District of Oregon

EUGENE, Ore. – A federal jury found Daniel Stephen Johnson, 40, of Coos Bay, Oregon, guilty today of repeatedly sexually abusing children who lived at an orphanage operated by the defendant in Cambodia. The verdict marks the end of the second foreign sexual exploitation trial held in the District of Oregon.

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 children.

“The despicable nature of this defendant’s conduct is beyond understanding. Whether you are abusing children in this country or abroad, you will be pursued and held accountable in a court of law,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The fact that this defendant abused children under the guise of being a missionary and orphanage operator is appalling.”

“Daniel Johnson’s promises of charity and a better life were nothing more than lies as he dragged these children into his dark world of abuse,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “This case should serve as a warning to those predators who believe they can hide their crimes – whether here at home or half-a-world-away. We will always stand with the victims, and we will always work to bring justice in their names.”

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 operated in Phnom Penh, Cambodia. To date, nine 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 describe 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.

Johnson faces a maximum sentence of life in prison and is subject to a 30 year mandatory minimum. He will be sentenced on Wednesday, August 22, 2018 before U.S. District Court Judge Michael J. McShane.

This case was investigated by the FBI. 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. – Attorney General Jeff Sessions and Billy J. Williams, U.S. Attorney for the District of Oregon, recognize the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, and commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.

“One officer death is too many,” Attorney General Sessions said. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks.”

“Working with federal, state, local, and tribal law enforcement officers in Oregon is a distinct honor and one of the highlights of my job,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “During National Police Week, we honor the 93 men and women who lost their lives protecting their communities as well as the countless others who continue to serve with unfailing dedication and an unwavering commitment to excellence. Supporting police and fostering strong relationships between our communities and law enforcement is top priority for the U.S. Attorney’s Office.”

According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.

Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.

For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report, released today.

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

During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.

The names of all 93 fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018. One District of Oregon officer was added this year: John Edward Lawrence, City of Bend Police Department, End of Watch: December 4, 2014.

The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.

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

To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.

PORTLAND, Ore. – Shayne Kniss, 42, formerly of Lake Oswego, Oregon, pleaded guilty today to one count of wire fraud for defrauding clients of his investment firm, Iris Capital Management Group, LLC (Iris Capital).

“Investment advisors are legally required to act in the best interest of the clients. This defendant did the exact opposite.” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Kniss lied to and took advantage of his clients, many of whom were over 65, to fund his own personal pursuits.”

“Kniss treated these victims - and their savings accounts - like his personal ATM,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “If you - or senior citizens in your family - are considering investments of any kind, make sure you do your research. Only invest with reputable firms and, if the promised returns sound too good to be true, they likely are.”

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

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

Kniss faces a maximum sentence of 20 years in prison, a $250,000 fine or twice the gross financial gains or losses resulting from the offense if greater than $250,000, and three years of supervised release. He will be sentenced on Wednesday, August 22, 2018 before U.S. District Court Judge Michael W. Mosman.

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

PORTLAND, Ore. – In separate criminal cases, two Oregon men pleaded guilty today in federal court to possessing a firearm in furtherance of a crime of violence or drug trafficking crime in violation of 18 U.S.C. § 924(c).

Jess L. Brockner, 32, pleaded guilty to one count each of possessing a firearm in furtherance of a crime of violence and bank robbery. Christopher J. Fleet, 23, of Portland, pleaded guilty to one count each of possession of a firearm in furtherance of a drug trafficking crime and possession with intent to distribute heroin.

U.S. v. Brockner

According to court records, on August 30, 2017, three men burglarized a barn in Yamhill County, Oregon, stealing the victim’s vehicle and filling a rented moving truck with the victim’s belongings. Two of the suspects fled in the moving truck and a third in the victim’s vehicle. After Yamhill County Sheriff deputies 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 located 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. While executing the robbery, Brockner made numerous threats of physical violence and pointed a handgun at the victim teller. A witness observed Brockner walk through a parking lot adjacent to the bank and enter a vehicle matching the description of the vehicle stolen earlier that morning from the barn in Yamhill County.

Approximately two hours later, an FBI Task Force Officer with the Portland Police Bureau (PPB) observed a vehicle matching the description of the stolen vehicle on the 3900 block of SE Powell Boulevard in 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 at NE 55th Avenue between East Burnside Street and NE Couch Street in Portland. Brockner was arrested and transported to Legacy Emanuel Hospital to receive medical attention.

Brockner faces a maximum sentence of life in prison and is subject to a seven-year mandatory minimum, a $250,000 fine, and up to five years’ supervised release. He will be sentenced on Tuesday, August 14, 2018 before U.S. District Court Judge Michael W. Mosman.

This case is being prosecuted by Benjamin Tolkoff and John Brassell, Assistant U.S. Attorneys for the District of Oregon.

U.S. v. Fleet

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.

Fleet faces a maximum sentence of life in prison and is subject to a five-year mandatory minimum, a $1,000,000 fine, and up to five years’ supervised release. He will be sentenced on Wednesday, September 5, 2018 before U.S. District Court Judge Anna J. Brown.

This case is being prosecuted by Leah K. Bolstad, Assistant U.S. Attorney for the District of Oregon.

Both cases 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.

EUGENE, Ore. – On April 30, 2018, U.S. District Court Judge Ann Aiken sentenced Oluwamuyiwa Abolad Olawoye, 32, a Nigerian citizen and recent resident of Georgia, to 108 months in federal prison for his role in a conspiracy to commit mail and wire fraud and aggravated identity theft. Olawoye’s sentence includes a two-year mandatory minimum for possessing or using a victim’s identity to commit fraud. He was also ordered to pay more than $3.2 million in restitution and will be subject to deportation when released from prison.

Four other co-conspirators, Oluwaseunara Osanyinbi, Oluwatobi Dehinbo, Lateef Animawun and Michael Kazeem, previously received federal prison sentences for their roles in the same conspiracy. In August 2017, the conspiracy’s leader, Emmanuel Kazeem, was convicted by a federal jury of 19 counts of mail and wire fraud, aggravated identity theft, and conspiracy to commit mail and wire fraud and will be sentenced on May 17, 2018.

IRS agents recovered over 111,000 stolen taxpayer identities from Olawoye’s email and instant messenger accounts. More than 13,000 identities were from an Oregon company’s database that included over 5,500 Oregon residents. Olawoye received the database identities directly from Kazeem and obtained thousands of additional stolen identities from other unknown sources. In total, Olawoye was linked to more than 1,300 fraudulent federal tax returns seeking over $11.5 million. A review of his email account showed he wired over $387,000 in tax refund proceeds overseas.

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

PORTLAND, Ore. – Wilfredo Reyes, 60, of Portland, pleaded guilty today in federal court to falsely reporting a suspicious package on a TriMet MAX train.

According to court records, on June 9, 2017, Reyes called 9-1-1 to report a suspicious package with protruding wires on a MAX train in Portland. During the call, he intentionally conveyed false and misleading information that led the Portland Bureau of Emergency Communications and local law enforcement to believe an explosive had in fact been planted on the MAX train. TriMet police and more than 40 officers from multiple agencies responded to the scene. The Metropolitan Explosive Disposal Unit rendered the device safe and concluded that it did not contain a bomb.

Surveillance cameras revealed that Reyes boarded the train with a backpack, placed it in a seat, walked to another part of the train, and then proceeded to call 9-1-1. He was interviewed by officers at the scene and initially denied being the caller. After the backpack was determined not to contain a bomb, officers found items in it with Reyes's name on them. He was arrested and admitted to owning the backpack and arranging the contents to look like a bomb.

Reyes’ conduct caused a substantial disruption to multiple law enforcement agencies and local businesses. Two business near the Hollywood/NE 42nd Avenue MAX station were evacuated. The station, several streets, and the westbound lanes of Interstate 84 were closed during the investigation.

Reyes faces a maximum sentence of five years in prison, a $250,000 fine, and three years’ supervised release. He will be sentenced on Tuesday, August 14, 2018 before U.S. District Court Judge Anna J. Brown.

The Portland FBI Joint Terrorism Task Force investigated this case in coordination with its first response partners Portland Police Bureau, Portland Fire and Rescue and TriMet. The case is being prosecuted by Hannah Horsley, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – On Monday, April 23, 2018, Jay Walter Jaacks, 50, of Portland, pleaded guilty to 17 misdemeanor counts of video voyeurism for placing a concealed video camera in the adult restroom of a Portland daycare facility.

"This defendant’s actions are inexcusable and grossly invaded the privacy of employees and fellow parents at a daycare facility where he took his own children," said Billy J. Williams, U.S. Attorney for the District of Oregon. "I hope this prosecution will deter others from illegally violating the privacy of others for their own personal satisfaction."

"The safety, privacy, and security of everyone working and doing business within our Federal workplaces are paramount to our efforts," said Federal Protective Service Region 10, Deputy Regional Director, Patrick Zitny. "The successful prosecution of this case is a tribute to the efforts and close coordination between the Federal Protective Service and the U.S. Attorney’s Office."

On or about July 29, 2016, Jaacks concealed a video camera in a small cosmetics bag and placed it in the adult restroom of a daycare facility in Portland. The video camera captured 17 adults, both daycare employees and other parents, in various stages of undress. A daycare employee found the camera and immediately notified law enforcement. Law enforcement officials seized the camera before Jaacks could retrieve it.

Jaacks faces a maximum sentence of one year in prison, a $100,000 fine, and one year of supervised release on each count. He will be sentenced on Monday, July 30, 2018 before U.S. District Court Judge Marco A. Hernandez.

The U.S. Department of Homeland Security Federal Protective Service (FPS) investigated this case. It is being prosecuted by Scott Kerin, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – Today in federal court, U.S. District Court Judge Michael H. Simon ordered Carl Zeiss Vision, Inc. to pay $750,000 in criminal fines for repeatedly discharging untreated wastewater from its lens-manufacturing facility in Clackamas, Oregon to the Kellogg Creek Wastewater Treatment Plant.

“The Justice Department will not tolerate any business, corporation, or individual that bypasses federal environmental laws to seek a competitive advantage or to maximize profits,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “We will continue to aggressively prosecute individuals and corporations whose illegal conduct threatens our region’s natural resources and public health.”

“Our laws are designed to keep communities safe and protect our natural resources by requiring companies to take appropriate steps in managing hazardous chemicals,” said Susan Bodine, Assistant Administrator for the Environmental Protection Agency (EPA) Office of Enforcement and Compliance Assurance. “Companies that fail to comply with the law out of negligence or that seek economic advantage will be held responsible for their actions.”

According to court documents, over a multi-year period, Zeiss knowingly discharged a variety of hazardous substances to the Clackamas County sewer system.

In May 2012, Clackamas Water Environmental Services sent Zeiss a “Non-Residential Questionnaire” or industrial user survey as required by the Clean Water Act. In response, the company falsely described its wastewater as being 200 gallons per day of “green lens cleaner” that required no pretreatment. In reality, Zeiss regularly discharged cadmium-and-lead alloys, acidic lens polish, and potassium hydroxide the company attempted to neutralize with hydrochloric and muriatic acids.

In March and June 2015, EPA’s Criminal Investigation Division installed pH probes in the sewer line coming from the Zeiss manufacturing facility. These probes detected regular unlawful discharges. Investigators recorded unlawful waste discharges (with excessively high or low pH levels) on two-thirds of the days monitored. The government estimates Zeiss avoided $382,000 in proper disposal costs over the period of the offense. By failing to disclose its discharges to Clackamas County, the company operated completely outside pretreatment regulations for years.

Carl Zeiss Vision, Inc. is a subsidiary of the Zeiss International based in Oberkochen, Germany. The company previously pleaded guilty on January 4, 2018 to one count of violating the wastewater pretreatment requirements outlined in Section 1319(c)(1)(A) of the Clean Water Act.

This case was investigated by EPA Criminal Investigations and prosecuted by Assistant U.S. Attorney Ryan W. Bounds and Special Assistant U.S. Attorney Karla Gebel Perrin.

EUGENE, Ore. – Fred Schrameck II aka Rick Schrameck, 73, of Bend, Oregon, pleaded guilty today to a single count of wire fraud for a scheme involving his consumer aviation company, Aircraft Completion Services LLC (ACS).

