District of Oregon

EUGENE, Ore.—Jeffrey Robert Cotton, 45, the former Manager of the Burns Municipal Airport in Burns, Oregon, was sentenced today to 4 years’ probation and 300 hours of community service for stealing thousands of dollars of equipment that rightfully belonged to the City of Burns, by converting to his personal use property acquired through the Federal Personal Property Utilization Program.

The Federal Personal Property Utilization Program is intended to benefit state and local governments and eligible organizations by giving them property the federal government no longer needs at no cost.

According to court documents, between 2014 and 2016, Cotton acquired, allegedly on behalf of the airport, numerous pieces of federal excess property including a heater/air conditioner, commercial lighting sets and various trucks and vans, tractors, and other heavy equipment.

Throughout the acquisition process, Cotton failed to fully inform or notify the City of Burns, its mayor, city manager or city council of the federal excess property obtained on its behalf. Instead, Cotton illegally converted much of the property to his personal use, either by titling property in his own name or transferring the property to Emergency Equipment Solutions, Inc. (EES), a nonprofit fully owned and operated by Cotton.

When confronted with the theft, Cotton lied and misrepresented information regarding how he had obtained the property. Additionally, Cotton signed phony bills of sale falsely representing that EES had purchased the property. Records show thousands of dollars were transferred from EES to Cotton personally.

On April 11, 2019, Cotton pleaded guilty to two counts of theft from a local government receiving federal funds.

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

PORTLAND, Ore.—Quan Jiang, 30, a Chinese national and former engineering student at Linn Benton Community College in Albany, Oregon, pleaded guilty today to one count of trafficking in counterfeit goods, specifically fake and altered Apple iPhones. Jiang would import the counterfeit devices from Hong Kong and submit them to Apple in exchange for genuine warranty replacement phones to be sold on the Chinese market.

“Counterfeiting undermines commerce and inevitably leads to increased prices for goods enjoyed by millions of consumers,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The investigators who worked this case and others like it provide an invaluable public service to American companies, entrepreneurs, and consumers alike in preserving a competitive market free of criminal interference.”

“Individuals who deal in counterfeit goods would have you believe that these are victimless crimes,” said Brad Bench, Special Agent in Charge of Homeland Security Investigations (HSI) Seattle. “Do not be fooled, they’re not. Not only do they hurt the economy and legitimate businesses, but they also impact consumers directly. HSI and our law enforcement partners will continue to fight counterfeiting across all industries.”

According to court documents, between January 1, 2016, and February 1, 2018, Jiang would regularly receive packages containing between 20 and 30 counterfeit iPhones from associates in Hong Kong. Using various assumed names, Jiang would submit each iPhone to Apple individually in person or online for a warranty replacement; he would then ship the genuine replacement devices he received back to China for resale. In exchange for his service, Jiang’s associate would pay Jiang’s mother, also residing in China, who would in turn deposit the money into Jiang’s bank account.

Jiang later admitted to investigators that he knew the devices were counterfeit and that it was illegal to submit them to Apple as genuine products still under warranty. In just over two years, Jiang imported more than 2,000 inoperable counterfeit iPhones. He ultimately obtained approximately 1,500 genuine replacement iPhones, each with an approximate resale value of $600.

Jiang faces a maximum sentence of ten years in prison, a $2,000,000 fine or twice his proceeds, whichever is greater, and three years of supervised release. He will be sentenced on August 28, 2019 before U.S. District Court Judge Anna J. Brown.

As part of the plea agreement, Jiang has agreed to pay $200,000 in restitution to Apple.

This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) and prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—A federal jury in Portland returned guilty verdicts today against a Portland man who was accused of distributing large quantities of methamphetamine throughout Multnomah County, Oregon.

Amadeo Lupercio-Quezada, 39, was convicted after a two-day trial of conspiring to possess within intent to distribute methamphetamine; possessing with intent to distribute methamphetamine, heroin and cocaine; and possessing a firearm in furtherance of a drug trafficking crime.

According to court documents and information entered at trial, in October 2017, a Gresham Police detective learned that Lupercio-Quezada and co-defendant Maribel Sebastian-Evangelista were distributing large amounts of methamphetamine throughout Multnomah County. Lupercio-Quezada would physically complete the sales after Sebastian-Evangelista would arrange deals by phone. Thereafter, the detective and other members of the Gresham Police Department Special Enforcement Team initiated four controlled purchases of methamphetamine from Lupercio-Quezada and Sebastian-Evangelista between October and December 2017.

All four controlled purchases took place at Lupercio-Quezada’s residence on E. Burnside Street in Portland and resulted in the officers successfully purchasing ounce quantities of methamphetamine. Officers later searched the residence pursuant to a state search warrant and found distribution quantities of methamphetamine, heroin and cocaine, an ID card with Lupercio-Quezada’s photo, $14,500 in cash as well as a .380 caliber Glock model 42 semi-automatic pistol located near the drugs.

Lupercio-Quezada faces a maximum sentence of life in prison with consecutive mandatory minimum sentences of 10 and 5 years for the drug and gun charges, respectively; a $250,000 fine and a life term of supervised release. He will be sentenced on August 21, 2019 before U.S. District Court Judge Michael W. Mosman.

This case was investigated by the Gresham Police Department Special Enforcement Team and was prosecuted by Kemp L. Strickland and Sarah Barr, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore.—A federal jury in Portland returned guilty verdicts today against a Beaverton, Oregon man who detonated an improvised explosive device containing triacetone triperoxide (TATP), assaulting two members of the Portland Joint Terrorism Task Force (JTTF) on October 11, 2017.

Jason Paul Schaefer, 27, was convicted after a six-day trial of two counts of assaulting a federal officer and one count each of carrying and using a destructive device during and in relation to a crime of violence, carrying and using an explosive during the commission of a federal felony, unlawful transport of explosive materials, possession of an unregistered destructive device and being a felon in possession of explosives.

“Without the hard work and dedication of the JTTF agents and partners who pursued and investigated Mr. Schaefer, he might still be on the street furthering his deadly pursuits. We are extremely fortunate that Mr. Schaefer did not succeed in his attempt to take the lives of two JTTF officers in October 2017,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “This case affirms the critical work of our law enforcement partners on the JTTF in keeping Oregon communities safe.”

“Our JTTF agents and task force partners put their lives on the line every day for the people of Oregon,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “Mr. Schaefer made a series of choices that led to his encounter with law enforcement on that day. He alone is responsible for the physical harm that both he and the responding task force officer suffered. Today's verdict is just and will help ensure the safety of the community in the future.”

“The Oregon State Police is proud of the collaboration among our local and federal partners on the JTTF, with our mutual goal to keep Oregon safe. We are grateful that our troopers and taskforce officers were not seriously injured during this rapidly developing event. OSP is also appreciative of the time and attention of the U.S. Attorney's Office to seek justice in this case,” said Travis Hampton, Superintendent of the Oregon State Police.

“The Washington County Sheriff’s Office would like to thank the U.S. Attorney’s Office, the JTTF and partnering agencies for their hard work in this investigation. We value these important public safety partnerships that work tirelessly to keep our communities safe,” said Pat Garrett, Washington County Sheriff.

According to court documents and evidence presented at trial, on or about September 21, 2017, FBI Portland determined that Schaefer had purchased several items that could be used to make a bomb. Schaefer was known to federal investigators after an April 2017 incident where he threatened to kill his landlords and used mercury to deter people from entering an apartment garage he rented in Beaverton. The incident led to Schaefer being arrested and prosecuted for illegally possessing body armor.

On October 11, 2017, federal agents and task force officers executed a search warrant on Schaefer’s Beaverton apartment. Schaefer arrived that morning at a meeting with his probation officer to find two federal agents there to meet him. They notified Schaefer of the warrant and asked if his property was booby trapped. Schaeffer told the agents that it was not and the search commenced.

After a brief conversation with the agents, Schaefer departed in a white sport utility vehicle. The agents followed Schaefer, but lost him. Meanwhile, agents searching Schaefer’s apartment found several explosive precursors and electronic matches. While the search was ongoing, Schaefer returned to the apartment and threatened a task force officer before fleeing.

Two task force officers pursued Schaefer who soon got stuck in traffic. The officers approached Schaefer on foot and ordered him out of the vehicle. Schaefer did not comply, threatened to kill the officers and ignited an explosive device concealed in a cigarette pack. The blast caused significant injury to Schaefer’s hand and sent debris flying into one of the officers, who suffered bodily injury. Following the explosion, Schaefer was arrested and officers found a second cigarette pack containing explosives in his vehicle.

Schaefer faces a maximum sentence of life in prison with a 30-year mandatory minimum. He will be sentenced on August 13, 2019 before U.S. District Court Judge Marco A. Hernandez.

This case was prosecuted by the U.S. Attorney’s Office for the District of Oregon. It was investigated by the Portland JTTF. The Portland JTTF includes FBI special agents and more than a dozen state and local law enforcement officers.

EUGENE, Ore.—Christopher Michael Soares, 35, of Southern Oregon, was sentenced today to 160 months in federal prison and five years’ supervised release for possessing with the intent to distribute methamphetamine in Bend, Oregon.

According to court documents, on June 28, 2016, police officers in Bend stopped Soares while he was driving a vehicle with two other occupants. When officers searched Soares’ person, they found 99 grams of methamphetamine, 56 grams of heroin and a 9mm firearm. Soares was later arrested on three separate occasions in Jackson County for additional drug and firearms offenses.

In September 2016, Soares was charged by federal criminal complaint for the June 2018 incident in Bend. He later pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine. Facing state and federal charges, the parties, including state prosecutors in Jackson County, agreed to a global resolution to resolve all of Soares’ pending criminal cases.

This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Bend Police Department, Medford Police Department and Deschutes County Sheriff’s Office. It was prosecuted by Nathan J. Lichvarcik, 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.

Dear Mayor Wheeler and Commissioners,

I am writing in support of the Portland Police Bureau’s Gun Violence Reduction Team.  I want to make sure you are aware this unit of PPB’s Tactical Operations Division is part of a multi-agency metro region collaboration to reduce gun violence in Multnomah County.  This unit is made up of officers with significant regional expertise and a deep knowledge of the community.

As part of the Justice Department’s National Project Safe Neighborhood program, the Portland Area Crime Gun Initiative was formed in August 2017 with partners from the U.S. Attorney’s Office, Portland Police Bureau, Gresham Police Department, Multnomah County Sheriff’s Office, Multnomah County District Attorney’s Office, Oregon State Police, Oregon State Crime Lab, FBI and ATF.  Using national research in reducing gun violence, partners committed to improving policies, practices and collaboration when responding to shootings in the metro area including outreach and prevention efforts.  Part of the improvements undertaken by PPB included revised policies on investigating gun crimes and creating the Gun Violence Reduction Team to examine and triage investigations on every shooting in the city.  Some of the data and successes of this effort were contained in a recent PPB press release on gun violence in Portland.

Using objective ballistics technology and shared investigative resources, we are connecting the dots more rapidly on shootings and increasing the opportunity to prevent the next tragedy.

The Gun Violence Reduction Team has been a critical partner in the Portland Area Crime Gun Initiative and officers have been active in training other investigators in Oregon and Washington.  Local and federal partners have committed resources to this effort for the benefit of the community including providing needed training and federally funded equipment for investigators.

Thank you for your continued support for this critical public safety effort.

Sincerely,

BILLY J. WILLIAMS

United States Attorney

PORTLAND—Billy J. Williams, U.S. Attorney for the District of Oregon, recognizes the service and sacrifice of federal, state, local and tribal law enforcement officers on the occasion of National Police Week.

The District of Oregon had one line-of-duty death in 2018. On Friday, March 2, 2018, Officer Malcus Williams, a 21-year veteran of the Ashland Police Department, passed away after suffering a major medical event while on the scene of a call. Officer Williams is survived by his wife, Ona, and three daughters, Savannah, Georgia and Brooklyn, and his sisters Cindy and Amy. In a ceremony on May 7, 2019, Officer Williams was added to Oregon’s Fallen Law Enforcement Memorial at the Oregon Public Safety Academy in Salem, Oregon.

“National Police Week offers a time to honor the courage and commitment shown by law enforcement officers here in the District of Oregon and across the nation. One officer death is too many,” said U.S. Attorney Williams. “In 2018, we lost Officer Malcus Williams of the Ashland Police Department. As his family and colleagues know well, Officer Williams was a selfless public servant who embodied every noble trait his fellow citizens look for in a police officer. He was courageous, professional, hardworking and steadfastly dedicated to his community.”

According to statistics collected by the FBI, 106 law enforcement officers were killed in line-of-duty incidents in 2018 – a 14 percent increase from 2017 when 93 law enforcement officers were killed in line-of-duty incidents.

For comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2018 edition of Law Enforcement Officers Killed and Assaulted report, released this week.

