District of Oregon

PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, will hold a press conference following the conclusion of Magistrate Court on Friday, October 27. The conference will announce the indictment of Jason Paul Schaefer, and discuss the involvement of the Joint Terrorism Task Force in the successful investigation of the case. Other speakers will include Oregon FBI Special Agent in Charge Loren Cannon and Washington County Sheriff Pat Garrett.

Date

Friday, October 27, 2017

Time

Set up beginning at 2:00PM. Conference will begin between 2:30-2:45PM.

Location

United States Attorney’s Office

Main Conference Room – Sixth Floor Mark O. Hatfield United States Courthouse 1000 SW Third Ave., Suite 600

Portland, OR 97204

Access

All credentialed media are invited to attend and required to display valid photo identification to gain entry into the courthouse and the United States Attorney’s Office.

Please limit attendance to a maximum of three individuals from any one media outlet.

Photo/Video

Credentialed media are invited to use camera and audio equipment during the press conference. Use of camera and audio equipment is otherwise prohibited in the federal courthouse.

Contact

Scott Asphaug

First Assistant United States Attorney

United States Attorney’s Office – District of Oregon scott.asphaug@usdoj.gov | (503) 727-1008

PORTLAND, Ore. – Jason Paul Schaefer, 26, of Portland, Oregon, will appear in federal court before U.S. Magistrate Judge Youlee Yim You today at 1:30 p.m. Schaefer is charged by Criminal Complaint with Assault on a Federal Officer and Using and Carrying an Explosive to

Commit a Federal Felony.

This morning, Judge You ordered that the Criminal Complaint be unsealed. A copy of the Criminal Complaint is attached. Due to the ongoing nature of the criminal proceedings, no additional information will be released at this time.

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

PORTLAND, Ore. – On Thursday, October 19, U.S. Senior District Judge Anna J. Brown sentenced Jose Antonio Mejia, 33, of Woodburn, Oregon, to 15 years in federal prison followed by lifetime supervised release and sex offender registration. Mejia previously plead guilty to a federal Indictment charging him with Transportation of a Minor Across State Lines with the Intent to Engage in Criminal Sexual Activity.

Investigation by the Federal Bureau of Investigation and local authorities revealed that, in March 2016, Mejia transported two minors—including one who was under the age of 12—from Oregon to Washington, without their parents’ permission.  Once there, Mejia attempted to rape the younger minor.  The following day, Mejia returned the minors to their parents and the younger minor subsequently disclosed Mejia’s abuse.  A federal grand jury in Portland indicted Mejia on Attempted Aggravated Sexual Assault and Travel with Intent to Engage in Criminal Sexual Activity.  Following his arrest, Mejia has remained in the custody of the United States Marshals Service. 

At sentencing, prosecutors noted Mejia’s “shockingly heinous” conduct, and urged that it “must be condemned in the strongest possible terms.” Prosecutors noted that Mejia chose a particularly young and vulnerable victim, who he sought to isolate and, having done so, attempted to rape. 

“This sentence represents another step in our continuing efforts to protect children in Oregon and elsewhere from sexual predators. These abhorrent crimes are indefensible and destructive to victims.” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I remain grateful for the dedication and collaboration of our federal, state, and local partners who diligently followed the evidence in this case.” Williams added, “I am also grateful for the amazing courage that the minor victims in this case showed in coming forward.  Thanks to their bravery, a dangerous criminal will remain behind bars for a very long time.”

This case was investigated by the Federal Bureau of Investigation, with assistance from the Salem Police Department, Seattle (Washington) Police Department, and Woodburn Police Department. Assistant U.S. Attorney Ravi Sinha prosecuted the case in federal court.

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 – Today in Washington D.C., Deputy Attorney General Rod Rosenstein, along with United States Attorney for the District of Oregon Billy J. Williams and United States Attorney for the District of North Dakota Christopher C. Myers, announced that Jian Zhang, 38, of China, has been indicted for a series of crimes related to his exportation of fentanyl from China into the United States. The indictment alleges that the fentanyl Zhang shipped from China resulted in multiple drug overdoses across the country, including four overdoses that occurred within the District of Oregon in 2015.

This prosecution is the result of a unique and joint investigation between two United States Attorney Offices and has led to multiple indictments in both districts. In the most recent North Dakota Indictment dated September 20, 2017, Zhang, along with five Canadian citizens, two residents of Florida, and a resident of New Jersey were charged, with among other things, of being involved in a criminal Conspiracy to Distribute Controlled Substances and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death.

"The illegal distribution of fentanyl and related opioids is a true national crisis that has left a trail of death and destruction across the country," stated U.S. Attorney Billy J. Williams. "This case highlights both the international scope of the problem and the willingness and ability of our two districts to work together to reach out across borders to shut down and prosecute these merchants of death – I am proud of the work our team has done."

The investigation started in North Dakota on January 3, 2015, with the fentanyl overdose death of an 18-year old individual in Grand Forks. Investigators subsequently identified the source of the fentanyl as a Darknet distributor operating out of Portland, Oregon. On January 22, 2015, in a coordinated law enforcement mission, a federal search warrant was executed on the fentanyl dealer’s residence in Southeast Portland and he was arrested. After making an initial appearance in Oregon, the dealer, Brandon Corde Hubbard, age 40, was indicted in North Dakota, where he was prosecuted and sentenced to serve life in federal prison.

As a result of this joint effort and prior to the most recent Indictment against Zhang and others, eight additional individuals were indicted in North Dakota and three defendants were indicted in Oregon. So far, 21 individuals from China, Canada, and the United States have been indicted on federal drug charges in both North Dakota and Oregon. The Oregon defendants are:

1. Channing Lacey, 30, Portland, Oregon - Pled guilty on 3/28/17 to one count of Distribution of a Controlled Substance Resulting in Serious Bodily Injury to three individuals and one count of Distribution of a Controlled Substance Resulting in Death. On 8/28/17 she was sentenced to 135 months imprisonment.

2. Carissa Marie Laprall, 25, Portland, Oregon - Pled guilty on 3/28/17 to three counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and is awaiting sentencing.

3. Steven Fairbanks Locke, 41, Portland, Oregon - Pled guilty on 6/14/17 to Use of a Communication Facility to Facilitate a Drug Offense and is awaiting sentencing.

All charges are part of "Operation Denial," an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal

drugs, and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (S.O.D.) near Washington D.C. as part of

"Operation Deadly Merchant." The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations and those primarily responsible for the nation’s illegal drug supply. Prior to his indictment, Zhang was designated as an OCDETF Consolidated Priority Organization Target (CPOT), and is considered by the United States as one of the most significant drug trafficking threats in the world.

This case is being investigated by the Department of Homeland Security - Homeland Security Investigations; Drug Enforcement Administration; United States Postal Inspection Service; Grand Forks Narcotics Task Force; Royal Canadian Mounted Police; Portland Oregon Police Bureau – Drugs and Vice Division; Portland HIDTA Interdiction Task Force; Oregon State Police; Multnomah County Sheriff’s Office; and, the Grand Forks Police Department.

United States Attorney for the District of North Dakota Christopher C. Myers, Assistant U.S. Attorney for the District of Oregon Scott Kerin (who is also acting as a Special Assistant United States Attorney in North Dakota), and Adrienne Rose of the Department of Justice, Narcotics and Dangerous Drugs section, are jointly prosecuting the Zhang case in North Dakota.

## The Indictment in this case is not evidence of guilt. The defendants are presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.

PORTLAND, Ore. – On Monday, October 16, 2017, United States District Judge Ann Aiken sentenced Wayne Eugene Price, 36, to 12 months and one day in prison following his plea of guilty to theft of mail. Judge Aiken ordered Price to serve his federal prison sentence consecutive to the sentence he is serving currently for an unrelated identity theft conviction in Multnomah County Circuit Court.

According to court documents, Price broke the windows of U.S. Postal Service vehicles to steal parcels and the personal belongings of postal carriers in Northeast Portland in December 2015. As part of his plea agreement, Price admitted that he stole packages from an U.S. Postal Service vehicle on December 7, 2015 and admitted that his offenses had more than ten victims. Price has an extensive criminal history in the Portland metro area.

Judge Aiken ordered Price to pay restitution of $5,055.07 to the victims of the offense and to the U.S. Postal Service to repair the vehicle damage.

United States Attorney Billy Williams praised the investigation done by the U.S. Postal Inspection Service, and stated: "This sentence serves notice that we will aggressively pursue anyone who breaks into Postal Service vehicles and of the serious consequences for stealing U.S. Mail."

This case was investigated by the U.S. Postal Inspection Service, and was prosecuted by Quinn Harrington, Assistant United States Attorney for the District of Oregon.

Today, Attorney General Jeff Sessions announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of "Project Safe Neighborhoods," a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.

In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.

In a statement on the program, the Attorney General said:

"According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action.

"Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work.

"Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy.

"Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer."

"The Project Safe Neighborhoods model of local, state and federal law enforcement partners working together to reduce violent crime has been the cornerstone of Oregon’s crime fighting efforts. We look forward to a recommitment of resources and enhanced support towards these efforts which have proved so effective in combatting violent crime" said United States Attorney for the District of Oregon, Billy J. Williams.

The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:

-Additional Assistant United States Attorney Positions to Focus on Violent Crime – The Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.

-More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.

-Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. Under this initiative, OCDETF provides "seed money" to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.

-Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others. To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a "hot line" to connect people to these resources.

-Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts. These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO.

-Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year. Through this program, any firearm submitted for tracing that is associated with a NIBIN "hit" (which means it can be linked to a shooting incident) will be designated an "urgent" trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.

MEDFORD, Ore. – On Thursday, September 14, 2017, United States District Court Judge Michael J. McShane sentenced Troy Allen Wyatt, 44, to 18 months in prison after he pleaded guilty to manufacturing hash oil and endangering human life. Wyatt currently resides in Brookings, Oregon.

According to court documents, Wyatt accidentally started a fire in January 2016 while making hash oil at his home in Medford. The fire started when propane gas ignited during the manufacturing process and resulted in $12,798 in property damage. Wyatt’s 13-year-old daughter was in the home during the fire but was not injured.

Wyatt will remain out of custody pending a voluntary surrender date to be determined by the court. He was ordered to pay restitution to the property owner and an insurance company.

This case was investigated by the U.S. Drug Enforcement Administration (DEA) and the Medford Police Department, and was prosecuted by William "Bud" Fitzgerald, Assistant United States Attorney for the District of Oregon.

PORTLAND, Ore. – On Wednesday, September 6, 2017, United States District Court Judge Marco A. Hernandez sentenced Nicolas Allen Harms, 26, of Gresham, to 96 months in federal prison followed by 3 years of supervised release. Harms had previously pleaded guilty to one count of being a felon in possession of a firearm in violation of 18 U.S.C. §§ 992(g)(1) and 924(a)(2).

