. Attorneys Charles Gorder and David Atkinson.
Southern Oregon Martial Arts Instructor Sentenced to Federal Prison on Marijuana ChargesRead the Press Release
Oregon Medical Marijuana Program Cloaks Illegal Marijuana SalesMEDFORD, Ore. - On Monday, June 3, 2013, Federal District Judge Owen M. Panner sentenced Robert Hisamoto, age 42, of Ashland, Oregon, to 48 months in federal prison for Conspiracy to Manufacture and Distribute Marijuana. Hisamoto owns and operates Samurai Fighting Arts in Medford, Oregon.
In August 2011, U.S. Drug Enforcement Agency aerial surveillance identified 198 large marijuana plants growing at 6530 Tolo Road, Central Point, Oregon. This property was owned by Robert Hisamoto and was listed as an Oregon Medical Marijuana Program (OMMP) grow site. On October 20, 2011, DEA agents executed a search warrant at the Tolo Road property. Charlie and Madeline Reader resided at the property with their adult children. All but sixteen marijuana plants had been harvested. A large barn contained 48 drying racks used to process marijuana. The garage contained an indoor marijuana grow operation with 90 marijuana plants under grow lights, and a “Trim Pro” (Twister) hi-speed marijuana processing machine.
Agents simultaneously executed a search warrant at Hisamoto’s residence, 704 Elkader Street, Ashland, Oregon. The garage contained 98 pounds of trimmed marijuana bud on drying racks, 117 pounds of packaged marijuana bud, and 17 pounds of marijuana shake, totaling 233 pounds. Hisamoto was registered as an OMMP caregiver for 30 patients, which allowed him to possess a maximum of 45 pounds of marijuana. Several documents contained notations of marijuana weights and prices per pound sold, with sales totals ranging from $18,000 to $29,000. Agents also discovered that Hisamoto maintained an additional marijuana grow site in Butte Falls. Agents later learned from witness interviews that Hisamoto additionally had more than 100 pounds of processed marijuana concealed in a storage unit, which Hisamoto later sold.
Interviews of listed OMMP growers and patients revealed that Hisamoto recruited OMMP growers and patients to justify growing large quantities of marijuana for sale. Most of the “growers” were not involved in the operation, and many of the “patients’ either did not use marijuana or never received marijuana from Hisamoto. Further investigation revealed that Hisamoto sold the marijuana to buyers from California. Hisamoto recruited co-defendants Charlie and Madeline Reader to manage the Tolo Road marijuana grow site. Madeline Reader also signed up OMMP patients for Hisamoto and paid their fees with money provided by Hisamoto. Hisamoto also recruited several others to guard the Tolo Road grow site and assist in trimming marijuana.
Co-defendants Charles Reader and Madeline Reader were previously sentenced to 33 months and 18 months prison respectively for their role in Hisamoto’s operation. Madeline Reader had a previous felony conviction for delivery of methamphetamine.
This case was investigated by the U.S. Drug Enforcement Administration with assistance from the Jackson County Sheriff’s Office, Medford Police Department, Ashland Police Department, U.S. Marshals Service, Immigration and Customs Enforcement, Federal Bureau of Investigation, Internal Revenue Service, U.S. Forest Service, and the U.S. Bureau of Land Management, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Department of Justice Releases First Report to Congress on Indian Country Investigations and ProsecutionsRead the Press Release
Report to Congress Shows Increased Federal Prosecutions on Oregon’s Indian ReservationsPORTLAND, Ore. – The Department of Justice released today a report to Congress entitled Indian Country Investigations and Prosecutions that provides a range of statistics related to federal law enforcement operations in Indian Country in 2011 and 2012. The report, which is based on data compiled by U.S. Attorney’s Offices and the FBI, shows a 54 percent increase in Indian Country criminal prosecutions nationally since Fiscal Year 2009.
“Across the country, U.S. Attorneys have been focused on fighting crime in Indian Country and reinforcing the bond between federal and tribal law enforcement, which also strengthens the faith that people have in their criminal justice system,” said Attorney General Eric Holder. “This report on federal law enforcement efforts in Indian Country is beginning to show the fruits of this labor with an increase in Indian Country cases prosecuted in federal courts over the past three years, but we have more work to do. The department will continue in its commitment to working with our tribal partners to build safe, sustainable, and healthy communities in American Indian and Alaska Native communities.”
“While the numbers are gratifying, they are only a small part of the story. What we are most proud of is the way tribal leaders and Justice Officials have worked together in recent years to find and implement responses to violent crime in Indian Country,” said U.S. Attorney Amanda Marshall. “From the passage of the Tribal Law and Order Act (TLOA); the Violence Against Women Act; and inter-agency collaboration in both prevention and enforcement, we have come a long way. Here in Oregon, I am especially proud of the way our office has worked to not only fight crime, but also to provide technical expertise, training, consultation, and prosecution resources to assist tribes in exercising their law enforcement, sentencing, and jurisdictional authority. We have a proud tradition of honoring our trust responsibility to Oregon Tribes. From the country’s first tribal High Intensity Drug Trafficking Area (HIDTA) program at Warm Springs to the nation’s first tribal court sentencing to the Bureau of Prisons under the provisions of the TLOA by the Umatilla Tribe, our partnerships with tribes have paved the way for significant improvements to public safety in Indian Country. I am confident that we will continue to blaze new trails to ensure that reservations in Oregon are safe places for children and families.”
In Oregon, the U.S. Attorney’s Office has the responsibility to prosecute major crimes on the Burns-Paiute Indian Reservation, the Warm Springs Indian Reservation, and the Umatilla Indian Reservation. The report shows that in 2011, the U.S. Attorney’s Office for the District of Oregon prosecuted 31 Indian Country cases and declined 17 cases, for a declination rate of 35%. In 2012, the U.S. Attorney’s Office for the District of Oregon prosecuted 50 Indian Country cases and declined 9 cases, for a declination rate of 15%. Cases were declined for numerous reasons, such as the suspect being prosecuted in tribal court instead of federal court, or the lack of sufficient evidence to proceed with a federal prosecution.
Major crimes in Indian Country are investigated jointly by tribal law enforcement officers and FBI agents. The number of Indian Country prosecutions in Oregon has increased significantly in the past two years due to partnerships between tribal and federal law enforcement officers. For example, in Warm Springs, a Multi-Disciplinary Team of social workers, tribal prosecutors, tribal detectives, FBI agents, and federal prosecutors meet monthly to review and evaluate ongoing child abuse investigations. Additionally, a lawyer from the Umatilla Indian Reservation was commissioned last year as a Special Assistant United States Attorney to prosecute federal crimes and help coordinate joint tribal-federal investigations of major crimes. Additionally, U.S. Attorney Amanda Marshall travels annually to consult with leaders from all nine of Oregon’s Tribal Nations to listen to their concerns about public safety in their communities. Ms. Marshall also serves on the Attorney General’s Native American Advisory Committee and chairs the Juvenile Justice in Indian Country Working Group.
Read the entire report at http://www.justice.gov/tribal/tloa-report-cy-2011-2012.pdf
Read more about the Justice Department’s efforts to increase public safety in Indian County at http://www.justice.gov/tribal/accomplishments.html
Medford Man Sentenced to 15 Years in Federal Prison for Marijuana Distribution ConvictionRead the Press Release
Oregon Medical Marijuana Program Used as a Cover to Grow Marijuana For Sale.MEDFORD, Ore. - On Tuesday, May 28, 2013, Senior U. S. District Judge Owen M. Panner sentenced Brian Wayne Simmons, 40, of Medford, Oregon, to 15 years in federal prison for conspiracy, and manufacturing and distributing marijuana.
Simmons owned and operated Brian’s Green Thumb Farm on East Gregory Road in Central Point, Oregon, purporting to grow organic vegetables. U.S. Drug Enforcement Administration agents executed a search warrant on Simmon’s farm in October 2011, seizing 456 large marijuana plants. Agents seized an additional 64 large marijuana plants at a second grow site on Dark Hollow Road in Medford. The plants ranged from approximately 5-8 feet tall and produced upwards of 10 pounds of marijuana per plant. Agents also seized thousands of pounds of harvested marijuana being processed at both locations (1,600 pounds dry weight). Simmons had previously registered over 20 persons as “growers” at his marijuana sites, creating the appearance that he was complying with the Oregon Medical Marijuana Act. In fact, evidence established that many of the growers were recruited in name only and took no part in the grow operation. Simmons also recruited persons to tend the marijuana plants for a percentage of the profit, and paid others to trim the marijuana. The investigation revealed that Simmons had been growing and selling marijuana since at least 2009, with documented sales of over $740,000 for the 2009 and 2010 grow seasons. Based on the seized evidence, Simmons had roughly quadrupled the size of his operation by 2011.
Simmons was convicted by a twelve person jury after a trial in Medford, Oregon in December 2012. A co-defendant, Michael Grantski, was acquitted. Another co-defendant, Michael Peru, pleaded guilty, and is pending sentencing.
“This case represents another gross abuse of the Oregon Medical Marijuana Program (OMMP). Under state law, OMMP attempts to provide a mechanism to enable people who suffer from one of several enumerated medical conditions to obtain medicinal marijuana. Unfortunately, criminals like Mr. Simmons hide behind the façade of OMMP in order to sell their illicit product to drug users and drug dealers for profit,” stated U. S. Attorney Amanda S. Marshall. “My office will continue to indict others who violate both state and federal law by producing and selling large quantities of marijuana for profit. We will also take the assets that are used to facilitate the illegal activity and the resulting proceeds in order to take the profit out of this crime.”
This case was investigated by the U.S. Drug Enforcement Administration, with assistance from the Jackson County Sheriff’s Office, Medford Police Department, Ashland Police Department, U.S. Marshals Service, Immigration and Customs Enforcement, Federal Bureau of Investigation, Internal Revenue Service, U.S. Forest Service, and the U.S. Bureau of Land Management, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Oregon Penitentiary Inmate Sentenced in Federal Court for Series of Crimes Against Law Enforcement PersonnelRead the Press Release
Portland, Ore. - An inmate of the Oregon State Penitentiary, Andrew Laud Barnett, 32, today received an additional 80-month federal sentence for a series of crimes against law enforcement personnel occurring from 2008 through 2012. U.S. District Judge Marco A. Hernandez ordered that 63 months be served consecutively to the prison term Barnett is currently serving in Oregon state custody.
In January 2008, while serving earlier state sentences for assaulting sheriffs’ deputies in Washington and Marion counties, Barnett mailed a threatening letter to Washington County Sheriff Rob Gordon and three of his deputies. The letter was in retaliation for Barnett’s earlier assault prosecution and contained explicit threats of sexual assault, injury and death against the officers.
In August 2011, while awaiting federal court proceedings in the 2008 case, Barnett assaulted a deputy sheriff at the Multnomah County Detention Center. Barnett threw a container of human urine and feces in the face of the deputy.