In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.

During Police Week, which is observed from Sunday, May 12 to Saturday, May 18, 2019, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.

The names of all 106 fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 31st Annual Candlelight Vigil on the evening of May 13, 2019.

No tickets are required to attend the vigil and everyone is welcome. For additional information, please call 202-737-3400. The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2019.

For more information about other National Police Week events, please visit www.policeweek.org.

PORTLAND, Ore.—A 24-count indictment was unsealed in federal court today charging former Portland attorney Lori E. Deveny, 53, with mail, wire and bank fraud; aggravated identity theft; money laundering and both filing false tax returns and failing to file tax returns as part of a scheme to defraud her clients and use the proceeds to pay for personal expenses.

According to the indictment, between April 2011 and May 2019, Deveny is alleged to have systematically stolen funds she held in trust for her clients. The funds were derived from insurance proceeds due and payable to her clients. Deveny is accused of forging client signatures on settlement documents she sent to various insurance companies, making unauthorized transfers of funds to personal accounts and falsely telling clients that the insurance companies were to blame for delays in settling claims. Many of Deveny’s clients never received the insurance payout they were owed.

Deveny is also alleged to have used stolen funds to pay for personal credit card and loan payments, numerous big game hunting trips to Africa and the resulting taxidermy costs, other vacations, her husband’s photography business, home remodeling, expensive cigars and other expenses associated with a lavish lifestyle.

Deveny was released pending trial. A 7-day jury trial is scheduled for July 16, 2019 before U.S. District Court Judge Michael W. Mosman.

This case was investigated by IRS Criminal Investigation and the FBI and is being prosecuted by Claire M. Fay, 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.—Trent Lamar Knight, 31, of Houston, Texas, pleaded guilty today for his role in a conspiracy to traffic marijuana grown in Portland to Texas.

Drug proceeds, in the form of bulk U.S. currency, were returned to Oregon via U.S. mail and passenger luggage on commercial airlines. As part of this investigation, federal authorities have seized approximately 11,000 marijuana plants, 546 pounds of processed marijuana, more than $2.8 million in cash, 51 firearms, 26 vehicles, trailers, pieces of heavy equipment, a yacht, and three houses used as marijuana grow sites, all since August 2017.

Knight pleaded guilty to one count each of conspiring to manufacture, possess with intent to distribute, and distribute marijuana, maintaining drug-involved premises and using and carrying a firearm during and in relation to a drug trafficking crime.

Conspiring to manufacture, possess with intent to distribute, and distribute marijuana and maintaining drug involved premises carries a maximum sentence of 40 years in prison, a $5 million fine and a lifetime of supervised release. Using or carrying a firearm in relation to a drug trafficking crime carries a maximum sentence of life in prison with a mandatory minimum of seven years, a $250,000 fine and five years’ supervised release.

Knight will be sentenced on August 14, 2019 before U.S. District Court Judge Robert E. Jones.

As part of his plea agreement, Knight has agreed to forfeit any criminally-derived proceeds and property used to facilitate his crimes identified by the government prior to sentencing.

Co-defendants Brittany Lesanta Kizzee, 28, of Houston, Paul Eugene Thomas, 38, and Raleigh Dragon Lau, 33, both of Portland; and Cole William Griffiths, 30, of Hood River, Oregon have all pleaded guilty on related charges. Griffiths and Thomas will be sentenced on August 5 and 6, 2019, respectively. Kizzee and Lau will both be sentenced on August 7, 2019. Finally, co-defendant Jody Tremayne Wafer, 29, also of Houston, is scheduled for trial on June 18, 2019.

This case was investigated by the U.S. Drug Enforcement Administration, IRS Criminal Investigation, Homeland Security Investigations and the FBI. It is being prosecuted by the U.S. Attorney’s Office 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.—Antonio Oswaldo Burgos, 48, of Portland, was sentenced today to four months in federal prison and three years’ supervised release for attempting to bribe a U.S. Immigration and Customs Enforcement (ICE) deportation officer.

According to court documents, on May 24, 2018, Burgos followed an ICE deportation officer in his vehicle from the ICE office in Portland until the officer stopped in a parking lot in Vancouver, Washington. The defendant offered the officer money to deport his wife who he had met in El Salvador and was in the process of divorcing. The officer declined Burgos’ offer and reported the event to the ICE Office of Professional Responsibility (OPR).

On May 31, 2018, the officer made a recorded call to Burgos with the assistance of an OPR investigation team. Burgos offered to the pay the officer $3,000 to remove his wife from the U.S. On June 5, 2018, the officer and OPR team made a second recorded call on which Burgos again offered to pay the officer for his wife’s removal. Burgos and the officer proceeded to discuss logistics for an in-person meeting.

On June 6, 2018, Burgos met the officer in a pre-determined location and offered to pay $4,000 for the removal of his wife and his wife’s minor child from a previous relationship.

On November 20, 2018, Burgos pleaded guilty to one count of bribery of a public official.

This case was jointly investigated by ICE OPR and Homeland Security Investigations. It was prosecuted by Rachel K. Sowray and Claire M. Fay, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore.—Hossein Heydari, 61, of Gaithersburg, Maryland, pleaded guilty today to one count of fraud and related activity in connection with computers after intentionally damaging the Oregon Medicaid Management Information System (MMIS) and causing it to fail.

“Mr. Heydari’s illegal intrusion of the Oregon Medicaid system posed a serious risk to public health, jeopardizing patient medical exams, diagnoses and treatment,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “If not properly secured, network insiders can pose a serious cyber threat to businesses and government agencies alike.”

“It is very important that the FBI and its partners work to deter future attacks by holding people such as Mr. Heydari responsible for their actions,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “If any company or agency in the state suspects a system compromise, contact the FBI’s Oregon Cyber Task Force right away so that our experts can help to mitigate the damage and work to identify the intruder.”

According to court documents, Heydari was formerly employed by Hewlett Packard Enterprises (HPE) as a system administrator and technical support specialist. As part of an HPE contract with the Oregon Health Authority, Heydari had administrative access to Oregon MMIS servers located in Salem, Oregon. On October 28, 2016, Heydari was laid off by HPE. A few days later, he intentionally altered part of the MMIS system causing it to fail and resulting in an 8-hour loss of user functionality.

The Oregon MMIS is a marketplace for medical care providers, pharmacies and patients to exchange eligibility information for care, prescriptions and other benefits provided by Medicaid.

Heydari faces a maximum sentence of 10 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on August 12, 2019 before U.S. District Court Judge Michael H. Simon.

As part of the plea agreement, Heydari has agreed to pay $44,777 in restitution to the Oregon Health Authority and $31,195 to HPE.

This case was investigated by the FBI’s Oregon Cybercrime Task Force and is being 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.

Downloadable file: Government Sentencing Memo (w/ Photos)

PORTLAND, Ore.—Shawn Terrell Crane, 39, of Portland, was sentenced today to 168 months in federal prison and three years’ supervised release for conspiring to distribute oxycodone and laundering drug proceeds.

The case against Crane is the result of a lengthy FBI and Portland Police Bureau investigation of a Portland-area drug trafficking organization that included a three-month wiretap of Crane’s cell phones. Crane is the leader of a criminal conspiracy that sourced oxycodone pills from Fresno, California and transported them to Oregon by vehicle and U.S. mail for distribution in and around the Portland metropolitan area.

During the course of the conspiracy, Crane was responsible for distributing more than 30,000 oxycodone pills and arranging for hundreds of thousands of dollars in cash to be deposited into third-party bank accounts to conceal its source. He used violence and the threat of violence to bolster his position of authority within the drug trafficking organization, intimidate competition and achieve his objectives. On one occasion, Crane videotaped himself assaulting and robbing a drug customer while armed with a gun. Crane then sent the video to others, boasting of his willingness to engage in violence without backup from his associates.

Crane previously pleaded guilty to one count of conspiracy to distribute oxycodone and one count of conspiracy to launder drug proceeds on May 3, 2018.

The FBI and Portland Police Bureau investigated this case. It was prosecuted by Leah K. Bolstad and Peter D. Sax, Assistant U.S. Attorneys for the District of Oregon.

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

EUGENE, Ore.—Edwin Enoc Lara, 34, a former campus safety officer at Central Oregon Community College and resident of Bend, Oregon, was sentenced today to life in federal prison for kidnapping and carjacking.

“Edwin Lara is a ruthless killer who will rightfully spend the rest of his life in prison,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “There is simply no place in civil society for this type of horrific violence. I sincerely hope Lara’s two life sentences will bring some measure of comfort to his victims and their families. Their courage and perseverance throughout Lara’s lengthy state and federal cases are an inspiration to the entire law enforcement community.”

According to court documents, between July 24 and July 26, 2016, Lara went on a violent crime spree that left multiple victims and their families in its wake. Early on the morning of July 24, 2016, Lara brutally murdered 23-year-old Bend resident Kaylee Sawyer, a crime for which he would later receive a life sentence in Deschutes County Circuit Court.

After the murder, on July 25, 2016, Lara fled to Salem, Oregon where he carjacked and kidnapped a young woman at gun point. Lara told his victim he was a police officer and showed her news reports about what he had done to Kaylee Sawyer. He then forced her to travel with him to California. Along the way, Lara decided to stop at a hotel in Cottage Grove, Oregon. Inside the hotel room, Lara handcuffed his victim, forced her to take sleeping pills, and made a series of physical advances leading her to believe he might sexually assault her.

A short while later, after receiving a phone call and growing concerned that law enforcement was nearing his location, Lara left the hotel with his victim and continued traveling toward California. At some point during the drive, Lara sought to change vehicles to avoid detection and stopped at two rest areas looking for another vehicle to steal.

In the early morning hours on July 26, 2016, Lara stopped at a motel in Yreka, California where he spotted an elderly man near his vehicle. Lara parked, grabbed his victim by the hand and approached the man. With his gun visible, Lara told the man that he needed his vehicle. When the man wouldn’t comply, Lara shot him in the abdomen. At this point, Lara’s victim pleaded with him to let her go, but he again grabbed her hand and forced her to flee with him by foot to a nearby gas station.

At the gas station, Lara found his next victims, two young men and their elderly grandmother, sitting inside a vehicle. After threatening to shoot them, Lara entered their vehicle with his Oregon victim and forced them to drive off. During the drive, Lara confessed to his victims that he had an “urge to kill” and had already murdered a young woman in Bend and shot a man in Yreka. Lara eventually dropped his three California victims on the side of the road, again threatened to kill them and continued driving southbound with his Oregon victim. Soon after, California law enforcement caught up with Lara and arrested him.

On November 16, 2016, a federal grand jury in Eugene returned a four-count indictment charging Lara with one count each of kidnapping and carjacking, and two counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Prior to sentencing, Lara pleaded guilty to the kidnapping and carjacking charges before U.S. District Court Judge Michael J. McShane.

This case was investigated by the Redmond Police Department, Bend Police Department, Deschutes County Sheriff’s Office, Oregon State Police and other local law enforcement agencies in California with the assistance of the FBI. It was prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.

The case is 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.—U.S. Attorney Billy J. Williams announced today that two Nigerian nationals have been charged in a 13-count indictment alleging they engaged in an online scheme to defraud victims of bitcoin virtual currency.

In an indictment filed on April 18, 2019, Onwuemerie Ogor Gift, 24, and Kelvin Usifoh, age unknown, were charged with one count each of conspiracy to commit wire fraud and money laundering and 11 counts of wire fraud.

As alleged in the indictment, the scheme began when Gift and Usifoh purchased the URL www.wealthcurrency.com and published various webpages promising investors 20-50 percent returns on investments of bitcoin with zero risk and instant withdrawals. They actively encouraged victims to transfer bitcoin to private virtual currency wallets and made numerous false claims including that their bitcoins would be invested using “unique trading methods” and they would maintain a “constant high interest rate.” They created additional websites perpetuating the same scheme including www.boomcurrency.com and www.merrycurrency.com.

Beginning in December 2017 and continuing until at June 2018, Gift and Usifoh are alleged to have knowingly conspired to defraud three victims, one residing in Oregon and two in California. A photo of a fourth victim was used to create a false persona used in furtherance of the scheme. After receiving bitcoin transfers from their victims, Gift and Usifoh would transfer the bitcoin to other accounts and eventually exchange it for Nigerian Naira. The indictment alleges that in just over six months, the defendants stole 10.88 bitcoins worth approximately $59,000 from the three victims. In total, the government alleges Gift and Usifoh received more than 50 bitcoins as part of the scheme.

This case was investigated by the FBI and is being prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.

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

The Securities and Exchange Commission's Office of Investor Education and Advocacy today issued an Investor Alert to warn investors about investment scams involving websites touting advisory and trading businesses related to digital assets.

