District of Oregon

MEDFORD, Ore.—A Gold Beach, Oregon man was sentenced to federal prison today for receiving and possessing child pornography.

Timothy Shaw Lair, 38, was sentenced to 60 months in federal prison and five years’ supervised release.

According to court documents, in July 2019, investigators from McMinnville Police Department notified the FBI after discovering an internet protocol (IP) address in Gold Beach that had accessed and downloaded child pornography. In November 2019, FBI agents executed a search warrant on the residence associated with the IP address and discovered child pornography on a computer in Lair’s rented bedroom. A forensic examination of Lair’s digital devices revealed dozens of images and videos depicting child sexual abuse.

On December 4, 2019, a federal grand jury in Medford returned an indictment charging Lair with receipt and possession of child pornography and, on August 23, 2021, he pleaded guilty to both charges.

U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by the FBI with assistance from the McMinnville Police Department and Curry County Sheriff’s Office. Assistant U.S. Attorney Judith R. Harper prosecuted the case.

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.

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 National Center for Missing & Exploited Children’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 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 Portland man pleaded guilty today for perpetrating a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.

Benjamin Tifekchian, 47, pleaded guilty to bank fraud.

According to court documents, in May 2019, Tifekchian incorporated Bencho Jewelry Inc. (Bencho) in the State of Oregon and served as the company’s sole owner and officer. Bencho never had any employees and never generated more than $500 in revenue in any calendar year. 

After Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 to provide emergency financial assistance to millions of Americans suffering the economic effects caused by the COVID-19 pandemic, Tifekchian devised and perpetrated a scheme to defraud the Small Business Administration (SBA) by fraudulently applying for CARES Act-authorized Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans on behalf of Bencho.

In EIDL applications submitted to SBA in April and August 2020, Tifekchian falsely claimed Bencho had generated as much as $758,000 in revenue, had been operating for 20 years, and employed 12 people. SBA denied both applications. In June 2020, Tifekchian successfully obtained more than $884,000 in PPP funding after falsely claiming Bencho employed 78 people and had an average monthly payroll of $353,698. SBA guaranteed the loan and paid Bank of America, the FDIC-insured loan issuer, more than $26,000 in fees.

Tifekchian used the PPP loan to pay for gambling, vacations, and other personal expenses. Suspecting fraud, Bank of America froze the loan funds, but only after Tifekchian had spent more than $68,000.

On July 13, 2021, a federal grand jury in Portland returned a two-count indictment charging Tifekchian with bank fraud and wire fraud.

Tifekchian faces a maximum sentence of 30 years in prison, a $1 million fine and five years’ supervised release. With his continued acceptance of responsibility, the government will recommend Tifekchian be sentenced to at least 21 months in prison. Tifekchian will be sentenced on April 18, 2022, before U.S. District Court Judge Karin J. Immergut.

As part of the plea agreement, Tifekchian has agreed to pay $910,773.35 in restitution, including $26,527 to SBA.

U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

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.

PORTLAND, Ore.—A Portland man affiliated with the Hoover Criminal Gang and Krude Rude Brood was sentenced to federal prison today for illegally possessing a short-barrel shotgun as a convicted felon.

Christopher Raymond Fox-Southard, 23, was sentenced to 40 months in federal prison and three years’ supervised release.

In March 2021, Multnomah County Sheriff’s Office deputies attempted to stop a stolen vehicle driving recklessly, when the driver fled at a high rate of speed. Fox-Southard was a passenger in the vehicle along with three other Brood associates. Deputies eventually found the vehicle unoccupied and located Fox-Southard in a nearby parking lot. While searching the area, deputies found a stolen, short-barreled shotgun abandoned in a stairwell. Video surveillance footage of the area later reviewed by the deputies showed Fox-Southard walk away from the abandoned vehicle, remove his backpack and jacket, take out the shotgun, and discard it in the stairwell.

On May 11, 2021, a federal grand jury in Portland returned a two-count indictment charging Fox-Southard with felon in possession of a firearm and possession of an unregistered firearm. On November 2, 2021, he pleaded guilty to the former charge.

U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by the Multnomah County Sheriff’s Office and the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon with assistance from the Multnomah County District Attorney’s Office. Today’s sentencing is part of a global resolution of Fox-Southard’s federal and state criminal cases.

This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.—A Columbia County, Oregon man was sentenced to federal prison today for recording his repeated rape and abuse of a child over a period of five years and secretly recording a second child using a bathroom.

Anthony Wayne Dewey, 60, was sentenced to 324 months in federal prison followed by a life term of supervised release.

“Our hearts break for the children tragically abused and exploited in this and every case of child exploitation. We offer each of them this message: this experience will not define you. You are bigger and stronger than your abuser. You will grow to lead an extraordinary life of meaning and purpose,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.

“The focus—as always—is on the victims. Although Anthony Dewey received a severe and just sentence, the potential damage done to the children by his depravity will likely well outlast his punishment,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon. “Help us protect our community's children by reporting other violent predators to your local law enforcement agency or the FBI.”

According to court documents, in August 2017, after receiving information Dewey had sexually abused a child and created photographs depicting the abuse, law enforcement executed a search warrant on his Columbia County residence. Investigators seized numerous videos showing Dewey abusing the child over a period of five years when the child was 4 to 11 years old. The abuse occurred at Dewey’s residences in Oregon and Washington State.

During the search, law enforcement also found hidden camera videos of another minor victim using a bathroom. Investigators later learned that Dewey had previously been convicted in 2009 after hiding a camera in the bathroom of his residence in Cowlitz County, Washington. No video evidence was recovered or disclosed at that time.

On February 9, 2018, Dewey was charged by criminal complaint with sexual exploitation of a child. Later, in June 2018 and November 2019, he was charged by criminal information and superseding criminal information with two counts of sexually exploiting a child. On November 7, 2019, he pleaded guilty to both charges.

U.S. Attorney Asphaug and Special Agent in Charge Ramsey made the announcement.

This case was investigated by the FBI with assistance from the Longview Police Department and St. Helens Police Department. Assistant U.S. Attorney Natalie Wight prosecuted the case.

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.

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 National Center for Missing & Exploited Children’s website at http://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.—On January 18, 2022, a Springfield, Oregon man pleaded guilty for distributing marijuana on the dark web and laundering his cryptocurrency proceeds.

Robert Kelly O’Neill, 59, waived indictment and pleaded guilty to possession with intent to distribute marijuana and money laundering.

According to court documents, beginning around January 2016, Homeland Security Investigations (HSI) and the U.S. Postal Inspection Service (USPIS) began investigating the widespread importation and online distribution of controlled substances on dark web marketplaces. As part of the investigation, HSI and USPIS exposed widespread laundering of illicit digital currency proceeds across the country, including in Oregon.

The investigation uncovered a money laundering operation involving a dark net vendor, GOLD, who exchanged Bitcoin for cash. GOLD received Bitcoin from customers and, in exchange for a fee, would mail or ship cash to a physical mailing address provided by the customer.

As the investigation continued, agents identified an individual using the alias “Resinate” who employed GOLD’s money laundering services. Resinate used various addresses, including several Oregon addresses, to receive cash shipments. Following delivery of the cash packages, known and unknown coconspirators would retrieve and deliver the packages to Resinate.

In October 2016, GOLD was arrested and an HSI agent in New York assumed his identity and continued conducting deals with Resinate. Between September 2015 and May 2018, Resinate laundered more than $725,000 in illicit proceeds through GOLD and another $167,000 in Bitcoin through a co-conspirator in Springfield. In addition, records from the dark web sites Silk Road and Silk Road 2.0 confirmed that, in 2013 and 2014, Resinate earned $390,000 in Bitcoin from the sale of marijuana.

In June 2018, law enforcement executed numerous federal search warrants at nominee house addresses and on O’Neill’s Springfield residence. Investigators discovered a marijuana processing and packaging operation in O’Neill’s garage and seized dozens of computers and electronic storage devices from O’Neill’s residence. Agents also found handwritten notes identifying O’Neill as Resinate. A forensic examination of O’Neill’s electronic devices returned Bitcoin wallet addresses, images and details of O’Neill’s various dark web marketplace vendor accounts, encrypted emails between O’Neill and the undercover HSI agent, and cryptocurrency wallet backups.

In addition to the electronic and physical evidence, investigators identified and seized more than $21,469 in U.S. currency, six Bitcoin, and 458 Bitcoin Cash.

On September 3, 2021, O’Neill was charged by criminal information with possession with intent to distribute marijuana and money laundering. He will be sentenced on April 26, 2022 before U.S. District Court Judge Michael J. McShane.

Possession with intent to distribute marijuana is punishable by up to 20 years in prison, a $1 million fine, and five years’ supervised release. Money laundering is punishable by up to 20 years in prison; a fine of $500,000 or twice the value of the property involved, whichever is greater; and three years’ supervised release.

As part of his plea agreement, O’Neill has agreed to forfeit the U.S. currency, Bitcoin, and Bitcoin Cash seized by agents.

U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by HSI, USPIS, IRS Criminal Investigation, in addition to assistance by numerous state and local law enforcement agencies. Assistant U.S. Attorneys Gavin W. Bruce prosecuted the case.

This case is part of Operation Dark Gold, a coordinated, national law enforcement operation, announced in June 2018, that used the first nationwide undercover action to target vendors of illicit goods on the dark web. HSI special agents in New York, in coordination with the U.S. Attorney’s Office for the Southern District of New York, posed as a money launderer on dark web market sites, exchanging U.S. currency for virtual currency. Through this operation, HSI New York identified numerous vendors of illicit goods, leading to more than 90 criminal cases across the country.

PORTLAND, Ore.—On January 19, 2022, a Salem, Oregon man on federal supervised release was sentenced to federal prison after he was found in possession of more than 1.5 kilograms of methamphetamine and 15 firearms, five of which were stolen.

Jorge Mozqueda-Alvarez, 33, was sentenced to 151 months in federal prison and five years’ supervised release.

According to court documents, in September 2019, detectives from the Salem Police Department’s Street Crimes Unit (SCU) began investigating Mozqueda-Alvarez for drug trafficking in the Salem area. Officers conducted two separate controlled purchases of methamphetamine from Mozqueda-Alvarez. On October 15, 2019, SCU executed a search warrant on Mozqueda-Alvarez’s Salem residence and located more than 1.5 kilograms of methamphetamine and 15 firearms, five of which had been reported stolen. Mozqueda-Alvarez was arrested without incident.

On October 17, 2019, Mozqueda-Alvarez was charged by federal criminal complaint with illegally possessing a firearm as a convicted felon and possessing with intent to distribute methamphetamine. One week later, on October 24, 2019, a federal grand jury in Portland returned a four-count indictment charging him with distribution of methamphetamine, possession with intent to distribute methamphetamine and felon in possession of a firearm.

On December 18, 2020, Mozqueda-Alvarez pleaded guilty to possession with intent to distribute methamphetamine and felon in possession of a firearm. To resolve a separate criminal case, Mozqueda-Alvarez also pleaded guilty to illegal reentry.

U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

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

This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.—A Hillsboro, Oregon woman was sentenced to federal prison today for engaging in a multi-year scheme to defraud her employer, a non-profit adoption and surrogacy agency operating in Oregon and Washington, and her extended family.

Melodie Ann Eckland, 56, was sentenced to 54 months in federal prison and three years’ supervised release. She was also ordered to pay more than $1.6 million in restitution.

“Melodie Eckland used her position of trust within a local adoption agency to steal funds intended to help children across the world find loving families. She further stole thousands of dollars from a deceased family member’s estate in a failed attempt to keep her employer from discovering her scheme. Eckland’s selfishness and greed caused great loss and hardship for many people and pushed her employer agency to the brink of insolvency,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.

“Preying on the trust of her employers, her friends, and her family, Ms. Eckland stole from those who trusted her most. In doing so, Ms. Eckland irreparably hurt local families attempting to do just that – become families,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Financial and tax crimes are not victimless, and today’s sentence is justice served for Ms. Eckland’s wanton disregard and theft from those around her.”

According to court documents, from at least 2011 and continuing until April 2018, Eckland was employed as a bookkeeper for a local adoption and surrogacy agency. Her duties included maintaining agency books and records, managing payroll, filing employment tax returns, and paying quarterly employment taxes to the IRS. Eckland also provided financial statements to the agency’s board of directors, but did not have signature authority over the organization’s business bank account.

Eckland used her position to steal funds from the agency by making unauthorized wire transfers and writing unauthorized checks to herself. Eckland also transferred agency funds in the form of bonuses to her personal bank account. To conceal her scheme, Eckland maintained two sets of financial records. One version, which she provided to the board of directors, showed the business books as they should have been maintained. The other version showed the true payments she made to herself over the course of her employment.

To cover the money she had stolen, Eckland applied for loans from at least five lending agencies on behalf of the adoption agency, using the names of the agency’s owners without their permission. Eckland altered agency financial records to make it appear as though she owned the agency and was authorized to enter into the loan agreements. Beginning in 2016, Eckland stopped making the agency’s quarterly employment tax payments to the IRS and stopped filing employment tax returns. As a result, the agency owed more than $94,000 in past due employment taxes.

To further conceal her scheme, Eckland stole funds from a bank account opened on behalf of her deceased brother-in-law’s estate. As executor of the estate, Eckland’s husband was tasked with selling his brother’s assets, paying estate bills, and preserving the remaining funds for the benefit of his brother’s children. Eckland forged her husband’s signature on unauthorized estate checks and made unauthorized wire transfers of estate funds to herself. She sent a portion of the more than $123,000 stolen from the estate to the adoption agency’s bank account to conceal her theft of agency funds.

IRS records indicated that Eckland did not report any of the embezzled funds on her federal income tax returns for 2013, 2014, and 2017. In 2015 and 2016, she reported more than $550,000 as “other income,” but failed to pay the taxes due. Between 2013 and 2017, Eckland failed to report more than $675,000 in income, resulting in a tax loss of more than $345,000. As a result of her scheme, Eckland’s victims—including the adoption agency and its owners, her brother-in-law’s estate, and the IRS—suffered a total loss of more than $1.6 million.

On June 2, 2021, Eckland was charged by criminal information with wire fraud, aggravated identity theft, filing a false tax return, and willfully failing to collect or pay payroll taxes. On June 29, 2021, she pleaded guilty to all four charges.

U.S. Attorney Asphaug and Special Agent in Charge Kressin made the announcement.

This case was investigated by IRS:CI and the Hillsboro Police Department. It is being prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—Today, the U.S. Attorney’s Office for the District of Oregon commemorates National Human Trafficking Awareness Day—January 11, 2022—and joins its federal, state, local, and Tribal law enforcement partners in declaring a continued commitment to combating all forms of human trafficking.

