District of Oregon

EUGENE, Ore. – On Wednesday, March 15, 2017, the United States Attorney’s Office for the District of Oregon announced that a federal grand jury in Eugene has indicted Nicholas Earle Russell, 67, of Albany, Oregon. Russell is the owner and operator of a gun store called Albany Guns, Coins and Jewelry.

The four-count indictment alleges that from November 19, 2016 to January 25, 2017, Russell sold high-caliber firearms, including a .50 caliber handgun and .223 and .308 caliber rifles, to an individual Russell knew was a convicted felon. Each charge carries a maximum term of imprisonment of ten years and a fine of up to $250,000.

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

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

PORTLAND, Ore. – On Friday, March 10, 2017, Billy J. Williams, United States Attorney for the District of Oregon, delivered the following statement on the verdict announcement in U.S. v. Bundy et al.

 

Remarks as prepared for delivery.

 

Good Afternoon. My name is Billy J. Williams, United States Attorney for the District of Oregon.

 

After approximately 21 hours over 3 days, a federal jury here in Portland returned its verdicts against Jason Patrick, Duane Ehmer, Darryl Thorn, and Jake Ryan all of whom were active participants in the 41-day armed occupation of the Malheur National Wildlife Refuge that took place near Burns, Oregon beginning in January of last year.

 

Jason Patrick was found guilty of conspiracy to impede officers of the United States.

 

Darryl Thorn was found guilty of conspiracy to impede officers of the United States and possession of firearms and dangerous weapons in federal facilities.

 

Duane Ehmer and Jake Ryan were both found guilty of depredation of government property.

 

Sentencing is scheduled for Wednesday, May 10, 2017 here in Portland.

 

Freedom of speech and expression are core values and rights that I and others have sworn to protect and uphold. In this case, the defendants were not on trial for their beliefs, but rather for their conduct.

 

Taking up arms and occupying federal lands and property that interferes with federal employees discharging their duties is and will continue to be illegal. We cannot have people taking over government offices and facilities at the end of a gun and expect no consequences.

 

The jury has spoken. Their verdicts speak to their view of the evidence. I respect the American judicial process and remain convinced it is the best system in the world.

 

For forty-one days early last year, these individuals prevented U.S. Fish and Wildlife Service and Bureau of Land Management employees from doing their jobs as stewards of land belonging to all Americans.

 

They purposefully interfered with the daily lives of residents of Burns, Hines, Harney County, and members of the Burns Paiute Tribe. The negative impacts of their actions continue to this day.

 

Our communities and state are stronger because of our joint effort to bring these individuals to justice. The rule of law matters.

 

Taking up arms because you do not like how things are done can never be accepted as a lawful way to protest. The good people in rural Oregon who are ranchers, loggers, farmers, and small business owners understand the difference between disagreeing with land management policies and working together to bring about change versus outsiders with a political agenda taking over property with guns and claims of being patriotic. A voice for change and one’s vote are more effective than threats and an AR-15.

 

I would like to begin by thanking the residents of Burns, Hines, and Harney County, Oregon, members of the Burns Paiute Tribe, and others who were victimized by the actions of these individuals. Your patience with and commitment to both trials was a motivation to everyone involved in the investigation and prosecution of this case.

 

I would like to thank Harney County Sheriff Dave Ward, Oregon State Police, the Oregon Sheriff’s Association, and the countless local and tribal law enforcement personnel from around the State of Oregon that worked tirelessly to bring about a peaceful resolution to the standoff.

 

I would like to thank the employees of the United States Fish and Wildlife Service, United States Forest Service, and Bureau of Land Management for their courage and determination to continue serving our country in various capacities despite having their workplaces temporarily taken from them and despite having to dedicate countless staff hours in support of these trials.

 

I would like to thank the FBI for their outstanding investigative support through every phase of this process. Their professionalism and commitment were essential in bringing about a successful resolution to the trial.

 

And finally, I would like to thank our trial attorneys and staff at the United States Attorney’s Office for their hard work and commitment to bringing these defendants to justice. The process of prosecuting these individuals required an extraordinary level of effort and unflappable commitment on behalf staff at all levels. I am very proud and thankful for their tremendous effort.

PORTLAND, Ore. – A federal jury today delivered its verdicts against four defendants charged with conspiracy, possession of firearms on federal property, and depredation of government property during the 41-day armed occupation of the Malheur National Wildlife Refuge.

 

Jurors found Jason Patrick guilty of conspiracy to impede officers of the United States and not guilty of possession of firearms and dangerous weapons in a federal facility. Darryl Thorn was found guilty of conspiracy to impede officers of the United States and possession of firearms and dangerous weapons in a federal facility. Duane Ehmer was found not guilty of conspiracy to impede officers of the United States and guilty of depredation of government property. Finally, Jake Ryan was found not guilty of conspiracy to impede officers of the United States and possession of firearms and dangerous weapons in a federal facility and guilty of depredation of government property.

 

Co-defendants Ammon Bundy, Ryan Bundy, Shawna Cox, David Fry, Jeff Banta, Kenneth Medenbach, and Neil Wampler were previously found not guilty on all counts by a jury on October 27, 2016. Co-defendants Jason Blomgren, Brian Cavalier, Blaine Cooper, Eric Flores, Wesley Kjar, Corey Lequieu, Joseph O’Shaughnessy, Ryan Payne, Jon Ritzheimer, Geoffrey Stanek, Travis Cox, Dylan Anderson, Sandra Anderson, and Sean Anderson previously pleaded guilty. Charges against co-defendant Peter Santilli were previously dismissed.

 

“We are gratified that justice has been served and thank the jury for their service,” said Billy J. Williams, United States Attorney for the District of Oregon. “For forty-one days early last year, these defendants prevented U.S. Fish and Wildlife Service and Bureau of Land Management employees from doing their jobs as stewards of land belonging to the American people. They interfered with the daily lives of residents of Burns, Hines, Harney County and members of the Burns Paiute Tribe. The negative impacts of their actions continue to this day. However, their efforts to sow discord here in Oregon among residents, business owners, community leaders, and law enforcement personnel have failed,” continued U.S. Attorney Williams. “Our communities and state are stronger because of our joint effort to bring these individuals to justice and we as Oregonians can now begin to move past these unfortunate events.”

 

“Over a period of weeks leading up to and during the Malheur National Wildlife Refuge occupation, these defendants made choices. Now, a jury of their peers has spoken, and the consequences of those choices are quite clear,” said Loren Cannon, Special Agent in Charge of the FBI in Oregon. “The U.S. Constitution gives all of us freedoms, but it also comes with the responsibility to respect the laws of this nation. We don’t live in a perfect world, but we do live in a great country. I encourage those who want to make it even better to act in peaceful and lawful ways to inspire lasting, positive change.”

 

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.

Sentencing for each of the four defendants is scheduled for May 10, 2017. The case was investigated by the FBI and prosecuted by Geoffrey Barrow and Ethan Knight, Assistant United States Attorneys for the District of Oregon.

EUGENE, Ore. – On Thursday, March 9, 2017, a federal jury found a Springfield, Ore. property manager guilty of wire fraud and theft. Parthava Behesht Nejad, 82, was convicted of stealing approximately $150,000 in welfare benefits by concealing his use and control of rental properties worth more than $600,000. Nejad will be sentenced on June 13, 2017 before U.S. District Court Judge Ann Aiken.

 

Federal agents began investigating Nejad in 2013 after social workers reported that he was the landlord for numerous people receiving disability benefits. Further investigation determined that Nejad was the president of the Parthava Behesht Nejad International Foundation, which owned eight rental properties in north Springfield, and had been receiving Supplemental Security Income (SSI), food stamps, and Medicaid benefits since 2003.

 

For more than a decade, Nejad claimed he had no income, owned no assets, and had only one bank account containing a few hundred dollars. In reality, Nejad’s properties had been generating substantial rental income for years. Federal agents also discovered a bank account Nejad had concealed from welfare agencies that at times contained more than $30,000.

 

According to court records and trial testimony, Nejad acquired the properties and transferred them to his foundation prior to applying for welfare benefits in 2003. Nejad told the Internal Revenue Service (IRS) and others that his foundation, incorporated in Oregon in 1986, was a church and provided temporary housing for victims of religious persecution. In fact, Nejad had operated the properties as a rental business since the 1980s.

 

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

A Portland, Oregon woman was sentenced to 72 months in prison today for conspiring to file tax returns that claimed more than $1.2 million in fraudulent refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Billy J. Williams for the District of Oregon.  
 
According to documents filed with the court, Danyelle Calcagno conspired to file at least 224 individual income tax returns using names and socials security numbers of individuals that she directly obtained or acquired with the assistance of Latisha L. Simmons of Phoenix, Arizona.  To fraudulently claim the Earned Income Tax Credit and the Additional Child Tax Credit, Calcagno included in the returns fictitious business income appearing to meet eligibility requirements for those credits.  Calcagno filed the fraudulent returns using Internet access from Portland-area hotels to disguise the true source of the filing. 

Calcagno directed the Internal Revenue Service (IRS) to deposit the claimed refunds into different bank accounts and prepaid debit cards that she could access in order to divide the proceeds of the fraud and make it more difficult for law enforcement to identify her as the filer of the returns.  In total, Calcagno and her co-conspirators filed returns seeking at least $1,220,246 in refunds. 

In addition to the term of prison imposed by U.S. District Court Judge Robert E. Jones, Calcagno was ordered to serve three years of supervised release and to pay restitution in the amount of $742,754 to the IRS.  Calcagno previously pleaded guilty to conspiracy to defraud the government, aggravated identity theft and wire fraud.  In October 2015, Simmons was sentenced to serve 39 months in prison for her role in the scheme. 

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Williams thanked special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorney Leslie A. Goemaat of the Tax Division and Assistant U.S. Attorney Quinn Harrington, 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 Thursday, February 16, 2017, Danyelle Calcagno, 41, of Portland, was sentenced to 72 months in federal prison for conspiring to file tax returns that claimed more than $1.2 million in fraudulent refunds. The sentence was announced jointly by Billy J. Williams, United States Attorney for the District of Oregon, and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

According to court documents, Calcagno conspired to file at least 224 individual income tax returns using names and social security numbers of individuals she obtained directly or acquired with the assistance of Latisha L. Simmons of Phoenix, Arizona. To fraudulently claim the Earned Income Tax Credit and the Additional Child Tax Credit, Calcagno cited fictitious business income to meet eligibility requirements for the credits. Calcagno filed the fraudulent returns using Internet access from Portland-area hotels to disguise the true source of the filing.

Calcagno directed the Internal Revenue Service (IRS) to deposit the fraudulent refunds into different bank accounts and prepaid debit cards in order to divide the proceeds of the fraud and make it more difficult for law enforcement to identify her as the filer of the returns. In total, Calcagno and her co-conspirator filed returns totaling at least $1,220,246.

In addition to the prison sentence imposed by U.S. District Court Judge Marco A. Hernández, Calcagno was ordered to serve 3 years of supervised release. Calcagno was also ordered to pay restitution in the amount of $742,754 to the IRS, reflecting the total amount received as a result of the fraudulent returns filed. Calcagno previously pleaded guilty to conspiracy to defraud the government, aggravated identity theft and wire fraud. In October 2015, Simmons was sentenced to serve 39 months in prison for her role in the scheme.