PORTLAND, Ore.—In related criminal cases, Cole Williams Griffiths and Raleigh Dragon Lau pleaded guilty today for their roles in a conspiracy to traffic marijuana grown in Hood River, Oregon and Portland to Virginia, Texas, and Florida.

Drug proceeds, in the form of bulk U.S. currency, were returned to Oregon via U.S. mail and passenger luggage on commercial airlines. As part of this investigation, federal authorities have seized approximately 11,000 marijuana plants, 546 pounds of processed marijuana, more than $2.8 million in cash, 51 firearms, 26 vehicles, trailers, pieces of heavy equipment, a yacht, and three houses used as marijuana grow sites, all since August 2017.

Griffiths, 30, of Hood River, and Lau, 33, of Portland, both pleaded guilty to conspiring to manufacture, possess with intent to distribute, and distribute marijuana, maintaining drug-involved premises, and money laundering.

Conspiring to manufacture, possess with intent to distribute, and distribute marijuana and maintaining drug involved premises carries a maximum sentence of life in prison, a mandatory minimum sentence of 10 years in prison, a $10 million fine, and a lifetime of supervised release. Money laundering carries a max sentence of 20 years in prison, a $250,000 fine, and three years’ supervised release.

Griffiths and Lau will be sentenced on August 5 and 7, 2019, respectively, before U.S. District Court Judge Robert E. Jones.

As part of their plea agreements, Griffiths and Lau have agreed to forfeit any criminally-derived proceeds and property used to facilitate his crimes identified by the government prior to sentencing.

Co-defendants Brittany Lesanta Kizzee, 28, of Houston, Texas and Paul Eugene Thomas, 38, of Portland, pleaded guilty on November 27, 2018 and April 10, 2019, respectively. Thomas will be sentenced on August 6, 2019, and Kizzee will be sentenced on August 7, 2019. Co-defendant Trent Lamar Knight, 30, of Houston, is scheduled to plead guilty on May 8, 2019. Finally, co-defendant Jody Tremayne Wafer, 29, of Houston, is scheduled for trial on June 18, 2019.

This case was investigated by the U.S. Drug Enforcement Administration, IRS Criminal Investigation, Homeland Security Investigations and the FBI. It is being prosecuted by the U.S. Attorney’s Office 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 federal grand jury in Portland has returned a seven-count indictment charging Glen Stoll, 68, a resident of Washington State, with multiple crimes stemming from a scheme whereby he organized, promoted, and marketed fraudulent tax avoidance strategies. Stoll made his initial appearance in the District of Oregon today before U.S. Magistrate Judge Stacie F. Beckerman.

Stoll is charged with one count each of conspiracy to defraud the U.S., conspiracy to commit bank fraud, bank fraud, and making a false statement on a loan application and three counts of tax evasion.

As alleged in the indictment, Stoll served as the director of an entity called Remedies at Law. Stoll used Remedies at Law and other related entities, including the Oregon-based Embassy of Heaven, to promote schemes designed to assist people in evading the assessment and collection of federal income taxes. Stoll advised clients that they could avoid paying taxes by creating a church or ministry and placing their assets and income in so-called ministerial trusts.  Stoll referred to himself as a “general counsel” with legal experience when, in reality, he held no license to practice law.

Beginning in September 2007, Stoll assisted former Oregon couple Karl and Laurie Brady with the creation of two “ministerial trusts” called Progeny Services and Progeny Foundation. At Stoll’s direction, Karl Brady opened bank accounts for the nominee entities, issued checks from his business payable to Progeny Services or Progeny Foundation, and deposited the checks into the nominee accounts. This enabled the Brady’s to avoid the assessment of federal income tax while maintaining full access to the money for personal and family expenses.

From 2008 through 2015, at Stoll’s direction, Karl Brady filed no personal income tax returns despite receiving more than $3 million and ignored repeated letters from the IRS notifying him of his failure to file. This scheme allowed Brady to evade in excess of $1.2 million dollars in income taxes.

Separately, in 2015, Stoll assisted Brady in defrauding two of Brady’s mortgage lenders.  Stoll assisted Brady in submitting a false short sale application and other fraudulent documents to avoid repayment on a vacation rental in Hawaii. At Stoll’s direction, Brady’s short sale application included a letter claiming he and his wife were under the complete care of a church ministry, had no income, no assets, and were completely dependent on a church. Relying on this false information, the lenders authorized the short sale and suffered combines losses of approximately $120,000.

This case was investigated by IRS Criminal Investigation and is being prosecuted by Donna Brecker Maddux, 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.

MEDFORD, Ore.—On Thursday, April 18, 2019, Jonathan Alan Ochoa, 31, of Talent, Oregon, was sentenced to 120 months in federal prison and five years’ supervised release for conspiring to distribute and possess with intent to distribute cocaine and possessing a firearm in furtherance of a drug trafficking crime.

“Mr. Ochoa’s actions show a blatant disregard for the law and public safety. The lengthy prison sentences ordered in this case reflect the seriousness of mixing firearms and drug trafficking,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I thank the ATF agents involved in bringing Mr. Ochoa and Mr. Manzer to justice. Our communities are safer thanks to their efforts.”

“Mr. Ochoa compounded his drug dealing by accepting firearms in trade for illicit drugs,” said ATF Seattle Field Division Special Agent in Charge Darek Pleasants. “His willingness to engage in this lawless behavior undermines the safety and security of his community and contributes to other related criminal activities. His sentence is appropriate and serves to send a message to the community that actions like this will not be tolerated.”

According to court documents, between July and August 2017, Ochoa agreed and conspired with co-defendants Gonzalo Manzo, Jr. and Rodolfo Quevedo to send more than 500 grams of cocaine from California to Oregon to sell and distribute to others. During this time, Ochoa and Manzo negotiated a sale of cocaine with an undercover agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in exchange for multiple firearms.

On August 17, 2017, at Manzo’s request, Quevedo transported approximately 1000 grams of cocaine from California and delivered it to Ochoa in the Medford area. The firearms and cash were intended to be transported back to California but agents arrested Ochoa and his co-conspirators and the firearms were seized by law enforcement.

Manzo pleaded guilty to the same charges in August 2018 and was sentenced to 188 months in prison and three years’ supervised release on December 11, 2018. Quevedo pleaded guilty in September 2018 to a single count of conspiracy to distribute and possess with intent to distribute cocaine and was sentenced to one year and one day in prison and five years’ supervised release on December 20, 2018.

Ochoa previously pleaded guilty to one count each of conspiracy to distribute and possess with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime on October 29, 2018.

This case was investigated by ATF and is being prosecuted by Nathan J. Lichvarcik and Adam E. Delph, Assistant U.S. Attorneys for the District of Oregon.

The case is 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.—U.S. Attorney Billy J. Williams announced today that Brian A. Oliver, a former owner and executive vice president of Aequitas Management, LLC and several other Aequitas-related companies has pleaded guilty to conspiring to commit mail and wire fraud and money laundering.

According to court documents, Oliver, 54, of Aurora, Oregon, and unnamed co-conspirators used the Lake Oswego, Oregon, based company to solicit investments in a variety of notes and funds, many of which were purportedly backed by trade receivables in education, health care, transportation, and other consumer credit areas. Oliver was the company’s primary fundraiser and shared responsibility for the operation and management of Aequitas-affiliated companies and investment products as well as for the use of investor money.

From June 2014 through February 2016, Oliver and others solicited investors by misrepresenting the company’s use of investor money, the financial health and strength of Aequitas and its related companies, and the risks associated with its investments and investment strategies. Oliver and his co-conspirators also failed to disclose other critical facts about the company, including its near-constant liquidity and cash-flow crises, the use investor money to repay other investors and to defray operating expenses, and the lack of collateral to secure funds.

Oliver faces a maximum sentence of 30 years in prison, a $250,000 fine or twice the gross monetary gains or losses resulting from his crimes, and three years’ supervised release. He will be sentenced on August 5, 2019 before U.S. District Court Judge Michael W. Mosman.

As part of the plea agreement, Oliver has agreed to pay restitution in full to each of victim’s as determined and ordered by the court.

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.

WASHINGTON – On April 17, 2019, the Department of Justice released two complementary reports focusing on the mental health and safety of the nation’s federal, state, local and tribal police officers. The Bend Police Department in Bend, Oregon was featured in the report as one of eleven law enforcement agencies demonstrating a range of innovative approaches to safeguarding the mental health of both sworn and nonsworn employees.

The reports, Law Enforcement Mental Health and Wellness Act: Report to Congress and Law Enforcement Mental Health and Wellness Programs: Eleven Case Studies, were published by the Office of Community Oriented Policing Services (COPS Office) as required by the Law Enforcement Mental Health and Wellness Act (LEMHWA) of 2017.

The LEMHWA passed both chambers unanimously and without amendment and was signed by the President shortly thereafter. These actions show that its purpose and intended effects are uncontroversial among policymakers – law enforcement agencies need and deserve support in their ongoing efforts to protect the mental health and well-being of their employees. Congress took the important step in improving the delivery of and access to mental health and wellness services that will help our nation’s more than 800,000 federal, state, local, and tribal law enforcement officers.

“Serving as a law enforcement officer requires courage, strength, and dedication,” Attorney General William P. Barr said. “The demands of this work, day in and day out, can take a toll on the health and well-being of our officers, but the Department of Justice is committed to doing our part to help. I want to thank the men and women of our COPS office for their hard work to support our officers every day, and specifically for these thoughtful and insightful reports, which detail both the challenges facing our officers and some specific ways we can give them the support that they deserve.”

“We are incredibly proud of everyone at the Bend Police Department for the innovative steps taken to protect the mental health of all employees. Not only does this protect officer and staff wellbeing, but it also bolsters public safety. I am grateful to Chief of Police Jim Porter for his leadership and commitment to supporting the men and women under his command.” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I hope that Bend PD’s example will mark the beginning of a new era in policing where protecting the mental health of officers and staff is universally viewed as an essential element of effective law enforcement.”

“A damaging national narrative has emerged in which law enforcement officers – whether federal, state, local, or tribal – are seen not as protectors of communities but as oppressors,” said COPS Office Director Phil Keith. “In this environment, where an inherently stressful job is made more so by a constant undercurrent of distrust and negative public opinion, the risks to officer wellness are exacerbated. This report is an important measure and reflection in our ongoing commitment to protect those who protect us.”

Under the Law Enforcement Mental Health and Wellness Act, the COPS Office was required to submit reports to Congress that addressed:

1. Recommendations to Congress on effectiveness of crisis lines for law enforcement officers, efficacy of annual mental health checks for law enforcement officers, expansion of peer mentoring programs, and ensuring privacy considerations for these types of programs;
2. Mental health practices and services in the U.S. Departments of Defense (DoD) and Veterans Affairs (VA) that could be adopted by federal, state, local, or tribal law enforcement agencies; and
3. Case studies of programs designed primarily to address officer psychological health and well-being.

The first report, Law Enforcement Mental Health and Wellness Act: Report to Congress, includes 22 recommendations to Congress ranging from supporting programs to embed mental health professionals in law enforcement agencies to supporting the development of model policies and implementation guidance for law enforcement agencies to make substantial efforts to reduce suicide.

The case studies report, Law Enforcement Mental Health and Wellness Programs: Eleven Case Studies, is designed to provide an overview of multiple successful and promising law enforcement mental health and wellness strategies with the joint aims of informing Congress, state and local government officials, and the law enforcement field. The report includes 11 case studies from a diverse group of sites across the United States.

The Department of Justice is pleased to respond to the LEMHWA as officer safety, health, and wellness is a longstanding priority of the agency. The reports released today address some of the most pressing issues currently facing our law enforcement community.

The COPS Office has a near 25-year history of supporting the efforts of state, local and tribal law enforcement, including the management of the National Blue Alert Network. The agency awards grants to hire community policing officers, develop and test innovative policing strategies, and provide training and technical assistance to community members, local government leaders, and all levels of law enforcement. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.

PORTLAND, Ore.—Gloria Harris, 48, of Las Vegas, Nevada, was sentenced today to 39 months in federal prison and three years’ supervised release for operating a fraudulent tax return business. Harris was also ordered to pay more than $548,000 in restitution.

As part of the scheme, Harris prepared more than 100 fraudulent tax returns requesting nearly $600,000 in fraudulent refunds from the IRS.

According to court documents, between 2012 and 2016, Harris operated a covert tax preparation scheme whereby she would file client tax returns as “self-prepared” returns to mask her participation in the filings. Harris would increase the size of the fraudulent returns by falsely claiming that unrelated children were dependents to qualify clients for various tax breaks including the Earned Income Tax Credit.

Harris began to raise suspicion among certain clients by refusing to provide copies of file returns, chastising them for asking questions in writing, and withholding refunds. On one occasion, Harris delivered a $1,400 “refund” in cash to a client in a parking lot. Investigators later learned that this client was a due a refund of more $8,500 from the IRS.

