District of Oregon

PORTLAND, Ore.—Today, U.S. Attorney Billy J. Williams joined Attorney General William P. Barr and the entire Department of Justice in observing the 15th Annual World Elder Abuse Awareness Day and echoing voices around the world condemning elder abuse, neglect, and exploitation.

The Department of Justice is committed, through its department-wide Elder Justice Initiative (EJI), to preventing and prosecuting fraud on America’s seniors.

“World Elder Abuse Awareness Day affords us a valuable opportunity to reaffirm our commitment to protecting elderly Americans from fraud and abuse. Seniors fall victim to fraud schemes at far greater rates than the rest of the population,” said U.S. Attorney Williams. “We all need to be vigilant in watching out for our elderly friends and love ones. Intercede when you learn that a friend or family member is contemplating sending money to someone who has contacted them by telephone or online. Your vigilance will make a difference.”

The COVID-19 pandemic has created unprecedented challenges for our country and the world. Senior citizens are among those most vulnerable to and severely affected by the novel coronavirus. During this time when seniors are isolated from their families, friends, and loved ones by social distancing and quarantine restrictions, bad actors have exploited the public health emergency to prey on the elderly through a host of fraud schemes.

For a list of COVID-19-related fraud schemes and tips for protecting your friends and love ones, please visit the U.S. Attorney’s Office COVID-19 fraud webpage at www.justice.gov/usao-or/covid-19-fraud.

Earlier this year Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities.

Recent District of Oregon elder fraud cases include:

U.S. v. Karanjit Khatkar et al.: In March 2020, two Canadian nationals were sentenced to 24 months in federal prison and three years’ supervised release for conspiring to commit wire fraud and money laundering in a scheme to steal bitcoin from an elderly Oregon resident. As mandated by their plea agreements, the defendants delivered a $142,349 check as a prepayment of restitution to their victim at their change of plea hearing. At sentencing, they were ordered to pay an additional $42,162 to their victim for a total restitution order of $184,511. Read more.

U.S. v. Ronnie Stevens & Tina Ephrem: In November 2019, a Portland couple pleaded guilty to defrauding a local elderly couple of approximately $1.8 million in a scheme lasting more than two years. Ronnie Stevens aka Tim Ephrem, 50, and Tina Ephrem aka Lisa Ann Peterson, 43, each pleaded guilty to one count of conspiracy to commit wire fraud. Read more.

U.S. v. Theodore Martin Kirk: In September 2019, Theodore Martin Kirk, 64, of Klamath County, Oregon was sentenced to 15 months in prison and three years’ supervised release for stealing more than $30,000 in Social Security benefits dispersed in the name of his elderly mother, Nadine Kirk. Ms. Kirk has been missing since March 2010 and is presumed to be deceased. Read more.

Other Justice Department elder fraud initiatives include:

National Elder Fraud Hotline: Earlier this year, Attorney General Barr launched a National Elder Fraud Hotline: 833-FRAUD-11. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.

Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the strike force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Since its inception, prosecutors in strike force districts brought cases against more than 140 sweep defendants.

Annual Elder Justice Sweep: In March of this year, the Attorney General announced the largest coordinated sweep of elder fraud cases in department history. The department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors.

Money Mule Initiative: Since October 2018, the department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019, actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 mules in the previous year.

Holding foreign-based perpetrators and those who flee the United States accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams.

For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.justice.gov/Celebrating150Years.

EUGENE, Ore.—U.S. Attorney Billy J. Williams announced today that a Corvallis, Oregon, man has been charged with defrauding members of his church, coworkers, and others by soliciting investments under the false pretense of supporting Christian missionaries and organizations.

A federal grand jury in Eugene has returned an 8-count indictment charging Erik J. Hass, 50, with wire fraud, mail fraud, and money laundering.

According to court documents, in January 2013, Hass is alleged to have founded Simply Gains, Inc., an organization he claimed supported Christian missionaries and organizations while offering significant returns for investors. Hass solicited personal acquaintances to invest in the organization via self-directed retirement and cash accounts. In exchange, he gave investors unsecured promissory notes and promised “monthly interest rate gain around 1.5-2% compounding to approximately 25%-30% per year.”

Hass also claimed that he would only profit from the investment scheme if monthly returns were higher than 2%. Yet, from the start, Hass began taking a salary drawn from investors’ funds, using the proceeds to pay for his own personal expenses. Throughout the scheme, Hass sent investors email statements reflecting their monthly interest gained and account balance. He also sent investor’s false IRS 1099-INT forms.

Hass continued accepting investments well into 2018, knowing he could not honor his investment claims. Instead, these new investments were used as Ponzi payments to older investors who had requested withdrawals from their accounts. In total, at least 20 investors lost more than $1,000,000 investing in Hass’ scheme.

Hass will make his initial appearance in federal court on July 1, 2020 before a U.S. Magistrate Judge.

This case was investigated by the FBI and the Oregon Division of Financial Regulation. It is being prosecuted by Gavin W. Bruce, 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 year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that PacifiCorp, a Portland-based utility that provides electricity to several states, including Oregon, has agreed to pay $3.4 million to settle allegations by the United States relating to the August 2018 Ramsey Canyon Fire in Jackson County, Oregon.

The Ramsey Canyon Fire ignited on August 22, 2018 near the base of a PacifiCorp transmission line 12 miles northwest of Eagle Point, Oregon. The fire burned approximately 1,888 acres of federal, state, and private land, including 930 acres of land managed by the Bureau of Land Management (BLM). The United States sought more than $4.8 million in suppression costs and resource damages.

PacifiCorp is an Oregon corporation headquartered in Portland. The company has a utility right-of-way on BLM land in Jackson and Douglas Counties on which it owns and operates the Dixonville-to-Meridian 500kV transmission line. The United States contends that the fire was caused by the failure of a connector on a transmission structure that PacifiCorp failed to properly install, inspect and maintain. The settlement is not an admission of liability of by PacifiCorp. PacifiCorp denies the United States’ contentions.

“Each year, countless Oregonians live with the recurring threat of wildfires jeopardizing their safety and personal property. Sadly, thousands of acres of public and private land are burned by preventable fires” said U.S. Attorney Williams. “Our office is committed to protecting these lands.”

“Oregon’s forest resources are important to the well-being and economy of dozens of small communities, and the BLM manages these resources for the benefit of all Americans. The loss of these lands and the cost of fighting this fire represent a significant loss to taxpayers, and we’re pleased this settlement will help recoup those costs,” said William Perry Pendley, BLM Deputy Director, Policy and Programs.  “Congratulations to the career BLM employees who provided the expertise to assess the damage done to the public's lands and to recover these costs for the benefit of the American taxpayer.”

The Oregon Department of Forestry assisted the BLM and the U.S. Forest Service in investigating this case. The United States was represented in this matter by Carla McClurg, Assistant U.S. Attorney for the District of Oregon.

Assistant Attorney General for Civil Rights Eric Dreiband and U.S. Attorney for Oregon Billy Williams issued the following statement:

"We thank Governor Kate Brown for extending religious freedom protections to people of faith as part of Phase 2 of the Reopening Oregon Plan.  Places of worship in counties that qualify for Phase 2 will be able, based on an order issued by the governor Thursday, to hold gatherings with social distancing and hygiene measures for up to 250 people, depending on the size of the facility.  Phase 1 raised some concerns about discrimination against places of worship by limiting them to 25 congregants, regardless of social distancing and hygiene measures, while allowing restaurants and fitness classes to operate with no numerical cap so long as they engaged in social distancing and adhered to hygiene measures.  Governor Brown’s new guidelines will allow places of worship that choose to reopen with the flexibility they need to serve their congregations while undertaking social distancing and hygiene protocols.

“The right to the free exercise of religion is one of our most cherished rights, and the Department of Justice is committed to ensuring that this right, and other fundamental rights, are preserved during the COVID-19 pandemic.  As Attorney General Barr has stated, ‘even in times of emergency, when reasonable and temporary restrictions are placed on rights, the First Amendment and federal statutory law prohibit discrimination against religious institutions and religious believers.’  The Department of Justice will continue to prioritize Attorney General Barr’s Memorandum regarding Balancing Public Safety with the Preservation of Civil Rights.

“We look forward to continuing to work with Governor Brown, and other Governors”

EUGENE, Ore.—A Bend, Oregon man pleaded guilty today for placing a hoax bomb at the Deschutes County Courthouse on July 29, 2019, announced U.S. Attorney Billy J. Williams.

Jonathan Tyler Allen, 24, pleaded guilty to conspiring to use a telephone to make a threat to destroy a building with an explosive.

According to court documents, on or about July 28 to July 29, 2019, Allen and co-conspirator Kellie Cameron, 31, also of Bend, conspired with one another to shut down the Deschutes County Courthouse in Bend by planting a fake bomb and calling in a bomb threat. Around the same time, Cameron constructed a fake bomb using batteries, wiring, a circuit board, and a fuel filter, among other materials.

On July 29, 2019, Allen and Cameron drove to the courthouse and placed the hoax device on a ramp near the building. At approximately 7:18am the same day, Cameron, who was with Allen, used a cell phone to call 911. He told the operator, “I just want to let you know that there are two bombs, one’s in the courthouse and good luck finding the other one.” Less than an hour later, with Allen again present, Cameron called 911 a second time to repeat his threat. Allen later threw one of the phones used into a canal to avoid being caught.

On August 7, 2019, Allen and Cameron were charged by criminal complaint with conspiring to make a threat regarding explosive materials and conveying false information and hoaxes.

Allen faces a maximum sentence of 10 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on September 6, 2020 before U.S. District Court Judge Michael J. McShane. The U.S. Attorney’s Office will recommend Allen be sentenced to 18 months in federal prison.

Cameron made his first appearance in federal court on August 21, 2019. He entered a not guilty plea and was detained pending trial. Judge McShane continued the detention order pending sentencing.

This case was investigated by the FBI, the Deschutes County Sheriff’s Office and the Bend Police Department and is being prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

PORTLAND, Ore.—A serial bank robber with three prior bank robbery convictions was sentenced today to federal prison after robbing three additional Pacific Northwest banks and making threats by mail.

Stanley Carl Green, 57, transient, and formerly a resident of Washington state, was sentenced to 140 months in federal prison and three years’ supervised release. United States District Court Judge Ann Aiken also ordered Green to pay $11,570 in restitution.

According to court documents, in December 2015, while on escape status from supervision, Green robbed a Federal Savings Bank in Olympia, Washington of $4,897. He was arrested for the robbery six months later and charged in Thurston County, Washington. Released on bond, Green again fled and a warrant was issued for his arrest.

In November 2017, Green mailed threatening letters to two people who had restraining orders against him.

In December 2017, Green robbed a Rogue Federal Credit Union in Port Orford, Oregon. With his face partially masked by a towel, Green brandished a box cutter and ordered the bank tellers to kneel on the floor. He fled with $3,833.

Later the same month, Green robbed a Columbia Bank in Waldport, Oregon. His face was again partially covered and he brandished and displayed to the tellers what appeared to be a handgun. Green fled with $2,840.

On January 17, 2018, investigators located and arrested Green at a campground in Curry County, Oregon. They seized $848 and BB ammunition. Green admitted to the three robberies and a fourth in Salem, Oregon. He told investigators that the gun used in the Waldport robbery was a BB gun he purchased at Walmart.

On November 27, 2018, Green pleaded guilty to one count of bank robbery and two counts of armed bank robbery. Prior to being sentenced today, Green pleaded guilty to one count of transmitting a communication containing a threat to injure.

This case was investigated by FBI, USMS, Port Orford Police Department, Bandon Police Department, Coos County Sheriff’s Office, Lincoln County Sheriff’s Office, Tumwater Police Department and the Lewis County Sheriff’s Office, and was prosecuted by Jeffrey Sweet, Assistant U.S. Attorney for the District of Oregon and the Lewis County Prosecuting Attorney’s Office, the Thurston County Prosecuting Attorney’s Office, the Lincoln County District Attorney’s Office and the Curry County District Attorney’s Office.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

EUGENE, Ore.—A Florida man pleaded guilty and was sentenced to federal supervised release today for falsely claiming to represent The Village People band and swindling $12,500 from The Mill Casino in North Bend, Oregon, announced U.S. Attorney Billy J. Williams.

Howard Harlib, 67, was sentenced to time served in federal prison and three years’ supervised release. Harlib has been in state custody in Florida since 2016 after being convicted of unrelated charges.

According to court documents, in August 2015, The Mill Casino, owned and operated by the Coquille Indian Tribe, received a flier from Harlib advertising the opportunity to book The Village People for a show at the casino. Casino employees contacted Harlib, who spoke with them about dates, pricing, and other matters involved in the booking. The same day, Harlib sent the casino a brochure with information about his company, Premier Entertainment. Harlib claimed the band had a show in Las Vegas, Nevada the night before one of the dates discussed with the casino and, therefore, traveling to North Bend would not be an issue.

Later, Harlib emailed the casino an artistic engagement contract, which the casino signed and returned to Harlib with a check for $12,500. Harlib cashed the check two days later. In January 2016, the casino discovered that The Village People were scheduled to appear in Florida the same day they were booked to play in North Bend. After having difficulty reaching Harlib, the casino contacted another representative of the band. The representative confirmed that Harlib did not have any association with the band. Harlib later admitted he had no authority to book the band.

