District of Oregon

The Justice Department today announced that defendant Benjamin Jaramillo Hernandez, 69, 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 and U.S. Attorney for the District of Oregon Billy J. Williams 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 Eric 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 Renn Cannon.

According to court documents, on Sept. 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 Sept. 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 Sept. 21, 2018, Hernandez was arrested by Eugene Police at the Eugene Public Library and charged with second degree intimidation, second degree criminal mischief and two counts of second degree criminal trespass. During a search of Hernandez’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.

Hernandez faces a maximum sentence of 20 years in prison and a criminal fine of up to $250,000 for the hate crime, and he faces a maximum sentence of 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 is being prosecuted by Assistant U.S. Attorney Gavin Bruce of the U.S. Attorney’s Office of Oregon, and Trial Attorney Cameron Bell with the Civil Rights Division of the U.S. Department of Justice.  The case was investigated by the Eugene Division of the FBI and the Eugene Police Department. 

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.

EUGENE, Ore.—Tayva Tucker, 41, of Madras, Oregon, pleaded guilty today to one count of theft of government funds for stealing nearly $40,000 in Social Security payments from ten mentally disabled adults.

According to court documents, beginning in March 2014, Tucker was employed by a social services organization in Madras where she oversaw outreach to mentally disabled clients as part of the organization’s mental health program. As part of her work, Tucker assumed representative payee duties for some her disabled clients’ Title II and Title XVI Social Security benefits. A representative payee is appointed when the beneficiary is incapable of managing his or her benefits. As a representative payee, Tucker was required to use the Social Security payments for the current and future needs of her clients.

In the summer of 2016, 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. An investigation revealed that Tucker had stolen $39,277 from 10 victims.

Tucker faces a maximum sentence of 10 years in prison, a $250,000 fine and three years of supervised release. She will be sentenced on April 25, 2019 before U.S. District Court Judge Ann Aiken.

As part of the plea agreement, Tucker has agreed to pay $39,277 in restitution.

This case was investigated by the Social Security Administration Office of Inspector General, the Department of Health and Human Services Office of the Inspector General, and is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.

Downloadable file: U.S. v. Ayala - Exhibit #311

PORTLAND, Ore.—A federal jury found Mary Holden Ayala, 59, of Portland, guilty today of stealing nearly $1 million from an Oregon foster care agency, money laundering and filing false personal income tax returns.

From at least 2008 to 2015, Ayala, a longtime Portland resident, served as the President, Executive Director and primary agent of Give Us This Day (GUTD), a private foster care agency and residential program for youth.

“Children in foster care rely heavily on the agency to which they are entrusted and these agencies are responsible for protecting and caring for them. Mary Holden Ayala grossly neglected her duties and selfishly stole from children in need,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “This prosecution demonstrates our firm commitment to protecting the integrity of federally-funded social service programs.”

“Abuse, drug addiction and violent crime can force children into a foster care system that is supposed to give them a second chance at a better life. One person's greed can corrupt that system, though, leading to victimization of these vulnerable kids. Help stop such victimization and strengthen important institutions by reporting public corruption when you see it,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.

“Mary Ayala’s theft of nearly $1 million was nothing short of stealing food and shelter from the most vulnerable of our population,” said Acting Special Agent in Charge Troy Burrus, IRS-Criminal Investigation, Seattle Field Office. “Instead of ensuring the children entrusted to her care were properly clothed and fed, Ayala used the money for luxury home renovations, a pilot for a reality show, extensive travel to luxury resorts, music recording studio, luxury shoes and purses. Her final act of contempt was to attempt to hide the stolen money by filing federal tax returns without declaring the stolen funds.”

“Ms. Ayala’s crimes are disturbing: she embezzled money meant to assist foster care children and their families,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General. “We will continue to investigate such greed-fueled fraud schemes.”

According to court documents, since its inception in 1979, GUTD was primarily funded by the Oregon state and federal government for foster care services including hiring and screening foster parents for community placements, compensating foster parents for services and placing foster children in residential or group homes. GUTD federal funding originated from the Administration for Children and Families, a division of the U.S. Department of Health and Human Services, and was administrated by ODHS.

From 2009 through 2015, Ayala exercised sole and complete control over GUTD finances. No other GUTD employee or board member had access to the organization’s bank accounts or statements during this time. With no internal controls in place, Ayala wrote checks, used the GUTD debit card and withdrew cash at will, using the organization’s bank accounts as her own.

Ayala used the money stolen from GUTD to pay her mortgage, remodel her home and fund other retail, travel and transportation expenses. Additionally, she used the money to fund other, non-GUTD business ventures including a media company and Big Mary’s, a fish and ribs restaurant in Portland, and to purchase and flip a commercial property.

In total, Ayala stole nearly $1 million from GUTD. As a result, her employees, foster parents and foster children in GUTD’s care suffered tremendously. GUTD residential center and house managers complained about a lack of basic necessities, including but not limited to food, toiletries and cleaning supplies.

In 2015, the day after Ayala resigned her position at GUTD, she filed five false federal income tax returns for tax years 2009 through 2013. Shortly thereafter, she filed a sixth false return for tax year 2014. Ayala failed to file a tax return in 2015.

In a superseding indictment returned on May 3, 2017, a federal grand jury in Portland charged Ayala with five counts of theft concerning programs receiving federal funds, one count of concealment of money laundering, one count of failure to file a personal federal tax return and two counts each of engaging in monetary transactions with criminally derived property and filing a false personal federal tax return. The government dropped the concealment of money laundering charge prior to trial.

Ayala will be sentenced on May 29, 2019 by U.S. District Court Judge Marco A. Hernandez.

The government has seized more than $450,000 in criminally-derived proceeds from Ayala that it will seek to forfeit by court order post sentencing.

This case was investigated by the FBI, the Department of Health and Human Services Office of Inspector General and IRS-Criminal Investigation. It was prosecuted by Donna Maddux, Clemon Ashley and Julia Jarrett, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore.—Larry Lewis Hudson, 46, of Sandy, Oregon, was sentenced today to 220 months in federal prison for the attempted enticement of children online and possession and distribution of child pornography. Upon completion of his prison sentence, Hudson will be on supervised release for 20 years, during which he will be subject to stringent conditions of supervision, including a requirements that he participate in and complete sex offender treatment, and that he register as a sex offender.

“This defendant has now been convicted twice for exploiting and abusing children,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “His first prison sentence was not enough to deter him from victimizing more children. This 18-year sentence will do just that—protect our most vulnerable community members from a known predator.”

According to court documents, Hudson’s crimes were identified by independent law enforcement investigations conducted by agencies in four different states.

The earliest began in July 2015, when a father in Louisiana reported that a person using the name “Brian Johnson” had exchanged sexually explicit messages with and received at least one explicit photo from his 13-year-old daughter using the Kik Messenger mobile application. Later, in January 2016, a mother in Illinois called police after learning that her developmentally disabled 16-year-old daughter had sent explicit images of herself to “Brian Johnson” using Kik. In March 2016, a detective in Arizona who was posing online as a 15-year-old girl was contacted by “Brian Johnson” who claimed to be a 22-year-old living in Sandy. A few days after that exchange, “Brian Johnson” contacted an investigator in Texas posing online as a 14-year-old girl from Georgia. Hudson was later identified as the person calling himself Brian Johnson.

During online exchanges with the two detectives, Hudson repeatedly engaged in sexually explicit conversations, sent them child pornography and asked them if they would engage in the depicted sex acts with him. He asked them for explicit images of themselves, told the detective in Arizona that he planned to move there and asked if she would get together with him to have sex.

On March 29, 2017, FBI agents executed a federal search warrant at Hudson’s residence in Sandy. They seized a number of electronic devices including two cell phones. A forensic examination of the phones revealed 49 explicit images depicting children engaged in sexual acts with adults, including many of the images Hudson sent to the detectives. Hudson later admitted to using the “Brian Johnson” alias and sending sexually-explicit materials to minors.

Hudson pleaded guilty to one count each of attempted online enticement of a minor, distribution of child pornography and possession of child pornography on July 17, 2018.

In December 2000, Hudson was convicted in Clackamas County Circuit Court of unlawful sexual penetration with a foreign object and first degree sexual abuse after repeatedly molesting a girl under 12 over a seven month period. Hudson was sentenced to and served three years in prison. His prison sentence was followed by a 10-year term of post-prison supervision during which he repeatedly violated his supervision conditions.

The FBI investigated this case. It was prosecuted by Assistant United States Attorney Gary Y. Sussman, Project Safe Childhood Coordinator 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.

The FBI’s Child Exploitation Task Force (CETF) conducts sexual exploitation investigations – many of them undercover – in coordination with other federal, state, and local law enforcement agencies. The Portland FBI’s CETF consists of agents and task force officers from the Beaverton Police Department, Portland Police Bureau, Tigard Police Department, Hillsboro Police Department, and the Clackamas County Sheriff’s Office. The FBI’s 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. Ore.—During the recent lapse in appropriations, the U.S. Attorney’s Office was required to curtail some operations pursuant to applicable law and policy. Nevertheless, the office continued to fulfill its law enforcement responsibilities by prosecuting criminal cases. Below is a summary of notable case events that occurred during the shutdown:

U.S. v. Hediger

On January 23, 2019, Pamela S. Hediger, 55, of Corvallis, Oregon, was sentenced to 46 months in federal prison and three years’ supervised release for tax evasion and money laundering. Hediger was also ordered to pay more than $1.9 million in restitution.

According to court documents, between 2010 and 2017, Hediger was an attorney, president, and managing shareholder of a law firm in Corvallis. Hediger focused on personal injury cases and independently managed her own client relationships. During her association with the firm, Hediger systematically embezzled funds from the firm’s client trust and business operating accounts, both of which she had signing authority over. The embezzled funds came from insurance proceeds payable to Hediger’s clients.

Hediger failed to file income tax returns on nearly $2.2 million between 2011 and 2017, evading more than $471,000 in taxes due. Hediger previously pleaded guilty to one count each of attempting to evade or defeat taxes and engaging in monetary transactions with property derived from specific unlawful criminal activity on November 6, 2018.

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

U.S. v. Smith

On January 15, 2019, Victor William Smith, Jr., 45, of Warm Springs, Oregon, was sentenced to 144 months in federal prison and three years’ supervised release for assaulting two Warm Springs Tribal Police detectives serving a deputized federal task force officers. Smith was also ordered to pay $8,305 in restitution.

According to court documents, on June 8, 2017, Smith forcibly assaulted the officers by attempting to run them down with his pickup truck. The officers ultimately apprehended Smith and found a stolen Remington shotgun in his truck. Smith admitted to knowingly possessing the stolen firearm at the time of his arrest.

Smith previously pleaded guilty to two counts of assault with a deadly weapon on a federal officer and one count of felon in possession of a firearm.

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

U.S. v. Britton

On January 23, 2019, Shane Britton, 43, of Pendleton, Oregon, was sentenced to five years’ probation and ordered to pay $1,803 in restitution for abusive sexual contact on the Umatilla Indian Reservation.

According to court documents and evidence presented at trial, in June 2016, Britton was staying at a residence shared by the victim and her mother on the Umatilla Indian Reservation. The victim and her mother are both enrolled members of the Confederated Tribes of the Umatilla Indian Reservation. Britton is not a tribal member.

During his stay, Britton subjected the victim to a series of unwanted and progressively more invasive physical encounters. In a recorded interview, Britton initially denied the allegation of abusive sexual contact, but later admitted he inappropriately touched the victim. Britton eventually told law enforcement officers that “in no way shape or form did [the victim] do anything wrong or provoke” his abusive conduct.

A federal jury in Portland convicted Britton on one count of abusive sexual contact on October 18, 2018.

The FBI investigated this case in partnership with the Umatilla Tribal Police Department. It was prosecuted by Jennifer Martin and Natalie Wight, Assistant U.S. Attorneys for the District of Oregon.

U.S. v. Stevens et al.

On January 8, 2019, a federal grand jury returned a six-count indictment charging Ronnie Stevens aka Tim Ephrem, 49, and Tina Ephrem aka Lisa Ann Peterson, 43, both of Portland, with wire fraud.

The indictment alleges that between September 2016 and December 2018, the couple conspired with one another to defraud an elderly couple, Adult Victim 1 (AV1) and Adult Victim 2 (AV2), of both money and property.

The scheme began in September 2016 when AV1 offered a commercial trailer for sale at his business. Stevens told AV1 that he brokered vehicle sales and could sell the trailer in exchange for a cut of the profit. Stevens did not sell the trailer, but quickly ingratiated himself with AV1 who later described him as “humble and honest” but “down on his luck.” Stevens told AV1 that he supported a wife and teenage daughter, and that he suffered with health issues.

Stevens later approached AV1 with an alleged lucrative investment opportunity. Stevens claimed that a friend named Tammy Ward was set to inherit an estate valued in excess of $100 million from her recently deceased father, but could not come up with the fees and legal costs necessary to release the state. Stevens told AV1 that if AV1 could advance the funds to release the estate, AV1 would be given title to valuable classic cars and vans that were part of the estate.

AV1 gave Stevens approximately $15,000 in cash followed by $25,000 in cash two weeks later. The payments escalated over time as Stevens told AV1 various stories about delays and increased costs associated with the release of the estate. As part of the conspiracy, AV1 and AV2 both spoke to a woman on the phone who claimed to be Tammy Ward. Investigators later revealed this person to by Tina Ephrem. Between 2016 and 2018, Stevens placed more than 5,000 outgoing calls to AV1 and AV2.

Stevens and Ephrem collected more than $1.5 million from AV1 and AV2 over the course of the conspiracy, spending the proceeds on utility bills, restaurants, cigars, retail purchases and travel to locations including Hawaii, Anaheim, California, Las Vegas, Nevada and Spirit Mountain Lodge in Grand Ronde, Oregon.

Stevens and Ephrem were arrested on January 11, 2019. They made their initial appearances in federal court the same day and were ordered detained pending a five-day jury trial beginning on March 12, 2019.

This case was investigated by the FBI 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.

U.S. v. Newman

On January 15, 2019, Steven Wayne Newman, 50, of Hillsboro, Oregon, was sentenced to 60 months in prison followed by five years of supervised release for distributing child pornography.

According to court documents, in October 2016, an FBI task force officer identified an IP address offering to share files containing child pornography via the BitTorrent peer-to-peer file sharing network. The officer downloaded ten files from a computer at that IP address, four of which depicted prepubescent children engaging in sexually explicit conduct with adults and with each other. The IP address was later traced to Newman’s home in Hillsboro.