According to court documents, in late 2015, Gresham Police Officers received information that Harms was selling heroin. Using a confidential informant, officers conducted a controlled buy of heroin from Harms. On December 8, 2015, officers executed a search warrant on Harms’ hotel room and found approximately 35 grams of heroin, 17 grams of methamphetamine, a loaded .357 revolver, digital scales and drug packaging material. Officers also found 3.5 grams of methamphetamine and $440 in cash on the defendant’s person.

Following the search of the hotel room, officers developed information that Harms possessed a storage unit. A subsequent search of the unit resulted in the recovery of a short-barreled .22 caliber rifle, a shotgun and paperwork and materials related to his drug dealing. Harms was arrested and indicted in federal court. He later admitted to being a felon and illegally possessing the three recovered firearms: an Amadeo Rossi .357 caliber revolver, a Winchester 12 gauge shotgun and a Ruger .22 caliber rifle.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Gresham Police Department and the United States Attorney’s Office for the District of Oregon and was prosecuted by Scott M. Kerin, Assistant United States Attorney for the District of Oregon.

WASHINGTON – On Thursday, September 7, 2017, President Donald J. Trump announced that he has nominated Ryan W. Bounds to serve as a Circuit Judge on the United States Court of Appeals for the Ninth Circuit. If confirmed, Bounds will fill a vacancy created when Circuit Judge Diarmuid O’Scannlain assumed senior status.

Bounds serves as an Assistant United States Attorney for the District of Oregon, where he prosecutes criminal cases involving fraud and environmental crimes on behalf of the United States. Before joining the United States Attorney’s Office in Oregon, Bounds served as a Portland civil litigator; as special assistant to President George W. Bush for justice and immigration policy; as chief of staff and deputy assistant attorney general for the Justice Department’s Office of Legal Policy and as a federal prosecutor in Washington.

"Ryan is eminently qualified to serve as a judge on the Ninth Circuit," said Billy J. Williams, United States Attorney for the District of Oregon. "He is a dedicated public servant and well regarded in the Oregon legal community."

Born and raised in Eastern Oregon, Bounds graduated as the valedictorian of Hermiston High School in 1991. He has a bachelor’s degree from Stanford University and is a graduate of the Yale Law School. Bounds began his legal career in Pioneer Courthouse in Portland, Oregon where he served as a law clerk to Judge O’Scannlain.

PORTLAND, Ore. – On Tuesday, September 5, 2017, United States District Court Judge Michael H. Simon sentenced Wes Edward Hamman, 46, to 115 months in federal prison followed by 3 years of supervised release. Hamman has also been ordered to pay $2,210 in restitution. On January 24, 2017, a federal jury found Hamman guilty of bank robbery in violation of 18 U.S.C. § 2113(a).

According to court documents, on April 20, 2016, Hamman robbed a Key Bank on SE Hawthorne Boulevard in Portland. Wearing a black hat, sunglasses and a surgical mask, Hamman approached the victim teller and demanded cash. The teller gave him $2,210 that included five bait bills and a tracking device. After the robbery, the Portland Police Bureau (PPB) received tracking information that Hamman was in a taxicab near SE 39th Avenue and SE Hawthorne Boulevard. PPB officers stopped the cab and arrested Hamman. Officers recovered a demand note and $2,140 that included all five bait bills and the tracking device.

While awaiting trial, Hamman engaged in two known attempts to escape custody. The first occurred on April 26, 2016 while Hamman was undergoing a medical evaluation at the Oregon Health and Sciences University (OHSU). During the evaluation, the defendant was shackled to a hospital bed. A Multnomah County Sheriff Deputy observed Hamman intentionally spill a cup of coffee onto the ground. When the deputy entered the room, Hamman lurched his body forward and put both hands on the deputy’s handgun. After disengaging from Hamman, the deputy order him to remain on the floor until additional officers arrived.

The second attempt occurred in June 2016, when Hamman mailed a letter to his son asking him to take part in an elaborate escape attempt. In the letter, Hamman proposed that he arrange to be transported back to the hospital where his son, donning a medical disguise and armed with a fake gun, would confront law enforcement officers and aid in his father’s escape. The letter was given to law enforcement officials and nothing became of Hamman’s plot, which would have resulted in a violent confrontation with law enforcement.

Hamman has four prior robbery convictions. In 2001, he was convicted of armed robbery in Nevada after walking into a cigarette store, pointing a firearm at the clerk and demanding money. Hamman was sentenced to 10 years in prison, but released on parole in 2003. In 2008,

Hamman committed three robberies and attempted a fourth in Washington State. He was convicted and sentenced to 87 months in prison.

"This defendant demonstrated a continuous pattern of violent action across three states before his latest arrest here in Oregon," said Billy J. Williams, United States Attorney for the District of Oregon. "His actions caused severe emotional trauma for his victims and endangered the community. I applaud the multi-agency investigative effort," continued U.S. Attorney Williams, "that resulted in the defendant’s swift apprehension and conviction."

"The sentence imposed on the defendant reflects the serious nature of bank robbery," said Loren Cannon, Special Agent in Charge for the FBI in Oregon. "The FBI is proud of the relationship with its law enforcement partners and working together we are able to get violent offenders off of our streets and make our community a safer place for all."

This case was investigated by the FBI, PPB and the United States Attorney’s Office for the District of Oregon and was prosecuted by Scott M. Kerin, Assistant United States Attorney for the District of Oregon.

PORTLAND, Ore. – On Wednesday, August, 30, 2017, Michael Leeper, 41, of Tigard, Oregon, pleaded guilty in United States District Court to intentionally accessing the Columbia Sportswear Company’s network without authorization in violation of 18 U.S.C. § 1030.

From May 2000 to February 2014, Leeper was employed by Columbia and eventually became the company’s Director of Technical Infrastructure in 2012. In March 2014, Leeper resigned from his position with Columbia and began working for an information technology vender. After leaving Columbia, Leeper remotely accessed the company’s network on a continuous basis, accessing and viewing commercially valuable and private information.

Leeper faces a maximum sentence of 10 years in prison, a $250,000 fine and three years of supervised release. His sentencing hearing is scheduled for December 7, 2017 before United States District Court Judge Robert E. Jones.

“As a result of the Columbia Sportswear Company’s cooperation and a thorough investigation by the FBI’s Oregon Cyber Task Force, we have secured an appropriate conviction” said Billy J. Williams, United States Attorney for the District of Oregon. “Unauthorized computer intrusion is a serious crime, and those that unlawfully gain sensitive or proprietary information must be held accountable for their illegal conduct.”

This case was investigated by the FBI’s Oregon Cyber Task Force and prosecuted by Scott E. Bradford, Assistant United States Attorney for the District of Oregon.

PORTLAND, Ore. – On Monday, August 28, 2017, United States District Court Judge Marco A. Hernandez sentenced Channing Lacey, 30, of Portland, to 135 months in prison for distributing fentanyl inside the Multnomah County Jail. The fentanyl use resulted in the death of one inmate and the non-fatal overdoses of three others. Upon her release from prison, Lacey will be on supervised release for three years.

On March 5, 2015, a Homeland Security Investigations (HSI) Special Agent and Portland Police Officers assigned to the High Intensity Drug Trafficking Area (HIDTA) Interdiction Taskforce (HIT) arrested Lacey on allegations that she had been tampering with evidence related to a pending federal case involving her boyfriend who had previously been arrested for distributing fentanyl on the dark web. When Lacey was arrested, she was found in possession of 33 packages of fentanyl, a Schedule II controlled substance, with a net weight of approximately 35 grams. A “typical illegal user” amount of fentanyl is one milligram or less. A single gram of fentanyl can sell for up to $1,000 on the street.

Following her arrest, Lacey was taken to and held in the Multnomah County Jail. Unbeknownst to the jail staff, Lacey had concealed an amount of fentanyl within her body. Deputies later learned that after being brought to the jail, and prior to her initial court appearance on March 6, 2015, Lacey retrieved the fentanyl and distributed it to another inmate. The other inmate in turn distributed the fentanyl to additional inmates. Three inmates overdosed on the fentanyl between March 7 and 9, 2015. All three victims required immediate life-saving medical attention and the administration of Narcan to reverse the overdose and prevent their death. On March 21, 2015, another inmate overdosed on the fentanyl and died as a result.

On March 10, 2015, Lacey was indicted by a federal grand jury for the distribution of a controlled substance resulting in serious bodily injury (Count 1) and possession with the intent to distribute a controlled substance (Count 2), in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C).

On April 15, 2015, a Superseding Indictment was returned by a federal grand jury charging the defendant with distribution of a controlled substance resulting in serious bodily injury to three individuals (Count 1), distribution of a controlled substance resulting in death of another individual (Count 5) and possession with the intent to distribute a controlled substance (Count 6), all in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C).

On March 28, 2017, the defendant pleaded guilty to Count 1 and Count 5 of the Superseding Indictment.

“The illegal distribution of fentanyl and other opioids are carving a deadly path through our country,” said Billy J. Williams, United States Attorney for the District of Oregon. “We continue to work with partners at all levels of government to combat this national crisis and hold these drug dealers accountable. Those who deal in opioids deal in death,” continued U.S. Attorney Williams, “and will face severe consequences for their actions.”

On average, more than 90 Americans die every day from opioid related overdoses.

This case was the result of an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation involving HSI, the Grand Forks Narcotics Task Force and Police Department, Portland Police Bureau Drugs and Vice Division, Portland HIDTA Interdiction Task Force, the Multnomah County Sheriff's Office, and the United States Attorney’s Offices in Oregon and North Dakota. The case was prosecuted by Scott Kerin, Assistant United States Attorney for the District of Oregon.

MEDFORD, Ore. – On Friday, August 4, 2017, a federal jury in Medford convicted Emmanuel Oluwatosin Kazeem, 34, of Bowie, Maryland and Nigeria 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, Kazeem obtained over 125,000 stolen taxpayer identities from throughout the United States for use in a tax fraud scheme. He purchased over 91,000 of those identities from a Vietnamese hacker that originated from an Oregon company’s database. Most of those identities belonged to victims living in Oregon and Washington.

Between 2012 and 2015, the taxpayer identities were used to file fraudulent tax returns. As part of the fraud scheme, Kazeem passed many of the identities to his co-conspirators located in the Atlanta, Georgia area and in Nigeria. He instructed co-conspirators on how to use the stolen personal identifying information to obtain electronic filing PINs from the Internal Revenue Service (IRS) in the taxpayers’ names for use in filing the fraudulent tax returns; create fictitious W-2 wage documents; and acquire and register prepaid debit cards in the taxpayer’s names to receive the fraudulent tax refunds.

