District of Oregon

EUGENE, Ore.—A former employee of the Burns Paiute Tribe was sentenced to federal probation today after she stole and crashed a vehicle owned by the Tribe used to transport students to and from school events.

Sara Janeese Hawley, 37, a resident of Burns, Oregon, was sentenced to three years’ federal probation. Hawley was also ordered to pay restitution to the Burns Paiute Tribe.

According to court documents, Hawley used an employee access code to enter the Burns Paiute Tribe’s Tribal Housing Department building where she took the keys to and stole a Dodge Caravan minivan owned by the Tribe. Hawley, who had earlier used methamphetamine and inhalants, drove away in and later crashed and totaled the vehicle.

On April 21, 2022, a federal grand jury in Eugene returned an indictment charging Hawley with embezzlement and theft from an Indian Tribal Organization. On August 23, 2022, she pleaded guilty to the single charge.

This case was investigated by the Bureau of Indian Affairs and the FBI. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—A Portland woman was sentenced to federal prison today for violating the terms of her post-prison supervised release by submitting two fraudulent applications for loans intended to help small businesses during the COVID-19 pandemic.

Tiairre Travonne Chaney, 35, was sentenced to six months in federal prison followed by a 24-month term of supervised release.

According to court documents, in September 2015, Chaney was charged by criminal information with one count of wire fraud after she submitted 35 fraudulent income tax returns and caused the IRS to pay her more than $155,000 in unwarranted tax refunds. One month later, Chaney pleaded guilty to the single charge and, in February 2016, was sentenced to one year and one day in federal prison followed by a three-year term of supervised release. Chaney was released from prison in November 2016.

By June 2018, Chaney was found to have violated her supervised release conditions by failing to pay restitution, failing to file true and correct taxes, and failing to report to her probation officer. As a result, she was placed on GPS monitoring for 30 days. In December 2019, Chaney violated her supervision terms a second time by again failing to report to her probation officer and pay restitution and also failing to obtain lawful employment. She was sentenced to three months in prison and her 33-month term of supervised release was reimposed.

In January and May 2021, Chaney violated her supervised release a third time by submitting to the U.S. Small Business Administration (SBA) two fraudulent applications for Economic Injury Disaster Loans (EIDLs)for Tncw Baked Goods, LLC, a straw entity she formed after the onset of the pandemic. In her applications, Chaney falsely denied being on supervised release and denied her felony conviction. In the second application, she falsely claimed Tncw Baked Goods, LLC, realized gross revenues of $45,663 in 2020 when in fact it had done no business whatsoever. 

This case was investigated by the SBA Office of Inspector General and the Treasury Inspector General for Tax Administration (TIGTA). It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

EUGENE, Ore.—A Douglas County couple known for distributing drugs was sentenced to federal prison today after they were linked to the overdose death of man to whom they had sold drugs to for more than a year.

Brian Joseph Ramos, 49, and Christine Marie Ramos, 41, residents of Yoncalla, Oregon, were sentenced to 70 and 51 months in federal prison, respectively. The Ramoses must also serve five-year terms of supervised release following the completion of their prison sentences.

According to court documents, in May 2018, detectives from the Douglas Interagency Narcotics Team (DINT) learned that an adult male stopped by the Ramoses home in Yoncalla after his release from a residential drug treatment program. Later the same day, the man tragically died of fentanyl poisoning. The next day, investigators interviewed the Ramoses who confirmed the man was at their residence the day prior, but denied giving him drugs. Christine Ramos, who was at work when the man stopped by their residence, admitted to selling the man pills for up to two years prior to his overdose. At one point after learning the man was injecting the pills she sold him, Christine Ramos stopped selling him drugs, but resumed thereafter.

Detectives searched the Ramoses’ residence and found several dozen grams of methamphetamine, 260 pills, drug paraphernalia, and digital scales. Several pills that later tested positive for fentanyl were found in the Ramoses’ vehicles. Evidence recovered from Brian Ramos’s phone revealed that he had in fact sold a pill to the man who succumbed to the fatal overdose.

On August 30, 2018, the Ramoses were charged by criminal complaint with conspiring with one another to possess with intent to distribute methamphetamine, oxycodone, and hydromorphone. On March 29, 2021, both waived indictment and pleaded guilty.

This case was investigated by DINT and the U.S. Drug Enforcement Administration. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.

Formed in October 1989, the Douglas Interagency Narcotics Team is a special investigative unit formed to combat illegal narcotics activity in Douglas County. DINT member agencies include Douglas County, including the Douglas County Sheriff and District Attorney’s Offices, the Oregon National Guard, Oregon State Police, and Roseburg Police Department.

EUGENE, Ore.—A California man with multiple prior felony drug trafficking convictions over more than two decades was sentenced to federal prison today after he was arrested transporting nearly two kilograms of methamphetamine from California to Oregon.

Jose Baldemar Izar, 42, of Lancaster, California, was sentenced to 84 months in federal prison.

According to court documents, in October 2020, investigators from the Douglas Area Interagency Narcotics Team (DINT) received a tip that Izar was trafficking drugs from California to Oregon for distribution in the Roseburg, Oregon area. Further investigation revealed that Izar was in frequent contact with several suspected methamphetamine dealers in the Roseburg area and that he was known to drive vehicles rented under another name.

On March 17, 2021, DINT officers learned Izar would be traveling from California to Douglas County. The same day, they stopped a rented vehicle in which Izar was a passenger. Investigators searched the vehicle and located more than 1,700 grams of methamphetamine, a small quantity of heroin, and drug packaging materials.

On March 18, 2021, Izar and a co-conspirator were charged by criminal complaint with possessing with intent to distribute methamphetamine. Later, on August 19, 2021, Izar and his co-conspirator were charged by criminal information with conspiring with one another to possess with intent to distribute and distribute methamphetamine. On November 3, 2022, Izar waived indictment and pleaded guilty to the conspiracy charge.

This case was investigated by DINT and the U.S. Drug Enforcement Administration. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.

Formed in October 1989, the Douglas Interagency Narcotics Team is a special investigative unit formed to combat illegal narcotics activity in Douglas County. DINT member agencies include Douglas County, including the Douglas County Sheriff and District Attorney’s Offices, the Oregon National Guard, Oregon State Police, and Roseburg Police Department.

MEDFORD, Ore.—A Southern Oregon woman is facing federal charges alleging she used her deceased spouse’s identity to fraudulently obtain more than $36,000 in federal student aid.

On October 6, 2022, a federal grand jury in Medford returned a nine-count indictment charging Cynthia Pickering, 55, of Central Point, Oregon with wire fraud, aggravated identity theft, and student loan fraud.

According to court documents, beginning in September 2017 and continuing though April 2019, Pickering is alleged to have devised a scheme to use her deceased spouse’s personally identifiable information to submit multiple applications for federal student aid and enroll her former spouse at three different colleges and universities in Oregon. These fraudulent applications caused the three colleges and universities—Eastern Oregon University, Rogue Community College, and Western Oregon University—to disperse $36,341 in federal student aid into Pickering’s personal checking account.

To conceal her scheme, Pickering attended online classes pretending to be her former spouse so that her spouse would remain eligible for the student aid. Pickering did what was necessary to pass first term courses at each institution and collect the funds.

On November 15, 2022, Pickering was arrested at her residence in Central Point. The next day, on November 16, 2022, she made her first appearance in federal court in Medford before a U.S. Magistrate Judge. Pickering was arraigned, pleaded not guilty, and released pending a jury trial scheduled to begin on January 24, 2023.

Wire fraud and student aid fraud are punishable by up 20 years and five years in federal prison, respectively, per count of conviction. Aggravated identity theft is punishable by up to two years in prison consecutive to any other carceral sentence imposed.

This case was investigated by the U.S. Department of Education, Office of Inspector General (ED-OIG). It is being prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon.

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

If you or someone you know believe you are the victim of federal student aid fraud or are otherwise aware of student aid fraud being committed, please contact ED-OIG by calling 1-800-MIS-USED (1-800-647-8733) or submit a tip online at https://oighotlineportal.ed.gov/eCasePortal/.

PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging a local woman for her alleged role in a fraud ring that used the stolen identities of multiple victims in the Portland area to open bank accounts and credit cards, purchase vehicles, and produce false documents.

Mary Phoenix Nguyen, 40, of Oregon City, Oregon, has been charged with aggravated identity theft; social security fraud; illegally possessing device-making equipment; producing, using, or trafficking a counterfeit access device; making illegal transactions with an access device; and possessing fifteen or more unauthorized access devices.

According to court documents, in April 2022, special agents from Homeland Security Investigations (HSI) began investigating Nguyen and others in the Portland and Vancouver, Washington areas for their roles in a coordinated fraud ring targeting individuals in the Portland Metropolitan Area, Texas, Florida, and elsewhere. Nguyen and her associates used stolen identities and personal information to obtain credit cards, unlawfully access victims’ bank accounts, apply for multiple vehicle loans, rent at least six apartments and other residences, and fraudulently produce various personal and financial documents including social security cards, driver’s licenses, vehicle titles, and vehicle bills of sale.

From at least February 2021 to October 2022, Nguyen and her associates are believed to have cost victims more than $120,000 and fraudulently obtained vehicles with a total estimated value of more than $150,000.

On October 18, 2022, Nguyen was arrested at her Oregon City residence. She made her initial appearance in federal court today before a U.S. Magistrate Judge and was arraigned, pleaded not guilty, and detained pending further court proceedings. A four-day jury trial is scheduled to begin on January 3, 2023.

Illegally possessing device-marking equipment and making illegal transactions with an access device are punishable by up to 15 years in federal prison. Producing, using, or trafficking a counterfeit access device is punishable by up 10 years. Social security fraud is punishable by up to five years in prison. Aggravated identity theft is punishable by a mandatory minimum of two years in prison per count of conviction consecutive to any other carceral sentence imposed.

This case was investigated by HSI and the Portland Police Bureau with assistance from the U.S. Postal Inspection Service. Special Assistant U.S. Attorney Rachel Sowray is prosecuting the case.

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

PORTLAND, Ore.—After a two-week trial, a federal jury in Portland found a McMinnville, Oregon man guilty today of evading $2.5 million in income taxes by hiding his income in multiple bank accounts and submitting false financial statements to the IRS.

James Millegan, 65, was convicted of one count of tax evasion.

According to court documents, Millegan owned and operated J.W. Millegan, Inc., a small, commission-based investment advisory business that served clients in the Portland and Salem, Oregon metropolitan areas. From 1996 to 2016, the investment firm was Millegan’s only significant source of income.

Over a seven-year period from July 2009 through September 2016, Millegan evaded payment of $2.5 million in income taxes. Millegan filed tax returns each year reflecting his true income, which sometimes exceeded $1 million, and the taxes he owed on that income, which typically ranged from $125,000 to $350,000. Despite these returns, Millegan often failed to pay the IRS. 

Millegan was described as a prolific spender by personal assistants hired to pay his bills. He used the proceeds of his tax evasion to fund an extravagant lifestyle that included a $4.5 million home in Portland, a $1.3 million home on the Oregon coast, Rolls Royce and Bentley automobiles for everyday use, equestrian expenses like stabling and lessons, and an attempt to establish a world-class equestrian competition center and resort near Sheridan, Oregon. Millegan also bought a classic 1938 Rolls Royce touring car, spent $800,000 restoring it, and showed it in premier car shows in the U.S., Great Britain, and Europe.

To evade the payment of his income taxes, Millegan concealed his income from the IRS by transferring it to six bank accounts he controlled, including transferring $1.4 million to the bank account of his deceased mother’s trust, which he used to pay his personal expenses. From July 2009 through September 2016, Millegan transferred $3.7 million to these accounts. To further conceal his income, Millegan submitted false financial statements to the IRS.

On November 21, 2019, a federal grand jury in Portland returned a 13-count indictment charging Millegan with tax evasion and investment churning. Later, on February 17, 2022, he was charged by superseding indictment with wire fraud and tax evasion. A jury trial on the wire fraud charges is scheduled to begin in March 2023.

Tax evasion is punishable by up to five years in federal prison. Millegan will be sentenced on April 3, 2023, by U.S. District Court Judge Karin J. Immergut.

This tax evasion case was investigated by IRS-Criminal Investigation. Seth D. Uram and Meredith D.M. Bateman, Assistant U.S. Attorneys for the District of Oregon, are prosecuting the case. Assistant U.S. Attorney Hannah Horsley assisted the trial team.

PORTLAND, Ore.—The former owner and general manager of dump truck hauling and concrete companies based in Damascus, Oregon pleaded guilty today to willfully failing to pay employment taxes despite withholding them from employee paychecks.