According to court documents, Schrameck and others solicited customers to purchase and help build experimental aircraft, including the EPIC LT, using three companies, Aircraft Investor Resources LLC (AIR), Epic Air LLC (EPIC), and ACS. According to purchase agreements, customers paid more than $1.4 million for the Bend-manufactured aircraft.

Schrameck gave customers Airframe Purchase Agreements and Aircraft Completion Assistance Agreements that misrepresented how the customers’ funds were being used. Without his customers’ knowledge, Schrameck used the funds for other projects, to complete existing EPIC LT aircraft, and to support his own lavish lifestyle.

Schrameck faces a maximum sentence of 20 years in prison, a $250,000 fine, and three years’ supervised release. He will be sentenced on Tuesday, August 14, 2018 before U.S. District Court Judge Ann Aiken.

This case was investigated by the FBI and IRS Criminal Investing (IRS-CI) and is being prosecuted by Scott E. Bradford, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – James Ian McGlothlin, 41, of Portland, was sentenced today to 28 years in federal prison followed by a life term of supervised release for the production of child pornography involving two very young children.

McGlothlin’s federal sentence will run concurrently with a sentence imposed in Clackamas County Circuit Court on March 2, 2018. McGlothlin was sentenced in Clackamas County to 225 months in prison after pleading guilty to three counts of first-degree sexual abuse stemming from his work with disabled children as an instructional assistant for the Oregon City School District.

“Producing child pornography is an appalling crime,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “It is unthinkable that someone would prey upon infants, toddlers, and disabled children, yet that is exactly what James McGlothlin did. He was supposed to be safeguarding his victims, but he took advantage of them instead for his own sexual gratification.” Williams added, “Hopefully, this sentence will help ensure that McGlothlin will not be in a position to sexually abuse children again.”

“Those who exploit their access to children to gratify their own perverse sexual desires are on notice that there will be serious consequences for those actions,” said Brad Bench, Special Agent in Charge for Homeland Security Investigations (HSI) Seattle. “When individuals who are entrusted to serve as role models for our children violate that trust, there will be zero tolerance. HSI will continue to work closely with its local law enforcement partners to target those involved in the sexual exploitation of children to ensure they are held accountable for their crimes.”

According to court documents, investigators first learned of McGlothlin’s actions while investigating an online bulletin board service used to advertise and distribute child pornography. On February 16, 2016, federal agents and members of the Interagency Child Exploitation Prevention Team (INTERCEPT) executed a search warrant at McGlothlin’s residence, where they seized computer equipment, phones, and other digital devices. Forensic examinations of the seized computers revealed thousands of files containing child pornography, including videos and images McGlothlin created himself. One of the victims was an infant. Another was a very young child.

Investigators found evidence that McGlothlin sexually abused a number of disabled children he worked with as an instructional assistant in Oregon City. Investigators also found documents McGlothlin wrote which describe, in graphic detail, how he planned to, rehearsed, and sexually abused children.

This case was investigated by the INTERCEPT Task Force, a partnership between the Clackamas and Multnomah County Sheriff’s Offices, U.S. Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the FBI, the U.S. Marshals Service, and the U.S. Attorney’s Office. It was prosecuted by Assistant U.S. Attorney Gary 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. 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.

Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.

PORTLAND, Ore. – Today in separate criminal informations, tax charges were filed in federal court against two Portland-based marijuana business owners. Nathan Wheeler, 42, of Portland, was charged with one count each of wire fraud and tax evasion. Matthew Price, 32, also of Portland, faces four counts of willfully failing to file income tax returns.

According to court documents, Wheeler, a certified public accountant, is alleged to have engaged in a scheme to defraud clients and investors of more than $4.4 million while also evading income taxes. Wheeler and others operated Bridge City Advisors, LLC, offering accounting, investment, and legal services to clients throughout Portland. Wheeler also held an Oregon medical marijuana license to grow and distribute marijuana. He is accused of using investor funds, without their knowledge or consent, in part, to build and expand his marijuana enterprise. In carrying out his fraud, he sometimes prepared false account statements to keep clients from discovering the unauthorized use of funds.

Beginning in August 2013, Price was part owner and operator of a Portland-based medical marijuana dispensary. In 2014, Price and his business partner opened two additional retail locations, a second in Portland and one in Eugene, Oregon. Between 2011 and 2014, Price allegedly received substantial income from the business and a marijuana farmers’ market he previously owned and operated. During this four-year period, Price is accused of failing to file individual income tax returns, resulting in a tax loss of nearly $263,000.

Both defendants are expected to make their first appearance in federal court on Wednesday, April 25, 2018.

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

PORTLAND, Ore. – Every April, the Justice Department’s Office for Victims of Crime (OVC) leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW) to honor crime victims, promote their rights and recognize those who advocate on their behalf. This year’s NCVRW will be held April 8-14, 2018 with the theme of Expand the Circle: Reach All Victims.

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

"In law enforcement, we are sworn to serve and protect," Attorney General Sessions said. "We carry out this oath every day by protecting the rights of law abiding people from criminals and by achieving justice for crime victims. This week, we remember the millions of Americans who have been victimized by criminals and we thank those who have gone above and beyond the call of duty in their service to those victims. As we do so, we recommit ourselves to fulfilling our oath and to reducing crime in America."

“According to Bureau of Justice statistics, victims experience more than five million crimes of violence and nearly 15 million property crimes annually. Sadly, odds are most Americans have been a victim of crime or know someone personally who has,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Now more than ever, victims of crime deserve a voice. They deserve to know that others stand with them and recognize their courage.”

“So often in this country when we talk about crime, the focus is on those who are breaking the law, including significant attention paid to the criminal’s life, arrest and punishment. For the men and women of the FBI, though, any given case is about much more than just handcuffs and court appearances. Our compassion for the victims is at the core of who we are and why we do what we do. For us, the rights and needs of the trafficked child, armed robbery victim or senior citizen who lost his life savings are just as important  - if not more so – than the story of the person who caused such harm,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.

This year’s theme—Expand the Circle: Reach All Victims—highlights how the investment of communities in crime victims expands the opportunity for victims to disclose their victimization, connect with services and receive the support they need. The theme also acknowledges the many barriers facing victims of crime especially those with disabilities, LGBTQ victims, older adults, speakers with limited English proficiency, American Indians and Alaska Natives, and others from historically marginalized communities.

OVC and the U.S. Attorney’s Office encourages widespread participation in the week’s events and in other victim-related observances throughout the year. The Justice Department will host OVC’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 13, 2018 to honor outstanding individuals and programs that serve victims of crime. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please visit OVC’s website at www.ovc.gov.

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

PORTLAND, Ore. – Wathiq Al-Ibraheemi, 34, of Beaverton, Oregon, was sentenced today to two years of probation for the unauthorized use of an official insignia.

According to court documents, in November 2015, Al-Ibraheemi wrote a letter to the Prime Minister of Iraq, Haider al-Abadi, on false letterhead of the U.S. Office of the Director of National Intelligence (ODNI). In the letter, Al-Ibraheemi, using the alias William J. Peterson, urged the Iraqi Prime Minister to replace the director of the Iraqi National Intelligence Service. Al-Ibraheemi signed the letter as the Middle East Section Chief of ODNI’s Office of the Deputy Director for Intelligence Integration. The Office of the Inspector General of the Intelligence Community later confirmed for the FBI that the letter was a fraudulent document.

Al-Ibraheemi served as an interpreter for the U.S. Military in Iraq during Operation Iraqi Freedom. He immigrated to the U.S. in 2009 under the Significant Public Benefit Parole Program and was sponsored by a U.S. Army officer with whom he had served in Iraq. Al-Ibraheemi settled in Beaverton in 2012 and enrolled as an engineering student at Portland State University.

This case was investigated by the FBI and prosecuted by Craig Gabriel, Assistant U.S. Attorney for the District of Oregon.

MEDFORD, Ore. – On Monday, April 9, 2018, Sean Jeffrey Haga, 32, of Bandon, Oregon, pleaded guilty to one count of child sexual exploitation.

On June 17, 2016, Haga shared child pornography online using Kik Messenger with an undercover FBI task force officer. Haga told the undercover officer that he wanted to travel to have sex with the officer’s minor daughter and that he possessed photos of himself sexually abusing a minor victim. Haga sent multiple pictures depicting the abuse to the undercover officer.

The FBI worked through the night to identify the person associated with the online user ID, the location from which it was being used, and the identity of the resident at that location. Based on the information collected, FBI agents in the Medford Resident Agency were able to obtain search and arrests warrants. Haga was arrested on June 18, 2016 without incident.

Haga was formerly employed as an educational assistant, track coach and basketball coach in the Bandon School District.

Haga faces a maximum sentence of 30 years in prison, a $250,000 fine and a five-year term of supervised release. He is also subject to a 15-year mandatory minimum prison sentence. Haga will be sentenced on July 19, 2018 before U.S. District Court Judge Anne L. Aiken.

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

PORTLAND, Ore. – Shayne Kniss, 42, formerly of Lake Oswego, Oregon, was charged today in federal court with defrauding clients of his investment firm, Iris Capital Management.

The criminal information alleges that Kniss offered clients, many of whom were 65 or older, four investment funds composed of residential properties in the greater Portland area that would be rehabilitated, upgraded and resold at a substantial profit. Between February 2011 and April 2013, 47 people invested over $4.3 million in the funds. The information alleges Kniss commingled investor money among the funds, used new investments to make payments to prior investors, and used more than $500,000 of investor funds for personal use, including investing in a retail marijuana enterprise.

Kniss will make his first appearance before a U.S. Magistrate Judge in Portland where a plea will be entered and a trial date set.

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

This case was investigated by the FBI and is being prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – Anna Ngo, 57, of Portland, was sentenced today to 15 months in prison and ordered to pay nearly $500,000 in restitution for a tax evasion scheme involving two local businesses. Ngo previously pleaded guilty to one count of tax evasion in violation of 26 U.S.C. §7201 on December 14, 2017.

“As a business owner, Ms. Ngo had a legal obligation to pay her fair share of taxes and she failed to do so,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Tax evasion is a serious crime that victimizes all Americans. The U.S. Attorney’s Office will continue to pursue similar prosecutions in an effort to preserve the fairness and integrity of our tax system.”

“With the April 17th tax deadline looming, it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” said Troy A. Burrus, Acting Special Agent in Charge of the IRS Seattle Field Office.

According to court documents, Ngo evaded payment of her tax liabilities in 2004, 2005, 2007 and 2008 by placing two of her businesses, Hot Rocks Beauty Salon and Beyond Hair Nails Spa, in the names of nominees with the cooperation of her niece. Ngo told the IRS she did not own the businesses. Additionally, Ngo filed fraudulent income tax returns upon which she failed to report income from the two businesses. 

An investigation revealed that Ngo evaded payment of her outstanding tax liability. Her evasion included “quitclaiming,” or relinquishing ownership of rental property she owned to her son shortly before federal income tax liens were filed in 2011. Investigators also found that Ngo spent significant amounts of money at electronic stores, including $126,900 in 2011 alone, despite owing significant taxes and being aware of the liability. Multiple audits revealed that Ngo owes more than $502,000 in taxes, penalties and interest for 2004, 2005, 2007 and 2008. 

This case was investigated by IRS Criminal Investigation and prosecuted by Clemon D. Ashley, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – James Pepion, of Portland, was sentenced today to four months in prison followed by three years supervised release for selling counterfeit Nike sneakers online and laundering his proceeds. A restitution hearing has been scheduled for July 9, 2018.

According to court documents, Pepion offered rare Nike sneakers for sale on the website Get-Supplied.com and through related businesses, including Supplied, Inc., and SwagSupply, Inc. using online platforms such as Instagram, eBay, and Shopify. Though Pepion acquired many of the limited-edition sneakers he resold through legitimate channels, he also imported counterfeit versions of some sneakers directly from black market sources in China, selling them as authentic Nike footwear to unwitting buyers. These fraudulent sales triggered numerous complaints to Nike as well as to Pepion.