Kazeem also used taxpayers’ personally identifiable information to gain unauthorized access into many taxpayers’ IRS transcripts containing sensitive personal financial information. Kazeem and his co-conspirators used the information to E-file federal tax returns as well as state tax returns in Oregon. Over 2,800 fraudulent federal tax returns were linked to Kazeem with attempted refunds totaling in excess of $26 million dollars and actual losses to the U.S. Treasury totaling nearly $7 million dollars. IRS criminal investigators traced over 2,000 wire transfers involving $2.1 million dollars in fraudulent tax refunds wired to Nigeria by Kazeem and his co-conspirators.

Evidence seized from Kazeem’s Maryland residence revealed over $190,000 cash invested in the recent purchase of a newly constructed home; the purchase of a Maryland townhouse for $175,000 cash shortly before his arrest; average monthly personal credit card payments of over $8,300 during a four-year period; and recent negotiations to construct a hotel in Lagos, Nigeria. IRS criminal investigators determined Kazeem had no verifiable income sources during this period.

Kazeem is scheduled to be sentenced in the federal district court in Medford before U.S. District Court Judge Ann Aiken on November 8, 2017.

This case results from a joint investigation by IRS-Criminal Investigation (IRS CI), the U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG) and the FBI. Investigative support was provided by the Treasury Inspector General for Tax Administration (TIGTA); the U.S. Postal Inspection Service (USPIS); the U.S. Department of State; the U.S. Department of Homeland Security, Homeland Security Investigations (DHS HSI) and U.S. Citizenship and Immigration Services (USCIS). The case was prosecuted by Byron Chatfield and Gavin Bruce, Assistant United States Attorneys for the District of Oregon.

EUGENE, Ore. – On Tuesday, August 1, 2017, United States District Court Judge Michael J. McShane sentenced Florentino Ambriz-Banderas, 49, to 140 months in prison for conspiracy to distribute methamphetamine and illegal reentry. Following his prison sentence, Ambriz-Banderas will be on supervised release for 5 years.

On April 7, 2016, a traffic stop in California led to the discovery of 15 pounds of methamphetamine in a vehicle. The driver admitted to transporting the methamphetamine for Ambriz-Banderas, and making multiple similar trips in the past several months. The Drug Enforcement Administration (DEA) and California law enforcement officers transported the vehicle and driver to Springfield, Ore., where Ambriz-Banderas arrived to meet him and was arrested. Ambriz-Banderas had $5,303 on his person and two digital scales with methamphetamine residue at his house.

Ambriz-Banderas has a 2011 federal conviction in Oregon for possession with intent to distribute methamphetamine, and was deported in 2015 after serving his sentence. He subsequently reentered the United States unlawfully prior to being arrested for this offense.

This case was investigated by the DEA, the California Highway Patrol, the Siskiyou Unified Major Investigations Team and the Lane County Interagency Narcotics Team and prosecuted by Jeffrey Sweet, Assistant United States Attorney for the District of Oregon.

EUGENE, Ore. – On Wednesday, July 26, 2017, U.S. District Court Judge Ann Aiken sentenced Jose Alfredo Morales, 34, of Albany, Oregon, to 24 months in federal prison and three years of supervised release. Morales, who managed GNA Supplies, a Federally Licensed Firearms Dealer (FFL) in Albany, Oregon, previously pleaded guilty on May 17, 2017 to one count of unlawful possession of a silencer.

According to court documents, in November 2015, law enforcement conducted an undercover operation wherein they purchased an unregistered silencer from Morales. During the purchase, Morales stated he knew it was illegal to possess and sell unregistered silencers. On November 30, 2015, Albany Police executed a search warrant at GNA Supplies and found additional silencers not registered to Morales in the National Firearms Registration and Transfer Record.

There are approximately 1,700 federal firearms licensees in the District of Oregon actively engaged in the business of acquiring and transferring firearms. Licensees are regulated by Industry Operations Investigators of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Voluntary compliance with federal firearms regulations is critical in protecting communities from violent criminals, criminal organizations and the illegal use and trafficking of firearms.

The case was investigated by ATF and the Albany Police Department, and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon, with the assistance of Michael Wynhausen, Linn County Deputy District Attorney.

EUGENE, Ore. – On Wednesday, July 26, 2017, U.S. District Court Judge Ann Aiken sentenced Michael Ray Emry, 55, of John Day, Oregon, to 30 months in federal prison and three years of supervised release. Emry had previously pleaded guilty on January 23, 2017 to unlawfully possessing a fully automatic .50 caliber machine gun that was not registered to him.

According to court documents and statements made in court, on May 6, 2016, federal agents executed a search warrant on Emry’s trailer in John Day and recovered a Browning M2 .50 caliber machine gun with an obliterated serial number. Emry told agents that the firearm was fully automatic and could fire between 550 and 650 rounds per minute, that he had stolen it from a man in Idaho and that he had removed the serial number prior to bringing it to Oregon.

"I applaud federal and state law enforcement officers for their swift and decisive action in removing a very dangerous stolen weapon from the community," said Billy J. Williams, United States Attorney for the District of Oregon. "Transporting stolen weapons is a serious crime and will be met with equally serious consequences."

"I appreciate the partnership with ATF and OSP in this investigation," said Loren Cannon, Special Agent in Charge of the FBI in Oregon. "The people's representatives pass laws to keep our communities safe. Mr. Emry broke those laws and as a consequence, he will spend time in federal prison."

The case was investigated by the FBI in collaboration with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Oregon State Police (OSP), and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon.

EUGENE, Ore. – On July 25, 2017, United States District Court Judge Ann Aiken sentenced Keith August Wayne Jones, 30, of Madras, Oregon, to 70 months in federal prison for being a felon in possession of a firearm. Upon his release from prison, Jones will be on supervised release for three years.

According to court documents, on April 26, 2016, police officers found Jones in possession of a gun in a Bend motel room. Jones has numerous previous felony convictions, including second-degree robbery, delivery of methamphetamine and fleeing or attempting to elude police.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Bend Police Department. It was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon, with the assistance of Kandy Gies, Deschutes County Deputy District Attorney.

PORTLAND, Ore. – On Monday, July 24, 2017, U.S. District Court Judge Anna J. Brown sentenced Andrew Henry Jacobs, 50, to 24 months in federal prison for wire fraud in an embezzlement scheme and 15 months in prison for filing false tax returns. The sentences arose from a multiyear swindle in which Jacobs stole more than $352,000 from Pacific Seafood Group (PSG) and failed to disclose the proceeds of the crime to the Internal Revenue Service (IRS), thereby evading at least $81,901 in personal income taxes.

Court documents and the parties’ statements at the time of sentencing indicate that Jacobs worked at PSG for more than a decade, ultimately rising to be the Vice President of Employee Leadership and Development at the 2,500-employee family-run firm. PSG fired Jacobs in 2015 after an audit of his expense reports revealed that he repeatedly claimed suspicious and unverified expenses. PSG hired a forensic accounting firm to quantify the scope of the theft. The firm found Jacobs submitted more than $900,000 in dubious expenses in just his final four years with the company. Due to the lack of older records, the accountants could not assess the full scope of Jacobs’s crime.

Where records were available, PSG’s accountants and government investigators confirmed that Jacobs spent hundreds of thousands of dollars on prostitutes, luxury travel, personal electronics, firearms, and gold coins. When confronted by federal investigators, Jacobs admitted both the embezzlement and the tax fraud. He waived indictment, pleaded guilty, and promised to pay restitution of $352,441 to PSG and $81,901 to the IRS. At the sentencing hearing, Judge Brown also ordered Jacobs to pay PSG an additional $126,444.89 to reimburse the company for the cost of retaining the forensic accounting firm.

Summarizing all of the conduct, Judge Brown noted that Jacobs’s long-running criminal conduct was "shameful" but agreed that he posed little risk of committing such offenses again. To minimize that risk, Judge Brown required Jacobs to disclose to future employers that he has been convicted of wire fraud in relation to embezzling from a former employer.

"Mr. Jacobs stole from his employer, his colleagues, and the American taxpayers. The sentences imposed in this case reflect the seriousness of his crimes," noted Billy J. Williams, United States Attorney for the District of Oregon, "and today’s result will serve as an important reminder that the FBI, the IRS, and the United States Attorney’s Office will work with victims to put perpetrators of financial fraud and tax cheats behind bars."

IRS Criminal Investigations (IRS-CI) Special Agent in Charge Darrel J. Waldon said "Mr. Jacobs’ actions victimized not only his employer, but the taxpaying citizens as well, by not paying taxes on the funds he embezzled and converted to personal use. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partners – FBI and DOJ."

Daniel C. Occhipinti, PSG’s General Counsel, represented the company at the sentencing hearing and also commended the outcome: "This was a rogue former employee who committed a crime against our company, our team members and our entire community. We are very grateful to the U.S. Attorney’s Office and the outstanding team at the FBI for seeing that justice was done."

This case was investigated by the FBI and IRS-CI and prosecuted by Ryan W. Bounds, Assistant United States Attorney for the District of Oregon.

EUGENE, Ore. – On Monday, July 17, 2017, Scott Lee Goodright, 63, of Springfield, Ore., was sentenced by United States District Court Judge Michael J. McShane to 22 months in prison for committing two unarmed bank robberies. Upon his release from prison, Goodright will be on supervised release for three years.

According to court documents, during a one-week period beginning September 1, 2015, Goodright committed two bank robberies. The first at a bank in downtown Eugene and the second, a week later, at a bank in Springfield. Surveillance photographs from the second robbery were distributed to the community. An Oregon State Police trooper identified Goodright and arrested him in a motel parking lot. Goodright confessed to both robberies. Police later recovered the disguise he wore during the robberies and most of the stolen cash.

On January 25, 2017, Goodright pleaded guilty to committing both bank robberies.

The case was prosecuted by Frank R. Papagni, Jr., Assistant United States Attorney for the District of Oregon. It was investigated by the FBI and Oregon State Police.

EUGENE, Ore. – On July 11, 2017, United States District Court Judge Ann Aiken sentenced Erik William Johnson, 44, of La Pine, Ore., to two years in federal prison for money laundering.

According to the government’s sentencing memorandum, Johnson defrauded ninety-one eBay customers of over $180,000 in payments for high-end digital cameras he advertised for sale on eBay. The wire fraud scheme occurred over a three-week period in June 2011. Johnson received $189,916.99 in payments but only shipped $5,245 worth of cameras to customers.

The basis of Johnson’s guilty plea to money laundering was his use of proceeds from the eBay scheme to pay for a sport utility vehicle. The defrauded customers received refunds from eBay totaling $103,838.98.