The FBI was not the only law enforcement agency investigating Newman’s IP address. Investigators from the Linn County Sheriff’s Office, the Albany Police Department, and the Benton County Sheriff’s Office also downloaded child pornography from a computer at the same address. A Linn County Sheriff’s Office detective downloaded 247 files containing a total of 91 videos and 426 images of child pornography.

On January 20, 2017, FBI agents executed a federal search warrant at Newman’s home. They seized a laptop and external hard drive, both of which contained contraband material. Agents found 212 videos and 665 images depicting the sexual exploitation of children. Newman’s BitTorrent file sharing software had been run 272 times, most recently on the day prior to the search warrant.

This case was investigated by the FBI’s Child Exploitation Task Force (CETF), the Linn County Sheriff’s Office, the Albany Police Department, and the Benton County Sheriff’s Office. It was prosecuted by Gary Y. Sussman, Assistant U.S. Attorney for the District of Oregon.

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 various online romance scams.

According to court documents, between May 2017 and January 2019, Gregory acted as a money mule for online romance scams. As part of the scheme, unknown co-conspirators would target individuals through online dating. These co-conspirators would impersonate military or civilian personnel working overseas, pretending they needed funds for foreign taxes, travel costs, or other false representations. Victims would wire money based on these false statements.

Instead of wiring the money directly overseas, victims were asked to wire money to bank accounts in the U.S. Gregory incorporated companies and opened numerous business bank accounts in order to receive these wires transfers from victims. Upon receipt of the wire, Gregory would send the money to overseas bank accounts.

On May 11, 2017, federal agents interviewed Gregory and he claimed he was not aware that the funds wired to his accounts were the proceeds of fraud. He claimed he did the work as a result of promises of love from the woman he met on an online dating website. Following his interview with investigators, Gregory continued to open new business bank accounts using fraudulent information, continued receiving wires from victims and continued wiring the victim’s money overseas. Between the May interview and the end of August 2017, Gregory wired or otherwise withdrew over $200,000 in fraudulent proceeds.

Gregory faces a maximum sentence of 20 years in prison, a $250,000 fine and three years’ supervised release. Under the terms of his plea agreement, Gregory agreed to pay restitution in full to his victims as ordered by the court at sentencing. He will be sentenced on April 4, 2019.

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

U.S. v. Burkleo

On January 23, 2019, Bud O’Neil Burkleo, 36, of Warrenton, Oregon pleaded guilty to four counts of communicating a false distress message and one count of making a false statement.

According to court documents, Burkleo made four hoax distress calls to the U.S. Coast Guard between April and November of 2016. In response to each call, the Coast Guard dispatched rescue personnel in an attempt to protect life and property. Burkleo also lied to federal investigators.

Burkleo will be sentenced on May 13, 2019.

This case was investigated by the U.S. Coast Guard Investigative Service and prosecuted by Paul T. Maloney, Assistant U.S. Attorney for the District of Oregon.

U.S. v. Ugwa

On November 14, 2018, a federal grand jury returned a 14-count indictment charging Bob Ibenne Ugwa, 49, of Portland, with seven counts each of cyberstalking and anonymous telecommunications harassment.

The indictment alleges that, between 2003 and 2018, Ugwa used an interstate electronic communication service to engage in conduct reasonably expected to cause substantial emotional distress and made telephone calls without disclosing his identity with the intent to abuse, threaten, and harass seven different individuals.

Each charge of cyberstalking under 18 U.S.C. § 2261A(2)(B) and anonymous telecommunications harassment under 47 U.S.C. § 223(a)(1)(C) is punishable by up to five and two years in prison, respectively.

Ugwa was detained pending trial. A three-day jury trial is scheduled to begin on March 26, 2019.

This case was investigated by the FBI and is being prosecuted by Hannah D. Horsley, 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.

Downloadable file: PDF Press Release
Downloadable file: Superseding Indictment

PORTLAND. Ore.—A federal grand jury has returned a five-count superseding indictment charging six members and associates of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) for racketeering, kidnapping and murder.

The superseding indictment was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Billy J. Williams of the District of Oregon; Special Agent in Charge Darek Pleasants of the Bureau of Alcohol, Tobacco, Firearms, and Explosive’s (ATF) Seattle Field Division; and Chief of Police Danielle Outlaw of the Portland Police Bureau (PPB).

GJOMC National President Kenneth Earl Hause, 61, of Aumsville, Oregon; Mark Leroy Dencklau, 58, of Woodburn, Oregon; Earl Deverle Fisher, 48, of Gresham, Oregon; Ryan Anthony Negrinelli, 36, of Gresham; Joseph Duane Folkerts, 61, of Battleground, Washington; and a sixth unnamed defendant are charged, as members and associates of the GJOMC, with conspiring to conduct and participate in the activities of a racketeering enterprise.

Additionally, Dencklau, Fisher, Negrinelli, Folkerts and the unnamed defendant are charged with murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death; and conspiracy to commit kidnapping, resulting in death for the June 30 to July 1, 2015 kidnapping and murder of Robert Huggins, a former GJOMC member and resident of southeast Portland, for the purpose of maintaining and increasing their positions in the GJOMC criminal enterprise.

 “According to the indictment, since at least 2003, the Gypsy Jokers have engaged in a wide range of crimes, including kidnapping, murder, drug dealing, robbery, extortion, and witness tampering,” said Assistant Attorney General Benczkowski. “Thanks to the efforts of ATF, the Portland Police Department, and federal prosecutors, we will work hard to hold accountable the leaders and members of this brutal and highly organized gang for their alleged crimes.”

“Kenneth Hause is the leader of a criminal organization that, through its many chapters and support clubs, has sowed violence and intimidation throughout the Pacific Northwest. This is an organization whose members and associates pride themselves on living outside the law and use kidnapping, assault, murder and other forms of violence to extend and maintain their power. Kenneth Hause and his co-defendants will soon face the consequences of their crimes thanks to a seamless partnership of federal, state and local law enforcement agencies,” said U.S. Attorney Williams.

“This is a continuation of ATF’s operations against the Gypsy Joker Outlaw Motorcycle Club for racketeering, kidnapping and murder,” said ATF Special Agent in Charge Pleasants. “As president of a criminal organization, Mr. Hause put the community at risk and showed contempt for law and order. It is among ATF’s core commitments to protect the public from violent criminals such as these Gypsy Jokers.”

“The Portland Police Bureau is proud to be a part of this cooperative effort,” said Chief Outlaw. “Violent crime deeply affects our community. By working with our partners, we can utilize a collective group of strategies and tactics to investigate and apprehend those responsible for committing violent acts or profiting from people’s fear through extortion and intimidation.”

According to the superseding indictment, the GJOMC preserves, promotes and protects its power, territory and profits through violence and intimidation and enriches its members through extortion, robbery and the distribution of narcotics. The organization is known for using fear through its members and associates as a tactic for establishing and maintaining its power. The GJOMC oversees several “support clubs” in Oregon and Washington, including the Road Brothers Northwest Motorcycle Club, Solutions Motorcycle Club, Northwest Veterans Motorcycle Club, High-Side Riders, and the Freedom Fellowship Motorcycle Club.

Dencklau, Fisher and Tiler Evan Pribbernow, 37, of Portland were first charged in a four-count indictment unsealed in July 2018. Pribbernow pleaded guilty to a single count of conspiring to conduct and participate in the activities of a racketeering enterprise on November 7, 2018. Dencklau and Fisher are detained pending trial.

In addition to the criminal charges brought against the named defendants, the government is seeking forfeiture of a property located in Salem, Oregon used as a GJOMC clubhouse.

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

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

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.—On January 18, 2019, Daniel Stephen Johnson, 40, of Coos Bay, Oregon, was sentenced to life in federal prison for repeatedly sexually abusing children who lived at an orphanage operated by the defendant in Cambodia.

In a jury trial ending on May 16, 2018, Johnson was convicted on six counts of engaging in illicit sexual conduct in a foreign place and one count each of travel with intent to engage in illicit sexual conduct and aggravated sexual assault with a child. He was sentenced to 30 years in prison on each count of illicit sexual conduct in a foreign place, 30 years for traveling with the intent to engage in illicit sexual conduct, and life in prison for aggravated sexual assault with children. The sentences for engaging in illicit sexual conduct in a foreign place will run consecutively.

According to court documents and information shared during trial, between November 2005 and his arrest in December 2013, Johnson systematically and repeatedly molested children who lived at an unlicensed orphanage he started and ran in Phnom Penh, Cambodia. Johnson funded the orphanage by soliciting donations from church groups in Oregon, California, Texas and elsewhere. Ten Cambodian victims—who ranged in age from seven to 18 years old at the time of abuse—have disclosed Johnson’s abuse or attempted abuse.

Victims described a pattern of molestation that includes, among other things, Johnson making them perform oral sex on him and anally raping them. Multiple victims said they were, on numerous occasions, awoken to Johnson abusing them. Following the abuse, Johnson would sometimes provide his impoverished victims with small amounts of money or food. On one occasion, Johnson gave a victim the equivalent of $2.50 in Cambodian currency.

In 2013, a warrant was issued for Johnson’s arrest on an unrelated case by officials in Lincoln County, Oregon. Local law enforcement officers worked with the FBI to locate Johnson overseas. The FBI in turn worked with the U.S. Department of State to revoke Johnson’s passport based on the Oregon warrant. Through the work of the FBI, Action Pour Les Enfants, a non-governmental organization dedicated to ending child sexual abuse and exploitation in Cambodia, and the Cambodian National Police (CNP), Johnson was located in Phnom Penh.

On December 9, 2013, CNP arrested Johnson. Based on disclosures made by children at the orphanage, Cambodian officials charged Johnson and detained him pending trial. In May 2014, Johnson was convicted by a Cambodian judge of performing indecent acts on one or more children at the orphanage and sentenced to a year in prison. Following his release from prison, Johnson was escorted back to the U.S. by the FBI.

Based on the sexual-abuse allegations against him, the FBI undertook a lengthy investigation of Johnson. During the course of their investigation, agents interviewed more than a dozen children and adults who had resided at the orphanage. Many of the interviews were audio- and video-taped and, in several instances, conducted in Cambodia by trained child-forensic interviewers. Some victims were interviewed multiple times before disclosing Johnson’s abuse.

Johnson was indicted by a federal grand jury in Eugene, Oregon on December 20, 2014 on one count of engaging in illicit sexual conduct in a foreign place. Seven additional charges were added by superseding indictment on May 17, 2017.

While in custody awaiting trial, Johnson made multiple efforts to tamper with witnesses and obstruct justice. Johnson contacted his victims online, encouraging them to lie and offering money and gifts. One message, sent via his relative’s Facebook account to an adult in Cambodia, discussed visiting a victim’s family and encouraging them to convince the victim to retract their statement, potentially in exchange for $10,000. Another message explains the need for a victim to say they were under duress and “pushed by police” to thumbprint a document.    

This case was investigated by the FBI with the assistance of the Toledo, Oregon Police Department. It was prosecuted by Jeffrey S. Sweet and Ravi Sinha, Assistant U.S. Attorneys for the District of Oregon, and Lauren E. Britsch, Trial Attorney for the Justice Department’s Child Exploitation and Obscenity Section. Amy E. Potter, Assistant U.S. Attorney for the District of Oregon, assisted with the prosecution.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

PORTLAND, Ore.—A federal grand jury in Oregon has returned two indictments charging six people with running sex trafficking organizations operating in the U.S., Canada and Australia. The indictments were unsealed today following a series of arrests by FBI Portland’s Child Exploitation Task Force (CETF) resulting from a multi-district takedown operation on Tuesday, January 15, 2019.

The FBI partnered with local law enforcement agencies in more than a dozen cities across the nation to coordinate sting operations targeting the organizations operated by defendants under indictment in Oregon, along with other Asian sex trafficking networks. As part of the takedown operation, the FBI seized the primary website used by one of the organizations, www.supermatchescort.com, and about 500 other associated domains, including 25 location-specific sub-sites.

In addition to the arrests, the FBI assisted five victims in Oregon. The FBI and U.S. Attorney’s Office victim services programs worked with local non-profits to ensure the victims have access to social, medical and legal services.

Zongtao Chen aka Mark Chen, 46, of Toronto, Canada; Weixuan Zhou aka Marco Zhou, 37, of Guangzhou, China; Yan Wang aka Sarah Wang, 33, of Temecula, California; Chaodan Wang, 32, of Beaverton, Oregon; and Ting Fu, 35, of Beaverton, Oregon, are charged with conspiracy and use of interstate facilities to promote, manage, establish, carry on or facilitate a racketeering enterprise. In a separate indictment, Hui Ling Sun, 40 of Portland, is charged with using interstate facilities to promote, manage, establish, carry on or facilitate a racketeering enterprise.

“Protecting vulnerable foreign nationals from criminal traffickers seeking to exploit them for profit is a critically important law enforcement mission. Trafficking adults for sex can at times be overlooked by our society because some believe the adult victims have a choice. This notion is false. These victims are powerless and often thousands of miles away from their home, native language and personal connections who might help them escape. We have always and will continue to aggressively pursue criminals who exploit vulnerable victims,” said Billy J. Williams, U.S. Attorney for the District of Oregon.

“Vulnerable women looking for a new life in the U.S. instead find traffickers who cash in on their cultural isolation by profiting from the sale of sex services. In many cases, these women lack the language skills and understanding of American civil rights to ask for help or assistance from law enforcement. For that reason, we need community members who suspect such illegal activity to come forward to help us identify these instances of human trafficking so we can recover the victims and provide them the social, medical and legal services they need,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.

According to the indictments, Mark Chen headed a criminal enterprise that recruited women, primarily from China, to travel to the U.S. and elsewhere to engage in prostitution and other sex trafficking activities. Within the cities the organization was operating, a “boss” would oversee and manage a local brothel in a hotel or apartment complex. Customers seeking to engage in acts of illegal prostitution would call a number listed on www.supermatchescort.com or related websites, or send a message by text, email, or WeChat, an encrypted internet messaging service based in China. The organization employed dispatchers who would receive incoming requests from potential customers to set up “dates.” The dispatchers would coordinate and schedule the “dates” with women working at the various brothels.

Dispatchers used a computer program to schedule and track all of the prostitution dates. This computer program had a customer database that logged more than 30,000 customer phone numbers with details from previous dates. In Oregon, defendant Zongtao “Mark” Chen promoted illegal prostitution activities that occurred at brothels in Portland, Tigard and Beaverton.