Rebekah Joy Williams, 44, a resident of Damascus, pleaded guilty to one count of failing to pay over employment taxes.

According to court documents, until the third and fourth quarters of 2017, Williams owned and operated Anbasa Transport LLC and Kelaye Conrete LLC, commercial dump truck hauling and concrete companies registered in Oregon that formerly operated in both Oregon and Washington State. As the sole owner and general manager of both companies, Williams was responsible for collecting, accounting for, and paying federal income, Medicare, and Social Security taxes (also known as FICA taxes) on behalf of her employees.

Over at least a three-year period, from 2015-2017, Williams withheld these taxes from her employees’ paychecks and provided them with paystubs reflecting the withholdings. Despite doing so, IRS records showed that Williams made no payroll tax payments on behalf of either company from the third quarter of 2015 through the fourth quarter of 2017. In total, Williams failed to pay approximately $112,257 in employment taxes to the IRS.

On October 19, 2021, a federal grand jury in Portland returned a 19-count indictment charging Williams with willfully failing to collect or pay over employment taxes.

Williams faces a maximum sentence of five years in prison, a $250,000 fine or twice her gross gains resulting from the offense, and three years of supervised release. She will be sentenced on February 14, 2023, by U.S. District Court Judge Karin J. Immergut.

As part of her plea agreement, Williams has agreed to pay $725,492 in restitution to the IRS.

This case was investigated by IRS-Criminal Investigation. It was prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that it has reached a settlement with Studio 6, a Portland motel, to resolve allegations that the motel lacked accessible entrances, rooms, and other facilities.

The settlement resolves an Americans with Disabilities Act (ADA) complaint filed by an individual with a mobility impairment who alleged that Studio 6 did not have an available guest room to accommodate persons with mobility-related disabilities, including wheelchair users; had no accessible entrances or internal routes from the motel’s lobby to its guest rooms; and that the motel’s only accessible parking space was being used for other purposes and its reservation service failed to sufficiently identify and describe the property’s accessible guest rooms.

Under the ADA, inns, hotels, and motels may not exclude individuals with disabilities by failing to provide accessible accommodations and accurately describing their accessible features in enough detail to reasonably permit individuals with disabilities to assess whether a property will meet their accessibility needs.

Under the settlement agreement, Studio 6 has agreed to make certain modifications to improve accessibility at its property, including installing an exterior wheelchair ramp to the main entrance, providing three accessible guest rooms and parking spaces, altering the lobby area and first floor to increase overall accessibility, and conducting annual ADA staff training.

“Our office is committed to working with any property owners, public or private, to help obtain compliance with the ADA,” said Natalie Wight, U.S. Attorney for the District of Oregon.

Studio 6 cooperated with the U.S. Attorney’s Office during this investigation.

The United States was represented in this matter by Michael Jeter and Joshua Keller, Assistant U.S. Attorneys for the District of Oregon.

Individuals in Oregon who believe their civil rights may have been violated may submit complaints online by visiting https://civilrights.justice.gov. For more information on the ADA, or to access publications available to assist entities in complying with the ADA, visit ada.gov or call the Justice Department’s toll-free ADA information line at 1-800-514-0301 or 1-800-514-0383 (TDD).

MEDFORD, Ore.—A Portland, Oregon man with a prior drug trafficking conviction was sentenced to federal prison today after he was found driving on Interstate 5 in Southern Oregon with more than ten pounds of methamphetamine, nearly three pounds of counterfeit pills containing fentanyl, and two firearms.

Jonathan James Lawson, 29, was sentenced to 120 months in federal prison and five years’ supervised release.

According to court documents, on March 6, 2021, law enforcement learned Lawson was traveling from Southern California to Josephine County, Oregon with a large quantity of drugs. The next day, law enforcement spotted Lawson driving northbound on Interstate 5 near Grants Pass, Oregon and conducted a traffic stop. Inside Lawson’s vehicle, officers located a large tool case containing approximately ten pounds of methamphetamine, 700 grams of counterfeit pills containing fentanyl, body armor, and a revolver. Officers located an additional 480 grams of fentanyl pills, ammunition, drug paraphernalia, and a second firearm elsewhere in the vehicle.

On May 4, 2021, Lawson was charged by criminal complaint with possessing with intent to distribute controlled substances and possessing a firearm in furtherance of a drug trafficking crime. Later, on March 15, 2022, Lawson was charged by criminal information with possessing with intent to distribute methamphetamine. On May 9, 2022, he pleaded guilty to the single charge.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Rogue Area Drug Enforcement (RADE) task force, Grants Pass Police Department, and Oregon State Police. It was prosecuted by Marco Boccato, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—A Charlotte, North Carolina man pleaded guilty and was sentenced to federal prison today for punching a fellow passenger in the face on a Portland-bound commercial flight from Denver.

Yuriy Poplauskiy, 40, was sentenced to 12 months in federal prison and one year of supervised release.

According to court documents, on August 14, 2019, on a commercial flight from Denver to Portland, several passengers observed Poplauskiy exhibiting strange behavior, leading some to believe he was intoxicated. With 25 minutes remaining in the flight, Poplauskiy peered through a gap in the seats at a man sitting behind him on the aisle. Poplauskiy glared at the man and mumbled “when we land, I’ll see you at the airport.” Poplauskiy then stood up, called the man a name, and punched him in the jaw. Poplauskiy ran to the lavatory, but eventually returned to his seat. Minutes later, prior to landing, Poplauskiy tried to start a fight with another male passenger and groped a male flight attendant’s genitals. Police officers met the plane at the gate in Portland and arrested Poplauskiy.

On September 18, 2019, a federal grand jury in Portland returned an indictment charging Poplauskiy with assault by striking while on board an aircraft. Before sentencing today, he pleaded guilty to the single charge.

Prior to his plea and sentencing, Poplauskiy violated his pre-trial release conditions six times, including by incurring two new criminal convictions for unlawfully possessing methamphetamine and eluding arrest in a motor vehicle.

This case was investigated by the FBI with assistance from the Port of Portland Police Department and the Portland Police Bureau. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.

PORTLAND, Ore.—A Nevada man was sentenced to federal prison today for repeatedly sexually abusing a young child across multiple states for years.

Albert Wayne Welling, 60, was sentenced to 300 months in federal prison followed by a lifetime term of supervised release.

According to court documents, over a period of several years, Welling, who was employed as an interstate truck driver, repeatedly sexually abused and assaulted a child beginning when the child was in kindergarten. The child would accompany Welling on interstate trips and stayed in hotels with him in Oregon, Nevada, and other states. During these trips, Welling abused the child daily or every other day at hotels, in his truck or in other locations in multiple states. During the period of abuse, Welling acted as if he was in an adult sexual and romantic relationship with the child, giving the child gifts and allowing the child to use a debit card he funded. In exchange for these gifts, Welling would tell the child “you owe me.” The child bravely disclosed Welling’s abuse in September 2020.

On October 15, 2020, a federal grand jury in Eugene returned an indictment charging Welling with aggravated sexual abuse of a child. Later, on July 21, 2022, charges of traveling to engage in illicit sexual conduct with a minor, coercing and enticing a minor, and transporting a minor with intent to engage in criminal sexual activity were added by superseding indictment.

On July 26, 2022, after a stipulated facts bench trial before U.S. District Court Judge Michael J. McShane, Welling was found guilty on all counts on which he was tried: coercing and enticing a minor, traveling with intent to engage in illicit sexual conduct with a minor, and transporting a minor with intent to engage in criminal sexual activity.

This case was investigated by the FBI Eugene Resident Agency with assistance from the Cottage Grove Police Department. It was prosecuted by Jeffrey S. Sweet and William M. McLaren, Assistant U.S. Attorneys for the District of Oregon, in coordination with the Lane County District Attorney’s Office.

If you or someone you know is in immediate danger, please call 911.

Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.

The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.

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

PORTLAND, Ore.—An indictment was unsealed in federal court today charging a Gladstone, Oregon man with abducting and sexually abusing a Canadian child he met online.

On September 20, 2022, a federal grand jury in Portland returned an indictment charging Noah Madrano, 41, with traveling in interstate or foreign commerce with intent to engage in illicit sexual conduct, sexually exploiting a child, transporting a child interstate with intent to engage in criminal sexual activity, and possessing child pornography.

According to court documents and proceedings, Madrano met a child online whom he sexually exploited for more than a year. He then traveled to Canada to meet the child in person, took her to a hotel room, sexually abused her, and videorecorded his abuse. Following this incident, he returned to the U.S.

Madrano later returned to Canada, abducted the child from outside her school, and took her to another hotel room. At the hotel, Madrano made the child dye her hair and wear a hooded sweatshirt to disguise her appearance. Madrano abused the child for several days. After briefly returning to the U.S., Madrano again returned to Canada, picked up the child and drove her back to the U.S. in the trunk of his vehicle. Madrano brought the child to a hotel room in Oregon where he continued abusing her.

In the early morning hours of July 2, 2022, special agents from FBI Portland’s Child Exploitation Task Force (CETF) and officers from the Oregon City Police Department made entry into Madrano’s hotel room and found him inside with the minor. Madrano was arrested and indicted on state and federal charges. The child was taken into protective custody and returned to her parents in Canada.

Madrano made his first appearance in federal court today. He was arraigned, pleaded not guilty, and a five-day jury trial was scheduled to begin on December 13, 2022. Madrano remains in custody pending a detention hearing to be held on November 2, 2022.

If convicted, Madrano faces a maximum sentence of life in federal prison with a 15-year mandatory minimum.

This case was investigated by FBI Portland’s CETF with assistance from the Oregon City Police Department and the Royal Canadian Mounted Police. Madrano’s federal case is being prosecuted by Mira Chernick, Assistant U.S. Attorney for the District of Oregon. His state case is being prosecuted by Adrienne Chin-Perez, Deputy District Attorney for the Clackamas County District Attorney’s Office.

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

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

The FBI CETF conducts sexual exploitation investigations—many of them undercover—in coordination with other federal, state, and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering underage victims of sex trafficking and child exploitation.

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

EUGENE, Ore.—A man formerly residing in Newark, New Jersey was sentenced to federal prison today for his role in a scheme to deceive and cheat $1 million from an elderly man residing in Roseburg, Oregon.

Thomas Gerard Mautone, 43, was sentenced to 30 months in federal prison and three years’ supervised release. Mautone was also ordered to pay $1 million in restitution to his victim.

According to court documents and trial testimony, Mautone was one of five individuals who together perpetrated a scheme to convince an elderly man to invest $1 million in a fraudulent high-yield international investment scam. In July 2015, one of Mautone’s co-defendants, Jared Mack, 46, of Utah, made initial contact with the victim to pitch an investment opportunity claiming to produce weekly returns of 20%. Once the victim expressed interest in the purported investment opportunity – and produced evidence he had $1 million to invest – Mack introduced him to Mautone, the supposed connection to investment “platform partner,” and codefendant Olabode Olukanni, 39, of New York.

For several months, Mautone and his co-defendants maintained frequent contact with the victim and repeatedly attempted to assure him, via a series of increasingly intimidating and pressure-laden communications, of the investment opportunity’s legitimacy, low risk, and promised returns. Mautone made these false representations despite knowing that others had their money stolen by his supposed Hong Kong investment partner, and despite being convicted only two years earlier of wire fraud for pitching a similar high-yield investment scam in South Carolina. 

In December 2015, following this monthslong pressure campaign, the victim wired $1 million to a bank account in Dubai, United Arab Emirates, which was controlled by codefendant Rovshan Bahader Oglu Qasimov, 38, of Azerbaijan. Qasimov immediately withdrew the money and used it to purchase gold from a jewelry store in Dubai. The victim never saw his money again, nor did he receive the promised investment returns.

On June 21, 2017, a federal grand jury in Eugene returned a six-count indictment charging Mautone, Mack, Olukanni, and Qasimov with wire fraud.

On May 13, 2022, Mautone was convicted at trial by a jury in Eugene.

Mack, Olukanni, and Qasimov all pleaded guilty and were sentenced for their roles in the scheme.

This case was investigated by the FBI. It was prosecuted by Gavin W. Bruce and William M. McLaren, Assistant U.S. Attorneys for the District of Oregon.

EUGENE, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that two California men have been sentenced to federal prison for trafficking large quantities of methamphetamine and heroin from California to Oregon.

Jack Scott Lewis, 36, of Los Angeles, was sentenced today to 120 months in federal prison and five years’ supervised release. Previously, on June 6, 2022, Lewis’s accomplice, Michael Panoosi, 56, also of California, was sentenced to 210 months in federal prison and five years’ supervised release.