Johnson will remain out of custody until September 2018 to allow him to complete his studies at a local community college. The court ordered him to pay $103,838.98 to eBay and perform 150 hours of community service.

This case was investigated by IRS Criminal Investigation, the FBI and the Deschutes County Sheriff’s Office, and was prosecuted by William "Bud" Fitzgerald, Assistant United States Attorney for the District of Oregon.

PORTLAND, Ore. – On Thursday, June 29, 2017, U.S. District Court Judge Michael H. Simon sentenced David James McHarg, 58, of Beaverton, Ore. to 15 years in federal prison after he pleaded guilty to one count of attempted online enticement of a minor, and one count of receiving child pornography.

This case began when the Washington County Sheriff’s Office received information that McHarg, a previously convicted sex offender, was engaging in inappropriate online communications with adolescent boys. A Washington County Sheriff’s detective received permission to assume the online identity of one of the boys. McHarg engaged in a number of sexually explicit chats with the detective, who he believed was a 15-year-old boy. During the chats, McHarg suggested that the boy travel to Portland during his spring break, and talked about various sexual acts they would engage in together. McHarg was arrested when he traveled to the Portland International Airport to meet what he thought was the boy’s incoming flight.

A search of McHarg’s Facebook account revealed that he had also been communicating online with a 16-year-old boy in Colorado. At McHarg’s request, the boy sent sexually explicit images and videos of himself to McHarg. In addition, investigators learned that in 2006, McHarg took a 17-year-old boy to Jamaica, where they engaged in various sex acts together.

At the sentencing hearing, McHarg apologized profusely and expressed remorse for his conduct. He said, "I don’t want to be this person. This is not who I want to be." He expressed a desire to take advantage of treatment and counseling programs while in prison.

In imposing the sentence, Judge Simon described McHarg as a "good and decent person" who, for reasons that may be beyond his control, caused harm to young persons. Judge Simon was concerned that McHarg might continue to harm children if allowed to remain free and imposed the sentence in part to protect the public.

After completing his prison term, McHarg will be on supervised release for the remainder of his life. He will be subject to strict supervision conditions, including requirements that he participate in mental health and sex offender treatment programs, and limitations to his possession and use of computers, and access to the Internet. McHarg may petition the court to

modify or end his term of supervised release after he has completed at least five years of supervision.

Billy J. Williams, United States Attorney for the District of Oregon, praised the sentence imposed on McHarg. "Judge Simon recognized the serious and repetitive nature of Mr. McHarg’s conduct – particularly since Mr. McHarg had already been convicted once of a sex offense against a minor – and imposed an appropriate sentence," Williams said. "After serving a lengthy term of imprisonment, Mr. McHarg will be under close supervision for the rest of his life. Hopefully, that will help ensure that he never again attempts to exploit or abuse a child," Williams added.

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.

This case was investigated by the Washington County Sheriff’s Office, and prosecuted by Gary Y. Sussman, Assistant United States Attorney and Project Safe Childhood Coordinator for the District of Oregon.

PORTLAND, Ore. – On Friday, June 30, 2017, former online sneaker retailer James Pepion appeared before U.S. Magistrate Judge Stacie F. Beckerman to plead guilty to charges of trafficking in counterfeit goods and money laundering under a plea agreement he negotiated with the United States. The maximum sentence for trafficking in counterfeit goods is 10 years in prison and a fine of up to $2 million (or twice the defendant’s proceeds, whichever is greater). The maximum sentence for money laundering is 20 years in prison and a fine of $500,000 (or twice the value of the property involved in the money-laundering scheme, whichever is greater).

Pepion offered rare Nike sneakers and similar merchandise 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.

Under the terms of Pepion’s plea agreement, he waived indictment by a federal grand jury and agreed to forfeit nearly $200,000 – including $92,000 seized from financial accounts at the same time federal agents executed a search warrant on his home and business in April 2016. The agreement provides that the government shall urge the court to impose a sentence of at least 18 months in federal prison.

“Oregon is at the center of athletic footwear design and technology for consumers around the globe, and Nike is a leader in the field,” said Billy J. Williams, United States Attorney for the District of Oregon. “It is essential to a safe and fair marketplace that consumers can trust that merchandise bearing the trademarks and insignias of respected companies like Nike are actually produced in compliance with those companies’ standards.” U.S. Attorney Williams emphasized that “the U.S. Attorney’s Office and Homeland Security Investigations will continue to work together to identify and prosecute vendors who seek to undermine that trust and to profit unjustly by smuggling and reselling counterfeit goods.”

This case was investigated by special agents of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) and Internal Revenue Service Criminal Investigations (IRS CI) and is being prosecuted by Ryan W. Bounds and Julia Jarrett, Assistant United States Attorneys for the District of Oregon.

EUGENE, Ore. – On Thursday, June 29, 2017, U.S. District Court Judge Michael J. McShane sentenced James Derby Rictor, 43, of Corvallis, Ore., to 80 months in federal prison for possession with intent to distribute methamphetamine.

According to court documents, on May 20, 2016, acting on information Rictor was transporting methamphetamine between Douglas and Benton counties, Douglas County Interagency Narcotics Team detectives stopped his vehicle in Rice Hill, Ore. A police canine alerted to areas in Rictor’s vehicle and trailer where detectives found a cashbox containing methamphetamine and items used to distribute it. When arrested, Rictor was on probation in Benton County for felony theft and failure to appear.

On March 21, 2017, Rictor pleaded guilty to possession with intent to distribute 49 actual grams of methamphetamine.

The case investigated by the Drug Enforcement Administration (DEA), the Douglas County Interagency Narcotics Enforcement Team (INET) and Benton County Sheriff Detective Ed Nowak. It was prosecuted by Frank R. Papagni, Jr., Assistant United States Attorney for the District of Oregon.

PORTLAND, Ore. – On Wednesday, June 28, 2017, U.S. District Judge Michael H. Simon sentenced Kandace Desmarais, 65, and her brother, Gilbert "Mace" Desmarais, 52, to two years in federal prison for their roles in long-running schemes to promote prostitution at 10 Portland-area strip clubs and adult video stores and for conspiring to evade more than $728,000 in federal income taxes by concealing from the Internal Revenue Service (IRS) $2.6 million in income from strip shows and prostitution.

The sentences were handed down just over two months after Judge Simon sentenced Lawrence G. Owen – the defendants’ stepfather and the ringleader of the conspiracies – to 30 months in prison on the same charges. Gary Bryant, a manager of several of the strip clubs in question, pleaded guilty to the same charges in March 2016 and will be sentenced on August 28, 2017.

In imposing the sentences on Kandace and Gilbert Desmarais at the end of today’s 2.5-hour joint-sentencing hearing, Judge Simon rejected the defendant’s pleas for probation. The court emphasized the scope of the family’s tax frauds and illegal prostitution activities, noting that they constituted the largest such schemes in the district in recent years.

The defendants, together with Larry Owen, Gary Bryant, and several other members of the Desmarais family, owned and operated strip clubs called The Landing Strip, Oh! Zone, Sugar Shack, Sugar Shack Too, Peek-A-Boos, Dillingers Pub, Tommy’s, and Tommy’s Too, and adult video stores called Video Visions and Video Visions Plus. Collectively, these businesses had 19 private show rooms on their premises, each furnished with a small couch, a chair, a table, and a stereo. Gilbert Desmarais was personally responsible for overseeing the Landing Strip and the Oh! Zone, which was the site of several such show rooms.

Customers paid at least $160 for half-hour private shows with dancers in the show rooms, and the defendants’ businesses took $60 from each transaction. During many of these private shows, with the defendants’ knowledge and encouragement, the dancers performed acts of prostitution with the customers. From January 2006 through June 2010, strippers (and, on occasion, visiting prostitutes) engaged in tens of thousands of acts of prostitution at these businesses.

The defendants and their coconspirators cheated the IRS out of $728,000 in income taxes by engaging in a complicated scheme to conceal club revenue and their personal income. They established a "cash only" policy at the strip clubs, destroyed daily records of cash receipts, transported the weekly cash receipts to the home of one of the family members, gave their tax return preparer false income numbers, and filed false income tax returns. In these ways, they concealed $2.6 million in revenues from the IRS between 2006 and mid-2010. Kandace Desmarais served as the principal bookkeeper for these clandestine and illicit profits, carefully recording weekly revenues and, when necessary, rebuking store-level managers for failing to adequately record how often the strippers performed shows in the private rooms.

In June 2010, IRS agents and law enforcement personnel from the Portland Police Bureau and the Clackamas County Sheriff’s Office executed federal search warrants at the conspirators’ 10 strip clubs and video stores and at their homes. Officials seized 85 boxes of records and $843,000 in cash. $557,000 of the cash was taken from the residence of Kandace Desmarais and $180,000 from the home of another family member. All funds have been forfeited to the United States pursuant to plea agreements with the U.S. Attorney’s Office.

The conspirators operated two strip clubs and a video store on the Town Plaza property they owned in the Cully neighborhood in northeast Portland. In July 2015, they sold the Town Plaza property to a coalition of nonprofits and neighborhood groups for $2.3 million. Pursuant to plea agreements, the net proceeds of the sale have been placed in escrow to pay the federal income taxes—including penalties and interest—the conspirators still owe to the IRS.

"The two-year sentences for Kandace and Gilbert Desmarais reflect the seriousness of these tax- and prostitution-related crimes," said Billy J. Williams, United States Attorney for the District of Oregon. "The fact that these defendants and their coconspirators were forced to forfeit more than $800,000 in cash and the proceeds of the sale of the Town Plaza to the IRS underscores our ongoing commitment to force criminals to disgorge their illegal profits and to compel tax cheats to pay their fair share," Williams continued. "As always, this office and the IRS will continue to work together to identify and prosecute those who do not."

This case was investigated by Special Agents of the IRS Criminal Investigations with assistance from the Portland Police Bureau and the Clackamas County Sheriff’s Office, and was prosecuted by Seth D. Uram and Ryan W. Bounds, Assistant United States Attorneys for the District of Oregon.

EUGENE, Ore. – On Thursday, June 29, 2017, Jose Manuel Vargas, 38, of Eugene, was sentenced by U.S. District Court Judge Ann Aiken to 10 years in prison for being a felon in possession of a firearm and ammunition.

According to court documents, on January 28, 2014, acting on information that persons were selling heroin and methamphetamine within 1,000 feet of a school, Lane County Interagency Narcotics Team detectives entered a residence and arrested Vargas. Vargas, twice convicted in Oregon for the felony sale of illegal drugs, had a revolver, ammunition and body armor. Vargas was on probation for possessing heroin and providing a false name to police.