Hui Ling Sun made her initial appearances in federal court in Portland on January 15, 2019 and was detained pending trial. Ting Fu is expected to appear in Portland today. Yan Wang, arrested by the FBI’s Los Angeles Division, made an appearance before a magistrate judge in the Central District of California on January 15, 2019. The Toronto Police Service Human Trafficking Enforcement Team and Fugitive Squad have provisionally arrested Chen in Canada with a view towards extradition. Investigators believe Weixuan Zhou is in China and Chaodan Wang’s location is unknown.

Anyone with information on these investigations or who would like to report a federal crime may contact the nearest FBI office or submit information online at https://tips.fbi.gov.

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

The FBI Portland’s CETF investigated this case with assistance from Homeland Security Investigations (HSI) agents in Omaha, Nebraska. The Toronto Police Service, which maintained a parallel investigation, also provided assistance. CETF member organizations who participated in the takedown include Portland Police Bureau, Beaverton Police Department, Tigard Police Department and Clackamas County Sheriff’s Office.

The FBI 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 victims of sex trafficking and child exploitation.

The National Cyber Forensics and Training Alliance (NCFTA) assisted in the seizure of the websites related to the Chen investigation. The NCFTA, established in 2002, is a nonprofit partnership between private industry, government and academia for the sole purpose of providing a neutral, trusted environment that enables two-way collaboration and cooperation to identify, mitigate and disrupt cybercrime.

Scott Kerin and Julia Jarrett, Assistant U.S. Attorneys for the District of Oregon, are prosecuting the case.

Please Note: During the lapse in appropriations, the U.S. Attorney’s Office is required to curtail some operations pursuant to applicable law and policy. Nevertheless, the office continues to fulfill its law enforcement responsibilities by prosecuting criminal cases. The office will provide public information about certain significant cases including those impacting public safety and national security.

U.S. v. Chen et al. Indictment

U.S. v. Sun Indictment

PORTLAND, Ore. – A one-count indictment was unsealed in federal court today charging Kermit Tyler Poulson, 39, with transmitting threatening communications with the intent to extort Portland Mayor Ted Wheeler.

“Using social media to extort or threaten violence against any citizen is a crime. This conduct is unacceptable in any context and has no respectable place in public discourse. Threats of violence, both in person and on social media, are taken very seriously by federal law enforcement,” said Billy J. Williams, U.S. Attorney for the District of Oregon.

“Every day, the Portland JTTF’s role is to assess, address and mitigate threats against the people of Oregon. If you become aware of someone threatening violence against others, we ask that you contact us right away so we can work with you to create a safe community for all,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.

Poulson was arrested in Missoula, Montana on January 8, 2019 after visiting the Missoula Police Department to file a complaint on an unrelated matter. Missoula Police Department officers executed the arrest after locating Poulson’s federal arrest warrant in the National Crime Information Center (NCIC) database. Poulson recently resided in Portland, but has no known permanent residence.

If convicted, Poulson faces a maximum sentence of two years in prison and a $250,000 fine.

This case was investigated by the Portland FBI Joint Terrorism Task Force (JTTF) and the Portland Police Bureau (PPB). The Portland JTTF includes FBI special agents and more than a dozen state and local law enforcement officers.

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

PORTLAND, Ore.—John Jason Burgess, 43, of Hillsboro, Oregon, pleaded guilty today to one count of concealing or destroying labor union records.

According to court documents, between 2008 and 2016, Burgess served as the president of Local 304, an independent labor union representing approximately 140 employees of Pacific Stainless Products (PSP), a manufacturer of stainless steel equipment headquartered in St. Helens, Oregon. Local 304 represents its members in negotiating with PSP on employment issues and, under the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA), is required to file an annual financial report with the Secretary of Labor. Members fund the union entirely through biweekly dues of $12.50 withheld from their paychecks.

As president, Burgess was added as a signatory to Local 304’s bank account in 2011 and received a debit card linked to the account. At around the same time, Burgess assumed responsibility for maintaining the union’s financial records as required by LMRDA. Burgess was not authorized to draw any compensation for his duties as an officer of Local 304.

Burgess was fired from PSP in January 2016 and thus became ineligible to continue as a member or officer of Local 304. He surrendered his debit card linked to the union’s bank account, but did not produce or otherwise make available the financial records he had maintained during his time as president. Burgess admitted to abusing his position to convert to personal use more than $32,000 in union funds while failing to keep or disclose receipts relating to his unauthorized expenditures as required under LMRDA.

Burgess faces a maximum sentence of 12 months in prison, a $100,000 fine and a one-year term of supervised release. He will be sentenced on April 10, 2019, before U.S. District Court Judge Anna J. Brown. As part of the plea agreement, Burgess will pay restitution of no less than $10,600 to Local 304, as ordered by the court. Burgess has already repaid $21,580 to the union.

The U.S. Department of Labor, Office of Labor-Management Standards, investigated this case. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – A criminal complaint was unsealed today in federal court alleging Luke De Roy Krieger, 39, of Camas, Washington, engaged in the coercion and enticement of a minor and distributed child pornography.

As alleged in the criminal complaint, on approximately August 14, 2018, undercover officers from the United Kingdom (UK) Police Eastern Regional Special Operations Unit contacted Homeland Security Investigations (HSI) London, England, office requesting assistance regarding a mobile app user who had engaged them in sexualized chat regarding young children. The user, later identified as Krieger, discussed his sexual interest in children and talked about traveling to the UK to engage in sexual activity with the undercover officer’s minor daughter.

Working with the mobile app maker and Frontier Communications, investigators were able to locate two IP addresses Krieger used to conduct the illicit communication. One IP address was associated with a residential internet account for Krieger’s home in Camas. The second was linked to a business internet account registered to the Washington County Sheriff’s Office in Hillsboro, Oregon, where Krieger is employed as a non-sworn Information Systems Analyst.

Investigators continued communicating with Krieger via the mobile app, posing both as an adult male residing in Boise, Idaho, and as a 13-year-old female the adult male was supposedly living with and sexually abusing. Krieger revealed having sexual fantasies about several minor females, including children who he had come into contact with regularly. He also shared his desire to use a spy cam to take voyeuristic photos and videos of minor girls in a state of undress.

Krieger repeatedly requested and sent photos of child pornography to the undercover officers and, on at least one occasion, a nude photo of himself from the neck down. In response to repeated statements by both the undercover adult and minor, Krieger confirmed that he was aware of the minor’s age. Eventually, the undercover adult invited Krieger to travel to Boise for the purpose of having sex with the undercover minor. Krieger was arrested without incident on December 18, 2018, in Hillsboro before attempting to travel out of state.

Krieger made an initial appearance today in federal court before U.S. Magistrate Judge Youlee Yim You. He will remain in custody pending a detention hearing scheduled for December 21, 2018.

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 HSI and the Vancouver, Washington Police Department’s Digital Evidence Gathering Unit. The Washington County Sheriff’s Office has fully supported and cooperated with the investigation.

This case is 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. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.

EUGENE, Ore.—Tyler Wayne Fuller, 29, of Madras, Oregon, pleaded guilty today, in separate criminal cases, to one count each of bank robbery and conspiracy to distribute and possess with intent to distribute methamphetamine.

According to court documents, on August 21, 2017, a man later identified as Fuller walked into the U.S. Bank branch on Southwest C Street in Madras. Fuller approached the victim teller and passed her a note that read “Give me your money and nobody gets hurt.” Fuller then told the teller not to play games. The teller gave Fuller $517 and pressed her alarm button as he exited the bank. Fuller was later arrested without incident during a traffic stop.

In a separate criminal matter, Fuller has admitted to being a member of a drug distribution conspiracy and possessing more than fifty grams of methamphetamine.

Fuller faces a maximum sentence of life in prison with a 10-year mandatory minimum, a $10 million fine and five years of supervised release. He will be sentenced on April 8, 2019 before U.S. District Court Judge Michael J. McShane.

As part of the plea agreement, Fuller has agreed to pay $517 in restitution.

The FBI, the Central Oregon Emergency Response Team, and Madras Police Department investigated this case. It is being prosecuted by Frank R. Papagni, Jr., Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – Jordan Thomas Prentice, 28, of Portland, was sentenced today to 60 months in federal prison for distributing child pornography using a BitTorrent peer-to-peer file-sharing network. Upon completion of his prison sentence, Prentice will be on supervised release for five years.

According to court documents, on July 3, 2015, an undercover agent with the Vancouver, Washington Police Department downloaded multiple files depicting infants, toddlers and other prepubescent children being sexually abused from a BitTorrent file-sharing network. Investigators traced the IP address associated with the files to Prentice’s residence in Portland. The National Center for Missing and Exploited Children (NCMEC) identified numerous files downloaded from Prentice’s IP address that depicted children identified in prior investigations and some of whom resided outside of Oregon.

On January 27, 2016, Homeland Security Investigations (HSI) agents executed a federal search warrant at Prentice’s Portland home. Prentice admitted to having viewed child pornography since he was 15 years old and having downloaded the illicit files for years using uTorrent software. Agents seized multiple devices from Prentice’s home and later located more than 600 images and 126 video files depicting child sexual abuse.

Prentice previously pleaded guilty to one count of distribution of child pornography on August 8, 2018. As part of his plea agreement, Prentice agreed to pay restitution to his victims and forfeit personal property used to facilitate his crimes.

This case was investigated by HSI and the Vancouver Police Department. It was prosecuted by Jane Shoemaker, Natalie Wight and Amy Potter, 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. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

HSI encourages anyone with information about the physical or online exploitation of children to call its toll-free tip line at 1-866-DHS-2-ICE or submit an online tip form. Both reporting methods are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.

Suspected child sexual exploitation may also be reported to the National Center for Missing & Exploited Children via its toll-free 24-hour hotline, 1-800-THE-LOST.

PORTLAND, Ore. — Paul Jumroon, also known as Veraphon Phatanakitjumroon, 55, formerly of Beaverton and Depoe Bay, Oregon, and a naturalized citizen originally from Thailand, was sentenced today by U.S. District Judge Anna J. Brown to 37 months in prison and ordered to pay more than $131,000 in restitution to four victims and more than $120,000 to the IRS in taxes due. The defendant previously pleaded guilty to forced labor, visa fraud conspiracy, and filing false tax returns. Today’s sentence was announced by Assistant Attorney General Eric Dreiband of Justice Department’s Civil Rights Division, U.S. Attorney Billy J. Williams of the District of Oregon, Acting Special Agent in Charge Steve Palmer of the FBI’s Portland Field Office, and Acting Special Agent in Charge Troy Burrus of IRS Criminal Investigation’s Seattle Field Office.

According to documents filed in court, 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. The defendants no longer own either restaurant. Paul Jumroon then lured four Thai chefs to the United States to work at the restaurants through the promise of a visa and false representations about their salaries and job responsibilities. Once the victims arrived, he confiscated their passports and documents and exploited and coerced their labor through debts, verbal abuse, and threats of financial and reputational harm, requiring them to work significant hours for minimal pay. Tanya Jumroon witnessed the mistreatment of the victims, and she benefited financially from their forced labor at the restaurants that she co-owned. Additionally, the defendants filed multiple false tax returns with the IRS by failing to report cash income earned from the restaurants between 2012 and 2015.

“Paul Jumroon’s violation of the law by obtaining fraudulent visas and exploiting vulnerable individuals for his own personal profit is disgraceful,” said Acting Assistant Attorney General Eric Dreiband. “The Department of Justice will continue to prosecute traffickers vigorously and secure justice for victims who have been mistreated and degraded by criminals.”

“Paul Jumroon has been brought to justice for preying on the hopes of vulnerable workers and using fear to compel work for little pay. He and his wife Tanya profited off of a degrading crime,” said U.S. Attorney Billy J. Williams. “This case demonstrates our firm commitment to holding traffickers accountable and restoring the rights, freedom and dignity of victims.”

“Life in America is built on the promise of freedom and choice. When these victims came to this country seeking a better life, Paul Jumroon instead cooked up a scheme of false promises, forced labor and abuse,” said FBI Acting Special Agent in Charge Steve Palmer. “Today’s sentence brings justice for them while also sending a strong message to those who think they can profit off others through coercion and intimidation.”

“Mr. and Mrs. Jumroon bullied and intimidated employees that trusted them in order to line their own pockets” said Troy Burrus, IRS Criminal Investigation Acting Special Agent in Charge. “The defendants thought they were above the law. They abused multiple victims and stole money from the American taxpayers. Today’s sentence demonstrates the government's determination to hold them accountable for their actions.”

Tanya Jumroon, also known as Thunyarax Phatanakit Jumroon, 59, of Beaverton, Oregon, will be sentenced tomorrow for conspiring with Paul Jumroon and others to commit visa fraud, for making and subscribing a false tax return, and benefitting financially from forced labor. Tanya Jumroon pleaded guilty to these charges in June 2018.

The District of Oregon is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.

This prosecution is the result of the joint investigation by the Oregon Foreign-Born Human Trafficking Taskforce, FBI, Homeland Security Investigations, IRS Criminal Investigation and Department of State’s Diplomatic Security Service, with assistance from the Department of Labor’s Wage and Hour Division and Portland Police Bureau. The case is being prosecuted by Assistant U.S. Attorneys Hannah Horsley, Scott Bradford and Steven Mygrant of the District of Oregon, and Lindsey Roberson of the Civil Rights Division’s Human Trafficking Prosecution Unit.

Paul Jumroon, also known as Veraphon Phatanakitjumroon, 55, formerly of Beaverton and Depoe Bay, Oregon, and a naturalized citizen originally from Thailand, was sentenced today by U.S. District Judge Anna J. Brown to 37 months in prison with three years’ supervised release and was ordered to pay more than $131,000 in restitution to four victims and more than $120,000 to the IRS in taxes due. The defendant previously pleaded guilty to forced labor, visa fraud conspiracy, and filing false tax returns. Today’s sentence was announced by Assistant Attorney General Eric Dreiband of Justice Department’s Civil Rights Division, U.S. Attorney Billy J. Williams of the District of Oregon, Acting Special Agent in Charge Steve Palmer of the FBI’s Portland Field Office, and Acting Special Agent in Charge Troy Burrus of IRS Criminal Investigation’s Seattle Field Office.

According to documents filed in court, between 2011 and 2014, defendants Paul Jumroon and 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. The defendants no longer own either restaurant. Paul Jumroon then lured four Thai chefs to the United States to work at the restaurants through the promise of a visa and false representations about their salaries and job responsibilities. Once the victims arrived, he confiscated their passports and documents and exploited and coerced their labor through debts, verbal abuse, and threats of financial and reputational harm, requiring them to work significant hours for minimal pay. Tanya Jumroon witnessed the mistreatment of the victims, and she benefited financially from their forced labor at the restaurants that she co-owned. Additionally, the defendants filed multiple false tax returns with the IRS by failing to report cash income earned from the restaurants between 2012 and 2015.