According to court documents, in December 2019, detectives from the Douglas Interagency Narcotics Team (DINT) began investigating Panoosi, a California-based drug dealer, for transporting large quantities of methamphetamine from California to Oregon for distribution and sale in Douglas, Jackson, Josephine, and Lane Counties. Investigators learned that Panoosi would transport several dozen pounds of methamphetamine on each trip from California and was known to use a driver to transport and deliver drugs. Panoosi had multiple prior drug convictions. 

On October 11, 2020, Panoosi, Lewis, and another person were seen driving in Northern California toward Oregon. DINT detectives stopped and searched the group’s vehicle in Douglas County and found 46 pounds of methamphetamine and one pound of heroin. The detectives found more methamphetamine and three handguns in Lewis’s backpack. Two of the guns were loaded, two had obliterated serial numbers, and one had a high-capacity magazine. Another handgun and drug packaging material were found in Panoosi’s backpack.

On October 15, 2020, a federal grand jury in Eugene returned indictments charging Lewis and Panoosi with possessing with intent to distribute methamphetamine and possessing firearms in furtherance of a drug trafficking crime.

On March 8, 2022, Panoosi pleaded guilty to possessing with intent to distribute methamphetamine. Later, on June 6, 2022, Lewis pleaded guilty to the same charge.

This case was investigated by the U.S. Drug Enforcement Administration (DEA) and DINT. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.

Formed in October 1989, the Douglas Interagency Narcotics Team is a special investigative unit formed to combat illegal narcotics activity in Douglas County. DINT member agencies include Douglas County, including the Douglas County Sheriff and District Attorney’s Offices, the Oregon National Guard, Oregon State Police, and Roseburg Police Department.

PORTLAND, Ore.—A Tigard, Oregon woman pleaded guilty and was sentenced today for failing to register with the U.S. Department of Health and Human Services as a distributor of hyaluronic acid injectables she purchased online from Korea.

Yasemin Zafar, 42, was sentenced to 12 months’ probation and a $1,000 fine.

“U.S. consumers rely on the FDA to ensure that their medications and medical devices are safe and effective,” said Acting Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations (FDA-OCI) Los Angeles Field Office. “We will continue to investigate and bring to justice those who threaten the health of consumers by evading FDA requirements.”

According to court documents, sometime in 2018, Zafar began selling hyaluronic acid, a medical product used as a filler for cheek augmentation, without registering with the U.S. Department of Health and Human Services as required by federal law. Zafar knew the products she sold were regulated by the U.S. Food and Drug Administration (FDA). Specifically, in September 2018, Zafar sent messages noting that eBay kept removing her products because they required a prescription and she did not know if the products, which came from Korea, were approved by the FDA. Zafar’s actions intentionally circumvented the FDA’s regulatory authority.

On July 12, 2022, Zafar was charged by criminal information with failing to register as a medical device distributor. Today, before her sentencing, Zafar waived indictment and pleaded guilty to the single charge.

This case was investigated by the FDA-OCI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.

PORTLAND, Ore.—A Georgia man was sentenced to federal prison today for using stolen identities to fraudulently obtain Supplemental Nutrition Assistance Program (SNAP) benefits and attempt to purchase a luxury vehicle worth nearly $80,000.

Mackenzie Braswell Sherman, 38, was sentenced to 24 months in federal prison and one year of supervised release.

According to court documents, in April 2019, Sherman used an adult victim’s personal information to submit an application to the Oregon Department of Human Services (Oregon DHS) for SNAP benefits funded by the U.S. Department of Agriculture (USDA). Sherman’s application was approved and he received $1,152 in food stamps.

Later, in October 2019, Sherman attempted to use the personal information of a second adult victim to obtain an auto loan to purchase a Mercedes Benz valued at nearly $80,000. Car dealership employees called the police and Sherman was arrested. When officers searched his vehicle, they located documents with several victims’ personal information, fraudulent bank cards, and a card reader. 

Further investigation revealed that Sherman had opened or attempted to open multiple accounts with different financial institutions using stolen personal information. One institution, Unitus Federal Credit Union, suffered a loss of more than $1,800 when Sherman deposited fake checks into one of his fraudulently obtained accounts.

On January 8, 2020, a federal grand jury in Portland returned a five-count indictment charging Sherman with aggravated identity theft, theft of government funds, social security fraud, and access device fraud.

On September 6, 2022, Sherman pleaded guilty to aggravated identity theft.

This case was investigated by Homeland Security Investigations (HSI), the USDA Office of Inspector General (USDA-OIG), and the Social Security Administration Office of Inspector General (SSA-OIG) with assistance from Oregon DHS and the Portland Police Bureau. It was prosecuted by Assistant U.S. Attorney Rachel K. Sowray.

MEDFORD, Ore.—A Medford man previously convicted for raping a child was sentenced to more than 13 years in federal prison today for possessing 4,500 photos and videos depicting the sexual abuse of children, including infants and toddlers.

Jacob Lee Holt, 46, was sentenced to 162 months in federal prison and a life term of supervised release.

According to court documents, Kik Messenger, an instant messaging mobile application, reported that one of its users had shared child sexual abuse material. Special Agents from Homeland Security Investigations (HSI) traced the Kik account to Holt and determined that some of the images he shared depicted child victims previously identified by the National Center for Missing and Exploited Children (NCMEC).

In March 2018, investigators served a federal search warrant on Holt’s Medford residence. They located and seized six digital devices, three of which were later found to contain thousands of images and videos depicting child sexual abuse. Holt’s illicit collection included graphic violent images involving infants, toddlers, sadomasochistic conduct, and bestiality.

On March 30, 2020, Holt was charged by criminal complaint with receipt and possession of child pornography. Later, on August 20, 2020, a federal grand jury in Medford indicted him on the same charges. On November 24, 2020, Holt pleaded guilty.

In 2001, when he was 24, Holt raped a 13-year-old girl at a party. He was convicted in 2007 in Klamath County Circuit Court for second degree sexual abuse and sentenced to 30 days in prison and three years’ probation.

This case was investigated by HSI and the Southern Oregon High-Tech Crimes Task Force with assistance from the Medford Police Department and Josephine County Sheriff’s Office. It was prosecuted by Judi Harper, Assistant U.S. Attorney for the District of Oregon.

Anyone who has information about the physical abuse or online exploitation of children are encouraged to contact HSI at (866) 347-2423 or submit a tip online at report.cybertip.org.

Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit NCMEC’s website at www.missingkids.org.

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

Created in January 2007, the Southern Oregon High-Tech Crimes Task Force provides cybercrime investigations and digital evidence forensic analysis for federal, state, and local law enforcement agencies in Southern Oregon. Member agencies include the Medford Police Department, Oregon State Police, the Jackson County Sheriff and District Attorney’s Offices, and HSI.

PORTLAND, Ore.—A federal jury in Portland found a local man with several prior felony convictions guilty today on multiple drug, gun, and money laundering charges.

Dontae Lamont Hunt, 41, a Portland resident, was found guilty of conspiracy to possess with intent to distribute and distribute fentanyl analogue, possession with intent to distribute fentanyl analogue, and two counts each of possession of a firearm as a convicted felon and money laundering.

In September 2005, Hunt was sentenced to 240 months in federal prison and eight years’ supervised release after pleading guilty to possessing with intent to distribute crack cocaine and carrying a firearm during and in relation to a drug trafficking crime. In October 2016, Hunt was released from prison early after receiving a presidential sentence commutation.

According to court documents and trial testimony, in December 2017, Hunt was shot multiple times outside an apartment building in Eugene, Oregon. A surveillance video of the shooting showed Hunt walking in a nearby parking lot while talking on a cellphone and carrying a satchel. Immediately after the shooting, Hunt’s girlfriend came to his aid, retrieved the satchel, and placed it in a vehicle used to drop Hunt off at a Eugene hospital.

After departing the hospital, the vehicle was stopped by Eugene Police Department officers for a traffic violation and searched. Officers recovered a bloodstained satchel containing two loaded firearms, both of which were determined to have Hunt’s DNA on them. Back at the shooting scene, officers found a large amount of blood and an iPhone near where Hunt was shot.

On the phone, which was linked to Hunt, investigators found evidence of drug trafficking, including text messages and photos of what appeared to be counterfeit Oxycodone pills. Further investigation revealed that Hunt distributed counterfeit Oxycodone pills containing carfentanil, a powerful fentanyl analogue, in and around Portland and that his drug trafficking was connected to a fatal drug overdose in June 2018.

In September 2018, investigators searched three properties linked to Hunt, including his residence in Northeast Portland. At his residence, Hunt refused commands to surrender and remained alone upstairs for approximately 15 minutes. After he was taken into custody, Portland Police Bureau officers found blue pills adjacent to an upstairs toilet, consistent with and indicative of him disposing of evidence. Agents also located several dozen additional blue pills concealed in a jar of baby ointment, three firearms, and a gun box labeled with the make, model, and serial number of one of the firearms found in the bloodstained satchel in Eugene. Lab reports later confirmed the pills seized contained fentanyl analogue. Additional cellphones seized from Hunt’s residence also contained evidence of his drug trafficking activities. Agents also recovered more than $40,00 in cash and seized multiple vehicles.

Hunt will be sentenced on February 10, 2023, by U.S. District Court Judge Karin J. Immergut.

While awaiting trial, Hunt was housed at Federal Correctional Institution (FCI) in Sheridan, Oregon. During this time, a federal corrections officer used his position to introduce contraband—including narcotics, designer sneakers, and a cell phone—into the prison for the benefit of Hunt and other inmates. The now-former corrections officer pleaded guilty in May 2022 for his role in the bribery and contraband smuggling scheme.

This case was investigated jointly by the Portland Police Bureau, IRS-Criminal Investigation, and FBI with assistance from U.S. Drug Enforcement Administration and the Eugene Police Department. It is being prosecuted by Peter Sax, Gary Sussman, and Suzanne Miles, Assistant U.S. Attorneys for the District of Oregon. Forfeiture litigation was handled by Assistant U.S. Attorney Julia Jarrett.

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

PORTLAND, Ore.—U.S. Attorney Natalie Wight announced today the appointment of two District Election Officers to oversee the handling of complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud in the District of Oregon for the upcoming November 8, 2022, general election.

Assistant U.S. Attorneys Quinn P. Harrington and Austin Rice-Stitt will lead the office’s efforts in coordination with the Justice Department’s nationwide Election Day Program.

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The department will address these violations wherever they occur. The department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).

If you or someone you know is in immediate danger, please call 911.

The FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The FBI Portland Field Office can be reached by calling (503) 224-4181.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, D.C. by calling (800) 253-3931 or submitting an online complaint form at https://civilrights.justice.gov.

If you have questions about the Justice Department’s Election Day Program in Oregon or need assistance directing election-related complaints to the proper authorities, District Election Officers Harrington and Rice-Stitt can be reached by calling (503) 727-1000.

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

MEDFORD, Ore.—An indictment was unsealed in federal court today charging six Texas men for conspiring with one another to travel from Texas to Southern Oregon to commit an armed robbery of marijuana while disguised as agents from the U.S. Drug Enforcement Administration.

Nevin Cuevas Morales, 21, Michael Ray Acuna, 20, Jose Manuel Lopez, 22, Alan Jaasiel Lopez, 19, Jordan Allen Gammage, 19, and Juan Carlos Conchas, 20, all of San Antonio, Texas, have been charged with conspiracy to interfere with commerce by robbery, conspiracy to possess with intent to distribute marijuana, and using, carrying, and brandishing a firearm in furtherance of a drug trafficking crime.

According to court documents, in the afternoon of March 12, 2022, local law enforcement officers were dispatched to a rural address in Josephine County, Oregon after receiving reports of a possible armed robbery in progress. Minutes later, officers arrived on scene to find a residence with a closed driveway gate and two empty vehicles running in the driveway with all their doors open. The officers observed multiple individuals running toward the back of the property. Victims found in the residence told the officers that multiple armed individuals dressed in DEA attire and wearing body armor arrived at the property and restrained several of the victims with zip ties and duct tape.

The officers quickly cleared the residence and outbuildings and proceeded to search the property and idling vehicles. Inside the residence, garage, and outbuildings, they found numerous plastic totes containing packaged marijuana. They found more packaged marijuana in the vehicles and body armor, badges, firearms, ammunition, and shell casings dumped along the path the suspects fled on near the rear of the property. The badges located resembled those carried by DEA agents. Nearly all the outbuildings on the property appeared to be broken into.

