District of Oregon

EUGENE, Ore. – On Thursday, September 8, 2016, Scott Raymond Beard, 46, a former Deschutes County Sheriff Captain and resident of Deschutes County, Oregon, was sentenced to five years in prison by U.S. District Judge Michael J. McShane for stealing over $200,000 in public funds he was entrusted to manage. At least sixty-three times over a two-year period, Beard falsified records to steal money designated for use in combating drug crimes.  

At the sentencing hearing, Deschutes County Sheriff Shane Nelson attested to the damage Beard’s abuse of trust caused to the community, and to the men and women working in law enforcement. Sheriff Nelson explained that Beard “betrayed the ideals of the law enforcement profession. He was in a position of absolute trust, and he abused this trust for his own gain.”

Judge McShane acknowledged the importance of citizens being able to have complete trust in those called to serve their communities as police officers. When imposing the sentence, he admonished Beard that the community has to know that this conduct will not be tolerated. Judge McShane pointed to Beard’s pervasive violation of the public trust placed in him by Sheriff Nelson, fellow law enforcement officers, state prosecutors, and his own community.  Judge McShane further ordered Beard to serve three years of supervised release after he completes his prison term. 

During the investigation, Beard told federal agents that he donated $10,000 of the stolen money to a South African orphanage. Orphanage records show that his actual donation was less than $92. In reality, Beard laundered the money through the bank account of his mistress, Krista Jean Mudrick, showering her with cash to support a lifestyle that included vacations and multiple cosmetic surgeries for Mudrick.

The sentencing followed Beard’s May 2016 guilty plea to two counts of theft concerning programs receiving federal funds and two counts of money laundering. An audit ordered by newly appointed Sheriff Nelson uncovered Beard’s crimes. After a federal grand jury returned an indictment against Beard and Mudrick, the Sheriff’s office fired him. Mudrick has also been federally charged with making materially false statements to federal agents investigating Beard’s crimes.  

U.S. Attorney Billy J. Williams said “Law enforcement officers who steal public funds harm the entire community. We rely on the honesty and integrity of every law enforcement officer to do the right thing. Beard’s greed undermined the good work done by his fellow officers and this sentence sends a clear signal that crimes committed by law enforcement officers will be prosecuted to the full extent of the law.”  Special Agent in Charge Darrell Waldon of IRS Criminal Investigation commented that “Criminals are sentenced to prison every day for actions driven by greed, but the level of greed that Beard sunk to is really beyond belief. This is an individual who, as a member of the law enforcement community, took an oath to uphold the law.”

The FBI and IRS-CI jointly investigated this case and it was prosecuted by Assistant U.S. Attorneys Christopher Cardani and Frank R Papagni, Jr.   

EUGENE, Ore. – On Tuesday, September 6, 2016, U.S. District Judge Ann Aiken sentenced Terry Shockley, 63, to fifty-one months in prison following his April 2016 guilty plea to two counts of wire fraud. Shockley admitted to defrauding clients and investors through his now-defunct property management company, TS Property Management (TSPM).

Over the past two decades, TSPM grew to be a trusted rental and property management resource for Eugene property owners and students alike. When payments Shockley owed his clients began to run late and complaints were made to the Oregon Real Estate Agency, the true financial health of the company began to unravel. The investigation revealed that Shockley struggled with financial issues and was operating under insurmountable debt. He ran TSPM like a Ponzi scheme and also used client money to fund the purchase of a second home in La Pine, Oregon, as well as other lifestyle expenses.

TSPM was an influential local business in Eugene and attracted clients and investors not only from Lane County, Oregon, but from across the country and internationally. U.S. Attorney Billy J. Williams said, “The collapse of TSPM sent shockwaves throughout the Eugene community as property owners learned that a trusted adviser had taken advantage of their faith in his business and in him. This sentence reflects the severity of the defendant’s crimes and the degree to which he exploited individuals in his community and elsewhere for his own financial gain.”

Shockley admitted that his actions resulted in the loss of over $4.5 million to his clients and investors and agreed to entry of a restitution order reflecting those losses. He also admitted to specific details of his scheme, which included operating the company under materially false pretenses while claiming that client money was held in trust and that TSPM was thriving financially.

The case was investigated by the FBI and the Oregon Real Estate Agency and prosecuted by Assistant U.S. Attorney Nancy M. Olson.