In April 2012, while awaiting trial in both the 2008 and 2011 cases, Barnett mailed a threatening letter addressed to his federal prosecutor, Assistant United States Attorney Stephen F. Peifer. The envelope contained a white powder that Barnett represented was anthrax. A receptionist at the U.S. Attorney’s Office opened the letter in the course of her duties and inhaled the powder. Hazardous materials personnel and paramedics came to the U.S. Courthouse to investigate and care for the victim. The substance was later determined to be a penicillin-based antibiotic that had been ground into a powder.
In addition to the 2007 assaults against the deputies, Barnett has prior felony convictions for third-degree robbery, first-degree burglary and vehicle theft in 2000, delivery of a controlled substance in 2004, and assault of a corrections officer in 2004.
Barnett currently has a projected release date of May 2015 after serving his sentence on conviction of the state cases. Therefore, the 63-month portion of his new federal sentences will not commence until his state sentences end.
The federal cases were investigated by the Federal Bureau of Investigation, the U.S. Marshal’s Service, and the U.S. Postal Inspection Service.
Canby Man Sentenced to 140 Months in Federal Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
PORTLAND, Ore. – U.S. District Judge Marco A. Hernandez today sentenced Darrell Michael Ostlund, 33, of Canby, Oregon, to 140 months in federal prison for possession with intent to distribute methamphetamine. The sentencing follows Ostlund’s guilty plea on February 15, 2013.
This investigation began on April 9, 2012, when an Oregon State Police trooper stopped a car travelling 85 miles per hour in a 55 mile per hour zone, near Canby, Oregon. The defendant was a passenger in that car and a small safe near his feet contained methamphetamine and packaging material.
A warrant was issued when the defendant failed to appear on earlier charges and on June 15, 2012, Canby police detectives arrested Ostlund after seeing him with others at a Wilsonville motel. When he resisted arrest, defendant was subdued; officers found two hotel room keys in his possession. Subsequent searches of the hotel rooms found two large baggies of methamphetamine and $3,271 in currency. The federal indictment charging Ostlund with possession with the intent to distribute methamphetamine was returned on September 5, 2012.
On October 17, 2012, a Portland Police officer saw defendant in a southeast Portland apartment complex driving a suspected stolen car. Ostlund became agitated, and fled, only to be struck by a Taser. When Ostlund fell to the ground, the Taser prongs dislodged and he was able to flee, until a K-9 unit arrived. He was located hiding in the complex, and arrested. A search of his vehicle revealed a plastic box hidden under the hood, containing a large quantity of methamphetamine and $1,365 in currency.
Court records show the defendant first used marijuana at age 15, began using methamphetamine at age 17, and turned to cocaine at age 18. He was a 1998 graduate of Canby High School, where he played football all four years and was selected as an all-conference player his senior year. He had nine prior arrests and convictions and was on post-prison supervision abscond status at the time of his arrest in April, 2012.
The case was investigated by the Canby Police Department, Oregon State Police, Portland Police and the Marion County Probation Office. Assistant U. S. Attorney John Haub prosecuted the case.
Sheldon Harmon Pleads Guilty to Bank Fraud, Money Laundering and False Statements to a BankRead the Press Release
Formerly of Ridgefield, Washington, Defendant Admits to Fraudulent Loan Applications Totaling $3.825 Million Dollars to Umpqua BankPORTLAND, Ore. - Sheldon Harmon, formerly of Ridgefield, Washington now of St. George, Utah pled guilty before U.S. District Judge Marco A. Hernandez today to one count of bank fraud, one count of false statements to a bank, and two counts of money laundering.
Harmon refinanced a commercial real property located in Vancouver, Washington through Umpqua Bank’s commercial lending in Beaverton, Oregon. To qualify for the loan, Harmon submitted several false leases to Umpqua Bank indicating that multiple tenants were renting approximately 90% of the commercial property and paying rent to Harmon of almost $70,000 per month. During the underwriting process, Harmon had business signs for the tenants made and hung them outside office space in the building and during a tour of the building, showed Umpqua Bank’s representatives where the tenants purportedly worked. In fact, none of the tenants were leasing the office space in the building as represented by Harmon and not one of them had made a lease payment to Harmon. Based on Harmon’s misrepresentations, Umpqua loaned him $3.825 million dollars and Harmon took out cash proceeds of over $1 million. Harmon admitted that he laundered over $500,000 of the loan proceeds through his bank account.
“Individuals who steal from financial institutions through deception will be prosecuted by this office. We will not permit the integrity of our banking system to be manipulated by cheats,” said U.S. Attorney Amanda Marshall. Marshall thanked the Internal Revenue Service and the United States Postal Service for their combined investigative efforts.
“Lying to a bank in order to trick them into giving you other people’s money is criminal and runs counter to ideals, like honesty and fair dealing, which are essential to the strength of our financial system,” said Steven J. Bellis, Assistant Special Agent in Charge of IRS Criminal Investigation in Oregon. “I am pleased that IRS Special Agents bring their unique expertise in following the money to cases like this in order to help hold people engaging in fraud accountable for their actions.”
Bank fraud and false statements to a bank carry a maximum term of 30 years in prison. Money laundering carries a maximum penalty of 10 years. Sentencing is set for August 12, 2013.
This investigation was conducted by Special Agents Abraham Smith and Nicholas Warner at the Internal Revenue Service - Criminal Investigation and the United States Postal Inspection Service. This case is being prosecuted by Assistant U.S. Attorneys Michelle Kerin and Katie Lorenz.
Former Bend Area Bank Loan Officer Pleads Guilty to $2.6 Million FraudRead the Press Release
Case Relates to the Collapse of Desert Sun Development in Bend, OregonEUGENE, Ore. – Today, Jeffrey Sprague, 50, of Bend, Oregon, appeared before Chief U.S. District Court Judge Ann Aiken and pleaded guilty to conspiracy to make false statements to a financial institution, to commit wire fraud, and to commit bank fraud. The charge arose out of the collapse of Desert Sun Development (DSD), a development and construction company in Bend, Oregon. As part of his guilty plea, Sprague admitted that he caused his former employer, West Coast Bank, to lose more than $2.6 million on fraudulent loans.
According to court documents, Sprague, a loan officer at West Coast Bank at the time, falsified loan applications for DSD employees and others by fraudulently inflating their monthly income and falsely claiming that these homes were going to be the employees’ primary residences when he knew these homes were part of DSD’s flipping scheme. Sprague also knew that these loan files contained forged or scanned signatures and other material misrepresentations and omissions. West Coast Bank approved and funded the loans for DSD employees and others based on the loan applications Sprague falsified as well as the other documents that Sprague submitted to the bank that he knew were false.
Out of the DSD investigation, 13 individuals were charged in five indictments, and, with Sprague’s guilty plea, all 13 defendants have pled guilty. Sprague is scheduled to appear before Chief Judge Aiken for sentencing on September 3, 2013. Sentencing hearings for the co-defendants are scheduled for July 10 and July 31, 2013, before Chief Judge Aiken.
Conspiracy carries a maximum sentence of five years in prison and a $250,000 fine.
This case was investigated by the FBI, IRS-Criminal Investigations, and the Oregon Division of Finance and Corporate Securities. Assistant U.S. Attorney Scott E. Bradford is handling the prosecution of the case.
Bank Robber Sentenced to 14 Years in Federal PrisonRead the Press Release
Portland, Ore. — James Joseph Bjorne Bennett, 55, most recently of Portland, Oregon and formerly of Fairbanks, Alaska, was sentenced to 168 months in prison today by United States District Judge Michael W. Mosman, for a string of bank robberies Bennett committed in the Portland area in September 2008. On January 4, 2011, Bennett pleaded guilty to five counts of bank robbery and two counts of attempted bank robbery. Upon release from custody, Bennett will serve a 3-year period of supervised release.
“Bank robbers endanger and intimidate tellers and bank employees, as well as anyone else who walks into the bank on the wrong day.” said U.S. Attorney S. Amanda Marshall. “This defendant will have many years in prison to reflect upon the harm he caused numerous people in these seven banks who were just trying to do their jobs and their banking.”
Bennett was arrested by the U.S. Marshals Service in September 2008. Bennett has admitted that on September 15, 2008, he robbed the Wells Fargo Bank on SE McLoughlin Blvd. in Milwaukie; on September 19, 2008, he robbed the West Coast Bank on Southwest Pacific Highway in Tigard; on September 22, 2008, he robbed the US Bank on NE Cornell Rd. in Hillsboro; on September 25, 2008, he attempted to rob the Bank of America on SE 82nd Avenue in Happy Valley and the KeyBank on SE McLoughlin Blvd. in Oak Grove, and he successfully robbed the US Bank on SE Third Street in Gresham; and on September 26, 2008, he robbed the Unitus Community Credit Union on SE Washington Street in Portland. Judge Mosman ordered Bennett to pay full restitution to the victim banks, in the amount of $14,145.98.
This case stemmed from an investigation by the Federal Bureau of Investigation, with invaluable cooperation and coordination from several local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorneys Craig Gabriel and Stacie Beckerman.
Justice Department Announces Fair Housing Settlement with Oregon DeveloperRead the Press Release
PORTLAND, Ore. – The Justice Department announced today that Oregon developer David Montagne and others affiliated with him have agreed to pay $80,000 and remove accessibility barriers at Gateway Village, a 275 unit apartment complex in Salem, Oregon, to settle a lawsuit alleging that they had violated the Fair Housing Act by building the complex with steps and other features that made it inaccessible to persons with disabilities.
Under the terms of the parties’ agreement, Montagne and the other developers, Montagne Development Company, Gateway II LLC, Dav II Investment Group LLC and William Jones, must take extensive actions to make the complex accessible to persons with disabilities. These corrective actions include removing steps from sidewalks, widening interior doorways, reducing threshold heights, replacing excessively sloped portions of sidewalks, and installing properly sloped curb ramps to allow persons with disabilities to access the sidewalks from the parking areas. In addition, these defendants will pay $48,000 to the Fair Housing Council of Oregon, whose investigation revealed the violations and which intervened in the United States’ lawsuit, and $32,000 to establish a settlement fund for the purpose of compensating disabled individuals impacted by the accessibility violations. This settlement does not resolve the entire lawsuit. The case continues against the defendant that provided design and engineering services for Gateway Village, Multi/Tech Engineering.
“The Fair Housing Act ensures that persons with disabilities do not face unnecessary barriers to access to housing of their choice and are able to make full use of that housing,” said Eric Halperin, Senior Counsel and Special Counsel for Fair Lending in the Civil Rights Division. “The Justice Department is strongly committed to the enforcement of the fair housing laws that protect the rights of persons with disabilities to have equal opportunities to enjoy the housing of their choice.”
“Accessible housing is a fundamental protection afforded by the Fair Housing Act,” stated U.S. Attorney for the District of Oregon, S. Amanda Marshall. “I am committed to working with the Fair Housing Council of Oregon and our federal, state, and local partners to ensure Oregonians have accessible housing choices in accordance with federal law.”
The lawsuit, filed in September 2011, arose as a result of a complaint filed by the Fair Housing Council of Oregon with the U.S. Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and referred the matter to the Justice Department.