Harlib’s history of frauds and swindles dates back decades, to at least 1992. In 2004, he was convicted of third degree grand theft in Florida for the same exact scheme: contracting with two victims to have The Temptations, The Supremes, and Jimmie Walker perform at their venues. After spending five years in prison for that conviction, Harlib spent another five years in prison for impersonating a doctor and possessing a variety of prescription medications.

On April 29, 2019, Harlib was charged by federal criminal information with one count of wire fraud. He pleaded guilty today to the same charge.

During his sentencing, U.S. District Court Judge Ann L. Aiken ordered Harlib to pay $12,500 in restitution to the Coquille Indian Tribe.

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

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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PORTLAND, Ore.—John Philip Stirling, 66, a Canadian citizen, was sentenced today to 40 months in federal prison and five years’ supervised release for possession with intent to distribute methamphetamine under the Maritime Drug Law Enforcement Act (MDLEA).

According to court documents, on April 9, 2019, while on a routine patrol, the U.S. Coast Guard Cutter Alert detected a sailing vessel traveling north, from Mexico to Canada, 225 nautical miles from Newport, Oregon in international waters. The vessel, named Mandalay, had a home port of Seattle, Washington. When Coast Guard personnel attempted to communicate with Stirling, he would only respond via VHF radio. Once Coast Guard personnel determined the Mandalay was a vessel within the jurisdiction of the U.S., they boarded and found Stirling to be the vessel’s sole occupant.

Stirling stated he did not have vessel documentation and refused to produce identification. Upon further questioning, Stirling’s speech began to deteriorate and he displayed signs of a possible drug overdose. Shortly before Coast Guard personnel boarded the vessel, Stirling consumed a large amount of what he believed to be pure fentanyl, but was later determined to be pentobarbital. Coast Guard personnel administered medical aid to Stirling and evacuated him by helicopter to Astoria, Oregon. He was later transported by ambulance to Adventist Health Portland for additional treatment.

The Mandalay was towed to port and later searched pursuant to a federal warrant. Investigators searched the vessel and discovered 28 jugs containing more than seven gallons of liquid methamphetamine each and a duffel bag containing several plastic-wrapped bricks of pentobarbital. Investigators later learned the drugs had been loaded onto the Mandalay from another vessel in the Sea of Cortez for delivery to Canada.

On January 13, 2020, Stirling pleaded guilty to one count of possession with intent to distribute methamphetamine under the MDLEA.

This case was investigated by the U.S. Coast Guard Investigative Service (CGIS) and Homeland Security Investigations (HSI) with assistance from U.S. Customs and Border Protection (CBP).

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

EUGENE, Ore.—A convicted felon from Eugene was sentenced to federal prison today for illegally possessing a 20-gauge shotgun, announced U.S. Attorney Billy J. Williams.

Delano Franklin Oscar, Jr., 58, was sentenced to 48 months in federal prison and three years’ supervised release.

According to court documents, in the early morning hours of December 14, 2018, Lane County Sheriff deputies identified a parked car as reported stolen. They discovered Oscar asleep in the vehicle’s front passenger seat with a 20-gauge shotgun shell near his feet. The deputies searched the vehicle and found a loaded 20-gauge pump-action shotgun, a small baggy of methamphetamine, and a glass pipe. The shotgun had been reported stolen in October 2017. Oscar was arrested without incident.

On January 16, 2019, a federal grand jury in Eugene returned a two-count indictment charging Oscar with felon in possession of ammunition and a firearm. On January 29, 2020, he pleaded guilty to both charges.

As part of his plea agreement, Oscar agreed to voluntarily abandon his interest in the shotgun seized by investigators.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Lane County Sheriff’s Office, and was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.

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

PORTLAND, Ore.—Omnicare, Inc., a subsidiary of CVS Health and a provider of pharmacy services to long-term care facilities, has agreed to pay the United States a $15.3 million civil penalty to resolve allegations that it violated federal law by, among other things, allowing opioids and other controlled substances to be dispensed without a valid prescription, United States Attorney Billy J. Williams announced today.

The Cincinnati-based Omnicare operates “closed door” pharmacies – meaning they were not open to the public – that deliver controlled substances to nursing homes and other long-term care facilities (LTCFs). Omnicare makes daily deliveries of prescription medications to residents of LTCFs, and it also pre-positions limited stockpiles of controlled substances at LTCFs in “emergency kits,” which are to be dispensed to patients on an emergency basis. These emergency kits, which often include opioids and other controlled substances that are commonly abused and diverted, remain part of Omnicare’s inventory and must be tightly controlled and tracked. The controlled substances may be dispensed only pursuant to a valid prescription.

The United States alleged that Omnicare violated the federal Controlled Substances Act in its handling of emergency prescriptions, its controls over the emergency kits, and its processing of written prescriptions that lacked required elements such as the prescriber’s signature or DEA number. The federal investigation found that Omnicare failed to control emergency kits by improperly permitting LTCFs to remove opioids and other controlled substances from emergency kits days before doctors provided a valid prescription. The investigation also revealed that Omnicare had repeated failures in its documentation and reporting of oral emergency prescriptions of Schedule II controlled substances.

As part of the settlement agreement announced today, Omnicare agreed to pay the $15.3 million civil penalty and entered into a Memorandum of Agreement with the Drug Enforcement Administration that will require Omnicare to increase its auditing and monitoring of emergency kits placed at LTCFs.

“At a time when the opioid abuse and addiction crisis continues to ravage communities across the country, vulnerable Americans must be able to trust that health care providers have their best interest in mind when administering care,” said U.S. Attorney Williams. “The Department of Justice and U.S. Attorney’s Office is committed to holding accountable companies like Omnicare who dispense powerful opioids without valid prescriptions.”

“Omnicare failed in its responsibility to ensure proper controls of medications used to treat some of the most vulnerable among us,” said DEA Acting Administrator Uttam Dhillon. “DEA is committed to keeping our communities safe by holding companies like Omnicare accountable for such failures, while ensuring continuity of care and necessary access to emergency prescription drug supplies.”

This matter was investigated by the DEA’s Field Divisions in Seattle, Denver, Los Angeles, and San Francisco, in conjunction with five United States Attorney’s Offices: the District of Oregon, the Central District of California, the Eastern District of California, the District of Colorado, and the District of Utah. The settlement agreement, which was finalized on May 6, resolves Omnicare’s civil liability for the alleged CSA violations in those five districts.

The claims settled by this civil agreement are allegations. In entering into this settlement agreement, Omnicare did not admit to any liability.

The United States Attorney’s Office for the District of Oregon was represented in this matter by Assistant United States Attorneys Clem Ashley and Alexis Lien from the Affirmative Civil Enforcement Unit.

PORTLAND, Ore.—Deshawn Everett Little Eagle, 31, of Tacoma, Washington, was sentenced today to 46 months in federal prison and three years’ supervised release for repeatedly and deliberately violating a domestic violence no-contact order.

According to court documents, in 2018, Little Eagle strangled and beat adult victim one (AV1) and her 4-year-old child in Tacoma, Washington. AV1’s parents reported suspicious bruising to the child, resulting in the issuance of a no-contact order by the Superior Court of Pierce County, Washington on October 30, 2018. The order, signed by Little Eagle, prohibited him from contacting, communicating with, or coming into physical proximity with AV1.

Between December 4, 2018 and January 7, 2019, Little Eagle called AV1 more than 100 times and, on January 9, 2019, admitted, in a text message with a relative of AV1, that he knew about the protective order. Later, on January 9, Little Eagle travelled from Tacoma to Celilo Village, Oregon where AV1 was staying with her parents. Over the next three days, Little Eagle argued with AV1, broke her phone, and damaged property at AV1’s parent’s home.

On January 12, 2019, neighbors observed AV1 crying as she and Little Eagle left Celilo Village to travel to Washington State. AV1 later told officers that during this trip, Little Eagle threatened to kill her and himself. On January 14, 2019, when Little Eagle returned AV1 to Celilo Village, a Columbia River Intertribal Fish Commission Officer arrested him for violating the protective order. After his arrest, Little Eagle called AV1 from custody at least 50 times, again violating the protective order.

On March 6, 2019, a federal grand jury in Portland returned two-count indictment charging Little Eagle with interstate violation of a protection order—travel or conduct of the offender and casuing travel of a victim. On March 20, 2020, Little Eagle pleaded guilty to one count of interstate violation of a protection order—travel or conduct of the offender.

During sentencing, U.S. District Court Judge Anna J. Brown ordered a restitution hearing to be set in July, 2020.

This case was investigated by the Columbia River Intertribal Fish Commission Enforcement department and the FBI. It was prosecuted by Jennifer Martin, Assistant U.S. Attorney for the District of Oregon.

Domestic violence is a serious violent crime that includes both physical and emotional abuse. It is frequently hidden from public view. Many survivors suffer in silence, afraid to seek help or not knowing where to turn. The traumatic effects of domestic violence also extend beyond the abused person, impacting family members and communities.

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

If you need assistance or know someone who needs help, please contact the National Domestic Violence Hotline at 1-800-799-SAFE (7233). Many communities throughout the country have developed support networks to assist survivors in the process of recovery.

The StrongHearts Native Helpline offers culturally specific support and advocacy for American Indian and Alaska Native survivors of domestic violence. Please call 1-844-762-8483 or visit www.strongheartshelpline.org for more information.

PORTLAND—In honor of National Police Week, U.S. Attorney Billy J. Williams will recognize the service and sacrifice of federal, state, local, and tribal law enforcement. The week will be observed Sunday, May 10 through Saturday, May 16, 2020.

“There is no more noble profession than serving as a police officer,” said Attorney General William P. Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”

“National Police Week affords us the opportunity to recall and reflect on the tremendous sacrifices made by everyone in the law enforcement community. While our honoring of this occasion will look different this year because of COVID-19, we still pause to commemorate the courage, duty, and extraordinary character that this profession mandates and that law enforcement officers across Oregon nobly reflect,” said U.S. Attorney Williams. “Throughout this week, we join with our federal, state, local, and tribal partners in recognizing the service of everyone in law enforcement, particularly the 89 officers nationally who gave their lives in service of their communities. We are forever grateful to these officers and the families they leave behind.”

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.

Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. This year the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they swore to serve.

Based on data collected and analyzed by the FBI’s Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 89 law enforcement officers died nationwide in the line of duty in 2019. Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.

The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil will be livestreamed to the public at 8:00 PM (EDT). To register to view this free online event, please www.LawMemorial.org/webcast.

To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.

PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Gresham, Oregon man has been charged with illegally purchasing, importing, and offering for sale chloroquine, the active pharmaceutical ingredient in prescription drugs used to treat malaria.

Matthew Owens, 42, has been charged by criminal complaint with smuggling and the receipt in interstate commerce of misbranded drugs and the delivery thereof for pay.

“Together, Americans are facing a public health emergency without precedent in our lifetimes. We are heartened by the countless examples of public service by front-line health workers, law enforcement, and ordinary Americans alike. These heroic acts of service inspire us all,” said U.S. Attorney Williams. “And yet, there are some individuals actively trying to profit off the pandemic, and, in the process, putting more lives as risk. We will not let these selfish and dangerous criminal acts continue unchecked.”

“Drugs that are produced and distributed outside the FDA’s oversight present the prospect of harm to the public health. The FDA’s drug approval process is designed to ensure that patients receive safe and effective drugs,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations (FDA-OCI) Los Angeles Field Office. “The FDA will not tolerate those who attempt to place the public health at risk, especially during a pandemic and we will take appropriate action to protect consumers from bad actors who take advantage of a crisis to deceive the public.”

“It’s unconscionable that individuals would prioritize their own greed over the health of others, particularly during a public health crisis,” said Eben Roberts, Acting Special Agent in Charge of Homeland Security Investigations (HSI) Seattle. “Illicit distribution of narcotics put unsuspecting consumers at serious risk. HSI, and our law enforcement partners, will continue to seek and bring to justice anyone who attempts to use the current health emergency to exploit others.”

According to court documents, on April 13, 2020, HSI contacted FDA-OCI after a package containing 122.8 grams of a white powder was intercepted at a FedEx facility in Memphis, Tennessee. The package originated in Xiaoshan, China, and was addressed to Owens’ Gresham apartment. The enclosed substance was declared as ammonium polyphosphate but was later determined to be chloroquine. An invoice included with the substance described it as a “sample” having “no commercial value”, statements commonly used by persons improperly importing items and attempting to avoid detection.

Investigators searched FDA records and found neither “Hangzhou Weishi Electronic Commerce Co Ltd,” the entity who shipped the package, nor “Matthew Owens” as having registered any drug manufacturing facilities. A search of Oregon Medical Board, Oregon Board of Pharmacy, and Oregon State Board of Nursing public databases found no records indicating that Owens was a physician, pharmacist, or registered nurse.

As the investigation continued, special agents from FDA-OCI and HSI learned that two additional shipments were sent from China to Owens’ apartment. One contained resveratrol, a chemical commonly found in dietary supplements. The second contained polyacrylamide, a chemical compound primarily used in wastewater treatment, but also as an ingredient in certain cosmetics.

