District of Oregon

PORTLAND, Ore.—A Willamette Valley wholesale grass seed distributor pleaded guilty today in federal court for knowingly concealing a scheme to defraud the Jacklin Seed Company, then a subsidiary of the J.R. Simplot Company.

ProSeeds Marketing, Inc., a company based in Jefferson, Oregon, pleaded guilty to one count of misprision of felony.

According to court documents, ProSeeds had a longstanding commercial relationship with the Jacklin Seed Company and routinely contracted with Jacklin for the purchase and sale of grass seed. These contracts were typically negotiated with a Jacklin employee acting under the supervision of Christopher Claypool, Jacklin’s general manager. In March 2021, Claypool, 53, of Spokane, Washington, was convicted of wire fraud and money laundering for perpetrating multiple schemes to defraud Jacklin. Claypool was later sentenced to three years in federal prison.

Beginning in December 2018, Claypool and the Jacklin employee conspired to divert a portion of the overseas sales Claypool negotiated on behalf of Jacklin so that Claypool and the employee could collect commissions on those sales. As part of this scheme, Claypool incorporated Green Pyramid, LLC to pose as an independent grass seed broker and accept payment of the fraudulent commissions.

In furtherance of the scheme, the Jacklin employee whom Claypool supervised arranged for ProSeeds to book sales diverted from Jacklin with mark-ups dictated by Claypool. The bulk of these mark-ups were then kicked back to Claypool. ProSeeds participated in the scheme with the aim of creating an overseas customer base. Nevertheless, the company intended to and did conceal Claypool’s scheme.

From December 2018 to August 2019, ProSeeds booked twelve diverted and bogus sales, generating more than $474,000 in mark-ups on Jacklin seed. Although the bulk of the mark-ups went to Claypool and his subordinate, ProSeeds retained more than $78,000 in revenue from the transactions.

On September 14, 2021, ProSeeds was charged by criminal information with misprision of felony. The company faces a maximum sentence of five years’ probation and a $500,000 fine. ProSeeds will be sentenced on November 29, 2021, before U.S. District Court Judge Karin J. Immergut.

As part of the plea agreement, ProSeeds has agreed to pay $78,775 in restitution to Simplot.

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 U.S. Department of Agriculture Office of Inspector General. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.

EUGENE, Ore.—A federal government employee who accessed and possessed child pornography while working aboard a National Oceanic and Atmospheric Administration (NOAA) scientific research vessel was sentenced to federal prison today.

Johnny Dale Hale, 44, was sentenced to 24 months in prison and five years’ supervised release.  He was also ordered to pay $4,000 in restitution to his victims.

According to court documents, in late 2016, Hale, a decorated veteran, was working as a crew member aboard the Bell M. Shimada, a NOAA scientific research vessel.  On or about November 15, 2016, the vessel was experiencing technical connectivity issues and the information technology team began running diagnostics. While troubleshooting, an electronics technician discovered two new folders on the ship’s server containing what he believed to be child pornography.

Diagnostics showed that Hale’s unique employee access card was associated with the time and date the folders were initially accessed. Additionally, Hale used two different vessel workstations to access the server at the exact time the folders were created. The vessel’s senior security engineer alerted the U.S. Department of Commerce to the discovery.

Special agents and a forensic analyst reviewed the suspect folders and discovered 109 pornographic web links and confirmed the presence of child pornography. Approximately 33 images of child pornography were in one of the suspect folders, with images from at least four series of photographs of previously-identified child pornography victims.

On June 21, 2017, a federal grand jury in Eugene returned an indictment charging Hale with possession of child pornography. On April 23, 2021, he pleaded guilty to that charge.

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

This case was investigated by the U.S. Department of Commerce Office of Inspector General, NOAA Office of Law Enforcement, and the FBI. Assistant U.S. Attorney William M. McLaren 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. It is important to remember 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 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.

WASHINGTON—The Department of Justice has selected an additional 12 federally recognized tribes to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides tribal governments with means to access, enter, and exchange data with national crime information systems, including those maintained by the FBI Criminal Justice Information Services (CJIS) Division and the states.

“Timely access to federal criminal information can help protect domestic violence victims, place foster children in safe conditions, solve crimes, and apprehend fugitives on tribal land, among other important uses,” said Deputy Attorney General Lisa O. Monaco. “Increasing tribal access to criminal databases is a priority of the Justice Department and this Administration, and essential to many tribal government efforts to strengthen public safety in their communities.” 

“Tribal law enforcement agencies have long sought access to federal criminal databases to obtain important information that can be used to prevent violent crime in tribal communities. We are pleased that the Confederated Tribes of the Warm Springs Reservation and Cow Creek Band of Umpqua have been selected for participation in the TAP program and look forward to more Oregon tribes being added in the future. The Justice Department and U.S. Attorney’s Office for the District of Oregon are deeply committed to keeping Oregon tribal communities safe,” said Acting U.S. Attorney Scott Erik Asphaug.

The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI Criminal Justice Information Services (CJIS) systems. With these additional tribes, there are now 108 federally recognized Tribes participating in TAP. 

TAP has been an important resource for the department’s Missing and Murdered Indigenous Persons Initiative and the Presidential Task Force on Missing and Murdered American Indians and Alaska Natives known as Operation Lady Justice. The Department of Justice began TAP in 2015 in response to concerns raised by tribal leaders about the need to have direct access to federal systems.

Using TAP, tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children. 

The following tribes have been newly selected for participation in TAP:

1. Confederated Tribes of the Warm Springs Reservation
2. Cow Creek Band of Umpqua
3. Fort Belknap Indian Community
4. Grand Traverse Band of Ottawa and Chippewa
5. Havasupai Tribe
6. Lower Brule Sioux Tribe
7. Menominee Tribe
8. Mille Lacs Band of Ojibwe
9. Muckleshoot Tribe
10. Passamaquoddy Tribe
11. Shingle Springs Band of Miwok
12. United Keetoowah Band of Cherokee

TAP is managed by the Justice Department’s Office of the Chief Information Officer and the Office of Tribal Justice. It is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), the Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW).

For more information on TAP, visit http://www.justice.gov/tribal/tribal-access-program-tap.

PORTLAND, Ore.—A Baker City, Oregon man was sentenced to federal prison today for fraudulently converting to his own personal use federal money intended to help small businesses during the COVID-19 pandemic.

The parties stipulated to a two-year prison sentence for Jeremy Clawson, 32. At their joint recommendation, however, U.S. District Court Chief Judge Marco A. Hernandez reduced the sentence to ten months to account for the time Clawson had already served in Oregon state custody. Chief Judge Hernandez also ordered Clawson to serve a term of three years’ supervised release following his federal prison term.

“Recent federal relief programs, like those authorized by the CARES Act, were designed to help Americans and American small businesses navigate the economic fallout of the COVID-19 pandemic. Mr. Clawson saw the swift rollout of these programs as an opportunity to enrich himself at the expense of Americans in need. I want to thank the U.S. Secret Service and U.S. Small Business Administration Office of Inspector General for their steadfast partnership and commitment to bringing Mr. Clawson to justice,” said Acting U.S. Attorney Scott Erik Asphaug.

“This case shows the American people that their law enforcement and Attorney’s Office are taking CARES act fraud seriously,” said Justin Bourne, Resident Agent in Charge of the Secret Service Portland Resident Office. “This investigation is a prime example of the Secret Service’s investigative mission; to protect the United States financial infrastructure. This case illustrates the strong partnership between the Secret Service, U.S. Small Business Administration Office of Inspector General, the Baker City Police Department and the U.S. Attorney’s Office.”

“Lying to gain access to economic stimulus funds for personal gain will be met with justice,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”

According to court documents, Clawson stole economic relief funds distributed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDLs) program, as authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act, signed into law on March 27, 2020, was designed to provide emergency financial assistance to millions of Americans and small businesses suffering the economic effects of the COVID-19 pandemic.

On August 11, 2020, the proceeds of an SBA EIDL totaling $145,200 were deposited into an Umpqua Bank account owned by Clawson and his girlfriend. Shortly after receiving the deposit, Clawson began making multiple large cash withdrawals at the drive-through window of an Umpqua Bank in Baker City. On August 17, 2020, Clawson withdrew $49,905 in the form of a cashier’s check to purchase a 2016 Dodge Challenger. 

SBA loan documents showed that the EIDL had been extended to the Halperin Manufacturing Company of San Diego, California. Though there is no record of any such company, the loan application listed an actual San Diego resident as the company’s owner and claimed it employed 350 people. Investigators contacted the purported owner, but that person denied owning or being affiliated with any such company and confirmed that the company’s supposed address in San Diego was the individual’s personal residence.

In early September 2020, investigators learned that Clawson had been arrested in late August by the Baker City Police Department for driving under the influence, reckless driving, driving with a suspended license, and attempting to elude the police. Clawson was driving the 2016 Dodge Challenger at the time of his arrest. Clawson later told authorities that he had received a large inheritance from his father, including $30,000 in cash he had on his person during a subsequent arrest.

On September 11, 2020, federal investigators interviewed Clawson at the Baker County Jail, where he was detained on the state charges. Clawson claimed to have received the $145,200 from a woman with whom he had an online dating relationship. He further claimed that he didn’t know what to do with the money and, after he stopped communicating with the woman, began spending the money himself. Clawson admitted to using the SBA money to purchase the Dodge Challenger and several other vehicles.

On December 21, 2020, Clawson was charged by criminal complaint with theft of government property. Later, on February 2, 2021, a federal grand jury in Portland returned a single-count indictment charging Clawson with theft of public money. On June 8, 2021, he pleaded guilty.

During sentencing, Chief Judge Hernandez ordered Clawson to pay $125,200 in restitution to the SBA.

Clawson has been in custody since his arrest in August 2020.

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

This case was investigated by the U.S. Secret Service in cooperation with the SBA Office of Inspector General and Baker City Police Department. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.

Anyone with information about 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.—A Portland man pleaded guilty today for perpetrating a bank fraud scheme whereby he used a residential property he did not own as collateral for obtaining a bank loan worth more than $316,000.

Alireza Zamanizadeh, aka Ali Zamani, 63, waived indictment and pleaded guilty to bank fraud.

According to court documents, on or about February 17, 2017, Zamanizadeh filed a quitclaim deed in Deschutes County, transferring a residential property in Bend, Oregon to his business for one dollar without the property owner’s consent. A quitclaim deed is a document used to quickly transfer the ownership of real property from one party to another. 

Zamanizadeh then used the property as collateral for obtaining a loan worth $316,092. Zamanizadeh forged the property owner’s signature on a statement verifying the property transfer as required by the mortgage lender and title company processing the loan.  Based on Zamanizadeh’s false representations, the mortgage company approved the loan and transferred the funds to Zamanizadeh’s bank account.

On June 14, 2021, Zamanizadeh was charged by criminal information with bank fraud and aggravated identity theft.

Bank fraud is punishable by up to 30 years in prison, a $1 million fine, and three years’ supervised release.

Zamanizadeh will be sentenced on January 4, 2022 before U.S. District Court Judge Anna J. Brown.

As part of the plea agreement, Zamanizadeh has agreed to pay $400,000 in restitution to his victim and has transferred a second residential property in Clark County, Washington back to the victim.

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 FBI and is being prosecuted by Katherine A. Rykken, Assistant U.S. Attorney for the District of Oregon.

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

David Acosta-Rosales, 51, pleaded guilty to conspiracy to make false statements in connection with the acquisition of firearms.

According to court documents, since at least September 2019, Acosta-Rosales served as the leader of a high-volume gun trafficking cell operating in the Portland area. In this role, Acosta-Rosales received orders and requests for high-powered semi-automatic rifles, high-grade firearms, and explosive devices from co-conspirators in Mexico affiliated with CJNG. Acosta-Rosales received hundreds of thousands of dollars to operate the scheme, recruited numerous straw purchasers to make illegal gun purchases, obliterated serial numbers on the guns, and organized the transfer and transportation of the guns from Oregon to Mexico. In total, the conspiracy involved the transfer of more than 100 guns to Mexico.

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 United States.