The case was investigated by IRS – Criminal Investigation and prosecuted by Quinn Harrington, Assistant United States Attorney for the District of Oregon, and Leslie A. Goemaat, Trial Attorney for the Justice Department’s Tax Division.

EUGENE, Ore. – On Wednesday, February 15, 2017, U.S. District Judge Ann Aiken sentenced Steven Matthew Chambers, 33, of Eugene, to 132 months in prison for possession with intent to distribute methamphetamine. Following his prison sentence, Chambers will be on supervised release for 5 years.

In 2015, the Lane County Interagency Narcotics Team (INET) began investigating Chambers after receiving reliable information about his involvement in the distribution of methamphetamine. INET surveilled and monitored Chambers activity and, on February 16, 2016, followed him to Albany, Oregon where they observed him meeting with a methamphetamine dealer.

On his return trip to Eugene, Chambers’ vehicle was stopped and searched. A drug dog alerted to a container in his vehicle and he had $3,563 in cash on his person and a list of eleven firearms with prices. His residence was then searched pursuant to a warrant, and a safe with $9,500 cash and a small amount of methamphetamine was found. The next day, detectives found and executed a search warrant on Chambers’ other vehicle in Eugene, and discovered 4.7 pounds of methamphetamine, scales and packaging material.

Chambers was convicted previously in Oregon of second-degree assault in 2002, delivery of methamphetamine in 2007, and attempted first-degree assault in 2008. While serving an earlier prison sentence, Chambers committed multiple additional assaults. Chambers was known to law enforcement as a member of the West Side Gangsters.

This case was investigated by the Lane County Interagency Narcotics Team and the Eugene Resident Agency office of the FBI. The case was prosecuted by Jeffrey Sweet, Assistant United States Attorney for the District of Oregon.

EUGENE, Ore. – On Wednesday, February 15, 2017, Heath Eugene Solomon, 50, of Drain, Oregon, was sentenced to eight years in prison by U.S. District Judge Ann Aiken for being a felon in possession of a loaded 12-gauge shotgun. Solomon was arrested by a Douglas County Sheriff deputy following a neighbor’s report that he was carrying a pistol grip shotgun while searching for a phantom intruder. Solomon’s delusion was a result of his methamphetamine use. The loaded shotgun had been loaned to Solomon by a friend.

According to court documents and statements made during sentencing, Solomon has eleven felony convictions in Oregon, including assaults on police officers, sales of methamphetamine, coercion, unlawful use of a weapon and a felon in possession of a firearm. Solomon, who suffered severe abuse as a child, was addicted to methamphetamine. He had previously sustained significant brain injuries and has multiple severe mental disorders. In 1997, while under the influence of methamphetamine, Solomon fired twenty-four rounds into the walls of a residence he shared with a girlfriend in Elkton, Oregon.

Solomon pleaded guilty on November 29, 2016 to being a felon in possession of a firearm and ammunition. After completing his federal prison sentence, Solomon will be on supervised release for three years.

The case was investigated by the Douglas County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms (ATF) and prosecuted by Frank R. Papagni, Jr., Assistant United States Attorney for the District of Oregon, with assistance from Douglas County District Attorney Rick L. Wesenberg, Jr. and Deputy District Attorney Tiffany Zinter.

EUGENE, Ore. – On February 14, 2017, Robert Allen Cummins, 57, from Eugene, was sentenced by U.S. District Judge Ann Aiken to 40 months in prison for his involvement in a scheme to illegally purchase and sell firearms that were immediately smuggled to Mexico. After completing his prison sentence, Cummins will be on supervised release for three years and will be prohibited from possessing firearms and ammunition.

 

This criminal case is the result of a year-long investigation and international collaboration that began after a large shipment of firearms was intercepted by law enforcement in Sonora, Mexico. According to court documents and statements made in court, members of the conspiracy deposited tens of thousands of dollars near the U.S.-Mexico border into bank accounts associated with Erik Flores Elortegui. Cummins and Flores then straw-purchased thousands of dollars’ worth of high-caliber firearms, including .50 caliber and AK-47-type rifles, some of which were recovered in Mexico soon after being purchased.

 

On one day alone, Cummins walked into a Federally Licensed Firearms Dealer (FFL) in Oregon and paid $38,100 in cash for fourteen firearms, including three .50 caliber rifles.

 

Image 1: Firearms purchased by Mr. Cummins from a Federally Licensed Firearms Dealer in Oregon

 

Less than thirty days later, the Mexican Military seized many of those same firearms, including two of the .50 caliber rifles, from a tractor trailer in San Luis Rio de Colorado, Sonora, Mexico. The firearms, many of which were missing serial numbers, along with more than 2,000 rounds of ammunition, magazines, and firearms accessories, were saran-wrapped and hidden among bales of alfalfa being transported on the tractor trailer.

 

Image 2: Firearms Seized by Mexican Law Enforcement Officials

Image 3: Smuggled Firearms Were Found Hidden Among Bales of Alfalfa on a Tractor Trailer

“Making false statements during a firearms purchase and straw purchasing firearms are serious offenses that increase the likelihood of weapons reaching the hands of violent criminals,” said Billy J. Williams, United States Attorney for the District of Oregon. “Those who seek to buy or sell firearms illegally in Oregon or elsewhere will be held accountable for their actions.”

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Homeland Security Investigations (HSI) and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon.

EUGENE, Ore. – On February 9, 2017, U.S. District Judge Michael J. McShane sentenced Jeffrey Edward Ownby, 30, of Medford, Oregon, to 198 months in federal prison for committing three armed bank robberies, using a sawed-off shotgun in committing a violent felony and unlawful possession of a destructive device. Ownby was ordered to pay restitution to his victims and will be on supervised release for five years following his prison sentence.

Ownby committed the bank robberies in Medford over a one-year span. In each instance, he wore disguises and brandished firearms in front of customers and employees. On May 16, 2014, Ownby entered the Bank of the Cascades wearing a gray bandana and carrying a drawstring bag. He pulled out a handgun, swung it around and told everyone to “get on the ground.” He said, “you know what this is” before putting the bag on a desk and demanding bank employees fill it with money. Ownby fled with approximately $5,878.

On December 22, 2014, Ownby entered the Washington Federal Bank wearing a fake beard, camouflage head covering and clear glasses. He pulled out a handgun, pointed it at the bank tellers and threw a backpack on the counter. In a similar fashion, he stated “you know exactly what this is” and demanded that tellers put money in the bag. He took approximately $7,969 from the bank before fleeing and again avoiding capture by law enforcement.

On April 1, 2015, Ownby entered the America West Bank wearing a hat and fake beard. He pulled a 12-gauge sawed-off shotgun out of his backpack, pointed it at bank personnel and once again said in a loud voice “you know what this is” as he put the backpack on the teller counter. Bank tellers put approximately $2,375 in Ownby’s bag before he fled.

Police released surveillance photos of the robber to the news media. After spotting his resemblance on a local news report, some of Ownby’s former co-workers contacted police. On April 2, 2015, police served a search warrant at Ownby’s Medford residence and found the sawed-off shotgun and a majority of the money stolen the day prior. Police also found Molotov cocktails in a bag in Ownby’s truck along with his robbery disguises. When interviewed by police, Ownby confessed to the three bank robberies and told them he had pawned the handgun he used to commit the first two. Later, police seized the handgun from a local pawnshop.

This case was investigated by the Medford Police Department and the FBI and was prosecuted by Judith Harper and Byron Chatfield, Assistant United States Attorneys for the District of Oregon.

PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, provided the below statement on the opening of the Unity Center for Behavioral Health in Northeast Portland.

“We are pleased to learn of the opening of the Psychiatric Emergency Service at the Unity Center on February 2, 2017 to walk-ins and transfers. This is a much needed service for people in crisis. This facility incorporates a calming environment with peer and community-based services designed to maximize favorable outcomes. The United States Department of Justice identified the need for such a facility over five years ago and we are pleased to see the culmination of efforts of private and public stakeholders, committed to making these services a reality through the Unity Center. While there is much work to be done to address the gaps in community-based mental health services throughout Oregon, we applaud the efforts made to achieve this important step towards closing that gap.”

The Unity Center for Behavioral Health is a 24-hour behavioral and mental health services center providing immediate psychiatric care for people experiencing mental health crises in the greater Portland metropolitan area. To learn more about the Unity Center, please visit www.unityhealthcenter.org.

EUGENE, Ore. – On Monday, January 30, 2017, Krista Jean Mudrick, 36, a resident of Deschutes County, Oregon and former Deschutes County Sheriff employee, was sentenced to three years of probation and 200 hours of community service by U.S. District Judge Michael J. McShane for lying to FBI and IRS agents.

On September 15, 2016, Mudrick pleaded guilty to making material false statements to federal agents about her relationship with former Deschutes County Sheriff Captain Scott Raymond Beard and receiving cash and gifts from him. On September 8, 2016, Judge McShane sentenced Beard to five years in prison for stealing $205,747 in public funds designated for use in combating drug crimes.

Beard falsified records to steal from programs receiving federal funds, which he was entrusted to manage, and then laundered the money by making cash deposits into Mudrick’s bank account. Beard also used some of the public money to fund an international vacation to a resort with Mudrick, bought her a motorcycle and paid for her apartment. U.S. District Judge McShane told Beard when imposing the five-year sentence that “[t]he community has to know that [this conduct] will not be tolerated.”

During her own sentencing hearing, Mudrick admitted lying to agents but denied knowing Beard was stealing public funds. A long-time volunteer for numerous charities, Mudrick offered to do community service work. When imposing the probationary sentence, Judge McShane noted this was Mudrick’s first offense and her lies had not impeded the agents’ investigation of Beard.

This case was investigated jointly by the FBI and IRS and prosecuted by Christopher Cardani and Frank R. Papagni, Jr., Assistant United States Attorneys for the District of Oregon.

PORTLAND, Ore. – On Thursday, January 12, 2017, the City of Portland was featured in a report released by the Justice Department highlighting Former Attorney General Loretta E. Lynch’s twelve-city Community Policing Tour in 2016 as well as the department’s four Regional Justice Forums. The “Attorney General’s Community Policing Report” summarizes steps taken by the department to build stronger relationships and mutual trust among communities and law enforcement agencies.

“This document is not meant to be a comprehensive, step-by-step guide, but, rather, a useful blueprint—a window into what citizens across the nation are doing to build stronger bonds between police and the people they serve,” said Former Attorney General Lynch. “I hope that this report will help inspire ideas and foster cooperation in communities from coast to coast—so that, together, we can continue our work toward a stronger, a safer, and a more united nation.”

“We were honored to have Former Attorney General Lynch visit Portland so we could share with her and with the rest of the country, the extraordinary work members of the Portland Police Bureau perform every day,” said Billy J. Williams, United States Attorney for the District of Oregon. “Often, these daily efforts go unrecognized and we need to change that. Police officers are the face of justice in our community,” continued U.S. Attorney Williams, “and one of our highest callings in the U.S. Attorney’s Office is to promote and strengthen trust in our community for law enforcement and for the justice system.”