“Having accessible features in an apartment complex is not just a legal requirement. These features are essential for people with disabilities to live their lives fully and independently,” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and the Justice Department are committed to ensuring that housing developers meet the accessibility requirements of the Fair Housing Act.”
"Home is our safe harbor; the place where we nurture our family and our dreams. People with disabilities deserve the same opportunities as everyone else to access a home of their choice. We believe that this settlement helps makes Gateway Apartments a more inclusive community and also helps Oregonians to understand the importance of removing physical barriers that limit the dreams of people with disabilities0." Pegge McGuire, Executive Director, Fair Housing Council of Oregon.
Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement. Persons who believe they were subjected to unlawful discrimination at Gateway Village either when they lived there or considered living there should contact the Justice Department toll-free at 1-800-896-7743 mailbox # 9993 or e-mail the Justice Department at [email protected].
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Line at 1-800-896-7743, e-mail the Justice Department at [email protected] contact HUD at 1-800-669-9777.
For more information, please see the attached order Here
Defendant Sentenced for Distributing Child Pornography and Destroying EvidenceRead the Press Release
Co-Defendant Pleads Guilty to Assisting with Destroying EvidenceEUGENE, Ore. – Timothy McCarty, 43, of Eugene, Oregon, was sentenced to 78 months in prison and 5 years of supervised release for distributing child pornography and destroying evidence. His co-defendant, Donna Giovenco, 46, also of Eugene, Oregon, pleaded guilty to misprision of a felony for her role in the destruction of evidence.
According to the government’s sentencing memorandum, McCarty distributed child pornography to an undercover agent in Canada. Homeland Security Investigations (HSI) began an investigation, and in an attempt to identify where McCarty was living, agents interviewed his co-defendant and former roommate, Giovenco. During the interview, agents disclosed to Giovenco that McCarty was suspected of distributing child pornography. Despite advising Giovenco to keep the investigation quiet, she promptly reached out to McCarty’s family and told them agents were looking for McCarty.
At Giovenco’s request, McCarty met with her to discuss the matter. Prior to arriving at the meeting, McCarty was seen in surveillance video dumping a bag in the dumpster. After the meeting, the video shows Giovenco driving McCarty to the dumpster were he retrieves the bag and smashes it. They then drive off. The bag contained McCarty’s hard drive, which was eventually buried in an unknown location and has not been recovered.
During her change of plea, Giovenco admitted that she assisted McCarty with disposing of a hard drive believed to contain images of child pornography and other evidence of distribution of child pornography.
Sentencing for Giovenco is set for July 29, 2013 at 11:00 a.m. before Chief U.S. District Judge Ann Aiken. The maximum sentence is three (3) years imprisonment, a fine of $250,000, one (1) year of supervised release, and a $100 fee assessment.
This investigation was conducted by the Department of Homeland Security, Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Amy E. Potter.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s
Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Caregiver Pleads Guilty to FraudRead the Press Release
PORTLAND, Ore. – A caregiver who concealed the death of an elderly man in her care by burying his body, has pleaded guilty to the theft of more than $200,000 in Social Security retirement benefits paid on his behalf. Carel June Cody, 47, of Cottage Grove, pleaded guilty in federal court this morning to bank fraud, theft of government funds, and aggravated identity theft. Cody admitted stealing the benefits since 1996, forging the man’s signature on checks payable to herself, and lying to a federal agent to conceal the man’s death. Cody has remained in custody since her arrest in May 2012. Sentencing is scheduled for July 29, 2013, at 9:00 a.m.
According to documents filed by the government, Cody was the caregiver for John Arnold when he died sometime between 1994 and 1996. Instead of alerting authorities, Cody enlisted the help of others to bury his body on private property and conceal his death. Since that time, she has been stealing Arnold’s Social Security benefits. The investigation regarding the death of Mr. Arnold was conducted by the Douglas County Sheriff’s Office, and to date no charges have been brought against Cody related to the manner of Mr. Arnold’s death or the disposal of his body.
The plea agreement anticipates that Cody’s sentencing guideline range will be 21-27 months in prison, in addition to the 24-month mandatory prison sentence for aggravated identity theft. The government will be seeking the maximum sentence under the sentencing guidelines. The plea agreement also requires Cody to pay $203,528 in restitution including relinquishing her federal retirement account of approximately $36,000 to the government to be applied towards her restitution obligation.
Cody’s husband Ernest Cook pleaded guilty to receiving stolen property and is scheduled to be sentenced July 30, 2013, at 10:00 a.m.
The case was investigated by the Social Security Administration Office of Inspector General, Office of Investigations, the Douglas County Sheriff’s Office, and the Roseburg Police Department, and is being prosecuted by Special Assistant United States Attorney Helen L. Cooper, as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office.
Southern Oregon Conspirators Indicted in Scheme to Defraud Hundreds of VictimsRead the Press Release
MEDFORD, Ore. – Robert Powelson, 30, Eduardo Navarro, 24, Dallas Tedford, 32, Kayla Strange, 23, and Lana Marshall, 29, all of Medford, Oregon , were indicted by a federal grand jury. They were all charged with mail theft, aggravated identity theft, bank fraud and conspiracy to commit mail theft, and bank and mail fraud. The charges involve the theft of mail from over 800 victims from the Medford, Oregon area during a seven month period beginning in September 2012 and include a scheme for using the victim’s stolen personal identity to defraud banks and local businesses. Navarro and Tedford are currently in custody. Arrest warrants have been issued for Powelson, Strange, and Marshall and anyone with information about their whereabouts is requested to contact the Medford Police Department or their nearest law enforcement agency.
For more information, please see the attached Indictment Here
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty. If convicted, the sentences range from maximum sentences of 5 to 30 years in prison, with a mandatory minimum sentence of two years for an aggravated identity theft conviction.
The U.S. Attorney’s Office is working with the U.S. Postal Inspection Service and the Medford Police Department in the investigation and prosecution of this case.
Milwaukie Man Sentenced to 48 Months in Federal Prison for Aggravated Identity Theft, Wire Fraud, and BurglaryRead the Press Release
PORTLAND, Ore. – U.S. District Judge Anna J. Brown today sentenced Bradley Lawrence Berg, 42, of Milwaukie, Oregon, to 48 months in prison for aggravated identity theft, wire fraud, and burglary of a federally insured credit union. Berg also was ordered to pay $45,000 in restitution. Berg committed this latest offense while he was on supervised release after being sentenced to seventy-one months in federal prison for felon in possession of a firearm in 2001.
The Clackamas County Sheriff’s Office began investigating a burglary of the Oregonians Federal Credit Union in Milwaukie, Oregon, after employees discovered a roof-top entry had been made during the night of October 7, 2010. Deputies discovered the ATM had been tampered with and the keypad to the vault door had been removed. A used bandage was seized from the crawl space next to the ATM and submitted to the Oregon State Police Crime Lab which determined that Berg’s DNA was on the bandage.
Sometime between November 5, 2010 and November 8, 2010, and again on December 6, 2010, Qwest Communications (now Century Link Communications, Inc.) experienced break-ins to work vans that were stored behind security fencing. Very expensive fiber optic equipment was missing and eventually sold on eBay internet sites.
The Clackamas County Sheriff’s Office continued to investigate additional roof-top burglaries at a Clackamas Office Depot store on November 20, 2010 and December 12, 2010, and recovered a tool with Berg’s name on it during the investigation. Berg was later arrested inside a stolen auto in North Portland, on December 26, 2010, when officers responded to a silent alarm and found Berg breathing heavily while pretending to be asleep in the stolen car.
The investigation showed that Berg had instructed his girlfriend to sell stolen merchandise on eBay. A search warrant was executed on Berg’s residence and his storage locker, discovering identity theft equipment, personal information of others, PayPal checks, counterfeit social security cards, and drivers licenses. Upon discovery of the counterfeit documents, the U.S. Secret Service joined the investigation. The defendant later admitted that he sold a fiber fusion splicer for $8,600 to an electrical firm in LaGrange Kentucky, by advertising it on eBay, and collecting wire transferred funds via his PayPal account.
Berg’s girlfriend, Kristin Danielle Burke, 41, was prosecuted in Clackamas County Circuit Court. Berg is expected to face state court charges in Clackamas and Multnomah Counties for property crimes committed there.
The case was investigated by the Clackamas County Sheriff’s Office and the U.S. Secret Service. Assistant U. S. Attorney John Haub prosecuted the case.
Former Real Estate Broker and Former Police Captain Sentenced in Multi-Million Dollar FraudRead the Press Release
EUGENE, Ore. – Chief U.S. District Judge Ann Aiken sentenced Tamara (Tami) Sawyer, 49, and Kevin Sawyer, 60, of Bend, Oregon, today for their roles in an investment fraud scheme that cost investors almost $6 million. Defendant Tami Sawyer, a former real estate broker, was sentenced to 108 months in federal prison for a litany of charges, including conspiracy, wire fraud, bank fraud, making false statements to financial institutions, and money laundering. Defendant Kevin Sawyer, a former Bend Police Captain, was sentenced to 27 months for making false statements to financial institutions. The defendants were also ordered to pay $5,820,307.55 in restitution to the victims of the fraud. At the conclusion of the sentencing hearing, both defendants were remanded to custody of the U.S. Marshal to begin serving their sentence with the Bureau of Prisons. Upon release from their prison terms, both defendants are ordered to five years of supervised release.
Defendants ran a fraudulent real estate investment scheme through their company Starboard LLC. They enticed investors by falsely promising high rates of return, typically 12 percent, and secured the investments with promissory notes. Rather than investing the money as promised, defendants used it to pay other investors, to fund their other companies and ventures, and to pay personal expenses, including cars, credit cards, and the construction of their $2 million vacation home in Mexico. As a result of defendants’ fraud, investors and banks lost almost $6 million.
“Lying, cheating, and stealing never pays in the end,” commented U.S. Attorney Amanda Marshall. “Individuals like these defendants, who use positions of wealth, prominence, or trust to further their scheme, rob others of more than their hard-earned money and financial independence. They also rob their victims of their ability to trust others, isolating them in society. This behavior cannot and will not be tolerated as shown by today’s sentence.”
“The Sawyers used their standing in the community to sell their investors on what was supposed to be a golden opportunity. However, it was an opportunity tarnished by greed,” said Greg Fowler, Special Agent in Charge of the FBI in Oregon. “More than 30 victims have paid the price for that greed, but, today, they can be assured that the court system has delivered on a promise of justice.”
“The IRS is committed to identifying fraudsters who prey on others in order to satisfy their own greed and to working with our law-enforcement partners to shut them down. Hardworking people entrusted Tamara Sawyer with their savings and financial futures, and she violated that trust for her own financial gain,” said Steven J. Bellis, Assistant Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “This sentencing is a warning that being trusted with money from investors carries a duty to the highest standard of conduct, and that willfully ignoring that duty carries severe consequences.”
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorneys Scott E. Bradford and Amy E. Potter.