PORTLAND, Ore. – On Thursday, September 8, 2016, U.S. District Judge Michael H. Simon sentenced Steven Douglas Rockett to 60 years in federal prison followed by a life term of supervised release. Rockett, 47, was convicted by a federal jury in Portland, Oregon for producing child pornography outside the United States, engaging in illicit sexual conduct in foreign places, producing and attempting to produce child pornography (five counts), and possession of child pornography after a seven-day trial in May of this year.

Prosecutors presented victim impact statements from Filipino child victims as well as statements from Rockett’s victims in Oregon. The prosecutors urged the Court to impose a sentence of no less than 60 years – 45 consecutive to Rockett’s 52.5-year sentence in Oregon State court for crimes committed against a number of different victims. Rockett’s attorneys requested the mandatory minimum sentence of 15 years, imposed to run concurrently with Rockett’s state sentence, which is presently on appeal. “One of civil society’s most important duties and obligations is to protect the most vulnerable among us. Children are the most vulnerable,” observed Judge Simon before agreeing with the prosecution’s recommendation and sentencing Rockett to 60 years – 45 to be served consecutive to the Rockett’s state sentence.

Judge Simon noted that these were “extremely serious offenses.”  He expressed doubt that Rockett could refrain from committing further crimes if released from prison. Judge Simon imposed a sentence designed to ensure that Rockett would not harm any other children stating, “I don’t think you are capable of restraining yourself.”

The evidence presented at trial established that Rockett traveled to the Philippines, where he sexually abused Filipino children, and produced or attempted to produce child pornography depicting them. The evidence also established that Rockett solicited children (either directly or through a parent) both in the Philippines and in Oregon, to take and send him sexually explicit images of themselves. In addition, Rockett surreptitiously recorded children undressing and showering at his residence in Forest Grove, at a former residence in Aloha, and in hotel rooms in the Philippines.

The investigation was a collaborative effort on the part of the Forest Grove Police Department, the Washington County Sheriff’s Office, and the FBI. Investigators executed search warrants at Rockett’s residence, and seized computer equipment and digital data storage devices. Investigators found a pin-hole camera hidden in a wall in a guest bathroom, which Rockett used to record images of naked children. Another spy camera, hidden inside a clock radio, contained surreptitious video recordings of naked Filipino children in the bathroom and shower of Rockett’s hotel room. Rockett appeared in some of the videos.

FBI Special Agents traveled to Cebu City, Philippines, where they identified and interviewed some of the victims depicted in the videos, and some of the children who Rockett solicited to send him sexually explicit images. The jury heard testimony from seven victims who were sexually abused or exploited by Rockett in Oregon and overseas. The jury deliberated several hours before reaching their verdict.

“This sentence is a just and deserving punishment for a dangerous sexual predator, and reflects the life-long impact his conduct will have on his victims,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I am grateful for the dedication and collaboration between the federal government and our state and local partners who diligently followed the evidence in this case, and for their continued efforts to keep children safe here in Oregon and outside the United States.” Williams added, “We will not tolerate American citizens traveling abroad to sexually abuse children. Child sexual predators like Steven Rockett must understand that the sexual exploitation of children carries severe consequences, as Judge Simon’s sentence clearly demonstrates.”  

“Effectively, Steven Rockett will, rightfully, live the rest of his life behind bars. I would ask the community to remember that the innocent children who suffered his abuse will also pay a heavy price for many years to come,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “No child deserves to live a life of violence and violation, and it is our responsibility to bring justice to them and their families.”

This case was investigated by the Forest Grove Police Department, the Washington County Sheriff’s Office, the FBI, the Northwest Regional Computer Forensics Laboratory, and the Washington County District Attorney’s Office. Assistant U.S. Attorneys Paul T. Maloney and Gary Y. Sussman prosecuted the case in federal court.

This case stemmed from a coordinated investigation by members of the FBI Child Exploitation Task Force and 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.

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

PORTLAND, Ore. – On Wednesday, September 7, 2016, the grandson of a deceased Social Security beneficiary was sentenced to prison for stealing more than $294,000 of benefits mistakenly paid to his grandmother following her death. Ricky Lee Carlson, 63, pled guilty to theft of government funds in May, and was sentenced by U.S. District Court Judge Marco A. Hernandez to 12 months and one day in prison.