During the Community Policing Tour, Former Attorney General Lynch visited 12 jurisdictions in two phases. Phase I focused on jurisdictions that had addressed difficult histories of mistrust between communities and law enforcement through strong collaboration and innovation. During this phase, the Former Attorney General traveled to Cincinnati, Ohio; Birmingham, Alabama; East Haven, Connecticut; Pittsburgh, Pennsylvania; Seattle, Washington; and Richmond, California. Phase II highlighted cities that had made outstanding progress implementing the six key pillars identified in the Final Report of the President’s Task Force on 21st Century Policing. During this phase, the Former Attorney General visited Miami/Doral, Florida; Portland, Oregon ; Indianapolis, Indiana; Fayetteville, North Carolina; Phoenix, Arizona; and Los Angeles, California, with each site focusing on one of the report’s pillars.

In the wake of the horrific tragedies of the summer of 2016 in Baton Rouge, Louisiana; Dallas, Texas; and St. Paul, Minnesota, the Former Attorney General and current Acting Attorney General Sally Q. Yates convened a series of Regional Justice Forums with members of the local law enforcement, youth, faith, non-profit and civil rights communities. These meetings were designed to help local stakeholders critically examine community policing issues in their respective cities and regions and to seek concrete solutions together. The Former Attorney General convened Justice Forums in Detroit, Michigan and Newark, New Jersey. The Acting Attorney General hosted forums in Denver, Colorado, and Atlanta, Georgia.

This report chronicling the community policing work of the Department of Justice highlights innovative local approaches to policing that help foster stronger ties between officers and the people they are sworn to serve and protect. The document is meant to serve as a tool for communities and law enforcement agencies seeking to deepen their own commitment to community policing principles and practices.

The U.S. Attorney’s Office in Oregon is committed to supporting communities throughout the state as they work to build strong relationships between law enforcement agencies and the citizens they serve. A recent example was an event called Building Bridges of Understanding in our Communities co-hosted by the U.S. Attorney’s Office and the Muslim Educational Trust (MET). Please visit https://youtu.be/Y9tudt8vUKE to view a short video of this event. To learn more about the District of Oregon’s community outreach efforts, please contact Suzanne Hayden, Assistant United States Attorney for the District of Oregon, at Suzanne.Hayden@usdoj.gov.

EUGENE, Ore. – On Monday, January 23, 2017, Pamela Jean Gygi, 58, of Westlake, Oregon, pleaded guilty to the use of interstate commerce facilities in the commission of a murder for hire and possession of a firearm in furtherance of a crime of violence before U.S. District Court Judge Ann Aiken. Gygi faces a maximum sentence of 15 years in prison and three years of supervised release.

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 the necessary 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.

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.

EUGENE, Ore. – On Monday, January 23, 2017, Michael Ray Emry, 54, of John Day, Oregon, pleaded guilty before U.S. District Court Judge Ann Aiken to unlawful possession of a fully automatic .50 caliber machine gun that was not registered to him.

After accepting the guilty plea, Judge Aiken scheduled Emry’s sentencing hearing for April 3, 2017. Emry faces a maximum sentence of 10 years in prison, a $10,000 fine, and three years of supervised release.

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 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.

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

EUGENE, Ore. – On January 18, 2017, Shawn James Franks Claytor, 27, a convicted felon from Nyssa, Oregon, was sentenced by U.S. District Judge Ann Aiken to 45 months in federal prison for unlawful possession of a firearm. Upon his release from prison, Claytor will be on supervised release for three years.

At approximately 1:00 a.m. on June 29, 2015, a police officer encountered Claytor and another man near some railroad tracks in Ontario, Oregon. Claytor was on probation and out past his 10:00 p.m. curfew. He fled on foot and discarded a loaded .22 caliber revolver and a bag of methamphetamine. Later that day, officers found Claytor and arrested him. He admitted the firearm and drugs were his and that he had been trying to sell them. Claytor had previously been convicted of first degree burglary in Oregon.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Ontario Police Department, and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon, with the assistance of the Malheur County District Attorney’s Office.

PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, announced today that the District of Oregon collected $19.1 million in criminal and civil actions in Fiscal Year 2016. Of this amount, $7.5 million was collected in criminal actions and $11.5 million was collected in civil actions.

Additionally, the District of Oregon worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $306,163 in cases pursued jointly. Finally, the District of Oregon, working with partner agencies and divisions, collected $2.39 million in asset forfeiture actions. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. These collections represent more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.

“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”

“The District of Oregon’s Asset Recovery and Money Laundering Division is dedicated to holding accountable those who seek to profit from illegal activities across the state and beyond,” said U.S. Attorney Williams. “Civil and criminal collections demonstrate the significant return on investment that federal law enforcement programs deliver. In fact, our 2016 collections are nearly twice that of our annual operating budget. I want to thank the hardworking public servants in our Asset Recovery and Money Laundering Division” continued Williams, “for their deep commitment to aggressively pursuing financial compensation for victims of crimes, and for protecting government programs from financial exploitation and abuse.”

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

The District of Oregon Financial Litigation Unit’s (FLU) efforts to collect restitution for victims of crimes involves regular review of a defendant’s changing financial circumstances and ability to pay. When defendants resist efforts to set up a voluntary and reasonable payment schedule, the FLU pursues wage garnishment, bank accounts, and retirement accounts; depositions; and the seizure and sale of real estate that can be applied to the defendant’s debt.

One example of the district’s recent restitution collection efforts was in the case of U.S.v. Carol Landesman, a Gresham, Oregon psychologist who created false invoices to send to a Catholic diocese for counseling services she did not actually provide. The defendant was ordered to pay restitution in the amount of $113,770, all of which was paid in full at sentencing. Not all cases result in such swift collections, however, and the FLU often spends years pursuing restitution payments from defendants who attempt to hide assets and evade their obligations to fully repay their victims. 

One such example of a case requiring ongoing collection efforts over the past year is in the case of U.S. v. Pavel Tokar, who was sentenced in 2006 for fraud and ordered to pay over $90,000 in restitution. After ten years, the defendant had paid less than $10,000 back to his victims. After reviewing several questionable property transactions and scheduling the defendant’s spouse for a deposition to more fully probe the defendant’s financial circumstances, the defendant paid the remaining $81,000 balance in full to avoid further collection efforts. 

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

The single largest civil collection over the past year came from the office’s resolution of a civil fraud case against Holiday Corporation, which operated senior living facilities throughout the country. The investigation, which was prompted by allegations brought by former employees, revealed improper receipt by Holiday of veteran’s benefit payments for care that was not provided, and for care to ineligible veterans. For example, it revealed that Holiday Corporation had falsified information indicating that veterans were entitled to benefits for assistance with their daily living, when in fact those funds were actually paid to Holiday for rent. The settlement agreement included collection of $8.86 million from Holiday. 

In another example of civil collections, the U.S. Attorney’s Office and the Oregon State Department of Justice worked jointly to resolve both civil and criminal matters against Tran Pharmacy and its owner for billing Medicare and Medicaid for prescriptions that were filled with generic fish oil capsules. As part of the settlement, the defendant paid over $800,000 to federal and state agencies. One final example includes a civil fraud case against Skamania Public Utility District, which was accused of overstating power line miles to the Bonneville Power Administration (BPA), thereby causing BPA to provide Skamania with a greater discount on its power costs than Skamania was entitled to receive. As part of its settlement, Skamania paid $725,236 to the government.

A resident of Portland, Oregon, pleaded guilty today to aggravated identity theft announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and United States Attorney Billy Williams for the District of Oregon.

According to the plea agreement, Roychelle Brown, 45, admitted that she stole personal identifying information of homeless individuals and veterans from her employment at Central City Concern, a program dedicated to helping fight homelessness and joblessness for residents of Portland, Oregon. Brown admitted to collecting the information for individuals she believed had died and providing the stolen identifying information to her sister, Tataneisha White, to use in filing false tax returns claiming fraudulent refunds.

Sentencing is scheduled for March 29, 2017 before the Honorable Robert E. Jones. Brown faces a statutory minimum sentence of 24 months in prison, a period of supervised release, restitution and monetary penalties. In addition, she agreed to pay $2,500 in restitution to Central City Concern to reimburse the non-profit organization for costs incurred as a result of her identity theft.  White is currently serving a 37-month prison sentence following her October 2015 guilty plea to conspiracy to file false claims, filing a false claim and theft of government funds. White admitted that she and her co-conspirators, Lori Nicholson, Jasmine Mason, Shawntina Ware and Brandon Leath prepared and filed 227 false income tax returns that claimed a total of more than $1 million in fraudulent refunds.  Nicholson pleaded guilty on Nov. 8 and is scheduled to be sentenced on Feb. 22, 2017.  Mason pleaded guilty and was sentenced to serve more than two years in prison.  Ware pleaded guilty and is scheduled to be sentenced on February 1, 2017.  Leath pleaded guilty and was sentenced to serve 24 months in prison. 

Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-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. Principal Deputy Assistant Attorney General Ciraolo also thanked the United States Attorney’s Office for the District of Oregon for their substantial assistance.

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

PORTLAND, Ore. – On Wednesday, December 14, 2016, U.S. District Judge Robert E. Jones sentenced Darren Bottinelli, 45, to 46 months in federal prison followed by three years of supervised release. Bottinelli was also ordered to pay $3,093,918 in restitution to his victims.

In March 2016, Bottinelli pled guilty to one count of theft in connection with health care, admitting that between 2009 and 2014 he stole approximately $3 million from individual health reimbursement accounts (HRA) under management by his company, Axis Benefit Administrators, Inc., also known as AXIS Health Partners.

Bottinelli served as the sole shareholder, officer and director of Axis, based in Portland, administering employee health reimbursement and flexible spending accounts for client employers nationwide. According to Axis contracts with employers, the company pledged to post employer contributions to trust accounts for participants who could then seek reimbursement for eligible health expenditures from their account funds.

On March 19, 2014, Bottinelli abruptly closed the Axis office without any communication to client employers or plan participants. As a result, over 3,000 plan participants were unable to access their account funds. Victims reported financial devastation, blocked access to necessary medical treatment and severe emotional trauma as a result of Bottinelli’s theft and failure to provide notice of the company’s closure.

Bottinelli’s client employers included government contractors and other companies who hire hourly and minimum wage contract workers. Some of his clients, including Goodwill Industries of South Texas, Morgan Memorial Goodwill Industries, Job Squad, Cascade Christian Services, VersAbility Resources (formerly known as the Arc of the Virginia Peninsula), and Vets Securing America, employed veterans, mentally and physically disabled adults and other vulnerable individuals.

Bottinelli improperly and repeatedly accessed trust account funds to maintain a luxurious lifestyle, including memberships to exclusive and private clubs, frequent high-end dining, expensive wine purchases, and first class travel.

“Mr. Bottinelli violated the trust placed in him and his company by thousands of honest, hardworking people,” said Billy J. Williams, United States Attorney for the District of Oregon. “These individuals diligently saved a portion of their pay to provide medical care for themselves and their loved ones, only to have their money stolen by Mr. Bottinelli for his own gain. This sentence serves as a reminder,” continued U.S. Attorney Williams, “that those who violate the trust of others under the guise of financial management and security will be vigorously investigated, prosecuted, and punished for their actions.”