Harris previously pleaded guilty to one count each of making false, fictitious, or fraudulent claims against the U.S. and aggravated identity theft on July 18, 2018.

This case was investigated by IRS Criminal Investigation and prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—On Tuesday, April 16, 2019, Mark Aaron Culp, 56, of Columbia City, Oregon, pleaded guilty to knowingly trafficking counterfeit, Chinese-made Leupold-branded rifle scopes online. Leupold & Stevens, Inc., an Oregon company, manufactures its rifle scopes in Beaverton, Oregon.

According to court documents, between May and July 2015, Culp sold rifle optics bearing various Leupold trademarks and design features online via at least two commercial websites: GunBroker.com and eBay. Culp sold 13 counterfeit rifle scopes that he had imported from China, generating approximately $3,700 in revenue.

Culp’s sales were discovered by Leupold & Stevens personnel.  They purchased a scope from Culp online, confirmed that it was counterfeit, and referred the matter to the Beaverton Police Department and the Department of Homeland Security’s Bureau of Immigration and Customs Enforcement.

Culp faces a maximum sentence of 10 years in prison, a $2 million fine and 3 years of supervised release. He will be sentenced on July 18, 2019 before U.S. District Court Judge Anna J. Brown.

This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI). It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—On Thursday, April 10, 2019, Paul Eugene Thomas, 38, of Portland, pleaded guilty to one count of conspiring to manufacture, possess with intent to distribute, and distribute marijuana and maintaining drug involved premises, and one count of money laundering for his role in a vast conspiracy to traffic marijuana grown in Portland to Virginia and Texas.

According to court documents, Thomas and co-defendants Jody Tremayne Wafer, 29, Trent Lamar Knight, 30, and Brittany Lesanta Kizzee, 28, of Houston, Texas and Raleigh Dragon Lau, 33, also of Portland, conspired to manufacture marijuana in Portland, transport it across state lines, and sell it in Virginia and Texas.

Drug proceeds, in the form of bulk U.S. currency, were returned to Oregon via U.S. mail and passenger luggage on commercial airlines. As part of this investigation, federal authorities have seized approximately 11,000 marijuana plants, 546 pounds of processed marijuana, more than $2.8 million in cash, 51 firearms, 26 vehicles, trailers, pieces of heavy equipment, a yacht, and three houses used as marijuana grow sites, all since August 2017.

Conspiring to manufacture, possess with intent to distribute, and distribute marijuana and maintaining drug involved premises carries a maximum sentence of 40 years in prison, a mandatory minimum sentence of 5 years in prison, a $5 million fine, and a lifetime of supervised release. Money laundering carries a max sentence of 20 years in prison, a $250,000 fine, and three years’ supervised release. As part of the plea agreement, Thomas has agreed to forfeit any criminally-derived proceeds and property used to facilitate his crimes identified by the government prior to sentencing.

Thomas will be sentenced on August 6, 2019 before U.S. District Court Judge Robert E. Jones.

Kizzee entered a guilty plea on November 27, 2018, and is scheduled to be sentenced on May 7, 2019. Lau and Knight have scheduled change of plea hearings for April 22, 2019 and May 8, 2019, respectively. Wafer is scheduled for trial on June 18, 2019.

In a related case, in August 2018, Cole William Giffiths was charged of conspiring to manufacture marijuana in Hood River, Oregon and shipping it to Florida. He has scheduled a change of plea hearing for April 22, 2019.

This case was investigated by the U.S. Drug Enforcement Administration, IRS Criminal Investigation, Homeland Security Investigations and the FBI. It is being prosecuted by the U.S. Attorney’s Office 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.—John Joseph Wallace, Jr., 35, of Madras, Oregon, was sentenced today to 72 months in prison and life term of supervised release for the repeated sexual abuse of a minor.

According to court documents, the government’s investigation of Wallace began in January 2018, when Warm Springs Tribal Police officers responded to Wallace’s home on the Warm Springs Indian Reservation. Officers were responding to a report that Wallace had abused a young girl. The minor victim and her mother, who contacted police to report Wallace’s crimes, are both Warm Springs tribal members.

An investigation later revealed that Wallace, over a period of years, had repeatedly abused the child by touching her breasts, buttocks, and genitals, both over and under her clothing. Wallace used his cell phone to communicate with the child and facilitate multiple incidents of abuse at his home on the reservation and on a separate occasion in Madras.

On January 3, 2019, Wallace pleaded guilty in federal court to three counts of abusive sexual contact with a minor. In a related state court matter, Jefferson County Circuit Court Judge Annette C. Hillman found Wallace guilty of attempted sexual abuse in the first degree and official misconduct in the first degree. Wallace will be sentence in state court on April 12, 2019.

This case was investigated by FBI Portland’s Safe Trails Task Force, the Warm Springs Tribal Police Department, and the Oregon Department of Justice. It was prosecuted federally by Paul T. Maloney, Assistant U.S. Attorney for the District of Oregon.

The Safe Trails Task Force (STTF) unites FBI and other 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.

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

PORTLAND, Ore.—A criminal complaint was filed today in federal court alleging John Phillip Stirling, 65, a citizen of Canada, illegally possessed with the intent to distribute methamphetamine aboard a U.S. flagged vessel.

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 225 nautical miles from Newport, Oregon. The vessel, named Mandalay, had a home port of Seattle, Washington and visible U.S. registration numbers. When Coast Guard personnel attempted to communicate with Stirling, he went below deck and would only respond via VHF radio. Once Coast Guard personnel determined the Mandalay was a U.S. flagged vessel, 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, Sterling’s speech began to deteriorate and he displayed signs of a possible drug overdose. 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.

Coast Guard personnel conducted a search of the Mandalay and discovered 28 seven-gallon jugs containing liquid methamphetamine.

Stirling made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman. Stirling was ordered detained pending trial.

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

This case is being investigated by the U.S. Coast Guard Investigative Service (CGIS) and Homeland Security Investigations (HSI).

PORTLAND, Ore.—David Ernest Otto, 50, of Tigard, Oregon, was sentenced today to 180 months in federal prison and lifetime supervised release after finding, contacting, grooming and sexually exploiting seven minor girls ages 13-to-17 using a variety of social media platforms.

According to court documents, on November 20, 2016, the mother of one of Otto’s minor victims contacted the Sonora Police Department in Sonora, California to report that her fifteen-year-old daughter had been communicating on Instagram with an unknown adult male. An analysis of the victim’s chat log revealed that she had engaged in highly sexual conversations with another Instagram user and, when prompted, sent the user nude photos of herself. Investigators linked the subject’s Instagram account to Otto using the IP address of his home in Tigard.

Following execution of a search warrant at the Tigard residence, investigators analyzed the data on Otto’s seized digital devices and discovered six additional minor victims located around the country.  FBI agents, in cooperation with local officials, then sought to locate and interview the victims.  The victims described similar crimes, in which Otto contacted them on social media or via the internet and, having built rapport with them, directed them to produce and send him images and videos of child pornography.

On February 6, 2018, Otto pleaded guilty to one count of production of child pornography.

This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) and Sonora Police Department and was prosecuted by the U.S. Attorney’s Office for the District of Oregon.

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

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

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 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.

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.

“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”

“Protecting the rights and dignity of crime victims is as important a part of the administration of justice as completing an investigation or bringing a case to trial,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Every day in courtrooms across the country, crime victims show great courage and strength by participating in the judicial process. It’s this courage that inspires prosecutors and law enforcement to tirelessly pursue justice in every case. I am proud to honor these victims and the people who serve them.”

OVC and the U.S. Attorney’s Office encourages widespread participation in the week’s events and in other victim-related observances throughout the year. The Justice Department will host OVC’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019 to honor outstanding individuals and programs that serve victims of crime. 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.

If you or someone you know has been a victim of a crime, please contact your local law enforcement agency or your nearest FBI office immediately. The FBI Portland Field Office can be reached at (503) 224-4181.

PORTLAND, Ore.—Harry Dean Proudfoot III, 79, formerly a resident of Tigard, Oregon, was sentenced today to 84 months in federal prison and three years’ supervised release for running a fraudulent gold mining investment scheme and stealing approximately $4 million from more than 140 investors.

According to court documents and information shared at trial, in 2008, Harry Proudfoot created 3 Eagles Research and Development, a company based in Tigard, that he used from 2008 through 2012 to solicit investors for a purported goldmining operation in Ohio. Harry Proudfoot, along with his adult children, including co-defendant Matthew Proudfoot, falsely promised to use investors’ money to purchase mining equipment and conduct mining operations at two gravel pits in Ohio.

To entice investors, Proudfoot and his children offered high rates of return, typically 10% of gross revenues, payable once the mine became operational. They falsely told investors they had all the necessary legal and business requirements in place for the mining operation.

At the same time, Proudfoot and his children withheld important facts from investors including that Harry Proudfoot had received cease and desist orders from the States of Alaska and Oregon for selling unregistered securities through material misrepresentations in 1992, 1993, and 2003 and that Matthew Proudfoot had filed for bankruptcy in 2010. Rather than using investor money as promised, they diverted it to their personal use, funding living expenses, cars, travel, credit card bills, medical payments, lulling payments and other expenses to keep the scheme afloat.

In 2011, the U.S. Securities and Exchange Commission (SEC) began investigating the group for securities violations. Ultimately, the U.S. District Court for the District of Oregon entered a judgment against Harry Proudfoot, Matthew Proudfoot and the 3 Eagles Research and Development Company in the SEC enforcement action

On December 13, 2018, a federal jury convicted Proudfoot of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering.

Proudfoot’s son and co-defendant Matthew Proudfoot pleaded guilty to wire fraud and money laundering on November 1, 2017. He will be sentenced on July 8, 2019.

The case was investigated by the FBI and IRS Criminal Investigation, and prosecuted by Scott E. Bradford and John C. Brassell, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore.—Esteban Guillen Ramirez, 53, of Guadalajara, Jalisco, Mexico, was sentenced today to one year in federal prison and three years’ supervised release for his role in a complex black market peso exchange money laundering scheme. The scheme was uncovered in 2015 following a lengthy investigation by the U.S. Drug Enforcement Administration (DEA) into a Portland-based heroin trafficking organization.

In February 2015, the DEA executed multiple search warrants throughout the Portland and Vancouver, Washington metropolitan area following a long-term heroin trafficking investigation. Agents arrested over twenty drug trafficking defendants, seized multiple kilos of heroin and seized over $400,000 in bulk cash. At one search location, agents seized evidence of bank deposit slips and deposit instructions, in which heroin traffickers deposited drug proceeds into multiple wholesale businesses in the Los Angeles Fashion District.

Agents began a money laundering investigation. Bank records showed that the majority of cash deposits made by Portland heroin traffickers into the Los Angeles wholesale business bank accounts were systematically structured to avoid detection by the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).

In November 2015, agents executed 14 federal search warrants in the Los Angeles Fashion District. At four separate wholesale businesses, agents seized financial records identifying Stefano Fashions as the beneficiary of the cash deposits made by the Portland heroin traffickers. Stefano Fashions, owned by Guillen Ramirez, is a successful Guadalajara business engaged in the sale of women’s accessories and cosmetics. Financial investigators found evidence of a high volume of structured cash deposits and large quantities of bulk cash delivered to the wholesale businesses on behalf of Stefano Fashions. While this financial activity was highly unusual for a U.S. wholesale business, it was a telltale sign the Los Angeles Fashion District businesses and Stefano Fashions were participating in a black market peso exchange scheme to launder the drug proceeds of a Mexican drug trafficking organization.

A black market peso exchange is a trade based money laundering scheme commonly used by Mexican drug trafficking organizations to obtain pesos in exchange for U.S. dollars acquired from narcotics sales in the U.S. This complex money laundering scheme involves money derived from the sale of drugs in the United States that is laundered through wholesale business in the Los Angeles Fashion District in order to repatriate the drug proceeds back to Mexican drug trafficking organizations.

In July 2018, federal agents arrested Guillen Ramirez in Las Vegas, Nevada. Guillen Ramirez pleaded guilty to one count of conspiracy to commit money laundering on December 13, 2018. Five Los Angeles wholesale business owners and one former CEO pled guilty to money laundering, tax and structuring related crimes. Each of the business owners that has been sentenced was required to a serve prison term and more than $2 million has been seized, forfeited or applied to restitution.

Following this money laundering investigation, the national bank used by the drug traffickers to deposit proceeds, changed its policy governing third party cash deposits. Prior to this investigation, this national bank allowed third parties to make cash deposits under $10,000 into personal bank accounts without providing identification. The bank now requires individuals making cash deposits into third party accounts to provide identification and be an authorized user of the account.