Nationwide Oxycodone Trafficking Ring DismantledRead the Press Release
18 Defendants from Four States ConvictedPORTLAND, Ore. – Kingsley Iyare Osemwengie, 27, of Las Vegas, Nevada, was sentenced by U.S. District Senior Judge Ancer L. Haggerty today to 210 months in prison. Osemwengie pled guilty in December of 2012 to a three-count indictment charging him with conspiracy to distribute oxycodone, conspiracy to launder drug proceeds, and conspiracy to violate the travel act, for his pivotal role in an oxycodone distribution ring that involved drug trafficking and money laundering activity in Massachusetts, Nevada, Texas, Florida, Georgia, Utah, Colorado, New York, Washington, Alaska, Pennsylvania, and Oregon, between January 2008 and his arrest in March of 2011. He became the 18th defendant convicted in this case. This investigation, dubbed Operation Trick or Treat, was the largest oxycodone trafficking case in the history of the District of Oregon based on the sheer volume of oxycodone distributed, the geographic scope of the conspiracy, and the enormous profits generated for the benefit of the defendants.
“This is the largest oxycodone trafficking conspiracy ever prosecuted in Oregon, and one of the largest in the nation,” said United States Attorney Amanda Marshall. “Stemming the flow of prescription opiates is a crucial feature of our drug enforcement strategy, as addiction from these drugs and the conversion to heroin use is a national epidemic. I commend the exceptional agency partnerships that brought these conspirators to justice. In addition to the sentence in this case, the court forfeited more than $600,000 in drug proceeds. Taking the profit out of drug trafficking is another key part of our deterrence strategy.”
Oxycodone is a Schedule II drug under the federal Controlled Substances Act. As a prescription-only product, this powerful pain reliever from the opioid family carries a high risk of abuse, addiction, and overdose, including death. In 2011, at least 93 overdose deaths in Oregon were caused by oxycodone and its cousin painkiller hydrocodone. People who become addicted to oxycodone often switch to the opiate heroin that is much cheaper and more easily obtainable on the street. This frequently leads to heroin addiction, overdose, and occasionally death.
While on supervised release for two prior federal felonies involving fraud, Osemwengie, operating from Las Vegas, Nevada, and associate Olubenga Temitope Badamosi, 34, a Nigerian citizen living in Milwaukie, Oregon, arranged for tens of thousands of oxycodone pills, acquired in Miami and Las Vegas, to be distributed to customers all over the United States. They used call girls and couriers to transport oxycodone and money across the country. Investigators identified 774 airplane flights for 71 different couriers to 40 different American cities at a total cost of $96,000 during the life of the conspiracy. At other times, drugs and money were transported by commercial carrier or through the mail. Over 10,000 oxycodone pills and 1,900 counterfeit oxycodone pills were seized by investigators in this case. A single 80 milligram oxycodone pill sold for a range of $30 wholesale to $80 retail.
Osemwengie, Badamosi, and other conspirators netted millions of dollars of drug proceeds that allowed them to live opulent lifestyles. Between January of 2008 and October of 2010, cash deposits totaling $1,218,000 were made into six bank accounts controlled by Osemwengie. He created several shell companies to disguise the source of his income and maintained luxury residences in Las Vegas, Nevada, and Miami, Florida, one of which carried a $10,000 per month rent. Meanwhile, he drove high-end automobiles including two Mercedes Benzes and four Bentleys, one of which he purchased with $118,500 in cash. Badamosi acquired expensive jewelry appraised at $114,000, including two flashy, diamond-encrusted watches containing 800 and 1,000 diamonds, respectively. Defendant Allotey owned a diamond-studded pendant appraised at $32,000. Investigators seized and forfeited all of this jewelry, along with over $133,000 in cash, bank accounts totaling over $100,000, six (6) handguns, and nine (9) vehicles, including two Bentleys and four Mercedes Benzes. The dollar value of the forfeited assets exceeds $600,000.
The following defendants have previously been sentenced for oxycodone conspiracy charges arising out of this case:
- Badamosi, 34, of Milwaukie, OR, sentenced to 87 months prison;
- David George Hollins II, 29, of Portland, OR, sentenced to 41 months prison;
- Hung Van Pham, 32, of Vancouver, WA, sentenced to 27 months prison;
- Shaun Wesley Tyler, 32, of Las Vegas, NV, sentenced to 37 months prison;
- Marcus Charles Albert, 33, of Las Vegas, NV, sentenced to 63 months prison;
- Melvin A. Allotey, 29, of Las Vegas, NV, sentenced to 48 months prison;
- Mei Lynn Pham, 32, of Portland, OR, sentenced to 33 months prison;
- Adam Garrott Lewis, 28, of Portland, OR, sentenced to 37 months prison;
- Leamon Dlloyd Madden, 28, of Portland, OR, sentenced to 37 months prison;
- Isaiah Griffith, 28, of Portland, OR, sentenced to 30 months prison;
- Heather O'Rourke, 22, of Portland, OR, sentenced to 27 months prison;
- Christopher Gene Buckland, 35, of Portland, OR, sentenced to 30 months prison;
- Heath Leroy Bloodgood, 42, of Portland, OR, sentenced to 37 months prison;
- Thanh Quoc Nguyen, 32, of Portland, OR, sentenced to 41 months prison; and,
- Lee Justin Wells, 34, of Tacoma, WA, sentenced to 41 months prison.
Two other codefendants have pled guilty to related oxycodone conspiracy charges and are scheduled for sentencing before Judge Haggerty in Portland:
- Reina Tomiko Nakachi, 27, of Las Vegas, NV, sentencing on June 10, 2013, and,
- Sarah Nilsen, 26, of Miami, FL, sentencing on June 17, 2013.
“Opiate addiction is the center of the storm which leaves behind a path of devastation,” said DEA Special Agent in Charge Matthew G. Barnes. “This was a sophisticated drug trafficking organization that diverted legitimate medicine into the black market across the United States. The sheer greed of these 18 defendants led them to live lavish lifestyles while ruining many lives. DEA and our law enforcement partners are determined to continue to aggressively pursue those who are responsible for the high rate of prescription drug abuse in Oregon.”
“Prescriptions such as oxycodone used illegally can destroy lives—especially in young people who may use it as a springboard to other illegal narcotics,” stated Portland Police Chief Mike Reese. “The successful prosecution of large-scale distribution and trafficking cases such as this will help stop the flow of illegal oxycodone into the hands of our children and our community.”
“Today’s prison sentence is a reminder of the serious consequences drug traffickers face for bringing illicit drugs into our communities,” said Bradford Bench, Special Agent in Charge of ICE Homeland Security Investigations (HSI) Seattle. “When you’re talking about a dangerous and highly addictive drug that ruins lives and fosters further crime with illicit profits, the risks to public safety are real. HSI remains committed to dismantling the international drug trade while ensuring that those involved don’t benefit financially.”
“These sentencings are a reminder that justice will be served on individuals who put the safety of our community at risk by selling and profiting from the illegal sale of the dangerous drug oxycodone,” said Tamera D. Cantu, Assistant Special Agent of IRS Criminal Investigation in Seattle. “IRS CI and our law enforcement partners are committed to dismantling similar drug trafficking organizations.”
This case was initiated in June of 2010 by the Oregon HIDTA Interdiction Task Force (HIT) who partnered with the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Internal Revenue Service (IRS), and the Portland Police Bureau. Additional law enforcement assistance was provided by the U.S. Marshals, Oregon National Guard, Las Vegas Metropolitan Police Department, Ft. Lauderdale Police Department, Broward County Sheriffs Office, Clackamas County Sheriffs Office, Westside Interagency Narcotics Task Force (WIN), and the Clark-Vancouver Drug Task Force. Assistant U.S. Attorneys Geoffrey A. Barrow and John F. Deits, prosecuted the criminal case. Assistant U.S. Attorneys Leslie Westphal and AnneMarie Sgarlata handled the asset forfeitures in the case.
This case was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is a federally-funded program established in 1982 whose mission is to support comprehensive, multi-agency investigations designed to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations. This case was also an investigation under the Oregon High Intensity Drug Trafficking Area (HIDTA) program, sponsored by the White House's Office of National Drug Control Policy (ONDCP). HIDTA is a counterdrug grant program that provides funding, coordination, and intelligence resources to multi-agency drug enforcement task forces seeking to disrupt or dismantle local, multi-state, and international drug trafficking and money laundering organizations.
Former Portland Police Officer Sentenced to Five Years in Child Porn CaseRead the Press Release
PORTLAND, Ore. - A former Portland Police Bureau Officer was sentenced to five years in federal court today for receiving child pornography. Scott Edward Elliott, 51, pleaded guilty, admitting that in the fall of 2009, he received several images of child sexual abuse during a yahoo chat session. Several of those images involved infants, and children under the age of 8 subjected to masochistic sexual contact by adult males. According to the prosecutor, Assistant U. S. Attorney Kelly Zusman, Elliott’s chat logs reveal that he “enthusiastically” received the images, and asked for more.
Elliott was arrested in March of 2011 as the result of an on-line, undercover operation in which a Multnomah County detective posed as an underage girl in a romance chat room. Elliott spent several months engaging in online sexual conversations with the detective posing as the girl, and he encouraged her to watch him on a webcam and to sexually stimulate herself while she did so. Eventually, Elliott tried to arrange a meeting, and he urged the girl to send him a nude photo of herself. He was arrested shortly thereafter, and officers discovered a thumb drive in his pocket that contained images of child sexual abuse. State charges were eventually dismissed in lieu of the federal prosecution. Elliott voluntarily agreed to resign from the Portland Police Bureau, and he has remained in federal custody since his arrest. In imposing sentence, Judge Anna J. Brown noted Elliott’s “long, decorated service as a Portland officer,” and commented that he had done everything he could to “atone” for his conduct. Elliott will serve a five-year term of supervised release after his prison term, and will be required to register as a sex offender.
The case was investigated by Multnomah County Sheriff’s Office and the INTERCEPT Task Force. Assistant U.S. Attorney Kelly Zusman handled the prosecution of the case.
Eugene Ecstasy Dealer Sentenced to Four Years in PrisonRead the Press Release
EUGENE, Ore. – Walter Thomas Swartz, 29, of Eugene, Oregon, was sentenced On April 23, 2013, to 48 months in federal prison after pleading guilty to possession with intent to distribute methylenedioxymethamphetamine, more commonly known as ecstasy or MDMA, and using the mail to distribute proceeds of that unlawful activity.
In April 2012, investigators served a search warrant at Swartz’ home in Eugene and seized two and half pounds of ecstasy powder, 24 ecstasy pills, three pounds of dry psilocybin mushrooms, 27 grams of cocaine, four and half pounds of marijuana, a shotgun, a pistol and a mailed package containing $16,000 in cash.
The return address on the package containing the $16,000 led investigators to a man in Colorado who Swartz met ten years earlier while both attended college in Oregon. The man admitted mailing the $16,000 and mailing up to $10,000 in cash on at least five previous occasions, all at Swartz’ direction. The cash involved in the transactions was forfeited. Swartz is a 2007 graduate of the University of Oregon, with a Bachelor degree in Environmental Science and Environmental Geography.