“Darren Bottinelli treated these health care reimbursement accounts as his personal ATM without regard for the real hardship that he was causing thousands of hardworking people. These folks lost more than $3 million – money that had been set aside to pay for needed medical care for their families. Today’s prison sentence is a start on making things right, but the suffering he caused these victims will live on for some time,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon.

“Mr. Bottinelli decided to illegally enrich himself at the expense of hard working employees and their employers, and today he was held accountable,” said Jean Ackerman, Regional Director for the U.S. Department of Labor Employee Benefits Security Administration (DOL ESBA). “This case demonstrates how federal agencies work together to vigorously enforce criminal violations committed against employee benefit plans and their participants.”

The case was investigated by DOL ESBA, the FBI, and the U. S. Department of Labor, Office of the Inspector General (USDA OIG). The case was prosecuted by Donna Brecker Maddux, Assistant United States Attorney for the District of Oregon.

PORTLAND, Ore. – On Monday, December 12, 2016, U.S. District Judge Anna J. Brown sentenced former Oregon State Police Forensic Scientist Nika Larsen, 36, of Bend, Oregon to 36 months in federal prison for obtaining controlled substances by misrepresentation, fraud and deception. Following her prison sentence, Larsen will be on one year of supervised release that will include 250 hours of community service.

“An effective criminal justice system requires the highest level of personal integrity from everyone working within the system,” said Billy J. Williams, United States Attorney for the District of Oregon. “If is a single link in this chain is compromised, the equitable administration of justice is at risk. Ms. Larsen’s sentence reflects the severity of her crimes,” continued U.S. Attorney Williams, “and demonstrates our law enforcement community’s commitment to policing its own and protecting the integrity of the justice system.”

In August 2016, Larsen plead guilty to two counts of obtaining controlled substances by misrepresentation, fraud and abuse by using her position as a state forensic scientist to steal controlled substances from evidence items submitted by law enforcement agencies to the Oregon State Police Crime Lab for analysis and testing. Between January 2013 and August 2015, Larsen was found to have stolen over 700 controlled substances in pill form from over 50 separate evidence items. The stolen pills included Morphine, Hydrocodone, Diazepam, Methamphetamine (pill form), Oxycodone and Methadone. Larsen’s offenses occurred primarily in Umatilla and Deschutes Counties at the Oregon State Police Crime Labs in Pendleton and Bend.

The case was investigated by the Oregon State Police and the Oregon Department of Justice, Criminal Justice Division. The case was prosecuted by Pamala R. Holsinger, Assistant United States Attorney for the District of Oregon, and Special Assistant United States Attorney Stephen H. Gunnels from the Deschutes County District Attorney’s Office. Multnomah County Chief Deputy District Attorney Donald N. Rees served as Special Deputy District Attorney for Umatilla County during the case and also represented the Oregon District Attorney’s Association (ODAA).

Daina Vitolins, President of the ODAA, expressed the gratitude of district attorneys statewide to the United States Attorney for Oregon and to the participating district attorneys’ offices for bring this difficult matter to a just close.

PORTLAND, Ore. – On Monday, December 12, 2016, Stephen Miles Munson, 72, of Bend, Oregon, pleaded guilty to willfully filing a false tax return. According to court documents, on his 2008 federal income tax return, Munson falsely claimed that he donated 200,000 shares of stock to the University of Oregon and Stanford University. He claimed the shares had an alleged value of $3.2 million. In reality, Munson never made the claimed donations.

On October 8, 2015, Munson was charged in a multi-count indictment with willfully filing a false tax return and bankruptcy fraud. He is a retired U.S. Army Captain with degrees from the University of Oregon and Stanford University. In 1991, Munson started Vulcan Power Company, a geothermal energy company in Bend, Oregon, and served in the company in different capacities, including president and chief executive officer, until 2008. In 2008, he sold a controlling interest in Vulcan Power Company for almost $15 million. On his 2008 federal income tax return, Munson fraudulently claimed that amount as a charitable deduction, and due to his alleged donation, he requested and fraudulently received a $407,019 refund from the Internal Revenue Service for the 2008 tax year. As part of his plea agreement, Munson agreed that the loss to the IRS for the false 2008 tax return was $2,422,202.

In January 2011, Munson entered into voluntary bankruptcy proceedings. According to court records, Munson submitted his false 2008 federal income tax return in support of his bankruptcy and omitted almost $200,000 in assets, more than $200,000 in gifts, more than $7 million in transfers to insiders and affiliates, and a $16,786 state tax refund from his original bankruptcy filings. As part of the plea agreement, Munson agreed that the loss associated with this conduct is approximately $7.5 million.

Sentencing is set for June 9, 2017, at 10:00 a.m. in the United States District Court in Portland, Courtroom 16 before Judge Michael W. Mosman. This case was investigated by the IRS Criminal Investigation Division and the FBI and is being prosecuted by Scott E. Bradford, Assistant United States Attorney for the District of Oregon.

EUGENE, Ore. – On December 6, 2016, Troy Joseph Minson, Jr., 28, from Madras, Oregon was sentenced by U.S. District Judge Ann Aiken to 57 months in federal prison for unlawful possession of a firearm. Minson, a convicted felon with outstanding arrest warrants, will be on supervised release for three years following his prison sentence.

            On August 3, 2014, the Springfield Police Department received a call that the defendant was at a local deli with a gun. Officers responded and attempted to take Minson into custody when he pulled away from them, jumped over a counter and dropped a loaded .22 caliber Beretta pistol onto the ground. A struggle ensued when Minson resisted arrest, but he was eventually apprehended and taken into custody. Minson has prior felony convictions for burglary in the first degree, delivery of methamphetamine and eluding police.

            This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Springfield Police Department, and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon, along with the assistance of Jefferson County District Attorney Steven Leriche.

PORTLAND, Ore. – Early last week, the FBI released its annual statistics on hate crimes in the U.S. The report showed a 67 percent increase in hate crimes committed against Muslim Americans in 2015 as well as increases in hate crimes against members of the Jewish, African American, and LGBT communities. Overall, the number of hate crimes reported nationwide increased six percent – a number that does not account for the many hate crimes that go unreported out of shame or fear.

These figures are deeply concerning to members of our law enforcement community in Oregon. Beyond the 2015 statistics, Oregonians may have seen 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.”

If you or someone who you know has been a victim of a hate crime, please report this to your local law enforcement authority. If you are concerned about your safety, please call 9-1-1 immediately.

Victims are encouraged to report all hate crimes to their local law enforcement agency and also to the FBI. 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 in the Portland metro area:

• United States Attorney’s Office – District of Oregon: (503) 727-1000
• Oregon Department of Justice: (503) 378-4400
• FBI – Portland Division: (503) 224-4181
• Multnomah County Sheriff’s Office: (503) 823-3333
• Clackamas County Sheriff’s Office: (503) 655-8211
• Washington County Sheriff’s Office: (503) 629-0111
• Portland Police Bureau: (503) 823-0400
• Gresham Police Department: (503) 823-3333

EUGENE, Ore. – On Wednesday, November 16, 2016, Edwin Enoc Lara, 31, of Redmond, Oregon was indicted by a federal grand jury in Eugene, Oregon for carjacking, kidnapping, and two counts of brandishing a firearm. The defendant’s federal charges are related to an alleged July 2016 carjacking and kidnapping of a female victim in Salem, Oregon and taking her to California.

Lara is currently in custody in Deschutes County, Oregon where he is facing state charges for aggravated murder in connection with the death of Kaylee Sawyer. Lara is also facing separate state charges in Siskiyou County, California including attempted murder and assault.

An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty. If convicted of the federal charges, Lara faces a mandatory minimum sentence of seven years and up to life in prison on the firearm charges, a maximum sentence of fifteen years for carjacking and twenty years for kidnapping.

This case is being investigated by the FBI in collaboration with the Redmond Police Department, Bend Police Department, Deschutes County Sheriff’s Office, Oregon State Police, and other local law enforcement agencies in California. Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon, is prosecuting the case.

EUGENE, Ore. – On Tuesday, November 15, 2016, U.S. District Judge Michael J. McShane sentenced Darryl Tyrone Norwood Jr., 29, of Lane County, Oregon, to 160 months in prison for sex trafficking of a minor. Following his prison sentence, Norwood will be on lifetime supervised release.

In February of 2014, the FBI and the Eugene Police Department (EPD) were investigating the solicitation of commercial sexual activity on the website Backpage.com, and identified a sixteen-year-old minor female. On February 27, 2014, an undercover EPD detective posed as a customer, contacted the minor female and purported to arrange for commercial sex at a Eugene hotel. The minor female victim was driven to the hotel by Wayne Ratliff. Both were detained and interviewed by police. Law enforcement learned that the victim had been trafficked by Norwood on and off for a period of four months, and that Ratliff had at times assisted. Both Norwood and Ratliff were arrested and charged in federal court with sex trafficking of a minor. Ratliff was convicted in July 2016 and sentenced to 63 months in prison.

While trafficking the minor female victim, Norwood rented hotel rooms for her to stay and use for commercial sex acts, told her where to post an online solicitation, drove her to locations to engage in sexual activity and bought her a phone. The victim gave all of the proceeds from the sexual encounters to Norwood who knew that she was sixteen years old for most of the time he was trafficking her. Law enforcement also learned that Norwood trafficked several other women, including a female who was convicted in state court for assault.

Norwood engaged in a pattern of threats, manipulation, and controlling behavior toward the women he trafficked. He has prior convictions in Oregon for Assault in the Second Degree in 2007, and Assault in the Fourth Degree in 2014.

“Sex traffickers use violence, threats and power to manipulate and take advantage of vulnerable victims,” said Billy J. Williams, United States Attorney for the District of Oregon. “Stopping sex trafficking throughout Oregon is a top priority for our office. We will continue to work closely with our federal, state and local law enforcement partners to find, convict and punish those responsible for these horrible and degrading crimes. Furthermore, we will continue to do everything possible to prevent these and similar crimes through outreach and education.” 

The investigation of this case was a collaborative effort between the FBI and the EPD Special Investigations Unit. The case was prosecuted by Jeffrey Sweet, Assistant United States Attorney for the District of Oregon.

PORTLAND, Ore. – On Monday, November 14, 2016, U.S. District Judge Marco A. Hernandez sentenced Cody C. Halsey, 37, to 33 months in federal prison followed by three years’ supervised release. Halsey plead guilty in July 2016 to defrauding nearly 250 clients of his former property management companies, Cascade Community Management and Noah and Associates, both of which were located in Clackamas, Oregon. District Judge Hernandez also ordered Halsey to pay restitution of $1,545,487 to his client victims.

Halsey admitted to embezzling $1,545,487 in tenant rents and security deposits entrusted to his property management companies from 2010 through July 2015. He falsified company records and sent clients false account statements to conceal these thefts. According to the Receiver who took over the property management companies after Halsey’s embezzlement came to light, many property owners who were Halsey’s clients experienced severe emotional and financial distress as a result of his crimes.

“This sentence is a significant sanction for violating your clients’ trust,” said Billy J. Williams, United States Attorney for the District of Oregon. “Business owners who are entrusted with their clients’ money have a special obligation to handle it properly. We will continue to work with our partners at the FBI to identify and prosecute those in positions of trust who steal their clients’ money to enrich themselves.”