Between June 2013 and September 2015, Pepion wired $174,460.00 to sellers in China, almost all of which was for counterfeit shoes and packaging. Pepion combined the proceeds of the sales of these counterfeit Nike sneakers with the proceeds of sales of authentic sneakers in various financial accounts in order to conceal the illegal source of much of his income.

Pepion previously pleaded guilty to one count each of trafficking in counterfeit goods and money laundering on Friday, June 30, 2017.

This case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) and IRS Criminal Investigation (IRS CI) and prosecuted by Ryan W. Bounds and Julia E. Jarrett, Assistant U.S. Attorneys for the District of Oregon.

WASHINGTON – The Justice Department today filed denaturalization lawsuits against two convicted war criminals and natives of the former Yugoslavia, who according to the Department’s complaints, murdered civilians and prisoners of war because of their religion and ethnicity, then fraudulently obtained refugee status and later naturalized into U.S. citizenship by concealing their crimes. The civil complaints were filed in federal court in the District of Oregon and the District of Columbia.

“War criminals will find no safe haven or shelter within the United States,” said Attorney General Jeff Sessions. “We will be steadfast as we investigate and prosecute human rights violators, torturers, and war criminals. This is especially true for those who fraudulently obtain U.S. citizenship. For too long, we have tolerated egregious fraud in our refugee program, our immigration system, and the naturalization process. This Administration will hold alleged fraudsters accountable.”

“We at DHS are committed to working with our partners across the federal government to target those who seek to break our immigration laws to obtain U.S. citizenship. There will be consequences,” said Secretary Kirstjen Nielsen from the Department of Homeland Security.  “National security is homeland security and fraudulently obtaining U.S. citizenship will not be tolerated.  Those who abuse our generous immigration system take opportunities away from those who follow our laws and who undoubtedly deserve U.S. citizenship.”

Today’s lawsuits allege that Edin Dzeko, 46, and Sammy Rasema Yetisen, aka Rasema Handanovic, aka Zolja, 45, were part of an elite unit of the Army of the Republic of Bosnia and Herzegovina that attacked the village of Trusina on April 16, 1993, in what is known as the Trusina massacre. The unit targeted Bosnian Croats who resided in the village because of their Christian religion and Croat ethnicity, killing 22 unarmed individuals including women and the elderly. A Bosnian court previously found that Dzeko and Yetisen played key roles in the massacre: both were part of a firing squad that executed six unarmed prisoners of war and civilians, and Yetisen proceeded to make sure all six were dead by shooting them again. In addition to his participation in the firing squad, Dzeko also killed a crippled elderly man, and then shot the man’s wife in the back, killing her because she would not stop crying. 

According to the complaints, Dzeko’s and Yetisen’s actions came to light in 2011 when the United States granted their extradition to Bosnia and Herzegovina at that country’s treaty-based request. In April 2012, Yetisen was convicted in a Bosnia court pursuant to a guilty plea of war crimes against prisoners of war and war crimes against civilians based on the firing squad execution-style killings. In exchange for her plea and cooperation, Yetisen was sentenced to five years and six months in prison. In June 2014, Dzeko was convicted in Bosnia court of war crimes against prisoners of war and war crimes against civilians, and held responsible for the eight killings described above, in part based on Yetisen’s testimony against him. Yetisen has been released from prison and resides in Oregon. Dzeko is still serving his sentence in Bosnia and Herzegovina.

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

“The United States has been a safe haven and symbol of hope for people fleeing from persecution, not for war criminals,” said U.S. Attorney Jessie K. Liu of the District of Columbia. “The actions taken in the District of Columbia and in Oregon today demonstrate that we will use every tool to ensure the integrity of our refugee programs.”

“The United States is a refuge for those fleeing violence and the atrocities of war, not those responsible for these unthinkable acts,” said U.S. Attorney Billy J. Williams of the District of Oregon. “I applaud the hard work and coordination of law enforcement across the country that culminated in these lawsuits.”

Today’s civil denaturalization cases follow on the recent criminal conviction of a Bosnia Serb residing in North Carolina for making materially false claims and statements on his initial application for refugee status, which involved similar concealment of service in a military unit involved in the July 1995 Srebrenica massacre that resulted in the deaths of between 7,000 and 8,000 Bosnian Muslim men.

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

The cases are being jointly prosecuted by Deputy Chief Timothy Belsan and Senior Counsel for National Security Aram Gavoor of OIL-DCS’s NS/A Unit and Trial Attorney Steven Platt of OIL-DCS, Assistant U.S. Attorney Wynne Kelly of the U.S. Attorney’s Office for the District of Columbia, and Assistant U.S. Attorney Jim Cox of the U.S. Attorney’s Office for the District of Oregon.

The claims made in these complaints are allegations only, and there have been no determinations of liability.

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

 

NOTE: The relevant court documents can be found here: Dzeko Complaint for Denaturalization and Yetisen Complaint for Denaturalization

EUGENE, Ore. – Parthava Behesht Nejad, 82, of Springfield, Oregon, was sentenced today to five years probation for concealing income in order to qualify for welfare benefits. Nejad was also ordered to pay more than $309,000 in restitution and forfeiture and must complete 300 hours of community service.

According to court documents and trial testimony, federal agents began investigating Nejad in 2013 after social workers discovered he was the landlord for numerous people receiving disability benefits. Investigators determined that Nejad owned eight rental properties in north Springfield worth more than $600,000. Nejad acquired the properties and transferred them to his foundation, Parthava Behesht Nejad International Foundation, prior to applying for welfare benefits in 2003.

For more than a decade, Nejad claimed he had no income or assets and had only one bank account containing a few hundred dollars. In reality, Nejad’s properties generated substantial income and he had a bank account that at times contained more than $30,000. He told the IRS and others that his foundation, incorporated in Oregon in 1986, was a church and provided temporary housing for victims of religious persecution.

In total, Nejad collected more than $154,000 in Supplement Security Income (SSI), food stamps, and Medicaid benefits between November 2003 and July 2014.

A federal jury convicted Nejad on one count of wire fraud and three counts of theft of government money on March 9, 2017.

This case was investigated by the Social Security Administration (SSA) Office of the Inspector General in partnership with the U.S. Department of Health and Human Services (HHS) Office of Investigation and the Oregon Department of Human Services. It was prosecuted by Helen Cooper and Amy Potter, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore. – Joseph J. Colello, 57, of Salem, Oregon, was sentenced today in U.S. District Court to 60 months in prison followed by three years’ supervised release for money laundering and defrauding the IRS. Colello was also ordered to pay more than $81,000 in restitution.

“Government employees are called to be stewards of taxpayers’ dollars and interests. Instead, this defendant chose to betray his obligation and defy public trust,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Plain and simple, corruption erodes confidence in government.”

According to court documents, between June 2012 and March 2015, Colello was employed as a pass-through program manager for the Oregon Department of Energy’s (ODOE) Business Energy Tax Credit (BETC) program. In his role, Colello helped owners of BETCs sell their credits by locating buyers and facilitating transfers.

In 2012, Colello and a coconspirator devised a plan whereby Colello would give the coconspirator 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 coconspirator had brokered the deals. Colello and the coconspirator agreed to have the coconspirator create a sham company in order to receive commission payments from the sellers of the tax credits and to conceal their earned income from the IRS. Colello and the coconspirator charged sellers a 1-2% fee, undercutting brokers who typically charged a 10% fee for facilitating similar credit transfers. Colello would receive a portion of this fee as a kickback.

Between 2012 and 2015, the coconspirator deposited over $1.3 million in income from the commissions charged to sellers of BETC credits. The coconspirator 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, the coconspirator purchased and issued approximately 58 cashier’s checks to Colello or his girlfriend. In total, Colello received more than $300,000 in bribe payments for his role in the scheme.

Colello previously pleaded guilty to one count each of conspiracy to engage in monetary transactions in property derived from specific unlawful activity, conspiracy to defraud the IRS and filing a false income tax return on March 15, 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. – Misraim Israel Briones Pasos aka Mario Ozuna, 36, of Tepic, Nayarit, Mexico, was sentenced today to 151 months in prison for his role in a vast conspiracy responsible for trafficking hundreds of pounds of black tar heroin from Nayarit, Mexico to the Portland metropolitan area.

“Most of the heroin in this country came here across our porous Southern Border," Attorney General Sessions said. "Traffickers from Nayarit, like these defendants, have become notorious across the United States for their effectiveness in dispensing cheap and powerful heroin. We will never know the full extent of the consequences of their actions. The sentences handed down in this case, though they cannot compare with the damage done to our nation by the defendants, will help keep the people of this country safe. I want to thank our fabulous OCDETF members with the DEA, Homeland Security Investigations, the FBI, the IRS, the Marshals Service, and local police for their hard work, as well as Assistant U.S. Attorneys Thomas Edmonds and Steven Mygrant. They have done us all a service by taking heroin traffickers off of our streets.”

“At a time when communities are reeling from the effects of the opioid crisis, there are criminal organizations whose sole purpose is to profit off addiction. At its peak, this network was bringing up to 10 pounds of heroin into the Portland area every week – nearly 45,000 single doses,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Much of what law enforcement does to disrupt and dismantle these organizations is unknown to the public. The resolution of this case gives us a rare glimpse into the extraordinary work of law enforcement to bring every last person involved in a network’s operations to justice.”

“Lives are being lost at an alarming rate everyday due to opioid affliction,” said Keith Weis, Special Agent in Charge for the Drug Enforcement Administration (DEA) in Seattle. “We must be steadfast in stopping those most responsible for this shameful profiteering.”

According to court documents, investigators first learned of the conspiracy when a confidential informant provided a tip that co-defendant Cory Jaques was selling heroin and oxycodone from his residence in southwest Portland. Using controlled buys, surveillance and phone toll analysis, investigators determined that Jaques was receiving heroin from Briones Pasos and another co-defendant Melchor Luna Rodriguez. A federal wiretap investigation was opened in the fall of 2014.

Investigators later learned that Briones Pasos’ managed one of several heroin cells in the Portland area sourced by a single Nayarit-based supplier. The supply cell, managed by codefendants Christopher Guillen Robles and Paul Guillen, was responsible for bringing as much as 10 pounds of heroin into the metropolitan area every week. By early 2015, investigators had revealed the cells’ transportation methods and the movement of money via banks, bulk cash smuggling and wire transfers.

In February 2015, a federal grand jury in Portland returned a multi-count indictment implicating 22 defendants. Soon thereafter, investigators executed search and arrest warrants at 24 locations across four states. By February 2018, all principal targets had been convicted and the court had ordered more than $1.4 million in forfeiture money judgments.