Acosta-Rosales faces a maximum sentence of 10 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced on December 6, 2021 before U.S. District Court Judge Karin J. Immergut.

As part of his plea agreement, Acosta-Rosales has agreed to forfeit any criminally-derived assets  involved in the commission of his crimes identified by the government prior to sentencing.

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

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. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.

EUGENE, Ore.— A Colorado man was sentenced to federal prison today for stabbing a Black man from Ontario, Oregon, while the man was sitting in a fast-food restaurant.

Nolan Levi Strauss, 27, was sentenced to 16 years in federal prison and five years’ supervised release.

“This defendant is being held accountable for his brutal and racially-motivated attack against a Black man carried out because of the color of his skin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Racially motivated attacks have no place in our society, and the Civil Rights Division will continue to vigorously enforce federal laws that prohibit bias motivated violence.”   

“We hope the lengthy sentence imposed today will bring some measure of peace and closure for the man viciously attacked by Nolan Strauss,” said Acting U.S. Attorney Scott Erik Asphaug for the District of Oregon. “The sentence should also send a clear message to anyone contemplating similar acts of violence: hatred and bigotry will not be tolerated.”

“All Oregonians should be able to live and work without fear that their skin color will mark them for violence,” said Special Agent in Charge Kieran L. Ramsey of the FBI Oregon Field Office. “Beyond the physical and emotional damage done to a victim, such violence can infect an entire community with divisiveness and despair. This is not the kind of place that any of us want to raise our families, and we stand with the entire community in saying this is not acceptable and we will not allow it.”

According to court documents and statements made at the sentencing hearing, on the morning of Dec. 21, 2019, Strauss was at a Pilot Travel Center in Ontario, Oregon, when he saw a Black man walk into the adjoining Arby’s Restaurant. Strauss did not know the man and had never seen him before, but he decided he wanted to kill the man, because he was Black. The man was at the Arby’s to provide documentation for a pending job application. He sat in a booth by himself and waited to meet with the restaurant manager, when Strauss entered the building and approached the man from behind.

Suddenly, unprovoked and without warning, Strauss stabbed the man twice in the neck, cutting his jugular vein and causing blood to rush out of the man’s neck. The man struggled to wrest the knife from Strauss, certain that he would die if he was stabbed again. A maintenance worker approached Strauss and directed him to drop the knife several times. Finally, the stabbing victim broke free from Strauss’s grip and ran to the other side of the restaurant where he collapsed on the floor, his clothes soaked with blood. While employees tried to provide first aid to the victim and his life-threatening injuries, the maintenance worker used a belt to secure Strauss’s hands behind his back and waited for police to arrive.

While they waited, the worker asked Strauss why he stabbed the man. Strauss replied, “Because he was Black, and I don’t like Black people.” Strauss was arrested at the scene. In two interviews with the police later that day, Strauss explained his beliefs about Black people, describing them as manipulative, lacking morality, and “not good people.” As Strauss told police, the color of the victim’s skin was Strauss’s “only problem with him.” 

As a result of Strauss’s attack, the stabbing victim suffered two large lacerations to his neck. He was evaluated in Ontario and subsequently life-flighted to a hospital in Boise, Idaho, for emergency surgery.

On Sept. 17, 2020, a federal grand jury in Eugene returned a one-count indictment charging Strauss with a hate crime involving an attempt to kill. On June 17, 2021, he pleaded guilty to the charge.

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

PORTLAND, Ore.—A Texas man pleaded guilty today for assaulting a Deputy U.S. Marshal with a construction hammer during a July 2020 protest in Downtown Portland.

Jacob Michael Gaines, 24, pleaded guilty to assaulting a federal officer with a deadly or dangerous weapon.

“We are very fortunate Mr. Gaines did not severely injure or kill the Deputy U.S. Marshal who confronted him outside the federal courthouse last summer. Assaulting a federal officer with a deadly weapon is a very serious crime and will be handled by our office accordingly,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.

“Anyone who assaults or tries to hurt a U.S. Marshals Service employee should expect to be charged. Mr. Gaines could have killed the deputy he struck with a construction hammer, and we’re grateful to the US Attorney’s Office for seeing this case through to its conclusion,” said Peter Cajigal, Acting U.S. Marshal for the District of Oregon.

“We’re pleased to see resolution following the violent acts committed at the Hatfield Courthouse last summer and hope this verdict can help set the stage for peaceful protest conduct in the future,” said Gabriel Russell, Assistant Director for Field Operations, Eastern Zone, Federal Protective Service.

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.

Gaines faces a maximum sentence of 20 years in prison, a $250,000 fine and three years’ supervised release. He will be sentenced on December 13, 2021 before U.S. District Court Judge Karin J. Immergut.

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

EUGENE, Ore.— A Chinese national residing in Los Angeles was sentenced in federal court today for his role in a scheme to purchase hundreds of endangered and vulnerable turtles in the U.S. and smuggle them via U.S. mail and commercial airline flights to China.

Yuan Xie, 30, was sentenced to 5 years’ federal probation, 500 hours of community service, and a $15,000 fine payable to the Lacey Act Reward Fund.

According to court documents, beginning in at least May 2017 and continuing until October 2018, Xie conspired with another Chinese national, Xiao Dong Qin, 35, of Shanghai, China, to purchase more than 769 live turtles from reptile dealers in Alabama, California, Florida, Kentucky, Michigan, New Jersey, Nevada, North Carolina, and South Carolina. All of the turtles purchased and smuggled by Xie are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora.

A two-year investigation by the U.S. Fish and Wildlife Service (USFWS) revealed that in an 18-month period, Xie facilitated the purchase and transportation of approximately 134 Florida box turtles, 178 eastern box turtles, 127 North American wood turtles, 220 spotted turtles, 77 diamondback terrapins, 25 three-toed box turtles, seven yellow-blotched map turtles, and one Blanding’s turtle from his former residence in Eugene, Oregon. USFWS investigators determined the cost of the turtles involved in this investigation exceeded $150,000 and estimated the market value was more than double that amount in the Chinese pet trade.

In November 2018, Xie was arrested by USFWS agents at his residence in Los Angeles.

On November 16, 2018, Xie was charged by criminal complaint with one count of conspiracy to smuggle goods from the U.S. in violation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). On May 6, 2021, he waived indictment and pleaded guilty to the single charge.

As part of the plea agreement, Xie has agreed to pay $2,233 in restitution to a rehabilitation facility near Chicago and The Turtle Conservancy near Los Angeles for costs associated with the care of turtles intercepted by law enforcement.

Qin was sentenced on February 27, 2020 to two years’ probation and paid nearly $8,000 in restitution.

This case was investigated by USFWS with assistance from the U.S. Postal Inspection Service. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—A Portland man was sentenced to federal prison today for committing arson at the Multnomah County Justice Center during a protest in May 2020. 

Edward Thomas Schinzing, 33, was sentenced to 15 months in federal prison and three years’ supervised release.

“Edward Schinzing’s destructive action put Multnomah County employees and inmates in danger. The perceived anonymity of a crowd will not protect rioters who commit violent crimes under the guise of peaceful protest. Federal law enforcement will continue to vigorously investigate and prosecute crimes committed during local riots,” said Acting U.S. Attorney Scott Erik Asphaug.

“Actions such as those Mr. Schinzing took go far beyond one’s right to protest and endangered the lives of those working at and housed in the Justice Center. This sentence is well deserved.  ATF has investigated, and will continue to vigorously investigate, violent criminal acts such as these,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson.

“The night of the arson, there were hundreds of people in the Justice Center, including almost 300 inmates. Edward Schinzing deserves to be held accountable for his choices that night—choices grounded in a complete disregard for the lives of others,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.

According to court documents, on May 29, 2020, Schinzing marched with a group of protesters to the Multnomah County Justice Center. When the group arrived, several people broke windows and entered the building. Three civilian Multnomah County employees were working inside the Corrections Records Officer when the windows were broken and quickly fled for safety.

Schinzing was among those who entered the building. Some in the group spray-painted portions of the office; damaged computers and other office equipment, furniture, and interior windows; and started fires. Schinzing, who was identified on surveillance cameras by a distinctive tattoo of his last name across his upper back, spread a fire started near the front of the office by igniting papers and moving them into the drawer of another cubicle. 

A few minutes later, the building’s sprinkler system activated, extinguishing the fire, and law enforcement officers secured the building. At the time of the fire, the Multnomah County Detention Center, located in the Justice Center complex, housed approximately 289 inmates.

On August 5, 2020, a federal grand jury in Portland returned an indictment charging Schinzing with arson. On September 30, 2020, he pleaded guilty to the single charge.

As part of his plea agreement, Schinzing has agreed to pay restitution to Multnomah County as determined by the government and ordered by the court. A final order of restitution will be issued by the court within 90 days.

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

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

PORTLAND, Ore.—A Clackamas, Oregon man was sentenced to federal prison today for distributing oxycodone pills acquired from dozens of fraudulent prescriptions, one of which led to the overdose death of Starlin Swan, a 26-year-old woman.

Mark Steven Gardner, 33, was sentenced by the Honorable Michael W. Mosman to 50 months in federal prison followed by 3 years of supervised release.

“The opioid epidemic has cost more than 500,000 American lives. The death toll in this country is staggering and the tragic loss that surviving family members must endure is devastating.  This prosecution represents our office’s firm commitment to hold those accountable who unlawfully distribute controlled substances that results in death.”  said Acting United States Attorney, Scott Erik Asphaug.

In November 2015, Gardner, a chiropractor, stole a prescription pad from a physician with whom he shared his Portland office building. Over the next four months, Gardner used the doctor’s name to forge fraudulent oxycodone prescriptions. Gardner instructed others to fill the prescriptions at times when he knew the doctor’s office, to which he had access, was closed. Gardner would then enter the doctor’s office, answer the doctor’s office phone, and pose as the doctor to verify the authenticity of the prescriptions when contacted by pharmacies. The individuals filling the prescriptions would typically give Gardner half of the pills received.

On January 8, 2016, Gardner called 911 to report finding a female friend unresponsive. Paramedics arrived on scene and found Ms. Swan deceased.  A subsequent autopsy and toxicology examination revealed that Ms. Swan had died of an oxycodone overdose.

On the afternoon before Ms. Swan’s death, Gardner forged a prescription for Ms. Swan for 90 30mg pills of oxycodone. The prescription was filled the same day, although the pharmacy only filled it for 60 oxycodone pills. 

In total, Gardner forged 48 prescriptions for 25 different recipients, including some scripts that were written after the overdose death of Ms. Swan.  A total of 2,352 30mg oxycodone pills were fraudulently dispersed because of Gardner’s scheme. Following the discovery of the script forgeries, Gardner was stripped of his chiropractic license.

On May 15, 2019, a federal grand jury in Portland returned a three-count indictment charging Gardner with distribution of oxycodone resulting in death; distribution of oxycodone; and acquiring or obtaining a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge. On April 19, 2021, he pleaded guilty to unlawful distribution of oxycodone.

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 with assistance from the Clackamas County Sheriff’s Office, and Homeland Security Investigations. It was prosecuted by Peter D. Sax, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—A West Linn, Oregon man pleaded guilty 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, pleaded guilty to one count each of wire fraud and money laundering.

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.

Shelofsky faces a maximum sentence of 30 years in prison; a $500,000 fine or twice the gross pecuniary gains or losses resulting from his offense, whichever is greater; and three years of supervised release. He will be sentenced on November 12, 2021 before U.S. District Court Judge Michael H. Simon.

As part of the plea agreement, Shelofsky has agreed to pay no less than $3.3 million in restitution to his victims and forfeit any criminally derived proceeds identified by the government prior to sentencing. Under the terms of the plea agreement, the government can and will argue for a restitution order greater than $3.3 million, but not to exceed $16 million.

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. Assistant U.S. Attorney Claire M. Fay is prosecuting the case.

PORTLAND, Ore.—A Bend, Oregon resident and his residential care company have agreed to pay $2.9 million to settle allegations by United States and the State of Oregon that the company submitted false reimbursement claims to the Oregon Medicaid program.