“Paul Jumroon’s violation of the law by obtaining fraudulent visas and exploiting vulnerable individuals for his own personal profit is disgraceful,” said Acting Assistant Attorney General Eric Dreiband. “The Department of Justice will continue to prosecute traffickers vigorously and secure justice for victims who have been mistreated and degraded by criminals.”

“Paul Jumroon has been brought to justice for preying on the hopes of vulnerable workers and using fear to compel work for little pay. He and his wife Tanya profited off of a degrading crime,” said U.S. Attorney Billy J. Williams. “This case demonstrates our firm commitment to holding traffickers accountable and restoring the rights, freedom and dignity of victims.”

“Life in America is built on the promise of freedom and choice. When these victims came to this country seeking a better life, Paul Jumroon instead cooked up a scheme of false promises, forced labor and abuse,” said FBI Acting Special Agent in Charge Steve Palmer. “Today’s sentence brings justice for them while also sending a strong message to those who think they can profit off others through coercion and intimidation.”

“Mr. and Mrs. Jumroon bullied and intimidated employees that trusted them in order to line their own pockets” said Troy Burrus, IRS Criminal Investigation Acting Special Agent in Charge. “The defendants thought they were above the law. They abused multiple victims and stole money from the American taxpayers. Today’s sentence demonstrates the government's determination to hold them accountable for their actions.”

Tanya Jumroon, also known as Thunyarax Phatanakit Jumroon, 59, of Beaverton, Oregon, will be sentenced tomorrow for conspiring with Paul Jumroon and others to commit visa fraud, for making and subscribing a false tax return, and benefitting financially from forced labor. Tanya Jumroon pleaded guilty to these charges in June 2018.

The District of Oregon is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.

This prosecution is the result of the joint investigation by the Oregon Foreign-Born Human Trafficking Taskforce, FBI, Homeland Security Investigations, IRS Criminal Investigation and Department of State’s Diplomatic Security Service, with assistance from the Department of Labor’s Wage and Hour Division and Portland Police Bureau. The case is being prosecuted by Assistant U.S. Attorneys Hannah Horsley, Scott Bradford and Steven Mygrant of the District of Oregon, and Lindsey Roberson of the Civil Rights Division’s Human Trafficking Prosecution Unit.   

PORTLAND, Ore.—On Wednesday, December 12, 2018, a federal jury in Portland returned guilty verdicts against Harry Dean Proudfoot III, 78, formerly of Tigard, Oregon, for running a fraudulent gold mining investment scheme that he used to steal $3.2 million from 140 investors. Proudfoot was convicted of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering.

“Harry Proudfoot and his children made many promises to their investors—promises they never intended to fulfill. They now join a long list of financial criminals whose schemes were cut short by diligent investigators working on behalf of victims. Pursuing criminals who prey on unknowing investors is a top priority for federal law enforcement in Oregon,” said Billy J. Williams, U.S. Attorney for the District of Oregon.

“The FBI is committed to investigating fraud schemes and deceptive practices by those who can cause devastating and irreparable financial harm to the members of our community. Together with its law enforcement partners, the FBI is dedicated to protecting the interests of the American public, so they can both invest and lend with confidence,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.

“Mr. Proudfoot and his children built a ‘house of cards’ with their false promises and when it collapsed, as these houses do, IRS-Criminal Investigation is proud to support its law enforcement partners to expose and bring to justice those responsible,” said IRS-Criminal Investigation Special Agent in Charge Darrell Waldon.

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 States of Washington and Colorado and 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.

Harry Proudfoot faces a maximum sentence of 20 years in prison, a $250,000 fine and three years’ supervised release on each count of wire fraud and 10 years in prison, a $250,000 fine and three years’ supervised release on each count of money laundering. He will be sentenced on April 3, 2019 before U.S. District Court Judge Michael H. Simon.

Co-defendant Matthew Proudfoot pleaded guilty to wire fraud and money laundering on November 1, 2017. He will be sentenced on January 9, 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. – Gregory Rex Wilson, 52, of Portland, was sentenced today to 84 months in federal prison and five years’ supervised release for distributing heroin and illegally possessing a firearm.

According to court documents, Wilson was part of a drug trafficking organization that transported heroin from El Monte, California to the Portland metropolitan area. The investigation revealed that Wilson was being supplied with heroin by “Chino Antrax,” later identified as co-defendant Pablo Flores. Flores had actively been trafficking heroin to Portland for more than a year. At the time of his arrest on December 12, 2016 in Portland, Wilson had 880 grams of heroin, 100 Xanax pills and a loaded Ruger 9mm pistol in his vehicle. Four additional firearms were later found in a second vehicle owned by Wilson, including one with an obliterated serial number.

On June 12, 2018, Wilson pleaded guilty in this case to one count of possession with intent to distribute heroin and one count of being a felon in possession of firearms. Three of Wilson’s co-defendants, Aaron Ray West, Ricardo Anguiano Cruz, Jr., and Jose Manuel Rodriguez, have also pleaded guilty to related charges. Flores awaits trial.

The case was investigated by the Clackamas County Interagency Task Force (CCITF), FBI, Homeland Security Investigations (HSI), the U.S. Drug Enforcement Administration (DEA), and the Portland Police Bureau. It was prosecuted by Matthew J. Semritc, Special 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.

MEDFORD, Ore. – Gonzalo Manzo, 33, of Fresno, California, was sentenced today to 188 months in federal prison and three years’ supervised release for conspiracy to distribute and possess with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.

According to court documents, in 2017, Manzo coordinated the shipment of a kilogram of cocaine from California to Southern Oregon. Manzo and his co-conspirators sold the cocaine to undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Oregon in exchange for six Colt .38 Super caliber pistols, two Beretta 9mm pistols with silencers, a Glock 9mm machine gun and $21,000 in cash. Manzo intended for the firearms and cash to be transported back to California but agents arrested Manzo and his co-conspirators and the firearms were seized by law enforcement.

Manzo 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 April 27, 2018.

The case was investigated by ATF and 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), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

Photos 1-3: Firearms received in exchange for cocaine

 

 

 

Photos 4-7: Screenshots from a 2015 YouTube music video depicting Manzo with firearms

 

EUGENE, Ore. – On Wednesday, December 5, 2018, William E. Wild, Sr., 48, of Redmond, Oregon, was sentenced to 120 days in federal prison and three years’ supervised release for endangering human life by manufacturing hash oil, a controlled substance.

According to court documents, on December 12, 2016, law enforcement and first responders responded to an explosion at Wild’s residence in Redmond. The explosion occurred in a detached garage where the defendant had been illegally manufacturing butane hash oil (BHO). The force of the explosion blew out Wild’s garage door. By his own admission, Wild had been smoking a cigarette in close proximity to the lab at the time of the explosion.

Officers on scene reported finding burnt clothing, a pressure cooker, a Pyrex dish, a large bin of marijuana stem bud and seed as well as an amber substance later identified as BHO. Officers also found a grow room adjacent to the garage with more than 20 mature marijuana plants. In total, investigators seized 57 mature marijuana plants; scales; packaging materials and containers; ledgers containing drug amounts, debts and receipts; approximately $20,000 in cash and several pipe bombs in Wild’s home.

Wild and his 18-year-old daughter were present at the time of the explosion, suffered burns and smoke inhalation and were transported by ambulance from the residence. Wild’s daughter was later intubated and flown by air-ambulance to Portland for treatment.

Wild, a first-time offender, previously pleaded guilty to one count of endangering human life on August 16, 2018. A restitution hearing is scheduled for February 7, 2019.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in partnership with the Central Oregon Drug Enforcement team (CODE), the Oregon State Police and the Redmond police and fire departments. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.

Damaged Garage Door Marijuana Plants Pipe Bombs

 

PORTLAND, Ore. – After deliberating for just 20 minutes, a federal jury returned guilty verdicts against Andrew Franklin Kowalczyk, 44, formerly of Portland, for the repeated sexual abuse and exploitation of three minor female victims.

“Andrew Kowalczyk’s actions have brought unthinkable distress and terror to the lives of his victims and their families. Our two prosecutors, each with many years’ experience handling similar cases, describe Kowalczyk’s conduct as the worst they’ve seen in their careers,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I applaud the unwavering resolve of our trial team, our partner investigators and the victim survivors who persevered against a defendant who attempted every conceivable tactic to delay justice for more than 10 years.”

“I am proud of the people on the FBI's Child Exploitation Task Force, people who work tirelessly to bring justice to victimized children and help put their abusers behind bars. This defendant will never violate our most vulnerable again, and I hope this sentencing sends a strong message to those who would sexually exploit children,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.

“Heinous crimes like those committed by the defendant must come to an end,” said Brad Bench, Special Agent in Charge of HSI Seattle. “I’m very proud of the agents and law enforcement partners responsible for removing this dangerous person from our streets. Let this be a warning to others who attempt to harm our children. We will work tirelessly to ensure you are brought to justice.”

According to court documents and information shared during trial, law enforcement first learned of Kowalczyk’s abuse in early 2008. On December 27, 2007, a Des Moines, Washington police officer stopped Kowalczyk for several traffic violations. Kowalcyzk did not own the vehicle he was driving, did not have a driver’s license and gave the officer a false name. After refusing the officer’s request to step out of the vehicle, Kowalczyk fled, leading police on a high-speed chase that was later terminated for public safety reasons.

Kowalczyk was later located at the Northwest Motor Inn in Puyallup, Washington. A records check run on the alias used by Kowalczyk to book his hotel room returned an outstanding arrest warrant for failing to appear in an unlawful use of a weapon case in Washington County, Oregon. Kowalczyk was arrested early the next morning when attempting to leave the hotel in a cab. Officers seized Kowalcyzk’s personal belongings including two pieces of luggage and a backpack.

In January 2008, Des Moines police detectives sought and obtained a state warrant to search computer equipment, a digital camera and digital storage devices found in Kowalczyk’s luggage. The searched returned a tremendous amount of child pornography including a number of images and videos that appeared to be homemade. Numerous videos and images depicted an unidentified male sexually abusing two very young children. Metadata embedded in many of the digital images revealed that they were created using the same camera found in Kowalczyk’s luggage.

Puyallup Police officers later published certain non-pornographic images of the victims and an adult woman found on Kowalczyk’s devices in an attempt to identify the victims. An adult woman, later identified as the victims’ mother, saw the images and contacted Puyallup Police. She confirmed she knew Kowalczyk and that he had regular access to her daughters in Portland. After reviewing some of the images seized, the victims’ mother was able to identify locations where the images were taken.

The victims’ mother told investigators she met Kowalczyk, a friend of her deceased brother, in 2003. In 2005, after the victims’ mother and her children wound up in a domestic violence shelter, Kowalcyzk offered to pay for them to stay in a motel. Between April and the beginning of June 2005, Kowalczyk arranged for the victims’ mother and her children to stay with or adjacent to him in three different Portland motels. Kowalcyzk and the victims’ mother later rented separate apartments.

The victims’ mother frequently left her children alone in Kowalczyk’s care while she searched for work or housing. The victims’ mother believed Kowalczyk treated the victims well, buying them clothing, diapers, shoes, and even a birthday cake for their second birthday and was unaware of the abuse that transpired. The cake—with the victims’ names on it—appeared in some of the non-pornographic images found on Kowalczyk’s devices.

Investigators were later able to track down the Portland motel rooms Kowalczyk rented for the family. Kowalczyk took photos of himself sexually abusing two of the minor victims at each location. He took sexually explicit photos of the third minor victim at his apartment in Southeast Portland. In March 2008, investigators conducted a federal search warrant of a storage locker Kowalczyk rented in Woodlawn, Washington. They found a sofa, a mirror and several shirts depicted in the pornographic images found on Kowalczyk’s devices.

A federal grand jury charged Kowalczyk with a single count of sexual exploitation of children on February 2, 2008. A superseding indictment with eight additional counts of sexual exploitation of children was returned on March 21, 2012. Kowalczyk sought the replacement of counsel more than a dozen times and filed extensive motions to suppress evidence, causing a decade-long delay in bringing the case to trial.

He faces a maximum sentence of 30 years in prison with a 15-year mandatory minimum on each of the nine counts. Kowalczyk will be sentenced in March 2019 before U.S. District Court Judge Michael W. Mosman.

The case was investigated by the FBI, Homeland Security Investigations (HSI), the Portland Police Bureau, and the Puyallup and Des Moines, Washington Police Departments. It was prosecuted by Scott M. Kerin and Gary Y. Sussman, 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. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. 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 www.fbi.gov/tips.

PORTLAND, Ore. – On November 29, 2018, Rene Elene Griffin Nunn, 59, of Vancouver, Washington, made an initial appearance in federal court before U.S. Magistrate Judge Jolie A. Russo.

A one-count indictment alleges Nunn conspired to possess with intent to distribute controlled substances. The indictment also alleges that, between September 2017 and January 2018, Nunn communicated with others about the price and quantity of methamphetamine and heroin, and in February 2018, drove from Vancouver to Portland with approximately 93 grams of heroin in her purse. According to yesterday’s hearing, she is a registered nurse employed at Adventist Medical Center in Portland.

Nunn was released pending trial. A three-day jury trial is scheduled for January 29, 2019 before U.S. District Court Judge Marco A. Hernandez. If convicted, Nunn faces a maximum sentence of 20 years in prison, a $1 million fine and a mandatory minimum three-year term of supervised release.

This case was investigated by U.S. Drug Enforcement Administration (DEA).

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

EUGENE, Ore.—Curran Millican Manzer, 37, of Springfield, Oregon, pleaded guilty today to a single count of possession with intent to the distribute marijuana after repeatedly shipping marijuana out of state.

“Illegal export continues to plague Oregon’s under regulated and insufficiently enforced state laws governing state-licensed marijuana. The extreme overproduction of marijuana in Oregon has prompted many individuals to seek out-of-state distribution opportunities to recoup the costs of both illegal and legal in-state production. Disrupting these interstate distribution channels remains a priority of our office,” said Billy J. Williams, U.S. Attorney for the District of Oregon.

According to court documents, in September 2017, the Springfield Police Department began an investigation after being contacted by United Parcel Service (UPS) regarding several packages Manzer shipped to Oklahoma City, Oklahoma that had a strong marijuana odor. UPS later confirmed that, in October 2017, Manzer sent several additional packages next day air to Oklahoma City also believed to contain marijuana. During the same time period, several packages containing numerous stacks of cash bound in $1,000 increments were sent to Manzer’s home address in Springfield.