“More than 150 years have passed since our nation ratified the 13th Amendment, abolishing the cruel and repugnant practice of enslaving humans. And yet, in its modern form of trafficking, this abhorrent crime persists here in the U.S. and across the globe. Combatting human trafficking is a top priority for the Justice Department and our office. Together with our law enforcement partners, we will do everything in our power to end this horrible crime,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.

“We are a country built on the promise of freedom and dignity for every person. Unfortunately, it’s a promise that we see broken all too often for the most vulnerable among us,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon. “Victims of labor trafficking and sex trafficking are not only exploited in the worst ways, they also live in constant fear. They wake every morning to threats of violence and outright abuse. Help us help them. If you have information about trafficking in your area, please call us.”

Human trafficking, sometimes referred to as trafficking in persons or modern slavery, is a serious federal crime involving the exploitation of individuals for labor, services, or commercial sex through force, fraud, or coercion. This coercion can be subtle or overt, physical or psychological. Exploitation of a minor for commercial sex is human trafficking, regardless of whether any form of force, fraud, or coercion was used.

Victims of human trafficking can be anyone regardless of race, color, national origin, disability, religion, age, gender, sexual orientation, gender identity, socioeconomic status, education level, or citizenship status. Although there is no defining characteristic that all human trafficking victims share, traffickers around the world frequently prey on individuals who are poor, vulnerable, living in unsafe or unstable environments, or are in search of a better life.

In the U.S., trafficking victims can be American or foreign citizens. Some of the most vulnerable populations for trafficking in the U.S. include American Indian and Alaska Native communities, LGBTQ individuals, individuals with disabilities, undocumented migrants, runaway and homeless youth, temporary guest-workers, and low-income individuals.

The U.S. Attorney’s Office for the District of Oregon is committed to continuing its victim-centered, trauma-informed approach to detecting hidden human trafficking crimes, holding perpetrators accountable, and helping to restore the lives of survivors, while strengthening strategic anti-trafficking partnerships.

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

If you believe you or someone you know is a victim of human trafficking or may have information about a trafficking situation, please call the National Human Trafficking Hotline toll-free at 1-888-373-7888 or visit https://humantraffickinghotline.org. You can also text the National Human Trafficking Hotline at 233733.

January is National Slavery and Human Trafficking Prevention Month. Every year since 2010, the President has dedicated the month to raising awareness about the different forms of human trafficking and educating people about this crime and how to spot it. To learn more, visit https://www.whitehouse.gov/briefing-room/presidential-actions/2021/12/30/a-proclamation-on-national-human-trafficking-prevention-month-2022/.

PORTLAND, Ore.—This week, in separate criminal cases, two Portland gang members were sentenced to federal prison for illegally possessing firearms as convicted felons.

On January 4, 2022, Timothy DeWayne Smith, Jr., 28, a member of the Hoover Criminal Gang, was sentenced by U.S. District Court Judge Michael W. Mosman to six months in federal prison and three years’ supervised release.

Today, Derek Brandon Conley, 38, a former Crip gang member, was sentenced by U.S. District Court Judge Michael H. Simon to 48 months in federal prison and three years’ supervised release.

U.S. v. Smith

According to court documents, as part of an ongoing federal criminal investigation into the racketing activities of the Hoover Criminal Gang, investigators learned of Smith’s involvement in various gang activities including sex trafficking and the illegal possession of firearms. 

On August 24, 2019, law enforcement responded to a report of someone flashing a gun at a local bar. A police air support unit saw Smith run out of the back of the bar and enter a vehicle. Police followed and stopped the vehicle and located a firearm in its center console. Smith denied flashing or possessing the gun. A forensic laboratory report later confirmed the presence of Smith’s DNA on the gun along with the DNA profiles several other people.

Later, on June 10, 2020, Smith was a passenger in a vehicle stopped by Oregon State Police troopers traveling south through Eugene, Oregon. A 9mm semi-automatic pistol with a chambered round was located in the vehicle’s center console. The gun was seized and Smith and the vehicle’s driver were released. Further investigation revealed that the seized firearm belonged to Smith. He was later arrested without incident. 

U.S. v. Conley

In September 2020, probation officers visited Conley’s Portland residence where he lived with his fiancé and three children. Conley, who had recently been released from prison after being convicted in April 2017 in Multnomah County Circuit Court for illegally possessing a firearm as a convicted felon, led the officers to his bedroom where bullets and a laser sight rifle attachment were clearly visible. He consented to a search of the room and officers located a rifle Conley admitted to owning. Two other firearms were found in the residence including one located in an accessible bin in the children’s room adjacent to a toy firearm. Conley was arrested on-site without incident.

These cases were investigated by the FBI and ATF with assistance from the Portland Police Bureau, Multnomah County Sheriff’s Office, Homeland Security Investigations, and the Oregon State Police. They were prosecuted by the U.S. Attorney’s Office for the District of Oregon.

This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.—A Salem, Oregon man was sentenced to federal prison today for illegally possessing a firearm as a convicted felon.

Bernard McEllen Welch, 33, was sentenced to 120 months in prison and three years’ supervised release.

According to court documents, on May 21, 2020, a Salem Police officer pulled a car over for a traffic violation when Welch jumped from the vehicle’s rear passenger door and ran away. The officer called for backup and stayed with the vehicle. A nearby resident alerted police that a man had jumped into his backyard. Officers searched the area and located Welch hiding under a bush. 

After Welch was arrested, officers returned to the home where the resident had reported seeing Welch enter his backyard. They located a discarded pistol with an obliterated serial number and a chambered round. In an adjacent property, they located a loaded magazine compatible with the pistol. Investigators at the Oregon State Forensic Laboratory later matched DNA found on the firearm with a sample collected from Welch.

At the time of his arrest, Welch had prior state felony convictions for assaulting a public safety officer, second-degree robbery with a firearm, third-degree assault, and third-degree robbery.

On August 5, 2020, a federal grand jury in Portland returned a one-count indictment charging Welch with illegally possessing a firearm as a convicted felon. On September 16, 2021, he pleaded guilty to the single charge.

This case was investigated by the Salem Police Department with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.

This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.—A federal superseding indictment was unsealed today charging a Mexican National residing in Clackamas County, Oregon for his role in the 2019 kidnapping and murder of a Washington State man and other drug trafficking crimes.

Marcos Alonso Castillo-Bernal, 46, has been charged with conspiring to possess with intent to distribute and distribute controlled substances, killing while engaged in drug trafficking, distribution of heroin and methamphetamine, kidnapping resulting in death, conspiracy to commit kidnapping resulting in death, hostage taking resulting in death, conspiracy to commit hostage taking resulting in death, felon in possession of a firearm, and fraud and misuse of a visa.

According to the superseding indictment, beginning on an unknown date and continuing until his arrest in October 2019, Castillo-Bernal conspired with others to traffic and distribute large quantities of heroin and methamphetamine in an around Portland. Castillo-Bernal and his co-conspirators would import large quantities of the illegal narcotics from numerous suppliers to stash houses throughout the metro area where they were processed and prepared for sale.

On or about April 13, 2019, Castillo-Bernal and others kidnapped, held hostage, and murdered Ricardo Corral-Moreno, of Olympia, Washington, and disposed of his body in a rural area near Molalla, Oregon. Castillo-Bernal and his co-conspirators targeted Corral-Moreno because of money Corral-Moreno owed to Castillo-Bernal and others.

Castillo-Bernal made his initial appearance in federal court today before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and ordered detained pending a jury trial scheduled to begin on April 12, 2022.

Killing while engaged in drug trafficking, kidnapping resulting in death, and hostage taking resulting in death are all capital offenses with maximum custodial sentences of life in federal prison. Kidnapping and hostage taking resulting in death also carry a mandatory life sentence upon conviction. Killing while engaged in drug trafficking and drug trafficking conspiracy carry mandatory minimum sentences of 20 years and 15 years in federal prison, respectively.

U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by the U.S. Drug Enforcement Administration, FBI, Clackamas County Sheriff’s Office and Portland Police Bureau. 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.

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.

EUGENE, Ore.—An Oregon man was sentenced to federal prison today after stealing millions of dollars in loans intended to help small businesses during the COVID-19 pandemic.

Andrew Aaron Lloyd, 51, of Lebanon, Oregon, was sentenced to 48 months in federal prison and five years’ supervised release. Lloyd was also ordered to pay more than $4 million in restitution and forfeit 25 properties and more than 15,000 shares of Tesla, Inc. stock seized by law enforcement.

Lloyd took advantage of economic relief programs administered by the Small Business Administration (SBA), including Economic Injury Disaster Loans (EIDL) and the Paycheck Protection Program (PPP). These programs were authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020. The CARES Act provided emergency financial assistance to millions of Americans and small businesses suffering from the economic effects of the COVID-19 pandemic.

According to court documents, beginning in April 2020, Lloyd began submitting CARES Act loan applications using numerous business names and personally identification information of relatives and business associates without their consent. Lloyd submitted false documentation to justify the loan amounts requested, including IRS forms listing the 2019 wages purportedly paid by entities controlled by Lloyd. Lloyd claimed these entities paid employees as much as $4.7 million. Lloyd’s loan applications included lists of dozens of purported employees and the total wages paid to each. The loan application packages included some of the same information across the different business entities, including the businesses’ physical locations and the names of several dozen employees.

The IRS forms, the total amount of wages and earnings, the employee names, and the

wages paid to each employee were all created by Lloyd and false.

In total, Lloyd submitted nine PPP loan applications, six of which were accepted, resulting in a payout of more than $3.4 million. Lloyd also applied for numerous EIDLs, of which one was accepted, resulting in an additional $160,000 in payments to Lloyd. 

Upon receipt of the funds, Lloyd purchased real estate and invested in securities. Lloyd transferred more than $1.8 million of the above-described PPP loan funds to his securities brokerage account. Securities Lloyd purchased using the fraudulently acquired funds substantially increased in value. In addition, Lloyd purchased more than 25 properties in Oregon and California with the proceeds of his fraud.   

In January 2021, agents seized Lloyd’s brokerage account, which included 15,740 shares of Tesla, Inc. purchased with proceeds of his fraud. In March 2021, agents seized another account containing more than $660,000 in securities and cash. The securities and cash seized from Lloyd’s accounts are presently valued at more than $18 million.

On January 5, 2021, Lloyd was charged by criminal complaint with wire fraud, bank fraud, and money laundering. Later, on June 6, 2021, he was charged by superseding criminal information with bank fraud, money laundering, and aggravated identity theft. On June 17, 2021, Lloyd pleaded guilty to all three charges.

An accomplice of Lloyd’s, Russell Anthony Schort, 39, of Myrtle Creek, Oregon, was charged alongside Lloyd for similar conduct. Schort pleaded guilty to bank fraud and, on November 16, 2021, was sentenced to federal prison and ordered to pay $294,552 in restitution.

U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by the FBI, the SBA Office of Inspector General, and IRS Criminal Investigation. It is being prosecuted by Gavin W. Bruce and Julia Jarrett, Assistant U.S. Attorneys for the District of Oregon.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’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.—Attorney General Merrick B. Garland has appointed Scott Erik Asphaug to serve as U.S. Attorney for the District of Oregon in an interim capacity, effective December 25, 2021.

Asphaug, who was previously appointed to serve as Acting U.S. Attorney for the District of Oregon beginning February 28, 2021, will serve as U.S. Attorney for up to 120 days or until the confirmation of Oregon’s next presidentially-appointed U.S. Attorney by the U.S. Senate. If after 120 days, a new presidentially-appointed U.S. Attorney has not been confirmed by the U.S. Senate, Marco A. Hernández, Chief U.S. District Judge for the District of Oregon, will appoint a U.S. Attorney to serve until such confirmation occurs.

“It is a privilege to serve Oregonians as U.S. Attorney and I look forward to continuing to do so for the next four months or until the confirmation of Oregon’s next presidentially-appointed U.S. Attorney,” said U.S. Attorney Asphaug. “During this time of transition, our office continues to focus intently on our ongoing mission of protecting the safety and wellbeing of all Oregonians.”

Asphaug is a 16-year veteran of the Department of Justice, joining the U.S. Attorney’s Office in October 2005. He has held several leadership positions in the district including First Assistant U.S. Attorney, Executive Assistant U.S. Attorney, Assistant U.S. Attorney, Mortgage Fraud Coordinator, Discovery Coordinator, and Professional Responsibility Officer. Asphaug previously served as a line Assistant U.S. Attorney in both the Civil and Criminal Divisions.

Prior to his federal service, Asphaug was a Senior Assistant and Deputy County Attorney in the Multnomah County Attorney’s Office, where he handled tort and medical malpractice litigation. He also served as the advisory attorney to the Multnomah County Sheriff.

Before entering government service, Asphaug spent several years in private practice focused on criminal litigation. During this time, he was empaneled by the Portland Police Officer’s Union to represent officers during use of force administrative and grand jury investigations.

Asphaug received his bachelor’s degree in history from the University of Minnesota in 1979 and his law degree from the Northwestern School of Law at Lewis and Clark College in 1983.

USA Scott Erik Asphaug

 

PORTLAND, Ore.—A federal criminal complaint was unsealed today charging an Oregon dentist with fraudulently converting to his personal use nearly $8 million in loans intended to help small businesses during the COVID-19 pandemic. 

Salwan Adjaj, 43, a former dentist residing in West Linn, Oregon, has been charged with aggravated identity theft and wire fraud.

According to court documents, in and around March 2021, Adjaj allegedly   submitted dozens of fraudulent loan applications to the Small Business Administration (SBA) in an attempt to obtain funds through the Economic Impact Disaster Loan (EIDL) program. The EIDL program was one of several economic relief programs originally authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES). It 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 the fraudulent EIDL 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 EIDL applications, he shifted his sights to 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 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 applications, Adjaj’s RRF applications contained false business information and all listed his personal residence as the business mailing address. Together, Adjaj’s RRF applications generated nearly $8 million in fraudulent loan payouts.

Adjaj was arrested yesterday following alleged pretrial release violations. Today, he was ordered detained pending further court proceedings.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

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.

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

PORTLAND, Ore.—A Tillamook, Oregon man was sentenced to federal prison today for stealing 15 firearms from a sporting goods store in Tillamook while on post-prison supervision.

Robert Jon Gilliam, 52, was sentenced to 60 months in federal prison and three years’ supervised release. Gilliam was also ordered to pay $8,892 in restitution the insurance company who covered the sporting goods store’s losses.