Kevin Cox, 51, and At Home Care LLC, doing business as At Home Care Group (AHCG), will pay $1.86 million to the United States and $1.04 million to the State of Oregon.

AHCG also waived indictment and pleaded guilty today in Deschutes County Circuit Court to two counts of making a false claim for health care payment.

“Individuals and companies who submit false claims to federally-backed state health care programs increase health care costs for everyone,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “We take health care fraud very seriously and will continue to hold accountable those who undermine the integrity of these important programs.”

“This national pandemic has put an unprecedented strain on our health care system. There is never a time for Medicaid providers to enrich themselves with fraudulent schemes—but now is certainly not the time. This case shows you that we will work aggressively with our federal law enforcement partners to investigate and prosecute providers that victimize our most vulnerable Oreognians and the programs that serve them,” said Attorney General Ellen F. Rosenblum.

“Health care providers should regard Medicaid as a lifeline for vulnerable beneficiaries in need of wellness services, not as a financial reserve for personal enrichment,” stated Steven Ryan, Special Agent in Charge with the U.S. Department of Health and Human Services. “To assist in preserving Federal health care programs, our agency and law enforcement partners investigate and cease wrongful activity that compromises their funds.”

AHCG provided in-home medical and non-medical care to individuals in Oregon. The United States and State of Oregon contend that, between March 2013 and September 2018, AHCG altered caregiver scheduling calendars and billed the Oregon Medicaid program for hours of in-home care not actually performed.

As part of the settlement, AHCG and Cox will be excluded from participating in Medicare, Medicaid, and all other federal health care programs for 15 and 8 years, respectively.

Acting U.S. Attorney Asphaug and Attorney General Rosenblum made the announcement.

This settlement was the result of a coordinated investigation by the U.S. Attorney’s Office for the District of Oregon, U.S. Department of Health and Human Services Office of Inspector General, Oregon Department of Justice Medicaid Fraud Unit, and Oregon Health Authority. The United States was represented in this matter by Alexis Lien, Assistant U.S. Attorney for the District of Oregon. Senior Assistant Attorney General Elizabeth Ballard Colgrove led this case for the Oregon Department of Justice.

The claims resolved by this settlement, except for those admitted in AHCG’s guilty plea, are allegations only, and there has been no determination or admission of liability.

MEDFORD, Ore.—A former Klamath Falls police officer pleaded guilty today in federal court after stealing methamphetamine and fentanyl from an evidence room.

Thomas Dwayne Reif, 28, pleaded guilty to possession of a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge.

According to court documents, on or about November 27, 2020, Reif is alleged to have entered the Klamath Falls Police Department’s temporary evidence room using an unauthorized key and removed an evidence item containing methamphetamine and fentanyl. Reif briefly left the evidence room before returning the evidence item to the evidence locker and leaving the facility.

Shortly thereafter, Reif overdosed while operating his police car. The car jumped a median, travelled into oncoming traffic, and caused a multiple-vehicle accident. Reif was rushed to the hospital and successfully revived by medical personnel. Toxicology reports showed that Reif was under the influence of substances including methamphetamine and fentanyl.

Investigators searched the personal locker assigned to Reif at the Klamath Falls Police Department. Inside the locker, investigators found that Reif had concealed an evidence bag containing methamphetamine.

On May 20, 2021, a federal grand jury in Medford returned a two-count indictment charging Reif with possession of a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge.

Reif faces a maximum sentence of four years in prison, a $250,000 fine and one year of supervised release. He will be sentenced on November 23, 2021 before U.S. District Court Judge Michael J. McShane.

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 Oregon State Police. It is being prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon. Klamath Falls Police Department cooperated and provided assistance throughout the investigation.

PORTLAND, Ore.— A Portland woman pleaded guilty today for her role in a fraud scheme whereby she and a co-conspirator would steal mail from residential mailboxes and use stolen personal identification information to defraud local banks.

Latanya Jenkins, 50, pleaded guilty to conspiring to commit bank fraud, mail theft, and aggravated identity theft.

According to court documents, beginning on an unknown date and continuing until at least July 7, 2020, Jenkins and an accomplice, Demontae Sanders, 48, also of Portland, conspired with one another to steal mail from residential mailboxes throughout the Portland Metropolitan Area. Jenkins and Sanders 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. The pair used the accounts to defraud these financial institutions.

To further their scheme, Jenkins and Sanders communicated with one another by text and used the internet at Jenkins’ residence to open several bank accounts using stolen information. Together, they collected hundreds of stolen financial documents including bank statements, checks, tax returns, U.S. Passports, and other government-issued identification documents. They 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 Jenkins and Sanders with conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and mail theft.

Jenkins faces a maximum sentence of 37 years in prison; a $1.5 million fine or twice her criminally derived gains, whichever is larger; and five years of supervised release. Aggravated identity theft carries a mandatory two-year prison sentence. She will be sentenced on December 14, 2021 before U.S. District Court Judge Anna J. Brown. 

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

Sanders pleaded guilty to the same charges on May 4, 2021. He will be sentenced on November 11, 2021.

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

Homeland Security Investigations and the U.S. Postal Inspection Service jointly investigated this case. Assistant U.S. Attorney Seth D. Uram is prosecuting the case.

PORTLAND, Ore.—A Nevada resident and former manager of the Warm Springs Construction Enterprise (WSCE) pleaded guilty today in federal court for his role in a fraud scheme targeting the Confederated Tribes of Warm Springs.

Thomas Valentino Adams pleaded guilty to theft of funds from a Tribal organization.

According to court documents, the Warm Springs Economic Development Corporation (WSEDC), also known as Warm Springs Ventures (WSV), is a Tribal organization owned and operated by the Warm Springs Tribes. WSV operates as the management organization for several Tribal business entities, including WSCE.

Adams and an accomplice; Roderick Ariwite, the former CEO of WSEDC, Adams’ manager at WSCE, and resident of the Fort Hall Reservation in Idaho; created a construction company called Warbonnet Construction Services LLC. While drawing tribal salaries and travel reimbursements, Adams and Ariwite engaged in work projects for Warbonnet. In 2018, Adams and Ariwite used tribal funds to hire a subcontractor for a Warbonnet project and submitted vouchers for expenses they incurred they took on behalf of themselves and Warbonnet, which were reimbursed with tribal funds. In total, Adams and Ariwite’s scheme cost the Warm Springs Tribes more than $50,000.

On September 24, 2020, a federal grand jury in Portland returned a six-count indictment charging Adams and Ariwite with conspiracy and theft of funds from a Tribal organization.

Adams faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on November 15, 2021 before U.S. District Court Judge Michael W. Mosman.

Adams has agreed to pay $4,859 in restitution to the Warm Springs Tribes.

Ariwite is on pre-trial release pending a three-day jury trial scheduled to begin on September 14, 2021.

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 Warm Springs Police Department. It was prosecuted by Meredith Bateman and Seth Uram, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore.—A Southern California man pleaded guilty today for attempting to set fire to the Mark O. Hatfield U.S. Courthouse during a protest in Downtown Portland on July 13, 2020.

Kevin Benjamin Weier, 35, of Vista, California, waived indictment and pleaded guilty to one count of depredation of government property.

According to court documents, on July 13, 2020, Weier was present at a protest outside the Hatfield Federal Courthouse in Portland. During the protest, Weier placed a burning piece of wood against the building.

On August 10, 2021, Weier was charged by criminal information with one count of depredation of government property.

Depredation of government property is punishable by up to 10 years in prison, a $250,000 fine, and three years’ supervised release. Weier will be sentenced on November 15, 2021 before U.S. District Court Judge Karin J. Immergut.

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 prosecuted by the U.S. Attorney’s Office for the District of Oregon.

PORTLAND, Ore.—A Gresham, Oregon man pleaded guilty today for stealing financial and identification documents from more than 100 people in and around Portland.

Robert Loren Finanders, 40, pleaded guilty to unauthorized access device fraud, aggravated identity theft, illegally possessing a firearm as a convicted felon, and possessing with intent to distribute methamphetamine.

According to court documents, between April 2019 and April 2020, Finanders is alleged to have stolen financial and identification documents from dozens of people in the Portland area with the intent to steal money from them and from local businesses. Finanders spent tens of thousands of dollars using stolen credit cards and other personal information. Some of the identity material recovered had been located in wallets and purses stolen from vehicles.

The Portland Police Bureau’s (PPB) East Precinct Street Crimes Unit began investigating Finanders in late September 2019 after finding a fraudulent Oregon driver’s license in the name of an adult victim during an arrest. The license had Finanders’ photo on it in place of the named victim. Investigators learned that around the same time, police officers in Bend, Oregon had arrested Finanders and a co-conspirator after receiving a report of a person using a stolen credit card at a local restaurant.

Bend police searched the vehicle driven by Finanders’ co-conspirator and found a passport, W2s, and a retail credit card matching the name of the victim whose stolen driver’s license was recovered by PPB. A search of Finanders’ Bend hotel room returned several additional W2s in the name of another victim and a victim profile notebook.

PPB officers linked Finanders to additional identity theft crimes in Portland, Gresham, and Lake Oswego, Oregon and, on January 22, 2020, executed a search warrant at his Gresham residence. Officers seized stolen profiles of more than 80 individuals; dozens of stolen and fraudulent identification and personal documents including passports, government-issued identification cards, and driver’s licenses; an embosser; a card reader; stolen mail; additional victim profile notebooks; three handguns; a dismantled AR-15; body armor; and evidence of drug trafficking.

On March 12, 2020, a federal grand jury in Portland returned a nine-count indictment charging Finanders. On April 1, 2020, he was arrested by PPB.

Finanders will be sentenced on December 6, 2021 by U.S. District Court Judge Karin J. Immergut.

As part of his plea agreement, Finanders has agreed to pay restitution in full to his victims.

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

This case was investigated by the PPB East Precinct Street Crimes Unit with assistance from Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the U.S Postal Inspection Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.

PORTLAND, Ore.—Today, as part of a joint resolution of state and federal criminal cases, a local man was sentenced to federal prison for possessing with intent to distribute methamphetamine, and possessing a firearm as a convicted felon, after fleeing from law enforcement officers at more than 100 miles per hour and striking a sheriff’s deputy in the face with his motorcycle helmet.  He was sentenced in state court for second degree assault and assaulting a public safety officer, both felonies.

Marcus Gene St. Clair, 44, of Portland, Oregon, was sentenced to 144 months in federal prison and five years’ supervised release. St. Clair was previously sentenced to 70 months in state prison. He will serve his state and federal prison sentences concurrently in federal prison.

According to court documents, on July 29, 2019, St. Clair fled from Hood River County Sheriff’s Office deputies on a motorcycle at more than 100 miles per hour. A Multnomah County Sheriff’s Office sergeant spotted St. Clair traveling westbound on Interstate-84 toward Portland. St. Clair left I-84 before the sergeant could stop him.  The sergeant located St. Clair in a gravel lot off the highway and approach him on foot. Without warning, St. Clair hurled his motorcycle helmet toward the sergeant, striking the sergeant in the face and opening a large gash on his forehead.

Thinking quickly, the deputy pushed St. Clair’s motorcycle over so St. Clair could not flee and drew his gun. St. Clair fled on foot, yelling “I have a gun.” Another deputy deployed a taser, bringing St. Clair to the ground and, after a brief struggle, St. Clair was placed under arrest. Once St. Clair was secured, deputies search his backpack and found a loaded 9mm semi-automatic pistol with a round chambered, $1,440 in cash, and more than 300 grams of methamphetamine. The gun had been reported stolen. The deputies later learned St. Clair was traveling with a revoked driver’s license and had two outstanding felony arrest warrants.

On September 11, 2019, a federal grand jury in Portland indicted St. Clair for possessing with intent to distribute methamphetamine. A Multnomah County grand jury indicted St. Clair on several other offenses, including second degree assault and assaulting a public safety officer. Later, St. Clair was charged by federal criminal information with illegally possessing a firearm as a convicted felon.

On May 14, 2021, St. Clair pleaded guilty in federal court. He was sentenced in state court on June 4, 2021.

Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon and Multnomah County District Attorney Mike Schmidt made the announcement.