Chief United States District Judge Ann Aiken presided over the case and during sentencing reprimanded defendant Swartz for creating more casualties for society by distributing illegal drugs. She also ordered Swartz to perform 300 hours of community service after completion of his four year prison sentence.
The U.S. Postal Inspection Service, Homeland Security Investigations and Drug Enforcement Administration worked with state and local police on the investigation. Assistant U.S. Attorney William “Bud” Fitzgerald prosecuted the case.
Portland Man Sentenced on Drug and Mortgage Fraud ChargesRead the Press Release
PORTLAND, Ore. – On Wednesday, April 17, 2012, Oregon District Judge Michael W. Mosman sentenced Tu Ngoc Tran, 38, of Portland, Oregon, to 63 months in prison following his conviction in a jury trial on drug and wire fraud charges on December 7, 2012. The federal jury convicted Tran of one count of conspiracy to manufacture and distribute marijuana, two counts of manufacturing marijuana, one count of making a false statement on a loan application and one count of wire fraud. He was ordered to pay $341,112.83 in restitution to the victim lender, as well as a money judgment of $346,859.86.
Three other conspirators pleaded guilty to related offenses in this case. Minhthy Ngoc Tran pleaded guilty to conspiracy to manufacture or distribute marijuana and conspiracy to commit wire fraud. Huy Anh Nguyen pleaded guilty to manufacturing marijuana and conspiracy to commit wire fraud. Kiet Anh Nguyen pleaded guilty to conspiracy to commit bank larceny, a misdemeanor.
In late 2010, law enforcement officers from the Multnomah County Sheriff’s Office Special Investigations Unit (SIU) and the Clark Skamania Task Force (CSTF) in the Western District of Washington received an anonymous letter describing Tran’s involvement in illegal marijuana trafficking and mortgage fraud in Oregon and Washington. The letter described Tran’s use of two men as “straw buyers” to secure a loan of $350,000 that he used to buy a residence in Portland where he built a sophisticated marijuana production and distribution site.
In late December of 2010 and early January of 2011, members of the Multnomah County Sheriff’s Office, the Clark Skamania Drug Task Force, the Federal Bureau of Investigation (FBI), and the Regional Organized Crime Narcotics Task Force executed search warrants at four residences in Oregon and Washington used as illegal marijuana grow operations by Tran and his associates. Officers found a sophisticated marijuana grow room with 225 marijuana plants, extensive indoor growing and packaging equipment, and a money counter at Tran’s residence. They seized more than 50 pounds of processed marijuana with an estimated value of $160,000. At the Vancouver, Washington residence owned by co-defendant Nguyen, officers found another sophisticated marijuana growing site operated by Tran with 238 marijuana plants.
Tran initially claimed to be growing marijuana for 10 people under the Oregon Medical Marijuana Program (OMMP). However, an OMMP representative advised law enforcement that Tran was not registered to grow marijuana for anyone other than himself and that the locations he used were not registered with OMMP as authorized marijuana grow sites.
“This case is another example of criminals exploiting state medical marijuana programs to disguise drug trafficking and money laundering operations,” said U.S. Attorney Amanda Marshall. “This defendant concealed his illegal drug cultivation and distribution business behind state medical marijuana cards. He concealed his illegal proceeds in fraudulent real estate transactions. The jury who heard this case saw through those lies and concluded the defendant is a drug dealer and a fraud. The sentencing judge imposed an appropriate sentence for his illegal conduct.”
This case was investigated by the Multnomah County Sheriff’s Office, the Regional Organized Crime Narcotics Task Force, the Clark Skamania Drug Task Force, and the Federal Bureau of Investigation (FBI). The case was prosecuted by Assistant U. S. Attorneys Jennifer Martin, Robert Nesler and AnneMarie Sgarlata.
Portland Man Defrauds Investors Out of $6.4 MillionRead the Press Release
PORTLAND, Ore. – Yusaf Jawed, 44, Portland, Oregon, entered a guilty plea in federal court to five counts of mail fraud and 12 counts of wire fraud in connection with an investment fraud scheme he orchestrated in Oregon, Washington, California, and other states. Sentencing has been scheduled for June 21, 2013 at 10:30 a.m.
The 17-count information alleges that from February 2008 through September 2009, Jawed raised approximately $6.4 million from investors in a hedge fund he controlled called the Alpha Qualified Fund. Contrary to representations by Jawed, very little of the money was actually invested and most of the funds were diverted to unrelated purposes such as payment of finders’ fees and commissions, repayment of loans, payment of office expenses, and payment to prior investors.
Each count of mail and wire fraud carries with it a maximum sentence of 20 years, a fine of $250,000 and five years of supervised release. As part of Jawed’s plea agreement, both parties will recommend a period of 78 months in prison. In addition, Jawed agreed to $6.4 million in forfeiture, to the extent assets exist, and to make restitution to investors as ordered by the court.
The case was investigated by the Federal Bureau of Investigation, with the assistance of the Securities and Exchange Commission, which also filed a civil lawsuit against Jawed and others associated with him. The case was prosecuted by Senior Litigation Counsel and Assistant U. S. Attorney Allan M. Garten.
Captain of a Maltese Freighter Pleads Guilty in Federal Court to Operating a Vessel Under the InfluenceRead the Press Release
PORTLAND, Ore. - The United States Attorney’s Office, District of Oregon, announces that the Vessel Master of the Adfines East plead guilty to operating a commercial vessel under the influence of alcohol in the Port of Portland. Today, Valeriy Sharykin, 62, a Russian citizen, and captain of a Maltese freighter plead guilty before U.S. Magistrate John V. Acosta.
Defendant Sharykin was charged by information with negligent operation of a commercial vessel, a class A misdemeanor. Sharykin was the licensed Vessel Master on the Adfines East, a 602 foot commercial vessel, weighing over 24,000 gross tons and sailing under the flag of Malta. While conducting an official inspection of the vessel on April 8, 2013, Coast Guard Port State Control examiners from Marine Safety Unit Portland suspected that defendant, the Master of the vessel, was intoxicated based on their observations of his behavior and smell. Coast Guard law enforcement personnel from Station Portland and Coast Guard Investigative Service responded, used a breathalyzer and took the vessel Master into custody with a Blood Alcohol Content (BAC) that was over four times the legal limit.
In effort to eliminate sub-standard ships from U.S. waters, U.S. Coast Guard Port State control examiners board foreign vessels entering U.S. waters on a daily basis. Substandard vessels are those in which the crew, hull, machinery, or equipment such as life-saving, firefighting, or pollution prevention are substantially below the standards required by U.S. law or international convention. It's the U.S. Coast Guard's responsibility to remain vigilant and deter non-compliant vessels from operating in U.S. Waters.
U.S. Attorney Amanda Marshall, said, “Operating a 24,000 ton, 602 foot ship with a blood alcohol level more than four times above the limit is beyond reckless, it’s potentially deadly. The safety of people, property, and the environment on the Columbia River and all US waterways is a top priority for this office. Those who endanger safety in commercial shipping and maritime will be found and prosecuted. I want to thank the Coast Guard for their prompt and professional investigation of this matter bringing this defendant to justice.”
"The Columbia River is a vital transportation mode, source of economic prosperity for the entire Pacific Northwest and an environmental treasure which the Coast Guard is committed to protecting,"said Capt. Bruce Jones, Sector Columbia River Commander. "We will remain vigilant in ensuring those who operate vessels in our waters do so responsibly and in compliance with safety, security and environmental laws. I commend our young but very competent and dedicated Petty Officers for their diligence and thoroughness in the examination of the Adfines East which led to today's arrest."
Defendant was sentenced to two (2) years of probation, including a condition that the defendant is prohibited from sailing, in any capacity, waters subject to the jurisdiction of the United States. Defendant also agreed to pay a $1,000 fine to the court and $1,000 to a community alcohol treatment facility.
This investigation was conducted by the United States Coast Guard Investigative Service, Coast Guard District 13. The case is being prosecuted by Assistant U.S. Attorney Michelle Holman Kerin.
Defendant Convicted of Heroin Trafficking & Illegal Re Entry Sentenced to 17.5 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – Jose Lizarraras-Chacon, 38, of Nayarit, Mexico, was sentenced today by U.S. District Judge Marco A. Hernandez to 210 months (17.5 years) in prison for heroin-trafficking and illegal reentry. During the fall of 2011, the Portland Police Bureau received information regarding a husband and wife team selling large quantities of heroin. Defendant and his wife, Maria Gonzalez-Torres. (co-defendant) fielded phone call orders from customers for heroin, and then would make deliveries throughout the Portland metro area, often accompanied by their children. Earlier in 2011, the St. Helens Police Department investigated this same husband-wife team, and that evidence was charged in the federal indictment as part of the yearlong conspiracy to distribute heroin.
On November 29, 2011, officers with the Portland Police Bureau’s Drugs and Vice Division (DVD) arranged for a controlled purchase of heroin from this duo. Co-defendant Gonzalez-Torres answered the call, made the deal, and indicated they would be on their way to deliver shortly. Surveillance officers observed defendant leave their apartment carrying a baby in a car seat and enter one of the family vehicles. Gonzalez-Torres followed her husband into their vehicle, along with two other children (ages 7 and 4). Officers stopped the car as it was traveling towards the agreed-upon delivery location.
During the traffic stop, a female officer conducted a pat-down search of Gonzalez-Torres and located approximately five ounces of heroin concealed in her bra. There was also over $300 in the diaper bag. Officers conducted a search of the family’s apartment on East Burnside at 179th, and seized over $84,000 in U.S. currency stashed all over the residence. Agents also seized approximately 470 grams of heroin hidden within a diaper genie and a .45 caliber semi-automatic firearm in a hall closet. Gonzalez-Torres admitted that she had been involved in her husband’s heroin business and had not held legitimate employment for four years. She explained that she received $1100 per month in public benefits. When asked about all the cash in her apartment, she said that she and her husband were saving money to build a home in Mexico.
In 2010, defendant was convicted of unlawful delivery of heroin in Clackamas County, after which he was deported to Mexico. He returned to the United States illegally, and continued to distribute heroin. This case was investigated by the Portland Police Bureau, the St. Helen’s Police Department, the DEA, and the U.S. Department of Agriculture Office of Inspector General. The case was prosecuted by Assistant U. S. Attorney Leah K. Bolstad.
Warm Springs Man Pleads Guilty in Federal Court to Domestic Assault by a Habitual OffenderRead the Press Release
Victim Ends Up In Hospital on Three Separate Occasions After Violent Attacks by Domestic PartnerPORTLAND, Ore. – Casey Marcus Lillie, 26, of the Warm Springs Indian Reservation, pled guilty today before U.S. District Judge Michael W. Mosman to one count of domestic assault by an habitual offender. The maximum sentence for domestic assault by an habitual offender is ten years in prison, a fine of $250,000, and three years of supervised release. Sentencing is scheduled for June 20, 2013. Lillie is currently in the custody of the United States Marshals Service.