In November 2017, Springfield Police obtained a search warrant for all packages sent or received by Manzer via UPS. Shortly thereafter, an officer was conducting surveillance at a UPS store in Springfield when he saw Manzer arrive in a pickup truck with “Curran’s Taxidermy” written on the side. The officer observed Manzer bringing six packages into the store, which he dropped off for next day shipment to Oklahoma. A Springfield Police canine unit responded to the scene and the canine alerted to the packages.

The Springfield Police officer executed a search warrant on the packages and located six large Styrofoam rocks containing 143 pounds of marijuana.

Manzer faces a maximum sentence of 20 years in prison, a $1 million fine and a three-year term of supervised release. He will be sentenced on February 26, 2019 before U.S. District Court Judge Ann Aiken.

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

This case was investigated by the Springfield Police Department and the U.S. Drug Enforcement Administration (DEA). It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – Antonio Oswaldo Burgos, 48, of Portland, pleaded guilty today to one count of bribery of a public official after attempting to bribe a U.S. Immigration and Customs Enforcement (ICE) deportation officer.

“Attempting to bribe a federal law enforcement officer is a serious crime and will be met with equally-serious consequences,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I commend the ICE officer involved in this case for responding to Burgos’ criminal proposition with the utmost level of professionalism and resolve.”

“We rely upon our officers to perform their duties with integrity,” said Brad Bench, Special Agent in Charge for HSI Seattle. “Because of the deportation officer’s actions, Burgos is being brought to justice. This case should send a strong message that those who attempt to coerce a public official will be punished.”

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. Burgos was arrested on June 29, 2018.

Burgos faces a maximum sentence of 15 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on May 6, 2019 before U.S. District Court Judge Michael H. Simon.

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

EUGENE, Ore. – Eric L. Scully, 35, of Cottage Grove, Oregon, pleaded guilty today to endangering human life and illegally possessing and manufacturing marijuana after a November 2017 butane honey oil (BHO) explosion in Cottage Grove.

“Manufacturing hash oil is extremely dangerous and poses a grave risk of injury or death to producers and unknowing, innocent victims. Federal authorities will continue targeting BHO producers and the illicit distribution networks providing them with butane gas. Together with our local partners, we will put an end to this severe public safety threat,” said Billy J. Williams, U.S. Attorney for the District of Oregon.

“This investigation highlights the significant dangers that these extraction operations pose,” stated Keith Weis, DEA Special Agent in Charge of the Pacific Northwest Region. He further added, “This explosive event in Cottage Grove’s community was caused by highly reckless criminal activities surrounding butane honey oil (BHO) production, this time we were very lucky that lives were not lost.”

According to court documents, on November 16, 2017, the Cottage Grove Police and Fire Departments responded to an explosion at a storage facility in Cottage Grove. Officers found Scully at a local hospital where he was being treated for serious burn injuries. Investigators later learned that, at the time of the explosion, at least three other individuals were inside the facility.

Two days later, Cottage Grove Police and U.S. Drug Enforcement Administration (DEA) agents executed a search warrant at the storage facility. Inside, they found a large, sophisticated, and unlicensed BHO extraction lab. BHO is a concentrated form of marijuana extracted using highly flammable or combustible solvents. During the search, agents found more than 1,900 pounds of marijuana bud and shake, 728 marijuana plants and over 80 pounds of marijuana extract. Each plant was either mature or had leaves and readily observable root formation.

The investigation determined that while manufacturing BHO, one of Scully’s machines, located in a room containing combustibles, caught fire. The machine and combustibles exploded, injuring Scully and placing the other individuals present at substantial risk of harm.

Scully faces up to 40 years in prison with a five-year mandatory minimum sentence, a $5 million fine and a mandatory four-year term of supervised release. The U.S. Attorney’s Office and defense counsel are jointly recommending a non-binding, 87-month sentence for Scully who will be sentenced on February 21, 2019 before U.S. District Court Judge Michael J. McShane.

As part of the plea agreement, Scully agrees to pay restitution to each victim as determined by the court, including payments for property damage, physical injuries caused by the explosion and the reimbursement of insurance companies. Scully also agreed to forfeit $25,980 in criminal proceeds and a pickup truck and trailer used to facilitate his crimes.

This case was investigated by DEA and the Cottage Grove Police Department. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—Ronald Eugene Stover, 64, of Tualatin, Oregon, pleaded guilty today to one count of engaging in monetary transactions in property criminally derived from wire fraud and a scheme to defraud investors.

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.

As alleged in the count of conviction, Stover emailed a victim in May 2012, 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 faces a maximum sentence of 10 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on February 25, 2019 before U.S. District Court Judge Ann Aiken. As part of the plea agreement, Stover has agreed to pay more than $3.2 million in restitution and nearly $169,000 to satisfy a forfeiture money judgement.

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

PORTLAND, Ore. – William Borges, 20, of Otis, Oregon, pleaded guilty today to one count of distributing child pornography.

According to court documents, investigators identified Borges in September 2016 as part of an ongoing investigation by the FBI’s Sacramento Field Office into the use of Dropbox, a cloud-based file sharing application, to distribute media depicting the sexual exploitation of children. A federal search warrant issued to Dropbox produced the email address Borges used to create a Dropbox account identified by investigators as containing child pornography. Investigators later matched three video uploads to Dropbox depicting the sexual abuse of young children to the IP address of Borges’ home in Otis. During a search of Borges’ home, he admitted to possessing child pornography and trading images and videos using Kik Messenger and Dropbox.

Borges faces a maximum sentence of 20 years in prison, a $250,000 fine and a lifetime term of supervised release. He will be sentenced on February 11, 2019 before U.S. District Court Judge Ann Aiken.

The FBI Sacramento Child Exploitation Task Force (CETF) and FBI Salem Resident Agency investigated this case. It is being prosecuted by Amy Potter, Assistant U.S. Attorney for the District of Oregon.

The FBI’s 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, Ore.—U.S. Attorney Billy J. Williams announced today that since the beginning of May 2018, federal law enforcement authorities and their task force partners have seized 158 pounds of heroin, 600 grams of oxycodone, and half a pound of fentanyl.

Combined, the seizures remove nearly three million individual user doses from statewide distribution networks. The enforcement effort has already netted 19 arrests, 17 guilty pleas and nine criminal sentencings of active drug traffickers with numerous cases still pending.

“The opioid addiction crisis continues to impact millions of Americans every year, many of whom have lost loved ones or continue to watch as their friends or family members struggle with addiction,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Bringing this crisis to an end requires all Americans—law enforcement and public health officials as well as ordinary citizens—to take action. Visit www.linesforlife.org or another addiction support organization to learn how you can make a difference in your community.”

“The numbers are heart wrenching,” said Keith Weis, DEA Special Agent in Charge for the Pacific Northwest. “In a time of unprecedented health risks facing our society, we must respond aggressively head-on in a multi-faceted, community-based strategy that includes law enforcement, prevention and treatment specialists all working hand in hand to help our most vulnerable members facing life or death struggles against addiction. Every person lost in this opioid crisis is one too many.”

“Opioid abuse in Oregon involves a dangerous cocktail of street drugs (such as heroin and fentanyl) and prescription meds (such as oxycodone, hydrocodone, and morphine). Whether a person starts down the path to addiction on the street or in a doctor's office, the result is equally devastating to the victim's family and community. Because the impact is so significant, the FBI and our partners are prioritizing our work to identify the dealers and doctors who are driving this epidemic,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.

According to the Centers for Disease Control and Prevention (CDC), drug overdoses killed a record 72,000 Americans in 2017. In 2016, 66% of the more than 66,000 overdose deaths involved an opioid. Drug overdose is now the leading cause of death in the U.S. In 2017, the CDC estimated the national economic burden of prescription opioid overdose, abuse, and dependence at $78.5 billion annually.

In Oregon, the total number of deaths related to drug use increased 11 percent from 2013 to 2017, with 546 drug related deaths in 2017 alone. The use of prescription opioids in Oregon continues to grow dramatically. Nearly half of the prescriptions filled at Oregon retail pharmacies in 2017 were for opioids. As a result, Oregon has one of the highest rates of prescription opioid misuse in the country, with an average of three deaths every week from prescription opioid overdose.

On November 2, 2018, DEA released its 2018 National Drug Threat Assessment. The report paints a bleak picture of the state of drug abuse in the U.S. According to the report, controlled prescription drugs are responsible for the largest number of overdose deaths of any illicit drug class and have been since 2011. Between 2013 and 2016, heroin deaths nearly doubled, exacerbated by the increased adulteration of heroin with fentanyl and other synthetic opioids. Of all opioids, the abuse of illicit fentanyl and other synthetic opioids has led to the greatest number of deaths.

The U.S. Attorney’s Office for the District of Oregon works in partnership with federal, state, local and tribal law enforcement agencies to investigate and prosecute drug trafficking cases involving opioids. Recent prosecutions include:

U.S. v. Brett Allen McNeal

Brett Allen McNeal was the final Oregon defendant sentenced for distributing oxycodone as part of a large, interstate opioid-trafficking organization. He was sentenced to three months in federal prison on October 2, 2018.

The organization was structured around Daniel Cham, a doctor practicing in La Puente, California, who would illegally provide prescriptions for oxycodone, hydrocodone, and other powerful medications in exchange money orders and cash. The narcotics were moved from Southern California through a network of redistributors for eventual sale in Oregon.

Cham would write prescriptions to individuals both known and unknown to him and to others he knew to be prolific drug dealers and addicts. He regularly sold prescriptions to John Bryden, an Oregon resident, who in turn would sell them to other co-conspirators, including Kevin Grimes, Marcela Cooper, and Austin Alderete, for distribution across Oregon.

McNeal purchased oxycodone from Alderete and sold it for a profit to end users. One of those end users, Jessica Morretti, died of an overdose on April 13, 2012. According to text messages on Moretti’s cell phone from the evening she overdosed, McNeal had provided her with five 30mg oxycodone pills the same day.

Cham was sentenced on March 14, 2018 in the Central District of California to more than 13 years in federal prison.

This case was investigated by the FBI.

Read More

U.S. v. Christian Jensel Chaidez

Christian Jensel Chaidez was sentenced to 120 months in federal prison on September 4, 2018 for trafficking heroin and other narcotics into Oregon for distribution in the Salem, Oregon metropolitan area. Chaidez was a local affiliate of a Los Angeles, California-based drug trafficking network.

Using intercepted wire calls, investigators learned that a co-defendant would provide Chaidez with quantities of heroin that Chaidez would, in turn, sell in and around Salem. In November and December 2016 investigators used an undercover informant to purchase one half pound of methamphetamine from Chaidez on two different occasions.

By June 2017, when federal prosecutors unsealed a 12-person indictment, the network, which began primarily as a methamphetamine and cocaine distribution organization, was rapidly expanding into the heroin market. The arrests of Chaidez and others have significantly disrupted the distribution of methamphetamine, cocaine, and other narcotics in the Salem area.

This case was investigated by DEA.

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U.S. v. Christopher James Fleet

On September 4, 2018, Christopher James Fleet, 23, of Portland, was sentenced to 84 months in federal prison and five years of supervised release for possessing distribution quantities of methamphetamine and two firearms.

On August 23, 2017, deputies from the Multnomah County Sheriff’s Office (MCSO) Special Investigation Unit were conducting surveillance at a known drug and gang house in Portland. They observed a vehicle parked in front of the house they believed was connected with Fleet, a drug dealer with an outstanding arrest warrant. Upon leaving the house and attempting to drive away, deputies blocked Fleet using unmarked vehicles and approached him wearing marked law enforcement raid vests. After initially refusing to comply with the deputy’s commands to raise his hands and failing to find an escape route, Fleet surrendered.

During the arrest, deputies found a Kel Tec 9mm firearm and distribution quantities of heroin and methamphetamine on Fleet’s person. They also found a locked backpack in Fleet’s vehicle. The backpack was later found to contain .40 caliber Sig Sauer pistol, drug records, and a digital scale.

This case was investigated by the MCSO Special Investigation Unit.

Read More

The Department of Justice has been resolute in its fight to end the opioid addiction crisis. All 94 U.S. Attorney’s Offices have an opioid action plan with strategies specific to their districts. The department has assigned more than 300 federal prosecutors to U.S. Attorney’s Offices and hired more than 400 DEA task force officers.

In July 2018, the department announced the formation of Operation Synthetic Opioid Surge (S.O.S) that seeks to reduce the supply of deadly synthetic opioids in high impact areas. In August 2018, the department and DEA proposed decreases in manufacturing quotas for the six most frequently misused opioids for 2019. In October 2018, the department announced grant awards totaling more than $320 million dollars to help those most impacted by the opioid crisis including crime victims, children, families and first responders.

WASHINGTON—Deputy Attorney General Rod J. Rosenstein today named Billy J. Williams, U.S. Attorney for the District of Oregon, chair of the Attorney General’s Marijuana Working Group. The working group is part of the Attorney General Advisory Committee’s (AGAC) Controlled Substances Subcommittee.

“I am honored to be named chair of the Marijuana Working Group and look forward to working with Attorney General Sessions, Deputy Attorney General Rosenstein and my fellow U.S. Attorneys on this important policy area,” said U.S. Attorney Williams. “From our statewide summit in February to the release of our district enforcement strategy this summer, we’ve learned a lot from stakeholders representing many diverse interests. There is one thing everyone agrees on: a broad need for stronger regulation. This working group provides a valuable forum for sharing ideas and learning from the experiences of others in an effort to develop innovative, multi-district enforcement strategies to address the many impacts of a nascent industry.”

The AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. The AGAC represents the nation’s U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys.

PORTLAND, Ore. – Pamela S. Hediger, 55, of Corvallis, Oregon, pleaded guilty today to one count each of attempting to evade or defeat taxes and engaging in monetary transactions with property derived from specified unlawful activity.

“Pamela Hediger used her position of trust to steal large sums of money from her business associates, clients and investors. Her lavish lifestyle and spending reflected her complete disregard for the interests of those she stole from,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Not only did Hediger steal from those she knew, she stole from the U.S. Treasury and her fellow citizens by shamelessly evading her tax obligations.”

“No matter what the source of income, including embezzlement, all income is taxable,” said IRS-Criminal Investigation (IRS-CI) Acting Special Agent in Charge Troy Burrus. “Pamela Hediger’s failure to file income tax returns and evading her tax liability is not a victimless crime since all Americans pay when others swindle the government.”