According to court documents, in the early morning hours of May 8, 2020, Tillamook Police Department officers responded to a burglary at Tillamook Sporting Goods, a federal firearm licensee. A male caller saw a male run from the store, get into a green Subaru driven by a female, and drive away. A short time later, the female drove back into the parking lot and parked, but the male passenger was not in the care. The caller then watched as the male ran from the front of the store, again jumped into the vehicle, and drove away.

On scene, police found the front glass doors of the store and several glass firearm display cases inside the store shattered. Officers observed blood near the broken glass and collected it for analysis. The store’s surveillance video was not operable during the time of the burglary and the store’s alarm was not triggered until police were in the building.

On June 4, 2020, Washington County Sheriff’s Office deputies recovered one of the stolen firearms while executing a search warrant. Three days, later, on June 7, 2020, investigators executed a search warrant on Gilliam’s Tillamook residence. Officers observed a green Subaru parked outside with dried blood on the inside of the front passenger door and on the car’s exterior. Investigators submitted the blood sample from the store to the Oregon State Police Crime Lab. Forensic scientists matched the sample to a known blood sample taken from Gilliam.

On October 6, 2020, a federal grand jury in Portland returned a two-count indictment charging Gilliam with stealing firearms from a federal firearms licensee and illegally possessing a firearm as a convicted felon. On July 2, 2021, Gilliam pleaded guilty to both charges.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Tillamook Police Department, Washington County Sheriff’s Office, and Oregon State Police. Assistant U.S. Attorney Leah K. Bolstad prosecuted the case.

PORTLAND, Ore.—A Texas man was sentenced to federal prison today for assaulting a Deputy U.S. Marshal with a construction hammer during a July 2020 protest in Downtown Portland.

Jacob Michael Gaines, 24, was sentenced to 46 months in federal prison and three years’ supervised release.

“Mr. Gaines’ actions in July 2020 were intentional, dangerous, and could have severely injured or killed the Deputy U.S. Marshal who confronted him. His assault on a federal officer justifies the lengthy prison sentence imposed today,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.

According to court documents, at approximately 1:00am on July 11, 2020, Gaines was observed using a hammer to break through a barricaded entrance at the Hatfield Federal Courthouse. At the time, federal law enforcement personnel were staged inside the courthouse to protect the facility and respond to incidents. After Gaines drove a hole through the plywood barrier, Deputy U.S. Marshals exited the door to prevent him from trespassing into the closed building.

As the marshals were exiting the barricaded door, Gaines struck a Deputy U.S. Marshal three times with the hammer. The deputy deflected the blows to prevent serious injury, but in process was struck in the left shoulder, lower neck, and upper back. While being struck, the deputy managed to hold onto Gaines while other officers handcuffed him and placed him under arrest.

On July 12, 2020, Gaines was charged by criminal complaint with one count of assaulting a federal officer with a deadly weapon. Later, on July 16, 2020, a federal grand jury in Portland indicted Gaines on the same charge. Gaines has been held in custody since his arrest the night of the incident. On September 8, 2021, he pleaded guilty to the single charge.

Acting U.S. Attorney Asphaug made the announcement.

The case was investigated by the U.S. Marshals Service and Federal Protective Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.

Courthouse barricade with hole from Gaines' hammer strikes Gaines outside courthouse barricade with hammer in right hand Deputy US Marshal approaching Gaines 4lb Dewalt construction hammer seized from Gaines

 

PORTLAND, Ore.—On December 10, 2021, a federal jury found a known Portland gang affiliate guilty for illegally possessing a firearm as a convicted felon.

Kneko Tyray Moore, 33, a resident of Portland and an affiliate of the Rollin’ 60s Crips gang, was found guilty of one count of felon in possession of a firearm.

According to court documents, on the evening of April 17, 2020, the Portland Police Bureau (PPB) received numerous calls from neighbors about an unruly gathering at the Lone Fir Cemetery in Southeast Portland. Callers reported that approximately 20 people were having a barbeque and playing loud music. The gathering occurred during the height of the COVID-19 pandemic in direct violation of the governor’s stay-home order.

An undercover officer reported seeing known members or associates of the Rollin’ 60s Crips gang, including Moore, at the gathering. Six of the gathering attendees, also including Moore, were on state or federal supervision following felony weapons convictions. When marked police cars arrived on scene, Moore quickly left the group and walked toward a black sedan. Moore entered the vehicle and sped away, nearly hitting a tree and an unmarked police vehicle.

Two officers then assigned to PPB’s Gun Violence Reduction Team followed Moore as he left the cemetery and pulled him over after he almost struck another car. Both officers recognized Moore as a Rollin’ 60s affiliate and convicted felon and reported he was visibly nervous and trembling. Moore became agitated when the officers impounded his vehicle and was placed under arrest for interfering with an officer. When officers searched Moore’s vehicle, they found a loaded .40 caliber semi-automatic pistol with a chambered round on the front passenger floorboard.

On October 6, 2020, a federal grand jury in Portland returned a one-count indictment charging Moore with illegally possessing a firearm as a convicted felon.

Moore faces a maximum sentence of 10 years in prison, a $250,000 fine and three years’ supervised release. He will be sentenced on April 11, 2022 before U.S. District Court Judge Karin J. Immergut. Moore, who was on supervised release in a prior federal firearm case, is also facing violation proceedings.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by PPB and Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Gary Sussman, Jaclyn Jenkins, and Leah Bolstad, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore.—A Southern California man who owned and operated two local compounding pharmacies was sentenced to federal prison today for evading the payment of approximately $5.5 million in personal income taxes and submitting false reimbursement claims to CVS Caremark, a national pharmacy benefit manager.

Matthew Hogan Peters, 38, was sentenced to three years in federal prison and three years’ supervised release. Peters was also ordered to pay more than $3,441,263 million in restitution to the IRS, in addition to back taxes Peters has already paid.

“Far too often, Matthew Peters bent and skirted the law to pad his pockets and fund a lavish lifestyle. Peters’ crimes, and the illicit actions of others like him, only serve to increase the cost of healthcare and prescription medications for ordinary Americans,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “Healthcare fraud and tax evasion are serious federal crimes and will continue being handled as such by our office.”

“Health care fraud costs insurers and taxpayers tens of billions of dollars a year. Not only do government-funded programs—such as Medicare and Medicaid—take huge hits, but people in our community end up paying higher premiums for coverage. While neighbors and family members struggle to afford prescriptions and basic coverage, people like Mr. Peters are buying exotic homes and funding a lavish lifestyle,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.

“Instead of providing honest pharmaceutical services, Mr. Peters instead focused his energies on a scheme designed to benefit only himself at the expense of the most vulnerable people in our communities,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “Our country’s tax and health care systems are both essential to the well-being of all Americans, and IRS-CI is committed to protecting the integrity of these vital services.”

According to court documents, the U.S. Department of Health and Human Services’ Office of Inspector General, the Oregon Department of Justice’s Medicaid Fraud Unit, and other agencies pursued a multi-year investigation into alleged illegal kickback arrangements at compounding pharmacies owned by Peters and members of his family in several states. Two such pharmacies, Professional Center Pharmacy and Professional Center 205 Pharmacy, were located in Southeast Portland. 

The investigation ultimately revealed that Peters had devised various indirect means of incentivizing healthcare providers to write prescriptions for compounded drugs—custom-mixed medications that generate outsized reimbursements from Medicare, Medicaid, and other healthcare-benefit programs—and to direct those prescriptions to his pharmacies for dispensing. These arrangements proved enormously profitable for Peters’ pharmacies.

Peters’s healthcare fraud conviction stemmed from his requests for reimbursements from CVS Caremark, a major pharmacy benefits manger based in Arizona. Peters sought reimbursements of approximately $3.4 million for medication his pharmacies had purportedly dispensed. In mid-2015, CVS Caremark audited Peters’s reimbursement claims and identified nearly a quarter-million dollars in potentially unwarranted reimbursements. Dozens of the discrepant claims lacked records proving customers’ receipt of medications.

In October 2015, seeking to resolve these discrepancies and avoid possible suspension from CVS Caremark’s network, Peters submitted to CVS Caremark 41 forged patient attestations, purportedly confirming individual patients’ receipt of prescriptions. CVS Caremark auditors saw that the patient attestations all bore the same unique digital code and, after further investigation, suspended Peters’ pharmacies from their network. A subsequent federal investigation confirmed that Peters had used Docu-Sign, an electronic signature application, from his personal computer to sign the attestations.

Peters greatly expanded his criminal liability by attempting to hide his pharmacy profits from the IRS. The IRS’s financial investigation into Peters revealed that he had generated nearly $14 million in gross income between 2014 and 2017. Peters developed several schemes to try and conceal his income and fraudulently decrease his federal income tax liability. Most of these schemes involved spending pharmacy profits on personal expenses and telling his accountant (and the IRS) that they were legitimate business expenses. 

Peters’s purported business expenses included $3.3 million for property and construction in Belize; more than $5 million for personal residences in Laguna Beach and San Carlos, California and Incline Village, Nevada; and millions in cash transfers to straw entities and trust accounts in the names of others for Peters’ personal use. All told, between 2014 and 2017, Peters underreported his income tax liability by more than $5.4 million.

On December 19, 2019, a federal grand jury in Portland returned a two-count indictment charging Peters with healthcare fraud and aggravated identity theft. Later, on July 20, 2020, he was charged by superseding criminal information with healthcare fraud and tax evasion.

On August 4, 2020, Peters waived indictment and pleaded guilty to health care fraud and tax evasion.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by the FBI, IRS Criminal Investigation, the Offices of Inspectors General for the U.S. Postal Service and the U.S. Departments of Labor and Health and Human Services, the U.S. Postal Inspection Service, and the Defense Criminal Investigative Service. It was prosecuted by Assistant U.S. Attorneys Ryan W. Bounds and Seth D. Uram and Special Assistant U.S. Attorney Elizabeth Ballard Colgrove, for the District of Oregon.

WASHINGTON— The Department of Justice announced today that it has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core. The Oregon Criminal Justice Commission (CJC) was awarded $199,137 in PSN grant funds to administer in the District of Oregon.

The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorneys’ Offices.

“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”

“Local law enforcement agencies in Oregon are working tirelessly within their capability and resources to combat violent crime and ensure the safety of all Oregonians. Despite those efforts, gun violence in Portland, Gresham, and areas surrounding are at an all-time high. This year’s Project Safe Neighborhoods grant funds will be directed toward gun violence reduction efforts in those communities,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “The goal of Project Safe Neighborhoods is to reduce violent crime and victimhood across the U.S., including here in Oregon. It remains a top priority for our office and the entire federal law enforcement community.”

Grant funds will support new and existing crime-reduction and victim-support programs in the Portland-Gresham area. With BJA approval, CJC will begin the process of making subawards for PSN grant projects.

“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” said Principal Deputy Assistant Attorney General Amy L. Solomon for OJP. “The Office of Justice Programs is pleased to join with our U.S. Attorneys’ Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”

In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, 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.

This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.

PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime. 

For a list of all grantees, please visit: https://go.usa.gov/xe7Wr.

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.

EUGENE, Ore.—A Winston, Oregon man was sentenced to federal prison today for possession with intent to distribute methamphetamine, which he had been selling in and around Douglas County, Oregon.

Steven Dwayne Lander, 60, was sentenced to 120 months in federal prison and five years’ supervised release.

According to court documents, over the course of several months, the Douglas County Interagency Narcotics Team (DINT) and the U.S. Drug Enforcement Administration (DEA) investigated Lander and his drug dealing in Douglas County. Following extensive surveillance, arrests of his customers and associates, and the monitoring of his movements, investigators executed multiple search warrants on Lander and his properties. More than 15 pounds of methamphetamine and a half pound of heroin were seized from his storage unit, vehicle, and person. 

Lander has prior felony convictions for delivering and manufacturing controlled substances and illegally possessing a firearm as a convicted felon, and was previously sentenced to more than four years in prison.

On November 8, 2019, Lander was charged by criminal complaint and he was indicted on November 20, 2019.  On November 7, 2021, Lander pleaded guilty to possession with intent to distribute methamphetamine.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by DEA and DINT. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon, in close coordination with Douglas County Senior Deputy District Attorney Allison D. Eichmann.

PORTLAND, Ore.—A Mexican national residing in Portland was sentenced to federal prison today for his leadership role in a conspiracy to illegally obtain hundreds of high-powered, semi-automatic rifles and high-grade firearms in and around Portland and smuggle them into Mexico for use by the Jalisco New Generation Cartel (CJNG).

David Acosta-Rosales, 51, was sentenced to 75 months in federal prison and three years’ supervised release.

“This case represents two important public safety issues. First, no state, regardless of its location and proximity to the U.S.-Mexico border, is beyond the reach of violent drug cartels. International drug trafficking may feel to most Americans like a distant, geopolitical issue with little connection to our own communities, but this could not be further from the truth. Second, every day across the U.S., drug traffickers and other criminals manipulate the legal process for obtaining firearms from licensed dealers in the U.S., of which there are hundreds of thousands. Our office will continue working closely with our law enforcement partners to prosecute anyone who attempts to illegally purchase or traffic firearms,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.

“ATF will tirelessly investigate anyone who traffics in firearms,” said ATF Seattle Special Agent in Charge Jonathan T. McPherson. “Whether they are organizing an international trafficking cell, as Acosta-Rosales was doing, or they are straw purchasing firearms for trafficking purposes, we will work to ensure that they are caught and, through the U.S. Attorney’s Office, prosecuted to the fullest extent of the law.” 

According to court documents, since at least September 2019, Acosta-Rosales served as the leader of a hierarchical gun trafficking cell operating in the Portland area. In this role, Acosta-Rosales managed several co-conspirators who served as high-volume straw purchasers and recruiters of new straw purchasers. These associates would also oversee and liaise with lower-volume straw purchasers, who would, in turn, pass the guns they acquired back up to Acosta-Rosales’ direct reports.

Acosta-Rosales received orders and requests for semi-automatic rifles, high-grade firearms, and explosive devices from his “boss” in Mexico and other co-conspirators affiliated with CJNG. These co-conspirators were particularly interested and focused on obtaining high-powered, especially deadly firearms such as AR-15 and AK-47 platform rifles, semi-automatic .50 caliber rifles, and premium, military-style combat assault rifles.