On July 20, 2017, Vargas appeared before Judge Aiken, pleading guilty to being a felon in possession of a firearm and ammunition. In 2002, an Oregon judge sentenced Vargas to three years in prison for drug trafficking. Vargas received probationary sentences in 2007 for possessing cocaine and in 2013 for possessing heroin. The Lane County District Attorney prosecuted a second person arrested inside the Eugene residence where Vargas was arrested for possession of heroin and methamphetamine.

The case was prosecuted by Frank R. Papagni, Jr., Assistant United States Attorney for the District of Oregon and investigated by agents of the Bureau of Alcohol, Tobacco and Firearms (ATF), detectives from the Interagency Narcotics Enforcement Team (INET), and Springfield, Ore. Police Sergeant Keith Seanor.

PORTLAND, Ore. – A federal grand jury in Portland has charged W. Joseph Astarita, a member of the FBI’s Hostage Rescue Team (HRT) based in Quantico, Va., with three counts of making false statements and two counts of obstruction of justice. Astarita was one of a number of FBI agents assigned to the armed occupation of the Malheur National Wildlife Refuge and was present during the shooting of Robert LaVoy Finicum on January 26, 2016, in Harney County, Oregon.

The indictment alleges that Astarita knowingly and willfully made false statements to FBI Supervisory Special Agents, knowing that the statements were false and material to the FBI’s decision not to investigate the propriety of an agent-involved shooting. Specifically, Astarita falsely stated he had not fired his weapon during the attempted arrest of Mr. Finicum when he knew he had in fact fired his weapon. Astarita also knowingly engaged in misleading conduct toward Oregon State Police officers by failing to disclose that he had fired two rounds during the attempted arrest.

Astarita was arraigned on June 28, 2017, in Portland. He entered pleas of not guilty to each county and was released pending future appearances.

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

This case was investigated by the Department of Justice Office of the Inspector General in partnership with the United States Attorney’s Office for the District of Oregon.

A copy of the federal indictment is available via the following link.

EUGENE, Ore. – On June 27, 2017, United States District Court Judge Ann Aiken sentenced Andrew Ray Uyeki, 36, of Ontario, Oregon to 57 months in federal prison for unlawful possession of a firearm. Upon his release from prison, Uyeki will be on supervised release for three years.

On October 29, 2015, law enforcement officers searched a home in Ontario and found Uyeki in possession of a 9mm Beretta handgun with a 30-round extended magazine. Uyeki has prior felony convictions for delivery of methamphetamine, theft, conspiracy to commit burglary and escape.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and members of the High Desert Drug Task Force, the Ontario Police Department and the Malheur County Sheriff’s Office, and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon.

PORTLAND, Ore. – The investigation by the United States Attorney’s Office for the District of Oregon, the Justice Department’s Criminal Division, the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation into the alleged misuse of former Governor Kitzhaber’s and Ms. Hayes’s positions for their personal benefit has concluded and no federal criminal charges will be sought. The United States will not comment further on this matter.

EUGENE, Ore. – On May 31, 2017, Ryan Babcock, 35, was sentenced by United States District Court Judge Ann Aiken to 135 months in federal prison for distribution of child pornography. Upon his release from prison, Babcock will have a lifetime of supervised release.

According to court documents, in 2015, Oregon State Police received information that Babcock was distributing child pornography via email. Law enforcement searched Babcock’s residence and found over 600 child pornography images from the internet on his computers and hidden camera recordings taken in Babcock’s bathroom. Babcock had installed the hidden camera and then videotaped two minor females, both under the age of 12, undressing and taking a bath at his house. Babcock is also seen in the video masturbating while washing one girl’s hair. From the video and subsequent investigation, it has been determined that the victims were unaware of what Babcock was doing.

This case was investigated by the Oregon State Police and the Bend Office of the FBI. It was prosecuted by Amy Potter, Assistant United States Attorney for the District of Oregon with assistance from the Crook County District Attorney’s Office.

EUGENE, Ore. – On May 24, 2017, United States District Court Judge Ann Aiken sentenced Braxton Michael Monson, Jr., 31, of Redmond, Oregon, to 80 months in federal prison for being a felon in possession of a firearm. Upon his release from prison, Monson will be on supervised release for three years.

According to court documents, on January 6, 2014, Monson was arrested in Redmond while in possession of an AR-15-style rifle along with ammunition, drugs, scales and cash. Officers determined Monson had previous felony convictions for multiple assaults and unlawful delivery of methamphetamine.

This case was investigated by the FBI and the Redmond Police Department, and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon, with the assistance of Kari Hathorn, Deschutes County Deputy District Attorney.

MEDFORD, Ore. – On Thursday, May 18, 2017, United States District Court Judge Ann Aiken sentenced Oluwatobi Reuben Dehinbo, 32, and Oluwaseunara Temitope Osanyinbi, 36, both from Nigeria and the Atlanta area, to federal prison for conspiracy to commit wire and mail fraud, aggravated identity theft, wire fraud and mail fraud. Dehinbo was sentenced to 108 months and Osanyinbi was sentenced to 72 months. Both defendants are subject to a two-year mandatory minimum for possessing or using a victim’s identity to commit a fraud. Dehinbo and Osanyinbi were ordered to pay $2.7 million and $876,161 in restitution respectively. Having been convicted of aggravated felonies, both defendants will be subject to deportation upon completion of their prison sentences.

The Nature of the Conspiracy

According to court documents, in May 2013, a Medford victim notified the Internal Revenue Service (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 defendants 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. Agents arrested Dehinbo and Osanyinbi while conducting searches in Georgia.

The IRS investigation revealed that the co-conspirators possessed stolen PII from more than 250,000 victims. This included identities from an Oregon company’s database stolen and sold to the co-conspirators by sources in Vietnam. For tax years 2012, 2013, and 2014, the co-conspirators used the information to file nearly 5,500 false federal tax returns seeking over $48 million in fraudulent federal refunds. Actual losses exceeded $12 million.

In carrying out their scheme, the co-conspirators used the stolen PII to acquire electronic filing PINs from the IRS in the taxpayers’ names and use them 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. Those 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 gained access to the IRS "Get Transcript" system where they obtained sensitive taxpayer information and used it to file additional fraudulent returns. In 2015, as a result of these and other security breaches, the IRS discontinued the "Get Transcript" program nationwide.

Osanyinbi’s Role in the Conspiracy

Osanyinbi came to the United States in 2013 on a student visa. Within months, he filed fraudulent tax returns and committed marriage fraud by paying a woman $4,500 to marry him so that he could obtain lawful permanent resident status. He possessed over 35,000 stolen identities in his email and instant messenger accounts, including over 18,500 victims from the database stolen in Oregon. 5,500 of these identities were Oregon residents. Osanyinbi also had more than 190 IRS E-File PINs and 89 routing and account numbers from accounts listed on the fraudulent returns. He was linked to the filing of 251 fraudulent federal tax returns and the wiring of $430,000 to Nigeria. IRS agents seized over $11,000 in money orders from Osanyinbi’s home in Georgia. Before coming to the United States, Osanyinbi was involved in soliciting stolen PII, obtaining and passing stolen credit card information that included victims’ names, addresses and card numbers from the United States and engaging in online scams.

Dehinbo’s Role in the Conspiracy

Dehinbo came to the United States in 2012 on a visa. Beginning in 2013, he began filing fraudulent tax returns and continued until his arrest in May 2015. In addition, he instructed others how to obtain unique E-File PINs; access taxpayer information via the Internet; obtain debit cards in victims’ names and use them to collect fraudulent tax refunds; check the status of an IRS refund; transfer fraudulent refunds off of debit cards and dispose of the funds through wire services. Dehinbo was linked to 419 separate wire transfers totaling $398,297. He possessed over 46,000 stolen identities in his email and instant messenger accounts. These identities included 13,725 from the database stolen in Oregon, 6,270 of whom were Oregon residents. He also possessed more than 3,350 unique IRS E-File PINs and over 600 debit cards. Dehinbo was ultimately linked to the filing of 1,344 fraudulent federal tax returns. Before coming to the United States, he was also involved in locating hackers to obtain stolen credit card information, used and provided credit card information and victim PII to others and engaged in online romance scams posing as a Swedish woman working for UNICEF in Nigeria.

This case results from a joint investigation by IRS-Criminal Investigation (IRS CI), the U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG) and the FBI. Investigative support was provided by the Treasury Inspector General for Tax Administration (TIGTA); the U.S. Postal Inspection Service (USPIS); the U.S. Department of State; the U.S. Department of Homeland Security, Homeland Security Investigations (DHS HSI); U.S. Citizenship and Immigration Services (USCIS) and the Atlanta Police Department. The case is being prosecuted by Byron Chatfield and Gavin Bruce, Assistant United States Attorneys for the District of Oregon.

MEDFORD, Ore. – On May 18, 2017, United States District Court Judge Ann Aiken sentenced Wilson Lee Clow, Jr., 68, of Grants Pass, Oregon, to two years in federal prison for illegal gun sales. Upon his release from prison, Clow will be on supervised release for three years. A federal jury previously found Clow guilty on three counts of selling a firearm to a felon and two counts of making false statements during firearms sales during a three-day trial ending June 29, 2016.

According to court documents, Clow was a Federal Firearms Licensee (FFL) who owned and operated a Grants Pass gun shop called 2nd Amendment Guns. In 2012, he sold high-caliber handguns to a known felon and falsified the paperwork related to the transactions. During these sales, Clow advised the felon that if law enforcement caught him with one of the firearms, the felon should tell the officers he purchased it at a garage sale. Clow also sold firearms from his private collection to avoid federally required paperwork and maintained a list of firearms for other felons who might be interested in purchasing them.

"Federally licensed firearms dealers are expected to be a first line of defense in preventing guns from reaching the hands of criminals," said Billy J. Williams, United States Attorney for the District of Oregon. "This sentence sends a message that gun dealers who violate the law and fail to uphold their duties to the community will be arrested, prosecuted and held accountable for their actions."

"The illicit trafficking of firearms remains ATF's highest national priority," said ATF Seattle Field Division Special Agent in Charge Darek Pleasants. "Mr. Clow's willingness to operate outside the law, despite being a duly-licensed Federal Firearms Licensee, directly put his fellow Americans at risk."

The ATF Seattle Field Division’s area of responsibility includes the District of Oregon.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and was prosecuted by Nathan J. Lichvarcik and Amy Potter, Assistant United States Attorneys for the District of Oregon.

MEDFORD, Ore. – On May 12, 2017, United States District Court Judge Michael J. McShane sentenced John Martin Roos, 62, of Medford, to 63 months in federal prison after he pleaded guilty to possessing an unregistered explosive device and posting Internet threats to kill then-President of the United States Barack Obama and FBI agents. After his release from prison, Roos will be on supervised release for three years.