This case was investigated by the FBI and prosecuted by Seth D. Uram, Assistant United States Attorney for the District of Oregon.

WASHINGTON – On Thursday, November 10, 2016, Attorney General Loretta E. Lynch presented Adrian Brown, Assistant United States Attorney for the District of Oregon, with the prestigious John Marshall Award for Participation in Litigation.

The John Marshall Awards are the Justice Department’s highest awards offered to attorneys for contributions and excellence in specialized areas of legal performance. Assistant U.S. Attorney Brown was recognized along with ten other 2016 John Marshall Award recipients at the 64th Annual Attorney General Awards ceremony hosted by Attorney General Lynch.

Brown and five other colleagues were recognized for their extraordinary work in securing, alongside private plaintiffs, a landmark settlement agreement remedying systematic discrimination in Oregon’s employment service system for people with intellectual and developmental disabilities (I/DD). Through the team’s outstanding oral and written advocacy, a groundbreaking settlement was secured in Lane v. Brown, the nation’s first class-action lawsuit to challenge a state funded and administered employment service system, relying primarily on sheltered workshops, as a violation of the Americans with Disabilities Act (ADA) integration mandate.

Throughout the more than three-year litigation, the team successfully positioned the department and private plaintiffs to obtain a comprehensive settlement agreement providing relief to approximately 7,000 people with I/DD. These individuals include 1,115 adults who have long been relegated to segregated workshops when they were able and wanted to work in traditional jobs in their communities. 4,900 youth with I/DD will now receive employment services to aid in selecting, preparing for, obtaining, and retaining traditional jobs. The team’s accomplishment serves as a model for integrated employment of persons with disabilities nationwide.

 “The Attorney General’s Awards provide us with a rare opportunity to honor the efforts of outstanding department employees and our invaluable partners across the federal government and at the state and local levels,” said Attorney General Lynch. “Their work has made our nation – and our world – stronger, safer and more just, and I am proud of and inspired by each and every one of them.”

 “I am honored and delighted that Adrian was recognized today for her outstanding achievements and important contributions to protecting Oregonians with intellectual and developmental disabilities,” said Billy J. Williams, United States Attorney for the District of Oregon. “Adrian is a critical member of our team whose knowledge and creativity contribute significantly to furthering the mission of the Justice Department across Oregon. Her efforts demonstrate our steadfast commitment,” continued U.S. Attorney Williams, “to protecting our most vulnerable citizens from discrimination. I am proud to work alongside such a talented and dedicated public servant.”

Attorney General Lynch recognized 376 Justice Department employees for their distinguished public service at today’s awards ceremony. Forty-seven other individuals outside the department were also honored with their work. The annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice across the country.

MEDFORD, Ore. – On Monday, November 7, 2016, John Martin Roos, 62, of Medford, plead guilty in United States District Court to threatening to kill the President of the United States. In separate counts, Roos also pled guilty to threatening to shoot FBI agents and possession of an unregistered explosive device.

Roos admitted in court to using racially inflammatory language in a Twitter post in which he threatened to kill President Barack Obama. 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.

Based on his guilty pleas, Roos faces up to ten years in federal prison. Sentencing is scheduled for March 16, 2017 before United States District Court Judge Michael McShane in Medford. Roos was ordered to remain in custody pending his sentencing.

This case was investigated by the FBI, VA Police Service, Oregon State Police, and Medford Police Department. The case is being prosecuted by William “Bud” Fitzgerald, Assistant United States Attorney for the District of Oregon

PORTLAND, Ore. – A federal jury today delivered its verdicts against seven defendants charged with conspiracy, possession of firearms on federal property, and theft during the 41-day armed occupation of the Malheur National Wildlife Refuge. Jurors found Ammon Bundy, Shawna Cox, David Lee Fry, Jeff Wayne Banta, Kenneth Medenbach, and Neil Wampler not guilty on all counts. Jurors found Ryan Bundy not guilty on charges of conspiracy and possession of firearms, but were unable to reach a verdict on the charge of theft.

Co-defendants Jason Blomgren, Brian Cavalier, Blaine Cooper, Eric Flores, Wesley Kjar, Corey Lequieu, Joseph O’Shaughnessy, Ryan Payne, Jon Ritzheimer, Geoffrey Stanek, and Travis Cox previously pled guilty. Co-defendants Dylan Anderson, Sandra Anderson, Sean Anderson, Duane Ehmer, Jason Patrick, Darryl Thorn, and Jake Ryan will stand trial beginning February 14, 2017. Charges against co-defendant Peter Santilli were previously dismissed.

“While we had hoped for a different outcome, we respect the verdict of the jury and thank them for their dedicated service during this long and difficult trial,” said Billy J. Williams, United States Attorney for the District of Oregon. “We strongly believe that this case needed to be brought before a Court, publicly tried, and decided by a jury. Despite the verdict reached, I want to personally thank all of the law enforcement personnel who worked tirelessly to bring about a peaceful resolution to the Malheur occupation. I also want to thank the residents of Burns, Hines, and Harney County and members of the Burns Paiute Tribe for their patience and resolve throughout this process.”

“For many weeks, hundreds of law enforcement officers – federal, state, and local – worked around-the-clock to resolve the armed occupation at the Malheur National Wildlife Refuge peacefully. We believe now – as we did then – that protecting and defending this nation through rigorous obedience to the U.S. Constitution is our most important responsibility,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “Although we are extremely disappointed in the verdict, we respect the court and the role of the jury in the American judicial system.”

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

PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, announced today that Assistant United States Attorney (AUSA) Adrian Brown will lead the District of Oregon’s efforts to protect voting rights and address complaints of election fraud and abuse in the upcoming November 8, 2016 general election. As the District Election Officer, AUSA Brown will oversee local implementation of the Justice Department’s nationwide Election Day Program.

“It is the mission of the Department of Justice and all United States Attorney’s Offices to act promptly and aggressively to protect the integrity of our electoral process,” said U.S. Attorney Williams. “Discrimination, voter interference, and election fraud will not be tolerated. I encourage anyone with knowledge of any voting abuses or fraud,” continued Williams, “to immediately contact my office, the FBI, or the Justice Department’s Civil Rights Division.”

The Department of Justice has an important role in deterring election fraud and discrimination wherever such acts occur. The Justice Department’s longstanding Election Day Program furthers these goals and seeks to ensure public confidence in the integrity of the electoral process. The appointment of a District Election Officer within each United States Attorney’s Office gives voters an easy way to report possible election fraud and voting rights violations.

Federal law protects against such crimes as intimidating, bribing, or impersonating voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. The law also contains special protections for the rights of voters and ensures that all voters can vote without the fear of intimidation or harassment. Actions intended to interrupt or intimidate voters violate federal voting rights law. Federal law also protects the right of voters to mark their own ballot or to be assisted by a person of their choice.

To file complaints of election fraud or other voting rights abuses, please contact AUSA Brown at (503) 727-1000 or Special Agent Caleb Williams with the FBI’s Portland Field Office at (503) 224-4181. Additionally, complaints can filed directly with the Justice Department’s Civil Rights Division Voting Section in Washington, DC by phone (800-253-3931 or 202-307-2767), fax (202-307-3961), email (voting.section@udsoj.gov), or online form (go.usa.gov/xkvn4).

PORTLAND, Ore. – On Tuesday, October 25, 2016, U.S. District Robert E. Jones sentenced David G. Kiraz to 3 years in federal prison and 3 years’ supervised release, George D. Kiraz to 3 years in federal prison and 3 years’ supervised release, and Daniel G. Kiraz to 12 months and one day in federal prison after their trial conviction in May 2016.

All three men were convicted for conspiring to defraud the Internal Revenue Service (IRS). Additionally, David Kiraz was convicted for filing false income tax returns, and George and Daniel Kiraz for aiding and assisting the filing of a false income tax return. Judge Jones also ordered the defendants to pay restitution of $511,754 to the IRS and $137,654 to the Oregon Department of Revenue.

The defendants operated Cabaret Lounge, a strip club located at 503 W Burnside Street in Portland and Cabaret Lounge II, a strip club located at 17544 SE Stark Street in Gresham. From 2007 through 2010 these clubs collected over $1,500,000 in cover charges and dancer stage fees, all in cash. To hide this money from the IRS, the defendants maintained two sets of books, one set that accurately accounted for all cover charges and dancer fees, and another that did not.

For each year alleged in the indictment, the defendants reported their business activity on the individual income tax return of defendant David Kiraz using a Schedule C, “Profit or Loss from Business.” The defendants knowingly provided their tax return preparers only a two-page summary from the false set of books rather than providing the accurate financial information. This resulted in David Kiraz intentionally underreporting $1,501,874 in taxable income, and causing a federal tax loss of $511,754 and a state tax loss of $137,654 for tax years 2007 through 2010.

“These sentences are significant sanctions for serious crimes,” said Billy J. Williams, United States Attorney for the District of Oregon. “Business owners who deal extensively in cash have the same legal obligation to pay their fair share of taxes as does everyone else. The U.S. Attorney’s Office and IRS,” continued Williams, “will continue to work together to identify and prosecute those who cheat the tax system.”

“Skimming cash and keeping two sets of books cheats not only the United States, but also honest taxpayers that play by the rules and pay their fair share of taxes,” said Principal Deputy Assistant Attorney General Ciraolo. “The Department and the IRS will continue to make the investigation and prosecution of tax evaders like David, George and Daniel Kiraz, a top priority.”

“Our nation’s tax system funds many government services to include our military, infrastructure, and other vital services, so essentially, the Kiraz’s weren’t just cheating the IRS, they were cheating the men and women of our armed forces, anyone who drives our highways, and those who rely on any number of social services for their wellbeing,” said Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. “Moreover, besides depriving the U.S. Treasury, tax scoffs shift their tax burden to every taxpayer who pays an honest tax, essentially robbing each and every one of us.”

This case was investigated by IRS Criminal Investigations. It was prosecuted by Quinn P. Harrington and Seth D. Uram, Assistant United States Attorneys for the District of Oregon, and by Department of Justice Tax Division Trial Attorney Leslie A. Goemaat.

PORTLAND, Ore. – The Department of Justice (DOJ) has announced grant program awards in excess of $700,000 will be given to Portland State University (PSU) in support of four campus law enforcement and community justice initiatives. The awards recognize and support the work of both law enforcement and universities in developing new and innovative ways of administering justice programs on and off campus.

The funded programs vary in size, scope and subject matter. A $400,000 grant has been awarded by the DOJ Office on Violence Against Women (OVW) in support of a research partnership between PSU, the Center for Court Innovation, Multnomah County Family Court, and additional community partners. The goal of the project is to generate culturally responsive practices and policies related to procedural justice for survivors of domestic violence.

“We’re thrilled to be conducting one of the very first DOJ grant projects of this kind in the family court setting,” said Anna Rockhill, a senior research associate at PSU’s School of Social Work and co-principal investigator on the project. “We hope to deepen our understanding of the needs of a variety of different cultural and linguistic minority groups and turn those insights into concrete practice and policy recommendations.”