This case was investigated by the Multnomah County Sheriff’s Office and the FBI. Assistant U.S. Attorney Gary Sussman and Multnomah County Deputy District Attorney David Hannon prosecuted the cases.

PORTLAND, Ore.—A known Hoover Criminal Gang member and resident of Portland was sentenced to federal prison today for his role in a fentanyl trafficking conspiracy.

Aumontae Wayne Smith, 22, was sentenced to 70 months in federal prison and five years’ supervised release.

According to court documents and testimony, Smith and an unnamed accomplice conspired with one another to distribute counterfeit oxycodone pills containing fentanyl in and around Portland. Investigators seized six firearms from Smith and his accomplice with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Further investigation revealed Smith purchased 16 firearms that were linked to 17 different shootings in the Portland area between April and December 2020.

On April 6, 2021, a federal grand jury in Portland returned an indictment charging Smith with conspiring to distribute and possess with intent to distribute fentanyl, possessing with intent to distribute fentanyl, and possessing a firearm in furtherance of a drug trafficking crime. On April 16, 2021, he voluntarily surrendered to law enforcement. 

On May 18, 2021, Smith pleaded guilty to possessing with intent to distribute fentanyl and possessing a firearm in furtherance of a drug trafficking crime. 

As part of his plea agreement, Smith agreed to forfeit $18,919 in cash, a .40 caliber pistol, and ammunition seized by law enforcement. He also agreed to abandon interest in five additional firearms, including two semi-automatic rifles, and associated ammunition.

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

This case was investigated by the Portland Police Bureau, FBI, ATF, Multnomah County Sheriff’s Office, and Homeland Security Investigations. 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). 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.

PORTLAND, Ore.—A former marketing manager at Nike, Inc. was sentenced to more than two-and-a-half years in federal prison today for perpetrating a scheme to defraud his former employer and a childhood friend.

Errol Andam, 47, formerly of Beaverton, Oregon, was sentenced to 31 months in federal prison and 3 years of supervised release. Andam was also ordered to pay more than $1.6 million in restitution. The Internal Revenue Service had already seized $212,838 in criminally-derived proceeds from Andam, and those were forfeited as well.

According to court documents, from 2001 until his termination in 2018, Andam was employed by Nike at its headquarters in Beaverton. Most recently, Andam worked as a manager in the company’s North American Retail Brand Marketing division wherein he managed the design, build-out, and operation of “pop-up” retail venues, temporary Nike shops situated near and tailored to sports competitions and other special events around the U.S.

In the summer of 2016, Andam recruited a childhood friend to establish a company to design and build the pop-up venues as an independent contractor for Nike. Andam used his authority as a manager at Nike to ensure that his friend’s company was consistently awarded the contracts for these jobs. Though he had no formal role in his friend’s company, Andam assumed control of much of the company’s financial operations, managing financial accounts and issuing invoices to Nike.

To conceal his role in the scheme, Andam used an alter ego, “Frank Little,” to invoice Nike and manage the contract company’s account with Square, Inc., a California-based provider of mobile credit-card-processing services. In 2016, Andam also renewed the lapsed registration of an Oregon-based limited liability corporation (LLC) he owned so that he could use the defunct entity as a shell company to funnel the proceeds diverted from Nike and his friend’s company to accounts under his personal control.

Beginning in September 2016, Andam caused credit-card sales at various pop-up venues around the U.S. to be run through card readers associated with a Square account owned by his friend’s company. These proceeds were transferred to Square in California and then to Andam’s LLC bank account in Oregon. Andam represented to both Nike and his friend that the proceeds of these sales were credited against the total amount Nike owed to his friend’s company. In truth, Andam simply pocketed the proceeds and, as “Frank Little,” invoiced Nike for the full cost of the contracted services.

From September 2016 through December 2018, Andam diverted and embezzled nearly $1.5 million in Nike proceeds for his own use. In July 2018, Andam submitted a fake financial statement from his LLC in support of a residential mortgage loan application. The financial statement falsely reflected as revenue checks for $194,000 drawn on a bank account owned by his friend’s business. Andam forged his friend’s signature on one of the checks and withdrew much of that money without his friend’s knowledge.

On February 4, 2021, Andam was charged by criminal information with wire fraud, money laundering, and making false statements on a loan application. On April 12, 2021, he pleaded guilty to all three charges.

This case was investigated by IRS Criminal Investigation and the FBI. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.

EUGENE, Ore.—A Lane County, Oregon man was sentenced to federal prison today for distributing large quantities of methamphetamine in Springfield, Oregon.

Delfino Angel Davila-Tamayo, 27, was sentenced to 120 months in federal prison and five years’ supervised release.

According to court documents, in April 2018, Davila-Tamayo was identified as a supplier of methamphetamine in the Springfield area. The next month, Davila-Tamayo sold an informant four pounds of methamphetamine. He was arrested the following day when he went to collect payment from the informant.

Investigators searched Davila-Tamayo’s residence and located a .45 caliber pistol, ammunition, drug packaging materials, and scales. He admitted to selling methamphetamine and carrying the pistol for protection.

After his arrest, Davila-Tamayo was granted pre-trial release and fled. After being on the run for more than a year, he was located and arrested a second time.

On October 16, 2019, a federal grand jury in Eugene returned a three-count indictment charging Davila-Tamayo with distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.

On April 28, 2021, Davila-Tamayo pleaded guilty to distribution of methamphetamine. As part of his plea agreement, Davila-Tamayo agreed to voluntarily abandon the .45 caliber pistol and ammunition seized by law enforcement.

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 and the Springfield Police Department. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—A Mexican National who jointly operated Tienda Mexicana González Bros., a small convenience store and market in Southeast Portland, was sentenced to federal prison today for using the business and its money transmission licenses to launder millions of dollars in drug proceeds on behalf of a Mexico-based drug trafficking organization operating in the Portland Metropolitan Area.

Jesus González Vazquez, 37, of Jalisco, Mexico, was sentenced to 132 months in federal prison and three years’ supervised release.

“Money launderers who help drug trafficking organizations transfer their illegal proceeds are equally culpable for the path of destruction caused by illegal drugs. While drug trafficking organizations can quickly replace low-level couriers and dealers when they are arrested by law enforcement, it’s much harder for these organizations to quickly replace savvy, large volume money launderers like Mr. González Vazquez and his brother Mr. Romo. Mr. González Vazquez’s prosecution and lengthy prison sentence will challenge this organization’s ability to profit from their crimes and sends a strong message that money laundering is a serious crime with significant consequences,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.

“Drug cartels thrive on their lust for money and power,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Operating under the guise of a small convenience store, Vazquez funneled millions of drug profits back to Mexico. This sentence is a successful step towards removing the ability of the cartels to collect their profits from the poison they inject into our communities.”

“This case highlights the importance of teaming with our federal and local partners in order to address these and other related large-scale issues,” said Interim Chief Claudio Grandjean of the Gresham Police Department. “The opioid crisis is ravaging so many in our communities across the region and across the country. I’m proud of the part the Gresham Police Department was able to play in holding those accountable who seek to profit from others’ misery.”

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

The organization’s numerous sources of supply would import large quantities of illegal drugs that were taken to stash houses throughout the metro area where they were processed and prepared for sale. A large network of local drug dealers would then distribute user quantities of each drug. The organization would routinely change stash locations, rotate vehicles and phones, and pay individual couriers to take time off to avoid detection by law enforcement.

In approximately 2011, González Vazquez moved to Oregon and began working with his co-defendant and brother, Juan Antonio Romo, 46, also of Jalisco, at the González Bros. market. During this time, the market was an authorized agent for Sigue Corporation; Servicio UniTeller, Inc.; and Continental Exchange Solutions/Ria Financial, three large money services businesses known primarily for international money wires. Between January 2015 and October 2019, the majority of money transfers initiated at the market were conducted by González Vazquez and Romo.

On a continuing basis, González Vazquez and Romo would receive the proceeds of the Diaz-Monroy organization’s illegal drug sales in the form of bulk cash delivered by couriers to the González Bros. market. González Vazquez and Romo would wire the money to various DTO contacts throughout Mexico, structuring the transfers into multiple smaller transactions to avoid detection by the money services businesses or financial regulators. According to the government’s evidence, between January 2015 and October 2019, González Vazquez and Romo laundered at least $19 million dollars in drug proceeds from the market.

In addition to laundering the DTO’s proceeds, González Vazquez also performed other illegal functions for the organization, including facilitating the purchase of weapons in the U.S. to smuggle to Mexico, facilitating large drug transactions, assisting the escape of a fugitive to Mexico, assisting various drug dealers obtain false driver’s licenses, and helping DTO associates illegally enter the U.S.

In October 2019, González Vazquez and many of his co-defendants were arrested as part of a coordinated, multi-agency law enforcement operation. Investigators executed federal search warrants at more than a dozen locations throughout the Portland area, seizing 22 pounds of methamphetamine, quantities of heroin and cocaine, and seven firearms. González Vazquez and his co-defendants arrested as part of the takedown joined several others already in state custody on related charges. In total, law enforcement seized 51 firearms, including assault rifles, shotguns, and handguns, from defendants affiliated with the Diaz-Monroy drug trafficking organization.

On October 24, 2019, a federal grand jury in Portland returned a 61-count superseding indictment charging González Vazquez and 41 others for their roles in the drug trafficking and money laundering conspiracy.

On March 24, 2021, González Vazquez pleaded guilty to conspiring to commit money laundering.

During his sentencing, U.S. District Court Judge Michael H. Simon ordered González Vazquez to forfeit all assets seized by law enforcement during the investigation, including body armor, firearms, magazines, several dozen cell phones, and more than $250,000 in criminally-derived proceeds seized by law enforcement.

González Vazquez is the twentieth defendant sentenced for his role in the conspiracy. Defendants have been sentenced to as much as 235 months in prison. 24 defendants are awaiting sentencing and one is pending trial. Diaz, Monroy, and several other defendants are fugitives believed to be in Mexico.

Acting U.S. Attorney Asphaug, Special Agent in Charge Hammer, and Interim Chief Grandjean made the announcement.

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

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.

PORTLAND, Ore.—A former certified public accountant and former chief financial officer of a McMinnville, Oregon company was sentenced to federal prison today for evading $99,000 in personal income taxes.

Kent Jensen, 58, was sentenced to 18 months in federal prison and three years’ supervised release.

According to court documents, in 2014 and 2015, Jenson, who also previously worked as an auditor with an international accounting firm and a financial consultant for a business in Milwaukie, Oregon, allegedly set up several nominee companies and nominee bank accounts to conceal most of his personal income from the IRS. Jensen arranged for his financial consulting clients to pay his consulting fees to these nominee companies. He then deposited the funds into nominee bank accounts and used the proceeds for personal expenses. In 2014 and 2015, Jensen submitted false personal income tax returns that substantially underreported his personal income and the taxes owed.

In February 2021, Jensen was charged by criminal information with two counts of felony tax evasion. He pleaded to both charges on April 19, 2021.

During sentencing, U.S. District Court Judge Karin J. Immergut ordered Jensen to pay $99,000 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 and prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—An Oregon man pleaded guilty today to six felony charges after failing to pay more than $1.7 million in personal income taxes in a complex tax evasion scheme dating back to 2001.

Robert Andrew Lund, of Lebanon, Oregon, pleaded guilty to tax evasion, failure to file personal income tax returns, and stealing food stamp and Medicaid benefits.

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 and taking advantage of personal contacts. 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 grand jury 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 is also charged in a separate federal case with making a false statement in connection with a personal bankruptcy case. All of Lund’s remaining charges will be dismissed as part of his plea agreement.

Lund faces a maximum sentence of 27 years in prison, $950,000 in fines, and three years’ supervised release. He will be sentenced on October 14, 2021 before U.S. District Court Judge Michael H. Simon.

As part of his plea agreement, Lund will 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.

PORTLAND, Ore.—An indictment was unsealed in federal court today charging a Portland entrepreneur with fraudulently applying for and converting to his personal use loans intended to help small businesses during the COVID-19 pandemic.

Peter Peacock Blood, 57, has been charged with two counts of loan fraud.