Law enforcement conducted an extensive investigation to determine the identity of the robbers. They soon learned that, in late February, the group traveled from San Antonio, Texas to Southern Oregon, staying in multiple hotels. After arriving in Oregon, the group put on their DEA attire and posed, with firearms, for a photo in a hotel room. Investigators located and seized the incriminating photos and multiple text message conversations in which the conspirators discussed their robbery plans.

Local authorities arrested Alan Lopez the same day as the robbery in Josephine County. On October 14, 2022, after being transferred to federal custody, he made his first appearance in federal court in Medford and remains detained pending further court proceedings.

On October 6, 2022, Morales and Acuna were located and arrested in San Antonio. One week later, on October 13, 2022, Conchas and Jose Lopez were also arrested in San Antonio. All four made their first appearances in federal court in the Western District of Texas and were ordered detained pending transfer to the District of Oregon.

Jordan Gammage is currently at large and believed to be in the San Antonio area.

Conspiracy to interfere with commerce by robbery and conspiracy to possess with intent to distribute marijuana are punishable by up to 10 and 40 years in prison, respectively. Using, carrying, and brandishing a firearm in furtherance of a drug trafficking crime is punishable by up to life in prison.

This case was investigated by the FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from the Josephine County Sheriff’s Office and the Texas Department of Public Safety. Assistant U.S. Attorneys Marco Boccato and Amy Potter are prosecuting the case.

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

PORTLAND, Ore.—A federal jury in Portland found two longtime Hoover Criminal Gang members guilty today for conspiring to commit racketeering through various criminal acts spanning decades, including murder, robbery, and drug dealing.

Lorenzo Laron Jones, 49, and Ronald Clayton Rhodes, 37, both residents of Portland, were found guilty of racketeering conspiracy, murder in aid of racketeering, and using and carrying a firearm during a crime of violence.

“Prosecuting violent street gangs as racketeering enterprises is a powerful law enforcement tool we believe will reduce shootings in Portland and begin to restore the safe, vibrant community the public deserves,” said Steven T. Mygrant, Chief of the Narcotics and Criminal Enterprises Unit of the U.S. Attorney’s Office for the District of Oregon. “Today’s convictions are an important milestone, but only the beginning of our effort to hold accountable all those responsible for gun violence in Portland.”

“When groups like this flood local streets with violence, the most effective response is for team law enforcement, the FBI, the U.S. Attorney's Office, alongside state and local law enforcement, to come together and leverage our most sophisticated investigative and prosecutorial methods. The most powerful response is a joint response,” says Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Field Office. “These convictions cannot undo the damage that has been done but we hope it sends a clear message that we will continue to pursue the most violent and persistent offenders and hold them accountable for their blatant disregard for human life and the safety of our communities.”

“This verdict is the culmination of a tremendous amount of work by everyone involved and highlights how, working together with multiple law enforcement agencies, we are now able to hold gang members responsible for homicides and firearm related crimes and provide some closure to the victims and their families,” said Commander Timothy Robinson of the Portland Police Bureau’s Detective Division. “I would especially like to thank current and former detectives. They worked tirelessly on these cases, while still shouldering an ever-increasing caseload. Their search for justice and dedication to our community is unwavering.”

According to court documents, the Hoovers are a criminal street gang operating in Oregon known to engage in acts of violence including murder, robbery, and drug dealing. The Hoovers originated in Los Angeles in the late 1960s and established a presence in Portland in the early 1980s. The gang has a loose hierarchical structure in which members have different amounts of power and influence based on age and gang activity. To maintain status and increase one’s position in the gang, members are expected to carry out violence on behalf of the enterprise.

The Hoovers are rivals with many Portland gangs, including multiple Blood and Crip sets, and are self-described “everybody killers.” Hoover members are expected to use violence to retaliate any perceived slight or actual act of violence against a Hoover member or ally.

Jones and Rhodes are longtime Hoover members who, together, have engaged in a 30-year pattern of violent racketeering activity. As senior members of the gang, Jones and Rhodes mentored younger members and new recruits, using them to conduct business and violence on behalf of the gang.

During trial, the government proved beyond a reasonable doubt that Jones murdered Wilbert Butler on September 17, 2017, in Portland. Jones was also proven to have engaged in multiple attempted murders, illegally possessed firearms as a convicted felon, and distributed controlled substances throughout the Portland area. Among other criminal acts, Rhodes was convicted of participating in the murder of Portland resident Kyle Polk on December 16, 2015, near a convenience store in southeast Portland.

On November 7, 2019, a federal grand jury in Portland returned a 13-count superseding indictment charging Jones, Rhodes, and two accomplices with racketeering conspiracy, murder in aid of racketeering, using and carrying a firearm during a crime of violence and causing death through the use of a firearm.

Jones and Rhodes face mandatory life sentences in federal prison. They will be sentenced by U.S. District Court Judge Michael J. McShane at a later date.

As part of the government’s ongoing investigation into the Hoover Criminal Gang’s racketeering activities, several other Hoover members and associates face pending federal charges or have been convicted and sentenced in federal court for crimes committed in support or on behalf of the gang’s criminal enterprise.

This case was investigated by the FBI, Portland Police Bureau, and Multnomah County Sheriff’s Office with assistance from the Gresham Police Department and Homeland Security Investigations (HSI). It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

PORTLAND, Ore.— The U.S. Attorney’s Office announced today that the Department of Justice has awarded more than $198,000 to support the Project Safe Neighborhoods Program in the District of Oregon. The grant funds—administered by the Bureau of Justice Assistance, part of the department’s Office of Justice Programs—will support community efforts to address the epidemic of gun crime and serious violence in Oregon.

Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Justice Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key principles: fostering trust and legitimacy in our communities; supporting community-based organizations that help prevent violence from occurring in the first place; setting focused and strategic enforcement priorities; and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.

“The Justice Department’s grants provide resources for our state and local law partners to help protect individuals and communities from violent crime,” said Associate Attorney General Vanita Gupta. “Through Project Safe Neighborhoods, the Department is taking a comprehensive approach, recognizing that we cannot simply arrest our way out of this problem—the resources in these grants will help our state and local partners reduce gun violence through increased community trust and investments in community-based initiatives like violence intervention programs.”

PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.

“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”

The awards announced today are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.

The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.

PORTLAND, Ore.—A Gresham, Oregon man pleaded guilty today for stealing more than $77,000 in funds intended to help small businesses during the COVID-19 pandemic. 

Justin Allen Cunningham, 40, pleaded guilty to one count of wire fraud.

According to court documents, in the late summer or early winter of 2021, Cunningham learned from friends about the opportunity to procure Paycheck Protection Program (PPP) loans guaranteed by the U.S. Small Business Administration (SBA) by submitting fraudulent loan applications on behalf of fake business entities. The PPP program, originally authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress in March 2020, provided emergency financial assistance to American employers suffering the economic effects of the COVID-19 pandemic and resulting shutdowns.

To facilitate his scheme, Cunningham paid his friends for their help securing him a loan on behalf of a sole proprietorship he ran as a hobby: an online sneaker retailer called “JC shoe juice.” Cunningham obtained an employer identification number from the IRS and opened an online business bank account. He provided this information to a friend who created bogus tax returns for Cunningham’s company and submitted a PPP loan application on his behalf. The loan application falsely claimed that JC shoe juice had operated since 2015, had six employees, and generated more than $460,000 in gross income in 2019. As a result of these false representations, Cunningham was issued a loan worth more than $77,000.

On January 21, 2022, a federal grand jury in Portland returned an indictment charging Cunningham with one count of wire fraud.

Cunningham faces a maximum sentence of 20 years in prison, a $250,000 fine or twice his gross gains or his victims’ gross losses, and three years’ supervised release. He will be sentenced on January 23, 2023, by U.S. District Court Judge Karin J. Immergut.

As part of his plea agreement, Cunningham has agreed to pay more than $81,000 in restitution to SBA and ReadyCap Lending, LLC, the business lending company that issued Cunningham the PPP loan.

This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, and the FBI. Assistant U.S. Attorney Ryan W. Bounds is prosecuting the case.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Two Portland area men are facing federal charges today for running a local drug trafficking organization responsible for making and distributing hundreds of thousands of counterfeit Oxycodone pills containing fentanyl.

James Dunn, Jr., 61, of Milwaukie, Oregon and Joshua Clay Wilfong, 50, of Vancouver, Washington have been charged by criminal complaint with conspiring with one another and others to manufacture, distribute, and possess with intent to distribute fentanyl and possessing with intent to distribute fentanyl.

According to court documents, in May 2021, law enforcements officials from Homeland Security Investigations (HSI), FBI, the Clackamas County Interagency Task Force (CCITF) and the Clark County Sheriff’s Office began investigating a drug trafficking organization allegedly run by Dunn and Wilfong that was responsible for manufacturing and distributing hundreds of thousands of counterfeit Oxycodone pills containing fentanyl in the greater Portland Metropolitan Area. 

The investigation revealed that Dunn purchased fentanyl in Mexico and smuggled it into the U.S. for use as an active ingredient in counterfeit prescription pills. Dunn would give the fentanyl to Wilfong who would produce the pills in a makeshift laboratory he maintained inside a storage unit in Vancouver. On October 12, 2022, Wilfong and Dunn were arrested while they were negotiating the sale of more than 300,000 fentanyl pills.

Investigators executed a search warrant on Wilfong’s storage unit and found a pill press and laboratory equipment covered in suspected fentanyl powder. Investigators later learned Wilfong and Dunn routinely sold hundreds of thousands of fentanyl pills in single transactions and sold an average of 10,000 pills a week.

Dunn and Wilfong made their initial appearances in federal court today before U.S. Magistrate Judge Jolie A. Russo. They were ordered detained as a flight risk and danger to the community pending further court proceedings.

This case is being investigated by HSI, FBI, CCITF, and the Clark County Sheriff’s Office. Scott Kerin, Assistant U.S. Attorney for the District of Oregon, is prosecuting the case.

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

CCITF, led by the Clackamas County Sheriff’s Office, works to disrupt and dismantle drug trafficking organizations operating in Clackamas County, and reduce illegal drugs and related crimes throughout the community. The task force is comprised of members of the Clackamas County Sheriff’s Office, Canby Police Department, Oregon State Police, HSI, and FBI.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male. The availability of illicit fentanyl in Oregon has caused a dramatic increase in overdose deaths throughout the state.

If you are in immediate danger, please call 911.

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

Fentanyl pill lab showing manufacturing equipment Fentanyl pill lab showing manufacturing equipment 10 clear bags of seized blue fentanyl pills

 

PORTLAND, Ore.—On October 12, 2022, a federal jury in Portland found a Philomath, Oregon man guilty for failing to register as a sex offender.

Daniel Lynn Goering-Runyan, 37, was found guilty of one count of failing to register as a sex offender in violation of the Sex Offender Registration and Notification Act (SORNA).

“The Sex Offender Registration and Notification Act is an important law enforcement tool that helps break cycles of victimization in our communities. This case is a great example of the incredible work the U.S. Marshals Service does every day to locate and apprehend sex offenders who fail to register. Our communities are safer because of their dedication,” said Natalie Wight, U.S. Attorney for the District of Oregon.

According to court documents, in September 2014, Goering-Runyan was sentenced to 12 to 15 years in Nebraska state prison after he was convicted of sexually assaulting a five-year-old girl. At his sentencing hearing, Goering-Runyan acknowledged, on the record, that his conviction would require him to register as a sex offender. He reviewed and signed five more notices of his sex-offender registration obligations while in prison. Upon his release from prison in September 2021, Goering-Runyan signed a certificate of service acknowledging his receipt of a letter from the Nebraska State Patrol advising him of his lifetime requirement to register as a sex offender.

Upon his release from prison, Goering-Runyan properly registered as a sex offender in Nebraska. Two months later, in late November 2021, he told Nebraska officials he was relocating to Houston, Texas. A Nebraska official told him to register as a sex offender with the sheriff in Houston within three days of his arrival. Goering-Runyan never registered. Three weeks later, he traveled by bus to Corvallis, Oregon, arriving on December 25, 2021.

Over the next four months, Goering-Runyan lived in several places in and around Corvallis. He properly obtained an Oregon Identification from the Department of Motor Vehicles in early May, declaring himself an Oregon resident, but never registered as a sex offender as required under Oregon and federal law.

On May 3, 2022, a federal grand jury in Portland returned an indictment charging Goering-Runyan with one count of failing to register as a sex offender. The following day, on May 4, 2022, he was arrested by the Corvallis Police Department.