Acosta-Rosales received hundreds of thousands of dollars to operate his scheme and recruited numerous straw purchasers to make the illegal gun purchases. One of Acosta-Rosales’ first recruits was his own young son who later withdrew himself from his father’s criminal enterprise. Before the illegally obtained firearms were transferred out of Oregon via courier, Acosta-Rosales himself participated in obliterating serial numbers on the guns and also recruited a co-conspirator to help obliterate serial numbers. Acosta-Rosales continued operating the conspiracy even after ATF agents arrested one of his co-conspirators and seized many of the group’s guns. In total, Acosta-Rosales facilitated the illegal purchase and transfer of approximately 150 guns to Mexico. He also acquired a grenade launcher and a .50 caliber tripod-mounted semi-automatic firearm that he intended to transfer to Mexico, but was arrested by federal agents before he could do so. 

On October 6, 2020, a federal grand jury in Portland returned a 52-count indictment charging Acosta-Rosales and 10 associates with conspiracy, making false statements in connection with the acquisition of firearms, possessing and receiving firearms with obliterated serial numbers, and smuggling goods from the U.S.

Seven of Acosta-Rosales’ co-conspirators have pleaded guilty. Five have been sentenced and two are pending sentencing. The remaining three co-conspirators are pending trial.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

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

 

 

 

PORTLAND, Ore.—A federal grand jury in Portland returned a five-count indictment today charging six individuals for their roles in a multiyear scheme to evade the payment of payroll and income taxes on the wages of construction workers.

David A. Katz, 45, of Tualatin, Oregon, the operator of Check Cash Pacific, Inc., a check cashing business with locations in the Portland area and Vancouver, Washington, is charged with conspiring with five individuals affiliated with Oregon-based construction companies to defraud the U.S. by facilitating under-the-table cash wage payments to construction workers to impede and obstruct the IRS’s ability to compute, assess, and collect payroll and income taxes due on the cash wages. 

Additionally, Katz is charged with four counts of filing false currency transaction reports with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).

Others charged with conspiracy to defraud the U.S. include Martin S. Elizondo, 46, also of Tualatin; Melesio Gomez-Rivera, 47, of Aloha, Oregon; Jorge Peraza, 49, and Natallie N. Graham, 46, both of Beaverton, Oregon; and Jose L. Altamirano, Sr., 60, of Bend, Oregon.

According to the indictment, from at least January 2014 and continuing through December 2017, Elizondo, Gomez-Rivera, and Peraza are alleged to have successfully evaded the employment tax obligations of their respective construction companies and assisted other construction companies do the same. To carry out the scheme, they cashed or had other individuals cash millions of dollars in payroll checks at various locations of Katz’s check cashing business, used the cash to pay construction workers under-the-table, and filed false business and payroll tax returns.

Altamirano is alleged to have used co-conspirators to cash payroll checks at Katz’s business to pay employees of his construction company under-the-table. Graham is alleged to have worked in the office of a subcontracting company used to facilitate and organize the unreported cash payments to workers.

In total, Katz and his co-conspirators cashed approximately $192 million in payroll checks, causing a combined employment and individual income tax loss of $68 million.

Katz, Elizondo, Gomez-Rivera, Peraza, and Graham will be arraigned on these charges in federal court in Portland on December 15, 2021.

Conspiracy to defraud the U.S. is punishable by up to five years in federal prison, a $250,000 fine, and three years’ supervised release. Filing false currency transaction reports is punishable by up to 10 years in federal prison, a $250,000 fine, and three years’ supervised release.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorneys Seth D. Uram and Gavin W. Bruce 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 grand jury in Portland returned an indictment today charging a former resident of Newberg, Oregon with calling in hoax bomb threats to three schools and one hospital in Oregon.

Sean Case McGinley, 40, has been charged with four counts of making interstate threats involving explosives and four counts of conveying false information and hoaxes about destructive devices.

According to court documents, on October 26, 2021, McGinley began making multiple calls to the Newberg-Dundee Police Department dispatch center in which he referenced putting a pipe bomb under a vehicle in Newberg. Officers checked the area McGinley referenced, but did not locate a bomb. Meanwhile, McGinley’s calls and phone number were recorded and determined to originate from the St. Louis, Missouri area. Investigators later learned that McGinley formerly resided in Newberg and had family in and around St. Louis.

On November 9, 2021, McGinley placed another call to the Newberg-Dundee dispatch center claiming that a pipe bomb had been placed in the vehicle tailpipe of a Newberg Municipal Court judge. A Newberg-Dundee police officer returned McGinley’s call and spoke with him about the alleged tip. During this discussion, McGinley told the officer that he hoped someone would place a pipe bomb in the judge’s vehicle tailpipe and that he believed the judge was worthless.

On the morning of November 12, 2021, the principal of Newberg High School contacted Newberg-Dundee police to report a potential bomb threat. The principal gave officers a voicemail from an unknown person claiming there was a pipe bomb in the school. Officers determined that the hoax threat was placed by McGinley and that it also originated in St. Louis. Later the same morning, McGinley called a similar threat into Sherwood High School. McGinley then called a school resource officer at Sherwood High School, identified himself, and provided information about a purported pedophilia ring in Sherwood.

Between November 18 and 23, 2021, McGinley called in at least eight additional bomb threats to various public and private institutions. On November 18 and 22, 2021, McGinley called in threats to St. Paul High School and an elementary school in Tigard, Oregon. On November 23, 2021 alone, he called in four separate threats to Fowler Middle School and Twality Middle School in Tigard, the Providence Newberg Medical Center, and Providence Sherwood Medical Plaza. The threat made to the Providence Sherwood Medical Plaza prompted the facility to evacuate ambulatory patients and staff.

Amidst McGinley’s late November threat spree, authorities sought and obtained a federal criminal complaint and arrest warrant against McGinley and, on November 24, 2021, FBI agents arrested him in St. Louis. McGinley made his first appearance in federal court in the Eastern District of Missouri on November 29, 2021 and was ordered detained pending transfer to the District of Oregon. The investigation into McGinley’s threats is ongoing.

Making interstate threats involving explosives is punishable by up to 10 years in federal prison, three years’ supervised release, and a fine of $250,000. Conveying false information and hoaxes about destructive devices is punishable by up to five years in federal prison, three years’ supervised release, and a fine of $250,000.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by the FBI with assistance from the Newberg-Dundee, Tigard, and Sherwood Police Departments and the Marion County Sheriff’s Office. Assistant U.S. Attorney Scott M. Kerin 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.—A Pendleton, Oregon man was sentenced to federal prison today for shooting a family member with a semi-automatic pistol and distributing methamphetamine.

Royce Francis Speedis, 34, was sentenced to 77 months in federal prison and three years’ supervised release.

According to court documents, in early March 2019, Speedis and co-defendant Lavella Ruth Thompson, 28, also of Pendleton, arranged to purchase methamphetamine on the Umatilla Indian Reservation. On March 7, 2019, three individuals drove to the reservation to meet and sell methamphetamine to Thompson. Thompson arrived in an SUV and tried to convince the three people to follow her to a second location to complete the sale. When they declined, Thompson returned to the SUV. Three men then exited the SUV with guns and opened fire into the sellers’ car. One passenger in the sellers’ car sustained non-life-threatening injuries after being struck in the back of the head. 

The methamphetamine sellers provided conflicting accounts of Speedis’ involvement in the shooting. A ballistics analysis later linked a Ruger rifle recovered from Speedis’ family’s residence on the reservation to spent cartridge casings found at the shooting scene. However, no arrests were made following the shooting.

On April 17, 2019, Speedis and his sister engaged in an argument with their cousin on the reservation. When the cousin attempted to leave, Speedis pulled a black semi-automatic pistol from his waistband and fired a single round that traveled through his cousin’s right leg into his left leg.

On April 23, 2019, a federal grand jury in Portland returned a two-count indictment charging Speedis with assault with a deadly weapon and using a firearm in connection with a crime of violence. On August 19, 2020, Speedis was indicted a second time, along with Thompson, on one count each of conspiring with one another to distribute and possess with intent to distribute methamphetamine and interference with commerce by robbery.

One year later, on August 23, 2021, Speedis pleaded guilty to assault with a deadly weapon and conspiring to possess with intent to distribute methamphetamine.

On September 7, 2021, Thompson pleaded guilty to the conspiracy charge. She will be sentenced on December 10, 2021.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by the Umatilla Tribal Police Department and the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.

PORTLAND, Ore.—On November 30, 2021, a federal jury in Portland found two members of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) guilty of kidnapping and murder in aid of racketeering for the 2015 kidnapping and murder of Robert Huggins, a Portland resident and former club member.

GJOMC Portland clubhouse president Mark Leroy Dencklau, 61, of Woodburn, Oregon and Portland clubhouse member Chad Leroy Erickson, 51, of Rainier, Oregon, were found guilty of murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death; and conspiracy to commit kidnapping, resulting in death. Additionally, Dencklau was found guilty of racketeering conspiracy.

The jury acquitted Erickson and GJOMC national president Kenneth Earl Hause, 64, of Aumsville, Oregon, of racketeering conspiracy.

“Organized crime will not be tolerated in the District of Oregon. Dencklau, Erickson and other members of the Gypsy Joker Outlaw Motorcycle Club prided themselves in using violence to intimidate others and bolster their sense of power and influence. The kidnapping, torture, and murder of Robert Huggins was a gruesome example of the lengths these men were willing to go to exert their authority over rivals and perceived enemies,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “A robust, coordinated law enforcement operation led to their arrest and prosecution. Our community is safer thanks to the dedication of all involved law enforcement agencies.”

“The heinous actions of this criminal organization clearly warranted this guilty verdict,” said Jonathan T. McPherson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Seattle Field Division. “ATF remains committed to combatting organizations like the Gypsy Jokers Outlaw Motorcycle Club that endanger our communities.”

According to court documents and trial testimony, the GJOMC is a hierarchical criminal organization wherein members and associates maintain their position and status in the organization by participating in, directly or indirectly, various acts of violent racketeering activity including murder, kidnapping, robbery, extortion, narcotics trafficking, and witness tampering. Since the 1980s, the club has been active in several states including Oregon and Washington and, until recently, operated six clubhouses in the Pacific Northwest. The club also has international chapters in Germany, Australia, and Norway.

From 2003 until his arrest, Dencklau served as the president of the club’s Portland chapter. The GJOMC also oversaw several support clubs in Oregon and Washington including the Road Brothers Northwest Motorcycle Club, Solutions Motorcycle Club, Northwest Veterans Motorcycle Club, High-Side Riders, and the Freedom Fellowship Motorcycle Club. Support club members conducted criminal activities in support of the GJOMC and served as a source of new members and revenue for the club.

On July 1, 2015, the body of Robert Huggins, an estranged member of the GJOMC Portland chapter, was found lying in a field in Clark County, Washington. Huggins’ body was badly beaten, and he appeared to have been tortured prior to his death. Huggins was previously stripped of his club membership for allegedly stealing from the club and, after breaking into Dencklau’s Woodburn residence, tying up Dencklau’s girlfriend and stealing multiple firearms. In the days and weeks following this robbery, Dencklau directed GJOMC members to find Huggins.

Several government witnesses testified at trial to Dencklau, Erickson, and their co-defendants’ roles in the revenge kidnapping, torture, and murder of Huggins. On the evening of June 30, 2015, Dencklau and others kidnapped Huggins from a residence in Portland and transported him to a rural property in Southwest Washington. Over the course of several hours, Huggins was severely beaten and tortured. He sustained numerous injuries to his head and face, including a fractured skull; lacerations to his chest and torso; and removed nipples. A local medical examiner ruled that Huggins’ death was caused by multiple blunt and sharp force injuries.

On June 28, 2018, a federal grand jury in Portland returned a four-count indictment charging Dencklau; Earl Deverle Fisher, 48, of Gresham, Oregon; and Tiler Evan Pribbernow, 40, of Portland, with murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death and conspiracy to commit kidnapping, resulting in death.

Later, on November 29, 2018, Dencklau; Fisher; Erickson; Hause; Ryan Anthony Negrinelli, 36, of Gresham, Oregon; and Joseph Duane Folkerts, 61, of Battleground, Washington, were charged by superseding indictment with racketeering conspiracy.

Fisher, Negrinelli, Folkerts, and Pribbernow have all previously pleaded guilty to the conspiracy charge and are awaiting sentencing.

All defendants convicted face a maximum sentence of life in federal prison. Dencklau and Erickson also face mandatory minimum sentences of life in prison.

Acting U.S. Attorney Asphaug and Special Agent in Charge McPherson made the announcement.

This case was investigated by the Portland Police Bureau and ATF, with assistance from the U.S. Marshals Service, IRS-Criminal Investigation, the Clark County Sheriff’s Office, Oregon State Police, and the Oregon and Washington State Crime Labs. Leah K. Bolstad and Steven T. Mygrant, Assistant U.S. Attorneys for the District of Oregon, prosecuted the case with Damaré Theriot, Trial Attorney for the Criminal Division’s Organized Crime and Gang Section.

This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the District of Oregon’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement, community organizations, and local community leaders to prevent and deter future criminal conduct.

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.—A Mexican national residing in Oregon City, Oregon pleaded guilty today for his leadership role in a conspiracy to traffic large quantities of methamphetamine, heroin and fentanyl from Mexico for resale in Oregon and Washington State.

Victor Alvarez Farfan, 49, pleaded guilty to conspiring to possess with intent to distribute and distribute controlled substances and illegal reentry. 

Farfan is the last of 23 defendants charged in the conspiracy to plead guilty. This is Farfan’s second federal conviction in the District of Oregon for drug trafficking and illegal reentry.

According to court documents, Farfan received approximately 20 kilograms of methamphetamine, half a kilogram of heroin and two kilograms of fentanyl from a drug cartel based in Michoacan, Mexico. He and his associates would then resell the methamphetamine and heroin in Hillsboro, Gresham, Portland and Hood River, Oregon, and Tacoma, Washington. Farfan also oversaw the manufacturing of crystal methamphetamine from its liquid form. As part of the conspiracy, one of Farfan’s co-conspirators, Eduardo Alvarez Farfan, 27, of Gresham, provided the two kilograms of fentanyl to a co-conspirator, Noe Antonio Machado-Madrano, 26, who had flown in from Baltimore, Maryland. Investigators arrested Machado-Madrano at a bus station and seized the fentanyl.

On October 17, 2018, a federal grand jury in Portland returned a nine-count indictment charging Farfan and 21 co-defendants with conspiracy to possess with the intent to distribute and distribute methamphetamine, heroin, and cocaine; use of a communication facility, including cellular telephones, in the commission of a controlled substances felony; maintaining drug-involved premises to manufacture and distribute controlled substances; interstate distribution of drug proceeds and money laundering.

On October 24, 2018, a coordinated law enforcement operation led by the FBI with assistance from Homeland Security Investigations, the Westside Interagency Narcotics (WIN) Task Force and the Clackamas County Interagency Task Force (CCITF) resulted in the arrest of Farfan and 17 co-defendants.