According to court documents, Blood is the sole owner and principal officer of two Oregon corporations, Cycle Power Partners, LLC, and Cycle Holdings, LLC. According to tax returns filed in 2019 and 2020, Cycle Power Partners had two or fewer employees and paid less than $6,900 in quarterly wages and other compensation. No quarterly tax returns were filed for Cycle Holdings during this time period.

In April 2020, Blood is alleged to have knowingly made false statements on two separate Paycheck Protection Program loan applications. In these applications, Blood claimed his companies had 10 employees and an average monthly payroll in excess of $116,000. The first application resulted in a loan of more than $332,000; the second yielded a loan of more than $290,000.

If convicted, Blood faces a maximum sentence of 30 years in federal prison, 5 years’ supervised release, and fines of up to $2 million.

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, the Small Business Administration Office of Inspector General, and the FBI. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.

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

The Paycheck Protection Program is an economic relief program authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and administered by the Small Business Administration. The CARES Act, signed into law on March 27, 2020, was designed to provide emergency financial assistance to millions of Americans and small businesses suffering the economic effects of the COVID-19 pandemic.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit http://www.justice.gov/coronavirus.

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.—Tyler Glenn Chance Warren, 31, of Pendleton, Oregon, was sentenced to three years’ federal probation, a $1,000 fine, 40 hours of community service, and a three-year fishing ban after illegally taking bull trout from the Metolius River in the Deschutes National Forest.

Warren is the fourth Oregon resident convicted in federal court for illegally taking bull trout from area waters since Operation No Bull, a coordinated anti-poaching law enforcement operation, launched in 2017. Since its inception, the operation has resulted in criminal charges, civil penalties, or citations for more than 30 bull trout poachers in federal, state, and Tribal courts.

According to court documents, on December 3, 2017, Warren and co-defendant Thomas R. Campbell, 30, of Culver, Oregon, illegally took several bull trout from the Metolius River and the Eyerly Property, a portion of protected land adjacent to the Metolius near its confluence with Lake Billy Chinook. The Eyerly Property is held in trust by the U.S. for the Confederated Tribes of Warm Springs and only accessible to tribal members.

On December 4, 2017, Campbell posted a photo on Instagram of himself holding a juvenile bull trout. Another Instagram post showed Warren holding a bull trout on the Metolius. Investigators later found more photos on Campbell’s phone including several that Campbell and Warren had texted to each other on December 3. One of the photos depicted Warren holding a bull trout over a cast iron pan containing steaming fish meat. Another depicted Warren holding a dead bull trout with a beer can wedged in its mouth. Warren transported the fish to his residence in Redmond where he texted Campbell two additional photos of Ziploc bags filled with bull trout fillets. Investigators believe Warren took at least four bull trout from the Metolius on December 3, but the exact number is unknown.

On September 9, 2019, Warren, Campbell, and a third co-defendant, Joshua Alan Hanslovan, 29, of Albany, Oregon, were charged by criminal information with violating the Lacey Act. All three men later waived indictment and pleaded guilty. On November 23, 2020, Campbell was sentenced to five years’ federal probation, a $6,000 fine, and 300 hours of community service ordered to be served on habitat restoration and conservation projects. On June 16, 2021, Hanslovan was sentenced to three years’ federal probation, a three-year angling ban, and 125 hours of community service. On December 7, 2021, a fourth poacher, Tyrone T. Wacker, 42, of Culver, Oregon was sentenced in a separate criminal case to five years’ probation, a three-year angling and hunting ban, a $1,000 fine, and 90 hours of community service.

The fines issued as part of federal sentences in these cases were ordered to be paid to the Lacey Act Reward Account, a fund used to provide monetary awards to those who provide information about wildlife crimes and to pay costs incurred caring for fish, wildlife or plants held as evidence in ongoing investigations.

Bull trout are listed as threatened under the Endangered Species Act and are vulnerable to overfishing. Poaching represents a lethal threat to their recovery. Today, bull trout inhabit less than half of their historic range. Central Oregon’s Metolius River is an important spawning ground for the fish and helps to populate other waters. Bull trout are revered by anglers and are an important Tribal resource.

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

This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement; Oregon State Police Fish and Wildlife Division; Confederated Tribes of Warm Springs, Branch of Natural Resources; and U.S. Forest Service Law Enforcement and Investigations. It was prosecuted by Will McLaren and Pam Paaso, Assistant U.S. Attorneys for the District of Oregon.

The U.S. Fish and Wildlife Service is responsible for protecting America’s wildlife from poaching, illegal commercialization, and other kinds of wildlife crime. If you have information related to a wildlife crime, please call 1-844-FWS-TIPS (1-844-397-8477) or email fws_tips@fws.gov.

EUGENE, Ore.—A Newport, Oregon man was sentenced to federal prison today for creating websites to illegally distribute thousands of copyright-protected movies and television shows and evading taxes on the profits of his illicit endeavor.

Talon White, 31, was sentenced to 12 months and one day in federal prison and three years’ supervised release.

According to court documents, in October 2013, investigators received information regarding numerous illegal websites linked to White that allowed paid subscribers to stream and download thousands of copyright-protected movies and television shows. In 2014, the Motion Picture Association of America (MPAA), an organization that assists the motion picture and television industry in protecting its intellectual property rights, demanded White cease and desist his illegal activity. White ignored the demand. Over the next four years, White migrated his illicit business and subscribers from one website to another to avoid detection.

By 2018, White had amassed millions of dollars in subscription fees from his websites. Between February 2018 and September 2018 alone, he collected nearly $3 million in fees. In November 2018, investigators served search and seizure warrants on his house in Newport and several bank accounts. Agents seized $3.9 million from his accounts, $35,000 in cash, and more than $1 million in cryptocurrency. Between 2013 and 2017, White also filed false personal income tax returns, underreporting his income by more than $4.4 million and causing a tax loss to the IRS of more than $1.7 million.

On November 1, 2019, White was charged by criminal information with copyright infringement and tax evasion. On November 25, 2019, White pleaded guilty to both charges.

During sentencing, U.S. District Court Judge Ann L. Aiken ordered White to pay more than $4.3 million in restitution to the MPAA and IRS. White must also forfeit all U.S. currency and cryptocurrency seized from his bank accounts, in addition to his Newport house that was purchased with proceeds of his scheme.

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. Assistant U.S. Attorneys Gavin W. Bruce and Amy Potter prosecuted the case.

EUGENE, Ore.—A Vancouver, Washington man was sentenced to federal prison today for sending sexually explicit emails and text messages to an undercover law enforcement officer posing online as a 13-year-old girl, and then traveling across state lines for a planned sexual encounter with the child.

Daniel Lee Baldie, 35, was sentenced to 10 years in prison and 25 years’ supervised release.

According to court documents, in January and February 2020, Baldie sent emails and text messages to a Benton County Sheriff’s Office deputy posing online as a 13-year-old girl. Baldie’s emails included requests for a nude photo and descriptions of sexual acts he would engage in with the child. Baldie also sent the deputy a photo of his genitals. As part of the email and text message exchange, Baldie arranged to meet the purported child and bring her back to his residence in Vancouver for a sexual encounter.

On February 7, 2020, law enforcement officers followed Baldie from his residence to a meeting location in Corvallis, Oregon where he was arrested. Baldie admitted he intended to meet the child and take her back to his residence.

On February 11, 2020, Baldie was charged by criminal complaint with traveling with intent to engage in illicit sexual conduct, attempted production of child pornography, and coercion and enticement. On March 30, 2021, he pleaded guilty to attempted coercion and enticement of a minor.

This case was investigated by the Benton County Sheriff’s Office and the FBI. It was prosecuted by Jeffrey Sweet, Assistant U.S. Attorney for the District of Oregon and the Benton County District Attorney’s Office

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.

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.—After serving more than 15 years in federal prison for his first conviction under the Armed Career Criminal Act, a Portland man is headed back to federal prison for new drug and firearm offenses committed while on post-prison supervision.

Kelly David Ankeny, Sr., 61, was sentenced to 230 months in federal prison.

According to court documents, in October 2003, after being released from state prison, Ankeny took up residence in a house occupied by his 18-year-old son and his son’s roommates. At the time, Ankeny had prior convictions for second degree robbery, felon in possession of a firearm, and drug trafficking. Before long, Ankeny took over his son’s house, started selling methamphetamine, and obtained several firearms.

Ankeny’s ex-wife and the mother of his 18-year-old son tried to intervene and get Ankeny to leave the home. In response, Ankeny twice threatened her with a firearm. The ex-wife reported Ankeny’s conduct to the Portland Police Bureau who, after obtaining a federal search warrant, entered the home on November 20, 2003. Officers found Ankeny sitting in a recliner near the front door. Ankeny had one loaded handgun tucked beside the cushion of his recliner and a second sitting on an adjacent chair. Three other firearms were found in the house, including a sawed off shotgun and rifle.

On January 13, 2004, Ankeny was indicted by a federal grand jury in Portland for being a felon in possession of a firearm and illegally possessing an unregistered sawed off shotgun. On February 15, 2005, he pleaded guilty to both charges. After serving more than 15 years in federal prison, Ankeny began his term of supervised release on August 14, 2018. Less than one year after being released from prison, Ankeny admitted to using methamphetamine.

On June 25, 2019, several U.S. Probation officers conducted a home visit to Ankeny’s Gresham, Oregon residence. A safe in Ankeny’s room was found to contain more than four pounds of methamphetamine, a pound of heroin, and drug packaging material. During the search, Ankeny became enraged, hit a wall and yelled at the officers. Believing there was excessive danger in arresting Ankeny on the spot, the officers ordered Ankeny to report to the U.S. Probation office later that afternoon. Ankeny failed to appear and cut off his GPS monitoring bracelet.

U.S. Probation sought the assistance of the U.S. Marshals Service and Multnomah County Sheriff’s Office Special Investigations Unit who, over the next two months, attempted to locate and arrest Ankeny. On August 20, 2019, officers identified Ankeny driving a vehicle in east Multnomah County. They waited for Ankeny to enter a residence and developed a tactical plan to arrest him when he returned to this vehicle.

Later that day, Ankeny left the residence and got into his car. A deputy U.S. Marshal used his vehicle to block Ankeny’s car and Ankeny was ordered out at gunpoint. After he failed to comply with the orders, officers broke Ankeny’s driver side window, cut his seat belt, and removed him from the vehicle. A loaded 9mm firearm was found in a backpack, which was on Ankeny’s front passenger seat. Two additional handguns, ammunition, $16,000 in cash, and quantities of methamphetamine and cocaine were located elsewhere in the vehicle.

On September 26, 2019, a federal grand jury in Portland returned an eight-count indictment charging Ankeny with possessing with intent to distribute methamphetamine, heroin, and cocaine; possessing a firearm in furtherance of a drug trafficking crime; and illegally possessing  firearms as a convicted felon.

On December 17, 2020, Ankeny pleaded guilty to possessing with intent to distribute methamphetamine and illegally possessing a firearm as a convicted felon.

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

This case was investigated by the U.S. Marshals Service, Multnomah County Sheriff’s Office, and Oregon State Police Forensic Services Division. It was prosecuted by Thomas H. Edmonds, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—The former general manager of the Jacklin Seed Company, a Pacific Northwest producer and marketer of grass seed and turfgrass, was sentenced to federal prison today for conspiring to commit wire fraud and money laundering as part of multiple schemes to defraud Jacklin’s former owner, the J.R. Simplot Company, and its customers.

Christopher Claypool, 53, a resident of Spokane, Washington, was sentenced to three years in federal prison and three years’ supervised release.

Under the terms of his plea agreement, Claypool has already paid nearly $8.3 million in restitution and agreed to forfeit nearly $7.8 million in criminally derived proceeds.

As general manager of Jacklin, Claypool oversaw the company’s product sales to domestic and foreign distributors. Jacklin contracted with independent growers in Oregon for the production of proprietary grass seed varieties and fulfilled orders from a distribution facility in Albany, Oregon. Differences in grass seed yield rates resulted in the over-delivery of some varieties and underproduction of others.