Failing to register as a sex offender is punishable by up to 10 years in federal prison. Goering-Runyan will be sentenced on November 30, 2022, by U.S. District Court Chief Judge Marco A. Hernández.

This case was investigated by the U.S. Marshals Service in Portland and Omaha, Nebraska with assistance from the Oregon State Police, the Corvallis and Philomath Police Departments, the Benton County Sheriff’s Office, and the Lancaster County (Nebraska) Sheriff’s Office. It was prosecuted by Bryan Chinwuba, Assistant U.S. Attorney for the District of Oregon.

The Sex Offender Registration and Notification Act (SORNA) is Title I of the Adam Walsh Child Protection and Safety Act of 2006. The act provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. The U.S. Marshals Service is the federal government’s lead law enforcement agency for sex offender and fugitive investigations.

PORTLAND, Ore.—Dennis “Denny” Doyle, the former mayor of Beaverton, Oregon, pleaded guilty today in federal court to illegally possessing child pornography.

Doyle, 73, a Beaverton resident, waived indictment and pleaded guilty to a single count of possession of child pornography.

According to court documents, between November 2014 and December 2015, Doyle knowingly and unlawfully possessed digital media containing child pornography. Several of the images Doyle possessed were of children under the age of 12 who had been identified as known sexually exploited minors by the National Center for Missing and Exploited Children (NCMEC).

On March 3, 2022, Doyle was charged by criminal information with one count of possession of child pornography.

Doyle will be sentenced on January 24, 2023, by U.S. District Court Judge Michael W. Mosman.

This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF). It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon. 

Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.

Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. Child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document victims’ exploitation and abuse, but when shared across the internet, child victims suffer re-victimization each time the image of their abuse is viewed. To learn more, please visit the NCMEC’s website at www.missingkids.org.

The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.

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

PORTLAND, Ore.—A La Grande, Oregon man faces federal charges today after he sexually abused and transported across state lines two minors he met on Snapchat.

Albert Wayne Johnson, 40, has been charged by criminal complaint with coercing and enticing a minor to engage in sexual activity and transporting a minor with the intent to engage in criminal sexual conduct.

According to court documents, on August 8, 2022, deputies from the Clackamas County Sheriff’s Office responded to a call of two minors abandoned at Barton Park in Boring, Oregon. The children told the deputies they met Johnson on Snapchat and that he had driven them from Washington State through Idaho and into Oregon and had sexually abused both repeatedly during the trip. Along the way, Johnson stopped at a motel in Othello, Washington and a campground in La Grande where he continued abusing both children. After arriving in Boring, Johnson left the children at a campsite in Barton Park and never returned.

On August 18, 2022, after receiving information about the abduction and alleged abuse that occurred in Othello, detectives from the Othello Police Department contacted the motel in Othello and obtained surveillance footage showing Johnson with the two children.

On August 30, 2022, officers and deputies from the La Grande Police Department, Union County Sheriff’s Office, Union County Probation Department, and Umatilla Tribal Police Department located Johnson at his residence in La Grande and arrested him on an outstanding parole violation warrant.

Johnson made his initial appearance in federal court today before U.S. Magistrate Judge Youlee Yim You. He was ordered detained pending further court proceedings.

Coercing and enticing a minor to engage in sexual activity and transporting a minor with the intent to engage in criminal sexual conduct are both punishable by up to life in prison with 10-year mandatory minimum sentences per count of conviction.

This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the Othello Police Department, La Grande Police Department, Union County Sheriff’s Office, Union County Probation Department, Umatilla Tribal Police Department, and Clackamas County Sheriff’s Office. Assistant U.S. Attorney Ashley Cadotte is prosecuting the case.

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

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

The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.

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

MEDFORD, Ore.—A Medford man with previous felony convictions for his involvement in two Medford area shootings was sentenced to federal prison today after he was found by police in possession of a firearm.

Hunter Talon Marlow, 26, was sentenced to 60 months in federal prison and three years’ supervised release.

According to court documents, on October 20, 2021, a witness contacted law enforcement after observing Marlow actively searching for a person who had shot at him in an attempt to retaliate. Marlow, who was previously convicted and served time in prison for shootings in 2014 and 2017, was prohibited from using or possessing a firearm. Later on October 20th, an officer from the Medford Police Department observed Marlow driving and attempted a felony traffic stop. After initially refusing to comply, Marlow surrendered to offices and was arrested. Officers found a loaded semi-automatic pistol with attached forty-round drum magazine in Marlow’s car.

On February 3, 2022, a federal grand jury in Medford returned an indictment charging Marlow with illegally possessing a firearm and ammunition as a convicted felon. On June 22, 2022, Marlow pleaded guilty to the single charge.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Medford Police Department. It was prosecuted by Marco Boccato, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—Today, the U.S. Attorney’s Office for the District of Oregon joins its partners at the Environmental Protection Agency (EPA) and other federal regulatory agencies in encouraging Oregonians to report all known or suspected environmental crimes.

The U.S. Attorney’s Office for the District of Oregon enforces federal laws to protect environmental quality, human health, and wildlife throughout the State of Oregon. The office works with its partners throughout the Department of Justice to hold those who violate environmental law accountable, prioritizing cases that will reduce environmental harms to historically underserved, overburdened, and marginalized communities.

The district’s environmental crimes and justice coordinators lead efforts to enforce both criminal and civil environmental laws. Intentionally violating environmental laws—including, but not limited to, the Clean Air Act, Clean Water Act, and hazardous waste laws—is a federal crime and can be punishable by incarceration or monetary fines.

Examples of criminal or civil environmental violations include:

• A landlord who leases a home without disclosing known information about lead-based paint
• A federal contractor who violates a contractual provision mandating the proper disposal of hazardous waste
• Illegal asbestos removals that expose and create health risks for workers and the public
• Illegal handling, transportation, and disposal of hazardous wastes or pesticides
• Oil spills or other incidents that compromise the fishing rights or practices of indigenous or disadvantaged communities
• Air emissions of toxic pollutants resulting from inadequate or nonexistent pollution control
• False statements to the EPA or other regulatory agencies that threaten the integrity of environmental protection programs

If you are in danger, please call 911.

If you or someone you know believe you are the victim of an environmental crime or believe you have witnessed an environmental crime, please contact the Environmental Protection Agency’s National Response Center by calling 1-800-424-8802 or by submitting a tip online at https://echo.epa.gov/report-environmental-violations.

In May 2022, Attorney General Merrick B. Garland announced a series of actions to secure environmental justice for all Americans. In addition to launching a new Office of Environmental Justice within the Justice Department, Attorney General Garland also announced a new comprehensive environmental justice enforcement strategy to guide the Justice Department’s work and issued an Interim Final Rule that will restore the use of supplemental environmental projects in appropriate circumstances.

PORTLAND, Ore.—An Oregon man has been charged with federal child exploitation crimes after he persuaded a child to engage in a sexually explicit video chat with him on Discord, a popular instant messaging social platform.

Jason Kroeskop, 40, of The Dalles, Oregon, has been charged by criminal complaint with enticing and sexually exploiting a child online.

According to court documents, in August 2022, special agents from Homeland Security Investigations (HSI) in Tulsa, Oklahoma were contacted by local law enforcement to request assistance with an investigation involving the online exploitation of a child under 12. Investigators discovered that Kroeskop pretended to be an Oregon teenager to convince the child to engage in sexually explicit acts during a video chat on Discord. He also recorded the video chat without the victim’s knowledge.

Investigators tracked Kroeskop’s Discord account, “Noctis Lucis #7347,” to an internet protocol address registered to his residence in The Dalles. On September 29, 2022, HSI special agents from Portland contacted Kroeskop at his place of employment. Kroeskop agreed to talk with the agents and admitted to having engaged in sexually explicit communications with multiple children online since at least 2021 using Discord, Snapchat, and Omegle. He was later arrested without incident.

On September 30, 2022, Kroeskop made his initial appearance in federal court before U.S. Magistrate Judge Jeffrey Armistead. He was detained pending further court proceedings.

This case was investigated by HSI Portland and The Dalles Police Department with assistance from HSI Tulsa. It is being prosecuted by Mira Chernick, Assistant U.S. Attorney for the District of Oregon.

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

Anyone who has information about other crimes committed by Kroeskop, or the physical or online exploitation of any children, are encouraged to contact HSI at (866) 347-2423 or submit a tip online at report.cybertip.org.

Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.

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

PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that full restitution of over $600,000 was obtained from the former operators of two Portland-area strip clubs who were convicted at trial in 2016 for conspiring to defraud the IRS and Oregon Department of Revenue out of hundreds of thousands of dollars in business taxes owed.

On Sept. 23, 2022, the Clerk of the Court for the District of Oregon received a payment of $608,217, which was full payment of the outstanding restitution balance of David, George, and Daniel Kiraz. The Kirazes previously had paid less than ten percent of their original $657,243 restitution order.

 “I am proud of our Financial Litigation Program for their hard work in securing this full restitution payment, and for their commitment to helping crime victims by diligently investigating these cases,” said Natalie Wight, U.S. Attorney for the District of Oregon.

“Today’s restitution payment is the culmination of many years of dogged effort made by our agency and by our partners at the U.S. Attorney’s Office. This is a success we can all share in, as the funds secured today will be used for the benefit of our communities,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office.

According to court documents, David Kiraz, 40, of Happy Valley, Oregon, along with his father and brother—George Kiraz, 62, and Daniel Kiraz, 37, both of Portland—operated two Portland-area strip clubs, the Cabaret Lounge on West Burnside Street in Portland and Cabaret Lounge II on Southeast Stark Street in Gresham, Oregon. From 2007 through 2010, these clubs collected more than $1.5 million in cash for cover charges and dancer stage fees.

To conceal their total business income from the IRS, the Kirazes maintained a set of books at their clubs that did not include their cash payments, while maintaining a second set of books at David Kiraz’s home that tracked their actual receipts in full. The Kirazes reported their business activity on David Kiraz’s personal income tax return and provided their tax return preparers with only a two-page business financial summary compiled from their manipulated records. Together, these actions resulted in David Kiraz intentionally underreporting more than $1.5 million in taxable income and causing a combined state and federal tax loss of more than $649,000.

On April 8, 2015, a federal grand jury in Portland returned a seven-count indictment charging the Kirazes with conspiring with one another to defraud the United States, filing false income tax returns, and aiding and assisting in the preparation of false income tax returns. On May 26, 2016, after a six-day trial, they were found guilty. 

On Tuesday, October 25, 2016, David and George Kiraz were sentenced to three years in federal prison and three years of supervised release. Daniel Kiraz was sentenced to one year and one day in federal prison.

This case was originally investigated by IRS:CI. It was prosecuted by Quinn Harrington and Seth Uram, Assistant U.S. Attorneys for the District of Oregon, and Leslie Goemaat, Trial Attorney for the Justice Department’s Tax Division. 

Enforcement of the Kirazes’ restitution order was handled by Assistant U.S. Attorney Jessie D. Young and the staff and investigators of the U.S. Attorney’s Office’s Financial Litigation Program.

The District of Oregon’s Financial Litigation Program (FLP) is part of the U.S. Attorney’s Office’s Asset Recovery and Money Laundering Division. The mission and goal of FLP is to fairly achieve the maximum recovery of civil and criminal debts consistent with applicable laws, regulations, and Justice Department policies. FLP attorneys and support staff work with individuals subject to restitution orders to bring closure for crime victims and recoup losses incurred by United States taxpayers.

PORTLAND, Ore.—A 42-year-old Portland man is facing federal charges for targeting and selling drugs to local high school students.

Jonathon Ash Clark aka “Jonathan Ash Clark” has been charged by federal criminal complaint with possessing with intent to distribute a controlled substance, distributing a controlled substance to a person under the age of 21, and using a minor in drug operations.

According to court documents, on September 28, 2022, Portland Public Schools officials contacted the Portland Police Bureau (PPB) to request assistance locating a missing student. School officials received word that the student was last observed with Clark, a suspected supplier of drugs for students. To quickly locate the student, responding PPB officers requested the assistance of the bureau’s Narcotics and Organized Crime Unit (NOC), the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) Interdiction Task Force (HIT), and Homeland Security Investigations (HSI).

Investigators soon located the missing student with Clark in Powell Park in southeast Portland. Officers contacted Clark and learned that he had an outstanding arrest warrant in Clackamas County for violating a protective order. During his arrest, officers searched Clark’s backpack and located small amounts of cocaine and MDMA, and a digital scale covered in white powder residue. Clark later admitted to selling drugs to minors.

Clark will make his initial appearance in federal court today before U.S. Magistrate Judge Jeffrey Armistead. The government will seek pre-trial detention.