According to court records, Carlson’s grandmother was using two different names and Social Security numbers at the time of her death in 1986. The Social Security Administration (SSA) was notified of the death under one identity, but her benefits continued to be paid each month under the other identity. In April 1995, Carlson opened a bank account in his grandmother’s name, and directed SSA to deposit her benefits into that account. Carlson then converted the funds to his own use by writing checks payable to himself, paying bills, and making ATM withdrawals. Between March 1986 and December 2013, Social Security benefits in the amount of $303,960.60 were improperly paid on the grandmother’s behalf. When SSA discovered the theft, only $9,518 remained in the account.

Carlson was ordered to surrender to the Bureau of Prisons to begin his sentence on January 17, 2017. The court also ordered him to pay restitution to SSA for the full amount of benefits stolen, and to serve a three-year term of supervised release.

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.

PORTLAND, Ore. – On Tuesday, August 30, 2016, U.S. District Judge Robert E. Jones sentenced Christopher Guillen-Robles to 151 months in prison followed by five years of supervised release, and entered a money judgment of $150,000 against the defendant. The sentencing followed the defendant’s earlier guilty pleas to conspiracy to distribute and possess with intent to distribute heroin and conspiracy to commit money laundering.

Agents of the U.S. Drug Enforcement Administration (DEA) and other partner agencies arrested Guillen-Robles and over 20 co-defendants in February 2015 after an investigation which began in mid-2014. Through a complex investigation, involving a lengthy set of wiretaps, agents determined that Guillen-Robles led a drug trafficking group that was importing black tar heroin from the state of Nayarit in Mexico to the Portland area and then distributing it to other cells operating in Oregon. The group was also involved in significant money laundering through bulk cash smuggling, wire transfers, and bank deposits, with the cash proceeds of heroin distribution eventually going to Mexico. The investigation involved several large seizures of heroin and cash.

U.S. Attorney Billy J. Williams said, “This case demonstrates the sophistication and means by which Nayarit-based enterprises have flooded the Portland area with black tar heroin and the immense monetary profits involved in their illegal drug activity. It comes at a time when Oregon and the rest of the United States are experiencing an epidemic of opiate addiction, abuse, and overdose deaths. The sentence recognizes the seriousness of this activity and the importance of the investigation and prosecution.”

The investigation was led by DEA Portland with significant contributions made by the drug teams of the Portland Police Bureau Drugs and Vice Division, Clackamas County Interagency Task Force, Westside Interagency Narcotics Team, and U.S. Department of Homeland Security.

The case was prosecuted by Assistant U.S. Attorneys Thomas H. Edmonds and Steven T. Mygrant.

PORTLAND, Ore. – The former legal guardian for his cognitively disabled cousin, was sentenced to 30 months’ imprisonment for stealing more than $570,000 in annuity payments that were intended for the cousin’s care. Michael R. Braun, 68, was sentenced by U.S. District Court Judge Anna Brown on Monday for his commission of wire fraud that was ongoing for more than 22 years. Braun was also ordered to pay $573,604 restitution and serve a three-year term of supervised release.

According to court records, prior to 1984, Braun’s cognitively-disabled cousin, A.M., was residing with his parents in California. A.M.’s father was a retired Navy commander, and had purchased an annuity through the Defense Finance and Accounting Services (DFAS) on behalf of A.M. in the event of the father’s death. In 1984, when A.M. was 22 years-old, both of A.M.’s parents died within a few months of each other. Braun, then 37 years old, was appointed as the legal guardian of A.M., and brought A.M. to Oregon. As A.M.’s legal guardian, Braun became the recipient of the DFAS annuity payments on A.M.’s behalf, and was required to use the payments for A.M.’s care, and to notify DFAS if he was no longer A.M.’s guardian.

Shortly after bringing A.M. to Oregon in 1984, defendant placed A.M. in the Fairview Training Center, and defendant thereafter had limited contact with him. Social service notes from 1984 state that "The Brauns are [A.M.’s] only family and are very concerned and active people." Case-worker notes in 1989 state that Braun had not been very involved with A.M.

In 1990, Braun was discharged as A.M.’s guardian by the Circuit Court of Washington County; however, Braun failed to notify DFAS that he had been removed as A.M.’s legal guardian. Between January 1990 and February 2013, Braun submitted a Certificate of Eligibility to DFAS each year certifying he was A.M.’s legal guardian, when in fact he knew he was not and knew he was not using the annuity payments for A.M.’s care. Additionally, in 1998, Braun directed DFAS to deposit A.M.’s annuity payments directly into Braun’s bank account. As a result of Braun’s repeated false statements and concealments, DFAS continued to deposit A.M.’s annuity payments each month into Braun’s own bank account, with the payments ranging from $1,500 to $2,700.