On April 27, 2020, agents from HSI, FDA-OCI, FBI, and the U.S. Postal Inspection Service (USPIS) executed a search at Owens’ apartment. They seized laptop computers, cell phones, an unopened bag of clear, empty capsules for encapsulating pharmaceuticals, a foil bag containing an unknown powder, and a material safety data sheet for polyacrylamide.

A forensic search of Owens’ cell phones and Facebook Messenger messages associated with his cell phone number revealed conversations discussing the purchase and receipt of chloroquine from Alibaba.com, the world’s largest online business-to-business trading platform. Other messages discussed the offering of chloroquine for sale as a treatment for COVID-19.

Owens made his first appearance in federal court today after having been served a summons to appear on May 8, 2020. If convicted, Owens faces a maximum sentence of 23 years in federal prison, 3 years’ supervised release, and a $500,000 fine.

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

This case was investigated by the FDA-OCI and HSI with assistance from the FBI and U.S. Postal Inspection Service (USPIS). It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.

On March 27, 2020, the FDA issued a public notice warning of the dangers of using chloroquine phosphate and warning the public to be wary of anyone claiming to have a product to prevent or cure COVID-19. The U.S. Attorney’s Office joins the FDA in imploring the public not to take any form of chloroquine unless it has been prescribed by a licensed healthcare provider and is obtained through a legitimate source.

If you or someone you know is in danger or experiencing a health emergency, please call 911.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

PORTLAND, Ore.—U.S. Attorney Billy J. Williams is asking anyone who has witnessed or experienced discrimination or sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report this conduct.

The COVID-19 pandemic and public health emergency has impacted many Americans’ ability to pay their rent and has increased housing insecurity. It is violation of the federal Fair Housing Act (FHA) for housing providers to exploit this crisis by sexually harassing tenants in exchange for rent or other housing needs.

“Nobody should feel unsafe in their own apartment or home—particularly in the midst of a global pandemic,” said U.S. Attorney Williams. “Our office stands ready to investigate allegations of sexual harassment by anyone in control of housing and, where appropriate, we will pursue enforcement action. We will work closely with our enforcement partners to investigate any federal violations of Oregonians’ civil rights. The first step is reporting of such discrimination.”

The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division in coordination with U.S. Attorney’s Offices across the country. The initiative’s goal is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.

Last fall the U.S. Attorney’s Office hosted two roundtables to bring awareness to this type of predatory discrimination. Now, during the COVID-19 pandemic, U.S. Attorney Williams asks for the community to be even more vigilant given the increased vulnerability of individuals.

The Department of Justice has filed lawsuits across the country where a pattern or practice of sexual harassment in housing is alleged.  Investigations frequently uncover sexual harassment that has been ongoing for years. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.

Discrimination based on race, sex, religion, national origin, disability, and other protected classes is unlawful under several federal laws, including FHA, and may result in criminal or civil liability. Sexual harassment is a form of sex discrimination prohibited by FHA. Further, violent acts of hate based upon these and other protected classes violate federal hate crimes statutes. Discrimination can arise in many different contexts in addition to housing, including education, employment, health and safety, and places of public accommodation.

“It is important that we all work together to address unlawful discrimination, including violent acts or threats based upon protected classes,” U.S. Attorney Williams emphasized. “As in all emergencies, the COVID-19 outbreak has affected people of many different races, religions, and ethnicities, as well as those with disabilities. Laws prohibiting unlawful discriminatory behavior must and will be vigorously enforced.”

If you believe you are a victim of discrimination based on race, sex, religion, national origin, disability, or other protected classes, you can find information about how to file a complaint at https://www.justice.gov/crt/how-file-complaint and https://www.justice.gov/crt/fcs. Anyone who has experienced sexual harassment in housing, or knows someone who has, can also email fairhousing@usdoj.gov. The U.S. Attorney’s Office Civil Rights Coordinator can be reached by calling (503) 727-1000.

PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Salem, Oregon man faces federal drug and firearm charges after large quantities of methamphetamine, eight firearms, and approximately $400,000 in cash were found in his residence and nearby storage locker.

Joshua McGuire, 42, has been charged by criminal complaint with conspiring to possess with intent to distribute methamphetamine, possessing with intent to distribute methamphetamine, and possessing a firearm as a convicted felon.

According to court documents, the Salem Police Department Street Crimes Unit (SCU) began investigating McGuire in April 2020 after they learned he was distributing large quantities of methamphetamine throughout the Salem area. On May 7, 2020, SCU investigators applied for and obtained warrants to search McGuire’s home, vehicle, and storage locker. SCU investigators, working in cooperation with the FBI, executed the warrants the same day.

In McGuire’s storage locker, investigators found more than seven pounds of methamphetamine, a Sig Sauer handgun, digital scales, and drug packaging material. In his home, they found an additional 395 grams of methamphetamine, seven firearms, and approximately $400,000 in cash. McGuire was arrested at his residence without incident.

McGuire made his first appearance in federal court today and was ordered detained pending a follow-up hearing on May 11, 2020. If convicted, McGuire faces a maximum sentence of life in federal prison with a 10-year mandatory minimum, five years’ supervised release, and a $10 million fine.

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

This case was investigated by the Salem Police Department Street Crimes Unit with assistance from the FBI and is being prosecuted by the Ashley Cadotte, Assistant U.S. Attorney for the District of Oregon.

 

PORTLAND, Ore.—Garrett Luke Pruitt Rexroad, 29, of Culver, Oregon, was sentenced today to 57 months in federal prison and four years’ supervised release for a yearlong identity theft and fraud spree that spanned seven Oregon counties and cheated more than 100 individuals, businesses, financial institutions, and communities out of $190,000.

According to court documents, investigators first learned of Pruitt Rexroad’s conduct in April and May of 2017 when he used a stolen credit card to reserve several Portland hotel rooms. When police arrested him, he possessed an identification card and 26 credit and debit cards in the name of a single victim. He was charged in Multnomah County Circuit Court and released from custody.

Between May and August of 2017, while on pre-trial release, Pruitt Rexroad made several more fraudulent transactions in Lane County and Redmond, Oregon using the stolen credit card information of three additional victims. He was arrested, charged in Lane County Circuit Court, and again released from custody.

On November 6, 2017, Pruitt Rexroad led law enforcement officers from multiple agencies on a high-speed pursuit in a stolen vehicle from Seaside to Astoria, Oregon while under the influence of methamphetamine and alprazolam. After driving over a spike strip, he abandoned the car and fled on foot. Police continued to pursue and eventually arrested Pruitt Rexroad. Officers searched the stolen vehicle and found a wallet containing the driver’s license of another victim, 50 credit cards in different names, credit card readers, lists of credit card numbers, an unloaded .22 caliber handgun and $200 in cash. Pruitt Rexroad was charged in Clatsop County Circuit Court and, after posting bond, was released from custody a third time.

Pruitt Rexroad’s crime spree continued just two weeks later when he used a stolen credit card to rent two hotel rooms in Lake Oswego, Oregon. Police searched the abandoned rooms and found copies of fraudulent Oregon driver’s licenses, bags of stolen mail, and packaging for prepaid debit cards. Between November 22, 2017 and December 20, 2017, Pruitt Rexroad used fraudulent credit cards to purchase more than $1,600 in cigarettes from several Plaid Pantry stores in the Portland area. Then, on December 6, 2017, he stole an ATM containing approximately $10,000 from a McMenamin’s Hotel in Gearhart, Oregon.

He was arrested on December 24, 2017 in West Linn, Oregon in possession of a stolen vehicle after a concerned citizen reported seeing him steal a license plate from a neighbor’s truck. Upon his arrest, Pruitt Rexroad possessed a laptop, credit card writer, and a single credit card used to make several other phone fraudulent credits cards. The stolen vehicle was found to contain various burglary tools, a large saw, cutting blades, ski mask, hand truck, can of mace, and marijuana. A search of Pruitt Rexroad’s laptop revealed additional evidence of fraudulent retail purchases and identity theft crime. On January 10, 2018, he was charged in Clackamas County Circuit Court and released from custody a fourth time.

Between March and May 2018, Pruitt Rexroad’s continued criminal conduct resulted in additional charges in Washington, Umatilla, and Hood River County Circuit Courts. He was repeatedly released from custody only to commit further crimes. Finally, on May 25, 2018, Hood River Police found Pruitt Rexroad and three others at the side of a road removing tires from a stolen vehicle. The officers arrested him after a short foot chase. Pruitt-Rexroad has been in custody ever since.

During sentencing, U.S. District Court Judge Michael W. Mosman ordered Pruitt Rexroad to pay $55,824 in restitution.

On October 7, 2019, Pruitt Rexroad pleaded guilty to one count each of access device fraud, aggravated identity theft, and possession of unauthorized access devices.

This case was investigated by the U.S. Postal Inspection Service with assistance from the Astoria Police Department, Clackamas County Sheriff’s Office, Clatsop County Sheriff’s Office, Forest Grove Police Department, Gearhart Police Department, Gresham Police Department, Hood River Police Department, Lake Oswego Police Department, Oregon City Police Department, Oregon State Police, Port of Portland Police Department, Portland Police Bureau, Redmond Police Department, Sandy Police Department, Washington County Sheriff’s Office, and West Linn Police Department. It was prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

PORTLAND, Ore.—U.S. Attorney Billy J. Williams and Oregon Attorney General Ellen Rosenblum today announced the formation of a state-federal partnership to protect Oregonians from COVID-19 fraud. Together, the two offices will share information and resources to prevent Oregonians from falling victim to scams and other schemes attempting to exploit the COVID-19 pandemic and public health emergency.

Both offices have civil and criminal enforcement authority and will continue to refer serious allegations regarding COVID-19-related scams, Medicaid fraud, and other consumer fraud to each other for state or federal enforcement, as appropriate. They will also work with other federal, state, local, and tribal partners throughout Oregon to help educate communities about emerging scams and fraud schemes, and share resources related to consumer complaints.

“While Americans work to protect themselves and their loved ones from the ongoing threat of COVID-19, some individuals are actively trying to profit off of the public health emergency. Scammers have devised numerous methods to defraud people, preying on individuals’ fear, emotion, and desire to protect themselves, their families, and their communities,” said U.S. Attorney Williams. “I am pleased to join Attorney General Rosenblum and the Oregon Department of Justice to announce our new consumer protection partnership. Oregonians should have confidence that our offices are doing everything in our power to prevent them from becoming the victim of COVID-19 fraud and abuse.”

“Fraudsters are operating in full force right now—especially preying on Oregonians who may have uncashed stimulus checks, pending unemployment claims, or who may be particularly vulnerable to health care-related scams, like unauthorized tests to detect the coronavirus. By working together with U.S. Attorney Williams, we can use the power of our positions and the resources of our two offices to make sure no Oregonian is taken advantage of. I look forward to working together and with our other wonderful state and local partners, like the new non-profit, Oregon Consumer Justice, who are helping us spread the word about—and put a stop to—COVID-related scams and frauds,” said Attorney General Rosenblum.

In particular, U.S. Attorney Williams and Attorney General Rosenblum encourage Oregonians to be on the lookout for:

• Testing scams—someone trying to sell you an unauthorized COVID-19 cure, vaccine, or testing kit or going door-to-door performing fake tests for money;
• Charity scams—scammers soliciting donations for individuals or areas affected by COVID-19 or charities purportedly working on behalf of COVID-19 victims;
• Price gouging scams—businesses marking up the price of essential consumer goods and selling them at higher prices than what the goods would normally be sold for;
• Identity scams—imposters pretending to be a government official asking you for personal identifying information, access to your bank or unemployment insurance account, or offering to help you access government benefits faster, including economic impact payments.

U.S. Attorney Williams and Attorney General Rosenblum will host a tele-town hall on May 12, 2020, focusing on scam and fraud identification and prevention. The event will be co-hosted by Oregon Consumer Justice and will be open to the public. Event details:

• Date: Tuesday, May 12, 2020
• Time: 10:00-11:00 PDT
• To participate, please dial: (855)-756-7520, Extension 60478#
• If you cannot attend this event live, a recording will be made available online at www.oregonconsumer.gov/COVID-19.

If you or someone you know have been the victim of one of the scams described above or any other COVID-19-related fraud, please contact the Oregon Department of Justice at 1-877-877-9392, or submit a tip online at www.oregonconsumer.gov. If you or someone you know are in immediate danger, please call 911.

PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Nelson Scott Gillis, 66, of Lake Oswego, Oregon, a former senior executive and chief financial officer of Aequitas Management, LLC, and several other Aequitas-owned entities, has been indicted for conspiring to submit false statements to a federally insured creditor in order to obtain $4.2 million for Aequitas as it struggled to survive in January 2016.

According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. To purchase the trade receivables, and for other purposes it fraudulently concealed, Aequitas solicited some investors through the issuance of promissory notes via the Aequitas Commercial Finance (ACF) Private Note program.

Aequitas also borrowed funds from other financial institutions to purchase trade receivables. One of these institutions was Wells Fargo Bank, N.A. On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. On or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitas’s behalf. To receive advances on this line of credit, Aequitas had to certify several things, including that it was not experiencing an “event of default” or “potential event of default” on more than $2.5 million in debt held by third parties.