“Threats of violence directed at public officials and law enforcement are a serious matter” said Billy J. Williams, United States Attorney for the District of Oregon. “Violent social media posts are every bit as serious as those made in other venues. We will continue to vigorously investigate and prosecute similar crimes.”

Roos admitted in court to using racially inflammatory language in a Twitter post in which he threatened to kill former President Obama, former First Lady Michelle Obama and their children. In a Facebook post, Roos threatened to “snipe” FBI agents “with hunting rifles.”

Roos was arrested last April while parking his truck outside a Veterans Administration (VA) facility in White City, Oregon. The arresting agent found a loaded semi-automatic pistol underneath the driver side floor mat. A search of Roos’ apartment uncovered more firearms and several pipe bombs.

Roos told investigators that he was motivated to threaten FBI agents after the fatal shooting of Lavoy Finicum in January 2016 during the highly-publicized occupation of the Malheur National Wildlife Refuge near Burns, Oregon. Roos has remained in custody since his arrest in April 2016.

This case was investigated by the FBI, United States Secret Service, VA Police Service, Oregon State Police, Southern Oregon High Tech Crimes Task Force and Medford Police Department and prosecuted by William “Bud” Fitzgerald, Assistant United States Attorney for the District of Oregon.

MEDFORD, Ore. – On May 12, 2017, United States District Court Judge Michael J. McShane sentenced Michael Lee Souza, 40, of Grants Pass, Oregon, to 15 years in federal prison for being a felon in possession of a firearm. Upon his release from prison, Souza will be on supervised release for three years.

According to court documents, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that Souza was selling methamphetamine and possessed a large number of firearms. On October 15, 2014, a confidential informant working with ATF purchased methamphetamine from Souza. During the transaction, Souza also offered to sell the informant a Glock .45-caliber pistol with accessories.

Later that day, the informant returned to Souza’s Grants Pass residence to purchase the firearm, a nylon holster and two 12-round magazines, one of which was preloaded. Souza talked openly with the informant about collecting guns and recent gun sales. The informant also listened as Souza told a different drug customer that he expected to have more drugs within a couple of hours. Grants Pass Department of Public Safety officers arrested Souza during a traffic stop the following day. During the stop, Souza attempted to conceal a switchblade knife while sitting atop two bags of methamphetamine.

Souza has 13 prior felony convictions and was on probation for delivery of methamphetamine at the time he committed the current firearm offense. His earliest felony conviction occurred in 2003. Souza been on probation or post-prison supervision almost continuously since 2003 except during periods of incarceration. He has seven prior drug offenses including three drug trafficking crimes of manufacturing and delivery of methamphetamine, three prior theft convictions and one conviction for hindering prosecution. He also has two prior convictions involving firearms including a prior felon in possession of a firearm conviction. Souza also has gang affiliation documented by law enforcement.

The case was investigated by ATF, Oregon State Police and the Grants Pass Department of Public Safety and was prosecuted by Judith Harper and Byron Chatfield, Assistant United States Attorneys for the District of Oregon.

PORTLAND, Ore. –A federal grand jury in Portland has charged Mary Holden Ayala, 56, a longtime resident of Portland, with theft of over $800,000, money laundering and filing false personal tax returns. Ayala served as the President and Executive Director of Give Us This Day (GUTD), an Oregon state-licensed private foster care agency and residential program for hard-to-place foster youth, until its closing in September of 2015.

The indictment alleges that between 2009 and 2015, Ayala embezzled at least $800,000 in GUTD funds intended to support foster care services, children and families. In addition to other crimes, the indictment also alleges that Ayala filed false personal income tax returns in tax years 2009 through 2014, and failed to file a personal tax return in 2015.

FBI agents arrested Ayala on May 9, 2017 in Holly Springs, Mississippi. She appeared before a Magistrate Judge in Oxford, Mississippi on May 10, 2017. A separate detention hearing will be held later this week. The government will seek to detain Ayala based on the risk she may fail to voluntarily appear in Oregon if released. Ayala will remain in federal custody pending the outcome of this hearing.

An indictment 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, the Department of Health and Human Services Office of Inspector General and the Internal Revenue Service Criminal Investigations.

A copy of the indictment is included as an attachment to this release.

PORTLAND, Ore. – On May 8, 2017, Alfredo Pena-Lopez, aka Gerionda, 43, was sentenced by United States District Court Judge Marco A. Hernández to 210 months in federal prison for conspiracy to distribute or possess with the intent to distribute 50 grams or more of actual methamphetamine. Upon his release from prison, Pena-Lopez, who was in the United States without lawful authority, will be deported.

For at least five years, Pena-Lopez led a drug trafficking operation responsible for distributing large quantities of methamphetamine and cocaine from sources in California and Mexico to customers in the Salem area. He sold methamphetamine in pound quantities after arranging to bring 5 to 10 pounds into Oregon at a time. Court-authorized wiretaps and surveillance showed that Pena-Lopez stored his methamphetamine in a U-Haul truck parked at an automobile-repair business in Salem operated by one of Pena-Lopez’s seven co-defendants. Pena-Lopez also personally delivered methamphetamine to his customers, including once at a McDonald’s in the Salem area, and once at a Flying J Truck Stop on Interstate 5 near Salem.

At the time of his arrest on federal charges, Pena-Lopez was storing three pounds of methamphetamine, three assault rifles and body armor at the automobile-repair business in Salem, and had $35,000 in cash at his home.

This case was investigated by the Salem office of the Drug Enforcement Administration, with assistance from the Salem Police Department and investigators from the Oregon Department of Justice. The case was prosecuted by Thomas H. Edmonds and Thomas S. Ratcliffe, Assistant United States Attorney for the District of Oregon.

EUGENE, Ore. – On Wednesday, May 3, 2017, United States District Court Judge Ann Aiken sentenced Pamela Jean Gygi, 58, of Westlake, Oregon to ten years in prison followed by three years of supervised release. Gygi pleaded guilty on January 23, 2017 to using interstate commerce facilities in the commission of a murder-for-hire and possession of a firearm in furtherance of a crime of violence.

According to court documents, in May 2015, Gygi attempted to end a property dispute with her divorced husband and collect on his $150,000 life insurance policy by hiring a hitman to murder him. Instead of carrying out the crime, the hitman traveled across state lines to warn the ex-husband of the plot. The ex-husband, in turn, notified police.

Meanwhile, Gygi continued plotting the murder and gathering supplies. On July 10, 2015, she drove to Springfield, Oregon with a pistol, ammunition, cash and a vehicle to be used by the hitman to travel to the ex-husband’s home. An FBI video recording shows Gygi meeting the hitman in a mall parking lot to deliver the supplies and vehicle.

Gygi instructed the hitman to make the murder look as though it were the result of a home invasion robbery and, as part of the deal, told him to steal her ex-husband’s rifle. Gygi left the meeting after confirming that she would secure an alibi witness. She was then stopped by a Springfield police officer and arrested by the FBI.

Judge Aiken commended the FBI and the United States Attorney’s Office for the investigation and prosecution, and stated that Gygi’s offenses required a severe sentence to deter those involved in domestic disputes from resorting to violence.

The case was prosecuted by Frank R. Papagni, Jr., Assistant United States Attorney for the District of Oregon, and investigated by the FBI and the Springfield, Oregon, and Saratoga Springs, Utah Police Departments.

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, April 29, 2017.

“DEA’s Drug Take Back Day offers a completely anonymous way to dispose of unused 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.”

“This is the 13th DEA National Drug Take Back event and is an opportunity to save lives by cleaning out medicine cabinets,” said DEA Assistant Special Agent in Charge Cam Strahm. “Last October, Oregonians turned in four tons of unused medications and this Saturday, April 29th, we hope to surpass that number and drive down the growing opioid crisis. You can find a site near you at www.dea.gov.”

On average, three Oregonians die every week from prescription opioid overdose. The prescription drug overdose rate in Oregon was 2.8 times higher in 2013 than in 2000. Between 2012 and 2013, an estimated 212,000 Oregonians self-reported using prescription painkillers for non-medical purposes. Opioid-related overdose death rates in Oregon vary by race/ethnicity with the highest rates occurring among American Indians and Alaska Natives.

On the October 2016 Take Back Day, the DEA collected over 731,000 pounds of unwanted prescription medications turned in by the public at more than 5,000 collection sites nationwide. Over the life of the take back program, citizens around the country have removed more than 7.1 million pounds of prescription drugs from their homes.

Unused medications stored in the home pose a significant threat of abuse. In 2015, nearly 4 million people who abused prescription painkillers say they obtained the drugs from family members or friends. It is well documented that abusing prescription painkillers can lead to abuse of illegal narcotics. Statistics show that four out of five new heroin users began their drug abuse by taking prescription painkillers. According to the Centers for Disease Control and Prevention, in 2014 alone, nearly 30,000 people died from overdosing on prescription painkillers or heroin.

To locate a drug collection site near you, please visit www.dea.gov and click on the “Got Drugs?” icon or call 1-800-882-9529.

A Portland, Oregon resident was sentenced to serve 24 months in prison for aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Billy Williams for the District of Oregon.

According to documents filed with the court, Roychelle Brown, 45, stole personal identifying information of homeless individuals and veterans from her employer, Central City Concern, a non-profit organization dedicated to helping fight homelessness and joblessness for residents of Portland, Oregon. Brown collected information related to individuals she believed had died and provided it to her sister, Tataneisha White, to use in filing fraudulent returns. White was sentenced to serve 37 months in prison in October 2015.

In addition to the term of prison imposed, Brown was ordered to serve one year of supervised release and to pay $2,000 in restitution to Central City Concern, to reimburse the organization for costs it incurred as a result of Brown’s identity theft. Brown previously pleaded guilty in December 2016.

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Williams commended special agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Trial Attorney Lori A. Hendrickson and former Trial Attorney Ryan Raybould of the Tax Division, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

PORTLAND, Ore. – On April 12, 2017, Gregory Allen Rathkey, 38, was sentenced by U.S. District Court Judge Michael W. Mosman to 39 months in federal prison for conspiracy to steal mail, possession of a counterfeit postal service "arrow" key, unauthorized use of a credit card and aggravated identity theft. Upon his release from prison, Rathkey will be on supervised release for three years.

Beginning in November 2015 and continuing until April 1, 2016, Rathkey and others engaged in a conspiracy to steal over 100 pieces of mail, including credit cards, checks and packages delivered to 77 victims in the greater Portland area. Rathkey used counterfeit postal arrow keys and other tools to access locked mailboxes in various neighborhoods. He then activated victims’ credit cards stolen from the mail and used them to purchase goods, gift cards and other preloaded debit cards.