 

Sentenced defendants include:

Christopher Guillen-Robles, 23, of Pomona, California – 151 months in prison and five years’ supervised release

Misraim Israel Briones Pasos, aka Mario Ozuna, 36, of Tepic, Nayarit, Mexico – 151 months in prison and five years’ supervised release

Jose Luis Mamani-Vidal, 51, of Salt Lake City, Utah – 128 months in prison and five years’ supervised release

Alexis Guillen-Robles, 22, of Perris, California – 120 months in prison and five years’ supervised release

Melchor Luna Rodriguez, aka Jose Luis Mendez Chavez, 35, of Apatzingán, Michoacán, Mexico – 120 months in prison and five years’ supervised release

Jose Mata, 30, of Hillsboro, Oregon – 120 months in prison and five years’ supervised release

Cipriano Andrade-Lopez, aka Burras and Burra, 40, of Tepic, Nayarit, Mexico – 120 months in prison and five years’ supervised release

Juan Carlos Vega Rivera, aka Fidel Lnu and Laylo, 34, of Mexico City, Mexico – 120 months in prison and five years’ supervised release

Geovany Munoz, 22, of Long Beach, California – 97 months in prison and four years’ supervised release

Cory Allyn Jaques, 40, of Tigard, Oregon – 78 months in prison and four years’ supervised release

Irvin David Jaimes Perez, aka Leonardo Lnu and Miguel Garsia-Frores, 32, of Acapulco, Guerrero, Mexico – 63 months in prison and four years’ supervised release

Francisco Rodriguez-Esqueda, aka Borrego, 32, of Xalisco, Nayarit, Mexico – 62 months in prison and five years’ supervised release

Joel Orozco-Estrada, 23, of Tepic, Nayarit, Mexico – 60 months in prison and three years’ supervised release

Franz Ulises Mendoza-Pasos, aka Chulo, Oscar Lnu, and Jael Mejia-Romo, 32, of El Refugio Testarazo, Nayarit, Mexico – 57 months in prison and three years’ supervised release

Fabian Gonzalez-Avila, aka Francisco, Hammer, and Tamburete, 24, of Tepic, Nayarit, Mexico – 57 months in prison and three years’ supervised release

Jose Huanaco-Casildo, 33, of Forest Grove, Oregon – 57 months in prison and four years’ supervised release

Jose Najar-Celis, 34, of Venustiano Carranza, Nayarit, Mexico – 50 months in prison and three years’ supervised release

Christian Enrique Chavez-Esqueda, aka Sapo, 30, of Xalisco, Nayarit, Mexico – 42 months in prison and three years’ supervised release

Lisa Miriam Wendell, 38, of Billings, Montana – 41 months in prison and four years’ supervised release

Jose Jorge Tobon-Ortega, aka Puebla and Fnu Lnu, 39, of Molcaxac, Puebla, Mexico – 36 months in prison and three years’ supervised release

Christian Llanos-Javier, aka Chacal, 29, of Portland, Oregon – 28 months in prison and three years’ supervised release

Mary Elizabeth Henlin, 37, of Portland, Oregon – time served in prison and five years’ supervised release

 

This case was the result of a joint investigation by the DEA, Homeland Security Investigations (HSI), FBI, IRS, U.S. Marshals Service, the Portland Police Bureau Drugs and Vice Division, the Clackamas County Interagency Taskforce, and the Westside Interagency Narcotics Team (WIN). It was prosecuted by Thomas H. Edmonds and Steven T. Mygrant, Assistant U.S. Attorneys for the District of Oregon.

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

Org Chart: Organizational hierarchy of Guillen-Robles heroin trafficking conspiracy Exhibit 31: Heroin bricks packaged for transport. Exhibit 66c: Cash seized by law enforcement Exhibit 76: Cash seized by law enforcement Exhibit 76b: Heroin balloons packaged for distribution

 

PORTLAND, Ore. – Bud O’Neil Burkleo, 35, of Warrenton, Oregon made an initial appearance today in federal court before U.S. Magistrate Judge John V. Acosta.

The court unsealed a five-count indictment alleging 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 is also alleged to have lied to federal investigators.

Burkleo was released pending trial. A two-day jury trial is scheduled for May 29, 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.

MEDFORD, Ore. – Justin Douglas Jones, 42, of Medford was sentenced today to 155 months in federal prison and five years of supervised release for armed robbery and being a felon in possession of a firearm.

According to court documents, on June 30, 2015, Jones walked into a Purple Parrot restaurant in Medford with a gun and told an employee, "don’t move, do what I say or I will shoot." Jones took the employee at gunpoint to a back room and stole $500 in cash. The robbery was captured on video by the restaurant’s surveillance system. The Medford Police Department identified Jones from the video and later arrested him at a campground. Officers recovered a Ruger .22 caliber semi-automatic pistol in Jones’ backpack.

Jones has prior felony convictions for robbery, burglary, illegal possession of a firearm and unauthorized use of a vehicle. He previously pleaded guilty before U.S. District Court Judge Michael J. McShane to one count each of being a felon in possession of a firearm, interfering with commerce by robbery, and using, carrying and brandishing a firearm during and in relation to a crime of violence on November 6, 2017.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Medford Police Department, and was prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.

Jones holds a victim's arm while conducting an armed robbery at the Purple Parrot in Medford. Jones collects money during armed robbery at the Purple Parrot in Medford.

 

PORTLAND, Ore. – On Thursday, March 15, 2018, Joseph J. Colello, 57, of Salem, Oregon, pleaded guilty to one count each of conspiracy to engage in monetary transactions in property derived from specific unlawful activity, conspiracy to defraud the IRS and filing a false income tax return.

According to court documents, between June 2012 and March 2015, Colello was employed as a pass-through program manager for the Oregon Department of Energy’s (ODOE) Business Energy Tax Credit (BETC) program. In his role, Colello helped owners of BETCs sell their credits by locating buyers and facilitating transfers.

In 2012, Colello and a coconspirator devised a plan whereby Colello would give the coconspirator 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 coconspirator had brokered the deals. Colello and the coconspirator agreed to have the coconspirator create a sham company in order to receive commission payments from the sellers of the tax credits and to conceal their earned income from the IRS. Colello and the coconspirator charged sellers a 1-2% fee, undercutting brokers who typically charged a 10% fee for facilitating similar credit transfers. Colello would receive a portion of this fee as a kickback.

Between 2012 and 2015, the coconspirator deposited over $1.3 million in income from the commissions charged to sellers of BETC credits. The coconspirator 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, the coconspirator purchased and issued approximately 58 cashier’s checks to Colello or his girlfriend. In total, Colello received more than $300,000 in bribe payments for his role in the scheme.

Colello faces a combined maximum sentence for all three charges of 28 years in prison, more than $1 million in fines and up to three years of supervised release. He will be sentenced on July 2, 2018 before U.S. District Court Judge Michael W. Mosman.

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

EUGENE, Ore. – On Tuesday, March 13, 2018, Matthew Linderman, 50, of Corvallis, Oregon, was sentenced to 18 months in prison and three years of supervised released for wire fraud and filing a false tax return. Linderman was also ordered to pay over $1.7 million in restitution.

According to court documents, Linderman used his position as business area manager at Corvallis-based Trimble Forestry Automation to approve invoices from companies with whom he was personally associated. He used his knowledge of Trimble’s invoicing procedures to ensure that he alone would be required to authorize the expenditures. Linderman received a substantial amount of each vendor payment in the form of kickbacks to companies he owned including Strategic Enterprises and Santiam Organics.

Between 2009 and 2013, Linderman approved over $2.2 million in payments to Precision Mobile Integration and J. Waldien Designs. After he was terminated, Trimble discovered that the owner of the two vendors was a friend and former military colleague of Linderman’s, Jeffery Waldien. Waldien pleaded guilty and was sentenced in a separate case in January 2018.

A detailed financial analysis conducted by the FBI and IRS Criminal Investigation (IRS CI) discovered that of the more than $850,000 Trimble paid to J. Waldien Designs, more than $763,000 was based on fraudulent invoices. Approximately $636,000 of those funds were transferred to Strategic Enterprises and used by Linderman to start Santiam Organics. The analysis further discovered over $1 million in fraudulent payments to Precision Mobile Integration, the majority of which Linderman used for business and personal expenses.

Linderman pleaded guilty to one count each of wire fraud and filing a false federal income tax return on September 15, 2016.

This case was investigated by the FBI and IRS CI and prosecuted by Gavin Bruce and Amy Potter, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore. – On Wednesday, March 7, 2018, the U.S. Senate confirmed Billy J. Williams as the U.S. Attorney for the District of Oregon by voice vote. President Donald J. Trump signed his commission on Tuesday, March 13, 2018.

“I am honored by the confidence of President Trump, Attorney General Sessions, Senators Wyden and Merkley, Congressman Walden and all those who supported me throughout this process” said Williams. “The steadfast commitment and unyielding support of so many dedicated law enforcement leaders in Oregon—sheriffs, chiefs of police, tribal law enforcement, and federal law enforcement—is humbling. It is a privilege,” continued Williams, “to serve the citizens of Oregon and the United States alongside my colleagues at the U.S. Attorney’s Office.”

Williams was named Acting U.S. Attorney in May 2015. He was appointed Interim U.S. Attorney by Attorney General Loretta E. Lynch in December 2015 and re-appointed by Chief U.S. District Judge for Oregon Michael W. Mosman in February 2016. Williams will serve a four-year term as the chief federal law enforcement officer in Oregon.

As Interim U.S. Attorney, Williams served on a variety of Attorney General Advisory Subcommittees. As U.S. Attorney, he will continue to serve on the following subcommittees: Native American Issues Subcommittee, Border and Immigration Subcommittee, Domestic Terrorism Executive Committee and the Marijuana Working Group. He is a member of the Ninth Circuit Fairness Committee and the District of Oregon Implicit Bias Steering Committee.

Williams is an 18-year veteran of the Department of Justice, joining the U.S. Attorney’s Office in October 2000. Prior to his appointment as Acting U.S. Attorney, Williams held multiple leadership positions at the U.S. Attorney’s Office including First Assistant U.S. Attorney, Chief of the Criminal Division, Chief of the Violent Crimes Unit, and as the district’s Indian Country Assistant U.S. Attorney and Tribal Liaison.

Prior to his federal service, Williams served as a Senior Deputy District Attorney in Multnomah County where he supervised the Career Criminal Unit. As a state prosecutor, Williams handled major crimes of violence, including aggravated murder, adult and child sex offenses, domestic violence, narcotics trafficking, vehicular homicide, and officer-involved shootings.

Williams received his bachelor’s degree in criminal justice from Washington State University in 1981 and his law degree from the Willamette University College of Law in 1989.

PORTLAND, Ore. – Fernando Garces, 25, of Portland, was sentenced today in federal court to two years of probation for aiming a laser pointer at a news helicopter.

According to court documents, on the evening of November 9, 2016, Garces was driving on the Burnside Bridge in Portland during a protest. The bridge was full of pedestrians and cars were moving slowly as a result. A KGW news helicopter was flying over the bridge to report on the protest. A KGW photographer was in the back of the helicopter operating a camera.

While the pilot was hovering over the bridge, Garces pointed a high-powered laser beam directly at the helicopter. The intense blue laser light illuminated the helicopter cockpit. The light temporarily blinded both the pilot and the photographer. The pilot made several attempts to maneuver the helicopter to a position where it would not be hit by the laser. The laser illumination lasted approximately one minute before the pilot was able to regain enough vision to safely fly the helicopter, read controls in the cockpit and take evasive action.

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

 

PORTLAND, Ore. – Isaac Benjamin Voss, 41, of Clark County, Washington, pleaded guilty today to one count of wire fraud for defrauding domestic and foreign investors who believed they were investing in a viable clean energy company.

"Voss robbed victims of investment dollars by preying on their hopes of becoming legal permanent residents in the U.S.," said Billy J. Williams, U.S. Attorney for the District of Oregon. "I implore both domestic and international investors to think twice before supporting schemes that promise immigration shortcuts."

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 faces a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on August 14, 2018 before U.S. District Court Judge Anna J. Brown.

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.

EUGENE, Ore. – On Tuesday, February 27, 2018, U.S. District Court Judge Michael J. McShane sentenced two former executives and two former employees of Berjac of Oregon for their roles in a multi-year Ponzi scheme impacting more than 400 investors.

Brothers Michael S. Holcomb, 74, and Gary L. Holcomb, 72, both of Junction City, Oregon, were sentenced to 72 months in federal prison followed by three-year terms of supervised release. Michael Holcomb’s daughters, Jennifer L. Chalmers, 46, of Eugene, and Kristen S. Van Breeman, 44, of Happy Valley, Oregon, each received five years’ probation and 250 hours of community service.

“The Holcomb brothers and their heirs apparent victimized hundreds of innocent Oregonians while perpetrating Lane County’s largest-ever Ponzi scheme. These defendants robbed investors of not only their hard-earned money, but also the months and years spent diligently investing for college, retirement and other financial goals,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “It is unlikely these victims will ever be made whole.” 

“For years, the owners of the Berjac of Oregon and Berjac of Portland firms treated their clients like personal ATM's, using a Ponzi scheme to fund millions in risky real estate deals, vacations and personal expenses. When the scheme finally came crashing down, more than 400 victims discovered the promised rewards were nothing more than lies. Many lost their life savings to the defendants' greed and dishonesty,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.

According to court documents, between 2008 and 2012, Michael and Gary Holcomb were the principal managing partners of Berjac, an insurance premium financing business based in Eugene and Portland, Oregon. During this time, the pair solicited investments purportedly used to finance loans to small businesses to pay for those businesses’ insurance premiums. Investors were promised between five and seven percent returns. Michael and Gary Holcomb went to extraordinary lengths to conceal the misdirection of investor funds and the underperformance of investments. They used their clients’ money to invest in speculative real estate projects, to fund generous lifestyles, and to satisfy other personal financial obligations.