In early January 2016, Gillis and other Aequitas executives were advised that Aequitas was already in default on Private Note obligations exceeding $2.5 million. Despite that advice, on or about January 15, 2016, Gillis signed and, with others, submitted to Wells Fargo an “advance notice,” requesting that Wells Fargo advance $4.2 million to Aequitas under the terms of their loan agreement. As part of this “advance notice”, Gillis certified that “no potential event of default or event of default has occurred or is occurring.”

Gillis faces a maximum sentence of 90 years in prison, fines of $3 million or twice the gross monetary gains or losses resulting from his crimes, and 5 years’ supervised release. He will be arraigned on May 15, 2020, before a U.S. Magistrate Judge.

This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore.—Bryan Scott Gunn, 45, of Victorville, California, was sentenced today to 63 months in federal prison and three years’ supervised release for orchestrating a fraud scheme that netted more than $344,000 from unknowing victims while he was on federal supervised release.

According to court documents, less than two weeks after completing a 22-month federal prison sentence for a similar fraud scheme, Gunn registered a new fictitious company called Legacy Funding Group. According to a website Gunn created, Legacy Funding Group was a financing company “with access to many private banking institutions and other professional relationships” that “specialized in structured asset based financing and equipment leasing.”

Gunn went to great lengths to make Legacy Funding Group appear legitimate, opening corresponding bank accounts, registering email addresses, falsely claiming to lease high-end commercial office space, and attempting to disassociate his true identity from the company. His scheme worked. In a matter of months, Gunn had successfully cheated 11 clients out of more than $344,000. Gunn convinced his victims, many of whom were in agriculture or agriculture-related industries, to pay him various upfront costs in order to obtain promised financing or loans.

Once he received his clients’ money, Gunn moved it between several bank accounts using cash, cashier’s checks, and temporary checks. His cash withdrawals alone exceeded $100,000. When his clients complained about the lack of financing and demanded their money be returned, Gunn referred them via email to a fictitious legal department. In the end, Gunn did not obtain any financing or loans for his clients and diverted all of their money to personal use.

During sentencing, U.S. District Court Judge Michael W. Mosman ordered Gunn to pay $363,453 in restitution to his victims.

On February 24, 2020, Gunn pleaded guilty to one count each of wire fraud and money laundering.

The case was investigated by IRS-Criminal Investigation and prosecuted by Scott E. Bradford, Assistant U.S. Attorney for the District of Oregon.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

PORTLAND, Ore.—Kelvin Valentino McDuffie, 34, of Supai, Arizona, pleaded guilty today for assaulting an in-custody defendant in the Hatfield Federal Courthouse in Portland.

“The safety of incarcerated persons in the custody of the Department of Justice is a top priority for federal law enforcement. The U.S. Marshals Service moved quickly to bring this case to our office so it could be swiftly prosecuted,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Assaults on inmates committed with a sexual motive will continue to be prioritized by our office for prosecution.”

“In this case the victim was subjected to abusive sexual contact without permission. Although her dignity was assaulted, it was not surrendered and I thank the U.S. Attorney and the victim for their steadfast pursuit of justice,” said Russel Burger, U.S. Marshal for the District of Oregon.

According to court documents, on July 26, 2019, Deputy U.S. Marshals escorted McDuffie, an adult female victim, and other male and female inmates into a prisoner elevator inside the federal courthouse. The male and female inmates were separated by a metal chain-link screen and McDuffie was restrained with handcuffs and a belly chain.

As the elevator arrived at a floor, McDuffie reached his fingers through the chain-link screen and struck the victim’s inner thigh and buttocks through her clothing with the intent to abuse, humiliate, harass, and degrade the victim and arouse and gratify his own sexual desire.

McDuffie was in the custody of the U.S. Marshals Service after being arrested in the District of Oregon for an alleged violation of the supervised release that had been imposed following a conviction for assaulting a federal officer in the District of Arizona.

On November 21, 2019, a federal grand jury in Portland returned a two-count indictment charging McDuffie with assault and abusive sexual contact. He pleaded guilty today to assault and will be sentenced on July 7, 2020 before U.S. District Court Judge Marco A. Hernandez. The U.S. Attorney’s Office expects to recommend a sentence of one year and one day in federal prison.

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

The U.S. Department of Justice and U.S. Attorney’s Office are committed to enforcing the Prison Rape Elimination Act (PREA). PREA was passed, unanimously, by Congress and signed into law in 2003. PREA required the development and promulgation of “national standards for the detection, prevention, reduction, and punishment of prison rape.” These standards, like the law mandating them, are intended to address a serious public safety, public health, and human rights problem—the incidence of sexual violence in our nation’s confinement facilities. To learn more about PREA, please visit:  https://bja.ojp.gov/program/prison-rape-elimination-act-prea/overview.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

PORTLAND—Every April, the Justice Department’s Office for Victims of Crime (OVC) leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW) to honor crime victims, promote their rights and recognize those who advocate on their behalf. This year’s observance takes place April 19-25, with the theme: Seek Justice | Ensure Victims’ Rights | Inspire Hope.

The U.S. Attorney’s Office joins its federal, state, local and tribal law enforcement partners in taking this opportunity to highlight the importance of providing necessary services at the earliest possible stage of victimization and litigation. Early intervention helps prevent further victimization and encourages victim involvement in the criminal justice system, mitigating the cycle of violence and restoring hope for the future.

“Protecting the rights and dignity of crime victims is central to our mission of ensuring the fair administration of justice. Crime victims are so much more than statistics—they are real people whose lives have been unfairly and, at times, tragically impacted by crime. The courage they demonstrate every day in courtrooms across the country is inspiring to many in law enforcement including myself,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I also want to recognize the bravery and perseverance of victim advocates from all levels of government and in non-profit organizations. They work tirelessly every day to create change and hope for victims in need.”

“While we have made tremendous progress driving down crime and violence across the country, far too many Americans continue to suffer the pain and loss of criminal victimization,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs, which oversees OVC. “This week, we stand by these survivors and their families, and we pledge our ongoing support to the countless men and women who serve them with such extraordinary skill and compassion.”

“Crime victims deserve to know that they have the encouragement and support of the American people,” said OVC Director Jessica E. Hart. “I hope that citizens throughout the nation will take the opportunity this week to remember all victims of crime and their heroic stories of survival. I encourage everyone to also find meaningful ways to express their appreciation to the many committed and compassionate service providers across the country who work tirelessly supporting these survivors.”

During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local, and tribal agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns.

OVC and the U.S. Attorney’s Office encourages widespread participation in the week’s virtual events and in other victim-related observances throughout the year. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please visit OVC’s website at www.ovc.gov.

Due to the ongoing COVID-19 pandemic, the Justice Department has announced that OVC’s National Crime Victims’ Service Awards Ceremony in Washington, D.C., held annually to honor outstanding individuals and programs that serve victims of crime, has been postponed. To be notified when a new date for this event is announced, please subscribe to OVC’s NCVRW email notifications at https://ovc.ncjrs.gov/ncvrw/subscribe/.

If you or someone you know are in immediate danger, please call 911. If you believe you’ve been the target or victim of a crime, please contact your local law enforcement agency or your nearest FBI field office immediately. The FBI Portland Field Office can be reached at (503) 224-4181 or by submitting tips online at tips.fbi.gov.

 

PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Beaverton, Oregon man has been charged with bank fraud in a scheme involving the impersonation of credit union employees in order to obtain members’ personal financial information.

Winston E. Gray, 30, has been charged by criminal complaint with bank fraud.

According to court documents, on March 30, 2020, a fraud investigator for Rivermark Credit Union in Portland contacted the Portland Police Bureau to report that numerous credit union members had received fraudulent text messages asking them to confirm or deny a recent transaction. When a victim member denied the transaction, they received a phone call from someone purporting to be a credit union employee asking for their debit card number and PIN in order to disable their card.

The personal financial information obtained was used to clone victims’ debit cards and make numerous purchases and ATM withdrawals throughout the Portland metro area. Using a list of fraudulent transactions provided by Rivermark, detectives from Portland Police Bureau and the Beaverton Police Department, with assistance from investigators with OnPoint Credit Union, Bank of America, Unitus Credit Union, and Fred Meyer, obtained video surveillance and photos of the unauthorized transactions from various ATMs and retail establishments.

Surveillance images of the suspect, later alleged to be Gray, were obtained from a Bank of America ATM on NW Cornell Road in Portland. On March 29, 2020, after making a balance inquiry on a victim member’s account, Gray made three consecutive withdrawals of $203 each from the ATM. Gray was later linked to a second fraudulent ATM withdrawal and two fraudulent money order purchases the same day.

As the investigation continued, detectives linked Gray to additional fraudulent transactions between March 30 and April 8, 2020 at locations throughout the Portland area. After reviewing body-worn camera footage from a previous traffic stop, detectives were able to positively identify Gray as the suspect responsible for the fraudulent bank transactions and obtain his home address.

On April 15, 2020, detectives obtained and served state search warrants on Gray’s Beaverton residence, person, and vehicle.

Detectives seized a Bluetooth card writer used to re-encode magnetic strips on credit cards; blank cards with magnetic strips; handwritten instructions on creating stolen identities and committing credit card fraud; multiple stolen credit cards, debit cards, and driver’s licenses; clothing matching those seen in the surveillance footage; more than $10,000 in cash; a 380 caliber handgun; a box of 380 caliber ammunition; and 26 grams of cocaine from Gray’s residence. Other related items were seized from his person and vehicle.

After conducting the searches, Gray was arrested without incident. Gray made his first appearance in federal court today and was ordered detained.

If convicted, Gray faces a maximum sentence of 30 years in federal prison, 5 years’ supervised release, and a $1 million fine.

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

This case was investigated by the Portland Police Bureau, Beaverton Police Department, and Homeland Security Investigations (HSI) and is being prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

PORTLAND—Today, U.S. Attorney Billy J. Williams and FBI Special Agent in Charge Renn Cannon denounced discrimination and acts of hate targeting Asian Americans, Pacific Islanders, Native Americans, and other racial and ethnic minorities and called on Oregonians to take steps to counter xenophobia throughout the state.

“During these challenging times, Oregonians must come together to stop the spread of both COVID-19 and racial bias,” said U.S. Attorney Williams. “It is categorically false that certain groups of people are more susceptible to carrying the virus based on their real or perceived race or ethnicity. Spreading these untruths puts communities at risk of real physical harm and must stop.”

“The FBI stands watch over all Americans. One of our top priorities is investigation of federal civil rights crimes against any person, including Asian Americans or individuals from East Asian countries,” said Special Agent in Charge Cannon. “We will use all authority granted under federal law to hold those who commit hate crimes accountable.”

The Justice Department will prosecute hate crimes and violations of anti-discrimination laws against Asian Americans, Pacific Islanders, Native Americans, and others to the fullest extent of the law. Attorney General William Barr and Assistant Attorney General for Civil Rights Eric Dreiband have called upon department prosecutors throughout the country to watch for hate-motivated acts of violence.

U.S. Attorney Williams and Special Agent in Charge Cannon urged Oregonians to take the following steps to protect racial and ethnic minority community members from bias and hate:

• Use language supported by public health officials when referring to the global pandemic and the precipitating virus—World Health Organization (WHO) officials have recommended using “coronavirus disease 2019” or “COVID-19” as appropriate descriptors.
• Disseminate accurate COVID-19 information within professional and social networks—U.S. Government officials have warned the public about widespread misinformation and disinformation related to the COVID-19 pandemic. Avoid spreading inaccurate information by relying on trusted sources for news and public health guidance. Examples include: the Centers for Disease Control and Prevention (CDC.gov), the WHO (WHO.int), and the Oregon Health Authority (Oregon.gov/OHA).
• Encourage people you know to report all incidents of bias and hate—There is a significant disparity between hate crimes that actually occur and those reported to law enforcement. It is critical to report hate crimes not only to show support for the individual(s) directly impacted, but also to send a clear message that the community will not tolerate these kinds of crimes. Reporting also enables law enforcement to fully understand the scope of the problem in a community and assign resources toward preventing and addressing crimes of bias and hate.

On March 18, 2020, U.S. Attorney Williams announced the appointment of a COVID-19 civil rights coordinator to lead investigations into known and suspected hate crimes and civil rights violations related to the nation’s ongoing public health emergency.

If you or someone you know are in immediate danger, please call 911. If you believe you’ve been the target or victim of a hate crime or other violation of your civil rights, please contact the FBI Portland Field Office by calling (503) 224-4181 or submitting a tip online at tips.fbi.gov.

The U.S. Attorney’s Office COVID-19 civil rights coordinator will be notified of tips submitted via the above reporting methods.

PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Beaverton, Oregon man has been charged for his role in one of the largest tax evasion schemes ever prosecuted in the District of Oregon. In this multiyear scheme, contracting companies, subcontracting companies, and their employees evaded more than $65 million in employment and income taxes owed to the IRS.

Victor Hugo Lopez-Diaz, 38, was charged by criminal information with one count of conspiring to commit tax evasion and two counts of filing false tax returns.

“Evading the payment of Medicare, Social Security, and income taxes harms every citizen,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “All business owners and their employees must file accurate tax returns with the IRS and pay all taxes required by law. Those who fail to do so will face significant consequences, including criminal prosecution, prison, and monetary penalties.”