This case was the result of a joint investigation by the DEA, Homeland Security Investigations (HSI), IRS-Criminal Investigation, and the U.S. Marshals Service. The money laundering prosecution was led by Steven T. Mygrant, 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. In 2018, the case was recognized nationally by OCDETF with the Outstanding Investigation Award for the Financial Investigation of an Opioid Network.

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.

WASHINGTON— The Office of Justice Programs’ Office for Victims of Crime today awarded more than $8 million to support crime victims in Native American communities in six states: Alaska, California, Maine, Oregon, Washington and Wisconsin. The group of 13 awards is the third in a series of grants being made by OVC to American Indian and Alaska Native communities. OVC has now awarded more than $17 million of nearly $100 million to support tribal victim service programs.

The awards—30 in total so far—will fund critical crime victim services, such as counseling, transitional housing, emergency services and transportation. The grants are supported by the Crime Victims Fund, a repository of federal criminal fines, fees and special assessments. The fund includes zero tax dollars.

“American Indian and Alaska Native communities face extensive public safety challenges, but through creative approaches that combine traditional methods with innovative solutions, they are demonstrating their determination to meet the needs of victims in their communities,” said OJP’s Principal Deputy Assistant Attorney General Matt M. Dummermuth. “These grants, part of historic levels of funding awarded by the Department of Justice to American Indian and Alaska Native communities, will provide significant resources to bring critical services to those who suffer the effects of crime and violence.”

“One of our priorities in the District of Oregon is our unwavering commitment to members of tribal communities. Our office stands firmly on the side of tribal victims and will continue to work tirelessly pursuing justice on their behalf,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The Justice Department’s tribal grant programs ensure all tribes have the resources necessary to support victims and keep their communities safe.”

According to OJP’S Bureau of Justice Statistics, American Indians and Alaska Natives experience violent crime at rates far greater than the general population.

Two Oregon tribes were among the 13 receiving grant awards today. Nearly 170 tribes are expected to receive funding this spring to help their communities support crime victims over the next three years:

• The Klamath Tribes of Oregon (Oregon) was awarded $396,793 to enhance existing services and outreach to victims of domestic violence, sexual assault, stalking, sex trafficking, and dating violence.
• The Cow Creek Band of Umpqua Tribe of Indians (Oregon) was awarded $714,783 to offer longer term transitional housing to provide stability for families and individuals while they receive restorative services.
• Aroostook Band of Micmacs (Maine) was awarded $569,086 to expand the existing victim services program by providing 24/7 staffing of the emergency shelter.
• Bad River Band of Lake Superior Tribe of Chippewa Indians (Wisconsin) was awarded $699,925 to create a central location for the victim services program, currently located in multiple locations on the reservation, and expand their crime victim services to include children and elders.
• The Jamestown S'Klallam Tribe (Washington) was awarded $369,176 to establish a satellite Children’s Advocacy Center at the Jamestown Tribe to increase accessibility to culturally relevant services; state-of-the-art recording equipment; and skilled, trained forensic interviewers.
• The Scotts Valley Band of Pomo Indians (California) was awarded $546,586 to build a culturally relevant, long-term strategic plan to improve services to victims; and develop programming around the concept of historical intergenerational trauma therapy using a practice-based curriculum.
• The Karuk Tribe (California) was awarded $719,970 to improve access to, and delivery of, services to victims of crime by establishing a Victim Services Access Center, which will include secure space for a victim interview room and a private waiting area for victims.
• The Bishop Paiute Tribe (California) was awarded $715,750 to enhance services provided through Relief After Violent Encounters by expanding the victim service program to include direct emergency supportive services.
• The Central Council Tlingit & Haida Indian Tribes of Alaska (Alaska) was awarded $1,413,000 to implement a culturally appropriate response to address elder abuse and provide crime victim services for the Native older adult population within the Juneau urban area, and also serve victims in the villages.
• The Puyallup Tribe of Indians (Washington) was awarded $407,448 to expand existing services by strengthening their continuum of care for homeless victims of crime and for victims with alcohol and substance abuse issues. Funding will also support culturally appropriate inpatient treatment services at a local or regional treatment center.
• The Big Valley Rancheria Band of Pomo Indians (California) was awarded $670,443 to conduct a community needs assessment and develop a strategic plan to help inform the implementation of crisis intervention services for men, boys, and elders who are victims of crime. The tribe will also improve case management, incorporate healing and cultural practices into their victim advocacy services, and expand community outreach and education to help connect victims to vital resources.
• The Tetlin Tribal Council (Alaska) was awarded $513,865 to conduct a community needs assessment and create a strategic plan that will guide the development, implementation, and expansion of victim services.
• The Aleut Community of St. Paul Island Tribal Government (Alaska) was awarded $562,200 to expand existing services and develop additional services for victims of crime through strategic planning and enhanced training of program staff.

“American Indian and Alaska Native crime victims continue to face challenges in accessing vital services and resources needed to help survivors address their trauma and navigate a complex system,” said OVC Director Darlene Hutchinson. “The Justice Department has made it a priority to partner with tribes to help victims and their families rebuild their lives in the aftermath of violence.”

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership, grants and resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.

PORTLAND, Ore.—Deshawn Antonio Kelly, 27, a Portland resident and former baggage handler at Portland International Airport, pleaded guilty today to five counts of possessing a stolen firearm after he was caught stealing firearms from the checked luggage of airline passengers.

According to court documents, between August 19, 2018 and September 17, 2018, Kelly was employed as a contract baggage handler at Portland International Airport. Over a four-week period beginning August 19, 2018, Kelly stole six firearms— three 9mm pistols, two .40 caliber pistols and one .45 caliber pistol—from five different checked bags. The guns were checked by passengers traveling to and from Oregon.

On September 25, 2018, Kelly was arrested at the airport and search warrants were conducted on his person, vehicle and residence. Kelly admitted to stealing the six firearms, and told investigators where they were located.

A charge of possessing a stolen firearm carries a maximum sentence of 10 years in prison, a $250,000 fine and three years’ supervised release. Kelly will be sentenced on July 29, 2019 before U.S. District Court Judge Michael H. Simon.

This case was investigated by the FBI and the Port of Portland Police and is being prosecuted by Hannah Horsley, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—Bruce L. Lamon, 64, of Hillsboro, Oregon, pleaded guilty today to one count of tax evasion after failing to pay $744,000 in personal income taxes.

“As a retired attorney, Lamon was well-versed in the law and clearly knew tax evasion was a crime. It’s a crime of greed and arrogance that hurts every citizen who lawfully pays their taxes,” said Billy J. Williams, U.S. Attorney for the District of Oregon.

“Mr. Lamon’s chosen profession to serve those seeking justice from the law stands in stark contrast to his admission of guilt to evade his personal tax liability,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation prioritizes bringing to justice individuals who engage in tax evasion in order to protect the integrity of the tax system by ensuring everyone pays their share.”      

According to court documents, between 2006 and 2012, Lamon worked as a commercial litigator at a law firm in Honolulu, Hawaii earning a substantial income. After retiring in 2012, he withdrew all the funds in his retirement account—approximately $395,000—and moved to Hillsboro. As of mid-October 2015, Lamon owed approximately $744,000 in individual income taxes for calendar years 2008 through 2013. To conceal his assets from the IRS and evade payment of his taxes, Lamon paid cash for vehicles, titling them in his former spouse’s name, and purchased rental properties with cash using an LLC registered in Hawaii.

On October 22, 2018, a federal grand jury in Portland returned a two-count indictment alleging Lamon evaded payment of his taxes for calendar years 2008 through 2013 and failed to disclose rental income in an application to proceed In Forma Pauperis in a civil case he filed in federal court in 2016.

Lamon faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on July 9, 2019 before U.S. District Court Judge Marco A. Hernandez.

As part of the plea agreement, Lamon will pay $744,000 in restitution to the IRS. At sentencing, the government will move to dismiss Count 2 of the October 2018 indictment charging Lamon with giving a false statement.

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

The U.S. Attorney’s Office and IRS-CI remind Oregonians that tax day is Monday, April 15, 2019. For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the IRS website: https://www.irs.gov/help-resources.

Downloadable file: PDF Press Release
Downloadable file: Fusion Wellness Clinic
Downloadable file: Cash Found in DeMille Bedroom (1)
Downloadable file: Cash Found in DeMille Bedroom (2)

Prosecution marks the first opioid pill mill case in the District of Oregon

PORTLAND, Ore.—Former nurse practitioner Julie Ann DeMille, 60, of Portland, was sentenced today to 48 months in federal prison and three years’ supervised release for illegally distributing prescription opioids, filing a false tax return and lying to federal agents.

“Our nation is drowning in substance abuse. We must wake up to this reality and stop pushing the reckless use of controlled substances. DeMille treated her nursing credentials like a license to deal opioids—a drug dealer masquerading as a medical professional. It’s hard to comprehend that in the midst of the deadliest drug crisis in history, DeMille risked the lives of hundreds to turn a profit,” said Billy J. Williams, U.S. Attorney for the District of Oregon.

“Opioid abuse is devastating our communities and we must respond aggressively to stem the flow because every person lost in this crisis is one too many,” said DEA Special Agent in Charge Keith Weis.

“This case is an excellent example of how the financial expertise of IRS-Criminal Investigation employees contributes to the federal law enforcement fabric,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation is committed to serving the U.S. taxpayers and working with our partners to make our communities safer. DeMille has been held accountable for her actions and we will continue to investigate and seek prosecution of individuals who do not report their taxable income, regardless of whether the income is legal or illegal.”          

According to court documents, in January 2015, DeMille opened the Fusion Wellness Clinic on Southeast 122nd Avenue in Portland across the street from the Multnomah County Parole and Probation Office. From the clinic’s opening until July 2016, DeMille illegally wrote thousands of prescriptions for opioids including oxycodone and hydrocodone.

As early as 2013, DeMille began planning a move from Houston, Texas to Portland. She was attracted to Oregon where licensed nurse practitioners can write prescriptions without the oversight and approval of a physician. She moved in 2014 and was hired by a publicly funded, county health clinic. From the beginning, DeMille planned to subsidize her county income by operating an illegal opioid pill mill. By the end of 2014, DeMille had registered the “Fusion Wellness” business name and begun searching for clinic locations.

After DeMille’s first clinic opened in January 2015, word spread quickly that the small, cash-only operation was a reliable source for cheap and easy opioid prescriptions. On Friday and Saturday mornings, customers would spill into parking areas outside the clinic and wait in cars for their turn in the cramped office. The clinic quickly outgrew its original location and, in April 2015, was moved to a new location on Northeast 101st Avenue in Portland.

Before long, DeMille’s prescribing habits began attracting the attention of law enforcement and the Oregon State Board of Nursing. Shortly after the clinic opened, three of DeMille’s patients attempted to fill identical prescriptions for 30mg doses of oxycodone together at a local pharmacy. The pharmacist turned the patients away and contacted police. A Gresham police officer later contacted DeMille by phone to discuss the prescriptions and forwarded a copy of the general offense report to the state nursing board. The nursing board opened an investigation into DeMille’s prescribing practices just three weeks after the clinic opened.

In early 2015, the clinic’s patient files included very few records. Knowing her lax prescribing practices and record keeping would not pass investigative scrutiny, DeMille began forging patient signatures on newly created forms. In March 2015, DeMille met with nursing board investigators to discuss the complaint and her prescribing practices. During the course of the interview, she repeatedly lied about the nature of her practice, insisting that the clinic’s patients were treated for simple chronic diseases and a variety of other wellness issues. Ultimately, the nursing board issued a letter of concern to DeMille, but did not pursue disciplinary action.

DeMille quickly altered her practices in response to the nursing board’s investigation in an attempt to avoid further detection. Throughout the remainder of 2015, DeMille continued her work at the county health clinic while operating the clinic just two days a week. In a typical day at the clinic, DeMille saw up to 20 patients, charging each $200 in cash. In 2015, the clinic generated at least $388,000 in revenue, none of which was reported on DeMille’s income tax return. In July 2016, while conducting a federal search warrant, DEA agents found more than $51,000 in cash stored in DeMille’s bedroom.

In 2015 alone, according to data from the Oregon Prescription Drug Monitoring Program, DeMille wrote more than 1,940 prescriptions for controlled substances. Together, these prescriptions resulted in the distribution of more than 219,000 pills, 96.7% of which were opioids.

DeMille pleaded guilty on December 12, 2018 to two counts of illegally distributing a controlled substance and to one count of filing a false tax return and lying to federal agents.

DeMille’s co-conspirator and former Fusion Wellness Clinic manager, Osasuyi “Ken” Idumwonyi, pleaded guilty on February 28, 2017, to conspiring to distribute or dispense and possessing with intent to distribute or dispense the Schedule II controlled substances oxycodone and hydrocodone. He will be sentenced on June 3, 2019.