This case was investigated by HIT, PPB NOC, and HSI. It is being prosecuted by Scott Kerin, Assistant U.S. Attorney for the District of Oregon.

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

EUGENE, Ore.—The former president and minority owner of Willamette Country Music Concerts, LLC, who planned, managed, and promoted the annual Willamette Country Music Festival in Linn County, Oregon, pleaded guilty today after she falsified bank statements and financial summaries to influence the sale of her stake in the company.

Anne Hankins, 53, a resident of Springfield, Oregon, pleaded guilty to one count each of wire fraud and money laundering.

“With today’s guilty plea, Ms. Hankins has proven herself to be a serial fraudster,” said Craig Gabriel, Criminal Chief for the U.S. Attorney’s Office. “Falsifying bank statements and laundering money to fraudulently inflate the value of a company are serious federal crimes.”

“Ms. Hankins blatantly deceived her business associate and stole money that never belonged to her. However, today the curtains have come down and Ms. Hankins is facing the music for her fraud,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office.

According to court documents, as former minority owner of Willamette Country Music Concerts (WCMC), Hankins owned 49% of the company. As president of WCMC, Hankins was responsible for preparing monthly financial statements which she provided by email to the company’s majority owner who was based in Beverley Hills, California.

Beginning in September 2016 and continuing until March 2018, Hankins provided altered banks statements and false financial summaries to the majority owner to conceal WCMC’s true financial condition. In November 2017, the majority owner approached Hankins about purchasing her stake in the company and having Hankins continue to serve as the company’s president.

On or about February 7, 2018, Hankins sent an updated financial summary to the majority owner falsely reporting that the company had approximately $1.1 million in its operating account. In reality, there was only $16,000 in the company’s account. Based on these false financial statements, on March 1, 2018, the majority owner purchased Hankins’ stake in the company for $1.5 million.

After receiving the majority owner’s payment, Hankins directed her credit union to issue a cashier’s check from her account to the Clerk of the Court for the District of Oregon to satisfy a restitution order on a previous bank fraud conviction from 2001. Hankins thereby laundered the proceeds from one crime to pay her restitution on another.

On September 12, 2022, Hankins was charged by criminal information with one count each of wire fraud and money laundering.

Wire fraud is punishable by up to 20 years in federal prison and money laundering by up to 10 years in federal prison. Both charges also may result in fines of up to $250,000, or twice the gross gains or losses resulting from the offense, and three years’ supervised release.

Hankins will be sentenced on January 5, 2023, by U.S. District Court Judge Michael J. McShane.

As part of her plea agreement, Hankins has agreed to pay restitution as identified by the government and ordered by the court.

This case was investigated by IRS:CI and the FBI, and is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging an Eastern Oregon man with distributing large quantities of fentanyl and methamphetamine in and around Umatilla County, Oregon.

Edain Laurel Lozano, 35, of Umatilla County, Oregon has been charged with possessing with intent to distribute fentanyl and methamphetamine and possessing a firearm in furtherance of a drug trafficking crime.

According to court documents, between May and September 2022, special agents from the FBI and officers from the Blue Mountain Enforcement Narcotics Team (BENT) set up, conducted, and surveilled multiple controlled purchases of methamphetamine and fentanyl-laced pills from Lozano. Each subsequent controlled purchase involved requesting and purchasing increasing quantities of the narcotics from Lozano. By the final controlled purchase, Lozano had agreed to sell multiple pounds of methamphetamine and several thousand counterfeit pills containing fentanyl.

On September 7, 2022, Lozano was arrested and consented to a search of his vehicle. Investigators located and seized over four pounds of methamphetamine, more than 5,000 counterfeit pills containing fentanyl, drug packaging materials, a digital scale, and a stolen handgun.

On September 23, 2022, Lozano was arraigned on the indictment and pleaded not guilty. Over the government’s objection, he was released on conditions pending a three-day jury trial scheduled to begin on November 8, 2022.

If convicted, Lozano faces a maximum sentence of life in prison with a 15-year mandatory minimum, five years’ supervised release, and a $10 million fine.

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

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

BENT is a regional drug task force founded in 1986 by the Pendleton Police Department and Oregon State Police. In 2005, BENT was designated as a High Intensity Drug Trafficking (HIDTA) task force by the White House Office of National Drug Control Policy (ONDCP). Current BENT member agencies include the Pendleton Police Department, Oregon State Police, FBI, Morrow County Sheriff’s Office, Oregon National Guard, Boardman Police Department, Milton-Freewater Police Department, Hermiston Police Department, and Umatilla Tribal Police Department.

EUGENE, Ore.—An Oregon man pleaded guilty today after twice breaking windows and destroying property at a Planned Parenthood clinic in Grants Pass, Oregon because the clinic provides reproductive health services.

Devin Friedrick Kruse, 27, pleaded guilty to two counts of violating the Freedom of Access to Clinic Entrances (FACE) Act. 

“The Justice Department will not tolerate unlawful and violent conduct that interferes with the work of reproductive health clinics,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This conviction should send a strong message that we will use federal civil rights law to protect clinics and staff that provide reproductive health services while safeguarding the rights of their patients.”

“The First Amendment does not allow individuals to violate the civils rights of others. In this case, Mr. Kruse’s destructive and intimidating acts prevented women from accessing vital reproductive and pregnancy health services,” said Natalie Wight, U.S. Attorney for the District of Oregon.

“Citizens have a legal right to peacefully protest, but Mr. Kruse’s actions of repeated violence toward a Planned Parenthood clinic crossed a line,” said Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Field Office. “The FBI will continue to work with our federal, state, and local law enforcement partners to ensure the safety of our communities while respecting individuals' First Amendment rights.”

According to court documents, on November 23, 2021, Kruse broke five security cameras, a window, and a sign at a Planned Parenthood clinic in Grants Pass. Three days later, on November 26, 2021, Kruse returned and threw a concrete block through the clinic’s window, tore down an intercom system, and broke several light bulbs. Kruse later admitted to damaging the facility because he was angry at Planned Parenthood for providing abortion services.

On February 24, 2022, Kruse was charged by misdemeanor criminal information with two counts of violating the FACE Act.

Under the FACE Act, first offenses involving property destruction are charged as misdemeanors punishable by up to one year in federal prison. Subsequent violations are charged as felony offenses.

Kruse will be sentenced on January 5, 2023, by U.S. District Court Judge Ann L. Aiken.

As part of his plea agreement, Kruse has agreed to pay restitution in full to Planned Parenthood as identified by the government prior to sentencing and ordered by the court.

This case was investigated by the FBI with assistance from the Grants Pass Police Department. It is being prosecuted by Gavin W. Bruce and John C. Brassell, Assistant U.S. Attorneys for the District of Oregon, and Cameron A. Bell, Trial Attorney for the U.S. Department of Justice’s Civil Rights Division.

In 1994, Congress passed the FACE Act in response to an increase in violence toward patients and providers of reproductive health services. The FACE Act prohibits violent, threatening, damaging and obstructive conduct intended to injure, intimidate, or interfere with an individual’s right to seek, obtain, or provide reproductive health services.

If you or someone you know is in danger, please call 911.

Suspected violations of the FACE Act can be reported to the FBI by calling (503) 224-4181 or by visiting tips.fbi.gov.

EUGENE, Ore.—A Greensboro, North Carolina man was sentenced to more than 16 years in federal prison today for sexually exploiting an Oregon child using Musical.ly, a social media application now known as TikTok.

Andrew Thomas Tager, 32, was sentenced to 195 months in federal prison and 15 years’ supervised release.

According to court documents, in May 2018, when Tager was 28 years old, he posed as a female employee of Musical.ly and began communicating with a then-10-year-old Oregon child. He encouraged the child to participate in a fictional “crown program” wherein the child could earn a “crown” by sending the “employee” photos and videos of herself. The child believed earning a crown would give her access to various privileges on Musical.ly not available to other users.

Tager directed the child to produce and send him pornographic photos and videos of herself using Kik Messenger, an instant messaging mobile application. Tager instructed the child on how she should pose and move, what she should wear, what props she should use, and how long the videos needed to be. Tager further threatened the child, telling her that if she quit “the program,” her photos and videos would be released to others.

When the child’s parents found the sexually explicit photos and messages on the child’s phone, they reported the conduct to law enforcement. On May 30, 2019, after a lengthy investigation, Tager was arrested in North Carolina.

On May 2, 2019, Tager was charged by criminal complaint with production of child pornography. Later, on May 31, 2022, he was charged by criminal information with production and attempted production of child pornography. On June 6, 2022, Tager waived indictment and pleaded guilty.

As part of his sentence, Tager must also register as a sex offender.

This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the North Bend Police Department. It was prosecuted by Ashley R. Cadotte and Amy Potter, Assistant U.S. Attorneys for the District of Oregon.

Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.

The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.

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

PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging a Umatilla County, Oregon, man with attempted murder, assault with a deadly weapon and several other charges after he robbed the Wildhorse Resort and Casino on the Umatilla Indian Reservation at gunpoint and fired at least one round at a tribal police officer.

Javier Francisco Vigil, 51, has been charged with attempted murder, assault with intent to commit murder, assault with a deadly weapon, interfering with commerce by robbery, using and carrying a firearm during and in relation to a crime of violence, and illegally possessing a firearm as a convicted felon.

According to court documents, in the early afternoon on August 17, 2022, Vigil is alleged to have entered the Wildhorse Casino, walked straight to the cashier cage in the gaming area, and handed the cashier a note demanding $1 million. Vigil then drew a holstered pistol, pointed it at the cashier, and threatened to “bathe everyone in blood.” After being given nearly $70,000 in cash, Vigil exited the casino, pointed his firearm at a responding tribal police officer, and discharged at least one round. Vigil sustained injuries in an ensuing exchange of gunfire and was transported by officers to a local hospital. 

Vigil appeared in federal court today before U.S. Magistrate Judge Jolie A. Russo. He was arraigned, pleaded not guilty, and detained pending a 4-day jury trial scheduled to begin on November 1, 2022.

If convicted, Vigil faces a maximum sentence of 30 years in federal prison, 3 years’ supervised release, and a fine of $250,000.

This case is being investigated by the FBI with assistance from the Umatilla Tribal Police Department and the Hermiston Police Department. It is being prosecuted by Ashley R. Cadotte and Cassady Adams, Assistant U.S. Attorneys for the U.S Attorney’s Office in the District of Oregon.

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

PORTLAND, Ore.—A former Oregon dentist pleaded guilty today in federal court for fraudulently converting to his personal use nearly $11.5 million in loans intended to help small businesses during the COVID-19 pandemic.

Salwan Adjaj, 43, of West Linn, Oregon, pleaded guilty to wire fraud and aggravated identity theft.

According to court documents, beginning no later than September 2020 and continuing until at least May 2021, Adjaj submitted dozens of fraudulent loan applications to the Small Business Administration (SBA) in an attempt to obtain Economic Impact Disaster Loan (EIDL) and Paycheck Protection Program (PPP) funds. The EIDL and PPP programs were among several economic relief programs originally authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES). They enabled SBA to issue low-interest loans to small businesses adversely impacted by the pandemic and associated mitigation measures. 

Adjaj used the names and employer identification numbers (EIN) of fictitious business entities on his fraudulent applications. He further provided false information about the business start dates, number of employees, and locations, and the identities of the purported applicants and business owners. Most of the fraudulent applications were submitted in other peoples’ names, but with Adjaj’s personal residence as the business mailing address. All of the applications were submitted online from an internet protocol (IP) address associated with Adjaj’s dental practice.

After SBA rejected most of Adjaj’s initial EIDL applications, he began focusing primarily on the PPP program as well as the Restaurant Revitalization Fund (RRF), a pandemic economic relief program aimed at supporting restaurants, bars, and other food- and drink-related businesses. The RRF program was authorized by the American Rescue Plan Act (ARPA) in March 2021. Adjaj had substantially greater success stealing PPP and RRF funds than he did EIDL. In May 2021, Adjaj submitted three RRF applications for restaurants allegedly located Sarasota, Miami, and Daytona Beach, Florida. Like his fraudulent EIDL and PPP applications, Adjaj’s RRF applications contained false business information and all listed his personal residence as the business mailing address. 

Together, Adjaj’s fraudulent applications caused the SBA to pay out more than $11.5 million in loans, grants, and associated lender fees.

On October 14, 2021, Adjaj was charged by criminal complaint with wire fraud and aggravated identity theft. On December 14, 2021, he was arrested following a pretrial release violation and, one day later, ordered detained pending further court proceedings. Adjaj remains in custody pending sentencing.