This case was investigated by the United States Postal Inspection Service and was prosecuted Quinn P. Harrington, Assistant United States Attorney for the District of Oregon.

PORTLAND, Ore. – In response to an increase in perceived hate-related activity across the Portland Metro Area, the United States Attorney’s Office, along with law enforcement partners from across the state, encourage anyone with information about hate-related activity to contact their local law enforcement agency and the FBI.

If you are concerned about your safety, please call 9-1-1 immediately.

Recent reports of hate-related activity in our state are deeply concerning to members of our law enforcement community. Beyond local reports, Oregonians have likely seen an increase in news reports and social media posts about alleged hate crimes and harassment across the country. These reports have caused many in our community to fear for their own or their loved ones’ safety.

“The United States Attorney’s Office, with our local, state, and federal law enforcement partners, wants to reassure community members that we are united in our efforts to combat hate crimes in any form and to repudiate the targeting of individuals because of their actual or perceived race, color, religion, national origin, disability, sexual orientation, gender or gender identity” said Billy J. Williams, United States Attorney for the District of Oregon. “We remain committed to vigorously investigating and prosecuting all hate crimes.”

“We must stand together against hate because all Oregonians deserve to feel safe in our communities," said Oregon Attorney General Ellen Rosenblum. "A hate crime occurs when somebody intentionally subjects another to offensive physical contact, physical injury, or damage to another person’s property based on their race, color, religion, sexual orientation, gender identity or national origin. Fortunately, in Oregon we have laws that protect us from these hateful acts.”

“Everyone has a right to live, work and worship freely and without fear,” said Loren Cannon, Special Agent in Charge of the FBI in Oregon. “When someone commits a crime of violence against you because of your race, religion, national origin, sexual orientation, disability, gender or gender identity, the FBI will stand with you to make sure our shared community is both safe and just.”

Victims and witnesses of crime are not responsible for determining whether an action rises to the level of a hate crime. Law enforcement personnel in Oregon encourage over-reporting. Links to Oregon police departments and county sheriffs’ offices are listed below:

• List of Oregon Police Departments

• List of Oregon County Sheriffs’ Offices

For crimes committed in Oregon, the FBI Portland Division can be reached at (503) 224-4181. A list of all local FBI offices is available at: https://www.fbi.gov/contact-us/field-offices. Reports to the FBI can also be submitted online from any state via: https://tips.fbi.gov.

Additionally, the Oregon Department of Justice collects reports of hate crimes to ensure these are passed on to the appropriate authority for investigation via the following web form: https://justice.oregon.gov/crimereporting/hatecrime.

If you have questions about your rights or the hate crime reporting process, please contact any of the following law enforcement agencies:

• United States Attorney’s Office – District of Oregon: (503) 727-1000
• Oregon Department of Justice: (503) 378-4400
• FBI - Portland Division: (503) 224-4181

MEDFORD, Ore. – On April 13, 2017, Anthony Benjamin Still, 41, of Grants Pass, Oregon was sentenced by U.S. District Court Judge Ann Aiken to 60 months in federal prison for unlawful possession of firearms. Upon his release from prison, Still will be on supervised release for three years.

On December 12, 2014, law enforcement officers searched Still’s residence in Grants Pass and found three firearms (including an AR-15-style rifle and a .223 caliber semi-automatic pistol with four loaded high-capacity magazines), over 900 rounds of ammunition, 84 pounds of marijuana, $5,000 in cash and drug notes. Officers determined Still was a felon with prior convictions for second degree burglary, unlawful delivery of marijuana and grand theft of a motor vehicle.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Rogue Area Drug Enforcement team, and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon.

PORTLAND, Ore. – On Wednesday, April 12, 2017, U.S. District Court Judge Michael H. Simon sentenced Lawrence G. Owen, 75, to 30 months in federal prison. The sentence immediately followed Owen’s guilty plea for promoting prostitution at ten Portland-area strip clubs and adult video stores and for conspiring to defraud the Internal Revenue Service (IRS) by concealing $2.6 million in income and evading $728,000 in income taxes owed.

Court documents show that Owen and several family members owned and operated eight strip clubs and two adult video stores. Collectively, these businesses had nineteen private show rooms where customers would pay for private shows with dancers and, with Owen’s knowledge and encouragement, engage in acts of prostitution. From January 2006 through June 2010, dancers engaged in tens of thousands of acts of prostitution at these businesses.

Using a complicated scheme to conceal business revenues and personal income, Owen and his family members cheated the IRS out of $728,000 in income taxes. They established a cash-only policy at area clubs, destroyed daily records of cash receipts, and gave their tax preparer false income numbers. Over a five-year period, Owen and his family concealed $2.6 million in revenue from the IRS by falsifying tax returns or failing to file returns altogether.

"Mr. Owen and his co-conspirators profited from the promotion of prostitution at numerous clubs around Portland. These clubs – and Mr. Owen’s actions – were a blight on the neighborhoods in which they operated," said Billy J. Williams, United States Attorney for the District of Oregon. "Moreover, as a business owner, Mr. Owen had a legal obligation to pay his fair share of taxes. The U.S. Attorney’s Office and the IRS will continue to work together to identify and prosecute business owners and individuals who fail to uphold their legal duty as taxpayers."

In June 2010, IRS agents and local law enforcement executed federal search warrants at the ten area businesses and the conspirators’ homes. Eighty-five boxes of records and $843,000 was seized at the businesses and residences. All seized cash has been forfeited to the United States pursuant to plea agreements with the United States Attorney’s Office. Also pursuant to plea agreements, the net proceeds from a $2.3 million sale of a property in Northeast Portland was placed in trust to pay taxes, penalties, and interest owed to the IRS.

Two of the Owen’s adult stepchildren, Gilbert and Kandace Desmarais, and a manager of several of the strip clubs, Gary Bryant, pleaded guilty to the same charges in May 2015 and March 2016, respectively. All are scheduled to be sentenced in June 2017.

This case was investigated by IRS Criminal Investigations with assistance from the Portland Police Bureau and the Clackamas County Sheriff’s Office, and was prosecuted by Seth D. Uram and Ryan W. Bounds, Assistant United States Attorney’s for the District of Oregon.

PORTLAND, Ore. – On Thursday, April 6, 2017, a federal jury found a Lebanon, Ore. woman guilty of wire fraud and theft. Jamie Faye Cobat, 52, was convicted of stealing approximately $29,000 in welfare benefits by making false claims about her household composition and resources.

Federal and state agents began investigating Cobat in 2014 after social workers received allegations that Cobat’s teenage son could no longer live with her because she was living with a convicted sex offender. Further investigation determined that Cobat told the Social Security Administration (SSA) and the Oregon Department of Human Services (Oregon DHS) that her son was living her, which enabled her to receive Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance to Needy Families (TANF) benefits. In fact, her son had not lived with her for more than two years.

According to court records and trial testimony, Cobat began living with her partner at his home in Lebanon in August 2012 after his release from prison. At that time, Cobat’s son went to live with his father due to the partner’s post-prison supervision conditions prohibiting his contact with minors. In August 2014, Cobat and her partner married. Between August 2012 and November 2014, Cobat made repeated false statements to SSA and Oregon DHS that her son was living with her, that she and her husband did not live together and that she was not married. As a result, she received $19,247 in SSI, $5,825 in SNAP (commonly referred to as food stamps), and $2,845 in TANF benefits.

Cobat will be sentenced on July 13, 2017 before United States District Court Judge Michael W. Mosman.

The case was investigated by the SSA Office of Inspector General and Oregon DHS, and prosecuted by Helen Cooper and Gavin Bruce, Assistant United States Attorneys for the District of Oregon.

PORTLAND, Ore. – On Tuesday, April 4, 2017, United States District Court Judge Robert E. Jones sentenced Anthony C. Neal to one year and one day in federal prison followed by three years of supervised release. Neal pleaded guilty in July 2016 to engaging in a seven-year health care fraud scheme and conspiring to defraud the Internal Revenue Service (IRS). Neal was also ordered to pay $1,702,567 in restitution to Medicare, Care Oregon and several private health insurance companies and $817,378 to the IRS.

Court documents show that the defendant and his deceased father, Dr. Dean Neal, operated 20/20 Eye Care, an ophthalmology practice in Gresham, Oregon. The defendant ran the practice’s day-to-day business operations, including its public and private health insurance billings. From 2007 through November 2013, the defendant and Dr. Neal routinely subjected many of their patients to medically unnecessary diagnostic tests and fraudulently billed insurance plans for these services. In addition, the defendant and his father fraudulently submitted bills for higher-cost tests when patients were actually receiving lower-cost tests. The two then fraudulently double-billed various insurance plans.

The defendant and Dr. Neal also defrauded the IRS of $817,378 in income taxes from 2009 through 2014 by engaging in a complicated scheme to conceal business revenue and personal income using a straw company. The defendant and his father transferred most of 20/20 Eye Care’s revenue to the straw company and used it to pay for nearly $3 million in personal expenses, willfully failing to report any of this revenue to the IRS. These personal expenses included the partial construction of a multi-million dollar home for the defendant and his wife. The defendant and his father’s failure to file tax returns for 20/20 Eye Care or their straw company resulted in their concealing of nearly $8 million in business revenue from the IRS.

"Health insurance fraud drives up the cost of medical care for honest, hardworking Americans and illegally enriches those who take advantage of a system designed to help people address their personal medical needs," said Billy J. Williams, United States Attorney for the District of Oregon. "This is why the United States Attorney’s Office, the FBI, and the Department of Health and Human Services Office of Inspector General make it a priority to investigate and prosecute these cases. Moreover, all business owners have a legal obligation to pay their fair share of taxes," continued U.S. Attorney Williams. "We will continue to partner with the IRS to identify and prosecute those who do not."

"This time of year, when most Americans are fulfilling their lawful obligation to timely file an accurate tax return, cases like Anthony Neal’s serve as a vivid reminder of the potential consequences of allowing greed to silence duty" said Darrell Walton, Special Agent in Charge of IRS Criminal Investigation. "IRS Special Agents stand at the ready to enforce the law and make sure there is a level playing field for everyone."

This case was investigated by the FBI, the Department of Health and Human Services Office of Inspector General, IRS Criminal Investigations and the Oregon Department of Justice Medicaid Fraud Unit, and prosecuted by Seth D. Uram and Donna Brecker Maddux, Assistant United States Attorneys for the District of Oregon.

PORTLAND, Ore. – On Thursday, March 30, 2017, United States District Court Judge Marco A. Hernández sentenced Kilunnun Adyden Chivoski, 41, to 25 years in federal prison followed by a lifetime of supervised release and sex offender registration. In September 2016, a federal jury in Portland convicted Chivoski of one count of transporting a minor across state lines with the intent to engage in criminal sexual activity.