This case was investigated by the Drug Enforcement Administration, Internal Revenue Service, U.S. Marshals Service and Portland Police Bureau. It was prosecuted by Thomas S. Ratcliffe and Donna Brecker Maddux, Assistant U.S. Attorneys for the District of Oregon.

Drug abuse affects communities across the nation, and opioid abuse continues to be particularly devastating. The CDC reports that from 1999 to 2016, more than 630,000 people have died from a drug overdoses. In 2016, 66% of drug overdose deaths involved an opioid. Drug overdose is now the leading cause of injury or death in the United States. In Oregon, the total number of deaths related to drug use increased 11 percent between from 2013 to 2017, with 546 known drug related deaths in 2017.

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

PORTLAND, Ore.—On Friday, March 15, 2019, a federal jury found Dat Quoc Do, 28, of Madras, Oregon, guilty of two counts of unlawful use of a weapon for discharging a firearm during a road rage altercation on the Warm Springs Indian Reservation in September 2017.

“There is simply no excuse for this sort of violence in our community. Mr. Do’s actions are very serious and could have critically injured or killed an innocent motorist,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The jury clearly saw this case for what it is: an egregious and preventable overreaction to an otherwise ordinary event on the highway.”

“These acts are shocking.  Handguns are not video games and this is not a movie,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “By shooting towards another car, Mr. Do put lives in danger and traumatized the occupants including a child inside the vehicle.”

According to court documents and information shared during trial, on September 14, 2017, Do was riding in the front passenger seat of a vehicle driven by his girlfriend, Thao Bich Tran. The two were driving at night eastbound on Highway 26 on the Warm Springs Indian Reservation when they came upon another eastbound vehicle being driven by an adult member of the tribe. Also in the second vehicle were the driver’s adult daughter and 12-year-old niece.

Tran was tailgating the vehicle when the other driver motioned for her to pass. At some point in the encounter, the other driver’s adult daughter threw a water bottle at, but did not hit Tran and Do’s vehicle. In response, Do fired several shots out the front passenger window of their vehicle, but did not hit the other driver’s vehicle. After the initial shooting, Tran raised the passenger window and continued to the follow the other vehicle. When Tran had a clear lane to pass, she moved to change lanes.

As Tran began to overtake the other vehicle, Do extended his hand holding a handgun out of their vehicle’s front passenger window. Believing that Do was pointing the gun in her direction, the other driver rapidly applied her brakes. Do fired several additional rounds as Tran drove away.

The other driver called Warm Springs Tribal Police to report the incident while continuing to follow Tran and Do’s vehicle. A patrol officer later stopped their vehicle and ordered Tran and Do out at gunpoint. Both were taken into custody. Officers recovered a Springfield Armory XD .45 caliber handgun in the front-passenger door pocket of the vehicle and a .45 caliber magazine partially loaded with five rounds in the center console.

Do faces a maximum sentence of five years in prison. He will be sentenced on Monday, June 10, 2019 before U.S. District Court Judge Michael H. Simon.

This case was investigated by the FBI and the Warm Springs Tribal Police Department and prosecuted by Paul T. Maloney and Lewis S. Burkhart, Assistant U.S. Attorneys for the District of Oregon.

MEDFORD, Ore.—On Wednesday, March 13, 2019, a federal jury found Theodore Martin Kirk, 64, of Klamath County, Oregon, guilty of 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.

"This case began with a single tip from an observant community member and led to the discovery of a multi-year scheme to exploit the Social Security program—a critical tax payer-funded program supporting the nation’s elderly. Tips play an important role in law enforcement and help to reveal crimes that might otherwise go undiscovered," said Billy J. Williams, U.S. Attorney for the District of Oregon.

According to court documents and information shared during trial, in July 2015, a concerned community member contacted the Klamath County Sheriff’s Office regarding the whereabouts of Ms. Kirk as she had not been seen for multiple years. At the time of this call, Ms. Kirk would have been 98 years old. Shortly thereafter, a sheriff deputy visited the residence shared by Ms. Kirk and her son, Theodore, in Bonanza, Oregon. Mr. Kirk claimed his mother had left with friends to travel to California two months prior, but would not permit the deputy to enter his property to confirm his mother was not there.

In an August 2015 interview with a detective, Mr. Kirk again told law enforcement he believed his mother was in California with friends. He added that it had been "quite some time" since his mother had seen a doctor despite having suffered from multiple strokes. Mr. Kirk claimed to be suspicious of his mother’s medications and reported previously removing her from them. Further, he acknowledged that he shared a joint checking account with his mother, into which her monthly Social Security payments were deposited.

Later in August, the Social Security Administration suspended payments to the Kirk’s joint checking account based on Ms. Kirk’s unknown whereabouts. A Social Security investigator reviewed Ms. Kirk’s bank records and found that the last transaction bearing her signature was dated January 2010. From January 2010 until August 2015, over $1,000 in benefits were deposited monthly into the joint checking account and nearly every month, Mr. Kirk would withdraw the entire amount in cash. All of the withdrawals from the account occurred in Oregon, not in California were Ms. Kirk was purported to be.

In August 2017, investigators conducted a search of the Kirk property and recovered a detailed calendar kept by Mr. Kirk. Prior to 2010, the calendar included activities for both Mr. Kirk and his mother. The calendar revealed a series of strokes experienced by Ms. Kirk beginning in 2004 and continuing into the beginning of 2010, where the calendar showed she experienced two strokes in three days. Following the multiple strokes, there were no additional calendar entries for Ms. Kirk’s activities.

Mr. Kirk faces a maximum sentence of ten years in prison. He will be sentenced on Thursday, June 27, 2019 before U.S. District Court Judge Michael J. McShane.

This case was investigated by the Social Security Administration, Office of Inspector General with the assistance of the Klamath County Sheriff’s Office and prosecuted by Adam E. Delph and Gavin W. Bruce, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore.—Ronald Eugene Stover, 65, of Tualatin, Oregon, was sentenced today to five years of probation including two years’ house arrest for money laundering and engaging in a scheme to defraud investors.

U.S. District Court Judge Ann Aiken also ordered Stover to pay more than $3.2 million in restitution to his victims and $168,883 to satisfy a forfeiture money judgment. The court cited Stover’s age and poor health in issuing a probationary sentence.

According to court documents, beginning in 2010, Stover began soliciting short-term loan investments to fund various Xtreme Iron capital projects. Stover claimed to have a long track records of success in real estate development, business and banking and relied heavily on investor introductions made by other professional intermediaries to establish his credibility. Xtreme Iron owned a heavily-leveraged fleet of Caterpillar and John Deere heavy equipment in Frisco, Texas and maintained an office in Wilsonville, Oregon.

At Stover’s urging, investors sent funds to Tri-Core Funding Group, an entity wholly owned and controlled by Stover. Stover falsely claimed the company had a sound business model, strong growth opportunities and manageable debt exposure. In addition to Stover’s many false claims about the business’s health and viability, he advanced many falsehoods about the nature of the investment opportunity including, but not limited to: investor funds would be used exclusively for business purposes, Stover himself would provide additional capital sourcing from his own funds and investors would receive short-term repayment of their loan notes plus interest.

In May 2012, Stover emailed a victim soliciting funds to purchase heavy equipment from Caterpillar. In response to the solicitation, Stover executed a 30-day loan note promising repayment plus interest. The victim wired $175,000 to Tri-Core Funding Group the next day. Unbeknownst to the victim, Stover never intended to use the money as promised. Immediately after receiving the funds, Stover used the funds to make over a year’s worth of mortgage payments on his residence in Tualatin, which was on the brink of foreclosure. Stover never repaid his victim.

Stover previously pleaded guilty to one count of money laundering on November 13, 2018.

The IRS and FBI investigated this case. It was prosecuted by Donna Brecker Maddux and Julia E. Jarrett, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore.—Attorney General William P. Barr and U.S. Attorney Billy J. Williams today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.

"Crimes against the elderly target some of the most vulnerable people in our society," Attorney General William P. Barr said. "But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors."

"Today’s sweep sends a clear message that the Department of Justice is determined to hold accountable criminals who prey on our elderly citizens," said Billy J. Williams, U.S. Attorney for the District of Oregon. "I want to thank our law enforcement partners from across the federal government as well as the many state, local and tribal agencies here in Oregon who assisted in bringing these cases and helping to put an end to these shameful schemes."

Three District of Oregon cases were included in the sweep:

U.S. v. Stevens et al.

On January 8, 2019, a federal grand jury returned a six-count indictment charging Portland couple Ronnie Stevens, 49, and Tina Ephrem, 43, with wire fraud after they conspired to defraud an elderly couple of money and property. Stevens and Ephrem stole more than $1.5 million from the adult victims and spent the proceeds on utility bills, restaurants, cigars, retail purchases and travel to locations including Hawaii, Anaheim, California, Las Vegas, Nevada and the Spirit Mountain Lodge in Grand Ronde, Oregon. The couple was arrested on January 11, 2019 and ordered detained pending a five-day jury trial beginning on June 10, 2019. Read more.

U.S. v. Gregory

On January 22, 2019, Rodney Paul Gregory, 64, of Lebanon, Oregon, pleaded guilty to one count each of wire fraud and money laundering for his role in online romance scams, some of which targeted the elderly. Between May 2017 and January 2019, Gregory acted as a money mule, receiving proceeds from various scams and wiring the money into overseas bank accounts. Gregory faces a maximum sentence of 20 years in prison, a $250,000 fine and three years’ supervised release and will be sentenced on April 4, 2019. Read more.

U.S. v. Tucker

On February 12, 2019, Tayva Tucker, 41, of Madras, Oregon, pleaded guilty to one count of theft of government funds for stealing nearly $40,000 in Social Security payments from ten mentally disabled adults. Tucker was employed by a social services organization where she oversaw outreach to mentally disabled clients as part of the organization’s mental health program. An organizational audit uncovered unusual movement of funds between various client accounts, as well as funds transferred from client accounts to Tucker. When confronted, Tucker admitted to taking clients’ Social Security benefits for her personal use. Tucker faces a maximum sentence of 10 years in prison, a $250,000 fine and three years’ supervised release and will be sentenced on April 25, 2019. Read more.

The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. 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 millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.

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

Since passage of the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA), the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.

A fact-sheet with technical-support fraud case information can be found here.

A fact-sheet with cases on mass mailing fraud can be found here.

A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found here.

Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.

PORTLAND, Ore.—Miguel Merecias-Lopez, 24, of Woodburn, Oregon, pleaded guilty today to one count each of conspiracy to produce false identification documents and possession with intent to distribute methamphetamine.

According to court documents, from a time unknown until September 21, 2017, Merecias-Lopez and other co-conspirators were part of a Oaxaca, Mexico-based criminal conspiracy to produce and sell fraudulent U.S. government documents.

Conspirators, including Merecias-Lopez, maintained a clandestine photo lab in Woodburn where they used various computers, scanners, laminators, digital cameras and a high-resolution printer to produce the fraudulent documents. They would communicate with customers in-person and electronically via email, Facebook and Snapchat, and receive payments via PayPal, U.S. mail or in person.

On September 21, 2017, investigators arrested Merecias-Lopez in a fast food parking lot in Woodburn when he arrived to conduct a drug deal. More than a kilogram of methamphetamine was found on Merecias-Lopez’s person. A subsequent search of Merecias-Lopez’s apartment produced additional methamphetamine and equipment used in furtherance of the fraudulent document scheme. Investigators found and seized the materials needed to produce thousands of identification cards.

A review of electronic devices found in Merecias-Lopez’s apartment produced evidence that the conspiracy had operated in Woodburn for more than a decade and produced and sold more than 10,000 different fraudulent documents including driver’s licenses for more than 25 states, U.S. social security cards, immigration-related documents including non-immigrant visas and legal permanent resident cards, marriage licenses, vehicle bills of sale and titles, and birth certificates. Merecias-Lopez was personally responsible for producing more than 300 fraudulent U.S. government documents.

A charge of conspiracy to produce false identification documents carries a maximum sentence of 15 years in prison, a $250,000 fine and three years’ supervised release. A charge of possession with intent to distribute methamphetamine carries of maximum sentence of life in prison with a 10 year mandatory minimum sentence, a $10,000,000 fine and five years’ supervised release.

The government and defense counsel representing Merecias-Lopez are jointly recommending a sentence on the low-end of the non-binding U.S. Sentencing Commission guidelines range when he is sentenced on June 18, 2019 before U.S. District Court Judge Michael H. Simon.

This case was investigated by Homeland Security Investigations (HSI), the U.S. Drug Enforcement Administration (DEA), the Westside Interagency Narcotics Team (WIN), the Clackamas County Interagency Task Force (CCITF) and the Woodburn Police Department. It is being prosecuted by Peter D. Sax, Assistant U.S. Attorney for the District of Oregon.