The DOJ Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART) will give $250,000 to PSU to expand an initiative aimed at reducing sexual violence on college campuses. The additional award will augment a three-year $750,000 award received in 2015-2016 to develop a "situation-based" prevention approach to address campus sexual assault.

In the first phase of the project, PSU College of Liberal Arts and Sciences psychology professor Keith L. Kaufman and co-investigator Sarah McMahon of Rutgers University will tailor Kaufman’s four-step “Situational Prevention Approach” to help identify and address risk factors that can lead to sexual assault. Phase one sites include PSU, Rutgers, and Portland Community College. In the second phase, they will use the resulting implementation manual to guide five additional campuses’ use of the approach and gather feedback to finalize it for national dissemination. The five phase two campuses are: Penn State University, Catholic University, Fairleigh Dickinson University, Northern Virginia Community College, and Linfield College. The new, supplemental award will allow for the inclusion of all five colleges and universities in the critical second phase of the development process.

“Having more campus participants will allow us to strengthen the Campus Situational Prevention Approach to more fully realize its potential to address campus sexual assault,” Kaufman said.

The National Institute of Justice (NIJ), the Justice Department’s lead research and evaluation organization, seeks to improve knowledge and understanding of crime and justice issues through science. NIJ has awarded PSU nearly $40,000 to support National Archive of Criminal Justice Data (NACJD) evaluation and analysis to help criminal justice agencies make informed decisions about the types of research programs they invest and participate in.

Finally, the PSU Campus Public Safety Office will receive $20,000 as part of the Justice Department’s Body-Worn Camera Program.

Each year, the Justice Department offers hundreds of funding opportunities to support law enforcement and public safety activities in state, local and tribal jurisdictions; to assist victims of crime; to provide training and technical assistance; to conduct research; and to implement programs that improve the criminal, civil, and juvenile justice systems. To learn more about DOJ grant opportunities, please visit: www.justice.gov/business/grants.

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About Portland State University

As Oregon's only urban public research university, Portland State offers tremendous opportunity to 29,000 students from all backgrounds. Our mission to "let knowledge serve the city" reflects our dedication to finding creative, sustainable solutions to local and global problems. Our location in the heart of Portland, one of America's most dynamic cities, gives our students unmatched access to career connections and an internationally acclaimed culture scene. U.S. News & World Report ranks us among the nation's top 10 most innovative universities.

PORTLAND, Ore. – On Wednesday, October 19, 2016, a South Korean native with previous federal convictions was sentenced to 39 months in prison for bank fraud, identity theft, and illegal reentry into the United States. Chae Sun Kim, 62, who pled guilty to the charges in March 2016, was sentenced by U.S. District Court Judge Robert E. Jones. 

According to court records, between April and May of 2015, Kim and an associate created a Republic of Korea passport using a fictitious name to open numerous bank accounts in the Portland metropolitan area. Using the false identities, Kim opened the accounts using his name and the name of his business, King Blackbox. Subsequent activity with these bank accounts by Kim and others resulted in a loss of more than $18,000 to at least six banks. When executing a search warrant at Kim’s Las Vegas residence, agents found equipment and paraphernalia capable of producing hundreds of fraudulent identifications as well as identification documents in other people’s names.

In 2002, Kim was convicted in the Western District of Washington for conspiracy to defraud the United States, Social Security number fraud, and visa fraud, and was sentenced to 63 months in prison. He was deported in 2007.

Judge Jones ordered Kim to pay $48,718.49 in restitution, including $30,000 to the U.S. Department of Homeland Security (DHS). Judge Jones concluded the sentencing hearing by calling Kim a “crook” and telling him that he cannot return to the United States. Kim assured the court he would not return.

The case was investigated by DHS, Homeland Security Investigations, and the Social Security Administration Office of the Inspector General, Office of Investigations. The case was prosecuted by Helen Cooper, Special Assistant United States Attorney as part of a partnership venture between the SSA Office of the General Counsel, Seattle Region and the United States Attorney’s Office in Portland, Oregon.

WASHINGTON – The United States has sued an Oregon City, Oregon woman to bar her from promoting an alleged tax fraud scheme, the Justice Department announced today.  The government’s complaint alleges that Priscilla E. Schrock promotes the formation and use of “Religious Non-Profit Corporations” (RNPCs), which Schrock falsely informs her customers are exempt from tax laws.  According to the complaint, Schrock claims that by assigning income to the RNPC, the customer can avoid paying federal income tax on their income.  Schrock also tells her customers that transferring assets to an RNPC protects the assets from the Internal Revenue Service (IRS) collection action, the complaint alleges.  The suit asks the court to bar Schrock from promoting and selling the scheme and to order her to provide a list of her customers’ names, addresses, telephone numbers and email addresses to the Justice Department.

According to the complaint, Schrock promotes the scheme through an Oregon City based entity called South Beach Missions.  The complaint also alleges that the U.S.  District Court for the District of Oregon previously enjoined a similar scheme that John D. Fitzgerald promoted.  According to the complaint, Fitzgerald and Schrock are friends and some of Fitzgerald’s former customers are now Schrock’s customers. 

According to the complaint, Schrock and South Beach Missions know or have reason to know the statements they make about RNPCs, aka corporations sole, are false sham non-profit corporations.  The IRS has issued guidance regarding sham non-profits and advised the public to be aware of tax evasion schemes that misuse corporation sole laws.  The IRS has specifically advised that “[a] taxpayer cannot use a corporation sole created to avoid or evade income taxes as a means to exclude the taxpayer’s personal income from tax.” 

Abusive tax schemes and return preparer fraud are on the IRS’s Dirty Dozen Tax Scams for 2016.  The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.  In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers.  Information about these cases is available on the Justice Department’s website.  An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page.  If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

PORTLAND, Ore. – A former employee of the Deschutes County District Attorney’s Office and the Oregon Department of Justice was sentenced this week to probation for his theft of more than $56,000 from the U.S. Department of Veterans Affairs (VA), the U.S. Department of Agriculture (USDA), and the U.S. Department of Health and Human Services (HHS). Bruce A. Endicott, 34, pled guilty last June to one count of theft of government funds from a six-count indictment. Endicott’s guilty plea was pursuant to a plea agreement, and included Endicott’s admissions to conduct over a course of three years that supported all six counts of the indictment. On Tuesday, U.S. District Court Judge Robert E. Jones sentenced Endicott to a three-year term of probation, 250 hours of community service, and payment of full restitution.

According to court records and the government’s sentencing memorandum which included a detailed timeline of events, Endicott began receiving service-connected disability benefits through the VA in 2005, following his three years of Navy service in San Diego, Calif. In June 2012, Endicott filed an additional claim with the VA for Individual Unemployability (IU) benefits, claiming he was unemployed and unable to be employed due to his service-connected disabilities that included mental and physical impairments. Endicott also submitted a statement to the VA in February 2013, that stated he had not worked within the past 12 months, when in fact, Endicott was currently working at the Oregon Department of Justice under a second Social Security number that he had not disclosed to the VA. Based on Endicott’s false statements and concealments, the VA awarded him additional benefits and advised him to notify the VA immediately if he became employed.

Endicott left the Oregon Department of Justice in December of 2013, and began working for the Deschutes County District Attorney’s Office, and again failed to notify the VA he was working.

After Endicott left the District Attorney’s Office in May 2014, he applied for welfare benefits through the Oregon Department of Human Services (Oregon DHS), using the second Social Security number, and claimed to have no income. Endicott failed to disclose to Oregon DHS that he was receiving approximately $2,700 per month in VA benefits. Based on Endicott’s false statements and concealments, Oregon DHS awarded him Supplemental Nutrition Assistance Program (SNAP) (also known as food stamps) and Temporary Assistance to Needy Family (TANF) benefits.

In February 2015, Endicott submitted a statement to the VA regarding his IU claim, in which he failed to disclose his former employment with the Deschutes County District Attorney’s Office, and falsely asserted that he had not worked in the past 12 months. As a result of his false statements and concealments, the VA continued to pay his IU benefits. Between June 2012 and October 2015, Endicott received approximately $47,947 in IU benefits, $5,996 in SNAP benefits, and $2,770 in TANF benefits to which he was not entitled.

In their argument for jail, the government noted the ongoing and repeated nature of Endicott’s fraud, his purchase of a $65,000 truck instead of paying past-due child support and restitution, the burden of his repeated false claims on the VA and Oregon DHS systems, and the detrimental affect his fraud had on truly deserving veterans whose benefits were delayed due to his conduct. Judge Jones warned Endicott that despite receiving probation, further wrongdoing would result in a much harsher sentence. As a condition of his probation, Endicott was ordered to participate in a mental health treatment program.

The case was investigated by the Criminal Investigations Division of the VA Office of Inspector General, Oregon DHS, and the Social Security Administration Office of the Inspector General, Office of Investigations. The case was prosecuted by Helen Cooper, Special Assistant United States Attorney, as part of a partnership venture between the SSA Office of the General Counsel, Seattle Region and the United States Attorney’s Office in Portland, Oregon.

WASHINGTON – On October 20, 2016, Byron Chatfield, Assistant United States Attorney for the District of Oregon, received an Award of Excellence in Investigation from the Council of Inspectors General on Integrity and Efficiency (CIGIE) for his work on the investigation and prosecution of two corporate executives linked to a fatal 2008 wildland fire helicopter crash in the Shasta-Trinity National Forest near Weatherville, Calif.

On August 5, 2008, in the midst of the Iron Complex Fire, deteriorating weather conditions made it necessary to evacuate backcountry firefighters to safety. A helicopter owned and operated by Carson Helicopters, Inc. of Medford, Ore. was dispatched to the location. On a third pick-up attempt, the aircraft, overweight with fuel and passengers, crashed, killing nine and injuring four others. The crash was the deadliest wildland fire aviation disaster in United States history.

Assistant U.S. Attorney Chatfield, along with five other federal investigators, embarked on a seven-year investigation of the crash that led to the conviction and sentencing of two Carson Helicopter executives. The investigation proved that the executives had falsified documents detailing weight capacities and balance charts of their aircraft in order to win more $51 million in Forest Service contracts. All told, the investigation team conducted 246 witness interviews in five different countries, issued 84 trial subpoenas, executed 3 computer forensic exams, and amassed over 129,000 pages of evidentiary discovery.

“I applaud Byron and his colleagues’ extraordinary efforts to investigate, prosecute, and convict those responsible for this unthinkable tragedy” said Billy J. Williams, United States Attorney for the District of Oregon. “The work of Byron and team” continued U.S. Attorney Williams, “demonstrates the tremendous lengths those in our law enforcement community will go to bring justice to individuals responsible for similar acts of fraud.”

To learn more about the investigation and prosecution of this case, please visit: go.usa.gov/xk49g.

CIGIE is an independent entity established within the United States Executive Branch to address integrity, economy, and effectiveness issues that transcend individual government agencies and aid in the establishment of a professional, well-trained, and highly-skilled workforce in the Offices of Inspectors General. To learn more about CIGIE, please visit www.ignet.gov.

MEDFORD, Ore. – On Friday, October 14, 2016, U.S. Magistrate Judge Mark D. Clarke sentenced John Blayne Vangastel, 37, of Klamath Falls, to five years of probation following his guilty plea to one count of using force or threat of force to intimidate and interfere with the housing rights of his neighbors because of their Vietnamese descent.