Later, on November 27, 2018, Farfan was charged in a second indictment with illegal reentry.

Farfan faces a maximum sentence of life in prison with a 10-year mandatory minimum sentence and a fine of $10 million or twice the gross gains or losses resulting from his offense. With Farfan’s continued acceptance of responsibility, the U.S. Attorney’s Office will recommend a sentence of 180 months in federal prison when he is sentenced on February 15, 2022 before U.S. District Court Judge Michael H. Simon.

As part of the plea agreement, Farfan has agreed to forfeit any criminally-derived proceeds and property used to facilitate his crimes identified by the government prior to sentencing and pay $100,000 to satisfy a forfeiture money judgment.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case is being prosecuted by the U.S. Attorney’s Office for the District of Oregon and is the result of a joint investigation by FBI, HSI, WIN, and CCITF. Forfeiture was litigated by the U.S. Attorney’s Office Asset Recovery and Money Laundering Division. 

WIN includes representatives from the Washington County Sheriff's Office, the Beaverton Police Department, the Hillsboro Police Department, the Tigard Police Department, the Oregon National Guard Counterdrug Program, and the FBI. CCITF includes representatives from the Clackamas County Sheriff's Office, Clackamas County Community Corrections, Oregon City Police Department, Canby Police Department, FBI and Homeland Security Investigations (HSI).

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

WASHINGTON— The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP).  The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In Oregon, three cities were awarded a total of $625,000. 

“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland.  “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.” 

“I am pleased to join Attorney General Garland today in making this important announcement. At a time when many police departments in Oregon and across the country are experiencing reduced or stagnant budgets, I am pleased to see three local agencies receive the funding they need to hire additional officers. Effective community oriented policing programs require, first and foremost, adequate staffing,” said Acting U.S. Attorney Scott Erik Asphaug.

The following cities in Oregon received awards:

-           City of Hermiston – $125,000

-           City of John Day – $375,000

-           City of Reedsport – $125,000

CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based response to persons in crisis.  The complete list of awards can be found here. 

Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.

To learn more about CHP, please visit www.cops.usdoj.gov/chp.  For additional information about the COPS Office, please visit www.cops.usdoj.gov.

The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. 

PORTLAND, Ore.—A West Linn, Oregon man was sentenced to federal prison today for posing as a successful real estate developer, hemp seed cultivator, and owner of a precious metals mining venture to fraudulently obtain millions of dollars from individual investors and lenders.

David A Shelofsky, 53, was sentenced to 70 months in federal prison and three years’ supervised release.

“David Shelofsky tried every possible ploy to trick investors out of their money, and, unfortunately, was quite successful in doing so,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “Federal law enforcement authorities will continue to pursue and prosecute bad actors who seek to steal from well-intentioned investors. Meanwhile, we strongly encourage people to think twice and do extensive research before pursuing unconventional investment opportunities like the ones peddled by this defendant.”

“David Shelofsky promised big returns on an eclectic array of investments, including real estate, precious metals, and hemp seed. In reality, his golden guarantees were nothing more than lies. Victim investors—most of whom have ties to Oregon—lost millions while their money funded Shelofsky’s lavish lifestyle,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.

“IRS Criminal Investigation (IRS:CI) is committed to protecting the public from individuals like David Shelofsky who shamelessly steal and defraud,” said Special Agent in Charge Bret Kressin of IRS:CI. “Because financial crimes devastate communities, we will continue to investigate and bring to justice those who commit these crimes.”

According to court documents, beginning in 2013, in Oregon and elsewhere, Shelofsky knowingly and intentionally devised several different investment fraud schemes. Shelofsky falsely told prospective investors and lenders that he had successful real estate development projects in Bend, Oregon and West Linn and a successful hemp seed cultivation and distribution venture in West Linn. During the same time period, Shelofsky and two other individuals formed a precious metals mining operation that purportedly used a proprietary mining technique to extract precious metals from the sand tailings of other mining operations. While the group made minimal efforts to operate the venture, Shelofsky misled several investors about the status of the operation to fraudulently obtain funds.

Shelofsky made repeated and deliberate misrepresentations and false promises about the status and success of his various ventures, the purported returns investors would receive, and the existence of collateral pieces of real estate supposedly backing investments. Shelofsky employed the services of others to further his schemes and establish his credibility, including a lawyer to create legal documents and an assistant to open bank accounts in the names of several limited liability corporations. Shelofsky used investor funds for personal expenses and to support his own high standard of living. Dozens of individual investors and lenders lost millions of dollars as a result of Shelofsky’s schemes.

On June 5, 2020, Shelofsky was charged by criminal complaint with wire fraud and money laundering. Later, on October 20, 2020, a federal grand jury in Portland returned a 17-count indictment charging Shelofsky with wire fraud and money laundering. On August 26, 2021, he pleaded guilty.

A restitution hearing is scheduled for January 7, 2022 before U.S. District Court Judge Michael H. Simon.

Acting U.S. Attorney Asphaug, Special Agent in Charge Ramsey, and Special Agent in Charge Kressin made the announcement.

This case was investigated by the FBI and IRS Criminal Investigation. Assistant U.S. Attorney Claire M. Fay prosecuted the case. Assistant U.S. Attorney Katie DeVilliers served as forfeiture counsel.

PORTLAND, Ore.—On November 15, 2021, the Department of Justice announced that it will award more than $177 million to improve public safety and serve crime victims in American Indian and Alaska Native communities.

More than $73 million will be awarded to 84 different Tribal communities and commissions under the Coordinated Tribal Assistance Solicitation (CTAS), a streamlined grant application program managed by the Office of Community Oriented Policing Services (COPS Office) and the Office of Justice Programs (OJP). The CTAS program helps tribes apply for Tribal-specific grant programs seeking to enhance law enforcement and justice practices, expand victim services and sustain crime prevention and intervention efforts.

Of this total, $3.5 million will be awarded to three Oregon tribes and one Oregon tribal commission: the Confederated Tribes of the Grand Ronde Community of Oregon, the Coquille Indian Tribe, the Klamath Tribes, and the Columbia River Inter-Tribal Fish Commission.

The COPS Office also awarded $400,000 to Western Oregon University to develop a structured and Tribal-centered approach to enhancing the criminal justice system’s ability to address the tragic and ongoing trend of missing and murdered indigenous persons (MMIP).

The Office for Victims of Crime (OVC) will award an additional $104 million to more 140 tribes and Tribal programs across the country—including two Oregon tribes—under the Crime Victims Fund Tribal Victim Services Set-Aside program. The Cow Creek Bank of Umpqua Tribe of Indians and the Klamath Tribes will each receive $387,817 to fund culturally-appropriate victim services to meet the needs of their communities.

“American Indian and Alaska Native crime victims deserve the same access to services and the same level of support available to survivors in other communities,” said Associate Attorney General Vanita Gupta. “This administration, and this Department of Justice, are committed to fully discharging our responsibilities to Indian nations, especially to those who have experienced the pain and loss that follow victimization. These funds will help establish, expand and enhance services that are vital to recovery and healing.”

“Supporting and enhancing public safety in Tribal communities is a top priority for the U.S. Attorney’s Office in Oregon and has been for many years. We are very pleased to join the COPS Office, OJP, and OVC in announcing these important awards and congratulate all award recipients in Oregon,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. 

This announcement is part of the Justice Department’s ongoing commitment to increasing engagement, coordination and action on public safety in American Indian and Alaska Native communities.

PORTLAND, Ore.—An Albany, Oregon man was sentenced to federal prison today for distributing heroin and methamphetamine in and around Linn County, Oregon.

Anthoni Joseph Bassetti, 28, was sentenced to 60 months in federal prison and four years’ supervised release.

According to court documents, in January 2020, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating Bassetti, a mid-level drug dealer who sold heroin and methamphetamine in and around Linn County. The same month, agents arranged and conducted two undercover drug deals with Bassetti. Following these operations, on March 6, 2020, agents executed a federal search warrant on Bassetti’s Albany residence, seizing user quantities of methamphetamine, heroin, and cocaine and seven firearms. 

On March 3, 2020, Bassetti was charged by criminal complaint with distribution of methamphetamine and heroin. Later, on August 27, 2020, he was charged by criminal information with distribution of methamphetamine. On August 9, 2021, he waived indictment and pleaded guilty to the single charge.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by ATF with assistance from the Linn Interagency Narcotics Enforcement Team (LINE), which consists of investigators from the Albany, Lebanon, and Sweet Home police departments, Linn County Sheriff’s Office, Oregon State Police, and Oregon Army National Guard Counter Drug Task Force. Additional assistance was provided by the Corvallis Police Department and Benton County Sheriff’s Office Street Crimes Unit. Assistant U.S. Attorney William M. McLaren prosecuted the case.

Heroin is a leading cause of overdose deaths in the U.S. 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.

EUGENE, Ore.—A Springfield, Oregon man has been charged with a federal hate crime after using the internet to target and brutally assault a gay man, because of his sexual orientation.

Daniel Andrew McGee, 22, has been charged by criminal complaint with a hate crime. The complaint alleges that McGee attempted to kill the victim.

According to court documents, McGee and his victim met using Grindr, a social media and networking application designed for, and used primarily by, gay men. On July 5, 2021, after agreeing to meet, McGee entered his victim’s apartment and proceeded to assault the man with a wooden club over a period of several minutes. Despite the victim’s pleas for McGee to stop, McGee continued striking the man repeatedly in the head with the club. The victim sustained life-threatening injuries and was transported to a local hospital.

Further investigation revealed that, in the weeks leading up to the attack, McGee used the internet to search for and view graphically violent anti-gay material, including videos of anti-gay attacks. McGee also used the internet to plan the assault, purchasing the weapon and other materials online. In addition, McGee searched online for suggestions about how to get away with murder and how murderers avoid getting caught.

On November 15, 2021, McGee was arrested by the FBI and made his initial appearance in federal court before a U.S. Magistrate Judge. He was ordered detained pending further court proceedings.

Assistant Attorney General Kristen M. Clarke of the Civil Rights Division and Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

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

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

PORTLAND, Ore.—An Oregon man was sentenced to federal prison today after failing to pay more than $1.7 million in personal income taxes in a complex tax evasion case dating back to 2001.

Robert Andrew Lund, of Lebanon, Oregon, was sentenced to 41 months in federal prison and three years’ supervised release.

According to court documents, in the mid 1980s, after working for several years as a computer engineer and programmer for the Hewlett Packard company, Lund moved to Oregon and started a private computer consulting company called Lund Performance Solutions (LPS). LPS’s clients included large businesses, school districts, and health care companies located throughout the U.S. In 1993, Lund paid $30,000 to an offshore trust promoter to establish layers of trusts to hide his LPS profits from the IRS. From 1994 to 1996, despite LPS being highly profitable, Lund reported almost no income on his personal income tax returns. Soon after, the IRS audited Lund and determined he owed more than $2.7 million in taxes plus penalties.

Lund used his untaxed profits to buy 90 acres of land outside Eugene, Oregon on which he built a 7,000 square foot house that was later appraised at $950,000. Lund, a small aircraft pilot, also built a private landing strip on the property. Lund also purchased the former city hall and post office building in Albany, Oregon, a trailer park with multiple rental units, and two rental houses. Lund ran LPS and several smaller businesses, including a health food store, a bookstore, and a scuba diving equipment and lessons company, from the building in Albany.

Lund challenged his tax assessments in U.S. Tax Court and the Ninth Circuit Court of Appeals. Both affirmed he owed the IRS unpaid taxes. In response, Lund stopped filing tax returns altogether and began creating many limited liability companies (LLC) and trusts to conceal his income and assets. During this time, Lund sought the assistance of a known tax protestor attorney from Georgia named Kyle Weeks. Weeks later surrendered his law license and was convicted for filing false tax returns.

Over the next decade, the IRS sent Lund dozens of letters, bills, and summonses for financial records. Lund replied with his own letters claiming he was not a U.S. citizen and therefore not subject to taxation or the IRS’s authority. During this same time, Lund continued to go to extraordinary lengths to hide his assets and income from the IRS while also stealing from government assistance programs. He repeatedly transferred title to his properties to various straw entities and people; hid rental income by signing leases with the names of at least 16 different LLCs, partnerships, and trusts; applied for and received food stamps and Medicaid benefits; and convinced an employee to open a bank account on behalf of one of Lund’s trusts. On his food stamp and Medicaid applications, Lund boldly claimed to be a part-time handyman earning just $810 a month. In total, Lund stole approximately $70,000 in public benefits, most of which were paid by the federal government.

On June 12, 2019, a federal grand jury in Portland returned an indictment charging Lund with tax evasion, failure to file personal income tax returns, obstructing or impeding the IRS, and theft of government funds. Lund was also charged in a separate federal case with making a false statement in connection with a personal bankruptcy case. 

On July 19, 2021, Lund pleaded guilty to tax evasion, failure to file personal income tax returns, and stealing food stamp and Medicaid benefits. All of Lund’s remaining charges were dismissed as part of his plea agreement.

During sentencing, U.S. District Court Judge Michael H. Simon ordered Lund to pay more than $1.7 million in restitution to the IRS and $70,000 to the Oregon Health Authority.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by IRS Criminal Investigation and prosecuted by Seth D. Uram and Meredith D.M. Bateman, Assistant U.S. Attorneys for the District of Oregon.

EUGENE, Ore.—A man staying on the Burns Paiute Indian Reservation was sentenced to federal prison today for illegally possessing a shotgun with an obliterated serial number.

Danny Hank Snapp, 31, was sentenced to two years in federal prison and three years’ supervised release.

According to court documents, on September 13, 2020, a woman called the police after hearing screaming and crying, followed by gunshots, from her neighbor’s residence on the Burns Paiute Indian Reservation. When police arrived on scene, they found Snapp’s ex-wife crying and walking in front of the property. Officers entered the house, removed a child, and placed Snapp under arrest. The officers located a revolver hidden in a floor vent and a shotgun with an obliterated serial number. After initially claiming he had set off fireworks, Snapp admitted to firing the revolver into the air.

Snapp and his ex-wife are not members of the Burns Paiute Tribe.

On September 7, 2021, Snapp pleaded guilty to the firearm charge for which he was sentenced today.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by the FBI with assistance from Bureau of Indian Affairs law enforcement and the Burns Police Department, and prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon, and Thomas Weathers, Tribal Prosecutor for the Burns Paiute Tribe.

PORTLAND, Ore.—On October 29, 2021, President Joseph R. Biden Jr. proclaimed November 2021 as National Native American Heritage Month.