According to court documents, between 2010 and 2017, Hediger was an attorney, president, and managing shareholder of a law firm in Corvallis. Hediger focused on personal injury cases and independently managed her own client relationships. During her association with the firm, Hediger systematically embezzled funds from the firm’s client trust and business operating accounts, both of which she had signing authority over. The embezzled funds came from insurance proceeds payable to Hediger’s clients.

During 2011, 2012, and 2014, Hediger also knowingly devised a material scheme to defraud two investors in shopping center projects in Seaside, Oregon and Astoria, Oregon. Hediger falsely promised high rates of return and short terms in exchange for their investments. Rather than invest the money as promised, Hediger converted the investment funds to her own use in order to support her lavish lifestyle.

Hediger used the stolen funds for a variety of purposes, including: to pay her mortgage, to fund construction and landscaping projects at her home, to repay individuals who had loaned her money to purchase her share of the law firm and to fund lavish vacations, a timeshare, plastic surgery, automobile expenses and a Hawaiian band for a party. Stolen funds were even used to pay credit card accounts Hediger had opened in the names of relatives and an unsuspecting associate.

To conceal her schemes, Hediger falsified the law firm’s accounting records by mischaracterizing the identity of payees and the purpose of payments, submitted false documentation to support the expenditures and lied to firm employees when questioned about expenditures.

Hediger failed to file income tax returns on nearly $2.2 million between 2011 and 2017, evading more than $471,000 in taxes due.

Hediger faces a maximum sentence of 15 years in prison, a $500,000 fine and three years of supervised release. She will be sentenced on January 10, 2019 before U.S. District Court Judge Anna J. Brown.

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

PORTLAND, Ore.—United States Attorney Billy J. Williams announced today that Assistant United States Attorney (AUSA) Adrian L. Brown will lead the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018 election.

AUSA Brown has been appointed to serve as the District Election Officer (DEO) for the District of Oregon, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

“Every citizen must be able to vote without interference or discrimination and to have that vote counted without being stolen because of fraud,” said U.S. Attorney Williams. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process. Ensuring free and fair elections depends in large part on the cooperation of the American electorate,” continued Williams. “It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my office, the FBI, or the Justice Department’s Civil Rights Division.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at ballot drop boxes by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).

The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Brown will be on duty in the District of Oregon while the polls are open. She can be reached by the public at the following telephone number: 503-727-1003.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at 503-224-4181.

Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

MEDFORD, Ore. – On Monday, October 29, 2018, Jonathan Alan Ochoa, 31, of Talent, Oregon, 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.

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.

Ochoa faces a maximum sentence of life in prison, a $5 million fine and four years of supervised release. He will be sentenced on February 21, 2019 before U.S. District Court Judge Ann Aiken. Manzo pleaded guilty to the same charges on August 27, 2018. Quevedo also faces criminal charges; his case is pending in federal court.

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), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

WASHINGTON—In recognition of National Domestic Violence Awareness Month, Deputy Attorney General Rod Rosenstein met with Acting Director of the Office on Violence Against Women (OVW) Katherine Sullivan and other senior Justice officials today to discuss the Violence Against Women Act’s (VAWA) essential focus on criminal justice responses to domestic violence.  Deputy Attorney General Rosenstein also announced new OVW funding for the department’s Tribal Special Assistant U.S. Attorney (SAUSA) program.

“There is no place in our society for domestic violence, and holding perpetrators accountable and providing services to victims is a critical part of the Department’s response,” said Deputy Attorney General Rosenstein. “During this National Domestic Violence Awareness Month, I encourage law enforcement, prosecutors, judges, and other criminal justice professionals to speak out about domestic violence and redouble efforts to bring perpetrators to justice.  I am especially pleased to announce new funding to support four new Tribal Special Assistant U.S. Attorneys, whose collaboration across the tribal and federal jurisdictional landscape is a model for effective prosecution of violence against women.”

“We are pleased to join Deputy Attorney General Rosenstein in announcing the appointment of a new Tribal Special Assistant U.S. Attorney here in Oregon,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Pursuing justice on behalf of tribal communities is a priority for our office and has been for a long time. We are deeply committed to continuing to work with our tribal law enforcement partners to reduce violent crime in tribal communities, especially crimes against tribal women. We fully expect this position will show positive and meaningful results for the Confederated Tribes of the Umatilla Indian Reservation.”

OVW’s Tribal Special Assistant United States Attorneys (Tribal SAUSAs) Program is another Department initiative supporting innovative prosecutorial collaborations. These prosecutors bring cases in both tribal and federal courts, and help ensure that tribal and federal authorities have a seamless response in prosecuting cases under their jurisdiction. In OVW’s pilot project, Tribal SAUSAs reported a wide range of successes, including prosecution of cases that otherwise may not have been brought.

Today, OVW is announcing new Tribal SAUSA Program awards of $437,500 each to the following four tribes:

•           Salt River Pima-Maricopa Indian Community (Arizona);

•           Confederated Tribes of the Umatilla Indian Reservation (Oregon);

•           Rosebud Sioux Tribe (South Dakota); and

•           Confederated Tribes of the Colville Reservation (Washington).

Commemorated in the United States since 1987, National Domestic Violence Awareness Month educates the public, commemorates and honors victims and survivors, and connects service providers across the country. President Trump has continued the tradition of issuing a presidential proclamation to recognize October as National Domestic Violence Awareness Month.

Strengthening criminal justice is the core component of VAWA, and Acting Director Sullivan pointed to the Improving the Criminal Justice Response to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program (ICJR) as the “backbone of VAWA.” ICJR helps communities investigate and prosecute these crimes and keep violent criminals off the street. Since 1997, OVW has made 1,655 ICJR grant awards totaling over $847,000,000. In fiscal year 2018, OVW made 54 ICJR awards totaling $32,610,116.

This funding has supported justice responses including dedicated police and prosecution units, specialized courts, and offender monitoring in 538 communities. For example, Fairfax County in Virginia uses ICJR funding to support a specialized prosecutor for domestic violence and stalking cases and to monitor the enforcement of civil protective orders.

ICJR also funds unique collaborative approaches, such as Family Justice Centers – “one stop shops” housing police, prosecution, and victim services in one place – and multidisciplinary teams that decrease domestic violence homicides. Since 2012 OVW has awarded over $24 million in ICJR funding to reduce domestic violence homicide, including pilot sites, nationwide training, and research. This includes six awards totaling $3,299,977 for fiscal year 2018.

Many victims also face substance abuse issues, and may struggle to access the justice system and get the protection they need. OVW is today announcing an award of $450,000 to the Alliance for HOPE International to train Family Justice Centers to address this complex challenge. The Alliance for HOPE International will partner with the National Center on Domestic Violence, Trauma, and Mental Health.

VAWA was first authorized in 1994 and focused on strengthening the criminal justice response to domestic violence. VAWA was reauthorized in 2000, 2005, and 2013, and each reauthorization included expansions such as addressing elder abuse, combatting stalking, and serving victims of sex trafficking in Indian Country. More information about VAWA is available at www.justice.gov/ovw/legislation.

PORTLAND, Ore.—Today, the United States Attorney’s Office for the District of Oregon unsealed a nine count indictment charging drug trafficking offenses against 22 members of a criminal organization responsible for trafficking large quantities of methamphetamine, heroin and cocaine in Oregon and Washington State.

Early this morning, FBI, Homeland Security Investigations (HSI – U.S. Department of Homeland Security), the Westside Interagency Narcotics (WIN) Task Force and the Clackamas County Interagency Task Force (CCITF) conducted a multi-agency law enforcement operation leading to the arrest of 17 defendants.

According to the unsealed indictment, a drug cartel based in Michoacan, Mexico distributed methamphetamine, heroin and cocaine to Victor Alvarez Farfan, 43, of Oregon City, Oregon. Farfan and his associates manufactured crystal methamphetamine from liquid form and distributed it to other members of the conspiracy for sale in Hillsboro, Gresham, Portland and Hood River, Oregon, and Tacoma, Washington. Farfan and his associates also distributed heroin and cocaine in the Portland-metro area. John Armas, 41, of Hillsboro, distributed methamphetamine he received from Farfan via a local distribution cell in the Hillsboro area.

“While our country suffers from the effects of pervasive substance abuse, Mexican drug trafficking cartels continue bringing deadly narcotics into our communities. Stopping these transnational organizations requires steadfast and responsive law enforcement partnerships at all levels of government,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Today, thanks to the vigilance and sustained cooperation of law enforcement agencies across Oregon, this cartel’s efforts to maintain their foothold in our communities has been dealt a lasting blow. We will continue pursuing criminal drug traffickers and ensure their actions are met with severe consequences.”

“Meth, heroin and cocaine combine to form a deadly cocktail that fuels a cycle of violence and addiction in our community,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “The FBI and our partners are targeting the power players in these drug trafficking organizations as we work to reduce the flow of guns, drugs and dirty money into Oregon.”

“I commend the collaborative efforts by all of those involved in this important operation,” said Brad Bench, Special Agent in Charge of HSI Seattle. “HSI is committed to dismantling these types of illicit drug trafficking organizations and bringing those involved to justice.”

“We are unrelenting in our work to stop illegal drug traffickers,” said Pat Garrett, Washington County Sheriff. “The teamwork displayed—local, federal and across state lines—makes me thankful for the strong partnerships we have in public safety.”

“This is another clear example of public safety working together to make a difference at every level—city, county, state and federal agencies,” said Craig Roberts, Clackamas County Sheriff. “I can attest that countless front line officers have been working around the clock to hold major drug traffickers accountable for their criminal activities. Our united message is: “don’t bring this to Oregon or we in law enforcement will soon be knocking on your door.”

The nine-count indictment unsealed today alleges members of the organization conspired to possess with the intent to distribute and distribute methamphetamine, heroin, and cocaine; use a communication facility, including cellular telephones, in the commission of a controlled substances felony; and maintain drug-involved premises to manufacture and distribute controlled substances. Other charges include the interstate distribution of drug proceeds and money laundering.

Named defendants include:

• Victor Alvarez Farfan is charged with conspiracy, two counts of possession with intent to distribute methamphetamine, and conspiracy to commit the laundering of monetary instruments.
• John Armas is charged with conspiracy, possession with intent to distribute methamphetamine, and conspiracy to commit the laundering of monetary instruments.
• Silverio Rubio Valdovinos, 35, of Gresham, is charged with conspiracy.
• Eduardo Alvarez Farfan, 24, of Gresham, is charged with conspiracy, possession with intent to distribute cocaine, and conspiracy to commit the laundering of monetary instruments.
• Roberto Carlos Farfan Alvarez, 23, of Oregon City, is charged with conspiracy and possession with intent to distribute methamphetamine.
• Genaro Fernandez Gonzalez, 26, of Salem, Oregon, is charged with conspiracy.
• Randy Eugene Roberts, 51, of Hillsboro, is charged with conspiracy.
• Kathleen Joan Roberts, 53, of Hillsboro, is charged with conspiracy.
• Socorro Elena Gutierrez, 38, of Hillsboro, is charged with conspiracy.
• Taylor Michael McKemie, 55, of Hillsboro, is charged with conspiracy and conspiracy to commit the laundering of monetary instruments.
• Keith Frederick Teufel, 59, of Hillsboro, is charged with conspiracy and possession with intent to distribute methamphetamine.
• Randall Deal Mauel, 47, of Chehalis, Washington, is charged with conspiracy.
• Rene Diaz Gutierrez, 36, of Vancouver, Washington, is charged with conspiracy and possession with intent to distribute methamphetamine.
• Catherine Arlene Cunningham, 51, of Hood River, is charged with conspiracy.
• Kirstie Alexandria Mirelez, 27, of Portland, is charged with conspiracy.
• Jessica Marie Stinnett, 39, of Astoria, Oregon, is charged with conspiracy and possession with intent to distribute methamphetamine.
• Athena Marie Johnson, 48, of Hillsboro, is charged with conspiracy.

15 of the 22 defendants were arraigned in federal court today. The identities of the five remaining defendants remain under seal. All defendants are expected to make their first appearances within one week.

This case is the result of a joint investigation by FBI, HSI, WIN, and CCITF. WIN includes representatives from the Washington County Sheriff's Office, the Beaverton Police Department, the Hillsboro Police Department, the Tigard Police Department, the Oregon National Guard Counterdrug Program, and the FBI. CCITF includes representatives from the Clackamas County Sheriff's Office, Clackamas County Community Corrections, Oregon City Police Department, Canby Police Department, the FBI and DHS/Homeland Security Investigations (HSI). Other agencies assisting with today's takedown include: Oregon State Police, the Multnomah County Sheriff's Office, the Marion County Sheriff’s Office, the Clatsop County Sheriff's Office, the Hood River County Sheriff's Office, the Gresham Police Department, the Salem Police Department, the Port of Portland Police Department, the Portland Police Bureau and the U.S. Drug Enforcement Administration.

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.

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

PORTLAND, Ore. – Martin J. Shain, 61, of Seattle, Washington, was sentenced today to 46 months in federal prison and three years’ supervised release for engaging in a fraud scheme with a former Oregon Department of Energy Employee. Shain was also ordered to pay more than $520,000 in restitution.

“At the expense of taxpayers, small businesses, and the State of Oregon, Martin Shain and Joseph Colello orchestrated a corrupt scheme to profit off the sale of government tax credits. Corruption schemes involving public employees foster a distrust in government that can take years to restore,” said Billy J. Williams, U.S. Attorney for the District of Oregon.

“Mr. Shain undermined the process of fair and open competition when he paid kickbacks in exchange for ODOE tax credit sales,” said IRS-Criminal Investigation Special Agent in Charge Darrell Waldon. “IRS-Criminal Investigation is committed to investigating individuals who engage in corruption and tax fraud.”

“Treating a government program as a personal ATM risks the integrity of all public servants who have responsibility for protecting Oregon's resources. The fight against public corruption is a high priority for the FBI, and we look to the public to help us identify those government officials who are taking advantage of their powers and positions," said Renn Cannon, Special Agent in Charge of the FBI in Oregon.

According to court documents, between June 2012 and March 2015, Shain and Joseph Colello, a former employee of the Oregon Department of Energy’s (ODOE) Business Energy Tax Credit (BETC) program, maintained a secret business relationship whereby the two would personally profit from the sale and purchase of Oregon BETCs.

Shain and Colello devised a plan whereby Colello would give Shain the names of BETC sellers and interested buyers—information he had access to as an ODOE employee. Colello would then contact the sellers and buyers to negotiate credit transfers, but made it appear as though the Shain had brokered the deals. Shain created a company in the name of his relative in order to receive commission payments from the sellers of the tax credits and to conceal their earned income from the IRS. Shain charged sellers a 1-2% fee, undercutting brokers who typically charged a 10% fee for facilitating similar transfers. Colello would receive a portion of this fee as a kickback.