On July 13, 2022, in a separate criminal case, Adjaj pleaded guilty to illegally distributing controlled substances, including thousands of pills of prescription drugs and anabolic steroids. Adjaj further admitted to using his position as a dentist to obtain some of the drugs he illegally distributed.

In his Covid-relief fraud case, Adjaj faces a maximum sentence of 22 years in prison, a $250,000 fine (or twice his gross gains or his victims’ gross losses), and three years’ supervised release. In his drug case, Adjaj faces a maximum sentence of 10 years in prison, a $500,000 fine, and three years of supervised release. He will be sentenced in both cases on December 6, 2022, by U.S. District Court Judge Michael W. Mosman.

As part of his plea agreement, Adjaj has agreed to pay no less than $10.5 million in restitution to SBA and his victim lenders.

This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, the U.S. Secret Service, and the FBI. Assistant U.S. Attorney Ryan W. Bounds is prosecuting the case.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

PORTLAND, Ore.—An indictment has been unsealed in federal court charging two Nigerian nationals for attempting to steal $25 million from nearly two dozen public and private entities around the United States, including at least one in Oregon.

Efeturi Ariawhorai aka Efeturi Simeon, 35, a dual citizen of Nigeria and Vanuatu who most recently resided in the United Arab Emirates, and Ikenna Nwajiaku, 41, a Nigerian national believed to be residing in or near Lagos, Nigeria, have been charged in an 11-count indictment with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.

“Federal law enforcement is determined to use every tool and capability it has to pursue cyber criminals and retrieve money mistakenly sent to unknown bank accounts. We applaud the local victim in this case for quickly reporting the crime and giving authorities the best possible chance at retrieving their money. Unfortunately, many of these situations go a different and very costly way. When in doubt, we encourage anyone who thinks they are the victim of a cyber crime to report immediately to the FBI. Time is of the essence,” said Assistant United States Attorney Quinn Harrington, Chief of the Cyber and National Security Unit of the U.S. Attorney’s Office for the District of Oregon.

“The level of greed it takes to steal from schools and hospitals, especially during the height of a global pandemic, is beyond disturbing,” said Special Agent in Charge Kieran L. Ramsey. “Through quick action from many of these victims the FBI, with our Recovery Asset Team, was able to freeze funds and return a majority of the stolen money.  In fact, we were able to recover the total loss of nearly $3 million for a victim in Oregon and keep that money out of the hands of criminals. If you are the victim of a cyber intrusion or fraud scheme please reach out to the FBI as soon as possible, we are here to help.”

According to the indictment, beginning in June 2019 and continuing until January 2021, Ariawhorai and Nwajiaku conspired with one another and others known and unknown to defraud various public and private entities located throughout the U.S., including numerous school districts, universities, colleges, and hospitals. As part of their scheme, Ariawhorai and Nwajiaku would contact organizations by email; impersonate employees of the targeted organization or professionals from other entities doing business with the target organization, such as construction companies; and convince the organizations to send payments to bank accounts controlled by third parties acting on Ariawhorai and Nwajiaku’s behalf.

To conceal their fraudulent activity, Ariawhorai and Nwajiaku used false names and various identity-concealing technologies including virtual private networks, compromised servers, and leased infrastructure. Ariawhorai and Nwajiaku would also register email addresses and internet domain names with slight variations on the names of real companies to trick victim organizations.

In total, in just over a year and a half, Ariawhorai and Nwajiaku attempted to defraud 20 victim organizations out of approximately $25.2 million. 15 of the victim organizations lost a combined $6.2 million as a result of the scheme.

Conspiracy to commit wire fraud and wire fraud are punishable by up to 20 years in federal prison and three years’ supervised release. Aggravated identity theft is punishable by up to two years in federal prison and one year of supervised release per count of conviction.

Ariawhorai and Nwajiaku are both fugitives. On November 25, 2021, Ariawhorai was arrested in Italy by Italian authorities and the United States made a formal request for his extradition. However, Ariawhorai fled house arrest prior to his transfer to the District of Oregon.

This case was investigated by the FBI. It is being prosecuted by AUSA Harrington.

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

The FBI’s Recovery Asset Team (RAT), a component of the Internet Crime Complaint Center (IC3), was established in 2018 to streamline communication with financial institutions and assist FBI field offices with freezing funds for victims who made transfers to domestic accounts under fraudulent pretenses. In 2021, RAT assisted with 1,726 incidents nationwide that together involved losses exceeding $443 million. RAT helped freeze more than $328 million of these potential losses, a 74-percent success rate.

If you are the victim of an online or internet-enabled crime, please file a report online with IC3 at www.ic3.gov or by calling your local FBI field office as soon as possible. For RAT to be effective, individuals and organizations must report crimes immediately and include all pertinent information, including account details.

MEDFORD, Ore.—On September 7, 2022, a San Diego, California man was sentenced to federal prison for trafficking large quantities of methamphetamine from Southern California to Southern Oregon for redistribution and sale.

Martin Jesus Velasco, 39, was sentenced to 48 months in federal prison and three years’ supervised release.

According to court documents, in late 2019, law enforcement learned Velasco was transporting pound quantities of methamphetamine north from California in rental cars and then selling it to local drug dealers in Southern Oregon. On at least two occasions, including the trip precipitating his arrest, Velasco traveled in a rental vehicle containing drug shipments with an associate and the associate’s girlfriend and infant child.

On February 6, 2020, Velasco was stopped in Ashland, Oregon and his vehicle was searched pursuant to a state search warrant. Authorities located a duffle bag with five one-pound packages of methamphetamine. Velasco and an accomplice were arrested. A later search of his cell phone revealed evidence of Velasco’s extensive and ongoing drug trafficking, including trading methamphetamine he acquired in Southern California for marijuana grown in Southern Oregon.

On March 3, 2020, Velasco was charged by criminal complaint with conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. Later, on November 5, 2020, a federal grand jury in Medford indicted him on the latter charge. On April 11, 2022, Velasco pleaded guilty.

This case was investigated by the U.S. Drug Enforcement Administration with assistance from the Medford Area Drug and Gang Enforcement (MADGE) team and Oregon State Police. It was prosecuted by Assistant U.S. Attorney Marco Boccato of the U.S. Attorney’s Office for the District of Oregon.

A Gresham, Oregon, man is facing federal charges for selling fentanyl that resulted in the overdose death of a 17-year-old Portland teenager.

Duane Robert Hill, 38, has been charged by criminal complaint with conspiracy to possess with intent to distribute fentanyl and possessing with intent to distribute fentanyl.

According to court documents, an investigation leading to Hill began on June 16, 2022, when the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) Interdiction Task Force (HIT), including members of the Portland Police Bureau’s (PPB) Narcotics and Organized Crime Division (NOC) and special agents from Homeland Security Investigations (HSI), responded to the overdose death of a 17-year-old teenager in Portland. Investigators found one full and one-half blue “M-30” pill on the victim’s desk along with small amounts of an unknown crystal substance and a white powder residue. Lab reports later confirmed that the pills recovered were counterfeit Oxycodone pills manufactured with fentanyl. Investigators believe the teen died of a fentanyl overdose.

Further investigation uncovered evidence that Hill is the third-level supplier of the fentanyl pills found in the teen’s room and that are believed to have caused the teen’s death. It was determined that Hill had been distributing fentanyl pills in quantities ranging from 10 to 100 pills in and around Portland for nearly a year. Hill sold the counterfeit pills for between $4 and $5 apiece. One week after the teen’s death, investigators set up and conducted a controlled purchase of more than three dozen M-30 pills from Hill.

Today, on September 7, 2022, investigators executed a search warrant on Hill’s Gresham residence. When PPB’s Special Emergency Reaction Team (SERT) entered the residence, Hill attempted to flush pills down the toilet. He was arrested without incident. More than 200 M-30 pills were found in Hill’s residence and vehicle along with a 9mm handgun, a scale, assorted drug packaging materials, and $4,480 in cash. A portion of the fentanyl pills recovered from Hill’s toilet were rainbow-colored.

Hill made his initial appearance in federal court today before U.S. Magistrate Judge Youlee Yim You. He was detained pending further court proceedings.

This case was investigated by the Oregon-Idaho HIDTA Interdiction Team, PPB NOC, and HSI with assistance from the Oregon State Police Crime Laboratory. Assistant U.S. Attorney Scott M. Kerin is prosecuting the case.

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

Rainbow fentanyl has appeared recently in several forms in cities across the country. Versions seized recently in the Portland area resemble thick pieces of brightly-colored sidewalk chalk or small multi-colored pills sometimes referred to as “skittles.”

If you are in immediate danger or encounter fentanyl in any form, please call 911.

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

Seized fentanyl in resealable bags. Seized multi-color fentanyl in clear resealable bags. Seized rainbow-colored fentanyl in a clear resealable bag. Seized 9mm handgun.

 

PORTLAND, Ore.—A Mexican National residing in Portland was sentenced to federal prison today for supplying large quantities of methamphetamine and heroin to a Mexico-based drug trafficking organization operating in the Portland Metropolitan Area.

Eduardo Barbosa Lopez, 44, also known as Barbas, was sentenced to 188 months in federal prison and five years’ supervised release.

According to court documents, beginning in 2018, two men, Samuel Diaz and Faustino Monroy, organized, led, and ran a drug trafficking organization, based in Mexico, responsible for trafficking hundreds of pounds of methamphetamine and heroin into Oregon for distribution. Diaz and Monroy worked closely with associates who ran a Portland distribution cell, which, at its peak, was responsible for distributing as much as 77 pounds of methamphetamine and 55 pounds of heroin weekly in and around Portland.

Barbosa, whose documented history of drug trafficking includes multiple felony convictions spanning nearly two decades, served as one of Diaz and Monroy’s most prolific sources of supply for methamphetamine and heroin in the Portland Metropolitan Area. Barbosa was directly involved in smuggling drugs from Mexico into Oregon where they were processed and prepared for sale at stash houses throughout the metro area. A large network of local drug dealers would then distribute user quantities of each drug. The organization would routinely change stash locations, rotate vehicles and phones, and pay individual couriers to take time off to avoid detection by law enforcement. To conceal his individual role in the conspiracy, Barbosa used multiple cell phones and false passports, lied to law enforcement about his identity, and successfully thwarted an effort to track the movement of his vehicle.

Diaz and Monroy leveraged relationships with the operators of Tienda Mexicana González Bros., a small convenience store and market in Southeast Portland, to launder millions of dollars in drug proceeds. Between January 2015 and October 2019, the organization laundered at least $19 million dollars through the market. In July 2021, one of the operators of the market, Jesus González Vazquez, was sentenced to 132 months in federal prison for his role in the conspiracy.

In October 2019, Barbosa and many of his co-defendants were arrested as part of a coordinated, multi-agency law enforcement operation. Investigators executed federal search warrants at more than a dozen locations throughout the Portland area, seizing approximately 22 pounds of methamphetamine, quantities of heroin and cocaine, and seven firearms. Law enforcement also seized 51 firearms, including assault rifles, shotguns, and handguns, from defendants affiliated with the Diaz-Monroy organization.

On October 24, 2019, a federal grand jury in Portland returned a 61-count superseding indictment charging Barbosa and 41 others for their roles in the drug trafficking and money laundering conspiracy. Later, on November 5, 2019, a federal grand jury in Portland returned a separate, one-count indictment charging Barbosa with illegally reentering the United States after being deported for a felony offense. On April 5, 2022, he pleaded guilty to both charges.

Barbosa is the thirty-second defendant sentenced for his role in the conspiracy.

This case was investigated by Homeland Security Investigations (HSI) Portland and the Gresham Police Department with assistance from the FBI; U.S. Drug Enforcement Administration; Oregon State Police; Portland Police Bureau; and the Multnomah, Clackamas, and Clark County Sheriff’s Offices. The U.S. Attorney’s Office for the District of Oregon is prosecuting the case.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

PORTLAND, Ore.—With at least two notable seizures in the last several days in the Portland Metropolitan Area, officials from the U.S. Attorney’s Office for the District of Oregon and U.S. Drug Enforcement Administration are warning Oregonians to be on the lookout for “rainbow fentanyl,” a brightly-colored version of the highly-toxic synthetic opioid responsible for hundreds of fatal overdoses every day in the United States.

Rainbow fentanyl has appeared recently in several forms in cities across the country. A version seized recently in the Portland area resembles thick pieces of brightly-colored sidewalk chalk. Some versions seized elsewhere in pill or tablet form resemble candy.

If you or someone you know encounter any version of fentanyl, please refrain from handling it and call 911 immediately.