According to court documents, on the evening of December 30, 2015, Vangastel, who had been living next door to the victims for approximately three months, entered the family’s property without permission. Vangastel then forcibly blocked the family’s front gate so they could not park their vehicles on the property after returning home from work. When one of the family members told Vangastel to let go of the gate and leave the property, Vangastel told the victim he would have to “push [him] off the property.” Vangastel then raised his hand in a balled fist as though he was going to physically assault one of the female family members. He further admitted to instigating a fight with the entire family, threatening to hit them, and making racially-charged comments.

The December 2015 incident was the culmination of Vangastel’s repeated intimidation of his neighbors, who had lived at their residence for twenty years without incident. As a result of Vangastel’s conduct and out of fear of continued abuse, the family moved from their home. 

“The United States Attorney’s Office is committed to protecting the civil rights and freedoms of all Oregonians,” said Billy J. Williams, United States Attorney for the District of Oregon. “Criminal threats of violence that target people and communities because of their national origin threaten the core values that define a fair and just society. We will continue to partner with the Justice Department’s Civil Rights Division to aggressively and effectively prosecute hate crimes throughout the state.”

“Everyone in this country has the right to peacefully occupy their homes without fear of violence or intimidation on account of their national origin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Harassing and threatening force against innocent individuals because of where they or their relatives were born is an affront to the fundamental values of this nation, and the Civil Rights Division will continue to prosecute individuals who commit violence motivated by such bias.”

This case was investigated by the Medford Resident Agency of the FBI’s Portland Division in cooperation with the Oregon State Police and Klamath County District Attorney’s Office. The case was prosecuted by William E. Fitzgerald, Assistant United States Attorney for the District of Oregon, and Special Litigation Counsel Fara Gold of the Justice Department Civil Rights Division’s Criminal Section.

EUGENE, Ore. – On Wednesday, October 12, 2016, U.S. District Judge Ann Aiken sentenced Barry Phillip Armstrong, 34, of Los Angeles, to 84 months in prison for felon in possession of a firearm and interstate transportation for prostitution. Following his prison sentence, Armstrong will be on supervised release for three years.

Armstrong was contacted by the Eugene Police Department on May 4, 2015, at a hotel in Eugene. Officers determined that Armstrong was acting as a pimp to a female who was engaging in commercial sex, and that Armstrong had transported her from California to Oregon for prostitution. A firearm was later located in a hidden compartment in Armstrong’s vehicle.

Based on Armstrong’s multiple prior felony convictions, he was charged with felon in possession of a firearm. Armstrong was on probation for a similar prostitution conviction in California at the time of his most recent offense. Other prior felony convictions include assault by means likely to produce great bodily injury.

The investigation of this case was a collaborative effort between the Eugene Police Department and the FBI. The case was prosecuted by Jeffrey Sweet, Assistant United States Attorney for the District of Oregon.

WASHINGTON – On Monday, September 26, 2016, Attorney General Loretta E. Lynch announced awards to establish and enhance law enforcement body-worn camera programs across the United States. Four Oregon law enforcement agencies are among 106 state, city, tribal, and municipal law enforcement organizations to receive funding from the grant program.

Washington County, Marion County, the City of Hillsboro, and Portland State University will receive a combined $511,864 dollars from the Body-Worn Camera Program. The program was launched in 2015 in response to a recommendation by the President’s Task Force on 21st Century Policing. Research conducted by the Justice Department’s Bureau of Justice Assistance (BJA) has shown that law enforcement use of body-worn camera programs improve interactions with the public. Over a two-year period, BJA has provided over $41 million to body-worn camera pilot implementation programs.

Billy J. Williams, United States Attorney for the District of Oregon, commended the local recipients of program funding and other Oregon law enforcement agencies committed to leveraging technology to strengthen relationships with their communities. “The principles of community-oriented policing,” Williams said, “require those of us in law enforcement to seek out new and innovative ways to build accountability with those we serve. Body-worn cameras and the local policies and procedures supporting them are an important tool to increase transparency and improve evidence collection both in Oregon and across the country.”

 “The body-worn camera federal grant program,” said Patrick Garrett, Washington County Sheriff, “will greatly help our organization test, develop, and implement body camera technology to enhance a deputy’s ability to gather evidence, increase transparency, and bolster public confidence. I am very grateful to the U.S. Attorney’s Office and Department of Justice,” Garrett continued, “for helping us implement this important program.”

“By outfitting our officers with body-worn cameras,” said Lee Dobrowolski, City of Hillsboro Police Chief, “we can demonstrate our commitment to transparency, build trust within the community, and document the good work our officers do every day.”

The Body-Worn Camera Program is funded under the Justice Department’s Office of Justice Programs (OJP). OJP provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. More information about OJP and its components can be found at www.ojp.gov.

WASHINGTON – On Monday, September 26, 2016, the Department of Justice announced the recipients of grants aimed at improving public safety, supporting victims, and strengthening legal institutions for American Indians and Alaska Natives. Five Oregon tribes and one tribal consortia are among the 131 grantees receiving funding under the Coordinated Tribal Assistance Solicitation (CTAS).

The Burns Paiute Tribe, the Confederated Tribes of the Grand Ronde Community of Oregon, the Confederated Tribes of the Umatilla Indian Reservation, the Coquille Indian Tribe, the Klamath Tribes, and the Columbia River Inter-Tribal Fish Commission will receive a combined $4,220,070 across six different Justice Department grant programs. Each of the six grant programs target a unique aspect of public safety and the administration of justice in tribal communities, including community-oriented policing, alcohol and substance abuse, violence against women, corrections and correctional alternatives, and juvenile justice.

“Research shows that tribal communities live with disproportionate rates of violence and victimization,” said Billy J. Williams, United States Attorney for the District of Oregon. “These awards are a positive step toward ensuring that all Oregonians have access to community justice programs that are adequately funded, effective, and culturally relevant.”

The Justice Department’s CTAS program provides a single application for tribal-specific grant programs and aims to streamline support provided by its Office of Community Oriented Policing Services, Office of Justice Programs, and Office on Violence Against Women. Since 2010, under CTAS, more than 1,600 grants totaling more than $726 million have been awarded to tribal communities across the country. To learn more about CTAS, please visit www.justice.gov/tribal/grants.

WASHINGTON – On Thursday, October 6, 2016, Billy J. Williams, United States Attorney for the District of Oregon, Captain Kevin Modica from the Portland Police Bureau, and Reverend Dr. LeRoy Haynes Jr. from the Albina Ministerial Alliance attended the inaugural Distinguished Service in Community Policing Awards Ceremony at the Justice Department’s headquarters in Washington, D.C.

U.S. Attorney Williams praised his guests’ hard work and commitment to community policing throughout the Portland area. “Community policing is founded in the commitment of both law enforcement and citizens working together to build trust and safer neighborhoods. I admire Captain Modica and Rev. Dr. Haynes’s leadership in building bridges between our law enforcement agencies and the communities they serve. True community-oriented policing,” Williams continued, “is not a goal that can be achieved overnight, but with the hard work of these two men and others in our community, I am confident that our work will be a success.”

Attorney General Loretta E. Lynch and Deputy Attorney General Sally Q. Yates delivered remarks at the inaugural event, along with Ronald Davis, Director of the DOJ Office of Community Oriented Policing Services (COPS). The Attorney General’s Award for Distinguished Service in Community Policing recognizes individual state, local or tribal sworn police officers and deputies who exemplify remarkable achievements in innovative community policing strategies, criminal investigations, and field operations.

The awards ceremony was held in conjunction with National Community Policing Week. During the week of October 2-8, 2016, the Justice Department will host nearly 400 events to support community policing efforts around the country. To learn more, please visit go.usa.gov/xkxEU.

EUGENE, Ore. – On Tuesday, October 4, 2016, U.S. District Judge Ann Aiken sentenced Julio Cabrera-Cardoza, 34, to 60 months in prison for possession with intent to distribute methamphetamine. Following his release from prison, Cabrera-Cardoza will be on supervised release for four years. On December 11, 2015, Judge Aiken sentenced Cabrera-Cardoza’s co-defendant, Haven Penselin, 55, to 60 months in prison and five years of supervised release for possession with intent to distribute methamphetamine and felon in possession of a firearm.

On May 23, 2013, an undercover officer arranged to purchase a pound of methamphetamine from Penselin. Penselin and Cabrera-Cardoza arrived at the agreed upon location and were contacted and searched. Cabrera-Cardoza had a pistol and two pounds of methamphetamine, one on his person and one in his vehicle. Penselin had a pistol, a scale, and packaging material in his vehicle. Cabrera-Cardoza, a repeat offender, was convicted in 2007 for possession of a controlled substance with intent to deliver.

The investigation of this case was a collaborative effort between the DEA, Springfield Police Department, and Linn County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.

PORTLAND, Ore. – On September 26, 2016, Billy J. Williams, United States Attorney for the District of Oregon, welcomed 45 high school students from the Chemawa Indian School’s Youth Peer Court Program to the U.S. Attorney’s Office in Portland for a day of interactive training on the principles of restorative justice. The Chemawa Youth Peer Court is a program designed to divert young, first-time offenders away from formal juvenile court proceedings into an informal peer-based process in a culturally appropriate setting.

The program is designed to incorporate components of restorative justice to hold youth accountable for their offenses and prevent future delinquency. The juvenile offenders assume responsibility for their behavior and accept the consequences of their actions through community service work, a punishment sanctioned by a peer court jury, and by serving on a future peer court jury themselves. 

U.S. Attorney Williams said that “in addition to giving the students a second chance, and a meaningful opportunity to make reparation, the Chemawa Youth Peer Court promotes self-esteem, motivation for self-improvement, and respect for the opinions of others. It also provides valuable challenges and opportunities for the peer court jurors to experience self-government and responsible citizenship.”

The distinguished faculty for the training included Warm Springs Tribal Judge Lisa Lomas, Tribal Prosecutor Nancy Seyler, and Tribal Juvenile Prosecutor Cecelia Collins; Marion County Deputy District Attorney David Wilson and Deputy Sheriff David White; Mr. Don Kelley, a Silverton-based attorney who brings more than a decade of volunteer experience with the Silverton Peer Court; Lewis and Clark Law School students Dayna Jones, Nic Sanchez, and Katie Gargan from the Native American Law Student Association; and the Chemawa Indian School’s Peer Court Coordinator Cynthia Schaeffer and Vice Principals Ryan Cox and Joel Chavez. Assistant United States Attorneys Suzanne Hayden, Jennifer Martin, and Paul Maloney organized the training and also served as faculty.

The Chemawa Indian School in Keizer, Oregon, is one of four off-reservation boarding schools for American Indians and Alaska Natives in the nation. Over 300 students from 19 states and more than 13 federally-recognized tribes attend the Chemawa Indian School. For more information about the school, please visit www.chemawa.bie.edu.

PORTLAND, Ore. – On Thursday, September 22, 2016, U.S. District Judge Michael H. Simon sentenced Adam Michael Groat, 28, of Gervais to seven years in federal prison and a life term of supervised release after Groat’s previous pleas of guilty to three counts of distributing child pornography, three counts of receiving child pornography, and one count of possession of child pornography.