Between 2012 and 2015, Shain deposited over $1.3 million in income from the commissions charged to sellers of BETC credits. He would transfer a portion of these funds into a personal account from which he would purchase and issue biweekly cashier’s checks payable to Colello. Over the course of the conspiracy, Shain purchased and issued approximately 58 cashier’s checks to Colello or Colello’s girlfriend. In total, Colello received more than $300,000 in bribe payments for his role in the scheme. Shain failed to report more than $1.34 million in income received brokering tax credit sales on four income tax returns between 2012 and 2015.

Colello pleaded guilty to one count of conspiracy to engage in monetary transactions in property derived from specific unlawful activity, one count of conspiracy to defraud the United States, and one count of filing a false income tax return on March 15, 2018. On April 3, 2018, he was sentenced to 60 months in prison and was ordered to pay more than $81,000 in restitution.

Shain previously pleaded guilty to one count each of conspiracy to defraud the U.S. and tax evasion on June 20, 2018. He will self-surrender to the U.S. Marshals on October 25, 2018.

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

PORTLAND, Ore. – On October 16, 2018, a federal grand jury in Portland charged retired attorney Bruce L. Lamon, of Hillsboro, Oregon, with evading $744,000 in personal income taxes.

Lamon is charged in a two-count indictment alleging he 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.

Between 2006 and 2012, Lamon worked as a commercial litigator at a law firm in Honolulu, Hawaii. Lamon retired in 2012 and moved to Hillsboro. Between November 2012 and December 2015, in the District of Oregon, Lamon is alleged to have committed numerous affirmative acts to evade his tax obligations. These acts include but are not limited to titling vehicles in his former spouse’s name and purchasing rental properties with cash using an LLC registered in Hawaii to conceal these assets from the IRS.

This case is being investigated by IRS Criminal Investigation (IRS-CI) and prosecuted by Seth D. Uram, 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.

EUGENE, Ore. – A three-count indictment was unsealed in federal court today charging John Widener Jordan, 38, and Michael James Friesen, 32, both of Prineville, Oregon, with conspiracy to transfer and unlawful possession of a machine gun.

According to the indictment, between May and June 2018, Friesen agreed to broker the sale of a Guide Lamp, Model M3A1, .45 ACP caliber machine gun for Jordan. Between May 30 and June 5, Friesen discussed the sale price of the firearm with an undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) posing as a potential purchaser. Friesen confirmed for the agent that he had seen the firearm function as a machine gun.

On June 6, Friesen met the undercover agent in a motel room in Prineville. Shortly thereafter, Jordan brought the firearm to the motel room and completed the transaction in exchange for $3,000 in cash. Jordan in turn paid Friesen for arranging the sale.

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

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

The case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

PORTLAND, Ore. – On Wednesday, October 17, 2018, a federal jury in Portland found Shane Britton, 43, of Pendleton, Oregon, guilty of abusive sexual contact.

According to court documents and evidence presented at trial, in June 2016, Britton was staying at a residence shared by the victim and her mother on the Umatilla Indian Reservation. The victim and her mother are both enrolled members of the Confederated Tribes of the Umatilla Indian Reservation. Britton is not a tribal member.

During his stay, Britton subjected the victim to a series of unwanted and progressively more invasive physical encounters. In a recorded interview, Britton initially denied the allegation of abusive sexual contact, but later admitted he inappropriately touched the victim. Britton eventually told law enforcement officers that “in no way shape or form did [the victim] do anything wrong or provoke” his abusive conduct.

Britton faces a maximum sentence of two years in prison, a $250,000 fine and five years’ supervised release. He will be sentenced on Wednesday, January 23, 2019, before U.S. District Judge Michael H. Simon.

The FBI investigated this case in partnership with the Umatilla Tribal Police Department. It was prosecuted by Jennifer Martin and Natalie Wight, Assistant U.S. Attorneys for the District of Oregon.

EUGENE, Ore. – Shawn Sherman Wilson, Jr., 27, of Harrisburg, Oregon, was sentenced today to 60 months in federal prison and five years’ supervised release for dealing heroin and illegally possessing a firearm.

According to court documents, law enforcement began investigating Wilson in July 2017 after receiving a tip from a confidential source that he was trafficking heroin in and around Eugene. An undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) contacted Wilson and arranged to purchase an ounce of heroin. They agreed to meet on July 24, 2017 in front of Taylor’s Bar & Grill, a popular night spot in Eugene near the University of Oregon.

At the meeting location, the ATF agent entered Wilson’s car, sitting in the front passenger seat. Wilson had a Smith & Wesson 9mm semi-automatic pistol sitting between his legs with the pistol’s handle positioned for easy access. The agent said “I see you got the heat.” Wilson replied, “yeah, while I’m running around town.” Wilson grabbed the firearm and showed it to the agent, telling the agent the firearm belonged to his girlfriend and he was interested in purchasing another.

The ATF agent subsequently completed the heroin purchase, giving Wilson $1,200 in cash. Wilson was later arrested in Douglas County on August 6, 2017. When arrested, Wilson possessed a Smith & Wesson 9mm pistol matching the description of the firearm observed by the undercover agent during the controlled buy.

Wilson previously pleaded guilty to one count each of possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime on May 30, 2018.

This case was investigated by ATF and prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.

The case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

PORTLAND, Ore. – Isaac Benjamin Voss, 41, of Clark County, Washington, was sentenced today to 37 months in prison and three years’ supervised release for defrauding domestic and foreign investors who believed they were investing in a viable clean energy company.

According to court documents, in 2007, Voss made a deal with a Canadian scientist and entrepreneur to raise funds to support the development of a technology that would derive electricity and petroleum-equivalent fuels from any carbon bearing material. Over a four-year period beginning in 2011, Voss used his company, XFuels, as a vehicle for soliciting investments from individuals abroad and in Oregon, California, and Washington state.

Voss defrauded investors using elaborate marketing materials, including flyers, brochures and a website, containing false information about his company, the technology and the investment opportunity. He claimed that XFuels owned a commercial refinery in Canada and that another was being constructed in Washington state. The plants were said to be using the technology to produce "clean fuel, clean chemicals, [and] clean power from garbage, biomass, and plastic."

To reduce the perceived risk of the venture, Voss told investors that more than 90 percent of the project’s funding would come from other institutional and private lenders and that he had commissioned an independent, third-party feasibility study that guaranteed the project’s commercial viability. In reality, XFuels had not constructed any facilities and the only capital raised was from other individual investors in the U.S. and abroad. Moreover, the feasibility study relied solely on information provided by Voss himself and did not employ any commercially accepted methods to validate the technology.

On numerous occasions, Voss hosted foreign investment seminars during which he told investors that supporting XFuels, with a minimum $500,000 investment, would qualify them for American Employment-Based Fifth Category "EB-5" visas. Voss also falsely claimed he would hold foreign investment funds in escrow until the U.S. government had approved investors’ visa applications. The XFuels project did not qualify for the EB-5 program and all investors’ visa applications were denied, as a result.

Voss previously pleaded guilty to one count of wire fraud on March 8, 2018.

The U.S. Postal Inspection Service, IRS and the Department of Homeland Security investigated this case. It is being prosecuted by Michelle H. Kerin and Gavin W. Bruce, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore. – Brenda Roberts, 54, of Troutdale, Oregon, was sentenced today to six months’ probation and 40 hours of community service for illegally purchasing foreign-sourced Botox and Juvaderm on the internet and administering both to patients in her home.

“Purchasing foreign-sourced and unapproved drugs and devices on the internet poses a grave danger to the health and safety patients. Dr. Roberts violated her professional duty to ‘do no harm’ and instead subjected her patients to an incredible risk of injury,” said Billy J. Williams, U.S. Attorney for the District of Oregon.

“U.S. consumers rely on FDA oversight to ensure that the drugs and medical devices they use are safe and effective. Rogue health care professionals who obtain foreign unapproved medical products, and dispense and administer those products to their patients, put the health of those patients at significant risk,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations’ Los Angeles Field Office. “We will continue to pursue and bring to justice those who choose to put the public’s health at such risk.”

According to court documents, beginning in 2008, Roberts provided medical services from her home in Troutdale as a supplement to her full-time position with an outside medical practice. Roberts would purchase Botox and Juvaderm from websites including BuckaDayPharmacy.com, AllDayChemist.com and FindlandiaPharmacy.com that were manufactured for distribution in foreign countries, but not approved for use in the U.S. Roberts would administer Botox and Juvaderm to clients from her home office.

The Drug Enforcement Administration (DEA) investigated Roberts for dispensing controlled substances over the internet. During their investigation, the DEA learned of Roberts administering Botox to patients in her home and referred the matter to the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI) for further investigation. Roberts resolved these claims via a monetary civil settlement with the U.S. Attorney’s Office Civil Division in May 2018.

Roberts previously pleaded guilty to one count of receipt in interstate commerce of adulterated or misbranded drugs or devices and delivery for pay in violation of 21 U.S.C. § 331(c) on June 19, 2018.

This case was investigated by FDA-OCI and DEA and was prosecuted by Donna B. Maddux, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore.—One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the department’s violent crime reduction strategy.

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.

“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”

“Keeping our communities safe is the most sacred duty of law enforcement officials at all levels of government. It remains a key focus of the U.S. Attorney’s Office and the entire federal law enforcement community,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The revitalized PSN program focuses federal resources in support of our state, local and tribal partners’ ongoing effort to reduce violent crime in Oregon. Over the past year, we’ve seen many of the district’s most violent criminals brought to justice as a result of this program.”

As we celebrate the one-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:

Enforcement Actions

The U.S. Attorney’s Office for the District of Oregon works in partnership with federal, state, local and tribal law enforcement agencies to investigate and prosecute the district’s most violent offenders under the PSN program. Recent prosecutions include:

U.S. v. Dencklau et al.

On June 28, 2018, a federal grand jury in Portland returned a four-count indictment charging three members and associates of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) for racketeering, kidnapping and murder.

Mark Leroy Dencklau, 58, of Woodburn, Oregon; Earl Deverle Fisher, 48, of Gresham, Oregon; and Tiler Evan Pribbernow, 37, of Portland were charged with murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death and conspiracy to commit kidnapping, resulting in death. Between June 30 and July 1, 2015, the defendants are alleged to have kidnapped, tortured, and murdered Robert Huggins, a resident of southeast Portland.

Huggins was a former treasurer of a local GJOMC chapter. The indictment alleges Dencklau, Fisher and Pribbernow engaged in the violent actions leading to Huggins’ death for the purpose of maintaining and increasing their positions in the GJOMC criminal enterprise.

A 10-day jury trial is scheduled for December 11, 2018.

Read More

U.S. v. Brockner

On August 14, 2018, Jesse Lee Brockner, 32, of Portland, was sentenced to 120 months in prison and three years’ supervised release for armed bank robbery and possessing a firearm in furtherance of a crime of violence.

In August 2017, three men burglarized and stole a vehicle from a barn in Yamhill County, Oregon. Two of the suspects fled in a moving truck and a third in the stolen vehicle. After Yamhill County Sheriff deputies located, arrested and interviewed the two suspects who fled in the moving truck, they identified Brockner as the third suspect. During a search of the moving truck, deputies found a backpack containing approximately $4,000, drug paraphernalia, and Brockner’s driver’s license.

Later the same morning, Brockner robbed a U.S. Bank branch in Beaverton, Oregon wearing a welding mask and holding a firearm. During the robbery, Brockner made numerous threats of physical violence and pointed a handgun at the teller. A witness observed Brockner walk through a parking lot adjacent to the bank and enter a vehicle matching the description of the stolen vehicle.

Approximately two hours later, an FBI Task Force Officer with the Portland Police Bureau (PPB) observed a vehicle matching the stolen vehicle’s description in Southeast Portland. After confirming Brockner’s identity, multiple marked PPB patrol units responded to assist the Task Force Officer. A high risk traffic stop was attempted and led to a vehicle pursuit. The pursuit ended in a crash and an officer involved shooting in Northeast Portland. Brockner was arrested and transported to a local hospital to receive medical attention.

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U.S. v. Manzo

On August 27, 2018, Gonzalo Manzo, Jr., 33, of Fresno, California, 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.

In 2017, Manzo coordinated the shipment of a kilogram of cocaine from California to Southern Oregon. Manzo and his co-conspirators sold the cocaine to undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Oregon in exchange for firearms and $21,000 in cash. Manzo intended for the firearms and cash to be transported back to California but agents arrested Manzo and his co-conspirators and the firearms were seized by law enforcement.

Manzo will be sentenced on December 11, 2018.

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U.S. v. Fleet

On September 4, 2018, Christopher James Fleet, 23, of Portland, was sentenced to 84 months in federal prison and five years of supervised release for possessing distribution quantities of methamphetamine and two firearms.

On August 23, 2017, deputies from the Multnomah County Sheriff’s Office Special Investigation Unit were conducting surveillance at a known drug and gang house in Portland. They observed a vehicle parked in front of the house they believed was connected with Fleet, a drug dealer with an outstanding arrest warrant. Upon leaving the house and attempting to drive away, deputies blocked Fleet using unmarked vehicles and approached him wearing marked law enforcement raid vests. After initially refusing to comply with the deputy’s commands to raise his hands and failing to find an escape route, Fleet surrendered.

During the arrest, deputies found a Kel Tec 9mm firearm and distribution quantities of heroin and methamphetamine on Fleet’s person. They also found a locked backpack in Fleet’s vehicle. The backpack was later found to contain .40 caliber Sig Sauer pistol, drug records, and a digital scale.

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These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.

WASHINGTON – To mark the beginning of National Substance Abuse Prevention Month, U.S. Attorney Billy J. Williams joined the Department of Justice in announcing grant awards of nearly $320 million to combat the opioid crisis in America. The awards will directly help those most impacted by the deadliest drug crisis in American history, including crime victims, children, families and first responders.

"President Trump has made ending the opioid crisis a priority for this administration, and under his leadership, the Department of Justice has taken historic action," said Attorney General Jeff Sessions. "Today we are announcing our next steps: investing $320 million into all three parts of the President’s comprehensive plan to end the epidemic: prevention, treatment, and enforcement. We are attacking this crisis from every angle—and we will not let up until we bring it to an end."