“We urge all Oregonians to be on the lookout for fentanyl in our community and respect the highly-toxic nature of this substance,” said Steve Mygrant, Chief of the Narcotics and Criminal Enterprises Unit of the U.S. Attorney’s Office for the District of Oregon. “Fentanyl is commonly disguised in fake prescriptions pills. If you find or come in contact with pills not dispersed by a licensed pharmacist, assume they are fake and potentially lethal. Fake pills are indistinguishable from real pills.”

“Fentanyl is the deadliest drug threat we face today,” said DEA Acting Special Agent in Charge Jacob D. Galvan from the Seattle Field Division. “It doesn’t matter what color, shape or form it comes in; just two milligrams of fentanyl – the equivalent of 10 to 15 grains of salt - is enough to kill someone. DEA’s Portland Office is seizing record amounts of fentanyl and we will continue this important work because we know American lives are at stake.”

Opioid abuse affects communities across the nation. Provisional data from the Centers for Disease Control and Prevention (CDC) indicate that there were more than 107,000 fatal drug overdoses in the U.S. in 2021, an increase of nearly 15% from the previous year. Synthetic opioids (primarily fentanyl) accounted for more than three quarters of these deaths. Drug overdose continues to be the leading cause of injury or death in the United States.

Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male. The availability of illicit fentanyl in Oregon has caused a dramatic increase in overdose deaths throughout the state.

If you are in immediate danger, please call 911.

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

Photo of Loose Rainbow Fentanyl

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Photo of Bagged Rainbow Fentanyl in Hand for Scale

 

 

 

 

 

 

 

 

 

 

 

 

 

PORTLAND, Ore.— The U.S. Attorney’s Office for the District of Oregon announced today that Idaho Power Company, a Boise, Idaho-based utility that provides electricity to several states, including Oregon, has agreed to pay $1.5 million to settle allegations by the United States relating to the May 2014 Powerline and August 2015 Lime Hill fires in Baker County, Oregon.

The Powerline Fire ignited on May 31, 2014, and burned approximately 5 acres of federal land managed by the Bureau of Land Management (BLM). The Lime Hill Fire ignited on August 5, 2015, and burned approximately 2,592 acres of federal land managed by BLM and 9,337 acres of privately-owned land.

Idaho Power Company has a utility right-of-way on BLM land in Baker County on which it owns and operates its 138kV Ontario-to-Quartz transmission line. The United States contended in the civil action that the Powerline and Lime Hill fires were caused by the failure of structures on the Ontario-to-Quartz transmission line. The settlement reached is not an admission of liability by Idaho Power Company and the company denies the United States’ contentions.

This case was investigated by BLM with assistance from the U.S. Forest Service. The United States was represented in this matter by Assistant U.S. Attorneys Carla McClurg and Alexis Lien for the U.S. Attorney’s Office in the District of Oregon.

PORTLAND, Ore.—An Illinois-based company that operates an aluminum processing facility in The Dalles, Oregon has been charged with violating the Clean Air Act by negligently releasing a hazardous air pollutant from its facility, endangering employees and nearby community members.

Hydro Extrusion USA (Hydro), a limited liability corporation based in Rosemont, Illinois, has been charged by criminal information with negligent endangerment under the Clean Air Act.

“Enforcing emissions standards for hazardous air pollutants is critical to protecting the air we breathe and ensuring companies play by the rules,” said Ethan Knight, Chief of the Economic Crimes Unit for the U.S. Attorney’s Office. “We will vigorously prosecute any company that risks the health and safety of its workers or our communities.”

“Our nation’s environmental laws are designed to protect our communities from hazardous pollutants,” said Special Agent in Charge Scot Adair of the Environmental Protection Agency’s (EPA) criminal investigation program in Oregon. “The criminal charge filed in this case demonstrates that companies that negligently violate those laws will be held responsible for their crimes.”

According to court documents, Hydro operates a secondary aluminum processing facility in The Dalles where it melts aluminum scrap in induction furnaces to produce reusable aluminum billets. While operating, air emissions from the company’s furnaces were open to the interior of the building and did not pass through any pollution control devices before reaching employees or being vented to ambient air.

Under the Clean Air Act, secondary aluminum production facilities are only permitted to use “clean charge,” aluminum scrap free of paints, coatings or lubricants. Despite this requirement, from July 2018 through June 2019, Hydro acquired and melted scrap aluminum coated in a mineral-oil based mixture that, when combusted, produced hazardous smoke. During this time, Hydro employees noticed excessive smoke in the facility. Despite being notified by inspectors from EPA and the Oregon Department of Environmental Quality (Oregon DEQ), Hydro continued melting the unclean charge.

Hydro has fully cooperated with the government’s investigation of this matter and agreed to plead guilty.

This case was investigated by the EPA Criminal Investigation Division (EPA-CID) with assistance from Oregon DEQ. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.

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

MEDFORD, Ore.—A Baker City, Oregon man with several prior felony convictions was sentenced to federal prison today after he was arrested with multiple firearms and a large quantity of methamphetamine.

Jacob Grammon, 26, was sentenced to 95 months in federal prison and three years’ supervised release.

According to court documents, in April 2021, law enforcement in Baker County, Oregon obtained a search warrant for Grammon’s person and vehicle based on reports received of him possessing a large quantity of drugs and several firearms. On April 26, 2021, agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with assistance from Oregon State Police and other law enforcement officers in Baker and Malheur Counties, conducted surveillance on and ultimately arrested Grammon. Officers located as 9mm pistol on Grammon’s person and two pounds of methamphetamine and several ounces of heroin in his vehicle. Grammon admitted to possessing additional firearms including an AR-15 rifle with a high-capacity drum magazine.

On May 20, 2021, a federal grand jury in Medford returned a four-count indictment charging Grammon with possessing with intent to distribute methamphetamine and heroin, illegally possessing a firearm as a convicted felon, and possessing a firearm in furtherance of a drug trafficking crime.

On May 16, 2022, Grammon pleaded guilty to illegally possessing a firearm as a convicted felon.

This case was prosecuted by the ATF with assistance from OSP and the Baker and Malheur County Sheriff’s Offices. It was prosecuted by Assistant U.S. Attorney Marco A. Boccato of the U.S. Attorney’s Office for the District of Oregon.

PORTLAND, Ore.—A Portland man was sentenced to federal prison today for his role in a conspiracy to traffic marijuana illegally grown in Oregon to several U.S. states for resale. 

Kyle Lee Cerkoney, 40, was sentenced to 57 months in federal prison and five years’ supervised release.

Cerkoney was also ordered to forfeit criminally-derived proceeds and property identified by the government, including nine luxury watches, a diamond necklace, a Porsche 911 sports car, a semi-automatic rifle, and more than $570,000.

According to court documents, Cerkoney and two friends—Jeremiah David Cruz, 40, of Vancouver, Washington, and Robert Benjamin Kawika Dawe, 40, of Beaverton, Oregon—conspired with one another to transport black-market marijuana grown in Oregon to several U.S. states including New York, Ohio, Oklahoma, Georgia, Texas, Arkansas, Illinois, and Minnesota. The three men went to great lengths to conceal their illegal shipments. They hand-built large crates to package marijuana and marijuana extract for shipping, created false bills of lading, and flew to destination cities to personally receive their shipments. When commercial freight companies, under suspicion, began rejecting or limiting their freight shipments, the group started using a smaller private freight company.

Over the course of the conspiracy, Cerkoney, Cruz, and Dawe shipped or attempted to ship more than 1,000 kilograms of marijuana with an estimated street value in the destination states of more than $2.5 million. They used several bank accounts opened under various false business names to launder their proceeds and structured cash deposits to avoid detection by financial regulators.

On July 8, 2021, Cerkoney, Cruz, and Dawe were charged by criminal information with conspiracy to distribute and possess with intent to distribute marijuana. Cerkoney and Cruz were also charged with conspiracy to commit money laundering. 

On November 4, 2021, Cerkoney waived indictment and pleaded guilty to both charges.

The next day, on November 5, 2021, Cruz also pleaded guilty to both charges and, on February 3, 2022, was sentenced to 21 months in prison and five years’ supervised release.

On November 1, 2021, Dawe pleaded guilty to conspiracy to distribute and possess with intent to distribute marijuana and, on April 11, 2022, was sentenced to 33 months in prison and three years’ supervised release.

After pleading guilty, Cerkoney aroused additional government suspicion by attempting to sell the Porsche 911 sports car he had recently agreed to forfeit. Cerkoney shipped the vehicle from Oregon to California for repair and resale following an accident.

This case was investigated by Homeland Security Investigations with assistance from IRS-Criminal Investigation and the Portland Police Bureau. It was prosecuted by Assistant U.S. Attorney Julia E. Jarrett for the U.S. Attorney’s Office in the District of Oregon.

PORTLAND, Ore.—A Umatilla County, Oregon, man is facing federal charges for robbing the Wildhorse Resort and Casino on the Umatilla Indian Reservation at gunpoint and brandishing a firearm.

Javier Francisco Vigil, 51, has been charged by criminal complaint with committing a Hobbs Act robbery and using and carrying a firearm during and in relation to a crime of violence.

According to court documents, in the early afternoon on August 17, 2022, Vigil is alleged to have entered the Wildhorse Casino, walked straight to the cashier cage in the gaming area, and handed the cashier a note demanding $1 million. Vigil then drew a holstered pistol, pointed it at the cashier, and threatened to “bathe everyone in blood.” After being given nearly $70,000 in cash, Vigil exited the casino, pointed his firearm at a responding tribal police officer, and discharged at least one round. Vigil sustained injuries in an ensuing exchange of gunfire and was transported by officers to a local hospital.

Vigil made his initial appearance in federal court today in Portland before U.S. Magistrate Judge Jolie A. Russo. He was ordered detained pending further court proceedings.

This case is being investigated by the FBI with assistance from the Umatilla Tribal Police Department and the Hermiston Police Department. It is being prosecuted by Cassady Adams, Assistant U.S. Attorney for the U.S Attorney’s Office in the District of Oregon.

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

PORTLAND, Ore.—An alleged cryptocurrency money launderer was extradited this week from the Netherlands to the United States to face charges in the District of Oregon.

In August 2021, a federal grand jury in Portland charged Denis Mihaqlovic Dubnikov, 29, a Russian citizen, for his role in an international cryptocurrency money laundering conspiracy.

According to the indictment, between at least August 2018 and August 2021, Dubnikov and his co-conspirators are alleged to have knowingly and intentionally laundered the proceeds of ransomware attacks on individuals and organizations throughout the United States and abroad. Specifically, Dubnikov and his accomplices laundered ransom payments extracted from victims of Ryuk ransomware attacks.

After receiving ransom payments, Ryuk actors, Dubnikov and his co-conspirators, and others involved in the scheme engaged in various financial transactions, including international financial transactions, to conceal the nature, source, location, ownership, and control of the ransom proceeds.

In July 2019, Dubnikov laundered more than $400,000 in Ryuk ransom proceeds. Those involved in the conspiracy laundered at least $70 million in ransom proceeds.

On November 2, 2021, Dubnikov was arrested in Amsterdam pursuant to a provisional arrest warrant.

Dubnikov made his initial appearance in federal court in the District of Oregon today before U.S. Magistrate Judge Jolie A. Russo. He was arraigned and pleaded not guilty. A five-day jury trial is scheduled to begin on October 4, 2022.

If convicted, Dubnikov faces a maximum sentence of 20 years in federal prison, three years’ supervised release, and a fine of $500,000.

First identified in August 2018, Ryuk is a type of ransomware software that, when executed on a computer or network, encrypts files and attempts to delete any system backups. Of note, Ryuk can target storage drives contained within or physically connected to a computer, including those accessible remotely via a network connection. Ryuk has been used to target thousands of victims worldwide across a variety of sectors. In October 2020, law enforcement officials specifically identified Ryuk as an imminent and increasing cybercrime threat to hospitals and healthcare providers in the United States.

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

Dubnikov’s extradition was handled by the Justice Department’s Office of International Affairs. He was transferred to the District of Oregon by the FBI.

Justice Department components who worked on this seizure coordinated their efforts through the department’s Ransomware and Digital Extortion Task Force, which was created to combat the growing number of ransomware and digital extortion attacks.

The Task Force prioritizes the disruption, investigation, and prosecution of ransomware and digital extortion activity by tracking and dismantling the development and deployment of malware, identifying the cybercriminals responsible, and holding those individuals accountable for their crimes. The Task Force also strategically targets the ransomware criminal ecosystem as a whole and collaborates with domestic and foreign government agencies as well as private sector partners to combat this significant criminal threat.

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