According to court documents, at some point between 2013 and 2015, Claypool and other Jacklin employees realized that growers’ preference for higher-yield grasses was creating substantial shortages of lower-yield varieties Jacklin had contracted to deliver to its customers. Claypool and a colleague who oversaw product fulfillment at the company’s Albany distribution facility recognized that these shortages would either cause Jacklin to fail to deliver on its existing contracts or require Jacklin to pay a premium to growers to acquire necessary inventory, substantially eroding company profits. Claypool and his colleague anticipated that either result would negatively affect their careers.

From January 2015 and continuing until at least the summer of 2019, Claypool and his colleague directed Jacklin employees, at the Albany facility and elsewhere, to fulfill customer orders with different varieties of grass seed than the customers had ordered, to conceal such substitutions from the customers, and to invoice the customers as though no substitutions had taken place. Claypool and his colleague referred to this scheme as “getting creative.”

To conceal the unauthorized substitutions, Claypool and his colleague directed Jacklin employees to package the substitute seed varieties with false and misleading labels. They also directed employees to invoice the customers under the original terms of their contracts, notwithstanding the unauthorized substitutions. As a result of this scheme, Simplot has refunded or credited more than $1.5 million to defrauded buyers.

In addition to the undisclosed seed substitutions, Claypool engaged in several other fraudulent schemes while serving as Jacklin’s general manager. In one scheme, he directed an accomplice to create a limited-liability corporation (LLC) to pose as an independent grass seed broker. Claypool and a colleague conspired to route a portion of Jacklin’s overseas sales through a competing grass-seed seller based in Jefferson, Oregon. The company would, in turn, add its own mark-up to the sales and kick back outsized commissions to Claypool through his accomplice’s LLC. From December 2018 through August 2019, Claypool generated more than $369,000 in fraudulent commissions.

In a third scheme, Claypool conspired with the owner of an independent travel agency in Spokane to inflate the purported costs of Claypool’s international business travel. Claypool traveled overseas extensively for business and had authority to approve his own travel expenses. In lieu of using Simplot’s contract travel agency, Claypool booked his flights through the independent travel agent. The agent booked economy and other lower-cost fares for Claypool, but created fake first-class bookings on the most expensive comparable itineraries in order to generate inflated invoices that he transmitted to Simplot, through Claypool, for payment. In total, the agent overbilled more than $500,000 for international airfare, the majority of which Claypool ultimately received in kickbacks from the agent.

In the most lucrative fraud scheme, Claypool directed Simplot’s payment of more than twelve million dollars in “rebates” and “commissions” to entities that were posing as foreign sales partners but were, in fact, fronts for Claypool’s coconspirators in embezzling those funds.  The coconspirators then transmitted part of their ill-gotten gains from accounts in Hong Kong to real estate investments in Hawaii under Claypool’s control.  Years later, Claypool sold the real estate and wired the proceeds to investment accounts in Spokane as part of an elaborate money laundering operation.

On February 24, 2021, Claypool was charged by criminal information with conspiracy to commit wire fraud and money laundering. On March 15, 2021, he waived indictment and pleaded guilty to all charges.

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 U.S. Department of Agriculture Office of Inspector General. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—An Oregon man pleaded guilty today for his role in a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.

Russell Anthony Schort, 39, of Myrtle Creek, Oregon, pleaded guilty to bank fraud.

Schort worked with his accomplice, Andrew Aaron Lloyd, 51, of Lebanon, Oregon, to take advantage of the Small Business Administration’s Paycheck Protection Program (PPP), an integral part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed in March 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, on May 1, 2020, Lloyd submitted a PPP loan application under Schort’s business name, Schort Lee Construction, to U.S. Bank. Included in the loan application package was a false IRS form 944 listing 2019 wages paid of more than $3 million. The application also included a fake list of fifty-six employees and the wages purportedly paid to each employee.

Based on these false representations, U.S. Bank processed the PPP loan application, resulting in the disbursal of more than $600,000 into Schort’s bank account. Three days later, Schort transferred $307,000 to Lloyd’s bank account, who used the funds to purchase securities through an online brokerage account.

On January 5, 2021, Schort was charged by criminal complaint with wire fraud, bank fraud, and money laundering. On June 8, 2021, he was charged by superseding criminal information with bank fraud.

Schort faces a maximum sentence of 30 years in prison, a $1 million fine, and five years of supervised release. He will be sentenced on October 21, 2021 before U.S. District Court Judge Michael J. McShane.

As part of his plea agreement, Schort has agreed to pay no less than $294,552 in restitution to the U.S. Treasury.

On June 17, 2021, Lloyd pleaded guilty to bank fraud, money laundering, and aggravated identity theft.

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 SBA Office of Inspector General and IRS Criminal Investigation. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the 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.—A Hillsboro, Oregon man pleaded guilty today after 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, pleaded guilty to possessing stolen mail and a counterfeit U.S. Postal Service arrow key, bank fraud, and aggravated identity theft.

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.

With his continued acceptance of responsibility, the U.S. Attorney’s Office will join Daan in jointly recommending a 90 months federal prison sentence to run concurrently with sentences previously imposed in the Multnomah and Washington County Circuit Courts for similar conduct. If the recommended federal sentence is imposed, the Clackamas County District Attorney’s Office will move to dismiss pending charges filed against Daan in the Clackamas County Circuit Court.

Daan will be sentenced on September 29, 2021 before U.S. District Court Judge Michael W. Mosman.

As part of his plea agreement, Daan has agreed to pay restitution in full to his victims and abandon his right to criminally derived proceeds and property seized by law enforcement.

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. This case was prosecuted by the U.S. Attorney’s Office for the District of Oregon.

EUGENE, Ore.—A Salem, Oregon man was sentenced to federal prison today for providing local drug dealers in Salem and Albany, Oregon with methamphetamine and illegally possessing a firearm as a convicted felon.

Frank Defelice, 63, was sentenced to 8 years and four months in federal prison and four years’ supervised release.

According to court documents, in 2016, following a months’ long investigation into local drug trafficking and firearms violations, Defelice was identified by local and federal law enforcement as a major supplier of methamphetamine to drug dealers in Salem and Albany. On January 27, 2017, officers stopped Defelice’s vehicle and arrested him pursuant to a state warrant. Officers found approximately 15 grams of methamphetamine under the driver’s seat of Defelice’s vehicle. Police then searched his home and recovered an additional 324 grams of methamphetamine as well as scales, drug packaging material, a drug ledger, and a loaded .380 caliber semi-automatic handgun. Officers also found and seized more than $37,000 in cash on Defelice’s person and in his residence.

On November 2, 2016, Defelice was charged by criminal complaint with possessing with intent to distribute methamphetamine. Later, on June 21, 2017, a federal grand jury in Eugene returned a five-count indictment charging Defelice with possessing with intent to distribute methamphetamine, possessing a firearm during and in relation to a drug trafficking crime, and possessing a firearm as a convicted felon.

On January 4, 2021, Defelice pleaded guilty to possessing with intent to distribute methamphetamine and possessing a firearm as a convicted felon.

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

This case was investigated by the Salem Police Department, Albany Police Department, and U.S. Drug Enforcement Administration. Assistant U.S. Attorney Pamela Paaso prosecuted the case.

PORTLAND, Ore.—A Hillsboro, Oregon woman pleaded guilty 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, 55, pleaded guilty to wire fraud, aggravated identity theft, filing a false tax return, and willfully failing to collect or pay payroll taxes.

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 $1.5 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.

Eckland faces a maximum sentence of 30 years in prison, a $750,000 fine, and three years’ supervised release. She will be sentenced on November 8, 2021 before U.S. District Court Judge Marco A. Hernandez.

As part of her plea agreement, Eckland has agreed to pay restitution of up to $2.5 million.

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 Hillsboro Police Department. It is being prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.

EUGENE, Ore.—A Coos Bay, Oregon man was sentenced to federal prison today for producing sexually explicit images and videos of a 3-year-old child.

Keith James Atherton, 33, was sentenced to 30 years in federal prison followed by a life term of supervised release.

According to court documents, on July 13, 2018, an undercover agent from Homeland Security Investigations (HSI) viewed child sexual abuse material streamed on a video chat website. Less than 24 hours later, Atherton was identified as the perpetrator, located, and taken into federal custody. Further investigation revealed that Atherton had produced several sexually explicit images and videos involving a 3-year-old child. Investigators seized more than 10 digital devices from Atherton, containing at least 35,000 images and 8,000 videos depicting the sexual abuse of infants, toddlers, and young children.

On July 18, 2018, a federal grand jury in Eugene returned a three-count indictment charging Atherton with using or attempting to use a minor to produce a visual depiction of sexually explicit conduct and possession and distribution of child pornography. On February 24, 2021, Atherton pleaded guilty to using or attempting to use a minor to produce a visual depiction of sexually explicit conduct.

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

This case was investigated by Homeland Security Investigations with assistance from the Coos Bay Police Department, the Coos County Sheriff’s Office and the Oregon State Police. Assistant U.S. Attorney Jeffrey S. Sweet prosecuted the case with assistance from the Coos County District Attorney’s Office.

Anyone who has information about the physical or online exploitation of children are encouraged to contact HSI at (866) 347-2423 or submit a tip online at www.ice.gov/tips.

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

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

PORTLAND, Ore.—Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon, and Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon, have the issued the following joint statement following the resignation of members of the Portland Police Bureau’s Rapid Response Team.

“Communities across the nation have endured many challenges over the past year as they attempt to address racial inequities in the wake of the murder of George Floyd. In Portland, those challenges included large and sometimes violent demonstrations that strained our local resources and repeatedly placed officers in the difficult position of policing large and sometimes hostile crowds. As law enforcement officials, we recognize that community members and law enforcement officers alike are responsible for their conduct and that our judicial system is designed to address wrongdoing equally, whether by community members or law enforcement officers.

Like all Portlanders, we are proud of our community’s long history of peaceful civic activism and free speech. We are also proud of the federal, state, and local law enforcement officers who continue to respond to Portland demonstrations to ensure all community members can exercise their First Amendment rights safely and without the threat of violence. We urge community members to join law enforcement in helping to ensure all future demonstrations remain peaceful and inclusive.”

PORTLAND, Ore.—An Oregon man pleaded guilty today after fraudulently converting to personal use loans intended to help small businesses during the COVID-19 pandemic.

Andrew Aaron Lloyd, 51, of Lebanon, Oregon, pleaded guilty to bank fraud, money laundering, and aggravated identity theft.

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.

“CARES Act relief programs were designed to help American small businesses weather a historically difficult time in our nation’s economic history. Andrew Lloyd saw an opportunity to profit off the COVID-19 pandemic and did so at the expense of hardworking Americans. Our office will continue to investigate and prosecute anyone who seeks to unfairly enrich themselves from public funds set aside to help those in need,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.  

“While Americans suffered with the economic collapse that COVID-19 brought to our communities, Lloyd decided to cash in on the catastrophe. As hard working, honest people were forced onto unemployment and into food lines, Lloyd was pouring millions of stolen dollars into brokerage accounts and real estate deals. Thanks to our investigative partnerships, he will now face years in prison,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.

“As our country continues to recover from the destructive effects of the COVID-19 pandemic, there are individuals like Andrew Lloyd who opt to do further harm to our country by exploiting the suffering of fellow Americans,” said Corinne Kalve, Acting Special Agent in Charge of IRS Criminal Investigation (IRS:CI). “IRS:CI will continue to pursue those who choose to abuse our financial system and who choose to steal pandemic recovery funds for their own illicit gain.”

“Lying to gain access to economic stimulus funds will be met with justice,” said Weston King, SBA Office of Inspector General Western Region Special Agent in Charge. “SBA OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with pandemic challenges.  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”

According to court documents, in October 2020, federal agents initiated an investigation into Lloyd based on information suggesting he had fraudulently applied for PPP loans and EIDL at multiple financial institutions. Beginning in April 2020, Lloyd began submitting loan applications using numerous business names and personally identifiable information of relatives and business associates without their consent.