Evidence presented during the ten-day trial showed Chivoski engaged in the repeated, systematic sexual abuse of two children that he had taken steps to isolate and indoctrinate over a yearlong period. Chivoski’s crimes were discovered years later when his victims began disclosing the abuse. Investigators meticulously pieced together Chivoski’s extensive cross-country travel, seeking to establish locations where he committed the abusive acts.

Though the intervening years and Chivoski’s itinerant lifestyle presented difficulties for the prosecution, the government successfully presented evidence that he had sexually abused the children during a cross-country road trip terminating in Oregon in August 2010. Evidence further established that one of Chivoski’s dominant, significant, and/or motivating purposes for that trip was to facilitate his continued sexual abuse of one of the minors.

At sentencing, prosecutors urged the court to impose a thirty-year prison term, followed by lifetime supervised release and sex offender registration. Chivoski’s conduct, they argued, was "shockingly heinous," as he sought to isolate and brainwash his pre-teen victims to avoid detection and continue his abuse. In response, Chivoski sought the mandatory minimum sentence of ten years in prison.

"This sentence will protect children in Oregon and elsewhere from a sexual predator whose egregious crimes will have a lifelong impact on his victims," said Billy J. Williams, United States Attorney for the District of Oregon. "I am grateful for the dedication and collaboration of our federal, state, and local partners who diligently followed the evidence in this case as part of their continuing effort to protect children in our district. I am also grateful for the amazing bravery that Chivoski’s victims showed," added U.S. Attorney Williams, "in coming forward to seek justice. Thanks to their courage, our community is safer and a dangerous criminal is behind bars."

In imposing the twenty-five-year prison sentence, Judge Hernandez remarked, "it is always troubling to the court when you think about parents abusing their own children and while

Mr. Chivoski’s own paranoia and mental challenges contributed to his actions, it doesn’t make his children any less of victims. He needs to be held responsible for this abuse."

This case was investigated by the Clackamas County Sheriff’s Office and the Department of Homeland Security’s Homeland Security Investigations (HSI) and prosecuted by Jane Shoemaker and Ravi Sinha, Assistant United States Attorneys 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.

PORTLAND, Ore. – On Monday, March 27, 2017, Jamie Lee Jones, 45, a former resident of Nevada, was sentenced to twelve years in federal prison by U.S. District Court Judge Michael H. Simon. Jones had previously pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. Jones was living in Seaside, Oregon in early February 2016 during the time of the alleged offenses.

Jones’s federal charges stemmed from a multi-agency investigation tracing the firearm used in the February 5, 2016 homicide of Seaside Police Sergeant Jason Goodding. On the evening of February 5, Seaside resident Phil Ferry shot and killed Sergeant Goodding using a .380 caliber Davis P380 pistol. During the shootout, another Seaside officer shot and killed Ferry. ATF agents worked with local law enforcement officers to investigate how Ferry had obtained the .380 caliber pistol. Their investigation ultimately led to Jones.

"The tragic and senseless death of Sergeant Gooding underscores the very real danger law enforcement officers face every day while faithfully serving their communities," said Billy J. Williams, United States Attorney for the District of Oregon. "We owe a tremendous debt of gratitude to Sergeant Goodding for his service and his loved ones for their incredible sacrifice. It is maddening to know that criminals involved in drug trafficking and the illegal possession of firearms continue to present a danger to our communities. I want to thank ATF and the local law enforcement agencies who pursued this investigation," continued U.S. Attorney Williams. "We will continue to work with our local, state, tribal and federal law enforcement partners to identify the most effective legal venue (federal or state) to ensure an appropriate penalty for these types of offenders. It is our sincere hope that this sentence will offer some measure of justice – albeit small – to Sergeant Goodding’s family and the Seaside community."

"The murder of Sgt. Goodding was a tragedy. ATF is proud to have been able to work alongside our partner agencies to identify and bring Jamie Lee Jones to justice," said ATF Seattle Field Division Special Agent in Charge Darek Pleasants. "The men and women of ATF work tirelessly to rid our communities of the scourge of violence and those criminals like Jamie Lee Jones, whose lawless actions contributed to the death of a law enforcement officer."

Interviews with informants and tips from the Seaside community indicated that Ferry stole one of two firearms Jones possessed while he was asleep at a local drug house. Jones was furious when he woke to discover that someone had stolen one of his firearms and his methamphetamine. Jones then punched a nearby drug customer, fired his second firearm in the direction of several other residents and warned them not to talk to police. Neighbors called police to report the shots fired, but all the guests and residents had fled prior to their arrival.

Investigators obtained search warrants for Jones’s Seaside apartment and vehicle and seized distribution quantities of methamphetamine, a digital scale, packaging material and two cell phones. Jones admitted he knew Ferry, and that he and Ferry had a disagreement about Ferry’s owing Jones a drug debt. Later, investigators obtained a search warrant to examine Jones’s phones where they found messages related to drug trafficking and sales.

In a message dated February 3, 2016, a customer advised Jones, "I’ll be by at five thirty with the pistol. Erase this text." Investigators identified this customer and interviewed him regarding the transfer of a firearm to Jones. The customer admitted to being a heroin addict and to purchasing small quantities of heroin from Jones. The customer explained that on February 3, 2016, while desperately ill from heroin withdrawal, he agreed to trade a .357 caliber revolver with Jones for less than a gram of heroin.

In light of Jones’s violent conviction history dating back to the early 1990s and his use of violence to traffic drugs, including discharging a firearm at and toward witnesses, the government urged the court to impose a 12-year sentence. According to the prosecutor, "Drug trafficking is a very dangerous business to those who choose to engage in it and, as this case illustrates, can have devastating consequences to many others, even those who devote their lives to protecting our communities."

Multiple agencies participated in the investigation of this case, including the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Clatsop County Sheriff’s Office, Major Crimes Team, and District Attorney’s Office; the Cannon Beach, Seaside, and Astoria Police Departments; the Oregon State Police, and the United States Attorney’s Office for the District of Oregon.

The case was prosecuted by Leah K. Bolstad, Assistant United States Attorney for the District of Oregon.

PORTLAND, Ore. – A federal judge today delivered verdicts against four defendants charged with misdemeanor trespassing; tampering with government vehicles and equipment; and destruction and removal of government property during the 41-day armed occupation of the Malheur National Wildlife Refuge.

United States District Court Judge Anna J. Brown found Jason Patrick, Darryl Thorn, Duane Ehmer, and Jake Ryan guilty of trespassing and tampering with vehicles and equipment. Additionally, Jason Patrick was found guilty of destruction and removal of property.

All four defendants were previously found guilty of felonies in a jury trial ending March 10, 2017. Felony convictions ranged from conspiracy to impede officers of the United States by force, threats, or intimidation to possession of firearms on a federal facility and depredation of government property.

Beginning on January 2, 2016, Ammon Bundy, Ryan Bundy, and several dozen followers, seized the Malheur National Wildlife Refuge near Burns, Oregon in Harney County. For forty-one days, the armed occupiers prevented federal officials from performing their official duties at the refuge by force, threats, and intimidation. The Bundys and several other occupiers, were arrested on January 26, 2016 on U.S. Highway 395 near Burns en route to a community meeting in John Day. The occupation officially ended on February 11, 2016 when the last four occupiers turned themselves in to federal authorities.

The case was investigated by the FBI and prosecuted by Geoffrey Barrow and Ethan Knight, Assistant United States Attorneys for the District of Oregon.

MEDFORD, Ore. – On Thursday, March 16, 2017, U.S. District Judge Michael J. McShane sentenced Gerald Thomas Schram, 65, of Medford, to 130 months in prison for bank robbery and interference with commerce by robbery. Following his prison sentence, Schram will be on supervised release for three years. Schram was also ordered to pay $9,177 in restitution.

On January 20, 2014, Schram robbed a Minute Market in Medford, Oregon. Wearing a mask and hooded sweatshirt, Schram shouted at the clerks and threatened to pull a gun while reaching for his waistband. Schram fled the scene with $605.

On September 29, 2014, Schram robbed a U.S. Bank in Medford, Oregon, fleeing on a bicycle with $8,572. The same day, he was found hiding in his girlfriend’s home with most of the stolen money. Schram was arrested and, based in part on DNA found at the Minute Market, charged in federal court with both robberies.

Following a jury trial on September 27, 2016, Schram was convicted of the Minute Market robbery. He later pleaded guilty to the U.S. Bank robbery. Schram has seven prior felony convictions in California and Oregon between 1970 and 2014. He has served two prior federal prison sentences of 170 and 37 months for separate bank robbery and robbery convictions.

This case was investigated by the Medford Police Department and the FBI’s Medford Resident Agency Office and prosecuted by Jeffrey Sweet, Assistant United States Attorney for the District of Oregon.

EUGENE, Ore. – On Monday, March 13, 2017, Greyson Scott Lindenfelser, 29, of Roseburg, Oregon, was sentenced by U.S. District Court Judge Michael J. McShane to 20 years in federal prison for being a felon in possession of a stolen firearm and distributing more than 600 grams of methamphetamine.

On September 16, 2014, Deputy U.S. Marshals, along with Lane and Douglas County Interagency Narcotics Enforcement Team (INET) detectives, arrested Lindenfelser at a motel in Creswell, Oregon. The marshals and detectives found $12,653 on Lindenfelser’s person and more than 600 grams of methamphetamine and a loaded .45 caliber pistol in his motel room.

According to court documents, Lindenfelser was previously arrested by Douglas County Sheriff Deputies in June of 2014 for delivering several pounds of methamphetamine and hydrocodone pills. After being released, warrants for his arrest were issued in July of 2014 for robbery, kidnapping and unlawful use of weapons. In August of 2014, after leading Benton County Sheriff Deputies on a high-speed chase, Lindenfelser crashed his vehicle and managed to avoid arrest, leaving behind two pounds of methamphetamine and a loaded .40 caliber pistol in the vehicle.

Lindenfelser has eight prior felony convictions including robbery and illegally possessing drugs and firearms. On January 6, 2017, Lindenfelser pleaded guilty in Douglas County Circuit Court to first-degree robbery and was sentenced to 7 ½ years in state prison. Lindenfelser will serve his state and federal prison sentences concurrently.

The case was investigated by the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshals Service, and the Douglas, Lane, and Benton County Sheriff’s Offices. It was prosecuted by Frank R. Papagni, Jr., Assistant United States Attorney for the District of Oregon with assistance from Benton County District Attorney John M. Haroldson and Douglas County District Attorney Rick Wesenberg.