“The U.S. Attorney’s Office is committed to building and sustaining safe and secure Native communities across Oregon,” said Amanda Marshall, United States Attorney for the District of Oregon. “Consistent with enhancing the prosecution of domestic violence offenders in Indian Country, this prosecution represents a step in the right direction of holding domestic violence offenders accountable.”
According to the prosecutor’s statements in court, on December 12, 2012, Lillie assaulted a woman with whom he had been cohabitating as an intimate partner. Lillie struck the victim with his hands and kicked her in the face with his feet. The assault caused extensive bruising to the victim’s face. The defendant battered the victim so severely that one of her eyes was temporarily swollen shut. The victim’s injuries required her to be transported to Mt. View Hospital in Madras, Oregon, for medical attention.
On two separate prior occasions, in November 2011 and March 2012, the defendant was previously convicted in the Warm Springs Tribal Court for assault and battery, as well as abduction, against the same victim. Both of those prior assaults also resulted in the victim being transported to Mt. View Hospital for treatment of her injuries.
The case was investigated by the Warm Springs Police Department and the FBI’s Bend, Oregon office. Assistant U.S. Attorney Craig Gabriel is prosecuting the case.
Three Family Members Sentenced for Stealing $3 Million from Armored CarRead the Press Release
After Decades of Living Off of Stolen Funds, Husband, Wife and Son Appear in Federal Court for SentencingPORTLAND, Ore. - On Wednesday, March 20, 2013, Archie Cabello, 65, Portland, Oregon, was sentenced by the Honorable Robert E. Jones in United States District Court, to twenty years in federal prison for his role in stealing $3 million from an Oregon Armored Services armored car he was driving on December 6, 2005. Cabello had previously pleaded guilty to conspiracy to commit bank larceny, possession of stolen bank funds, making false statements on credit applications, making and subscribing to a false income tax return, and money laundering.
Judge Jones also sentenced Cabello’s wife, Marian Cabello, age 60 and his son Vincent Cabello, 40, to fifteen months in prison each for their roles in the armored car theft scheme. Marian and Vincent Cabello had both previously pleaded guilty to conspiracy to commit bank fraud and conspiracy to commit money laundering. The three were ordered to pay restitution in the amount of $3,755,000 to the victims of the theft.
“The Cabello family spent many years planning and executing their scheme to steal from armored car businesses and banks,” said U.S. Attorney Amanda Marshall. “It is through the diligent efforts of our law enforcement partners, the FBI and the IRS, that these criminals were finally brought to justice.”
Archie Cabello had only very short periods of lawful employment since the late 1960s, and was persistently involved in theft and drug trafficking activity. Archie and Marian Cabello first stole $157,839 from an armored car in 1995 in Milwaukee, Wisconsin. Shortly thereafter, Archie Cabello recruited their son Vincent to participate in a scheme to commit another theft. In 1998, Vincent Cabello obtained employment as a vault guard in a commercial building. Thereafter, Archie and Vincent Cabello staged a heist in which Archie Cabello used a hat, a beard, and a BB gun as props and in which Vincent Cabello, posing as the victim, was hand and leg cuffed while Archie Cabello stole $730,000 in $20 bills. No one was charged in either the 1995 or the 1998 thefts.
The Cabellos moved to Portland in 1999, and Archie and Vincent Cabello got jobs with delivery or security companies. In early 2005, Archie Cabello left a better paying job in order to take a position with Oregon Armored Services as a driver of an armored truck. On December 6, 2005, Vincent Cabello received a call from Archie Cabello that they were going forward with their plan to steal money from the truck. Over seven million dollars in currency was on the armored car that day, including two shrink-wrapped bricks containing $1.5 million each in hundred dollar bills. Archie Cabello drove the armored car to a prearranged location and provided Vincent Cabello with access to the back of the truck. Vincent Cabello took the two shrink-wrapped bricks containing a total of $3 million. Archie Cabello then drove the armored truck several blocks away, handcuffed himself to the door, and flagged down a citizen to call the police. Meanwhile, Vincent Cabello drove the stolen money to a privately-owned safe deposit box company in Bellevue, Washington that Archie Cabello had rented.
Since December 2005, the three Cabellos spent about $1,000,000 of the stolen funds. They used more than 100 credit cards to pay living expenses, then used the stolen cash to pay their large credit card bills. Archie Cabello failed to report his $1.5 million share of the stolen funds on his 2005 income tax return. This omission resulted in additional taxes of over $500,000 owed by Archie Cabello to the IRS.
In February 2012, Vincent Cabello disclosed to the FBI and IRS the location of the remaining stolen money in Bellevue, Washington, as well as hiding places for money and keys to the safe-deposit box located in the Cabello home. Government agents seized nearly $2 million of the money the Cabellos had hidden in the safe deposit box and in consumer product containers modified with false bottoms.
“Most American families get by with hard work and sacrifice. The Cabellos, on the other hand, spent years scamming the system, stealing millions of dollars to pay their bills,” said Greg Fowler, Special Agent in Charge of the FBI. “Now, they are rightly being held accountable for their crimes thanks to the great partnership between the FBI and IRS.”
“Most criminals steal money because they want to spend money. The problem with spending stolen money is that it leaves a trail despite the criminal’s best efforts to hide their tracks,” said Steven J. Bellis, Assistant Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “The problem with leaving a trail, for criminals, is that the Special Agents of IRS Criminal Investigation excel at following the money and are committed to working with our law enforcement partners to ensure that criminals are apprehended and held responsible for their actions.”
Archie Cabello was first arrested in December 2010, released, and arrested again in February 2012 for violating the terms of his release. He has been in custody since that time.
The case was jointly investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation, and Assistant U.S. Attorneys Thomas Edmonds and Claire M. Fay prosecuted the case.
Drug Dealer Sentenced to 77 Months in Federal PrisonRead the Press Release
EUGENE, Ore. – On March 19, 2013, Demarcos Montel Wright, 33, of Springfield, Oregon, was sentenced by U.S. District Court Chief Judge Ann Aiken to 77 months in federal prison for possession with intent to distribute crack cocaine and felon in possession of a firearm. Upon his release from prison, Wright will be on supervised release for three years.
On March 13, 2012, Springfield Police Department detectives executed a search warrant on Wright’s person and his residence in Springfield, Oregon. Wright had a small amount of crack cocaine on his person. At Wright’s residence detectives located approximately one ounce of crack cocaine, scales and three pistols. One pistol was stolen and another had an extended capacity magazine. Wright admitted that he was involved in distributing cocaine. Wright was previously a member of the Gangster Disciples gang.
This case was investigated by the Springfield Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant U.S. Attorney Jeffrey S. Sweet.
Pendleton Man Sentenced to 21 Months in Federal Prison for Vehicular HomicideRead the Press Release
Vehicular Homicide Occurred on the Umatilla Indian ReservationPORTLAND, Ore. –Today, Roberto Medellin, 54, of Pendleton, was sentenced 21months in prison by U. S. District Judge Ancer L. Haggerty for vehicular homicide. On December 10, 2012, the defendant pled guilty to involuntary manslaughter. Judge Haggerty ordered the defendant to spend three years on supervised release after he is released from the Bureau of Prisons. As conditions of supervised release, the defendant must not possess or consume alcohol. Judge Haggerty ordered the defendant to surrender to the Bureau of Prisons on May 2, 2013.
“This case is another tragic reminder that drinking and driving kills,” stated U.S. Attorney Amanda Marshall. “Vehicular homicide is a serious crime with long lasting consequences for families and communities. My office will vigilantly prosecute these cases in Indian Country.”
According to the prosecutor’s statements in court, on May 14, 2012, on the Umatilla Indian Reservation, defendant Roberto Medellin was driving his jeep on a highway in which Misty Dawn Sheoships, a member of the White Mountain Apache Tribe, was a front seat passenger. Medellin’s vehicle went off the highway, crashed into a ditch, and Sheoships died as a result due to severe head and neck trauma. Witnesses called 911 to report the crash.
In a mirandized statement, Medellin said that he had been drinking earlier in the afternoon, prior to going out driving with Sheoships, and that he had fallen asleep at the wheel. He also said, in essence, that he knew he was too tired to continue driving and should have pulled over to rest. Medellin was taken to the hospital due to complaints of body stiffness and just under two hours following the crash, a hospital blood draw revealed that defendant’s blood alcohol content was still 0.096, which is in excess of the legal driving limit of 0.08.
The federal case was investigated by the Umatilla Tribal Police Department and the FBI’s office in Pendleton, Oregon. Assistant U. S. Attorney Craig Gabriel prosecuted the case.
Local Real Estate Professionals Sentenced for Wire FraudRead the Press Release
Geoffrey Montani and Kenneth Jones Sentenced for Submitting Fraudulent Mortgage Loan ApplicationsPORTLAND, Ore. – Geoffrey Montani, 36, and Kenneth Jones, 50, both of Portland, Oregon, were sentenced to 15 months in prison in separate hearings following their convictions for wire fraud in connection with a mortgage fraud scheme. Montani was sentenced by the Honorable Robert E. Jones on Friday March 15, 2013. Jones was sentenced by the Honorable Anna J. Brown on Thursday, March 7, 2013. In addition to the prison sentence, each was ordered to pay restitution in an amount exceeding $1.4 million dollars
In mid-2005 through April 2007, Montani and Jones bought and resold (“flipped”) houses in the Portland metropolitan area. Rather than sell these houses to real buyers in arms-length negotiations, the defendants, in 37 separate transactions, knowingly sold the houses to straw-buyers provided by another member of the scheme, Marty Folwick. Folwick was convicted in 2008 and sentenced to 63 months in prison.
The scheme, in essence, worked as follows: Montani and Jones purchased residential houses in the Portland area with money provided by Montani’s father, Stephen Montani, and other “hard money” investors. In some cases, remodeling was done on the house after purchase. Rather than listing the house for resale through a realtor or other traditional means, Montani and Jones contacted Folwick, told him they had a property for sale at a set price and solicited him to produce a straw-buyer for the property in exchange for a kickback following closing. These straw-buyers had no intent to live in the property or pay the monthly mortgage, but they allowed (or were duped into allowing) their name and credit score to be used on the mortgage application, on the false promise that they would become successful real estate investors. Once a straw-buyer was identified, a mortgage application was prepared by Montani and Jones or their associates for the straw-buyer to sign. Montani and Jones knew that each application contained false information and would be submitted to a lender for approval based on the false information in the application. In a number of cases, Montani and Jones created false supporting documentation for inclusion with the application. Once the mortgage loan was approved, the property was sold to the straw-buyer; thereafter Montani and Jones paid off the hard money loan and divided the significant profits between themselves and others. In every case, the property subsequently fell into foreclosure, causing losses to the mortgage lender. The losses on the 37 properties identified by the government for prosecution totaled $1.9 million dollars.