Lloyd submitted false documentation to justify the loan amounts requested, including an IRS Form 944 listing the 2019 wages purportedly paid by entities controlled by Lloyd. Total wages allegedly paid by these entities ranged from $3 million to more than $4.7 million. Lloyd’s loan applications also included lists of between 56 and 64 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.

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 E*TRADE Securities brokerage account. Securities Lloyd purchased using the fraudulently acquired funds substantially increased in value.

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 $11 million.

On January 5, 2021, Lloyd was charged by criminal complaint with wire fraud, bank fraud, and money laundering. He was arrested and made his first appearance in federal court on January 7, 2021. On June 6, 2021, he was charged by superseding criminal information with bank fraud, money laundering, and aggravated identity theft.

With his continued acceptance of responsibility, the U.S. Attorney’s Office will join Lloyd in jointly recommending a sentence of 61 months in federal prison. He will be sentenced on September 9, 2021 before U.S. District Court Judge Michael J. McShane.

As part of his plea agreement, Lloyd has agreed to pay more than $3.6 million in restitution to the U.S. Treasury. Lloyd also agreed to forfeit more than $11 million in cash and securities and 23 properties that were purchased with PPP funds.

An accomplice of Lloyd’s, Russell Anthony Schort, 39, of Myrtle Creek, Oregon, was charged alongside Lloyd for similar conduct. Schort is scheduled to plead guilty on July 1, 2021.

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 SBA Office of Inspector General and IRS Criminal Investigation. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the 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.—A federal jury in Portland found a local man guilty today for shooting and robbing two marijuana sellers in August 2017.

Ernest Franklin Evans, 39, a Portland resident, was found guilty of Hobbs Act robbery and using, carrying, and discharging a firearm in furtherance of a crime of violence and drug trafficking crime.

According to court documents and trial testimony, on August 3, 2017, an associate of Evans set up a ruse to purchase of 10 pounds of marijuana from two local marijuana sellers. After arriving at an agreed upon location, the two marijuana sellers wheeled out a large black tote full of marijuana. Shortly thereafter, two masked men—Evans and a second associate—came out from behind the corner of a building with guns drawn. Evans had a sawed-off shotgun and his associate had a pistol. Evans shot both marijuana sellers with a sawed-off shotgun and took their marijuana.

Evans was arrested on November 19, 2018, following the execution of a federal search warrant on his Portland residence.

On May 11, 2021, a federal grand jury in Portland returned a two-count superseding indictment charging Evans with robbery and using, carrying, and discharging a firearm during a crime of violence and drug trafficking crime.

Evans faces a maximum sentence of life in prison, a $250,000 fine, and five years’ supervised release.

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

This case was investigated by Homeland Security Investigations with assistance from the Portland Police Bureau; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the FBI. It was prosecuted by Assistant U.S. Attorneys Peter D. Sax and Jeffrey S. Sweet.

EUGENE, Ore.—A Colorado man pleaded guilty today to a federal hate crime for stabbing a Black man from Ontario, Oregon while the man was sitting in a fast-food restaurant.

Nolan Levi Strauss, 27, pleaded guilty to a hate crime involving an attempt to kill.

According to court documents, on the morning of Dec. 21, 2019, a man walked into an Arby’s Restaurant and adjoining Pilot Travel Center in Ontario where he planned to provide documentation for a pending job application. The man sat in a booth by himself, waiting to meet with the restaurant manager, when Strauss entered the building and approached the man from behind.

Suddenly, unprovoked and without warning, Strauss stabbed the man twice in the neck. The man tried to grab Strauss’s hands and take the knife, and, in the process, managed to prevent Strauss from stabbing him again. A maintenance worker approached Strauss and directed him to drop the knife several times. Finally, the stabbing victim broke free from Strauss’s grip and ran to the other side of the restaurant before collapsing on the floor. Meanwhile, the maintenance worker used a belt to secure Strauss’s hands behind his back and waited for police to arrive.

While they waited, the worker asked Strauss why he stabbed the man. Strauss replied, “Because he was Black, and I don’t like Black people.” Strauss was arrested at the scene. He later admitted he was trying to kill the man because was he was Black.

As a result of Strauss’s attack, the stabbing victim suffered two lacerations to his neck. He was evaluated in Ontario and subsequently life-flighted to a hospital in Boise, Idaho for emergency surgery.

“The defendant is being held accountable for his vicious, racially-motivated attack on a Black man who was targeted because of the color of his skin,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Racially motivated acts of violence must not be tolerated in our country today. The Civil Rights Division of the Department of Justice will continue to work with our federal, state and local partners to ensure that individuals who commit bias motivated crimes are brought to justice for their actions.” 

 “This crime serves as a horrifying reminder that racism and bigotry still exist and threaten the safety of communities of color. Hate crimes not only hurt victims, but spread fear across entire communities,” said Acting U.S. Attorney Scott Erik Asphaug for the District of Oregon. “This conviction should send a strong message that federal law enforcement will not tolerate hate-motivated acts of violence and will move swiftly to hold those responsible accountable.”

“Everyone deserves to go to work without fearing they will be a victim of violence because of how they look or how they live. Racist attacks like this one—powered by hate and grounded in ignorance—strike at the heart of our community,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon. “We should all draw strength from our diversity and work together to protect our neighbors.”

On Sept. 17, 2020, a federal grand jury in Eugene returned a single-count indictment charging Strauss with a hate crime involving an attempt to kill.

Strauss faces a maximum sentence of life in prison. He will be sentenced on September 9, 2021 before U.S. District Court Judge Michael J. McShane.

Assistant Attorney General Kristen Clarke 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 Ontario Police Department, Oregon State Police, and the Malheur County District Attorney’s Office. 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 Civil Rights Division.

PORTLAND, Ore.—A Beaverton, Oregon man pleaded guilty today for his role in a scheme to use construction subcontracting companies to evade $100 million in payroll and income taxes on wages paid to unlicensed construction workers.

Francisco Mendez, 27, pleaded guilty to conspiracy to commit tax evasion.

According to court documents, between January 2014 and February 2018, Mendez conspired with others to make “under the table” cash payments to unlicensed construction work crews for the purpose of evading payroll and income taxes due on these wages.

As part of the scheme, otherwise legitimate construction companies would bid on residential real estate projects knowing they did not have enough employee-workers to perform all the work required. These companies would supplement their own workforce with independent work crews, some of whom did not possess valid Construction Contractors Board (CCB) licenses. Leaders of unlicensed crews would pay a fee to use another company’s CCB license.

Mendez registered a company, obtained a CCB license in his own name, and began accepting payments from unlicensed work crews for the use of his license. The legitimate construction companies did not put these unlicensed work crews on their regular payroll and, instead, wrote checks payable to Mendez’s company. Mendez cashed these payroll checks at check cashing businesses and made “under the table” cash wage payments to the unlicensed work crews. He further began accepting and cashing payroll checks from construction companies on behalf of other CCB license holding companies.

On May 20, 2021, Mendez was charged by criminal information with one count of conspiracy to commit tax evasion.

Mendez faces a maximum sentence of five years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced on September 13, 2021 before U.S. District Court Judge Karin J. Immergut.

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

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.

PORTLAND, Ore.—A Beaverton, Oregon man was sentenced today for shining a high-powered green laser at a uniformed Federal Protective Service (FPS) officer providing security at the Mark O. Hatfield U.S. Courthouse during a protest in July 2020.

Andrew Steven Faulkner, 25, was sentenced to three years’ federal probation to include six months of home detention and 40 hours of community service.

According to court documents, in the early morning hours of July 5, 2020, Faulkner shined a high-powered green laser at an FPS officer working as a member of the security team at the Hatfield Federal Courthouse. The officer was struck in the eye by the laser and quickly moved to avoid prolonged exposure. The officer was able to identify Faulkner and observed him shining the laser in the direction of other officers. When officers approached Faulkner, he attempted to flee, but was ultimately apprehended. The laser, a SDLaser 303 with a warning label cautioning direct eye exposure, was located in Faulkner’s possession.

On July 6, 2020, Faulkner was charged by criminal information with one count of misdemeanor assault on a federal officer. He pleaded guilty to the charge on January 13, 2021.

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

This case was investigated by FPS and the FBI. Assistant U.S. Attorney Ashley R. Cadotte prosecuted the case.

PORTLAND, Ore.—A Baker City, Oregon man pleaded guilty today for fraudulently converting loans intended to help small business during the COVID-19 pandemic to his personal use.

Jeremy Clawson, 32, pleaded guilty to one count of theft of public money.

Clawson took advantage of economic relief programs administered by the Small Business Administration (SBA) through Economic Injury Disaster Loans (EIDLs) and the Paycheck Protection Program (PPP), as authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act, signed into law on March 27, 2020, was designed to provide emergency financial assistance to millions of Americans and small businesses suffering the economic effects of the COVID-19 pandemic.

According to court documents, on August 11, 2020, the proceeds of an SBA EIDL totaling $145,200 were deposited into an Umpqua Bank account owned by Jeremy Clawson and his girlfriend. Shortly after receiving the deposit, Clawson began making multiple large cash withdrawals at the drive-through window of an Umpqua Bank in Baker City. On August 17, 2020, Clawson withdrew $49,905 in the form of a cashier’s check to purchase a 2016 Dodge Challenger. Umpqua Bank investigators detected the unusual activity and reported it to the SBA.

SBA loan documents showed that the loan was made for the benefit of Halperin Manufacturing Company in San Diego, California. Though there is no record of any such company, the loan application listed the company’s owner and claimed it employed 350 people. Investigators contacted the person listed as the owner, but that person denied owning or being affiliated with any such company. The purported owner further stated that the company’s supposed address in San Diego was that individual’s personal residence and not a commercial property with 350 employees.

In early September 2020, investigators learned that, in late August, Clawson had been arrested by the Baker City Police Department for driving under the influence, reckless driving, driving with a suspended license, and attempting to elude the police. Clawson was driving the 2016 Dodge Challenger at the time of his arrest. Clawson later told authorities that he had received a large inheritance from his father, including $30,000 in cash he had on his person during a subsequent arrest.

On September 11, 2020, investigators interviewed Clawson at the Baker County Jail where he was incarcerated on an unrelated charge. Clawson claimed to have received the $145,200 from a woman with whom he had an online dating relationship. He further claimed that he didn’t know what to do with the money and, after he stopped communicating with the woman, began spending the money himself. Clawson admitted to using the SBA money to purchase the Dodge Challenger and several other vehicles.

On December 21, 2020, Clawson was charged by criminal complaint with theft of government property. Later, on February 2, 2021, a federal grand jury in Portland returned a single-count indictment charging Clawson with theft of public money.

Federal agents seized the Dodge Challenger and approximately $50,000 in cash derived from the fraudulent EIDL pursuant to seizure warrants issued by the federal court and voluntary abandonment of funds in third parties’ possession.

Theft of public money is punishable by up to 10 years in prison, a $250,000 fine, and three years’ supervised release. With Clawson’s continued acceptance of responsibility, the U.S. Attorney’s Office will recommend a 24-month prison sentence followed by three years’ supervised release. Clawson will be sentenced on September 13, 2021.

As part of the plea agreement, Clawson has agreed to pay $125,200 in restitution to the U.S. Treasury.

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

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

Anyone with information about 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.—A Coachella, California man was sentenced to federal prison today for transporting five pounds of methamphetamine from Coachella to Aumsville, Oregon.

Gerardo Figueroa-Felix, 36, was sentenced to 70 months in prison followed by four years’ supervised release.

According to court documents, on January 7, 2019, Marion County Sheriff’s Office deputies responded to a call that squatters had returned to a foreclosed property in Aumsville and that there was methamphetamine inside the house. Deputies had locked the property four days prior in response to a court order. Two deputies approached the house together and spotted a white Chevrolet pickup truck with a California license plate backed into the driveway. As they approached, the deputies saw Figueroa-Felix tying up a tarp near the back of the vehicle.

One of the deputies approached Figueroa-Felix and asked why he was on the property. Figueroa-Felix produced three identification cards with his name and photograph on them. The deputy watched as Figueroa-Felix began to reach his hands into the front pockets of his jacket and ordered him to remove them. The deputy then proceeded to search Figueroa-Felix’s person and located a loaded semi-automatic Ruger 9mm handgun in his left-front pants pocket. The deputy discovered a second loaded handgun tucked into Figueroa-Felix’s waistband. Figueroa-Felix also had a double magazine pouch attached to his belt.