“Employers that willfully concoct elaborate schemes to evade paying employment taxes will be held accountable by the Internal Revenue Service,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “This type of fraud does not go unnoticed by our investigators. Fraud of this variety not only impacts honest taxpayers, but significantly impacts honest competitors who follow the rules. Businesses that seek an unfair competitive advantage by cheating the Treasury of payroll taxes will always be a high priority for IRS-Criminal Investigation.”

According to court documents, from at least 2014 through February 2018, Lopez-Diaz and his conspirators are alleged to have successfully evaded their personal and employment tax obligations by cashing approximately $185 million in payroll checks at a co-conspirator’s check cashing business; using the cash to pay construction workers under the table; and filing false corporation, payroll, and individual tax returns.

Lopez-Diaz and some of his co-conspirators established subcontracting companies to facilitate their tax evasion conspiracy. Along with the owners and operators of local contracting companies, they knowingly hired unlicensed work crews, paid them cash under the table, and evaded payroll taxes by not putting the workers on their regular payroll systems.

Throughout the conspiracy, Lopez-Diaz also functioned as a payroll check casher for other companies. He used an alias, Miguel Lopez, to cash payroll checks and conceal his identity and gave the cash received to the leaders of off-the-books work crews and to contractors who used the cash to pay other employees surreptitiously.

Lopez-Diaz’s first appearance in federal court is scheduled for April 21, 2020.

If convicted, Lopez-Diaz faces a maximum sentence of 11 years in federal prison, three years’ supervised release, and $750,000 in fines.

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

This case is being investigated by IRS-Criminal Investigation and prosecuted by Seth D. Uram and Gavin W. Bruce, Assistant U.S. Attorneys for the District of Oregon.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

PORTLAND—This week, the Department of Justice announced that it is making $850 million available to help public safety agencies respond to the challenges posed by the outbreak of COVID-19. State, local and tribal law enforcement agencies in Oregon are eligible to receive nearly $10 million in supplemental funding.

The Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation passed by the Congress and signed by President Trump, will allow eligible state, local and tribal governments to apply immediately to receive these critical funds. The department is moving quickly to make awards, with the goal of having funds available within days.

“In a matter of weeks, I have seen countless examples from across our state and country of law enforcement officers and other public safety professionals going far above and beyond their regular duties to serve our communities in this time of great need,” said U.S. Attorney Billy J. Williams. “I’m pleased to join the department in announcing this much needed funding and will do everything in my power to expedite its distribution to eligible law enforcement agencies here in Oregon.”

“This is an unprecedented moment in our nation’s history and an especially dangerous one for our front-line law enforcement officers, corrections officials, and public safety professionals,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are grateful to the Congress for making these resources available and for the show of support this program represents.”

The solicitation, posted by the Bureau of Justice Assistance in the Justice Department’s Office of Justice Programs (OJP), will remain open for at least 60 days and be extended as necessary. OJP will fund applicants on a rolling basis as applications are received. Funds may be used to hire personnel, pay overtime costs, purchase protective equipment and supplies, address correctional inmates’ medical needs and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to Jan. 20, 2020, subject to federal supplanting rules.

2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program recipient agencies are candidates for direct emergency funding. A complete list of jurisdictions eligible for direct funding and their allocations can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.

Jurisdictions not eligible for direct funding are advised to contact the Oregon Criminal Justice Commission to determine how they can receive funding through the state distribution.

For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://www.ojp.gov/.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

PORTLAND—U.S. Attorney Billy J. Williams announced today that the Department of Justice is requesting local nominations for the fourth annual Attorney General’s Award for Distinguished Service in Policing. The nomination period is open now and will close on Friday, April 24, 2020 at 5pm PDT.

The Attorney General’s Award for Distinguished Service in Policing recognizes state, local, or tribal sworn, rank-and-file police officers, deputies, and troopers for exceptional efforts and innovations in community policing, criminal investigations, and field operations.

“Law enforcement is the toughest job in America. The challenges our officers face on a daily basis are more complex, more difficult, and more extensive than ever before,” said Attorney General William P. Barr. “We are grateful for every man and woman in blue for their dedication and sacrifice. Among those who have answered the call of public service, several individuals in the past year performed in ways that surpassed even the highest expectations of the profession. I look forward to recognizing these individuals with the fourth annual Attorney General’s Award for Distinguished Service in Policing.”

“Serving alongside state, local, and tribal law enforcement officers, deputies, and troopers in Oregon has been the highest honor of my career,” said U.S. Attorney Williams. “It is entirely fitting that we should recognize the sacrifices they make on a daily basis to keep our communities safe and protect the rights we hold dear as Americans. I look forward to joining Attorney General Barr in recognizing the recipients of this distinguished award.”

Nominations may be submitted by the potential recipient’s supervisors, coworkers, or members of their local community. Nominations may include references and URL links to news sources and promotional or other materials that describe or substantiate the activity, program, or initiative for which the nominee is being nominated. Please note: nominees must have been in a non-supervisory position at the time the nominated event, activity, and/or program occurred to be an eligible candidate for this award.

Nominations must be submitted through an online form. The online application will direct the nominating individuals to complete the following fields:

1. Name and rank of nominee(s) (must be rank-and-file officers, deputies, or troopers in a nonsupervisory position), the lead agency name, and the size of population served by the agency
2. Name and affiliation of the nominating individual
3. Nomination category for the action(s), program(s), or initiative(s) for which the nominee(s) is being nominated (Criminal Investigations, Field Operations, or Innovations in Policing)
4. A detailed description of the specific action(s), program(s), or initiative(s) of the nominee(s) for which s/he is being nominated
5. Agency point of contact information

Nominations must be submitted by 5pm PDT on Friday, April 24, 2020. In the event that agencies or other nominating parties are unable to access the online nomination form, nomination letters may be sent via email. The nomination letter should be no longer than three pages and should include all of the fields listed above. Nominations submitted in letter format must be sent via email to dojpolicingawards@usdoj.gov by 5pm PDT on Friday, April 24, 2020.

Detailed information regarding the nomination process for this award is available at www.justice.gov/ag/policing-award.

Please direct all general inquiries to dojpolicingawards@usdoj.gov.

PORTLAND, Ore.—Jonathan David Murphy, 42, of The Dalles, Oregon, was sentenced today to seven years in federal prison and five years’ supervised release for transporting and possessing child pornography.

According to court documents, in 2017, local and federal law enforcement conducted undercover investigations of online peer-to-peer file sharing programs being used to exchange images of child pornography. Three separate investigations led investigators to an internet protocol (IP) address registered to a home Murphy shared with his fiancée in The Dalles.

In June 2018, investigators executed a federal search warrant at the residence and Murphy consented to an interview. Murphy admitted to using uTorrent, a peer-to-peer file sharing network, to download and share child pornography.

On February 27, 2020, Murphy pleaded guilty to one count each of transportation and possession of child pornography. After his release from prison, Murphy will be required to register as a sex offender.

This case was investigated by the FBI with assistance from the Wasco County Sheriff’s Office and was prosecuted by Natalie Wight, Assistant U.S. Attorney for the District of Oregon.

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.

PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Gresham, Oregon man has been indicted for stealing financial and identification documents from dozens of people throughout the Portland Metropolitan Area.

Robert Loren Finanders, 39, is charged in a nine-count indictment unsealed today with aggravated identity theft, counterfeit access device fraud, illegal possession of device-making equipment, and felon in possession of a firearm.

According to court documents, for at least the last year, Finanders is alleged to have stolen financial and identification documents for approximately 100 people in order to steal money from them and from local businesses. Investigators believe Finanders spent tens of thousands of dollars using stolen credit cards and other personal information. Some of the stolen identities appear to have been obtained by breaking into cars to steal wallets and purses.

The Portland Police Bureau’s (PPB) East Precinct Street Crimes Unit began investigating Finanders in late September 2019 after a fraudulent Oregon driver’s license in the name of an adult victim was found 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 ordering food at restaurant using a stolen credit card.

Bend police searched a vehicle being 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. While searching a Bend hotel room shared by Finander and his co-conspirator, officers recovered W2s in the name of another victim and a victim profile notebook.

As the investigation continued, PPB officers linked Finanders to additional identity theft crimes in Portland, Gresham, and Lake Oswego, Oregon. On January 22, 2020, a search warrant was executed at a residence shared by Finanders and his co-conspirator. Officers seized stolen profiles for 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; evidence of drug trafficking; and other items.

On March 12, 2020, a federal grand jury in Portland indicted Finanders in a sealed nine-count indictment. On April 1, 2020, he was arrested by PPB. Finanders made his first appearance in federal court today. A three-day jury trial scheduled to begin on June 2, 2020. The magistrate court took under advisement the issue of whether to detain Finanders pending trial.

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.

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

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of the department at www.Justice.gov/Celebrating150Years.

PORTLAND—Today, U.S. Attorney Billy J. Williams warned of several new fraud schemes seeking to exploit the evolving coronavirus public health emergency by targeting vulnerable populations.

Scammers have already devised numerous methods for defrauding people in connection with COVID-19. They are setting up websites, contacting people by phone and email, and posting disinformation on social media platforms. Some examples of scams linked to COVID-19 include:

• Testing scams: Scammers are selling fake at-home test kits or going door-to-door performing fake tests for money.
• Treatment scams: Scammers are offering to sell fake cures, vaccines, and advice on unproven treatments for COVID-19.
• Supply scams: Scammers are creating fake shops, websites, social media accounts, and email addresses claiming to sell medical supplies currently in high demand, such as surgical masks. When consumers attempt to purchase supplies through these channels, fraudsters pocket the money and never provide the promised supplies.
• Provider scams: Scammers are contacting people by phone and email, pretending to be doctors and hospitals that have treated a friend or relative for COVID-19, and demanding payment for that treatment.
• Charity scams: Scammers are soliciting donations for individuals, groups, and areas affected by COVID-19.
• Phishing scams: Scammers posing as national and global health authorities, including the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending phishing emails designed to trick recipients into downloading malware or providing personal identifying and financial information.
• App scams: Scammers are creating and manipulating mobile apps designed to track the spread of COVID-19 to insert malware that will compromise users’ devices and personal information.
• Investment scams: Scammers are offering online promotions on various platforms, including social media, claiming that the products or services of publicly traded companies can prevent, detect, or cure COVID-19, and that the stock of these companies will dramatically increase in value as a result. These promotions are often styled as “research reports,” make predictions of a specific “target price,” and relate to microcap stocks, or low-priced stocks issued by the smallest of companies with limited publicly available information.

The U.S. Attorney’s Office urges Oregonians to take the following precautionary measures to protect themselves from known and emerging scams:

• Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
• Check the websites and email addresses offering information, products, or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”
• Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the general public this way.
• Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device.
• Make sure the anti-malware and anti-virus software on your computer is operating and up to date.
• Ignore offers for a COVID-19 vaccine, cure, or treatment. Remember, if there is a medical breakthrough, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
• Check online reviews of any company offering COVID-19 products or supplies.  Avoid companies whose customers have complained about not receiving items.
• Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving. Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials. For online resources on donating wisely, visit the Federal Trade Commission (FTC) website.
• Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail. Don’t send money through any of these channels.
• Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus. If you decide to invest, carefully research the investment beforehand.  For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.
• For the most up-to-date information on COVID-19, visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites.

On March 19, 2020, U.S. Attorney Williams announced the appointment of a COVID-19 fraud coordinator to lead investigations into known and suspected occurrences of financial fraud related to the nation’s ongoing public health emergency.

If you or someone you know believe you’ve been the target or victim of an outbreak-related fraud scheme, please contact the FBI’s Internet Crime Complaint Center (IC3) by visiting www.IC3.gov. If you or someone you know are in immediate danger, please call 911.

The U.S. Attorney’s Office COVID-19 fraud coordinator will be notified of tips submitted via the above reporting method.

PORTLAND—Today, U.S. Attorney Billy J. Williams announced a series of steps aimed at protecting consumer financial safety and preventing civil rights violations amidst the coronavirus outbreak.

U.S. Attorney Williams has appointed COVID-19 fraud and civil rights coordinators to lead investigations into known and suspected occurrences of consumer financial fraud and civil rights violations resulting from the nation’s ongoing public health emergency.

“We are aware of instances of consumer fraud and civil rights violations stemming from the COVID-19 public health emergency,” said U.S. Attorney Williams. “While Americans work to protect themselves and their loved ones from the threat of COVID-19, some individuals are actively trying to profit off of this emergency. Equally concerning,” Williams continued, “we have received reports of alleged civil rights violations stemming from the false belief that certain groups of people are more susceptible to carrying or contracting the virus based on their real or perceived race, ethnicity, employment or other demographic characteristics.”

If you or someone you know believe you’ve been the target or victim of an outbreak-related fraud scheme, please contact the FBI’s Internet Crime Complaint Center (IC3) by visiting www.IC3.gov. Crime tips of any kind, including alleged civil rights violations, can be submitted by visiting tips.fbi.gov or calling the FBI Portland Field Office at (503) 224-4181. If you or someone you know are in immediate danger, please call 911.

The U.S. Attorney’s Office COVD-19 fraud and civil rights coordinators will be notified of tips submitted via any of the above reporting methods.