U. S. Attorney for the District of Oregon Amanda Marshall said, “Mortgage fraud committed during the housing bubble of 2005-2008 continues to impact the livability of our community. These convictions demonstrate that the Department of Justice remains committed to investigating and prosecuting those who are responsible for the damage done to our neighborhoods and financial institutions.”
The investigation was initiated by the Portland office of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Scott Erik Asphaug.
Newberg Man Arrested for Child Pornography OffensesRead the Press Release
Richard Tietjens Alleged to Have Amassed Thousands of Videos of Children Being Sexually AbusedPORTLAND, Ore. – Richard Tietjens, 62, of Newberg, was arrested and arraigned today before U.S. Magistrate Judge Paul Papak, on a federal indictment charging him with multiple counts of transportation and possession of child pornography. A grand jury returned the indictment earlier this week. The maximum penalty, if convicted, is up to 20 years of in prison, per count, for transporting child pornography, and up to 10 years in prison for possession of child pornography. The transportation charges also carry a mandatory minimum term of five years in prison.
Tietjens is charged with four counts of transportation of child pornography between July and August 2011. According to the indictment, Tietjens emailed child pornography to four yahoo email accounts between July and August 2011, using the email account [email protected], and possessed child pornography on December 12, 2011, the date law enforcement executed a search warrant at his residence.
According to statements at Tietjen’s arraignment, the Newberg Police Department seized a desktop computer with four hard drives from Tietjens’ residence in December 2011, and a forensic examination by the case agent revealed that the devices contained more than 10,000 images of child sex abuse, and more than 4,500 videos of children being sexually abused. According to the prosecutor, the Newberg Police also seized two servers with another 12 hard drives connected to them from Tietjens’ garage, which also contained child pornography. One of the servers was allegedly used to download child pornography using a peer-to-peer software program, and another server was unsecured and used by Tietjens and others to store files, including child pornography. The prosecutor stated that the two servers contained more than 15 terabytes of storage space. According to arguments at the hearing, Tietjens had been actively trading child pornography through email, instant messenger service, and the peer-to-peer program, and the prosecutor argued Tietjens was likely addicted to child pornography based on the size of the collection he had amassed. Tietjens is an IT employee who built his own computer at home and built at least one of the servers. The prosecutor stated that the Newberg police seized more computers and at least one additional server from Tietjen’s residence this past Monday, but the police had not yet examined them.
The government requested that Tietjens be detained pending trial. Magistrate Papak continued the hearing until Monday at the government’s request to allow a forensic examiner to conduct a preliminary review of the newly seized computers to determine whether any of the devices contain additional child pornography.
This investigation was conducted by the Newberg-Dundee Police Department. The investigation began as part of an undercover operation regarding online sexual exploitation of children. The forensic examination was conducted by the Newberg-Dundee Computer Crimes Unit.
U.S. Attorney Amanda Marshall praised the work of the Newberg-Dundee Police Department and stated, “The allegations in this case illustrate how innovations in technology have exponentially increased the volume of images of child abuse that one person can amass. Each image of child pornography represents a separate and distinct harm to the child whose abuse is depicted.”
Newberg-Dundee Police Captain Jeff Kosmicki said their Computer Crimes Unit forwarded relevant information to other federal agencies in other jurisdictions that led to additional search warrants being issued and executed.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty in court.
This case is being prosecuted by Assistant U.S. Attorney Jane Shoemaker, Chief of the U.S. Attorney’s Office Violent Crimes Unit, as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visitwww.usdoj.gov/psc and click on the tab "resources."
Tacoma Sex Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
PORTLAND, Ore. — Depri Marquis Spenser, 25, of Tacoma, Washington, was sentenced to 10 years in prison today by United States District Judge Michael H. Simon, for transporting two young girls from Washington to Oregon for the purpose of prostitution. On October 17, 2012, Spenser pleaded guilty to one count of transporting a minor across state lines for prostitution. Upon release from custody, Spenser will serve a 10-year period of supervised release. During his supervised release, he must abide by a number of conditions which include a sex offender assessment and treatment program, no contact with minors without approval, restricted access to computers and the Internet, and registration as a sex offender.
“Attention out of state traffickers,” said U.S. Attorney Amanda Marshall. “If you are caught trafficking girls in this district, we will not send you home. We will send you to federal prison for at least ten years.”
"It is our responsibility as law enforcement to protect the children in our shared community," said Greg Fowler, Special Agent in Charge of the FBI in Oregon. "No child should be put on the street. No child should be sold for sex. No child should be subjected to the violence and abuse and exploitation that these kids are. We can and will come after the pimps who profit off these kids. With the public's help, we will continue to target those pimps, and we look to our partners on the FBI's Child Exploitation Task Force to lead the fight."
Spenser was arrested in February 2012, after transporting two 15-year-old girls from Tacoma to Seattle to Portland for the purpose of sex trafficking. In Portland, Spenser caused the girls to post prostitution advertisements on www.backpage.com, a website frequently used by sex traffickers. Several Portland-area men supported Spenser’s illegal trafficking by responding to these advertisements and setting up “dates” with one of the 15-year-old victims. Spenser drove with the victim to area hotels, dropped her off a few blocks away to avoid detection, picked her up afterwards, and then demanded all of the money she received from the “date.”
This case stemmed from a coordinated investigation by members of the Federal Bureau of Investigation’s (FBI) Child Exploitation Task Force (CETF), including the FBI, the Portland Police Bureau’s Minor Victims of Sex Trafficking Unit, and the Washington County Sheriff’s Office. The FBI’s CETF marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims. CETF members include the Portland Police Bureau, Tigard Police Department, Vancouver Police Department, and Beaverton Police Department. CETF partners include the Multnomah County Sheriff’s Office and the Hillsboro Police Department. The case was prosecuted by Assistant U.S. Attorney Stacie Beckerman.
Portland Man Sentenced in Child Pornography CaseRead the Press Release
PORTLAND, Ore. – A Portland man will spend six years in prison after pleading guilty to receiving child pornography. At a sentencing hearing held in federal court this morning, U.S. District Judge Anna J. Brown sentenced Keith Henry Jordan, 53, to 72 months in prison followed by a five-year term of supervised release. Jordan will be subject to stringent conditions of supervision, including prohibitions on associating with minors, and restrictions on his use of computers. Jordan will also be required to participate in sex offender treatment, and must register as a sex offender.
U.S. Attorney Amanda Marshall praised the sentence imposed on Jordan. “We as a society cannot and will not tolerate the sexual abuse and exploitation of children,” she said. “Every time someone uploads, downloads, trades, shares, or views images and videos of child sexual abuse, the children in those images are victimized all over again. By creating a demand for such images, those who collect them encourage the ongoing sexual abuse of children.” She added, “There is nothing innocent or harmless about collecting images depicting the sexual abuse of a child.”
The investigation began when a Clackamas County Sheriff’s detective, assigned to the Interagency Child Exploitation Prevention Team (“INTERCEPT”), learned that a computer user, later determined to be Jordan, was making images of child pornography available for download through a “peer-to-peer” file sharing program. INTERCEPT officers served a state search warrant at Jordan’s residence, then in Milwaukie, Oregon, and seized computer equipment and numerous compact discs. A forensic examination revealed that Jordan had almost 1300 images and over 200 videos graphically depicting the sexual abuse of very young children.
In imposing the sentence, Judge Brown described child pornography and the child pornography industry as an “abominable intrusion” into our society. She noted that it is “difficult” for the victims who appear in the images and videos “to ever have peace,” because the images and videos “can never be removed from the internet.” In determining the sentence, Judge Brown balanced the very serious nature of Jordan’s offense against his age, his lack of recent criminal history, and his health issues. Judge Brown expressed confidence that Jordan was not likely to re-offend following his release from prison.
Reading from a brief, prepared statement, Jordan apologized to the court and to the victims. He said he had “no idea” of the pain and suffering the victims continue to endure because the images of their abuse continue to circulate on the internet, but claimed that he understands now.
This case was investigated by the Clackamas County Sheriff’s Office, the INTERCEPT Task Force, and the U.S. Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant U. S. Attorney Gary Sussman, Project Safe Childhood Coordinator for the U.S. Attorney’s Office in Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the 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.
Jury Convicts Tax ProtesterRead the Press Release
Former Owner and President of Gladstone Engineering Firm Convicted of Tax ChargesPortland, Ore. — A federal jury today convicted Chester Evans Davis, 56, of Oregon City, of five counts of tax evasion, four counts of failure to file a corporate tax return, and one count of obstructing the internal revenue laws. Davis is the former owner and president of ESA International (formerly ESA NW, Inc.), a Gladstone engineering firm specializing in power system software.
“This verdict shows that wealthy business owners have to pay taxes, just like hard-working people do every day,” said U.S. Attorney S. Amanda Marshall. “Evading taxes and obstructing the IRS are serious crimes with serious consequences.”
The government presented evidence during the four-day jury trial that Davis evaded payment of his federal income taxes for tax years 1999, 2000, and 2001, and evaded assessment of his federal income taxes for tax years 2007, 2008, 2009, and 2010. Davis’ company, ESA NW, Inc., earned millions of dollars in annual revenue, including revenue from federal government agencies such as the Army Corps of Engineers and Bonneville Power Administration. Davis transferred money from his company to various shell corporations and a warehouse bank, and then used the money to purchase more than $5 million in gold bars and coins. Special Agents with the Internal Revenue Service - Criminal Investigation seized over $1 million of that gold, as well as approximately $115,000 in cash, while executing search warrants at Davis’ residence and business. Davis also failed to file corporate returns for ESA NW, Inc., and obstructed the Internal Revenue Service by filing bogus Forms 1099-OID with the IRS. The government presented evidence that Davis currently owes approximately $5 million in state and federal personal income taxes.
The maximum penalty for each count of tax evasion is five years imprisonment and a $100,000 fine; the maximum penalty for obstructing the internal revenue laws is three years imprisonment and $25,000 fine; and the maximum penalty for failure to file tax returns is one year imprisonment and a $5,000 fine.
This case stemmed from an investigation by the Internal Revenue Service - Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Craig Gabriel and Stacie Beckerman.
Former Owner of Estacada Construction Company Sentenced to One Year in Federal Residential Reentry CenterRead the Press Release
Defendant Ordered to Pay Restitution to I.R.S. and Serve Five Years ProbationPORTLAND, Ore. - Amanda Marshall, U. S. Attorney for the District of Oregon, today announced that on Wednesday, March 6, Jeffry D. Goodrich, age 48, Estacada, Oregon was sentenced to federal probation for five years, the first year to be served living in a residential reentry center. U.S. District Judge Anna Brown also ordered Goodrich to pay restitution to the IRS in the amount of $145,308, and prohibited him from being self-employed or running a business.
Goodrich pled guilty on June 4, 2012 to willfully failing to file payroll tax returns and remit payroll taxes to the IRS for Eagles View Construction from October 2005 through September 2006. Goodrich was a co-owner of Eagles View Construction and he handled the accounting and payroll for the company. Goodrich withheld payroll taxes from over 30 employees of Eagles View Construction and he gave each employee a W-2 form at the end of 2005 and 2006 showing payroll taxes had been withheld, but he did not file payroll tax returns for the company and he did not remit to the IRS the payroll taxes he withheld.