Chalmers and Van Breeman worked as office managers at Berjac of Oregon, in Eugene, and Berjac of Portland, respectively. Both managed the day-to-day operations of the business and intended to one day assume ownership of the firm before it collapsed in August 2012.

On September 15, 2017, all four defendants pleaded guilty in federal court pursuant to plea agreements. Michael and Gary Holcomb each pleaded guilty to one count of conspiracy to commit mail and wire fraud and to one count of money laundering. Chalmers and Van Breeman each pleaded guilty to one count of money laundering.

This case was investigated by the FBI and IRS Criminal Investigation and prosecuted by Scott E. Bradford and Gavin W. Bruce, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore. – On Friday, February 23, 2018, Dyno Nobel, Inc., pleaded guilty before U.S. District Judge Michael H. Simon to one count of violating section 103(b) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), following a series of large-scale ammonia discharges from a urea-manufacturing plant outside St. Helens, Oregon, in July and August 2015. The offense is a class-E felony, carrying a maximum fine of $500,000 and up to five years’ probation.

“Many of the nation’s environmental laws exist specifically to minimize the dangers essential industries pose to surrounding communities,” noted Billy J. Williams, U.S. Attorney for the District of Oregon, “and this criminal conviction will serve as an important reminder that the EPA and the United States Attorney’s Office will work together to ensure that violations of those laws do not go unpunished.”

“Not only did this defendant release over six tons of anhydrous ammonia, impacting the neighboring community, they impeded response actions by failing to report the release,” said Jeanne Proctor, EPA’s special agent in charge of the Criminal Investigation Division in Seattle. “EPA will not tolerate this blatant disregard for public safety.”

According to Dyno Nobel’s plea agreement with the government, the company’s St. Helens plant discharged more than six tons of anhydrous ammonia vapor—a hazardous substance—into the air over the course of a three-day period starting on July 30, 2015. A subsequent investigation revealed that several failed attempts to restart the urea plant had caused a series of massive discharges from the facility, triggering numerous complaints of foul odors, eye irritation, and difficulty breathing from citizens of nearby Columbia City, Oregon.

Although Dyno Nobel personnel knew that excessive ammonia emissions were occurring, no effort was made to alert the authorities at the National Response Center until August 7, 2015—more than a week after the first discharge. Federal law requires such reports to be made “immediately.”

Dyno Nobel, Inc. is a Delaware corporation and wholly owned subsidiary of IPL Group.  The company entered its guilty plea at Friday’s hearing through Senior Vice President and Secretary Jeff Droubay. The parties’ plea agreement proposes a stipulated criminal sentence of two years’ probation, requiring remedial steps to better measure and detect future emissions, and a $250,000 criminal fine. Ultimately, however, the Court may reject the parties’ stipulation and impose a different sentence.

This case was investigated by EPA Criminal Investigations; it was prosecuted by Assistant U.S. Attorney Ryan W. Bounds and Special Assistant U.S. Attorney Karla Gebel Perrin.

EUGENE, Ore. – On Thursday, February 8, 2018, U.S. District Court Judge Ann Aiken sentenced Eric Nathaniel Agee, 39, of Linn County, Oregon, to 15 years in federal prison for possession of methamphetamine and a stolen firearm. The day prior, on Wednesday, February 7, 2018, Judge Aiken sentenced Shawna Marie Smith, 30, also a resident of Linn County, to 10 years in prison for aiding and abetting Agee in distribution of methamphetamine. Agee and Smith had previously pleaded guilty to the crimes for which they were sentenced on August 22 and 23, 2017, respectively.

According to court documents and statements, on March 16, 2016, Agee and Smith were arrested after delivering 112 grams of methamphetamine to a hotel room in Marion County and 100 grams to a rest stop in Linn County. A stolen and loaded .22 caliber pistol was found under the front seat of their vehicle. Police later seized an additional 260 grams of methamphetamine and $2,117 in cash from a hotel room the Agee and Smith had previously occupied.

Agee had prior felony convictions for possession and delivery of methamphetamine and was on post-prison supervision when he committed these crimes. Smith had a prior felony conviction for possession of heroin and was on probation when arrested.

The defendants’ guilty pleas, admissions of guilt and sentencing recommendations were part of plea agreements negotiated with the U.S. Attorney’s Office for the District of Oregon, Linn County District Attorney Douglas Marteeny and Marion County District Attorney Walter Beglau.

This case was investigated by the U.S. Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Oregon State Police, the Benton and Linn County Sheriff’s Offices, and the City of Albany Police Department. It was prosecuted by Frank R. Papagni Jr., Assistant U.S. Attorney for the District of Oregon, with the assistance of Marion County Deputy District Attorneys Keir Boettcher and Katie Suver.

PORTLAND, Ore. – On Wednesday, February 7, 2018, Rhyan Leigh Smith, 26, of Warm Springs, Oregon, pleaded guilty in U.S. District Court to two counts of assault with the intent to commit murder in violation of 18 U.S.C. §§ 113(a) and 1153, and one count of possession of a firearm in furtherance of a crime of violence in violation of 18 U.S.C. § 924(c).

According to court documents, in the early morning hours of March 16, 2016, Smith returned to a house she had periodically resided in with five of her family members. At approximately 8:00 a.m., Smith retrieved a pistol she had taken from the owner without permission. Smith conversed briefly with a family member in doorway of the family member’s bedroom before shooting him five times. A second family member heard the gunshots and tried to stop Smith, but Smith shot her multiple times. Both victims suffered life-threatening injuries.

The Warm Springs Police Department and the FBI responded to the house and found Smith hiding in sagebrush near the house with an AR-15 assault rifle. Investigators later found a camouflage rifle bag with multiple AR-15 magazines, loose ammunition and a 9mm pistol in a vehicle at the house.

Smith faces a maximum sentence of life in prison and mandatory minimum sentence of 10 years. Her sentencing hearing is scheduled for May 21, 2018 before United States Chief District Court Judge Michael W. Mosman.

This case was investigated by the FBI and the Warm Springs Police Department and prosecuted by William Narus and Craig Gabriel, Assistant U.S. Attorneys for the District of Oregon.

On March 3, 1994, the FBI initiated “Operation Safe Trails” with the Navajo Department of Law Enforcement in Flagstaff, Arizona. The operation, which would later evolve into the Safe Trails Task Force (STTF) Program, unites FBI and other federal, state, local, and tribal law enforcement agencies in a collaborative effort to combat the growth of crime in Indian Country. STTFs allow participating agencies to combine limited resources and increase investigative coordination in Indian Country to target violent crime, drugs, gangs, and gaming violations.

PORTLAND, Ore. – On Tuesday, February 6, 2018, U.S. District Court Judge Michael H. Simon sentenced Gregory Walsh, to 24 months in federal prison followed by a three-year term of supervised release. Walsh had previously pleaded guilty to one count of conspiracy to commit mail and wire fraud in violation of 18 U.S.C. §1349 on April 16, 2016.

According to court documents, beginning in February 2011, Walsh, an Assistant Vice President at Morgan Stanley, worked with his brother Geoffrey Walsh, a former Vice President at the Bank of Oswego, to persuade an Arizona woman into loaning his brother more than $1.1 million for a real estate investment scheme. Walsh told the woman, a client of his at Morgan Stanley and recent widow, that the money would be used to purchase three condominiums in the Palm Springs, California area that would be titled in her name and sold within one year.

Contrary to the promises made, Geoffrey Walsh titled all three properties in the name of his business and did not provide loan or title documentation to his brother’s client. Between May and July 2012, Geoffrey Walsh sold two of the properties without the knowledge or permission of the client and used the proceeds to satisfy personal financial obligations. Later, in November 2012, after learning that his brother had sold the two properties without repaying his client, Walsh failed to reveal this information to the client.

In January 2013, Walsh was again contacted by his brother to gauge the same client’s interest in loaning him an additional $2 million for a real estate development project in Oregon. When discussing the potential loan, the client asked Walsh if his brother was involved in the transaction. Walsh lied to her saying that he was not. Soon thereafter, Walsh transferred the money from his client’s Morgan Stanley account to the client trust account of Geoffrey Walsh’s lawyer without the investor’s knowledge or approval. On March 5, 2013, the majority of these funds – over $1.7 million – were used to pay the balance of a line of credit at the Bank of Oswego for the benefit of Geoffrey Walsh. Geoffrey Walsh spent the remainder of the funds on other financial obligations.           

Throughout the duration of the conspiracy, Walsh repeatedly lied to his client about the status her loans, his brother’s financial and legal problems and his own lies in initiating both transactions.

During this same two-year period, Walsh initiated two other transactions that purportedly occurred on behalf of his client. In December 2011, a $100,000 wire was sent from his client’s Morgan Stanley account to a close friend of Geoffrey Walsh’s. Later, in January and February 2012, a transfer of $2 million was sent from the client’s account for an investment in a Colorado-based cannabis company. The investment was discussed with, but never approved by, Walsh’s client. The cannabis company later returned the $2 million loan after meeting with the FBI. The $100,000 transfer was never returned. Walsh made over $18,000 in commissions on these transactions before leaving Morgan Stanley.

Geoffrey Walsh pleaded guilty to one count each of conspiracy to make false bank records, conspiracy to commit mail and wire fraud, and wire fraud and was sentenced to 30 months in federal prison and three years’ supervised release on January 24, 2018.

This case was investigated by the FBI and the FDIC Office of Inspector General (OIG-FDIC) and prosecuted by Claire M. Fay, Michelle Holman Kerin, and Quinn P. Harrington, Assistant U.S. Attorneys for the District of Oregon.

PORTLAND, Ore. – Today, the U.S. Attorney’s Office and Disability Rights Oregon announced that they have reached an agreement providing Springfield, Oregon veteran Michael Williamson with continued in-home care services, at least through April 15, 2018. With this temporary extension of services in place, the U.S. Department of Veterans Affairs (VA) will continue to seek a long-term solution to keep Mr. Williamson in his home.

“We are pleased to announce that the VA reached an agreement with New Horizons, a home health agency, to extend Mr. Williamson’s in-home care services in the short-term,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “We look forward to our continued work with the VA and Disability Rights Oregon to find a long-term solution that will provide care to an honored veteran in an integrated setting with the appropriate level of care to meet Mr. Williamson’s needs.”

PORTLAND, Ore. – On Thursday, February 1, 2018, Sonny Donnie Smith, 38, of Clackamas, Oregon, pleaded guilty in U.S. District Court to making anonymous harassing telephone calls to two airports, in violation of 47 U.S.C. § 223(a)(1)(C). Smith waived indictment by a federal grand jury and pleaded guilty to an information filed by the United States Attorney’s Office.

According to court documents, Smith admitted to making two anonymous telephone calls to security offices at McCarran International Airport in Las Vegas, Nevada and Midland International Air and Space Port in Midland, Texas. In both calls, Smith falsely reported that a family member traveling through the airport was a terrorist. An investigation revealed no real terrorist threat and that Smith made the calls because of a family feud.

“The safety and security of our nation’s airports and travelers are of paramount importance to law enforcement, and we will continue to swiftly and thoroughly investigate all threats of terrorism,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “False reports intended to harass others waste law enforcement time and resources and will be prosecuted accordingly.”

“Today’s technology makes some believe they can anonymously create chaos to resolve personal grievances. Thanks to the FBI agents and partner agencies who worked this case, Mr. Smith quickly found his harassment was far from anonymous. Whether someone makes a false claim to harass a particular person or more generally to disrupt air travel, they should know the FBI will respond. That requires the use of limited resources, potentially delaying response to other serious incidents and real victims. For this reason, you can expect to be held accountable for your threat - hoax or not,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.

Smith faces a maximum sentence of two years in prison, a $250,000 fine and one year of supervised release. His sentencing hearing is scheduled for May 10, 2018 before United States District Court Judge Anna J. Brown.

This case was investigated by the FBI and prosecuted by Hannah Horsley, Assistant United States Attorney for the District of Oregon.

PORTLAND – U.S. Attorney Billy J. Williams announced today that the District of Oregon collected $21,705,595 in criminal and civil actions in Fiscal Year 2017. Of this amount, $8,066,251 was collected in criminal actions and $13,639,344 in civil actions.