Between January 1990 and December 2012, Braun received $573,604 in annuity payments which he converted to his own use.

A.M. has resided in residential facilities for the past 30 years with only Social Security benefits as income.

According to court records, A.M.’s current guardian was alerted to the fraud when A.M. received a notice from the Internal Revenue Service advising A.M. that taxes were owed on A.M.’s income. After further inquiry, the guardian learned of the substantial annuity payments that A.M. had not received and notified police.

Braun pleaded guilty to the theft in March and argued for a probationary sentence with home detention.

In its court filings, the government argued for a prison sentence, stating that Braun’s criminal conduct was ongoing for more than 22 years, and that since his guardianship of A.M. was terminated in 1990, he had stolen his cousin’s benefits more than 250 times as he repeatedly converted A.M.’s funds to his own use each month. The government further argued that Braun had taken advantage of his cousin’s vulnerability and inability to communicate while betraying the trust of his cousin, uncle, and DFAS.

The government further stated "one of a parent’s greatest fears is whether a surviving child will be properly cared for in the event of the parent’s death. Defendant’s uncle took great measures to ensure that his son – who would require life-long care – had sufficient funds and a trusted family member to care for him. In return, defendant abandoned his cousin financially as well as emotionally, at a time when A.M. had no other family to care for him."

During the sentencing proceedings, the court heard from A.M.’s current Guardian Care Manager who stated he was saddened by the many missed possibilities for A.M. because of his limited resources, and questioned the quality of life A.M. could have had if he had received the funds that were intended for his special needs.

While imposing the sentence, Judge Brown described the repetitive nature of the offense and stated that she had "not seen anything comparable" to Braun’s fraud during her years as a judge and seeing many fraudulent schemes. Judge Brown also stated that the extraordinary breach of trust warranted a prison sentence, and that a probationary sentence would not reflect the seriousness of the offense.

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

 

PORTLAND, Ore – U. S. Attorney Billy J. Williams, Deschutes County District Attorney John Hummel and the Oregon District Attorneys Association, announced that former Oregon State Police Forensic Scientist Nika Larsen, 36, of Bend, Oregon, pleaded guilty today in federal court, to using her position as a 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. Facts of the crime are set forth in court documents filed today. This prosecution resolves any potential state charges stemming from this criminal conduct.

Larsen appeared in court today and, pursuant to a plea agreement, pleaded guilty to two counts of obtaining a controlled substance by misrepresentation, fraud and deception. U. S. District Judge Anna J. Brown presided over Larsen’s guilty plea and will sentence her on December 12, 2016 at 2:00 p.m. The parties are jointly recommending the Judge impose a 36-month term of incarceration followed by a term of supervised release with conditions, including community service.

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

MEDFORD, Ore – Jeffrey Scott Bettman, 57, of Medford, Oregon, was sentenced yesterday by U.S. District Judge Ann Aiken to 25 years in prison, based on his January 2016 guilty pleas to eleven counts of sexual exploitation of a minor, and one count of distribution, receipt and possession of child pornography.  At the sentencing hearing, some of Bettman’s former gymnasts and their parents testified about the emotional trauma Bettman’s crimes caused them.  At the conclusion of the hearing, Judge Aiken followed the prosecution recommendation and sentenced Bettman to 25 years in prison, to be followed by supervised release for the rest of his life.  The court also ordered the forfeiture of the laptop computers, camera and other equipment Bettman used to commit his crimes.

Bettman, who worked as a gymnastics coach for over 36 years in Oregon and California first came to the attention of law enforcement during an online undercover investigation in which he offered to share images of child pornography that he downloaded from the internet.  On November 2, 2012, a search warrant was executed at Bettman’s residence.  Bettman admitted that he worked on the side as a photographer and had secretly recorded his young gymnasts with a hidden camera while they were changing for photo shoots.  During a review of DVDs seized from Bettman’s residence, law enforcement discovered 469 hidden camera videos of 49 identified gymnastic students ranging in age from 8-16 years old, along with 220 still images created from the videos.  Most of the victims were completely nude during the changing process, and the still images made by Bettman focused on the victims’ genitalia.