The proclamation honors the perseverance of American Indian and Alaska Native peoples and reaffirms the nation’s commitment to upholding trust and treaty responsibilities, strengthen Tribal sovereignty, and advance Tribal self-determination. The proclamation also recognizes the resilience of native peoples despite a painful history of enduring unjust Federal policies, to include assimilation and termination.

The U.S. Attorney’s Office for the District of Oregon joins its Tribal, federal, state, and local partners in taking this opportunity to celebrate the countless contributions of native peoples past and present and honor the influence they have had on the advancement of our nation.

“The U.S. Attorney’s Office is deeply committed to working with our Tribal partners to build and sustain strong, healthy, and safe native communities. The disproportionately high levels of violence experienced by American Indians and Alaska Native peoples, especially Native American women, is unacceptable and requires urgent law enforcement action,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “Pursuing justice on behalf of Tribal communities will always be a top priority for this office.”

The U.S. Attorney’s Office has a proud history of actively engaging in government-to-government relationship building with the nine federally recognized Tribal nations in the District of Oregon. A multi-disciplinary team of prosecutors and victim advocates works tirelessly to bring justice to Tribal crime victims and provide statewide leadership on a variety of pressing law enforcement issues impacting Tribal communities.

In June 2020, the U.S. Attorney’s Office announced the hiring of its first Missing and Murdered Indigenous Persons (MMIP) program coordinator and, in February 2021, released its first annual MMIP program report. MMIP is an important and sensitive issue to Tribal communities. To learn more about the U.S. Attorney’s Office MMIP program, please visit www.justice.gov/usao-or/indian-country/mmip.html.

With Veteran’s Day 2021 approaching, the U.S. Attorney’s Office also recognizes and honors American Indians and Alaska Natives who have served or continue to serve in our nation’s Armed Forces. As President Biden’s proclamation states, for more than 200 years, “Native Americans have defended our country during every major conflict and continue to serve at a higher rate than any other ethnic group” in the U.S.

For more information about the U.S. Attorney’s Office Indian Country Program or to sign up for our Indian Country Quarterly Newsletter, please visit www.justice.gov/usao-or/indian-country.

PORTLAND, Ore.—A Portland man pleaded guilty today for perpetrating a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.

Eric Wade Lysne, 35, pleaded guilty to bank and wire fraud.

According to court documents, in April 2020, Lysne devised and perpetrated a scheme to defraud the Small Business Administration (SBA) and various financial institutions by fraudulently applying for and obtaining Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans using false borrower information. Lysne created fictitious entities, including Paradigm Consulting Groups (Paradigm), on whose behalf he applied for and received the loans.

In May 2020, Lysne applied for an EIDL, falsely claiming Paradigm employed 10 individuals in the agriculture sector and grossed nearly $1 million for the twelve-month period ending in January 2020. Lysne also falsely claimed that he, as the applicant, had not been convicted of any felonies in the last five years when, in fact, he had been in prison for nearly a year following a May 2019 felony conviction in Washington County, Oregon, and was then on post-prison supervision.

In early June 2020, SBA disbursed a $147,400 EIDL to Paradigm through Lysne’s personal bank account. The deposit was followed by an additional $10,000 advance paid several weeks later. After receiving the funds, Lysne spent them on various personal expenses, including travel bookings and numerous cash withdrawals.

In April 2021, Lysne applied for an increase in his EIDL balance, seeking to borrow an additional $302,600. The application was pending when Lysne was indicted in May 2021. Around the same time, Lysne also applied for a $50,000 PPP loan on Paradigm’s behalf from a bank in Logan, Utah. In the application, Lysne again falsely claimed he had not been convicted of any recent felonies. He further falsely represented that Paradigm employed two individuals and had an average monthly payroll of $20,000. Based on Lysne’s fraudulent misrepresentations, the bank approved the loan application in part and disbursed a $27,700 loan to Lysne.

On May 19, 2021, a federal grand jury in Portland returned a two-count indictment charging Lysne with bank fraud and wire fraud.

Wire fraud is punishable by up to 20 years in prison, a fine of $250,000 or twice a defendant’s gross gains or the victim’s losses, and three years’ supervised release. Bank fraud is punishable by up to 30 years in prison, a $1 million fine, and five year’s supervised release.

Lysne will be sentenced on February 1, 2022 before U.S. District Court Judge Michael H. Simon.

As part of his plea agreement, Lysne has agreed to pay $360,467 in restitution to SBA and forfeit $185,100 seized by law enforcement.

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.

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. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable PPP loans to small businesses for job retention and other expenses. In April 2020, Congress authorized over $300 billion in additional PPP funding.

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.—A federal grand jury in Portland has returned a two-count indictment charging a Tigard man with perpetrating separate insurance and COVID-relief fraud schemes while on federal supervised release.

Johnell Lee Cleveland aka “Bankroll Johnny”, 40, a resident of Tigard, has been charged with one count each of conspiracy to commit wire fraud and wire fraud.

Cleveland’s co-conspirator, Tanya Renee Morrow, 33, of Las Vegas, Nevada, is also named in the indictment for her role in the insurance fraud scheme.

According to the indictment, in 2018, law enforcement executed multiple search warrants as part of an ongoing investigation of Cleveland, a suspected distributor of counterfeit oxycodone pills in the Portland Metropolitan Area. On March 7, 2018, federal agents arrested Cleveland and seized hundreds of oxycodone pills containing fentanyl; a ballistic vest; seven firearms, including a machine gun; more than $180,000 in cash and more than $100,000 in jewelry from his Portland residence.

On April 2, 2019, Cleveland pleaded guilty to conspiring to possess with intent to distribute and distribution of cyclopropyl fentanyl, possessing an unregistered firearm, and money laundering and, on July 11, 2019, he was sentenced to 57 months in federal prison. At Cleveland’s sentencing, a federal judge signed a forfeiture order, forfeiting items previously seized from Cleveland, including multiple pieces of jewelry.

In the summer of 2020, Cleveland sought and obtained a compassionate early release from prison based on the health risks associated with the COVID-19 pandemic and was released on August 4, 2020. Later the same month, Cleveland and Morrow submitted a personal articles insurance policy application to State Farm Insurance for nine pieces of jewelry previously seized by law enforcement. On October 9, 2020, State Farm issued Cleveland and Morrow a policy valued at more than $100,000 without a physical examination of the insured jewelry.

On February 8, 2021, Morrow submitted a burglary report to the Las Vegas Police Department claiming that her Mercedes-Benz C300 sedan and items from her Las Vegas residence had been stolen, including the nine pieces of insured jewelry. Two weeks later, Cleveland emailed State Farm a notarized statement of loss signed by both him and Morrow. Over the next several months, Cleveland and Morrow submitted additional documents and made affirmative statements to State Farm in support of their loss claim.

Beginning in October 2020, while the insurance fraud scheme involving Morrow was ongoing, Cleveland devised a separate scheme to fraudulently obtain Covid-relief funds authorized under the federal Coronavirus Aid, Relief, and Economic Security (CARES) act. The CARES Act, signed into law on March 27, 2020, created the Pandemic Unemployment Assistance (PUA) program, which provided unemployment benefits to individuals not eligible for regular unemployment compensation. PUA claims in Oregon are received and processed by the State of Oregon’s Employment Department.

On October 14, 2020, Cleveland applied for PUA benefits beginning on April 11, 2020 and continuing through September 12, 2020, claiming he was unemployed because of the COVID-19 pandemic. In reality, Cleveland was unemployed due to having been incarcerated during the period of time for which he was seeking employment benefits. Despite these false claims, Cleveland’s application was approved and, between October 2020 and August 2021, he received thousands of dollars in PUA payments.

Cleveland was arrested today and made his initial appearance in federal court before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and ordered detained pending a 4-day jury trial scheduled to begin on January 4, 2021.

If convicted, Cleveland faces a maximum sentence of 20 years in federal prison, 5 years’ supervised release, and a fine of $250,000.

Morrow was also arrested today and will make her first appearance in federal court on November 4, 2021 in Las Vegas.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by IRS-Criminal Investigation and the FBI, with assistance from the Portland Police Bureau and the U.S. Marshals Service. Assistant U.S. Attorney Peter D. Sax is prosecuting the case.

Cleveland and Morrow’s insurance fraud scheme was first discovered by a State Farm insurance claim specialist who alerted federal authorities for further investigation.

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

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

 

PORTLAND, Ore.—In August and October 2021, coordinated law enforcement operations targeting two Portland-area transnational drug trafficking cells led to the arrests of the cells’ leaders and more than a dozen associates, and the seizure of approximately 200,000 counterfeit oxycodone pills suspected to contain fentanyl, two pounds of fentanyl powder, 40 pounds of methamphetamine, 45 pounds of heroin, 13 pounds of cocaine, nine firearms, and more than $1.4 million cash in drug proceeds.

“At a time when communities across the country continue to suffer the terrible effects of the opioid addiction crisis, there are some individuals seeking to profit off the pain and anguish of others. The drug trafficking cells targeted by this investigation are among the worst we’ve seen operating in Oregon. Counterfeit oxycodone pills containing fentanyl pose a severe risk of fatal overdose unmatched by any other type of widely available street drug,” said Acting U.S. Attorney Scott Erik Asphaug. “I applaud the many law enforcement agencies who played a role in bringing the leaders and associates of these two cells to justice. Our communities are safer because of your efforts.”

“This investigation resulted in arrests of individuals with ties to Mexico and significant seizures of drugs, including dangerous counterfeit tablets containing fentanyl, guns, and U.S. currency. The DEA worked with several law enforcement partners throughout Oregon, including the Tualatin Police Department, Oregon City Police Department, Tigard Police Department, and Portland Police Bureau. The dismantling of this international drug trafficking organization is an example of how effective law enforcement investigations can be when we work together to make our communities safer,” said Cam Strahm, Assistant Special Agent in Charge of the U.S. Drug Enforcement Administration in Oregon.

The two takedown operations, led by the U.S. Drug Enforcement Administration (DEA), came after a nearly 12-month investigation and the federal indictments of the two cell leaders and more than a dozen key associates. Early in the investigation, authorities believed they were investigating a single drug trafficking cell. As the investigation continued, federal agents discovered that two men—Jesus Miramontes-Castaneda, 31, of Los Angeles, California, and Horacio Luna-Perez, 39, of Hillsboro, Oregon—operated separate drug trafficking cells loosely-affiliated with one another by shared sources of supply and distribution networks.

Both cells acquired large quantities of oxycodone, heroin, methamphetamine, and other illegal drugs from sources of supply in California and elsewhere and used vehicles to transport the bulk narcotics to Oregon. Once in Oregon, the drugs were taken to stash houses where they were processed and prepared for sale. A large network of local drug dealers would then distribute user quantities of each drug. The cells routinely changed stash locations and rotated vehicles and phones to avoid detection by law enforcement.

On August 11, 2021, a federal grand jury in Portland returned a four-count indictment charging Miramontes-Castaneda and five associates with conspiring with one another to traffic large quantities of heroin and methamphetamine from California for distribution in the Portland and Salem, Oregon metropolitan areas. Miramontes-Castaneda’s cell distributed narcotics in Salem and the greater Portland area. Miramontes-Castaneda and several of his associates were arrested during the first takedown operation on August 12, 2021.

On September 14, Luna-Perez and nine associates were charged in a four-count indictment with conspiracy to possess with intent to distribute heroin, fentanyl, and methamphetamine. Similar to Miramontes-Castaneda, Luna-Perez’s cell imported large quantities of counterfeit oxycodone, heroin, and methamphetamine from California for distribution in and around Portland and in Eastern Washington. Luna-Perez’s cell also had ties to drug traffickers in Colorado and California. On October 7, 2021, the second takedown operation targeted Luna-Perez’s cell. Luna-Perez and several associates were arrested during the operation.

Luna-Perez’s brother and trafficking associate—Ricardo Luna-Perez, 41—made his first appearance in the District of Oregon today before a U.S. Magistrate Judge in Portland after his October 26, 2021 arrest in Vancouver, Washington. He was ordered detained pending a ten-day jury trial scheduled to begin on December 7, 2021. Ricardo Luna-Perez is the eighteenth defendant in the Miramontes-Castaneda and Luna-Perez trafficking cells to appear in federal court and be ordered detained pending a jury trial.

Conspiring to distribute and possess with intent to distribute heroin, methamphetamine, or fentanyl of these quantities is punishable by a maximum sentence of life in prison with a mandatory minimum sentence of ten years.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by the DEA with assistance from Oregon State Police, Portland Police Bureau, Tigard Police Department, the Clackamas County Interagency Task Force (CCITF) including member agencies the Canby Police Department, Oregon City Police Department, and Tualatin Police Department; and Central Oregon Drug Enforcement (CODE). It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

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

Fentanyl and heroin are leading causes of overdose deaths in the U.S. 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.

PORTLAND, Ore.—A Portland man was sentenced to federal prison today for his role in a fraud scheme whereby he and a co-conspirator would steal mail from residential mailboxes and use stolen personal identification information to defraud local banks.

Demontae Sanders, 48, was sentenced to 10 months in federal prison and five years’ supervised release. Restitution will be determined at a later date.

According to court documents, beginning on an unknown date and continuing until at least July 7, 2020, Sanders and an accomplice, Latanya Jenkins, 50, also of Portland, conspired with one another to steal mail from residential mailboxes throughout the Portland Metropolitan Area. Sanders and Jenkins stole checks, credit cards, and other personal identity information that they used to impersonate victims and open accounts at several local credit unions and banks. Sanders and Jenkins used the accounts to defraud these financial institutions.

To further their scheme, Sanders and Jenkins communicated with one another by text and used the internet at Jenkins’ residence to open several bank accounts using stolen information. Sanders and Jenkins collected hundreds of stolen financial documents including bank statements, checks, tax returns, U.S. Passports, and other government-issued identification documents. The pair also stole and cashed an Economic Impact Payment check issued by the U.S. Treasury.

On September 24, 2020, a federal grand jury in Portland returned an 18-count indictment charging Sanders and Jenkins with conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and mail theft. On May 4, 2021, Sanders pleaded guilty to conspiring to commit bank fraud and mail theft.

On August 23, 2021, Jenkins pleaded guilty to conspiring to commit bank fraud, mail theft, and aggravated identity theft. She will be sentenced on December 14, 2021.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated jointly by Homeland Security Investigations and the U.S. Postal Inspection Service. Assistant U.S. Attorney Seth D. Uram prosecuted the case.

PORTLAND, Ore.—A Beavercreek, Oregon man was sentenced today for discharging a firearm into the Mark O. Hatfield United States Courthouse in Downtown Portland on January 8, 2021.