In November 2005, in an unrelated case, Goodrich pleaded guilty to bank fraud in connection with altering checks from customers of Eagles View Construction and depositing these checks into a personal bank account. In October 2006, Goodrich was sentenced to five months in federal prison, followed by five months home confinement, for this offense.
“Failure to pay payroll taxes is a serious crime because it deprives Medicare and Social Security of needed funds, reduces the money available for the federal government to provide basic services, and gives an unfair competitive advantage over law-abiding businesses,” said U.S. Attorney Marshall. “This office, in partnership with the IRS, will vigorously investigate and prosecute business owners who do not pay their fair share of payroll taxes.”
“When people withhold money from the paychecks of their hard-working employees, that money isn’t meant to be a personal slush fund. Taxes that are withheld from paychecks and not paid over to the government are stolen from the American public,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest.
This case was investigated by the Criminal Investigation Division of the Internal Revenue Service. The case is being handled by Assistant U. S. Attorney Seth D. Uram.
Two Medford Armed Career Criminals Each Sentenced to 15 Years in PrisonRead the Press Release
MEDFORD, Ore. — Senior U.S. District Judge Owen M. Panner sentenced Jorge Armando Cisneros, 34, of Medford, Oregon, yesterday to 15 years in federal prison after he pleaded guilty to being a felon in possession of a firearm. Justin Miller, 30, also of Medford, was previously sentenced to 15 years in federal prison for the same offense.
The underlying incident occurred on October 18, 2011, when officers with the Medford Police Department responded to a trespass complaint at a residence. When they arrived, co-defendant Justin Miller was standing in the front yard and appeared to have something concealed in his waistband. Officers ordered Miller to the ground and discovered a loaded Glock .40 caliber handgun in Miller’s waistband. Miller also had a backpack containing digital scales, handcuffs, knives, marijuana, and methamphetamine. Officers determined that defendant Cisneros was present at the residence but had fled out the back door. They searched the area but did not locate Cisneros.
Further police investigation revealed that Miller had obtained the Glock .40 handgun from Cisneros. Cisneros was arrested eight days later during a car stop and admitted giving the Glock .40 handgun to Miller, expecting cash or drugs in return. Cisneros' cell phone contained photos and videos of Cisneros shooting the Glock handgun and other firearms.
Under federal law, any person who possesses a firearm or ammunition after being previously convicted of three violent felonies or drug trafficking crimes is considered an Armed Career Criminal and, if convicted, faces a 15 year mandatory minimum prison sentence. Cisneros is an Armed Career Criminal with six such convictions. These include two convictions for burglary in the first degree, three convictions for felony attempt to elude police, and a conviction for conspiracy to distribute methamphetamine.
Miller is also an Armed Career Criminal, with two prior convictions for burglary in the first degree and a conviction for delivery of methamphetamine, with additional felony convictions for identity theft and possession of methamphetamine.
This case was investigated jointly by the Medford Police Department and the Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Oregon Resident Charged with Conspiring to Provide Material Support to Terrorists in Connection with Suicide Bombing of ISI Headquarters in PakistanRead the Press Release
PORTLAND, Ore. – Reaz Qadir Khan, 48, a naturalized U.S. citizen residing in Portland, has been arrested on charges of conspiracy to provide material support to terrorists for the assistance he allegedly provided to an individual who participated in a May 27, 2009, suicide bomb attack at the headquarters of Pakistan’s intelligence service in Lahore, Pakistan, that killed approximately 30 individuals and injured 300 more.
The arrest was announced by Amanda Marshall, U.S. Attorney for the District of Oregon; Lisa Monaco, Assistant Attorney General for National Security; and Gregory Fowler, Special Agent in Charge of the FBI Portland Division.
FBI agents arrested Khan this morning without incident at his residence in Portland. He made his initial appearance today before Magistrate Paul Papak in federal court in Portland, where the charges against him were unsealed and defendant was detained, pending a detention hearing tomorrow, Wednesday, March 6, 2010 at 1:30 p.m. Khan is charged by a federal indictment with one count of conspiracy to provide material support to terrorists. If convicted, he faces a potential maximum sentence of life in prison.
“The indictment unsealed today set forth how Mr. Khan allegedly supported a terrorist who killed dozens of innocent people in Lahore Pakistan,” said U.S. Attorney Amanda Marshall. “The events of May 27, 2009 remind us that terrorism is not defined by Muslims targeting non-Muslims, but is defined by violent extremists targeting anyone they perceive as a threat to their oppressive agenda without regard for the religion, race, or nationality of their victims. We will find and prosecute those who use this country as a base to fund and support terrorists. Dismantling terrorist networks continues to be a top priority for this office and the Department of Justice.”
“Those who provide material support to terrorists are just as responsible for the deaths and destruction that follow as those who commit the violent acts,” said Greg Fowler, Special Agent in Charge of the FBI in Oregon. “The FBI will continue to focus on cutting off the flow of funds that help terrorists train, travel and launch their attacks.”
According to the indictment, from Dec. 14, 2005 through June 2, 2009, Khan conspired with an individual named Ali Jaleel and others to provide material support and resources, and to conceal the nature of such support and resources, knowing they would be used in a conspiracy to kill, maim or kidnap persons abroad. Jaleel was a Maldivian national who resided outside the United States. Jaleel died while participating in the suicide attack on the Inter-Services Intelligence (ISI) headquarters in Lahore on May 27, 2009, according to the indictment.
As part of the conspiracy, Khan allegedly used email and intermediaries to provide advice and financial assistance to Jaleel and his family. Khan allegedly provided Jaleel with advice to help him in his efforts to travel undetected from the Maldives to commit violent jihad and used coded language when communicating with Jaleel to avoid detection. Further, Khan allegedly provided financial assistance so Jaleel could attend a training camp to prepare for an attack such as that carried out in Lahore on May 27, 2009. Khan also allegedly provided financial support and advice to Jaleel’s family while Jaleel traveled to Pakistan and after he died.
In April 2006, Jaleel and a small group from the Maldives attempted to travel to Pakistan to train for violent jihad in Iraq or Afghanistan, but they were detained and returned to the Maldives, where Jaleel was placed under house arrest, according to the indictment.
In 2008, Jaleel allegedly emailed Khan about his plans to travel to Pakistan again, and in response, Khan provided advice to Jaleel on how to avoid detection and offered to arrange for money to be sent to Jaleel. In October 2008, Jaleel allegedly told Khan he needed “$2500 for everything” and asked that Khan take care of his family and educate his children. Khan promised to help Jaleel’s family. Khan later instructed Jaleel to pick up the money he needed to enter the training camp from an individual in Karachi, Pakistan. To arrange for this transfer, Khan allegedly contacted an individual in Los Angeles who he knew could quickly arrange for Jaleel to pick up money in Pakistan. According to indictment, the individual in Los Angeles then arranged for the money to be available for pick-up from the individual in Karachi.
On Nov. 5, 2008, Jaleel wrote Khan that he was about to gain admission to the training camp and that he would have left-over money from the funds that Khan had provided him. Khan allegedly advised Jaleel to keep the extra funds so they could be sent to Jaleel’s two wives in the Maldives and instructed Jaleel to leave a closed envelop with the individual in Karachi.
According to the indictment, on May 27, 2009, Jaleel and two others conducted the suicide attack at the ISI Headquarters in Lahore. The blast resulted in the death of approximately 30 people and injured 300 more. In a video released by the media outlet of al-Qaeda shortly after the attack, Jaleel allegedly made a statement taking responsibility for the attack and he was shown preparing for the attack at a training camp in what is believed to be the Federally Administered Tribal Area of Pakistan. In June 2009, Khan allegedly wired approximately $750 from a store in Oregon to one of Jaleel’s wives in the Maldives.
This case was investigated by the FBI. The prosecution is being handled by Assistant U.S. Attorney Ethan D. Knight from the U.S. Attorney’s Office for the District of Oregon. Trial Attorney David P. Cora, from the Counterterrorism Section of the Justice Department’s National Security Division, is assisting.
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
For additional information, the attached indictment can be found at this link.
Career Offender Sentenced to 14 Years in Sex Trafficking CaseRead the Press Release
PORTLAND, Ore. – Dwayne Jamal Hubbard, 24, of Portland, Oregon, was sentenced today by U. S. District Judge Anna J. Brown to 168 months in prison, to be followed by a five-year term of supervised release. The federal charges were filed in May 2012 after an investigation led by the FBI’s Child Exploitation Task Force working in conjunction with the Tigard Police Department. On December 10, 2012, Hubbard pled guilty to sex trafficking of a minor, which carries a mandatory minimum of ten years in prison and a maximum of life imprisonment.
Today at his sentencing, the Court found Hubbard qualified as a career offender based on his prior felony convictions, and this status subjected him to enhanced penalties. According to prosecutors, Hubbard met a 17-year-old female online, arranged a meeting, and immediately started encouraging her to engage in commercial sex acts by posting sexual advertisements on Backpage.com. Within days of meeting, defendant took sexually suggestive photographs of her, created online advertisements, and began sending her out to engage in sex acts with strangers in exchange for money. Hubbard continuously pestered her through text messages asking her if she could make him some money.
“This defendant believed being a pimp and selling young women for sex was a low-cost way to earn significant financial benefit,” said U.S. Attorney Amanda Marshall. “My office is committed to changing the cost side of the analysis – if you get caught sex trafficking in this District, we will work with our law enforcement partners to arrest you and seek the kind of stiff penalties that Congress envisioned for this crime.”
In crafting an appropriate sentence, Judge Brown noted the horrific nature of the offense and addressed the negative impact it has in our community. Because Hubbard agreed to accept responsibility for his crime and resolve his case early, the government recommended some downward variance to his guideline range to reach a 14-year sentence. The Court agreed that by resolving early, defendant prevented further harm to the victim that can only be compounded by protracted litigation.
The case was prosecuted by Assistant U.S. Attorney Leah K. Bolstad.
Portland Man Sentenced for Felon in Possession of a FirearmRead the Press Release
PORTLAND, Ore. – James Rodney Grant, Jr., 36, of Portland, Oregon, was sentenced today by U.S. District Judge Michael W. Mosman to 70 months in prison and three years supervised release following his plea to being a felon in possession of a firearm.
The charges arose after Grant threatened an individual at a bar with a handgun. The police were called and located Grant leaving the scene in a vehicle. Grant tried to flee from the police, but he eventually crashed his vehicle and was arrested. The police found the handgun, a loaded .25 caliber semi-automatic pistol, on the route the defendant had traveled while he fled. Grant was prohibited from possessing firearms because of his prior felony convictions for delivery of a controlled substance, assault III and attempt to elude, robbery I, and assault IV (domestic violence).
This case was investigated by the Portland Police Bureau and ATF, and it was prosecuted by Assistant United States Attorney Fred Weinhouse.