Separate investigations by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) and the Federal Bureau of Investigation (FBI) revealed that Groat repeatedly traded numerous images of child pornography with various people online.  The HSI investigation revealed that Groat traded child pornography with an offender in Arizona who was the subject of another investigation. The FBI investigation revealed that Groat traded child pornography with a woman in Texas who was also the subject of another investigation. Forensic examinations of Groat’s computer equipment revealed hundreds of child pornography images and videos, including materials depicting prepubescent minors engaged in bestiality and sadomasochistic conduct.

At the sentencing hearing, Judge Simon noted that trading in child pornography has the effect of normalizing the sexual abuse of children.  He recognized the continuing harm to the children depicted in the images and video, and noted that the proliferation of child pornography assures that child sexual abuse will continue.  Judge Simon also stated that a civilized society must protect its most vulnerable members – its children.

Judge Simon imposed a lengthy and stringent list of conditions with which Groat must comply while on supervised release.  These include limitations on contact with minors, a requirement to undergo mental health and sex offender treatment, restrictions on where Groat may work and reside, and restrictions on computer usage and access to the Internet.  Groat will also be required to register as a sex offender.  Groat said he was “truly sorry and regretful” for his conduct.

“Trading in images of the sexual abuse of children is criminal, despicable, and cannot be tolerated in a civil society,” said Billy J. Williams, United States Attorney for the District of Oregon.  “The children shown in the images are victimized anew each time images of their abuse are uploaded, downloaded, traded, or viewed,” he added.  “By actively trading in those images, Adam Groat prolonged the harm each of the victims suffered,” Williams noted.  Groat’s sentence “should serve as a stern warning to anyone inclined to trade in child pornography that such actions cause serious harm and will result in serious consequences.”

The investigation was conducted by HSI and the FBI.  This case was prosecuted by Special Assistant U.S. Attorney Bumjoon Park and Assistant U.S. Attorney Gary Sussman, Project Safe Childhood Coordinator for the District of Oregon.

This case was brought as part of Project Safe Childhood, a nationwide initiative 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.

TIGARD, Ore. – On Thursday, September 22, 2016, leaders from public safety agencies and civil society organizations from across the Portland metropolitan area met to discuss barriers to building community trust and identify strategies for overcoming these challenges. The one-day summit was held at the Muslim Educational Trust (MET) in Tigard.

The event was the culmination of efforts by a diverse steering committee, established with the core purpose of developing trust and relationships in our communities amidst heightened tension and political rhetoric.

“The erosion of public trust in police, prosecutors, and judges within our judicial system poses a significant impediment to community trust, as well as the safety of community members and our law enforcement partners across the nation,” said Billy J. Williams, United States Attorney for the District of Oregon. “Oregon is not immune to the issues that create and perpetuate this lack of trust. This event is another step forward in building these critical relationships and ensuring the safety of all Oregon communities, and the law enforcement personnel who serve honorably to protect us.”

A series of panel discussions featured representatives from public safety and civil society organizations from across the region, including the Urban League of Portland, Latino Network, Unite Oregon, Catholic Charities of Portland, Portland Police Bureau, Washington County District Attorney’s Office, Washington County Sheriff’s Office, and U.S. Immigration and Customs Enforcement. Opening remarks were provided by MET President Wajdi Said and Washington County Sheriff Pat Garrett. The event’s keynote speaker was Dr. Shariff Abdullah, founder and president of the Commonway Institute.

For more information about the event, please contact MET Director of Public Relations Rania Ayoub at rania@metpdx.org, Washington County Sheriff Pat Garrett at Patrick_Garrett@co.washington.or.us, or Assistant U.S. Attorney Suzanne Hayden at Suzanne.Hayden@usdoj.gov.

EUGENE, Ore. – On Tuesday, September 20, 2016, Robert Dewane Lacey, 47, was sentenced to 49 months in prison by U.S. District Judge Michael J. McShane for possession with intent to distribute methamphetamine. Following his release from prison, Lacey will be on supervised release for three years.

On March 5, 2015, a Springfield Police Officer stopped a vehicle being driven by Lacey. The defendant initially lied about his identity before disclosing his true name and admitting that he was wanted. The vehicle was searched and several ounces of methamphetamine were located, along with more than $20,000 cash. Lacey has prior convictions including transporting or selling a controlled substance, felon in possession of a firearm, and second-degree burglary. Lacey’s 49-month federal sentence is in addition to a 14-month sentence he served on an unrelated state case.

Investigation of the case was a collaborative effort between the Springfield Police Department and the DEA. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.

SALEM, Ore. – For the 16th consecutive year, a unique financial crimes conference is being held in Oregon. The Financial Crimes & Digital Evidence Conference brings together fraud fighters from across the country to educate and build networks in an effort to effectively combat financial fraud.

On September 20, 2016, attendees will gather for a three-day conference at the Salem Convention Center to sharpen their financial fraud investigation and prosecution skills. Speakers will address emerging trends in financial and digital crime, including digital forensics, business email compromise scams, cyber credit card fraud, and tax refund schemes. Attendees will learn from case studies in the financial exploitation of elders, real estate fraud, and insurance scams. State and federal agencies will highlight the investigation resources their agencies offer in an effort to encourage partnership and improve outcomes.

Financial fraud results in billions of dollars of losses annually in the United States. Fraud investigators and prosecutors in Oregon are determined to reduce harm to consumers and to hold more offenders accountable.

The 2016 Financial Crimes & Digital Evidence Conference is sponsored by the U.S. Attorney’s Office and the Oregon Department of Justice. Event programming was developed by the Financial Crimes and Digital Evidence Planning Committee, comprised of federal, state, and local law enforcement, prosecution, and fraud investigation leaders and private sector partners.

The conference is open to all city, county, state, and federal law enforcement officers and prosecutors and other fraud investigation, auditing, and security personnel from both the public and private sectors who assist in the investigation of financial crime. For more information, please contact Donna Maddux  at donna.maddux@usdoj.gov or visit www.financialcrimesconference.com.

PORTLAND, Ore. – On Monday, September 19, 2016, U.S. District Judge Marco H. Hernandez sentenced Samuel Ira Dowell to 10 years in federal prison and 15 years’ supervised release after the defendant pleaded guilty to possession of child pornography. Dowell, 31, was on post-prison supervision following an Oregon state conviction for attempted first-degree sexual abuse when he committed the offense for which he was sentenced.

In the federal case, Dowell met a 13-year-old girl on an Internet website and exchanged sexually explicit correspondence with her online and by telephone for a period of time. They spoke of meeting in person, engaging in various sexual activities, and having children together. Dowell’s activities came to light after the victim’s mother discovered their communications and reported them to her local police department. Investigators identified Dowell and learned that he was a convicted sex offender living in Oregon. During a home visit, Dowell’s probation officer discovered evidence of his communications with the victim. A forensic examination of the defendant’s computer equipment revealed sexually explicit images and videos of the victim and other children. Dowell and the victim, who lives in another state, never met in person.

Judge Hernandez described the nature and circumstances of the offense as “horrible,” and Dowell’s history and character as “deeply disturbing.” Seeing Dowell as a danger to the community, particularly to children, Judge Hernandez imposed a lengthy and stringent list of conditions with which Dowell must comply while on supervised release. These include prohibitions on contact with minors (including the victim and her family), a requirement to undergo mental health and sex offender treatment, restrictions on where Dowell may work and reside, and restrictions on computer usage and access to the Internet. Dowell, who told Judge Hernandez that he was prepared to accept the consequences of his actions, will also be required to register as a sex offender.

“The defendant’s conduct in this case is alarming,” said Billy J. Williams, United States Attorney for the District of Oregon. “Dowell is a convicted sex offender who took advantage of a vulnerable adolescent girl he met online and continued to exploit her, even after her mother attempted to intervene. This sentence,” continued U.S. Attorney Williams, “is a significant sanction for very troubling behavior that we, as a society, are simply not willing to tolerate.”

The investigation was a collaborative effort on the part of the local police department in the victim’s hometown, the Multnomah County Department of Community Justice, the Multnomah County Sheriff’s Office, and the U.S. Department of Homeland Security, Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorney Gary Sussman, Project Safe Childhood Coordinator for the District of Oregon.

This case was brought as part of Project Safe Childhood, a nationwide initiative 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 Wednesday, September 21, 2016, leaders from local, state, and federal law enforcement and public health agencies will co-host “Taking Stock,” a roundtable discussion examining Oregon’s prescription opioid and heroin epidemic.

“The Department of Justice plays a critical role in building community coalitions to fight this epidemic, said Billy J. Williams, United States Attorney for the District of Oregon. This country is facing a crisis of heroin and opioid overdose deaths. We cannot arrest our way out of an epidemic that is causing such preventable loss of life. We must work together in Oregon to save lives through innovative partnerships between public safety and health. This event is a step forward in our effort to support a coordinated response across all elements of government and the private sector to address not only drug enforcement, but also prevention and treatment.”

The U.S. Attorney’s Office, Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), and the Oregon Department of Justice will meet with local law enforcement and public health leaders to discuss issues surrounding the crisis. Opening remarks will be provided by U.S. Attorney Williams and Oregon Attorney General Ellen Rosenblum. Participants will also have the opportunity to hear perspectives from the Oregon Medical Examiner’s Office, the Oregon High Intensity Drug Trafficking Area Program (HIDTA), the Tri-County Public Health Departments, Lines for Life, and the DEA.

The roundtable discussion will take place at the Oregon Department of Justice in Portland from 8:00AM to 12:00PM. Members of Oregon’s law enforcement and public health communities are invited to attend. For event information, please contact Suzanne Hayden, Assistant U.S. Attorney, at Suzanne.Hayden@usdoj.gov or (503) 727-1000.

This event is being held in conjunction with the National Prescription Opioid and Heroin Epidemic Awareness Week to raise awareness of the growing epidemic of opioid and heroin abuse in the U.S. For more information, please visit http://go.usa.gov/xKwCG.

PORTLAND, Ore. – On Monday, September 12, 2016, the daughter of a deceased Social Security beneficiary was sentenced to probation for stealing more than $48,000 of benefits mistakenly paid to her mother following her death. Michelle Lee Cox, 43, pled guilty to theft of government funds in May, and was sentenced by U.S. District Court Judge Michael H. Simon on Monday to five years’ probation.

According to court records, Cox’s mother was receiving Social Security benefits at the time of her death in 2009, at the age of 70. The mother’s death was properly recorded in government records, but Treasury checks continued to be mailed each month to the residence the mother shared with Cox. Cox deposited the checks to an account she had jointly owned with her mother and converted the funds to her own use. When Cox moved to Nevada in 2013, she directed the Social Security Administration (SSA) to electronically deposit the benefits to the bank account.

Among Cox’s conditions of probation were several financial conditions and the requirement that Cox participate in a mental health treatment program approved by her probation officer. Cox was also ordered to pay full restitution to the SSA in the amount of $48,700, and to perform 200 hours of community service.

The case was investigated by the SSA Office of the Inspector General, Office of Investigations, and was prosecuted by Special Assistant U.S. Attorney Helen Cooper as part of a partnership venture between the SSA Seattle Region, SSA Office of the General Counsel, and the U.S. Attorney’s Office in Portland, Oregon.