"The opioid addiction crisis cannot be solved by any one agency or jurisdiction. It requires a coordinated effort of governments, law enforcement agencies, community organizations, and individual citizens, working together to solve problems, big and small," said U.S. Attorney Williams. "These awards are an important step in the right direction and will expand the reach of innovative programs across the state."

Approximately $6.3 million of the $320 million awarded by the Department’s Office of Justice Programs (OJP) will support local governments and a professional consortium in Oregon. A complete breakdown of the grant funding can be found here.

Summary of Oregon Awards

Comprehensive Opioid Abuse Site-based Program ($162 million awarded)

Helps jurisdictions plan and implement programs aimed at reducing opioid abuse and mitigating its impact on crime victims

 Marion County – $1,399,562

 Clackamas County – $900,000

Helping Children and Youth Impacted by Opioids ($46.6 million awarded)

Helps children and youth impacted by the opioid crisis

 Clackamas County – $1,000,999

Drug Courts ($81.2 million awarded)

Assists adult, juvenile and family drug courts and veterans treatment courts

 City of Beaverton – $500,000

 Washington County – $945,454

 Lane County – $550,000

 Northwest Professional Consortium Inc. – $856,308

Paul Coverdell Forensic Science Improvement Grant Program ($17 million awarded)

Addresses the dramatic increase in deaths and backlogs of seized drugs resulting from the crisis

 Washington County – $156,000

Two important anti-drug events occur in October: Red Ribbon Week and National Prescription Drug Takeback Day. Red Ribbon Week, October 23-31, encourages students, parents, schools and communities to promote drug-free lifestyles. The Drug Enforcement Administration’s (DEA) National Prescription Drug Take Back Day on October 27 gives Americans and easy and anonymous way to dispose of unwanted prescription drugs, helping to prevent overdose deaths and drug addictions before they start.

In 2017, more than 72,000 Americans lost their lives to drug overdoses, an increase from the 64,000 overdose deaths in 2016, according to the Centers for Disease Control and Prevention. The majority of these deaths can be attributed to opioids, including fentanyl. 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 last year.

OJP provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at: www.ojp.gov.

EUGENE, Ore. – Brett Allen McNeal, 37, of Grants Pass, Oregon, was sentenced today to three months in federal prison for distributing oxycodone as part of an interstate opioid-trafficking organization.

The organization was structured around Daniel Cham, a doctor practicing in La Puente, California, who would illegally provide prescriptions for oxycodone, hydrocodone, and other powerful medications in exchange money orders and cash. The narcotics were moved from Southern California through a network of redistributors for eventual sale in Oregon.

“At a time when the opioid crisis continues to worsen in Oregon, some medical providers aim to profit off addiction. The drug trafficking network that grew from Dr. Cham’s criminal activity contributed to the overdose deaths of two people, including a young woman here in Oregon” said Billy J. Williams, U.S. Attorney for the District of Oregon. “This conduct is reprehensible. Criminal organizations who traffic opioids will be dismantled, person-by-person, until every last participant has been prosecuted.”

“Corrupt doctors and dealers who cash in on the opioid epidemic are fueling the cycle of dependence and addiction in our community. In doing so, they put lives at risk and make it that much more difficult for the most vulnerable to overcome the pull of these narcotics,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “This is a health care problem, a crime problem and a societal problem - and one that will take many partners working together to address fully.”

Cham would write prescriptions to individuals both known and unknown to him and to others he knew to be prolific drug dealers and addicts. He regularly sold prescriptions to John Bryden, an Oregon resident, who in turn would sell them to other co-conspirators, including Kevin Grimes, Marcela Cooper, and Austin Alderete, for distribution across Oregon.

McNeal purchased oxycodone from Alderete and sold it for a profit to end users. One of those end users, Jessica Morretti, died of an overdose on April 13, 2012. According to text messages on Moretti’s cell phone from the evening she overdosed, McNeal had provided her with five 30mg oxycodone pills the same day. An analysis of post-mortem toxicology reports indicated that the lethal amount of oxycodone in Moretti’s system could have come from multiple sources, including McNeal.

McNeal admitted to law enforcement that he had purchased 30mg oxycodone pills from Alderete on multiple occasions for $15-20 apiece. Alderete would at a times front McNeal up to 100 oxycodone pills.

McNeal is the sixth defendant overall and last prosecuted in Oregon to be sentenced for their role in the trafficking organization. Other sentenced defendants include:

• Daniel Cham, 49, of Covina, California – 160 months in prison and three years’ supervised release (sentenced in the Central District of California)
• Kevin Grimes, 46, of Calimesa, California – 37 months in prison and three years’ supervised release
• Austin Alderete, 32, no known residence – 21 months in prison and three years’ supervised release
• Maricela Ann Cooper, 27, of Central Point, Oregon – time served in prison and three years’ supervised release
• Laurie Ryan, 59, of Jackson County, Oregon – 18 months’ probation (sentenced in Jackson County Circuit Court)

Tracy Townsend, a high-level co-conspirator of Cham’s from California, remains at large. John Bryden died before being prosecuted.

McNeal previously pleaded guilty to a criminal information charging him with distribution of oxycodone in violation of 21 U.S.C. § 841(a)(1). Upon completion of his prison sentence, he will be on supervised release for three years.

This case was investigated by the FBI and prosecuted by the U.S. Attorney’s Office 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 last year.

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 PST daily.

PORTLAND, Ore. – Carlos Cisneros-Razo, 45, of Milton-Freewater, Oregon, was sentenced today to 60 months in federal prison for dealing methamphetamine. Upon completion of his prison sentence, Cisneros-Razo will be on supervised release for four years.

According to court documents, in May 2017, the Blue Mountain Enforcement Narcotics Team (BENT) purchased distributable quantities of methamphetamine from Cisneros-Razo. On May 31, 2017, BENT executed a search warrant at Cisneros-Razo’s residence and recovered 10.9 grams of methamphetamine in his home and a loaded revolver on his person. Cisneros-Razo admitted to selling methamphetamine to as many as seven people. Cisneros-Razo was illegally present in the District of Oregon.

Cisneros-Razo previously pleaded guilty to one count of possession with intent to distribute methamphetamine in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B) on June 20, 2018.

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

PORTLAND, Ore. – Diego Sanchez-Lopez, 23, of Clark County, Washington, known locally as the “Froggy Robber,” made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman.

The court previously unsealed a five-count indictment alleging Sanchez-Lopez robbed five Portland-area banks between November 2017 and April 2018. Sanchez-Lopez faces federal bank robbery charges in violation of 18 U.S.C. §§ 2113(a) and (d) for the following events:

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

In each of the above listed events, Sanchez-Lopez is accused of using a knife to facilitate the robbery. In total, he is alleged to have stolen more than $87,000 from banks insured by the Federal Deposit Insurance Corporation (FDIC).

Sanchez-Lopez was detained pending trial. A four-day jury trial is scheduled for November 27, 2018 before U.S. District Court Judge Michael W. Mosman.

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

PORTLAND, Ore. – Theodore B. Holbrook, 37, and George J. Arauz, Jr., 45, both of Gresham, Oregon, were sentenced today to 36 months in federal prison for defrauding 50 investors of nearly $2.5 million using a sham energy technology start-up company. Holbrook and Arauz were also ordered to pay more than $2.3 million each in restitution and will be on supervised release for three years after completing their prison sentences.

According to court documents, between 2008 and 2015, Holbrook and Arauz used their companies, Prisidio Capital, LLC, Altius Capital Management, LLC and Altius Capital Opportunities Fund, L.P., to solicit investments to develop energy technologies via a start-up company. In return, they gave investors Prisidio stock certificates and promised to convert these shares into the start-up company’s shares when it went public. In addition to funding the start-up company, Holbrook and Arauz told investors that their money would be invested in other emerging technology companies or the stock market directly.

Instead of using investor money as promised, Holbrook and Arauz diverted it for their own personal use, funding living expenses, travel, cars, credit card bills, medical bills, lulling payments and other expenses to keep the scheme going. The pair did not disclose this diversion of funds to their investors and, instead, actively took steps to conceal it. Holbrook and Arauz sent investors promotional and investment materials to falsely represent the nature and status of their investment.

Holbrook and Arauz both previously pleaded guilty to one count each of wire fraud and money laundering on March 7, 2018 and October 31, 2017, respectively.

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

WASHINGTON – U.S. Attorney Billy J. Williams joined the Department of Justice in announcing more than $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs in American Indian and Alaska Native communities, including: the Columbia River Inter-Tribal Fish Commission; Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians; Confederated Tribes of the Umatilla Indian Reservation; Confederated Tribes of the Warm Springs Reservation; Coquille Indian Tribe; Cowcreek Band of Umpqua Tribe of Indians; and Klamath Tribes.

“Pursuing justice on behalf of tribal communities and supporting the development and growth of tribal law enforcement agencies, courts, and victim services has been a key focus of the U.S. Attorney’s Office for many years,” said U.S. Attorney Williams. “These awards mark the Justice Department’s continued commitment to ensuring all tribes have the resources necessary to keep their communities safe and effectively enforce the administration of justice on tribal land.”

Nationwide, grants were awarded to 133 American Indian tribes, Alaska Native villages, and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $113 million, just over $53 million comes from the Office of Justice Programs, more than $35 million from the Office on Violence Against Women, and more than $24.7 million from the Office of Community Oriented Policing Services.

In addition, the Department is in the process of allocating up to $133 million in a first-ever set aside program to serve victims of crime in American Indian and Alaska Native communities.  The awards are intended to help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance.  Recipients will be announced in the near future. 

“With these awards, we are doubling the amount of grant funding devoted to public safety programs and serving victims of crime in Native American communities,” said Principal Deputy Associate Attorney General Jesse Panuccio, who made the announcement during his remarks at the 26th Annual Four Corners Indian Country Conference in Santa Fe, New Mexico.  “There is an unacceptable level of violent crime and domestic abuse in American Indian and Alaska Native communities.  This increase in resources, together with our aggressive investigation and prosecution of crimes, shows how seriously Attorney General Sessions and the entire Department of Justice take these issues.  We are committed to reducing violent crime and improving public safety.”

The Four Corners Conference is facilitated annually by U.S. Attorneys from Arizona, Colorado, New Mexico and Utah to provide a forum for discussion of justice-related topics with a large number of populous and diverse tribal nations located in the region.

CTAS awards cover nine purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.   CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs.

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

A listing of the announced CTAS awards is available at: go.usa.gov/xP2uc.

PORTLAND, Ore. – Matthew Price, 32, of Portland, was sentenced today to seven months in federal prison and ordered to pay more than $262,000 for willfully failing to file federal income tax returns in four consecutive years.

“Matthew Price attempted to live a double life—advising OLCC officials on how to regulate state-legal marijuana sales, while privately evading his personal and business tax obligations,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Marijuana businesses and business owners are subject to the same federal tax laws as every other business and will be scrutinized for criminal wrongdoing. Tax cheaters will not be tolerated in any industry.”         

According to court documents, in 2010, Price, then 25 years old, came to Portland with the financial backing of a business partner in Colorado to start a state-legal marijuana business in anticipation of Oregon’s full retail legalization. Price had previously been working in a marijuana store in Colorado owned by his business partner. In December 2010, Price began operating a marijuana farmers market in Portland called Cannabliss. In mid-2013, Price and his business partner converted the business to a medical marijuana dispensary. In 2014, the pair opened two additional Cannabliss dispensaries, a second in Portland and one in Eugene, Oregon.

Price failed to file personal income tax returns in four consecutive years between 2011 and 2014, despite retaining the services of three different certified public accountants. Price’s taxable income steadily grew from $42,000 in 2011 to $590,000 in 2014. In 2015, Price was a member of the Oregon Liquor Control Commission’s (OLCC) Recreational Marijuana Technical Advisory Retail Subcommittee. In this capacity, Price, with other retailers, advised the OLCC in its rulemaking process for Oregon Measure 91, the Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act.

Price previously pleaded guilty to four counts of willfully failing to file personal income tax returns in violation of 26 U.S.C. § 7203 on May 31, 2018. Upon completion of his prison sentence, Price will be on supervised release for three years with six months of home detention.

The IRS Criminal Investigations investigated this case. It was prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – Dominic Caputo, 46, of Clackamas County, Oregon, was indicted today on allegations that, as a civilian program manager for the Oregon National Guard Oregon Sustainment Maintenance Site (OSMS), he submitted false reimbursement requests to the U.S. Army Communications-Electronics Command (CECOM) and misrepresented the operational status of equipment used to maintain a war-ready posture.

The court unsealed a five-count indictment alleging Caputo falsely certified that the refurbishment of equipment was complete or in-process. Caputo’s certifications prompted CECOM to remit payment for more than 1,300 pieces of equipment at a cost of more than $6 million to OSMS with the expectation the equipment was ready to be shipped to other military installations and put back into service, when it was not.

Caputo faces four counts of wire fraud, and one count of false statements in a document.

Caputo made his initial appearance in federal court today before U.S Magistrate Judge Beckerman and was released pending trial. A 7-day jury trial is scheduled for November 20, 2018 before U.S. District Court Judge Anna J. Brown.

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

PORTLAND, Ore. – Anthony Wayne Tavoloni, Jr., 45, of Salem, Oregon, was sentenced today to three years’ probation including three months of home detention for assaulting two Transportation Security Administration (TSA) Transportation Security Officers (TSO) at Portland International Airport (PDX).

According to court documents, on August 20, 2017, Tavoloni entered PDX, passed through the customer service and baggage claim areas, and entered the TSA checkpoint and screening zone leading to Concourses D and E. Upon entering the TSA checkpoint, a TSO asked Tavoloni for his boarding pass and identification. He replied, “No.” The TSO asked for Tavoloni’s boarding pass a second time to which he replied, “You really want to do this?” as he stepped toward the TSO. Tavoloni then walked behind the TSO’s table prompting the TSO to jump from her chair, back away from him, and yell, “Stop, Stop, Stop!” Tavoloni grabbed the TSO by her forearms and attempted to wrestle her to the ground.

Alerted, a number of passengers rushed to assist the TSO. Two passengers restrained Tavoloni, while others attempted to separate the TSO from his grip. With multiple TSOs now standing between Tavoloni and the victim, Tavoloni exclaimed “We’re about to have a bad day, do you really want to do this?” to which another TSO replied “No one needs to have a bad day.” Tavoloni then lunged at this TSO, striking him in the face with his hand. Tavoloni was promptly wrestled to the ground and held until Port of Portland Police arrived.

Tavoloni previously pleaded guilty to two counts of assaulting certain officers or employees in violation of 18 U.S.C. § 111(a)(1) on May 21, 2018.

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