The investigation revealed Figueroa-Felix was a drug mule from Coachella and was paid to transport five pounds of crystal methamphetamine from Southern California to Oregon. He previously sold two pounds of methamphetamine on the Aumsville property and returned that day to sell more. Deputies seized three pounds of methamphetamine and large quantities of live .45 caliber ammunition from his truck along with another handgun.

On March 20, 2019, a federal grand jury in Portland returned a three-count indictment charging Figueroa-Felix with possession with intent to distribute methamphetamine, distribution of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.

On March 8, 2021, Figueroa-Felix pleaded guilty to one count of distribution of methamphetamine.

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

This case was investigated by the Marion County Sheriff’s Office, Salem Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It was prosecuted by Hannah Horsley and Pamela Paaso, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore.—A Fairview, Oregon, man is facing federal charges for causing thousands of dollars in damage to federal property, including the Mark O. Hatfield U.S. Courthouse and the U.S. Immigration and Customs Enforcement (ICE) Portland Field Office, during recent riots in Portland.

Anthony Amoss, 33, has been charged by criminal complaint with three counts of destruction of government property.

According to court documents, federal investigators obtained evidence showing that, during three separate riots, Amoss broke more than a dozen windows at the Hatfield Courthouse and ICE Portland Field Office. In the early morning hours of March 14, 2021, Amoss and others threw several objects at Hatfield Courthouse windows, causing more than $143,000 in damage. On March 20 and April 1, 2021, Amoss threw more than 40 objects at ICE Portland Field Office windows, causing more than $21,000 in damage.

Amoss made his initial appearance in federal court on June 2, 2021 before a U.S. Magistrate Judge and was released pending further court proceedings.

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

This case is being investigated by ICE and the Federal Protective Service and prosecuted by Gregory R. Nyhus, Assistant U.S. Attorney for the District of Oregon.

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

PORTLAND, Ore.—In separate criminal cases, two Portland area residents are facing federal charges for crimes committed during recent riots near local federal facilities, including the Mark O. Hatfield U.S. Courthouse and the U.S. Immigration and Customs Enforcement (ICE) Portland Field Office.

Richard Timothy Hernandez, 56, of Portland, has been charged by criminal complaint with three counts of destruction of government property. Rowan McManigal, 19, of Lake Oswego, Oregon, has been charged with conveying false or misleading information about possessing incendiary chemical agents on federal property.

U.S. v. Hernandez

According to court documents, federal investigators obtained evidence showing that, during three separate riots, Hernandez broke more than a dozen windows at the Hatfield Courthouse and ICE Portland Field Office. In the early morning hours of March 14, 2021, Hernandez and others threw 13 objects at Hatfield Courthouse windows, causing more than $143,000 in damage. On March 20 and April 29, 2021, Hernandez threw a total of 74 rocks at ICE Portland Field Office windows, causing more than $21,000 in damage.

U.S. v. McManigal

According to court documents, on December 19, 2020, a group of approximately 30 people gathered at the ICE Portland Field Office and proceeded to vandalize the facility. During the gathering, an individual later identified as McManigal was seen pulling the wiring from the building’s card reader and intercom. McManigal stood in a walkway in front of the building’s main entrance for several minutes before their arrest. A search of McManigal’s belongings returned a hoax explosive device with a hand-drawn hazmat placard. McManigal later confessed the device contained water and that “it was meant to waste people’s time” if they were arrested.

Both defendants made their initial appearances in federal court today before a U.S. Magistrate Judge and were released pending further court proceedings.

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

These cases are being investigated by ICE and the Federal Protective Service and prosecuted by Gregory R. Nyhus, Assistant U.S. Attorney 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.

PORTLAND, Ore.—An Indianapolis, Indiana, man has been charged with three federal felonies after repeatedly and intentionally jeopardizing the lives of police officers, destroying public property, and encouraging others to commit violence during recent riots in Portland.

Malik Fard Muhammad, 24, has been charged by criminal complaint with possession of unregistered destructive devices, engaging in civil disorder and obstructing law enforcement, and using explosives to commit a federal felony.

According to court documents, Muhammad is alleged to have traveled to Portland with his girlfriend from their home in Indianapolis for the specific purpose of violently engaging in civil disorder during recent area riots. On September 5, 2020, during a large civil disturbance in east Portland, demonstrators threw dangerous objects at police, including commercial grade fireworks, Molotov cocktails, and bottles. At least one demonstrator was seriously burned by a Molotov cocktail thrown in the direction of police. Muhammad was present at this event and provided baseball bats to members of the crowd.

Following Muhammad’s arrest in October 2020, law enforcement seized his cell phone and found messages where he bragged about providing the baseball bats to other rioters. The cell phone also contained a shopping list including common ingredients and supplies used to make a Molotov cocktail. The day after the demonstration, police located a discarded baseball bat with a Goodwill price tag in the area where the event occurred. Police found the Goodwill store where the bat was purchased and obtained surveillance footage showing Muhammad and his girlfriend buying the bats and several “growler” bottles.

On September 21, 2020, during a large demonstration near the Multnomah County Sheriff’s Office Penumbra Kelly Building, law enforcement observed an individual light on fire and throw an object toward the building. One officer observed the burning object flying through the air toward his vehicle, landing approximately 15 feet from a police sound truck. Officers recovered the unexploded device. It consisted of a yellow glass growler with a Goodwill sticker on the bottom, a cloth wick, and an ignitable liquid. It was later determined that the growler was one of the items purchased at Goodwill by Muhammad and his girlfriend. A DNA analysis also linked the growler to Muhammad.

On September 23, 2020, protesters set fire to and broke windows at the Multnomah County Justice Center. When officers advanced toward the crowd, an individual threw a Molotov cocktail in a large yellow growler that landed in front of the officers, shattered, and exploded into a large fireball. While some officers were able to move out of the way, one officer’s leg caught fire. Several videos obtained by law enforcement show Muhammad throwing the explosive device.

On October 11, 2020, police were monitoring a protest involving approximately 250 people in downtown Portland. Members of the group began heavily vandalizing various buildings and parks including the Oregon Historical Society, Portland State University, a Starbucks coffee shop, and a Bank of America branch, among others. Law enforcement observed Muhammad in the crowed dressed in black. Investigators reported observing Muhammad using a metal baton to smash the windows of several buildings and arrested him after a short chase. Muhammad possessed a loaded pistol magazine in his pocket. A loaded pistol matching the magazine found on Muhammad’s person was found discarded near the location of his arrest.

Muhammad’s trip to Portland does not appear to be an isolated event. Investigators obtained evidence that he traveled to Louisville, Kentucky, in August 2020 to meet with anti-government and anti-authority violent extremist groups to conduct firearms and tactical training. Investigators also obtained several public social media posts by Muhammad promoting violence toward law enforcement in other cities including Kenosha, Wisconsin, and Chicago.

Muhammad made his initial appearance in federal court today before a U.S. Magistrate Judge. He was detained pending further court proceedings.

Muhammad is also under indictment in Multnomah County Circuit Court for 26 state felonies including attempted aggravated murder, first degree attempted murder, unlawfully manufacturing an explosive device, first degree criminal mischief, riot, and unlawfully possessing a firearm.

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

The Portland Police Bureau, FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives are investigating the case. Assistant U.S. Attorney Adam E. Delph is prosecuting the case.

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

PORTLAND, Ore.—An indictment was unsealed on Wednesday charging a Portland, Oregon, man with fraudulently converting to personal use loans intended to help small businesses during the COVID-19 pandemic.

Eric Wade Lysne, 29, has been charged with one count each of wire and bank fraud.

The indictment alleges that, since April 2020, Lysne has 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 EIDLs and PPP loans. In order to give Paradigm the appearance of a legitimate business, Lysne applied for and received an IRS Employer Identification Number in April 2020 and registered the business with the Oregon Secretary of State the following month.

In May 2020, Lysne applied for an EIDL, falsely claiming Paradigm employed 10 individuals in the agriculture sector and realized gross revenues of nearly $1 million in the twelve months ending on January 31, 2020, and that he, as the applicant, had not been convicted of any felonies in the last five years. (In fact, Lysne had been in prison for most of that twelve-month period as the result of a felony conviction in Washington County in May 2019.)  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 extensive cash withdrawals.

In April 2021, Lysne applied to SBA for an increase in his EIDL balance, seeking to borrow an additional $302,600. That application remains pending as of Lysne’s indictment.

Lysne also applied last May for a PPP loan of $50,000 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 to Lysne.

Lysne made his initial appearance in federal court yesterday before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and released pending a three-day jury trial scheduled to begin on July 27, 2021.

Wire fraud is punishable by up to 20 years in prison and a fine of up to twice the victim’s losses. Bank Fraud is punishable by up to 30 years in prison and a $1 million fine.

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, 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.

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

EUGENE, Ore.—A federal grand jury in Eugene has returned an indictment charging a Eugene man with stalking and mailing threatening letters to a former teacher.

Gary Franklin, 57, has been charged with stalking and using the U.S. Postal Service to mail threatening communications.

According to court statements, Franklin sent two letters to an adult female victim between December 2020 and May 2021. The first letter contained a printout of what appeared to be a deceased, mutilated female. Handwritten wording above and below the image included racial and sexual orientation slurs and stated, “What I’d like to do to you.” The second letter contained another photograph of a deceased, mutilated female. The handwritten wording around the image stated that the photograph represented Franklin’s fantasy of what he wanted to do to the victim. 

A forensic analysis conducted by the Oregon State Police Laboratory found Franklin’s fingerprints on the first letter. In May 2021, the FBI subsequently executed a search warrant on Franklin’s Eugene residence, revealing a collection of knives, violent literature, and white supremacist memorabilia.  Franklin was arrested without incident.

Franklin made his initial appearance in federal court on May 21, 2021 before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and scheduled for a jury trial to begin on July 27, 2021.  On May 24 and 25, 2021, a U.S. Magistrate Judge held detention hearings for Franklin and detained him pending the jury trial.

If convicted, Franklin faces a maximum sentence of 5 years in federal prison for each count, one year of 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 and U.S. Postal Inspection Service. Assistant U.S. Attorney Adam E. Delph is prosecuting the case.

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

Stalking is a serious federal crime involving a pattern of behavior directed at a specific person that would cause a reasonable person to fear for their safety. For more information about stalking, including resources for victims, please visit the Stalking Prevention, Awareness, & Resource Center (SPARC) at www.stalkingawareness.org.

Anyone with information about real or perceived threats of violence should call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.

For immediate threats to life and safety, please call 9-1-1.

MEDFORD, Ore.—A two-count indictment was unsealed today charging a former Klamath Falls, Oregon police officer for stealing methamphetamine and fentanyl from an evidence room.

Thomas Dwayne Reif, 27, has been charged with two counts of possessing a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge.

According to the indictment, on or about November 27, 2020, Reif is alleged to have entered the Klamath Falls Police Department’s temporary evidence room using an unauthorized key and removed an evidence item containing methamphetamine and fentanyl. Reif briefly left the evidence room before returning the evidence item to the evidence locker and leaving the facility.

Shortly thereafter, Reif overdosed while operating his police car. The car jumped a median, travelled into oncoming traffic, and caused a multiple-vehicle accident. Reif was rushed to the hospital and successfully revived by medical personnel. Toxicology reports showed that Reif was under the influence of substances including methamphetamine and fentanyl.

Investigators searched the personal locker assigned to Reif at the Klamath Falls Police Department.  Inside the locker, investigators found that Reif had concealed an evidence bag containing methamphetamine.  

Reif made his initial appearance in federal court today before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and released pending a jury trial scheduled to begin on August 3, 2021.

If convicted, Reif faces a maximum sentence of four years in federal prison, one year of 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 Federal Bureau of Investigation with Oregon State Police and is being prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon.  Klamath Falls Police Department cooperated and provided assistance throughout the investigation.

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