Cody Levi Melby, 40, was sentenced to five years’ federal probation.

“Cody Melby is a disabled combat veteran who, after becoming detached from his mental health support system, made an extraordinarily poor and dangerous decision to fire a gun at the Hatfield Courthouse. Fortunately, nobody was injured during this incident,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “The sentence imposed today will ensure Mr. Melby receives the treatment he needs while also protecting the community.”

“We commend the work of our partners, the Federal Protective Service and U.S. Attorney's Office, in resolving this troubling incident. When appropriate, we are always looking for ways to divert people away from violence and direct them toward rehabilitation. In many cases this happens out of the public eye, but in a situation like this one we want to highlight that a holistic response is sometimes more effective,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.

According to court documents, at approximately 7:35pm on January 8, Melby jumped over a security fence at the Hatfield Federal Courthouse and fired several rounds into the building’s exterior with a 9mm handgun. Two courthouse security officers exited the building and approached Melby after observing him on a closed-circuit security camera. Melby told the officers he had a gun and the officers placed him in handcuffs without further incident.

Federal Protective Service officers dispatched to the scene located five spent 9mm bullet casings, three spent bullets, three bullet holes in plywood affixed to the building’s stone columns, and damage to the metal soffit above the building’s main entrance.

After his arrest, Melby was charged by criminal complaint with destruction of government property. Later, on January 21, 2021, a federal grand jury in Portland returned a one-count indictment charging Melby with possession of a firearm in a federal facility. On October 14, 2021, Melby pleaded guilty to the single charge.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by the Federal Protective Service and FBI. It was prosecuted by Assistant U.S. Attorney Paul Maloney.

EUGENE, Ore.—A federal grand jury in Eugene returned an indictment today charging an Oregon restauranteur with tax evasion and hiding cash from his businesses.

Meeraali Shaik, a Corvallis, Oregon resident and the owner of Evergreen Indian Cuisine, has been charged with one count of tax evasion.

According to court documents, Shaik owned and operated Evergreen Indian Cuisine locations in Eugene and Corvallis. From before 2013 and continuing until 2017, Shaik is alleged to have willfully attempted to evade the assessment of personal income taxes by, among other illegal acts, providing his tax preparer with incomplete bank and income records and false information regarding the cash receipts of his restaurants. Shaik used a portion of the underreported cash receipts to pay mortgage payments on properties in Eugene, Corvallis, and Chandler, Arizona and made wire transfers to a bank account in India.

Shaik will make his initial appearance in federal court before a U.S. Magistrate Judge on November 2, 2021. During his first appearance, Shaik will be arraigned, and a jury trial date will be set.

If convicted, Shaik faces a maximum sentence of five years in federal prison, three years’ supervised release, and a $100,000 fine.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by IRS-Criminal Investigation with assistance from the FBI. Assistant U.S. Attorney Gavin W. Bruce 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.—Community members and law enforcement officials from throughout the tri-county area will convene this week for the sixth-annual Building Bridges of Understanding in Our Community event on October 21, 2021 at 6:30pm PDT.

This two-hour virtual event is open to the public and hosted by the Muslim Educational Trust (MET) in Tigard, Oregon. To register, please visit https://conta.cc/3jwOKem.

This year’s theme is “What is Public Safety? Joining together to build bridges, share perspectives, and create solutions.” Criminal justice and community leaders will share perspectives in two moderated panel discussions: “What is public safety and what does it mean to you?” and “A year after George Floyd’s murder: Where are we now?” Each panel discussion will include a question-and-answer period.

Participating organizations include: MET, the U.S. Attorney’s Office for the District of Oregon, the Immigrant and Refugee Community Organization (IRCO), Washington County District Attorney’s Office, Washington County Sheriff’s Office, Clackamas County District Attorney’s Office, City of Portland’s Office of Violence Prevention, Multnomah County Department of Community Justice, Portland Police Bureau, Department of Safety Standards and Training, Oregon Department of Justice, Lake Oswego Police Department, and Beaverton Police Department.

For six consecutive years, leaders from public safety and civil society organizations have come together to build and strengthen trust in one another and to cultivate trust with the communities they serve. The annual event has been held at MET since its inception in the fall of 2016.

To view a video of last year’s event, please visit https://youtu.be/ae3Zj6TNDIY.

The Building Bridges event series is sponsored by the Washington County District Attorney’s Office, Washington County Sheriff’s Office, Washington County Administration, Clackamas County District Attorney’s Office, City of Lake Oswego, Lake Oswego Respond to Racism, Concerned Citizens of West Linn, Latino Network, Ecumenical Ministries of Oregon, IRCO, Muslim Community Center of Portland, Tigard Police Department, Portland Office of Civic Life, Portland Bureau of Transportation, Portland Police Bureau, New Portland Foundation, Portland’s New Portland Policy Commission, Salman Alfarisi Islamic Center of Corvallis, Multnomah County Sheriff’s and District Attorney’s Offices, and the U.S. Attorney’s Office for the District of Oregon.

For media inquiries or to book interviews with steering committee members, please contact Stephen Mayer of the Washington County District Attorney’s Office by emailing stephen_mayer@co.washington.or.us or calling (971) 708-8219.

Media outlets are also welcome to contact the following steering committee members directly:

• Wajdi Said; Muslim Educational Trust; wajdi@metpdx.org
• J.W. Matt Hennessee; Vancouver Avenue Baptist Church; vafbchurch1@aol.com
• Jack Hanna; New Portlanders Foundation; jackahanna@gmail.com 
• Linda Castillo; Commissioner for Hispanic Affairs and DEI Manager at IRCO; lindaC@irco.org
• Erin Hubert; Multnomah County Sheriff’s Office; erin.hubert@mcso.us
• Kevin Barton; Washington County DA; stephen_mayer@co.washington.or.us

   

PORTLAND, Ore.—A former resident of Milwaukie, Oregon pleaded guilty today in federal court for illegally exporting marijuana grown in Oregon to Georgia for resale and laundering the proceeds.

Dante Baldocchi, 29, currently a resident of Altadena, California, waived indictment and pleaded guilty to conspiring to distribute marijuana and commit money laundering.

According to court documents, between January 2017 and June 2020, Baldocchi purchased marijuana in Oregon and arranged to have it shipped via freight to Georgia where he and others sold it to distributors in the Atlanta area and in North Carolina. Baldocchi and his associates shipped portions of the proceeds from Georgia back to Oregon in vacuum-sealed bags and other portions concealed in buckets of drywall spackle.

On June 9, 2020, a federal search warrant was executed on Baldocchi’s then-residence in Milwaukie. Investigators located more than 330 pounds of marijuana grown in Oregon.

On August 19, 2021, Baldocchi and an associate—Hunter Lacaden, 27, of Portland—were charged by criminal information with conspiring to distribute marijuana and commit money laundering.

Baldocchi faces a maximum sentence of 60 years in federal prison with a five-year mandatory minimum, a $5.5 million fine and four years of supervised release. He will be sentenced on January 6, 2022, before U.S. District Court Judge Michael H. Simon.

On September 21, 2021, Lacaden pleaded guilty to conspiring to distribute marijuana. He will be sentenced on December 13, 2021.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by Homeland Security Investigations and IRS-Criminal Investigation with assistance from the Clackamas County Sheriff’s Office and Portland Police Bureau. Assistant U.S. Attorney Julia E. Jarrett is prosecuting the case.

PORTLAND, Ore.—Two self-identified members of the Unthank Park Hustlers, a local Bloods gang set, are facing federal charges after illegally purchasing 82 firearms from local gun shops since April 2020.

Edward Charles Green and his twin brother Thomas Edward Green III, both 23 and residents of Gresham, Oregon, have been charged by criminal complaint with falsifying information in connection with the acquisition of a firearm and making false statements in a federal firearms licensee (FFL) record.

According to court documents, in May 2021, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) opened an investigation after receiving information from the Gresham Police Department (GPD) and Multnomah County Sheriff’s Office (MCSO) describing several shooting incidents allegedly involving Edward Green and Thomas Green III. At around the same time, ATF agents also received information alleging multiple illegal firearm purchases by the brothers.

On April 5, 2020, Portland Police Bureau (PPB) officers responded to an incident involving the Greens where a gun was fired from one apartment into another on Southeast Alder Street in Portland and later seized a .357 caliber revolver. Less than two weeks later, on April 23, 2020, PPB officers responded to reports of a house struck by gunfire on NE Sumner Street in Portland. Officers observed that the gun appeared to have been fired from inside the Greens’ father’s home, leaving a small hole in their father’s front window. After telling officers he threw a rock through his own window, the brothers’ father changed his explanation and claimed a gun accidentally fired when he was showing his son how to clean it. PPB located and seized three handguns and an AK-47 from the residence. After reviewing Edward Green’s firearm purchase records, ATF agents determined Green had illegally purchased three of the four guns seized.

Between August 25 and August 30, 2020, PPB officers recovered four more firearms illegally purchased by Edward Green. One of the firearms was recovered after officers responded to a shooting incident outside the brothers’ Southeast Portland apartment. Three others were recovered when PPB officers responded to Portland Adventist Hospital to interview a walk-in  gunshot victim and observed a vehicle parked outside with obvious signs of gunshot damage. Officers arrested the vehicle’s occupants and located the firearms.

On November 11, 2020, MCSO deputies responded to a Fairview, Oregon car crash caused by gunfire involving Edward Green. Deputies later executed a search warrant on a backpack recovered from Green’s vehicle and found two more pistols Green had illegally purchased and two pounds of packaged marijuana. A few months later, on January 23, 2021, MSCO deputies recovered another firearm illegally purchased by Green during a traffic stop.

In May 2021, GPD officers responded to two separate shooting incidents at a house on SW Lillyben Avenue in Gresham. At the time of the shootings, both Green brothers listed the Lillyben residence on their Oregon driver’s licenses. During the first shooting, on May 12, 2021, an unknown assailant fired several rounds into the house. During the second shooting, on May 21, 2021, a drive-by assailant fired 14 additional rounds into the house. An unknown person in the house fired 30 rounds in response, some of which struck occupied neighboring houses. On June 3, 2021, members of the Metro Safe Streets Task Force executed a search warrant on the residence and found nine empty semi-automatic gun cases, several dozen spent bullets and cartridge casings, 27 firearm and rifle magazines, a range bag with more than 400 spent cartridges, and five receipts for recent gun purchases made by the Green brothers. Forensic analyses of the spent cartridges linked them to at least 10 different shootings in the Portland area between April 6, 2020 and July 11, 2021.

In July and August 2021, two more firearms linked to the Green brothers were recovered by law enforcement. On July 23, 2021, officers from the Beaverton Police Department conducted a traffic stop on a vehicle with no license plates. While searching the vehicle, officers located a .40 caliber pistol purchased by Thomas Green III just four days earlier. On August 30, 2021, PPB officers conducted a traffic stop on a vehicle occupied by four people, one of whom was a known member of the Hoover Criminal Gang. Officers located a .40 caliber pistol in vehicle illegally purchased by Edward Green several months earlier.

In total, between April 5, 2020 and August 30, 2021, area law enforcement officers recovered 12 firearms illegally purchased by the Green brothers. A subsequent review of ATF and State of Oregon records revealed that in an 18-month period beginning April 1, 2020, the brothers illegally purchased 82 firearms from Portland area gun shops.

On September 29, 2021, a coordinated law enforcement operation was conducted on a local apartment occupied by Victor White, a felon and gang associate of the Green brothers. Thomas Green III was found sleeping in the apartment and arrested. Investigators seized two semi-automatic firearms, 16 empty gun boxes, and ammunition from the residence. Green made his first appearance in federal court the same day and was later released to home confinement pending further court proceedings.

Edward Green was arrested today by ATF agents at his father’s residence in Northeast Portland. He made his first appearance in federal court before a U.S. Magistrate Judge and was detained pending further court proceedings.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by members of the Metro Safe Streets Task Force including ATF, FBI, GPD, MCSO, and PPB. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.

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

Formed in April 2021, the Metro Safe Streets Task Force is a multi-agency initiative focused on investigating and prosecuting gun crimes in Multnomah County. As part of this effort, federally-deputized officers from the Portland Police Bureau, Multnomah County Sheriff’s Office, and Gresham Police Department work with agents from the FBI and ATF to investigate gun crimes after they occur and, where appropriate and supported by evidence, charge those responsible in state or federal court. Prosecutors from the Multnomah County District Attorney’s Office and the U.S. Attorney’s Office for the District of Oregon work closely with task force officers to determine if state or federal charges are warranted and which jurisdiction is most appropriate for adjudication.

PORTLAND, Ore.—A Portland man with several prior drug trafficking convictions was sentenced to federal prison today for his role in a conspiracy to distribute large quantities of heroin in Oregon and Washington State.

Christian Zepeda-Quezada aka Miguel Agredano, 32, was sentenced to 130 months in federal prison and five years’ supervised release.

According to court documents, Zepeda-Quezada was a heroin dispatcher who used multiple drug dealers to distribute large quantities of heroin in Portland and Vancouver, Washington. In his role as dispatcher for the trafficking network, Zepeda-Quezada took heroin orders from customers by phone and arranged for dealers to hand-deliver the orders directly to the customers. As such, Zepeda-Quezada was insulated from direct exposure and faced less risk of harm than his co-conspirators.

Between January and August 2019, the U.S. Drug Enforcement Administration (DEA) and Clark Vancouver Regional Drug Task Force (CVRDTF) made multiple controlled purchases of heroin from Zepeda-Quezada’s network before obtaining a warrant to search Zepeda-Quezada’s Vancouver residence and other locations. On August 7, 2019, agents seized distribution quantities of heroin and cocaine from Zepeda-Quezada’s residence. Zepeda-Quezada was arrested during the search and ordered detained pending trial.

On August 6, 2019, a federal grand jury in Portland returned a five-count indictment charging Zepeda-Quezada and two co-conspirators—Javier Perez-Alejandre, 22, a California resident, and Angel Umanzor-Ardon, 21, of Portland—with conspiracy to distribute heroin and distribution of heroin.

On June 2, 2021, Zepeda-Quezada pleaded guilty to conspiracy to distribute heroin.

On October 20, 2020, Umanzor-Ardon pleaded guilty to conspiracy to distribute heroin and, on April 28, 2021, he was sentenced to 27 months in federal prison and five years’ supervised release.

Perez-Alejandre remains in custody pending a four-day jury trial scheduled to begin October 18, 2021.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by DEA with assistance from CVRDTF. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.

Heroin is a leading cause of overdose deaths in the U.S. 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.