Bettman also admitted that he possessed, received and distributed images of child pornography via the internet.  While there was no evidence that Bettman distributed the pornographic images of the gymnasts he covertly videotaped, Bettman admitted that he did distribute images of child pornography that he downloaded from the internet.

“People in positions of trust have a special duty to protect our children, and Bettman, a gymnastics coach, violated that duty,” said Billy J. Williams, United States Attorney for the District of Oregon.  “Thanks to the dedication of an amazing team of law enforcement agents, and Assistant U. S. Attorneys working with dedicated victim-witness advocates from the U.S. Attorney’s Office, defendant, Bettman, finally faced his day of reckoning for two decades of horrific sexual abuse conduct.  People who abuse children are too often able to manipulate and scare their victims in order to avoid detection.  The sentence handed down by the Honorable Judge Ann Aiken should send a clear message to everyone in the community—abuse our vulnerable children and you will be held accountable.”

This case was investigated by the Southern Oregon High Tech Crimes Task Force, the Medford, Grants Pass and Klamath Police Departments, and the Federal Bureau of Investigation.  Assistant U.S. Attorneys Judith Harper and Amy Potter prosecuted the case.

MEDFORD, Ore. – Christopher Alan Page, 32, of Talent, Oregon was sentenced Thursday to 36 months in federal prison by U.S. District Judge Michael J. McShane after his convictions for bank fraud, aggravated identity theft and unlawful possession of ammunition by a felon.  The sentence included a mandatory consecutive term of two years’ imprisonment required by federal law because a victim’s identification was possessed or used in committing bank fraud.  Page was also ordered to pay over $50,000 in restitution.

In February 2015, Page stole mail from more than 100 mailboxes in rural Josephine County, Oregon.  Page was identified when a citizen confronted Page while he was in the process of stealing mail and took video of the confrontation with his cell phone.  When Page was arrested, the police seized multiple credit cards and checks in the names of numerous mail theft victims.  Authorities also seized large quantities of stolen mail, fraudulent debit/credit cards, stolen identity profiles, a credit card embossing machine, a credit card reader and several boxes of ammunition.  Authorities also found a victim profile list, containing personal identifying information, that Page had created

The investigation determined that Page attempted to steal more than $275,000 in 54 separate fraudulent credit card transactions made using his Square, Inc. account, although most of those transactions were identified as fraudulent before Page was able to obtain the funds.  Page has prior criminal convictions for burglaries, unauthorized use of a vehicle, recklessly endangering another person, possession of heroin and attempting to elude police on several occasions. 

This case was investigated by the Grants Pass Department of Public Safety and the U.S. Postal Inspection Service and prosecuted by Assistant U.S.  Attorney Byron Chatfield.

http://www.oregon.gov/oha/bhp/Pages/Oregon-Performance-Plan.aspx

“The Oregon Health Authority’s implementation of the Performance Plan expands services and opportunities for adults with serious and persistent mental illness,” said U.S. Attorney Billy J. Williams.  “The Plan will assist individuals to live in the most integrated setting appropriate to their needs, achieve positive outcomes, and prevent unnecessary institutionalization.  Additionally, we hope that these services will assist Oregon Sheriffs and local law enforcement in reducing the number of volatile interactions with persons with SPMI, and help in diverting them to effective community services. We thank the State for its cooperation throughout this unique collaborative process and for its commitment to improve the lives of all Oregonians.”

Update (4/23/2018):

In March 2018, the U.S. Attorney’s Office dismissed all charges against the following defendants:

Rawshetta Tyneshia Patterson

Audrey Marie Zimmerman

James Edward Gill, Jr.

Renee Smith

Chrystal Jimelle Davis

---

 

PORTLAND, Ore. – A federal grand jury sitting in Portland, Oregon returned a 39-count indictment against Julie Ann Demille, 58, of Clackamas, Oregon, a nurse practitioner licensed in Oregon, Osasuyi Kenneth Idumwonyi, 55, of Spring, Texas, her office manager, and a total of 17 other coconspirator defendants in a case involving a conspiracy to engage in the illegal dispensation and distribution of the prescription opiates oxycodone and hydrocodone from the Fusion Wellness Clinic located at 2442 SE 101st Avenue, Suite 205, Portland, Oregon 97233.   In a second related case, Idumwonyi and two other coconspirators were charged separately with conspiracies to distribute oxycodone.  (See charging documents attached; list of defendants and ages at end of this release.) 