On March 13, 2020, Chief U.S. District Court Judge Marco A. Hernandez issued Standing Order 2020-4, Court Operations in Response to COVID-19. Under the order, most district court proceedings are continued or will be resolved via telephone or video conference. Case-by-case exceptions to this guidance will be considered by the applicable presiding judge after consultation with counsel. The court’s standing order will remain in effect until vacated or amended.

The U.S. Attorney’s Office has taken necessary precautions to protect the health and safety of its staff during this health emergency while continuing to fulfill its public safety mission. Essential law enforcement functions including investigations, the signing and execution of warrants, filing of charges, and case litigation will continue. District of Oregon prosecutors and support staff will continuing working with federal, state, local and tribal law enforcement partners to safeguard our justice system and protect the safety and security of our nation during this difficult time.

“We are immensely grateful for the many public health and medical professionals and first responders on the front lines of protecting our communities from the novel coronavirus,” said U.S. Attorney Williams, “During this time of uncertainty and fear, it is more important than ever that all Americans look out for one another, act out of compassion and generosity, and look for opportunities to help their neighbors. Likewise, federal law enforcement will continue doing our part to keep our communities safe.”

PORTLAND, Ore.— Karanjit Singh Khatkar, 23, and Jagroop Singh Khatkar, 24, residents of Surrey, British Columbia, Canada, were sentenced today to 24 months in federal prison and three years’ supervised release for conspiring to commit wire fraud and money laundering in a scheme to steal bitcoin from an Oregon resident.

According to the indictment, beginning in October 2017 and continuing until August 2018, the defendants used a Twitter account with the name @HitBTCAssist to trick victims into thinking they were communicating with a customer service representative from HitBTC, a Hong Kong-based online platform used to exchange virtual currency. HitBTC provides its customers with web-based “wallets” to store virtual currency and make transactions.

Using the fraudulent Twitter account, the defendants responded to the Oregon victim’s questions about withdrawing virtual currency from her HitBTC account. The defendants convinced the victim to send information they could use to log on and take over her email, HitBTC and Kraken accounts. Kraken is a U.S.-based online platform that offers services similar to HitBTC.

The defendants initiated transfers of 23.2 bitcoins from the victim’s HitBTC account to Karanjit Khatkar’s Kraken account. Karanjit Khatkar in turn transferred approximately 11.6 in stolen bitcoins to Jagroop Khatkar’s Kraken account.

Two days after illegally accessing the victim’s account, Karanjit Khatkar bought a Mercedes-Benz with $56,598 in Canadian dollars. The Khatkars also traveled to casinos. Karanjit Khatkar gambled with tens of thousands of dollars while staying at high-end casinos in Las Vegas, Nevada.

On July 18, 2019, Karanjit Khatkar was arrested upon arrival at the McCarran International Airport in Las Vegas and later ordered detained pending trial. Jagroop Khatkar appeared voluntarily for his arraignment and change of plea on December 16, 2019.

On December 16, 2019, the Khatkars pleaded guilty to conspiring to commit wire fraud and money laundering. As mandated by their plea agreements, the Khatkars delivered a check of $142,349 as a prepayment of restitution to their victim at their change of plea hearing.

At sentencing, the Khatkars were ordered to pay an additional $42,162 to their victim for a total restitution order of $184,511.

This case was investigated by FBI and prosecuted by Quinn P. Harrington and Julia E. Jarrett, Assistant U.S. Attorneys for the District of Oregon.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of the department at www.Justice.gov/Celebrating150Years.

PORTLAND, Ore.—A Warm Springs man has been charged with sexually abusing a minor victim nearly three decades ago on the Warm Springs Indian Reservation.

According to an indictment unsealed today, between January 1993 and January 1998, Austin Smith Sr., 69, a member of the Confederated Tribes of Warm Springs, is alleged to have knowingly engaged in abusive sexual contact with a minor under 12 years old.

Smith is charged with two counts each of abusive sexual contact and sexual abuse and three counts of aggravated sexual abuse. If convicted, he faces a maximum sentence of life in prison.

Smith was arrested on the Warm Springs Indian Reservation and made an initial appearance today in federal court. He was detained pending a six-day jury trial scheduled to begin on May 12, 2020 before U.S. District Court Judge Robert E. Jones.

This case was investigated by FBI Portland’s Safe Trails Task Force and the Warm Springs Tribal Police Department and is being prosecuted by U.S. Attorney’s Office for the District of Oregon.

Investigators are seeking the public’s help to identify additional potential victims who may have had contact with Smith. If you have any reason to believe you or someone you know may be a victim or have additional information about other potential crimes involving this defendant, please contact the FBI at (503) 224-4181 or submit a tip online at https://tips.fbi.gov.

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

The Safe Trails Task Force (STTF) unites FBI with federal, state, local, and tribal law enforcement agencies in a collaborative effort to combat the growth of crime in Indian Country. STTF allows participating agencies to combine limited resources and increase investigative coordination in Indian Country to target violent crime, drugs, gangs, and gaming violations.

FORT LAUDERDALE, Fla.—A federal criminal complaint has been unsealed charging three Florida men affiliated with the “Felony Lane Gang” national criminal organization for their roles in a bank fraud scheme targeting female victims in the Portland, Oregon Metropolitan Area.

Delvin Mills, 26, and Treveon Jordan, 22, both of Lauderdale Lakes, Florida, and Damian Fletcher, 26, of Fort Lauderdale, each face charges of conspiracy to commit bank fraud, bank fraud, and aggravated identity theft.

According to the complaint, Mills, Jordan, and Fletcher are members of the Felony Lane Gang, an interstate criminal organization based in Florida that travels to locations throughout the U.S. to commit vehicle break-in and fraud sprees.

Members of the organization appear to target female victims who leave their purses, wallets, and valuables in parked vehicles. After victims exit their vehicles—often to drop off children, run errands, or visit a gym—Felony Lane Gang members quickly break into the vehicle, steal targeted items, and drive away. After stealing purses or wallets, the gang members quickly deploy associates to conduct fraudulent bank or merchant transactions using stolen forms of identification, checks, and credit or debit cards before the victim can alert financial institutions.

The local investigation began after a special agent with Homeland Security Investigations (HSI) learned of a vehicle break-in and theft in Tigard, Oregon. Witnesses allege seeing a man break into a vehicle, steal a victim’s wallet and belongings, and flee in a Jeep Compass sport utility vehicle. During a review of records, Tualatin Police Department, the responding law enforcement agency, learned Jordan had rented the Jeep at Portland International Airport (PDX) one week before the break-in.

With this information, the HSI Special Agent located video surveillance footage of Jordan renting and returning the Jeep at PDX. Jordan appeared to rent the vehicle by himself and return it with two other individuals later identified as Mills and Fletcher. After returning the vehicle, Jordan and Fletcher boarded a flight from PDX to Denver, Colorado. To date, investigators do not know what flight Mills boarded or if he was flying under an assumed name.

The HSI Special Agent later learned that the Jeep had been parked at motel in Northeast Portland during Jordan’s rental period. Further investigation revealed that Mills and Jordan were frequent visitors and usually stayed with an older female. Mills, Jordan and the female, later identified as Linda Marie Lupo, 51, of Deerfield, Florida, had rented rooms at the motel on eight prior occasions over a period of five months.

As the investigation unfolded, HSI began linking the group and the Jeep Compass rental vehicle to numerous unsolved car thefts and instances of bank fraud throughout the Portland area. Lupo and another linked individual, Megan Spurlock, 25, a Washington State resident, were identified as associates of the gang responsible for conducting fraudulent bank and merchant transactions using victims’ stolen bank cards and identification.

To date, this investigation has identified 32 car thefts committed during Mills, Jordan, and Fletcher’s most recent known Oregon crime spree. The thefts occurred in Lake Oswego, West Linn, Tualatin, Clackamas, Happy Valley, Salem, Corvallis, Albany, Springfield, and Beaverton, Oregon, and Vancouver, Washington. In one instance, a handgun was stolen and has not been recovered. The estimated total loss to victims, including banks, during this crime spree exceeds $100,000.

Jordan and Fletcher were arrested on March 9, 2020 in Florida and made their first appearances in federal court in Fort Lauderdale the same day. Detention hearings for both will be held on March 12, 2020 in Fort Lauderdale. Mills is in custody in Florida where he faces local charges. He is expected to make his first appearance in federal court and be transferred to the District of Oregon at a later date.

Lupo and Spurlock are charged with multiple counts of bank fraud and aggravated identity theft in a separate criminal case. Both are in custody and awaiting a four-day jury trial scheduled to begin on April 14, 2020.

This case was investigated by HSI with assistance from the West Linn Police Department, Tualatin Police Department, and Clark County Sheriff’s Office. It is being prosecuted by Quinn P. Harrington, 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.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of the department at www.Justice.gov/Celebrating150Years.

Criminal Complaint

 

PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that the leader of a Salem-area drug distribution network was sentenced to federal prison for his role in a conspiracy to distribute methamphetamine and cocaine in and around Salem, Oregon.

Isaias Alvarado, 38, a Mexican citizen residing in Salem, was sentenced to 120 months in federal prison and five years’ supervised release.

According to court documents, the arrest and prosecution of Alvarado and his associates has significantly disrupted the distribution of methamphetamine and cocaine in the Salem area. Alvarado along with his brother and co-defendant, Isaac Alvarado, 33, also of Salem, were part of a distribution network that purchased drugs in Los Angeles, California for redistribution in Salem. Investigators believe the network had recently begun expanding their operations to include heroin distribution.

On June 13, 2017, investigators conducted a federal search warrant on Alvarado’s Salem residence. The search yielded approximately 1.2 kilograms of methamphetamine, a digital scale, four cell phones, night vision goggles, and bulk ammunition. Investigators also seized five firearms from Alvarado’s bedroom: a Springfield Armory AR-15, a Zastava Arms AK-47, a Remington 12-gauge shotgun, a Century Arms 7.62 x 39mm caliber rifle, a CZ 9mm caliber rifle. Alvarado was arrested without incident.

On May 8, 2019, Alvarado pleaded guilty to one count of conspiring to possess with intent to distribute methamphetamine. During sentencing, U.S. District Court Judge Robert E. Jones ordered Alvarado to forfeit the five firearms seized.

On March 7, 2019, Isaac Alvarado pleaded guilty to one count of possession with intent to distribute methamphetamine. He will be sentenced on March 25, 2020. Seven other members of the Alvarados’ distribution network have been sentenced for related offenses. Sentenced defendants include:

• Luis Ramirez-Valderrama, 42, of Salem—97 months in prison and five years’ supervised release
• Manuel Garcia, 33, of Salem—78 months in prison and five years’ supervised release
• Ruben Rosas-Lozana, 32, a Mexican national residing in Salem—48 months in prison and three years’ supervised release
• Juan Francisco Viveros-Rivera, 34, a Mexican national residing in Salem—40 months in prison and three years’ supervised release
• Christopher Robin Diebel, 40, of Salem—36 months in prison and three years’ supervised release
• Nichole Breanna Smiley, 36, of Salem—time served in prison and five years’ supervised release
• Miguel Angel Garnica-Martinez, 32, of Salem—time served in prison and five years’ supervised release

This case was investigated by the U.S. Drug Enforcement Administration and was prosecuted by Kemp Strickland, Assistant U.S. Attorney for the District of Oregon.

This case was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the department’s strategy for reducing the availability of drugs in the U.S. OCDETF was established in 1982 to mount a comprehensive attack on drug trafficking by disrupting and dismantling major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in coordination with state and local law enforcement.

PORTLAND, Ore.—A southern California man who owned and operated local compounding pharmacies has been indicted by a federal grand jury on allegations that he submitted dozens of fraudulent patient attestations in support of reimbursement claims to CVS Caremark, a national pharmacy benefit manager.

Matthew Hogan Peters, 36, of Dana Point, California, made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman. The court unsealed a two-count indictment charging Peters with health care fraud and aggravated identity theft.

According to the indictment, Peters owned and operated Professional Center 205 Pharmacy and Portland Professional Pharmacy, compounding pharmacies located in Southeast Portland. The pharmacies filled prescriptions for, among other things, compounded pain creams, a lucrative line of products. Private and federal healthcare insurance programs reimburse compounding pharmacies for such creams at rates far higher than comparable over-the-counter or bulk-manufactured medications.

CVS Caremark administered prescription drug benefits for many patients the pharmacies served. From April 1, 2014, through May 15, 2015, Peters sought reimbursements of more than $3.4 million from CVS Caremark, which in turn paid him nearly $1.69 million. In mid-2015, CVS Caremark audited Professional Center Pharmacy’s claims for reimbursement and identified approximately 185 claims that lacked records proving customers’ receipt of medications.

Facing possible suspension from CVS Caremark’s network, Peters submitted documentation to explain the discrepancies identified in the audit. This documentation included 41 written attestations, each purporting to bear the electronic signature of an individual patient, confirming that the patient received the prescription in question. Peters is alleged to have created each of their electronic signatures himself.

Peters was released pending a four-day jury trial scheduled for May 5, 2020, before Chief U.S. District Court Judge Marco A. Hernandez.