           

Additionally, the District of Oregon worked with other U.S. Attorney’s Offices, Justice Department components and partner agencies to collect $575,775 in joint criminal and civil actions and $1,540,289 in asset forfeitures, bringing Oregon’s total to nearly $24 million. Forfeited assets deposited into the Justice Department’s Assets Forfeiture Fund are used to assist crime victims and for a variety of other law enforcement purposes.

 

Overall, the Justice Department collected more than $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.

 

“Thanks to the hard work and dedication of the District of Oregon’s Asset Recovery and Money Laundering Division and our partner agencies, funds recovered in the past fiscal year far exceed our office’s annual operating budget,” said Billy J. Williams, United States Attorney for the District of Oregon. “Our staff is dedicated to holding accountable those who seek to profit from illegal activities and will continue aggressively pursuing financial compensation for victims of crimes, and protecting government programs from exploitation and abuse.”

 

One example of the district’s recent restitution collection efforts was in a series of cases brought against members of the Desmarais family who owned and operated eight strip clubs and two adult video stores in the Portland metropolitan area. The family used these businesses as a front for the largest prostitution enterprise ever prosecuted in Oregon. The family collected cash every time a stripper engaged in an act of prostitution with a customer from 2006 through 2010, evading $728,165 in income taxes due on $2.6 million in unreported prostitution income. The four most culpable family members pleaded guilty to conspiring to defraud the Internal Revenue Service (IRS) and running a prostitution business. They were ordered to pay the IRS $728,165 in restitution and agreed to forfeit an additional $843,517 in cash seized during the execution of search warrants.

 

Another example comes from a case stemming from a July 28, 2009 fire in the Umpqua National Forest in southern Oregon known as the Williams Creek Fire. The Williams Creek Fire burned approximately 8,395 acres, most of which were National Forest System lands within the Umpqua National Forest. The fire caused the U.S. Department of Agriculture (USDA) to incur suppression, resource damages, and rehabilitation costs totaling over $16 million. An investigation concluded that the fire was caused by a power line fault occurring on a utility right of way owned, managed and controlled by PacifiCorp. The U.S. Attorney’s Office filed an action on behalf of the USDA seeking to recover the costs incurred by the U.S. related to the fire and ultimately collected $13 million.

 

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

 

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

PORTLAND, Ore. – On Wednesday, January 24, 2018, U.S. District Court Judge Michael H. Simon sentenced Geoffrey S. Walsh, a former vice president of the Bank of Oswego, to 30 months in federal prison followed by a three-year term of supervised release. Walsh had previously pleaded guilty to one count each of conspiracy to make false entries in bank records, conspiracy to commit mail and wire fraud, and wire fraud on July 22, 2015.

 

“Geoff Walsh intentionally and repeatedly perpetrated large financial crimes that cheated individual investors and deceived bank regulators and the Bank of Oswego’s Board of Directors,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “He achieved this largely while retaining a position of trust as a bank executive. The imposition of this sentence demonstrates that stealing from investors and lying to regulators about a bank’s financial condition are grave matters and subject to felony charges and a prison sentence. Today’s sentencing is many years’ in the making and a testament to the hard work and persistence of federal law enforcement.”

 

"Today's sentencing helps to shed light on the sophisticated world of complex financial fraud at a bank where certain executives were more committed to their personal interests than those of their customers," said Steve Goldman, Assistant Special Agent in Charge of the FBI in Oregon. "Geoff Walsh's deal-making during these long-running schemes damaged the bank itself and hurt the friends and clients who had entrusted him with their money."

 

Facts Related to Conspiracy to Make False Entries in Bank Records Conviction

 

From January 2009 to May 2012, Walsh served as the Bank of Oswego’s Vice President and Director of Mortgage Services and later as its Vice President of Business Development and Lending Services. As an institution insured and regulated by the Federal Deposit Insurance Corporation (FDIC), the bank was required to submit quarterly call reports detailing the financial condition of the bank.

 

From 2009 through 2010, the bank was in second position on a mortgage secured by real property located on A Avenue in Lake Oswego, Oregon. The borrower’s failure to make timely payments and her deteriorating financial condition were discussed weekly by Walsh and other members of the bank’s Internal Loan Committee (ILC), including the CEO, Dan Heine and CFO, Diana Yates. In October 2010, the first mortgagee declared the borrower in default and foreclosed on the property. In order to avoid a loss of nearly $100,000 and avoid reporting the loss to the FDIC and the board of directors, Walsh, Heine and Yates formulated a plan to acquire and sell the property to recover the remaining balance on the loan. Walsh was put in charge of obtaining the property for the bank.

 

Walsh initially attempted to purchase the property directly from Fannie Mae, but was told it could only be sold to an individual who planned to occupy the property, and could not be sold to an institution until the property had been on the market for 15 days. On behalf of the bank, Walsh arranged for another bank employee to serve as a straw buyer, purchasing the property in the employee’s name. To accomplish this, Walsh, Heine and Yates agreed to and submitted false information to Fannie Mae about the true buyer, the source of the funds to purchase the property and the buyer’s intent to remain in the home as an occupant. Records of the sale were purposefully not maintained by Walsh, Heine and Yates in order to conceal the transaction from the bank’s board of directors and the FDIC.

 

On November 28, 2017, a federal jury found Heine and Yates guilty of a conspiracy to deceive the bank’s board of directors, shareholders and regulators as well as 12 counts of making false entries in the bank’s records to the FDIC and the board of directors. The verdict was based, in part, on the A Avenue transaction. Heine and Yates will be sentenced on March 5, 2018.

 

Facts Related to Conspiracy to Commit Mail and Wire Fraud Conviction

 

According to court documents, Walsh worked with his brother Gregory Walsh, a former Vice President at Morgan Stanley, to persuade an Arizona woman into loaning him more than $764,000 for a real estate investment scheme. The woman, a recent widow and client of Greg Walsh’s, was told the money would be used to purchase two condominiums in the Palm Springs, California area that would be titled in her name and sold within one year.

 

Contrary to the promises made, Walsh titled each of the properties in the name of his business and never provided any loan or title documentation to his investor. Between May and July 2012, he sold the properties without the knowledge or permission of his investor and used the proceeds to satisfy personal financial obligations.

 

In January 2013, Walsh contacted his brother to gauge the same investor’s interest in loaning him an additional $2 million for a real estate development project in Oregon. Greg Walsh transferred the money from the investor’s Morgan Stanley account to his brother without the investor’s knowledge or approval. On March 5, 2013, the majority of these funds – over $1.7 million – were used to pay the balance of a line of credit at the bank. Walsh spent the remainder of the funds.

 

Greg Walsh has also pleaded guilty to conspiracy to commit wire fraud for these same transactions. His will be sentenced on February 6, 2018.

 

Facts Related to Wire Fraud Conviction

 

In May 2012, Walsh secured a commercial loan for $500,000 from an Oregon resident, using the first two Palm Springs properties as collateral. In securing the loan, he failed to disclose that the properties were already pledged as security for loans he had obtained from the Arizona investor and that he was already in negotiations to sell one of the properties. Soon after receiving the loan, Walsh sold both properties and used the proceeds for his own benefit.

 

Between November 2012 and July 2013, the Oregon resident was repeatedly in contact with Walsh in an attempt to obtain repayment. Walsh assured his lender that he would repay the loan in full with interest. In May 2013, the lender met with the FBI to discuss Walsh’s default on the loan. Walsh made a partial repayment of $300,000 after the lender met with the FBI.

 

This case was investigated by the FBI and the FDIC Office of Inspector General (OIG-FDIC) and prosecuted by Claire M. Fay, Michelle Holman Kerin, and Quinn P. Harrington, Assistant U.S. Attorneys for the District of Oregon.

SAN FRANCISCO – On Friday, January 12, 2018, Richard Macadangdang Sales, 68, made his initial appearance before U.S. Magistrate Judge Maria-Elena James in the Northern District of California after FBI agents from the Bend, Oregon Residence Agency escorted him back to the U.S. from Indonesia. In December 2017, a federal grand jury in Eugene, Oregon indicted Sales on four counts of wire fraud and one count of money laundering for an alleged scheme that cheated investors of more than $900,000.

The indictment alleges that between 2011 and 2013, investors were led to believe Sales was using their investments to recover hundreds of millions of dollars’ worth of U.S. Treasury Notes located in East Asia and the Pacific. The indictment states that victims believed Sales was building humanitarian housing for victims of natural disasters as part of this recovery process and that they would see returns as high as 100 percent.

Sales had been living outside the U.S. since 2012. Working with the Indonesian National Police and Indonesian Immigration, through the FBI’s Legal Attaché office in Jakarta, FBI agents traveled to Indonesia and met Sales as he was deported on January 11, 2018. FBI agents escorted him back to the United States and arrested him after touching down on U.S. soil.

Judge James ordered Sales detained pending transfer by the U.S. Marshals Service to the District of Oregon for further court proceedings.

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

PORTLAND, Ore., - Billy J. Williams, United States Attorney for the District of Oregon, provided the below statement on marijuana enforcement in the District of Oregon.

"As noted by Attorney General Sessions, today’s memo on marijuana enforcement directs all U.S. Attorneys to use the reasoned exercise of discretion when pursuing prosecutions related to marijuana crimes. We will continue working with our federal, state, local and tribal law enforcement partners to pursue shared public safety objectives, with an emphasis on stemming the overproduction of marijuana and the diversion of marijuana out of state, dismantling criminal organizations and thwarting violent crime in our communities."

PORTLAND, Ore. – On Tuesday, December 12, 2017, U.S. District Court Judge Robert E. Jones sentenced Thomas Gene Duncan to 25 years in federal prison followed by a life term of supervised release. Duncan pleaded guilty on August 29, 2017, to one count each of the production and possession of child pornography in federal court. He pleaded guilty to one count each of first-degree rape, second-degree sodomy, and unlawful sexual penetration in state court.  Duncan will be sentenced in state court in early January 2018.

 

“Thomas Duncan is a convicted sex offender who will justly serve the next 25 years in federal prison. Sadly, the potential physical, psychological, and emotional toll on his victim is a predictable consequence of this kind of predatory behavior,” said Billy J. Williams, United States Attorney for the District of Oregon. “It is our hope that this sentence will provide a sense of closure for the victim. The law enforcement community applauds such courage and strength in the face of adversity,” continued U.S. Attorney Williams, “and will continue to pursue similar perpetrators who engage in this reprehensible and destructive conduct.”

 

"Young, vulnerable victims don't just suffer abuse once at the hands of their attacker. They are violated every day - often for years - as strangers living in the dark corners of the Internet trade images and videos," said Renn Cannon, Special Agent in Charge of the FBI in Oregon. "I am proud of the people on the FBI's Child Exploitation Task Force who work day in and day out to bring justice to these children and put their abusers behind bars."

 

According to court documents, Duncan used a dark web bulletin board and website called “Playpen” to search for and obtain child pornography. The server hosting Playpen was seized by the FBI early in 2015. Between October 20, 2014 and March 4, 2015, Duncan logged a total of 72 hours on the site. In a one-week period beginning February 25, 2015, he downloaded 89 files. Duncan admitted to possessing a large collection of pornography on his personal computer, and provided investigators with the password for the device.

 

A forensic review of Duncan’s computer revealed approximately 4,000 images and 120 videos of child pornography. Investigators also discovered sexually explicit images and videos of his fiancée’s then 12-year-old daughter, and troubling though non-pornographic images of her younger sister. Duncan admitted to sexually abusing the 12-year-old on multiple occasions. He was taken into custody following the execution of a search warrant at the residence he shared with his fiancée and her daughters.

 

The case was investigated by the FBI’s Portland Division and prosecuted by Gary Y. Sussman, Assistant United States Attorney for the District of Oregon.

 

The 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.

 

Child sexual exploitation investigations – many of them undercover – are conducted in FBI field offices by Child Exploitation Task Forces (CTEFs), which combine the resources of the FBI with those of other federal, state, and local law enforcement agencies. 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 pornography.

 

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.