PORTLAND—U.S. Attorney Billy J. Williams announced today that the District of Oregon collected $6,996,187 in criminal and civil actions in Fiscal Year 2018. Of this amount, $5,085,876 was collected in criminal actions and $1,910,310 in civil actions.

As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The FY 2018 collections are nearly seven times the appropriated $2.13 billion budget for the 94 U.S. Attorneys’ offices.

An example of the district’s collection efforts was U.S. v. Jumroon et al. On December 18, 2018, Paul Jumroon was sentenced to 37 months in prison for forced labor, visa fraud and filing false tax returns. Between 2011 and 2014, defendant Paul Jumroon and co-defendant Tanya Jumroon fraudulently obtained E-2 "investor" visas to bring Thai nationals into the United States to provide cheap labor at their restaurants in Lake Oswego, Oregon, and in Ridgefield, Washington. At sentencing, Paul Jumroon was ordered to pay more than $131,000 in restitution to his victims and more than $120,000 to the IRS. As part of his plea agreement, Jumroon also agreed to forfeit more than $80,000 in seized currency and gold bars and to a garnishment of more than $170,000 in retirement savings.

A second example is U.S. v. Hankins. In 2001, Anne Hankins pleaded guilty to bank fraud after submitting a false loan application for $350,000 to U.S. Bank Special Assets Group. Hankins was sentenced to 30 days in jail and, under the Mandatory Victims Restitution Act, ordered to pay $350,000 in restitution to U.S. Bank. Between 2002 and 2013, Hankins made sporadic payments ranging from $50 to $400 monthly. By July 2013, Hankins had paid $13,044. In September 2013, Hankins and Horton & Associates LLC, a firm U.S. Bank had previously assigned its restitution interest to, agreed to settle the outstanding restitution for a mere $5,000. In April 2015, the Treasury Offset Program garnished $21,765 from Hankins, who had stopped making restitution payments after her purported agreement with Horton & Associates LLC. Displeased with the garnishment, Hankins filed a motion in the district court for full satisfaction of the restitution judgment. The district court denied the motion and Hankins appealed.

The government successfully argued on appeal before the Ninth Circuit Court of Appeals that restitution cannot be settled for less than the full amount ordered and that if a victim declines

receipt of restitution, the balance should be paid to the national Crime Victims Fund. The ruling resulted in a full restitution judgment of $331,995 from Hankins going directly to the Crime Victims Fund.

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.

PORTLAND, Ore.—John M. Wasson, 74, of Irrigon, Oregon, was sentenced today to five years’ probation including 60 days in a community corrections facility for misusing a mining claim on the North Fork of the John Day River in the Umatilla National Forest resulting in the depredation of government property. Wasson was also ordered to pay $28,817 in restitution.

"Like all Americans, Oregonians expect public lands to be protected from degradation and misuse. This defendant, over a series of years, treated Forest Service land as if it were his own, causing significant environmental damage," said Billy J. Williams, U.S. Attorney for the District of Oregon. "We take these crimes seriously and will continue to pursue those who violate our shared resources."

"Our wild and scenic rivers are special places that hold many values for our public, while providing habitat and resources for a variety of species and ecosystems," said Eric Watrud, Umatilla Forest Supervisor. "I’m thankful for the professional support from DOJ to hold people accountable that ignore the rules on our public lands. Our National Forests provide a wide array of resources and benefits, which our multiple use mission sustains through wise use and permitted activities."

According to court documents, Wasson was the claimant on the Slippery Rocks Mining Claim, an unpatented claim giving him possessory interest in the site for prospecting, mining or processing operations. Beginning in 2012, Wasson developed a personal interpretation of mining laws that permitted him to take any action on the claim that he believed to be reasonably incident to his mining. Over a period of years, despite court orders, misdemeanor convictions and the U.S. Forest Service officials’ repeated attempts to work with Wasson to bring his conduct into compliance, Wasson’s misuse of the claim grew more expansive and egregious.

By 2017, Forest Service officials observed that Wasson established a semi-permanent encampment on the claim, violating Forest Service regulations prohibiting occupancy for more than 14 days in a 30 day period without Forest Service authorization. Wasson’s camp included three tents, one with a foundation Wasson constructed of treated lumber, sand and gravel; a camper; a truck and a pop-up outhouse. Wasson had constructed a new road to the claim by driving through a riparian area, compacting soil and native vegetation. Additionally, Wasson created a walking path across the John Day River and used plastic sheeting to line a wing dam he made to hold water. The plastic lining was catching and holding juvenile steelhead, preventing them from accessing the flowing portion of the river.

The Forest Service paid a hazardous waste disposal company more than $19,000 to remove three quarters of a ton of contaminated soil, 90 gallons of vegetable oil, and quantities of pesticides, insecticides and rodenticides from the campsite.

Wasson was previously found guilty of one count of depredation of government property in a four-day jury trial ending on November 8, 2018.

This case was investigated by the U.S. Forest Service and prosecuted by Jennifer Martin and John Brassell, Assistant U.S. Attorneys for the District of Oregon.

WASHINGTON – On March 1, Judge Marco A. Hernandez of the U.S. District Court for the District of Oregon entered an order revoking the naturalized U.S. citizenship of a convicted war criminal. The court held that defendant Sammy Rasema Yetisen aka Rasema Handanovic aka Zolja, a native of the former Yugoslavia, illegally procured her U.S. citizenship. The court’s order was based on its finding that Yetisen lacked the good moral character required to naturalize because she had executed six unarmed civilians and prisoners of war during the 1990s Balkans Conflicts because of their religion and ethnicity. She later concealed her crimes to procure refugee status and U.S. citizenship in the United States.

"War criminals will find no safe haven in the United States," said Principal Deputy Associate Attorney General Jesse Panuccio. "The Justice Department will continue to prosecute those who fraudulently obtain U.S. citizenship and willfully abuse our refugee program."

"Sammy Rasema Yetisen’s denaturalization is yet another example of the Justice Department’s enduring commitment to ensuring war criminals find no sanctuary in our country," said Billy J. Williams, U.S. Attorney for the District of Oregon. "The long passage of time will neither shelter nor immunize those who have defrauded the United States by concealing such heinous crimes."

Yetisen, 46, was part of an elite unit of the Army of the Republic of Bosnia and Herzegovina that attacked the village of Trusina in April 1993, in what is known as the Trusina massacre. The unit targeted Bosnian Croats who resided in the village because of their Christian religion and Croat ethnicity, killing 22 unarmed individuals including women and the elderly. Yetisen played a key role in the massacre, serving as part of a firing squad that lined up and executed six unarmed prisoners of war and civilians. Yetisen was admitted to the United States as a refugee before naturalizing in 2002. In her naturalization application, Yetisen indicated that she had never had any military service "in the United States or in any other place."

In April 2012, Yetisen was convicted in a Bosnian court pursuant to a guilty plea of war crimes against prisoners of war and war crimes against civilians based on the firing squad execution-style killings. In exchange for her plea and cooperation, Yetisen was sentenced to five years and six months in prison. Upon her release from prison, Yetisen returned to the United States and resides in Oregon. The Justice Department previously secured the denaturalization of Edin Dzeko, one of Yetisen’s fellow soldiers and another perpetrator of the Trusina massacre.

Before their war crimes had come to light, Dzeko and Yetisen each requested and received refugee status from the United States, claiming themselves to be victims of persecution. Dzeko and Yetisen concealed and affirmatively misrepresented their criminal history, military service, and persecutory acts throughout their immigration proceedings. Such benefits would have been denied had immigration authorities known about their roles in the Trusina massacre.

"This case exemplifies the work of the Human Rights Violators and War Crimes Center. We will use all available resources, collaborate with all possible partners and explore all mechanisms of the law to bring these cases of horrendous human rights violations to justice," said Mark Shaffer, Chief of the Human Rights Violators and War Crimes Center. "Our inter-disciplinary, inter-agency team continues to delve into the human rights abuses that occurred in the former Yugoslavia and around the world, and we will not rest until we are certain that the United States does not serve as a safe haven for those who would commit such abuses."

This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations Human Rights Violator and War Crimes Center and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS) National Security and Affirmative Litigation Unit (NS/A Unit), with consultation and support from ICE’s Office of the Principal Legal Advisor (OPLA) Seattle Office of the Chief Counsel, and the Criminal Division’s Human Rights and Special Prosecutions Section.

The case was jointly prosecuted by Chief Timothy Belsan and Senior Counsel for National Security Aram Gavoor of OIL-DCS’s NS/A Unit and Trial Attorney Steven Platt of OIL-DCS, and Assistant U.S. Attorney Dianne Schweiner of the U.S. Attorney’s Office for the District of Oregon.

Members of the public who have information about foreign nationals or naturalized U.S. citizens suspected of engaging in human rights abuses or war crimes are encouraged to call the ICE tip line at 1-866-DHS-2-ICE or to complete its online tip form; or the Justice Department’s Human Rights and Special Prosecutions Section at 1-202-616-2492. Callers may remain anonymous.

EUGENE, Ore.—Christopher Adam Strahan, 33, of Corvallis, Oregon, pleaded guilty today to threatening a campus shooting and was sentenced to time served in federal prison and three years’ supervised release.

According to court documents, on February 27, 2018, the Director of Public Safety for Oregon State University (OSU) was notified of Twitter posts threatening a campus shooting at OSU. A request to Twitter revealed the account in question, "Hard Belly Dorm," was owned by Strahan. A detective from Oregon State Police (OSP) positively identified Strahan from the account’s profile photo. The detective was familiar with Strahan from an investigation in February 2017 for similar threats to OSU.

Later on February 27, a 911 tip produced a possible residential address for Strahan. OSP and FBI responded to the address in an attempt to locate him. While at the address, Strahan arrived in his own vehicle, was arrested and transported to the Benton County Jail.

Strahan was held in the Benton County Jail from February 27 until he was ordered detained pending trial in federal court and transferred to FCI Sheridan on March 27, 2018.

As a condition of Strahan’s supervised release, he is prohibited from contacting or entering the property of Oregon State University or the Linn Benton Community College.

Strahan was previously convicted in Benton County Circuit Court of second degree disorderly conduct for Twitter threats made in February 2017. He was sentenced to 20 days in jail, civilly committed to the state mental hospital for six months and ordered to pay $438.

This case was investigated by OSP, the Corvallis Police Department and the FBI and prosecuted by Amy Potter, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—Harold Blackwolf Jr., 35, of Warm Springs, Oregon, pleaded guilty today to two counts of involuntary manslaughter and one count of possession of a firearm as a convicted felon.

According to court documents, on September 28, 2017, Blackwolf was at a friend’s house on the Warm Springs Indian Reservation. While under the influence of alcohol, Blackwolf left his friend’s house and entered his Dodge Durango, a sport utility vehicle. Blackwolf drove away at a high rate of speed with his headlights off. As he was departing, he struck two adult men who were in the road, killing both. Blackwolf, a convicted felon, was arrested on April 20, 2018 and found to be in possession of a single firearm, a Taurus .38 special revolver.

Involuntary manslaughter is punishable by up to eight years in prison, a $250,000 fine and three years’ supervised release. Possessing a firearm as a felon is punishable by up to 10 years in prison, a $250,000 fine and three years’ supervised release. Blackwolf will be sentenced on June 11, 2019 before U.S. District Court Judge Anna J. Brown.

The government will seek an order of restitution on behalf of Blackwolf’s victims at sentencing.

This case was investigated by the FBI and the Warm Springs Tribal Police Department. It is being prosecuted by Benjamin Tolkoff, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—Shayne Kniss, 43, formerly of Lake Oswego, Oregon, was sentenced today to 36 months in federal prison and three years’ supervised release for defrauding clients of his investment firm, Iris Capital Management Group, LLC. Kniss was also ordered to pay more than $529,000 in restitution to his victims.

According to court documents, Kniss founded Iris Capital in October 2010 and offered real estate based investments in several different funds to investors. Through various means, including brochures, private placement memoranda, emails, and personal presentations, Kniss misrepresented how he would manage investor funds.

Between February 2011 and April 2013, 47 people invested approximately $4.3 million in Kniss’s funds. Kniss commingled investor money among the funds, used new investments to make payments to prior investors, and used more than $500,000 for person use, including investing in a retail marijuana enterprise.

Kniss previously pleaded guilty to one count of wire fraud on May 8, 2018.

The FBI investigated this case. It is being prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.

EUGENE, Ore. – Curtis Sherman Pethley, 62, a resident of Wisconsin, was sentenced today to 57 months in federal prison and ordered to pay more than $440,000 for his role in a nationwide conspiracy to commit mail fraud and aggravated identity theft.

According to court documents, IRS-Criminal Investigation began a lengthy investigation into the fraud scheme when, in May 2013, a victim in Medford, Oregon notified the IRS that false federal and Oregon state tax returns were filed electronically using her and her husband’s personal identifying information including their social security numbers and dates of birth.