This case was investigated by the FBI, the Offices of Inspectors General for the Departments of Health and Human Services and Labor, the United States Postal Service Office of Inspector General, the United States Postal Inspection Service, and the Defense Criminal Investigative Service. It is being prosecuted by Ryan W. Bounds and Seth D. Uram, Assistant U.S. Attorneys, and Elizabeth Ballard Colgrove, Special 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 year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

PORTLAND, Ore.—John James Shore, IV, 55, of Beaverton, Oregon, pleaded guilty today to one count of distributing child pornography.

According to court documents, the government’s investigation revealed that Shore used BitTorrent, a peer-to-peer file sharing program, to acquire and distribute child pornography. The program allowed others to freely download Shore’s child pornography from his computer. Investigators from the Benton County Sheriff’s Office identified the Internet Protocol (IP) address for Shore’s home as a source of child pornography and downloaded 350 gigabytes of data from the address between February and July 2018.

In October 2018, FBI agents and task force officers executed a search warrant on Shore’s Beaverton home and seized a personal computer. During an interview shortly after the search, Shore admitted to downloading and watching child pornography.

Shore faces a maximum sentence of 20 years in prison, a $250,000 fine and a life term of supervised release. He will be sentenced on June 8, 2020 before U.S. District Court Judge Karin J. Immergut.

The U.S. Attorney’s Office has recommended that Shore pay restitution in full to his victims as determined and ordered by the court at sentencing. Shore has agreed to forfeit the personal computer used to facilitate his crime.

This case was investigated by the FBI with assistance from the Benton County Sheriff’s Office and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.

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

Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember these materials depict 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.

PORTLAND, Ore.—On Monday, March 2, 2020, Gary Peck, 44, of Clark County, Washington, was sentenced to 36 months in federal prison and 3 years’ supervised release for his role in a credit card fraud ring that operated in the greater Portland metropolitan area from February 2017 to February 2018.

Peck is the tenth and final defendant sentenced for crimes associated with the scheme. The scheme’s leader and organizer, Jonathan Dominic Coons, 41, of Vancouver, Washington, was sentenced on January 25, 2019, to 75 months in federal prison and three years’ supervised release.

According to court documents, to facilitate the scheme, Coons, Peck, and their co-conspirators manufactured more than 1,100 counterfeit credit and debit cards and used them throughout Oregon, Washington, and Idaho. To create the counterfeit cards, the group embossed stolen credit card and other identifying information on gift cards purchased or stolen from local stores. The majority of stolen information used by the group belonged to individuals residing in Canada and Australia.

The group used the counterfeit credit and debit cards to purchase various items including hotels, rental cars, and merchandise they would in turn sell online or trade for illegal narcotics. The group would organize “shopping” trips, working their way along Interstate 5 and stopping at various shopping centers to use the counterfeit cards. They structured these trips to maximize their use of the cards and avoid detection by law enforcement.

During the investigation, local law enforcement officers obtained and executed a search warrant on Peck and co-defendant Dawn Szabo’s shared residence. Like Peck, Szabo, 42, also of Clark County, had extensive involvement in the scheme and participated in many of the group’s “shopping” trips. Their residence was used as a flophouse where the co-conspirators planned the scheme, manufactured the counterfeit cards, and used drugs.

Sentenced defendants include:

• Jonathan Dominic Coons—75 months in prison and three years’ supervised release
• Mikayla Brewington, 26, of Clark County—54 months in prison and three years’ supervised release
• Samantha Rudd, 25, of Multnomah County, Oregon—54 months in prison and three years’ supervised release
• Dawn Szabo—52 months in prison and three years’ supervised release
• Bryce Sfetku, 30, of Clark County—48 months in prison and three years’ supervised release
• Sarah Epley, 42, of Multnomah County—36 months in prison and three years’ supervised release
• Courtney Foster, 36, of Multnomah County—36 months in prison and three years’ supervised release
• Gary Peck—36 months in prison and 3 years’ supervised release
• Kevin Leighty, 36, of Multnomah County—30 months in prison and three years’ supervised release
• Kimberly Patterson, 33, of Multnomah County—24 months in prison and three years’ supervised release

This case was investigated by the Vancouver Police Department with the assistance of Homeland Security Investigations (HSI), and prosecuted by Rachel K. Sowray and Scott E. Bradford, Assistant U.S. Attorneys for the District of Oregon.

If you or someone you know believes you have been the victim of an identity theft crime, please contact HSI at (866) 347-2423. You can also submit a tip online by visiting: www.ice.gov/webform/hsi-tip-form.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

PORTLAND—U.S. Attorney Billy J. Williams joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale today in announcing the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.

Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting nearly 10% of older Americans every year. Together with our federal, state, local, and tribal partners, the U.S. Attorney’s Office for the District of Oregon is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, victim services, and public awareness.

“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the Department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The Department is committed to stopping the full range of criminal activities that exploit America’s seniors.”

“Victims of all ages lose billions of dollars annually to fraud schemes and the elderly fall victim to these schemes at far greater rates than the rest of the population. We all need to be vigilant in protecting our own finances, but we also need to watch out for our elderly friends and love ones. Intercede when you learn that a friend or family member is contemplating sending money to someone who has contacted them by telephone or online. Your vigilance will make a difference,” said U.S. Attorney Williams. “Federal law enforcement will continue to do everything we can to stop these bad actors before they can victimize more Americans.”

This interactive map provides information on the elder fraud cases highlighted by today’s sweep announcement.

Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).

For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.

These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.

The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

PORTLAND, Ore.—Lozaro Sopo Lopez, 26, of Miami, Florida, was sentenced today to 40 months in federal prison and three years’ supervised release for his role in a large scheme to defraud banks located in Oregon and elsewhere of more than $900,000.

Sopo Lopez is the seventh defendant sentenced for crimes associated with the scheme beginning in at least January 2017 and continuing until January 2018. Two other co-conspirators have been indicted in the District of Oregon for related criminal conduct, but remain at large.

According to court documents, Sopo Lopez and his co-conspirators recruited individuals to deposit fraudulent checks at various banks. These individuals—referred to as “mules”—were given checks with their names typed or written on them and driven to banks to attempt deposits. Sopo Lopez and his co-conspirators instructed the individuals to use coded messages to communicate their success or failure at the banks.

When the co-conspirators received proceeds from the fraudulent deposits, they would make cash deposits into Florida-based bank accounts. These deposits were structured to avoid detection by law enforcement. Shortly thereafter, other co-conspirators withdrew the cash in Florida. In total, the scheme resulted in an estimated loss of at least $911,444 to various banks and credit unions in Oregon and Washington.

Sentenced defendants include:

• Arley Gonzalez, 34, of Miami, Florida—57 months in prison, three years’ supervised release, and a $64,460 forfeiture money judgement
• Antonio Conde Cabrera, 35, of Miami, Florida—41 months in prison, five years’ supervised release, and a $151,810 forfeiture money judgement
• Miguel Betancourt, 39, of Miami, Florida—33 months in prison, three years’ supervised release, and a $40,820 forfeiture money judgement
• Luis Chavez, 47, of Miami, Florida—39 months in prison, three years’ supervised release, and a $45,735 forfeiture money judgement
• Yusniel Paez Rodriguez, 36, of Miami, Florida—50 months in prison, three years’ supervised release, and a $31,222 forfeiture money judgement
• Ronny Vazquez, 33, of Miami, Florida—37 months in prison, three years’ supervised release, and a $17,698 forfeiture money judgement

During sentencing, U.S. District Court Judge Marco A. Hernandez ordered Sopo Lopez to pay $652,926 in restitution and $22,888 to satisfy a forfeiture money judgement. All sentenced defendants were jointly and severally ordered to pay $652,926 in restitution.

This case was investigated by Homeland Security Investigations (HSI), Vancouver Police Department, and Portland Police Bureau and prosecuted by Julia E. Jarrett and Seth D. Uram, Assistant U.S. Attorneys for the District of Oregon.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

EUGENE, Ore.—A federal grand jury in Eugene returned an indictment last week charging a Bend, Oregon resident with using a microbrewery equipment company to defraud customers of more than $800,000.

The seven-count indictment alleges that Matthew Mulder, 48, used his company, WeCan Brewing Systems, LLC, to solicit payments from 23 customers located throughout the U.S. Mulder’s company supplied custom-built microbrew systems, keg washers, and other industrial brewing products. Many of his customers were microbrewery owners.

According to court documents, beginning in at least 2017, Mulder began soliciting and accepting orders for microbrewery equipment he knew his company was not capable of fulfilling. When asked by various customers for order updates, Mulder falsely stated that the orders were on schedule or near completion.

Mulder would entice customers to make payments by sending emails and text messages that included photos of nearly-completed orders prepared for other customers. Mulder solicited and accepted new customer contracts requiring large down payments that he would in-turn use for personal expenses, to pay off loans, and to pay suppliers.

Mulder made his initial appearance in federal court in Eugene today. He was released pending a jury trial scheduled for April 29, 2020 before U.S. District Court Judge Michael J. McShane.

Mulder faces four counts of wire fraud and three counts of mail fraud. Wire and mail fraud are both punishable by up to 20 years in prison, a $250,000 fine, and three years’ supervised release.

This case was investigated by the FBI and the Bend Police Department and is being prosecuted by Gavin W. Bruce, 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.

PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Mark Edward Staggs, 64, a resident of Portland, has been sentenced to six months in federal prison and two years’ supervised release for filing a false federal income tax return in 2011. Staggs was also ordered to pay more than $142,000 in restitution to the IRS.

According to court documents, from 2009 through 2019, Staggs owned a used office furniture business in the Portland area. During this time, he received all of his gross income from several large clients in Oregon and California, who paid him with checks. Staggs would travel from Oregon to California to cash the checks at a check cashing service in San Jose, California. His use of a false social security number prompted the check cashing service to file Currency Transaction Reports (CTRs) with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). 

Staggs kept the cash he received and never deposited it into his business bank account or recorded it in his business records. When the check cashing service began refusing Staggs’ checks, he enlisted two acquaintances to cash the checks on his behalf. Staggs encouraged these acquaintances to lie if anyone questioned them about his scheme. In total, between 2010 and 2013, Staggs failed to report nearly $500,000 of income, resulting in tax loss of $142,583.

On April 9, 2019, Staggs pleaded guilty to one count of filing a false federal income tax return before U.S. District Court Judge Michael H. Simon.

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

The U.S. Attorney’s Office and IRS-CI remind Oregonians that tax day is Wednesday, April 15, 2020. For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit: https://www.irs.gov/help-resources.

MEDFORD, Ore.—William Gregory Douglas, 37, of Cave Junction, Oregon, pleaded guilty today for threatening to shoot YouTube employees at the company’s San Bruno, California headquarters after his account was removed for violating the video-sharing platform’s terms of service.

“Threatening a mass shooting is a serious crime whether or not an individual plans to act. This is a crime that undermines Americans’ fundamental right to live and work without fear,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “We will continue to diligently respond to and prosecute criminal threats of violence to the fullest extent of the law.”

“Using social media outlets to threaten violence of any kind victimizes individuals and undermines the safety of our communities,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “The FBI remains committed to working with our state and local partners to respond quickly to threats and keep our communities free from violence and intimidation.”

According to court documents, sometime on or before August 22, 2018, YouTube removed Douglas’ video channel for violating the platform’s terms of service. In response, on August 23, 2018, Douglas posted five tweets threatening violence against YouTube employees. In one of the tweets, Douglas threatened a “bigger mass casualty” event, appearing to reference a prior shooting incident at YouTube’s headquarters in April 2018 that injured three employees.

Later, on September 8, 2018, Douglas posted a tweet stating “Hey why do you guys keep ignoring me would it be better if I leave you with no other options like your [sic] leaving me…I’m beyond pissed…I wonder how I should deal with this frustration.” Finally, on September 17, 2018, Douglas tweeted a direct threat at one of YouTube’s senior leaders saying “…I’m coming for you today #pray.”

On October 4, 2018, a federal grand jury in Medford, Oregon returned a one-count indictment charging Douglas with cyberstalking. Later, on January 14, 2020, he was charged by criminal information with one count of making interstate communications with the intent to extort. Douglas pleaded guilty today to the latter charge.

As part of the plea agreement, Douglas has agreed to pay restitution in full to his victims as determined and ordered by the court at sentencing.

Douglas faces a maximum sentence of 5 years in prison, a $250,000 fine and three years’ supervised release. He will be sentenced on May 14, 2020 before U.S. District Court Judge Ann L. Aiken.

This case was investigated by the FBI and prosecuted by Judi R. Harper, Assistant U.S. Attorney for the District of Oregon.

Anyone with information about real or perceived threats of violence should call the FBI at (503) 224-4181 or submit a tip online at https://tips.fbi.gov. For immediate threats to life and safety, please call 9-1-1.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our department at www.Justice.gov/Celebrating150Years.

PORTLAND, Ore.—Timothy Ray Vance, 54, of Salem, Oregon, was sentenced to 90 months in federal prison and five years’ supervised release for distributing large quantities of methamphetamine throughout Marion County.

Vance has a long criminal history dating back to 1983. Vance served more than 20 years in prison after being convicted in Marion County Circuit Court in 1994 on two counts of robbery, two counts of burglary, and one count each of kidnapping and theft.