EUGENE, Ore.—On September 15, 2021, a coordinated law enforcement operation targeting the leader and several associates of a Lane County drug trafficking cell led to the seizure of 384 pounds of methamphetamine, the largest single methamphetamine seizure in Oregon State history and valued at over a million dollars.

The operation, led by the U.S. Drug Enforcement Administration (DEA) with assistance from the Springfield Police Department, Eugene Police Department, and Linn Interagency Narcotics Enforcement Team (LINE) came after the cell’s leader, Martin Manzo-Negrete aka Javier Cardenas-Manzo, a 47-year-old Eugene resident, was charged by federal criminal complaint with possessing with intent to distribute methamphetamine. Manzo-Negrete has a long history of drug trafficking and previously served 14 years in federal prison.

Manzo-Negrete was arrested during the operation and made his first appearance in federal court on September 16, 2021. He was ordered detained pending further court proceedings.

Four of Manzo-Negrete’s associates were also arrested and are facing federal drug charges. They include Eugene residents Gustavo Manzo-Mares, 45; Candice L. Barrett, 52; John C. Willis, 59; and Nathan Lee Daniels, 46. A fifth associate, Frank Buehler, 52, also of Eugene, has been charged, but remains at large.

As part of the operation, law enforcement executed federal search warrants at multiple locations in Lane County. In addition to methamphetamine, they seized 14 firearms—some of which were stolen—and more than $76,000 in cash.

DEA and the Eugene Police Department Street Crimes Unit began investigating the Manzo-Mares cell in October 2020 for its role in trafficking large quantities of methamphetamine from California to Oregon for resale in and around Lane County. The drug trafficking organization transported large quantities of methamphetamine by car from Southern California to Oregon. Once in Oregon, the drugs were stored, divided, and then distributed into the community.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by the DEA with assistance from Springfield Police Department, Eugene Police Department Street Crimes Unit, and LINE. Assistant U.S. Attorney Joseph H. Huynh is prosecuting the case.

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

Bags of seized methamphetamine. Seized firearms. Bags of seized cash.

 

PORTLAND, Ore.—A Homestead, Florida man was sentenced to federal prison today for perpetrating a multi-year fraud scheme wherein he filed 745 false tax returns in 19 different states.

Damian O. Barrett, 40, was sentenced to 54 months in federal prison and three years’ supervised release.

“With tax filing season right around the corner, it is important that all Americans who choose to hire a tax preparation professional take the necessary precautions to ensure they are legitimate and have their best interests in mind, said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “Misusing personally identifiable information to submit fraudulent tax returns in the names of unknowing clients is a serious crime and be treated as such by our office. We applaud the IRS’s effort to hold Mr. Barrett accountable for his crimes.”

“Mr. Barrett used his specialized knowledge as a tax preparer to obtain false refunds at the cost of honest taxpayers all over the United States. Today’s sentence is a victory for those of us who have been victims of a sophisticated tax refund scheme,” said IRS Criminal Investigation (IRS:CI) Special Agent in Charge Bret Kressin. “IRS:CI continues to prioritize investigating individuals who diminish the integrity of our tax systems to hold them accountable for their fraud.”

According to court documents, Barrett owned two tax preparation companies, Max Tax Experts, LLC and Winngate Tax Services, LLC. Barrett used Max Tax Experts to service and submit tax returns on behalf of legitimate clients. He used Winngate Tax Services to submit false and fraudulent income tax returns. From approximately January 2015 through December 2018, Barrett filed 745 false tax returns to 19 different state taxing authorities. The Oregon Department of Revenue alone received 348 tax returns requesting more than $322,000 in fraudulent refunds. The agency paid out more than $130,000 in fraudulent refunds to Barrett.

To further his scheme, Barrett used the names, social security numbers, and employer identification numbers of various individuals, some of whom were his clients, to submit fraudulent returns. Additionally, he set up bank accounts in the names of some of his victims to receive fraudulent refunds. In total, Barrett sought nearly $900,000 and received more than $234,000 in fraudulent refunds.

In addition to his fraud scheme, in 2016, Barrett intentionally excluded more than $21,000 in income from his personal income tax return, resulting in a tax loss of $5,506. In 2017, Barrett failed to file a personal income tax return, creating an additional tax loss of $68,918. 

On August 5, 2020, a federal grand jury in Portland returned a six-count indictment charging Barrett with mail fraud and money laundering. Later, on June 17, 2021, he was charged by superseding criminal information with mail fraud, filing a false tax return, and aggravated identity theft. On July 19, 2021, Barrett pleaded guilty to all three charges in the superseding information.

During sentencing, U.S. District Court Judge Michael H. Simon ordered Barrett to pay more than $234,000 in restitution to 11 state departments of revenue, including the taxing authorities in Arizona, Connecticut, Iowa, Louisiana, Michigan, Missouri, New Jersey, New Mexico, Oklahoma, Oregon, and South Carolina, and more than $74,000 to the IRS.

Acting U.S. Attorney Asphaug and Special Agent in Charge Kressin made the announcement.

This case was investigated by IRS:CI with assistance from the U.S. Postal Inspection Service. Assistant U.S. Attorneys Katherine A. Rykken and Seth D. Uram prosecuted the case.

MEDFORD, Ore.—A federal grand jury in Medford has returned an indictment charging the leader and multiple associates of a Klamath Falls, Oregon area drug trafficking ring with conspiring with one another to transport large quantities of methamphetamine and fentanyl from California to Oregon for distribution and sale in and around Klamath Falls.

Juan Jessie Martinez-Gil, 57, a Mexican National residing in Reno, Nevada, has been charged with conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine and fentanyl, distribution of methamphetamine and fentanyl, and attempted distribution of methamphetamine.

Nine of Martinez-Gil’s associates also face federal charges for their roles in the conspiracy. They include:

• Elizabeth Irene Martinez-Agbalog, 47, of Reno, Nevada 
• Anthony Wayne Smith, 56, of Midland, Oregon
• Katherine Desiree O'Brien, 42, of Klamath Falls, Oregon
• Larry Ralph Labeau Jr., 57, of Klamath Falls, Oregon
• Bryce Allen Stewart, 57, of Klamath County, Oregon
• Candice Nadine Mckee, 29, of Lakeview, Oregon
• Peter Hill Mitchell, 40, of Lakeview, Oregon
• Cole Edward Reeves, 51, of Klamath Falls, Oregon
• Reynel Heriberto Ramos-Cornejo, 49, a Honduran National residing in Lynwood, California

According to the indictment, between August 1, 2019 and September 2, 2021, Martinez-Gil and his associates conspired with one another to possess and distribute large quantities of methamphetamine and fentanyl in the form of counterfeit Oxycodone pills.

A coordinated law enforcement operation was conducted on September 2, 2021, leading to the arrests of Martinez-Gil and other co-defendants. Federal search warrants were executed on five locations and two vehicles. Over the course of the investigation, law enforcement seized approximately seventeen pounds of methamphetamine and seven-hundred counterfeit oxycodone pills.

Martinez-Gil made his initial appearance in federal court today in Portland before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and ordered detained pending an eight-day jury trial scheduled to begin on December 14, 2021.

All of Martinez-Gil’s co-defendants have made their first appearances in federal court, including Ramos-Cornejo who was arraigned today in Portland.

If convicted, Martinez-Gil faces a maximum sentence of life in federal prison, 5 years’ supervised release, and a fine of $10 million.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by the U.S. Drug Enforcement Administration (DEA) with assistance from the Basin Interagency Narcotics Enforcement Team (BINET), which is made up of members from the Oregon State Police, Klamath Falls Police Department, and the U.S. National Guard. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon. 

The DEA also received assistance from Homeland Security Investigations, the Washoe County Sheriff’s Office, the California Highway Patrol, the Central Point Police Department, the Torrance Police Department, and the Lake County Sheriff’s Office.

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

PORTLAND, Ore.—An American expatriate residing in the Principality of Monaco pleaded guilty today in federal court to filing a false tax return.

Kory Merrill Tarpenning, 59, pleaded guilty to making and subscribing a false federal income tax return.

According to court documents, Tarpenning is a marketing consultant and owner of numerous foreign businesses organized in France and Monaco. His primary line of business is a brand consultant to U.S. companies interested in expanding their business operations to Monaco. Tarpenning also owns several Monegasque consulting companies, including Sirius Group SAM and Sirius Sports Marketing.

In 2014, Tarpenning arranged a sponsorship agreement between Association Sportive de Monaco Football Club SA (AS Monaco), a Monegasque professional soccer club, and Nike European Operations. The agreement was valued at as much as €20 million over its five-year term. Subsequently, AS Monaco executed a contract with Sirius Group to pay Tarpenning a 9% commission on cash payments from Nike and a 6% commission on athleticwear ordered by the team. Between 2014 and 2018, AS Monaco paid Tarpenning at least €2.1 million.

Tarpenning transferred the income from deals with AS Monaco and other companies to joint personal bank accounts in Monaco and the U.S. He used the proceeds to purchase a second home in Eugene, Oregon and to pay for his children’s Monegasque private school. In tax years 2014 through 2018, Tarpenning failed to report more than $1.4 million in wages and business income.

During this same time, Tarpenning also failed to report substantial dividend income from other unrelated business ventures, including companies he owned that operated the Nike Store and Starbucks Coffee in Monaco and a brand consulting firm based in Portland. In tax years 2014 through 2018, Tarpenning failed to report more than $1 million in dividend income.

Altogether, from 2014 to 2018, Tarpenning’s underreporting of income caused a tax loss to the IRS of more than $670,000.

On August 25, 2021, Tarpenning was charged by criminal information with making and subscribing a false federal income tax return.

Tarpenning faces a maximum sentence of three years in prison; a $250,000 fine or twice the gross gains or losses resulting from his offense, whichever is greater; and one year of supervised release. He will be sentenced on January 6, 2022 before U.S. District Court Judge Michael W. Mosman.

As part of the plea agreement, Tarpenning has agreed to pay $670,851 in restitution to the IRS.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Meredith D.M. Bateman is prosecuting the case.

PORTLAND, Ore.—A Vacaville, California man pleaded guilty today for his role in a conspiracy to traffic large quantities of methamphetamine from California for distribution in Northeast Oregon and Southeast Washington.

Noel Lomas Murillo, 33, pleaded guilty to conspiring to possess with intent to distribute and distribute methamphetamine.

According to court documents, in November 2017, the Blue Mountain Enforcement Narcotics Team (BENT), Oregon State Police (OSP), and the FBI began investigating a drug trafficking organization led by Murillo’s brother, Abel Lomas Murillo, 28, of Weston, Oregon.

The investigation revealed that as early as July 2017, Noel Murillo transported drugs from Vacaville to Klamath Falls, Oregon where a courier would deliver them to his brother. Abel Murillo also made multiple trips to Medford, Oregon to pick up drugs and transport them to Morrow and Umatilla Counties for distribution.

In January 2018, an OSP trooper stopped one of the Murillo brothers’ couriers, Luis Alberto Navarro, 33, of Boardman, Oregon, in a vehicle traveling near Klamath Falls en route to Umatilla County. A search of the vehicle revealed 11 concealed packages containing more than eight kilograms of methamphetamine.

In early May 2018, as the investigation continued, Abel Murillo enlisted another courier, Noel Ponce Villegas, 28, also of Boardman, to drive methamphetamine from Medford to Boardman. Investigators surveilled Abel Murillo as he traveled from Umatilla County to a storage locker in Medford and loaded a trailer pulled by his truck. Abel Murillo paid Villegas to drive his truck and trailer while he followed him to minimize his own risk. In the early morning hours of May 6, 2018, investigators from BENT, OSP and FBI stopped Abel Murillo and Villegas as they drove near mile marker 102 on Interstate 84.

Investigators seized 42 packages of methamphetamine, 36 of which were concealed in the false bottom of a propane tank. The packages contained approximately 17.6 kilograms of methamphetamine. Later the same day, investigators executed a search warrant at Abel Murillo’s residence, seizing 29 firearms and body armor. Pursuant to a separate search warrant, another 10 pounds of methamphetamine and five firearms were found in a Medford storage locker Abel Murillo had visited earlier in the weekend.

On December 19, 2019, a federal grand jury in Portland returned a two-count superseding indictment charging Noel Murillo with conspiring to possess with intent to distribute and distribute methamphetamine and possessing with intent to distribute methamphetamine.

Noel Murillo will be sentenced on January 5, 2022 before U.S. District Court Judge Michael H. Simon.

On May 7, 2018, Navarro pleaded guilty to possessing with intent to distribute methamphetamine. He will be sentenced on February 1, 2022.

On April 15, 2019, Abel Murillo pleaded guilty to conspiring to possess with intent to distribute methamphetamine. On September 10, 2019, he was sentenced to 235 months in federal prison and five years’ supervised release.

On April 18, 2019, Villegas pleaded guilty to possessing with intent to distribute methamphetamine. On December 16, 2020, he was sentenced to time served and three years’ supervised release.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

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

PORTLAND, Ore.—A Hillsboro, Oregon man was sentenced to federal prison today for stealing hundreds of pieces of residential mail throughout the Portland Metropolitan Area and using the personal identity of one local resident to purchase a luxury car.

Dwayne Leroy Daan, 42, was sentenced to 90 months in federal prison and three years’ supervised release.

According to court documents, between February and May 2020, Daan stole more than 800 pieces of mail from residences in Portland, Beaverton, West Linn, Milwaukee, and Hillsboro, Oregon. Some of the mail was stolen using a counterfeit U.S. Postal Service arrow key. On April 20, 2020, Daan used the stolen identity of a local resident to obtain a line of credit and purchase a 2018 Audi for $51,031 from a car dealership in Milwaukee.

On July 16, 2020, a federal grand jury in Portland returned a four-count indictment charging Daan with possessing stolen mail and a counterfeit U.S. Postal Service arrow key. Later, on June 29, 2021, a superseding criminal information added felony charges for bank fraud and aggravated identity theft.

On July 1, 2021, Daan pleaded guilty to possessing stolen mail and a counterfeit U.S. Postal Service arrow key, bank fraud, and aggravated identity theft.

A restitution hearing has been scheduled for December 20, 2021.

As part of a global resolution, Daan's federal prison sentence will run concurrently with a sentence previously imposed in Washington County Circuit Court and a sentence to be imposed in Multnomah County Circuit Court for similar conduct. The Clackamas County District Attorney’s Office will dismiss charges pending against Daan as part of this resolution. Daan will serve his entire sentence in federal prison.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by the U.S. Postal Inspection Service with assistance from Homeland Security Investigations, the Portland Police Bureau, West Linn Police Department, and Hillsboro Police Department. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon with assistance from the Multnomah, Clackamas, and Washington County District Attorney’s Offices.