IRS determined the scheme required co-conspirators to amass a large supply of stolen U.S. taxpayer identities; obtain IRS filing PINs using victim identities; acquire prepaid debit cards in victims’ names; use fictitious email addresses; file fraudulent tax returns and conceal refund proceeds by wiring cash to Nigeria. Fraudulent tax returns were filed using the identities of thousands of Oregon and Washington taxpayers. In total, the scheme lasted several years and netted co-conspirators more than $11.6 million in fraudulent tax returns.

Pethley, working along with his Nigerian contact, acquired numerous debit cards for use in the scheme including the card connected with the Medford, Oregon victim. He helped his Nigerian contact by providing information about the preparation of federal income tax returns including how to calculate withholdings on a W-2 form. Pethley withdrew fraudulent tax refunds from the prepaid debit cards and, after taking his 10 to 20 percent cut of the proceeds, wired the money to Nigeria. In addition, he used refund proceeds to purchase merchandise and money orders and sent them to co-conspirators throughout the U.S. as instructed.

When IRS agents executed a search warrant on Pethley’s residence, they discovered approximately 150 prepaid debit cards and seized numerous money orders totaling nearly $50,000.

Pethley previously pleaded guilty to three counts of mail fraud, conspiracy to commit mail fraud and aggravated identity theft on August 27, 2018. He is currently serving a separate 60-month federal prison sentence for distributing child pornography in a case from the Western

District of Wisconsin. The Court ordered that 37 months of Pethley’s Oregon sentence should run consecutively to the sentence he is currently serving.

This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and Homeland Security Investigations with support provided by the Department of Treasury, Inspector General for Tax Administration, the U.S. State Department, and the Oregon Department of Revenue Policy and Systems Unit and was prosecuted by Byron Chatfield and Gavin Bruce, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore. – Arturo Aispuro, 37, of Salem, Oregon, was sentenced today to 78 months in federal prison and 5 years’ of supervised release for conspiring to distribute methamphetamine. He also received a concurrent sentence of 60 months for abusing hundreds of roosters by raising and training them to participate in cockfights.

According to court documents, Aispuro was a member of a drug trafficking conspiracy operating in and around Salem. In April 2017, with the assistance of a co-conspirator, Aispuro sold 882 grams of methamphetamine to a confidential informant in Milwaukie, Oregon. Later, in May 2017, law enforcement intercepted Aispuro while he was transporting an additional 442 grams of methamphetamine for further distribution.

In June 2017, Drug Enforcement Administration (DEA) agents executed a search warrant on Aispuro’s home in Salem where they found marijuana, cocaine, body armor, a digital scale, vacuum sealers and more than 20 firearms. Agents also found and seized cockfighting literature, vitamins and supplements used to increase roosters’ stamina and sets of gaffs, sharp metal spurs that attach to a rooster’s legs.

Agents also executed a search warrant on Aispuro’s ranch in Scio, Oregon where they found more 200 roosters being raised and trained for fighting. The roosters’ combs and wattles had been removed to make them more effective fighting birds. Aispuro admitted to raising and selling roosters for use in cockfighting derbies for as much as $500 a bird.

Aispuro previously pleaded guilty to one count each of conspiring to distribute methamphetamine and training and selling of fighting animals on June 12, 2018.

This case was investigated by the DEA with the assistance of the U.S. Department of Agriculture, Office of Inspector General, and the Linn County Sheriff’s Office and prosecuted by Peter D. Sax, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – Veronica Rivera, 46, of Hermiston, Oregon, was sentenced today to 6 months in federal prison and 3 years’ supervised release for selling fentanyl.

According to court documents, in October 2017, the Tactical Diversion Squad of the Drug Enforcement Administration (DEA) and the Blue Mountain Enforcement Narcotics Team began investigating a drug trafficking organization selling small blue pills pressed to look like 30 milligram oxycodone tablets but that actually contained fentanyl.

On two separate occasions in March 2018, Rivera sold a total of 167 of the fentanyl pills in Hermiston. In April 2018, investigators seized approximately 100 pills from a location where Rivera had hidden them and an additional 129 pills from her Hermiston residence.

On April 25, 2018, a federal grand jury in Portland returned a two-count indictment charging Rivera with distribution of fentanyl and possession with intent to distribute fentanyl. She pleaded guilty to one count of distribution of fentanyl on August 14, 2018.

This case was investigated by the DEA and Blue Mountain Enforcement Narcotics Team and prosecuted by William Narus, Assistant U.S. Attorney for the District of Oregon.

The decision to withdraw the Portland Police Bureau from the Joint Terrorism Task Force is a mistake that defies logic. It’s disappointing that in spite of the overwhelming evidence presented of JTTF successes in Oregon and across the nation, a majority of the city council chose a politically-expedient broadside against the federal government over the safety and well-being of their constituents. The law enforcement community’s duty and commitment to ensuring public safety and protecting civil rights will not be deterred by the politics of the moment.

-- Billy J. Williams, U.S. Attorney for the District of Oregon

EUGENE, Ore.—A federal jury found David George Hopkins, 60, of San Diego, California, guilty today for traveling with the intent to engage in sex with a minor and other related charges.

“This case is another example of the extraordinary lengths some will go in an attempt to victimize children,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “It is also an example of the dogged determination of federal law enforcement to intercept individuals who seek to victimize children. I hope this conviction will serve as a warning to would-be child predators who believe they can pursue minors online without consequences.”

“Today’s conviction started with one person who was so concerned that she reported her disturbing interactions with Mr. Hopkins to law enforcement. Her willingness to step forward was critical to our ability to protect children from this predator. I would ask anyone with such information in the future to contact the nearest FBI office or submit tips online at https://tips.fbi.gov,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.

According to court documents and information shared at trial, on June 9, 2017, Hopkins traveled from San Diego to Portland, Oregon believing he would be able to have sex with a 13-year-old girl named Paula along with her mother, Norma, and her mother’s friend, Ana, with whom he had been chatting online. Unbeknownst to Hopkins, he had been chatting with an FBI Special Agent acting as both Norma and Paula, and with a person using the alias Ana.

Hopkins and Ana began chatting online in 2012, and during one of the conversations, Hopkins raised the topic of having sex with a minor female in Peru and sent Ana a photo of what was purportedly him receiving oral sex from a minor.

In February 2017, Hopkins again contacted Ana and they began communicating using Skype and Facebook. In their first few conversations after reconnecting, Hopkins disclosed more details about his sexual relations with a minor in Peru. He also claimed to have had similar illicit contact with a minor in Panama. Hopkins later wrote, “did it bother u i [sic] had sex with young girls?” Hopkins did not present his conduct as a fantasy and Ana did not believe it was.

Concerned by the information shared with her, Ana reported Hopkins to the Eugene Police Department who referred the matter to the FBI. In March 2017, Ana met with an FBI Special Agent and agreed to cooperate with an investigation of Hopkins.

Ana continued chatting with Hopkins and their conversations grew increasingly more detailed and graphic as Hopkins shared information about his claimed past sexual experiences with minors and his desire to continue such behavior. In one conversation, Ana mentioned her fictitious Peruvian friend Norma. Hopkins asked if they could all have sex together. Ana also mentioned that Norma had a daughter named Paula. Hopkins also expressed an interest in having sex with Paula.

Ana told Hopkins that Norma had agreed to let him have sex with Paula. Shortly thereafter, Hopkins began communicating directly with Norma, the FBI Special Agent. The conversation quickly turned sexual and they discussed Hopkins flying to Oregon. In subsequent conversations, Hopkins began asking Norma about having sex with Paula, and, later, began communicating online directly with Paula. Hopkins chatted with Paula about having sex with her, describing in detail what he wanted to do.

In June 2017, Hopkins flew from San Diego to Portland with intent to engage in sexual conduct with Paula. He was met and arrested by the FBI at Portland International Airport upon his arrival. Hopkins claims of abusing children have not been corroborated.

In an indictment returned on June 20, 2018, a federal grand jury in Eugene charged Hopkins with one count each of attempting to use a minor to produce a visual depiction of sexually explicit conduct, attempting to coerce or entice a minor, traveling with the intent to engage in illicit sexual conduct and transferring of obscene material to a minor.

Hopkins will be sentenced on May 23, 2019, by U.S. District Court Judge Michael J. McShane.

This case was investigated by the FBI with assistance from the Eugene Police Department. It was prosecuted by Amy Potter and Jeff Sweet, Assistant U.S. Attorneys for the District of Oregon.

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.

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.

PORTLAND, Ore.—On February 12, 2019, Kenneth Wenberg, 72, a medical doctor from Heppner, Oregon, pleaded guilty to a single count of tax evasion. The government demonstrated it could prove Dr. Wenberg failed to report income resulting in a tax loss of approximately $187,000.

According to court documents, Dr. Wenberg created nominee entities to hide assets and income he personally earned while serving as a physician at the Morrow County Health District (MCHD) and Urgent Health Care Center (UHCC) in Heppner. Dr. Wenberg instructed MDHD and UHCC to make payments for services he performed directly to sham entities to avoid income tax liabilities. Dr. Wenberg opened numerous bank accounts and purchased real property in the names of his nominee entities. He also paid for his and his family’s personal living expenses out of the nominee accounts. Dr. Wenberg failed to report his income to the IRS, despite knowing he owed taxes.

Wenberg faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on June 6, 2019 before U.S. District Court Judge Marco A. Hernandez.

As part of the plea agreement, Wenberg has agreed to pay restitution to the IRS in the full amount of the tax loss as determined by the court after sentencing.

This case was investigated by IRS-Criminal Investigation (IRS-CI) and is being prosecuted by Clemon D. Ashley and Seth D. Uram, Assistant U.S. Attorneys for the District of Oregon.

The U.S. Attorney’s Office and IRS-CI remind Oregonians that tax day is Monday, April 15, 2019. For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the IRS website: https://www.irs.gov/help-resources

EUGENE, Ore.—Benjamin Jaramillo Hernandez, 69, of Eugene, pleaded guilty today to a federal hate crime and illegal possession of ammunition charge arising from a series of progressively more threatening and violent actions targeting St. Mary Catholic Church in Eugene in September 2018. Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Billy J. Williams for the District of Oregon and Special Agent in Charge Renn Cannon of the FBI in Oregon made the announcement.

“The Civil Rights Division stands firm in the belief that all people should be able to live their lives free from threats of violence,” said Assistant Attorney General Dreiband. “The Department of Justice will continue to uphold the rights of individuals who are victimized for exercising their religious beliefs and prosecute those who seek to violate those rights.”

“Hate crime laws protect fundamental American values including the free expression of religion. Today’s guilty plea reaffirms the basic principle that no one should live in fear because of their faith,” said U.S. Attorney Williams. “Our office will continue to vigorously investigate and prosecute hate crimes, pursuing justice for all victims.”

“Threatening violent action strikes at the heart of our fundamental right as Americans to live, work and worship without fear. Working with the community and our local law enforcement partners, we will always find strength in our shared values of keeping everyone safe regardless of race, religion or political belief,” said Special Agent in Charge Cannon.

According to court documents, on September 9, 2018, Hernandez was escorted from St. Mary property following an angry outburst during the sacrament of communion. Five days later, on September 14, a church employee reported to the Eugene Police Department that someone had dispensed pepper spray on the exterior door handles and through the mail slot of the St. Mary office front door. Employees reported burning sensations in their fingers and respiratory distress. A Eugene police officer and FBI agent identified Hernandez in church surveillance footage as the person responsible for both incidents.

On September 16, 2018, Hernandez was again spotted near St. Mary. A witness saw Hernandez across the street from the church when he stopped near the Eugene Public Library and shouted at the witness, “I’ve got something for you right here,” while pointing to a bag he was carrying.

A few days later, on September 20, St. Mary employees reported finding a threatening note and seven 10mm Sig hollow point bullets left in the office. The note threatened the church with “2 MP5s w/ 50 rounds each,” a type of submachine gun. The note concluded: “Eugene is going on the [expletive] map.”

A Eugene police officer again reviewed church surveillance footage and identified Hernandez as the individual who dropped off the note and bullets. On September 21, 2018, Eugene Police arrested Hernandez at the Eugene Public Library and charged him with second degree intimidation, second degree criminal mischief and two counts of second degree criminal trespass. During a search of Hernadez’s person, officers located a partially empty can of pepper spray, three .410 shotgun shells and thirteen 10mm Sig hollow point bullets.

Hernandez was charged by criminal information with one count each of obstruction of persons in the free exercise of religious beliefs and felon in possession of ammunition.

He faces a maximum sentence of 20 years in prison and a fine of up to $250,000 for the hate crime conviction, and 10 years in prison for the unlawful possession of ammunition. Hernandez will be sentenced on May 22, 2019 before U.S. District Court Judge Ann Aiken.

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

For more information about DOJ’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to DOJ hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.