Two months after completing post-prison supervision, in August 2018, Vance was found to be involved in a large methamphetamine distribution network. By October 2018, investigators discovered the network’s source of supply and at least one informant who revealed they had purchased methamphetamine from Vance on ten different occasions.  A different informant told investigators that on one occasion, Vance sold them one pound of methamphetamine for $3,200.

In February 2019, Salem Police Department executed a search warrant on Vance’s residence. Investigators located 62.7 grams of methamphetamine, $2,780 in cash, drug packaging materials, and two handguns. Vance was placed under arrest and later released.

In March 2019, investigators learned that Vance was dealing methamphetamine out of a Salem hotel room. Officers conducted a traffic stop of Vance after obtaining a search warrant on his vehicle. During the search, they found 443 grams of methamphetamine, $1,500 in cash, and two additional firearms.

On November 11, 2019, Vance pleaded guilty to one count of possession with intent to distribute methamphetamine. As part of his plea agreement, Vance agreed to abandon four firearms used to facilitate his crime.

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

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

PORTLAND, Ore.—Billy J. Williams, U.S. Attorney for the District of Oregon, provides the below statement on the sanctuary jurisdiction legal action announced today by Attorney General William P. Barr.

“Today, Attorney General Barr announced new legal actions in several states being taken by the Justice Department to address sanctuary jurisdictions. I share the Attorney General’s belief that sanctuary status declarations directly contravene federal immigration law and threaten public safety. In our country, the Congress makes immigration law and has directed federal authorities to enforce it. The notion that states and other jurisdictions can interfere in the sharing of critical public safety information involving criminal conduct ignores the supremacy of federal law. Each year, many preventable crimes are committed when jurisdictions refuse to cooperate with lawful federal immigration enforcement activities.

Oregon sheriffs and other law enforcement officers are caught in the middle of a highly politicized local and national debate over these policies. Many are left to choose whether to violate state or federal law. This is an untenable position for the men and women who work tirelessly to protect our communities. Since 2015, we have worked with our federal, state, and local law enforcement partners here in Oregon to cure this impasse. Our work will continue tomorrow when we will again convene a large group of law enforcement partners to discuss these new lawsuits and other related issues.”

 

EUGENE, Ore.—Theron Gilbert Gerber, 36, a resident of Coos Bay, Oregon, was sentenced to five years in federal prison followed by a four-year term of supervised release for distributing methamphetamine and unlawfully possessing sawed-off shotguns.

According to court documents, in March 2019, agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) learned that Gerber, who had prior state felony convictions, was selling firearms and methamphetamine in the Coos Bay area.

On April 4, 2019, an undercover ATF agent met with Gerber for a firearms purchase. Upon entering Gerber’s home, the agent saw drug paraphernalia and approximately 20 to 25 firearms displayed for sale. During the meeting, Gerber stated, “everything’s for sale for the right price.” Gerber then sold the agent a short-barreled shotgun, a Glock pistol, three magazines, three drum magazines, and 91 rounds of ammunition—all for $600.

The agent arranged a second purchase the following week. On April 11, 2019, the agent again met with Gerber inside his residence. This time, the agent purchased an AK-style rifle for $500 and asked if Gerber would sell methamphetamine. Gerber agreed to sell the agent approximately 13 grams of methamphetamine for $240.

Finally, on April 25, 2019, the agent brokered a third firearm purchase from Gerber. Gerber sold the agent a second sawed-off shotgun, an AR-style pistol, 181 rounds of assorted ammunition, six 30-round AR-style magazines, and a Colt .45 caliber “Night Defender” pistol for $1,500. A short time later, ATF agents executed a search warrant on Gerber’s residence and arrested him.

As part of his plea agreement, Gerber agreed to forfeit the firearms described in the indictment.

On January 6, 2020, Gerber pleaded guilty to one count each of unlawful possession of a short-barreled firearm and distribution of methamphetamine.

This case was investigated by ATF and prosecuted by Nathan J. Lichvarcik and William McLaren, Assistant U.S. Attorneys for the District of Oregon.

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

Collection of handguns Collection of Firearms Shotgun with Shortened Barrel and Stock Shotgun with Shortened Barrel

 

PORTLAND, Ore.—Diego Sanchez-Lopez, 25, of Clark County, Washington, known locally as the “Froggy Robber,” was sentenced today to 97 months in federal prison and three years’ supervised release for armed bank robbery.

According to court documents, between November 2017 and April 2018, Sanchez-Lopez stole more than $87,000 from the following six banks in Oregon and Southwest Washington:

• On November 27, 2017, $9,710 was stolen from the Albina Community Bank located at 2002 NE Martin Luther King Jr. Boulevard in Portland.
• On December 27, 2017, $26,000 was stolen from the Wells Fargo Bank located at 8699 SW Main Street in Wilsonville, Oregon.
• On January 11, 2018, $11,580.99 was stolen from the Wells Fargo Bank located at 6785 Beaverton Hillsdale Highway in Beaverton, Oregon.
• On January 30, 2018, $6,720 was stolen from the U.S. Bank located at 52313 Columbia River Highway in Scappoose, Oregon.
• On February 12, 2018, $15,400 was stolen from the Wells Fargo Bank located at 1800 Main Street in Vancouver, Washington.
• On April 30, 2018, 33,357 was stolen from the Wells Fargo Bank located at 7200 NE Butler Street in Hillsboro, Oregon.

During sentencing, U.S. District Court Judge Michael W. Mosman ordered Sanchez-Lopez to pay more than $119,000 in restitution.

Previously, On August 5, 2019, Sanchez-Lopez pleaded guilty to six counts of bank robbery. As a non-citizen and lawful permanent resident, this conviction will subject Sanchez-Lopez to removal from the U.S. by immigration authorities.

This case was investigated by the FBI and prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon.

PORTLAND— U.S. Attorney Billy J. Williams and Oregon Attorney General Ellen F. Rosenblum issued joint official guidance today on the enforcement of tribal protection orders.

Tribal protection orders, referred to as foreign restraining orders under state law, are civil orders of protection issued by tribal courts to prevent future domestic violence. State and federal law under the Violence Against Women Act (VAWA) require full faith and credit for these orders, meaning all states must uphold protective orders from any other state and from any tribal nation. 

“Protecting public safety and the fair administration of justice requires steadfast partnership among local, state, tribal, and federal law enforcement agencies. When we fail to uphold tribal restraining orders, we leave Native women vulnerable to human trafficking and violence, contributing to the Missing and Murdered Indigenous Women and Persons epidemic,” said U.S. Attorney Williams. “When we grant full faith and credit for tribal restraining orders, we are working collaboratively across jurisdictions to ensure all Oregonians enjoy the same court-ordered protections regardless of who they are, or where they live or travel in the state.”

“We have heard from all levels of law enforcement that there may be confusion nationally and statewide about how to enforce tribal protection orders,” said Attorney General Rosenblum. “We hope that this guidance will help us work together to better protect all victims of domestic violence—especially tribal women who deserve the same protections as other Oregon women. We want to ensure that all law enforcement understands and recognizes what a tribal protection order is and will enforce it.”

The Oregon Department of Justice and U.S. Attorney’s Office will be traveling around the state in March to train law enforcement, prosecutors, advocates, and community members about full faith and credit as part of ODOJ’s RISE program.

A PDF version of today’s memorandum is available on the U.S. Attorney’s Office website at https://www.justice.gov/usao-or/indian-country.

According to findings from the 2010 National Intimate Partner and Sexual Violence Survey published by the National Institute of Justice, 55.5% of Native women have experienced physical violence by an intimate partner in their lifetime, including 8.6% who have experienced domestic violence in the past year. Native women are 1.6 times as likely, compared to Caucasian women, to have experienced domestic violence in the past year.

If you have questions or concerns about the enforcement of tribal protection orders in Oregon or if you are interested in additional training on this topic, please contact Sarah Sabri with the Oregon Department of Justice at sarah.m.sabri@doj.state.or.us or Tim Simmons with the U.S. Attorney’s Office for the District of Oregon at tim.simmons@usdoj.gov.

EUGENE, Ore.—Susan Tranberg, 61, of Eugene, Oregon, pleaded guilty today in federal court to mail fraud, aggravated identity theft and tax evasion after defrauding her former employer, the Weyerhaeuser Company, out of more than $4.5 million.

“Susan Tranberg used her intimate knowledge of the Weyerhaeuser Company to perpetrate a lengthy and complex fraud. She went to great lengths to disguise her actions and mislead her colleagues,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “She then took her scheme a step further by evading paying taxes on her fraudulent gains. Her crimes reflect a complete disdain for her employer and utter contempt for her responsibilities as an American taxpayer.”

“Between 2004 and 2019, Susan Tranberg purported herself as a trustworthy and dedicated employee. In reality she was embezzling more than $4 million dollars,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “She cheated both her employer and the American taxpayers by evading taxes on her embezzled income. The IRS is committed to promoting taxpayer confidence by ensuring every taxpayer pays their fair share regardless of the taxable source.”

According to court documents, beginning as early as June 2004 and continuing to January 2019, Tranberg defrauded Weyerhaeuser out of more than $4.5 million by submitting fraudulent invoices for payment to a fake vendor she created. Tranberg had worked for Weyerhaeuser in Springfield, Oregon in various positions for more than 40 years.

At some point in or before June 2004, Tranberg created a fake timber contract between the company and a vendor she named after her mother, who was unware of the scheme. Over the next 10 years, Tranberg would use her positions in the company’s accounting and finance departments, to request cashier’s checks payable to the fake vendor. During this time period, Tranberg requested and received more than $2.6 million.

In June 2014, Weyerhaeuser transitioned to a new payment processing system. To continue her scheme, Tranberg set up a fake vendor account in the new system and attached a letter purportedly from her mother describing the documentation provided to set up the account. This documentation included a Form SSA-1099 Social Security Statement and a forged Form W-9 Request for Taxpayer Identification Number and Certification.

Between June 2014 and January 2019, Tranberg continued her scheme by forging colleagues’ signatures on check requests and using her colleagues’ computer login credentials without authorization to create requests and approve fraudulent payments. All requested cashier’s checks were sent via private or commercial interstate carrier directly to Tranberg. During these final five years, Tranberg requested and received nearly $1.9 million.

Tranberg faces a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release. In addition, a conviction for aggravated identity theft carries a two-year mandatory minimum sentence required to be served consecutive to any other prison sentence imposed.

As part of her plea agreement, Tranberg has agreed to pay $4,581,218 in restitution to Weyerhaeuser and $807,033 in restitution to the IRS.

This case was investigated by IRS-Criminal Investigation (IRS-CI) and prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—On January 22, 2020, Kristopher Ives, 33, of Portland, was sentenced to 12 months and one day in federal prison and three years’ supervised release for illegally accessing the computer network and data of his former employer, Gearbox Studios, after being terminated.

According to court documents, in 2008, Ives began working as a computer programmer for Gearbox Studios, a Portland-based digital marketing agency. Ives eventually became Gearbox Studio’s lead programmer for server architecture and support, a position of trust with access to the computer networks and data of both the company and the company’s clients.

Between February and May 2015, after being terminated from his position, Ives illegally accessed Gearbox’s computers to steal and tamper with data. He used this data to attack Gearbox’s servers and various websites belonging to Gearbox customers. Ives deleted nearly 20,000 products from customer websites and changed prices for various items. Ives also stole names and credit card numbers from these Gearbox customer websites and threatened to release the information unless Gearbox made payment to a bitcoin address.

On October 18, 2019, Ives pleaded guilty to one count of fraud in connection with computers.

This case was investigated by the FBI’s Oregon Cyber Task Force and prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.

Any public or private entity suspecting a cyber intrusion or attack should contact the FBI through the Internet Crime Complaint Center at www.ic3.gov or by calling your nearest FBI office.

PORTLAND, Ore.—Darlene Michelle Sturdevant, 61, of Vancouver, Washington, was sentenced today to 14 years in federal prison and five years’ supervised release for conspiring to possess with intent to distribute methamphetamine and heroin throughout the Portland Metropolitan Area, possessing with intent to distribute heroin, and committing an offense while on release.

According to court documents, in February 2018, Sturdevant was a passenger in a vehicle driven by Rene Elene Griffen Nunn, 60, also of Vancouver, when the two were stopped by the Clackamas County Interagency Task Force (CCITF) and U.S. Drug Enforcement Administration (DEA). Investigators believed Sturdevant and Nunn were driving from Vancouver to Portland to distribute drugs.

A search of the vehicle revealed $155,949, a digital scale, and a notebook in Sturdevant’s backpack and approximately 87 grams of heroin in Nunn’s purse. Investigators returned to Vancouver and searched a residence shared by Sturdevant, Nunn, and others and found an additional 367 grams of heroin and a kilogram of methamphetamine.

Sturdevant was charged with drug trafficking and released pending trial. After pleading guilty in October 2018, DEA learned that Sturdevant was again selling drugs. On January 29, 2019, DEA agents executed a search warrant at Sturdevant’s new residence in Portland and seized approximately 558 grams of heroin, digital sales, a drug ledger, and $27,250.

During sentencing, U.S. District Court Judge Marco A. Hernandez ordered Sturdevant to forfeit $183,199 seized by investigators.

On October 31, 2019, Nunn pleaded guilty to one count of conspiracy to possess with intent to distribute heroin. She will be sentenced on March 4, 2020.

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