EUGENE, Ore. – On Tuesday, December 5, 2017, U.S. District Court Judge Ann L. Aiken sentenced Michael Schmidt to 24 months in federal prison followed by five years of supervised release. Schmidt had previously pleaded guilty to a single charge of failing to register as a sex offender on September 6, 2017.

 

According to court documents, Schmidt was convicted of first-degree rape and kidnapping on October 10, 1997 in Lane County, Oregon and was required to register as a sex offender for life. He fled the state during his post-prison supervision, failing to complete a sex offender treatment program. Schmidt was located, arrested, and indicted for failing to register as a sex offender in the Northern District of Indiana. His case was later transferred to the District of Oregon.

 

“Sex offender registration serves the dual purpose of protecting the community from violent criminals and helping sexual offenders successfully avoid recidivism,” said Billy J. Williams, United States Attorney for the District of Oregon. “Deliberately avoiding registration is a serious crime and will be punished accordingly.” 

 

The case was investigated by the United States Marshals Service and prosecuted by Jeffrey S. Sweet, Assistant United States Attorney for the District of Oregon, and Stacey R. Speith, Assistant United States Attorney for the Northern District of Indiana.

PORTLAND, Ore. – A federal jury today delivered its verdicts against two executives of the Bank of Oswego formerly headquartered in Lake Oswego, Oregon. Dan Heine and Diana Yates were charged with conspiracy to commit bank fraud and falsifying bank entries, reports, and transactions in a five-year scheme beginning in September 2009.

 

Jurors found both Heine and Yates guilty of one count of conspiracy to commit bank fraud and twelve counts of falsifying bank entries, reports, and transactions. Each charge carries a maximum sentence of thirty years in federal prison.

 

“As the jury found today, Dan Heine and Diana Yates violated the law by deceiving the Bank of Oswego’s board of directors, customers, and federal regulators in an attempt to conceal the organization’s true financial condition,” said Billy J. Williams, United States Attorney for the District of Oregon. “Together with our partners at the FBI and the Federal Deposit Insurance Corporation, we remain steadfast in our commitment to protecting the integrity of our financial system from fraudulent and corrupt banking practices.”

 

"Banks and the people who run them should serve as the cornerstone of the American economy," said Renn Cannon, Special Agent in Charge of the FBI in Oregon. "When bankers conspire, lie, and hide wrongdoing to benefit themselves, they undercut the integrity of the financial system on which we all depend."

 

Dan Heine, a co-founder of the bank, was president, Chief Executive Officer (CEO) and member of the board of directors from September 2004 through September 2014. Diana Yates, also a co-founder, was executive vice president, Chief Financial Officer (CFO), and secretary of the board of directors from 2004 through March 2012. During the conspiracy Heine and Yates concealed the true financial condition of the bank to regulators and the board of directors by falsely reporting that the bank had title to a property in a straw buyer transaction, falsely reporting that delinquent loans were paid, and falsely reporting the sale of bank owned property.

 

Sentencing for both defendants is scheduled for March 5, 2018 in Portland. The case was investigated by the FBI and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) and prosecuted by Quinn Harrington and Michelle Kerin, Assistant United States Attorneys for the District of Oregon.

MEDFORD, Ore. – Today, U.S. District Court Judge Michael McShane sentenced Patrick Snyder, 41, of Grants Pass, Oregon, and Juvenal Vega Rodriguez, 54, of Medford, Oregon, for perpetrating a large-scale immigration fraud and money laundering violations—more than 90 immigrants were defrauded out of more than $600,000 between 2009 and 2012.  Judge McShane sentenced Snyder to 75 months of imprisonment and ordered him to pay $637,190 in restitution.  Likewise, he sentenced Vega to 41 months of  imprisonment and ordered him to pay $150,000 in restitution.  Previously, Snyder pleaded guilty to conspiracy to commit mail and wire fraud and money laundering, and Vega pleaded guilty to money laundering. 

 

According to court documents, Snyder and Vega used Snyder’s business, Immigration Solutions, to solicit immigrants seeking legal status in the United States, falsely promising that they could obtain legal status for these individuals for a fee that ranged between $5,000 and $10,000.  While Snyder and Vega lived in the Medford, Oregon, area, Vega, who immigrated from Mexico and became a U.S. Citizen  the United States in 1990s, recruited individuals to use their alleged immigration services at various church and social gatherings throughout Oregon, specifically targeting Spanish-speaking immigrants.  Snyder, found to be a leader and organizer of the scheme, admitted that he targeted his victims based on their race, national origin, and ethnicity. 

 

As part of their scheme, as noted in court records, Snyder and Vega falsely told their victims that they were accredited representatives with United States Citizenship and Immigration Services, that Snyder was a lawyer, that Snyder had connections with immigration officials, that Snyder was an immigration agent, and that Snyder was a detective with the Federal Bureau of Investigation.  When clients of their alleged immigration services questioned their work, Snyder and Vega threatened those clients with deportation and other consequences.

 

Billy J. Williams, United States Attorney for the District of Oregon, commented, “These defendants targeted an extremely vulnerable group of individuals based on their race, national origin, and ethnicity.  They were the perfect victims—they were desperate and fearful, and these defendants exploited that desperation and fear for their own greedy desires.  My office cannot and will not tolerate such conduct.  In addition to the FBI, I would like to thank the Medford Police Department and the Jackson County District Attorney’s Office for their assistance with this important case.”

           

This case was investigated by the FBI, the Medford Police Department, and the Jackson County District Attorney’s Office and is being prosecuted by Assistant U.S. Attorney Scott E. Bradford.

MEDFORD, Ore. – On Thursday, November 16, 2017, United States District Judge Michael J. McShane sentenced Brian Keith Sunkenberg, 53, to 45 months in prison after he pleaded guilty to endangering human life by manufacturing marijuana in the form of hash oil. Judge McShane ordered Sunkenberg to pay $27,671 in restitution.

According to court documents, Sunkenberg conspired with others to manufacture hash oil at a trailer park in Grants Pass, Oregon.  On February 14, 2016, Sunkenberg went to a convenience store and purchased multiple large cans of butane, a highly flammable liquid used to manufacture hash oil.  Later that day, while two children and another adult were present inside Sunkenberg’s trailer, the butane ignited, causing a massive explosion and fire.  The fire destroyed the trailer, damaged a neighbor’s trailer, and resulted in second and third degree burns to the two children and Sunkenberg.  In the trailer, investigators found twenty six 300 ml canisters of butane and an additional ten empty canisters that had apparently exploded in the fire.

After the incident, Sunkenberg and two friends went to the hospital where one of the minors was undergoing treatment for their injuries. Sunkenberg confronted the parents visiting their child and threatened “consequences” if the minor talked to investigators. 

DEA Special Agent in Charge Keith Weis said, “Justice has been served to this reckless individual whose selfish criminal actions put our citizens lives in jeopardy, to include almost killing innocent children.”

“This activity is not just illegal, it poses a significant danger to the community and in this case to the children and another adult nearby,” said US Attorney Billy J Williams. “The purchase of large quantities of canned butane should raise the alarm about the illicit manufacturing of butane hash oil. Despite recent Oregon laws increasing the penalties for persons causing explosions related to these illegal manufacturing activities, illegal hash oil production is on the rise with explosions this year resulting in the deaths of three people and severe injuries to others.”

This case was investigated by agents from the U.S. Drug Enforcement Administration (DEA) and the Grants Pass Department of Public Safety, and was prosecuted by Assistant U.S. Attorney William “Bud” Fitzgerald.

 

 

 

EUGENE, Ore.—On Wednesday, November 15, 2017, United States District Court Judge Ann Aiken sentenced Lateef Aina Animawun, 37, a Nigerian citizen and recent resident of the Atlanta, Georgia area, to federal prison for 65 months for his role in committing conspiracy to commit mail and wire fraud, aggravated identity theft and mail and wire fraud.  He was also ordered to pay $2,304,044.92 in restitution.  Animawun will be subject to deportation upon completion of his prison sentence.

 

According to court documents, in May 2013, a Medford victim notified the IRS that false federal and Oregon state tax returns were filed electronically using her and her husband’s names. The returns included personally identifiable information (PII) including their social security numbers and dates of birth.

 

An IRS investigation led to search warrants of residences in Illinois, Maryland and Georgia and numerous email and instant messenger accounts used by the defendant and other co-conspirators to further their fraudulent scheme.  Agents seized prepaid debit cards with fraudulent tax refunds still on them, approximately $79,000 worth of money orders, over $14,000 in cash and electronic devices.  The IRS determined that the co-conspirators obtained the stolen PII of more than 250,000 victims.  This included stolen identities from the database of an Oregon company purchased from sources in Vietnam by one of the co-conspirators.  Additionally, the co-conspirators gained access to the IRS “Get Transcript” system where they obtained sensitive taxpayer information on their identity theft victims and used it to file fraudulent tax returns.

 

Agents found thousands of stolen identities in Animawun’s email accounts many of them originating from co-defendant Emmanuel Kazeem.  Animawun directly accessed victim IRS taxpayer transcripts, he used prepaid debit cards set up with the stolen identities to file numerous fraudulent tax returns and wired fraudulent tax refunds to Nigeria.  

 

Last August, a federal jury in Medford convicted Emmanuel Kazeem of 19 counts of mail and wire fraud, aggravated identity theft and conspiracy to commit mail and wire fraud.  Based on evidence presented at the trial, Emmanuel Kazeem purchased over 91,000 of the stolen taxpayer identities from a Vietnamese hacker.  These stolen identities originated from the Oregon Company database and most of them belonged to victims living in Oregon and Washington.  His sentencing is currently set for March 22, 2018.  The sentencing for Oluwamuyiwa Olawoye is scheduled for April 19, 2018 for his role in the offenses.  Three other co-defendants, Oluwaseunara Osanyinbi, Oluwatobi Dehinbo and Michael Kazeem have been sentenced.

 

This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services, Office of Inspector General and the FBI.  Investigative support was provided by the Treasury Inspector General for Tax Administration; the U.S. Postal Inspection Service; the U.S. Department of State; and, the U.S. Department of Homeland Security, Homeland Security Investigations and Enforcement and Removal Operations.  Byron Chatfield and Gavin Bruce, Assistant United States Attorneys, are prosecuting the case for the District of Oregon.

PORTLAND, Ore. – Sylis Terrance Thomas, 25, of Salem, Oregon, and Lakisha Berry, 25, also of Salem, Oregon, were sentenced today by U.S. District Court Judge Anna J. Brown for conspiring to make false statements to two Salem-area gun retailers during the purchase of 11 firearms. Both defendants previously entered guilty pleas and have been out of custody since their arrest on federal charges. Thomas received a sentence of 24 months imprisonment and Berry received a sentence of 12 months imprisonment. Both will serve three years of supervised release following the completion of their prison sentences.

This investigation began when Salem Police notified the Bureau of Alcohol, Tobacco and Firearms of Thomas’s October 1, 2015 purchase of 9 handguns from The Pawn Shop and two handguns from the Sportsman’s Warehouse, both Federal Firearms Licensees in Salem. ATF Agents subsequently obtained video footage of Berry inside the gun shop with another individual who appeared to be selecting the guns while Berry stood nearby. At the conclusion of both sales, Berry signed federally required sales documents, in which she declared that she was the actual buyer and that the weapons were not purchased on behalf of another. Agents were able to identify the other person as Sylis Terrance Thomas, a convicted felon, prohibited by law from possessing firearms. Agents learned that two weeks after Berry bought the guns, one of the handguns was recovered in Oakland, California, during the course of an investigation into an attempted murder and robbery. Oakland Police did not get any information about the gun except that it was bought on the street for $450.

On October 23, 2015, agents served a federal search warrant at defendant Thomas’s residence. During the search warrant, Thomas told agents that he gave Berry most of the money to buy the guns and that he wanted the firearms for protection. He stated that he was “highly aware” that he was not allowed to purchase or possess firearms, so he asked defendant Berry to buy him the guns. Although Thomas stated that Berry knew he could not have firearms, she agreed to purchase them.

Using the defendant’s cell phone records and other investigative tools, Agents determined that both Berry and Thomas left the Salem area immediately following their purchases, travelling south on I-5 to the Oakland, California, area. Thomas later admitted that he and Berry sold the guns for cash to people he knew in Sacramento.

On November 27, 2015, the California Highway Patrol recovered a Sig Sauer pistol from a driver during a routine traffic stop. That gun had also purchased by Berry. To date, the whereabouts of the other 9 firearms is unknown.

This case was investigated by the Salem Police, and the ATF and was prosecuted by Assistant U.S. Attorney Greg Nyhus.

MEDFORD, Ore. – On Wednesday, November 8, 2017, United States District Court Judge Ann Aiken sentenced Michael Oluwasegun Kazeem, 24, a Nigerian citizen and recent resident of Georgia, to 7 years in federal prison for his role in committing conspiracy to commit mail fraud, aggravated identity theft and mail fraud.  The sentence included the two-year mandatory minimum for possessing or using a victim’s identity to commit fraud.  The Judge also ordered him to pay $4,298,860 in restitution.  Kazeem will be subject to deportation upon completion of his prison sentence for committing these aggravated felonies.

 

According to court documents, in May 2013, a Medford victim notified the IRS that false federal and Oregon state tax returns were filed electronically using her and her husband’s names. The returns included personally identifiable information (PII) including their social security numbers and dates of birth. The federal refund was deposited into an account via a prepaid debit card in a suburb of Chicago while the state refund was directed to a bank account in Texas.

 

An IRS investigation led to search warrants of residences in Illinois, Maryland and Georgia and numerous email and instant messenger accounts used by the defendant and other co-conspirators to further their fraudulent scheme.  At a Chicago residence, agents seized approximately 150 prepaid debit cards and $50,000 in money orders. Agents learned that the Chicago co-conspirator was connected to an identity-theft scheme being run out of Lagos, Nigeria since at least 2011. In Maryland and Georgia, the IRS seized more than 50 electronic devices, 40 money orders in amounts exceeding $29,000, $14,000 in cash and numerous Greendot prepaid debt cards containing over $12,000 in fraudulent tax refunds.

 

The IRS criminal investigation eventually determined that the overall scheme resulted in the co-conspirators possessing stolen personal identifying information (PII) of more than 259,000 victims.  In carrying out their scheme, the co-conspirators used the stolen PII to acquire over 19,500 electronic filing PINs from the IRS in the taxpayers’ names to be used to bypass IRS authentication procedures.  They also obtained and used pre-paid debit cards with the victims’ stolen identities to receive direct electronic tax refund deposits.  They eventually filed over 10,000 fraudulent federal tax returns attempting to obtain over $91 million dollars in refunds with actual losses amounting to over $11 million dollars.  Refunds were withdrawn from the debit cards and at least 2,000 wire transfers totaling over $2.1 million were sent to Nigeria.

 

In 2014, the co-conspirators also gained access to the IRS “Get Transcript” system where they obtained sensitive taxpayer information and used it to file additional fraudulent returns. They obtained over 1,600 personal taxpayer transcripts from the IRS.  In 2015, because of these and other security breaches, the IRS discontinued the “Get Transcript” program nationwide.

 

Michael Kazeem joined the conspiracy in 2013 to help his brother, Emmanuel Kazeem, 34, of Bowie, Maryland and Nigeria with the fraudulent tax scheme.  Agents identified Emmanuel Kazeem as leader and organizer of the group who received, organized and distributed stolen identities.  Michael Kazeem used the stolen PII from his brother to obtain electronic filing PINs from the IRS in the taxpayers’ names and acquired numerous disposable email accounts used to file fraudulent tax returns and obtain taxpayer transcripts from the IRS.  He also “washed” the stolen identities through credit bureaus to ensure they would skirt IRS authentication procedures and he secured employer names with EINs for use on fraudulent W-2s used by his brother in the tax filings.  He also helped his brother locate others in various states to help assist in removing fraudulent tax refunds from the prepaid debit cards and wiring them to Nigeria.  Agents found over 16,500 stolen identities in his email/IM accounts including 13,203 victims originating from an Oregon company database and over 4,500 E-File PINs.  Agents directly linked him to 1,479 fraudulently filed tax returns and 1,202 IRS taxpayer transcripts.  He participated in the scheme both before and after entering the United States in August 2014 on a student VISA. 

 

Last August, a federal jury in Medford convicted Emmanuel Kazeem of 19 counts of mail and wire fraud, aggravated identity theft and conspiracy to commit mail and wire fraud.  Based on evidence presented at the trial, Emmanuel Kazeem purchased over 91,000 of the stolen taxpayer identities from a Vietnamese hacker.  These stolen identities originated from the Oregon Company database and most of them belonged to victims living in Oregon and Washington.  His sentencing is currently set for March 22, 2018.  The sentencings for two other co-conspirators, Lateef Animawun and Oluwamuyiwa Olawoye, are scheduled for November 15, 2017 and April 19, 2018, respectively.  Two other co-defendants, Oluwaseunara Osanyinbi and Oluwatobi Dehinbo, were previously sentenced on May 18, 2017.

 

This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services, Office of Inspector General and the FBI.  Investigative support was provided by the Treasury Inspector General for Tax Administration; the U.S. Postal Inspection Service; the U.S. Department of State; and, the U.S. Department of Homeland Security, Homeland Security Investigations and Enforcement and Removal Operations.  Byron Chatfield and Gavin Bruce, Assistant United States Attorneys, are prosecuting the case for the District of Oregon.

 

PORTLAND, Ore. – On Monday, November 6th, U.S. District Judge Marco Hernandez sentenced Taquarius Kaream Ford, 38, of Portland, Oregon, to 33 years in federal prison followed by a lifetime of supervised release. On December 21, 2016, after a jury trial, Ford was found guilty of multiple counts, including Conspiracy to Commit Sex Trafficking by Force, Fraud, or Coercion and Sex Trafficking by Force, Fraud, or Coercion.

Between 2008 and 2013, defendant Taquarius Ford (a/k/a "Cameron Ford") traveled around the United States and recruited 40 young women with promises of "modeling" careers, when in fact, his plan involved exploiting them in the commercial sex industry. Defendant met these young women in suburban shopping malls, usually in small towns. He lured them in by posing as a successful modeling executive from Beverly Hills who had connections to famous celebrities. He shared photographs of himself standing next to famous people and he urged his recruits to show their family and friends his business card and his "Victory P.R." website.

Ford convinced his recruits to travel to Los Angeles, where he wined and dined them in Hollywood, took them to red carpet events, and introduced them to television stars. Next, Ford made promises of professional photo shoots to kick-start their modeling careers, but first, there was a catch. Ford explained to his recruits that if they wanted to become models, they must first start at the bottom and work their way up; they needed to engage in some "escorting" work for him in order to continue on the path towards a successful modeling career. Ford used various techniques to maintain control over these recruited women and to cause them to engage in commercial sex acts, including relying on his female co-defendant to reassure them, making promises of fame and fortune, isolating them, using violence, rape and sexual assault. Even after the women escaped from him, defendant continued to terrorize them and their family members with threats and blackmail.

"This investigation started with an alert hotel employee calling the Port of Portland Police concerned about prostitution activity. As a result of that call, a young courageous victim was rescued. Through the efforts of the brave young women who came forward to testify and the diligent pursuit of justice by the law enforcement investigators, the community will now be protected from this predator" said US Attorney Billy J. Williams. "This case is a cautionary tale for young women and families about the manipulative techniques used to ensnare young unsuspecting victims into sex trafficking. I would like to say this is an isolated incident, but tragically it is becoming all too common and the information we learned through this investigation should be widely shared as a warning".

"Taquarius Ford promised those victims a future filled with bright lights and big money, but that dream quickly turned to the stuff of nightmares: rapes, beatings and threats against loved ones," said Renn Cannon, Special Agent in Charge of the FBI in Oregon. "Those victims deserve justice, and the FBI's Child Exploitation Task Force ensured they got it. I want to thank the Port of Portland as well as the Tigard Police Department and all of our task force partners on the CETF for ensuring that Ford will spend many years behind bars."

This case was investigated by the Port of Portland who first brought the case to the FBI’s attention, and a Tigard Police detective who serves as a task force officer on the FBI's Child Exploitation Task Force (CETF) who led this investigation. Portland FBI's CETF consists of agents and Task Force Officers from Beaverton PD, Portland Police Bureau, Tigard PD, Hillsboro PD, and Clackamas County Sheriff's Office. The FBI's Child Exploitation Task Force is committed to locating and arresting those who prey on children, as well as recovering underage victims of sex trafficking and child pornography. Assistant U.S. Attorney Leah K. Bolstad and Special Assistant U.S. Attorney J.R. Ujifusa prosecuted the case in federal court.

PORTLAND, Ore. – On Wednesday, November 1st, U.S. Senior District Judge Robert E. Jones sentenced Raul David Alvarado, 39, of Kelso, Washington, to 25 years in federal prison followed by 5 years of supervised release. On May 25, 2017, Alvarado was found guilty following a jury trial to Conspiracy to Distribute Controlled Substances involving 1 kilogram or more of heroin and 500 grams or more of methamphetamine.

 

Investigation by the Bureau of Alcohol, Tobacco, and Firearms (ATF) along with local authorities revealed that between January 2014 and October 2015, Alvarado, along with Fidel Villafana-Beltran, partnered to source large amounts of methamphetamine and heroin to sell in Southwest Washington and Northwest Oregon.  In June of 2015, agents observed Alvarado entering the Vancouver home of a known drug distributor. After leaving the house with what appeared to be a full backpack, officers attempted to conduct a traffic stop on Alvarado’s vehicle. Rather than stopping, Alvarado eluded at high speeds, cutting through fences, backyards, and side-streets. Along the path of travel, agents found an abandoned backpack containing nearly $15,000, a gun-cleaning kit, and four ounces of pure methamphetamine.  Alvarado was arrested on state charges and was subsequently released on conditions.  At the time of his arrest on federal charges, agents found firearms, a police scanner, drug paraphernalia, and cash.  Even after defendant’s arrest, ATF agents continued searching for the dozens of firearms this investigation linked to Alvarado, and eventually, in January 2016, agents located 45 additional guns ditched in a ravine in Cowlitz County, Washington.  Serial numbers on many of these found firearms matched entries on a handwritten list of guns found in the September 2015 search warrant at Alvarado’s residence.

 

At the sentencing hearing, prosecutors gave examples of defendant’s violent conduct including armed threats to other drug dealers, ramming into a suspected informant’s vehicle, and beating a female co-conspirator in front of other dealers in order to scare them.

 

“This 25-year sentence will keep a prolific violent offender off the streets for years to come and it protects the community from the dangers he posed,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Drug dealers beware. Federal agents and local law enforcement will not stop until the people who flood our streets with poison are prosecuted and convicted.”

 

This case was investigated by the ATF, with assistance from the Multnomah County Sheriff’s Office, the Rainier Police Department, the Clark-Vancouver Drug Task Force and the Cowlitz Wahkiakum Narcotics Task Force.  Assistant U.S. Attorney Leah K. Bolstad prosecuted the case in federal court.

PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, invites all community members to participate in the Drug Enforcement Administration’s (DEA) National Prescription Drug Take Back Day on Saturday, October 28, 2017.  

“DEA’s Drug Take Back Day offers a completely anonymous way to dispose of expired, unused and unwanted prescription medications,” said U.S. Attorney Williams. “We encourage all community members to do their part to combat the opioid abuse epidemic. Unused prescription pain medications stored in your home pose a significant risk of drug addiction for family members and youth. These medications,” continued Williams “are every bit as dangerous as illegal narcotics purchased on the street. Join us in this effort to help stem the tide of abuse in our communities.”

 “Disposing of leftover painkillers or other addictive medicines in the house is one of the best ways to prevent a member of your family from becoming a victim of the opioid epidemic,” said DEA Acting Administrator Robert W. Patterson. “More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the largest rate of overdose deaths this country has ever seen.”

 Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.

 On the April 2017 Take Back Day, a record 12,120 pounds of medications were collected by DEA in Oregon and removed from circulation.

 The public can locate nearby collection sites at www.DEATakeBack.com or by calling 800-882-9539. Only pills and other solids, like patches, can be brought to the collection sites—liquids and needles or other sharps will not be accepted.