The indictments state that the Fusion Wellness Clinic was a business established by Idumwonyi and Demille, from which Demille began issuing controlled substance prescriptions in January of 2015.  Idumwonyi was living in Spring, Texas during the time of the offense conduct and flew weekly from Houston to Portland to assist with running the clinic operations.  Demille lived at a residence in Estacada, Oregon during the time of the offense conduct.  In addition to the overall conspiracy to dispense and distribute prescription opiates, the defendants are charged with multiple counts of distribution of oxycodone.  Demille is also charged with two counts of making false statements to the Drug Enforcement Administration.  Demille, Idumwonyi, and numerous other defendants charged in the two indictments, were arrested on Wednesday morning, July 27, 2016. 

The federal charges arise after a 15-month, DEA led investigation in coordination with the Oregon State Board of Nursing.  As alleged in the indictment, Demille and Idumwonyi are accused of working together to provide oxycodone and hydrocodone prescriptions for a $200 per visit cash fee, to coconspirator defendants, outside the scope of professional practice and not for a legitimate medical purpose.  During the time the Fusion Wellness Clinic was in operation, Demille prescribed opiates to approximately 400 clinic customers.

“The unlawful dispensation and distribution of any controlled substances, especially addictive opiates such as oxycodone and hydrocodone, is a priority for the Department of Justice,” said U.S. Attorney Billy J. Williams.  “We are committed to our partnership with federal, state, and local law enforcement, as well as state regulatory authorities, to hold responsible anyone who threatens the safety of our community through such conduct.”

“Rogue pain clinics facilitate the destruction of lives through drug abuse, addiction and even death,” said DEA Special Agent in-Charge Keith Weis.  “This is a national crisis as we are losing record numbers of Americans from prescription drugs, heroin, and fentanyl overdoses.  DEA works every day to attack those drug traffickers who prey on victims of addiction and facilitate drug trafficking-related violence in our communities.”

There is Crisis Line assistance available 24/7 for anyone in an addiction or mental health crisis who needs support or help finding an addiction or mental health provider in the Tri-County area as follows:

Multnomah County Crisis Line, 503-988-4888

Clackamas County 503-742-5335

Washington County 503-291-9111

Lines for Life is a 24-hour referral service at 800-273-8255, or  http://www.linesforlife.org.

DEA is working to educate local communities as part of a DEA 360 Strategy.  This strategy involves not only enforcement, but engaging with drug manufacturers, wholesalers, doctors and nurse practitioners to increase awareness of the opioid epidemic and encourage responsible prescribing.  In addition, DEA is working with community partners to empower them with the tools to fight this epidemic.  These partners include parents, caregivers, schools, after school organizations, faith-based organizations, the local business community and workplace, social services, the media, and prevention and treatment professionals, among others.

Local citizens can also assist DEA with tips by texting anonymously TIP411 (847411) and beginning your message with TIPDEA.

The unlawful dispensation and distribution of oxycodone and hydrocodone carries a maximum sentence of 20 years in prison and a fine of $250,000.  An indictment is only an accusation of a crime, and all defendants are presumed innocent unless and until proven guilty.

The agencies participating in the investigation are the Drug Enforcement Administration, the Portland Police Bureau, and the United States Marshal’s Service.  The case is being prosecuted by Assistant U.S. Attorney Patrick J. Ehlers.

Defendants / Ages / Community of Residence:

Julie Ann Demille

58

Clackamas, OR

Osasuyi Kenneth Idumwonyi

55

Spring, TX

Brandi Elaine Elwood

33

Portland, OR

Jermaine Lamar Scott

39

Beaverton, OR

Brandon La’Chon White

45

Portland, OR

Preston Bethoven Thomas

37

Portland, OR

Ann Leashell Preston

45

Portland, OR

Rawshetta Tyneshia Patterson

35

Portland, OR

Leron Lamar Richards

32

Vancouver, WA

Jeron Lamont Richards

32

Portland, OR

Audrey Marie Zimmerman

30

Portland, OR

James Edward Gill, Jr.

33

Portland, OR

Renee Smith

54

Portland, OR

Arthur Allen Hayes, Jr.

36

Portland, OR

Ruben Lewis, IV

42

Portland, OR

Chrystal Jimelle Davis

32

Gresham, OR

Frederick Lee Washington

60

Portland, OR

Martin Andrew Menefee

34

Portland, OR

John Edward Cox, Jr.

55

Portland, OR

DeWayne Taylor

63

Portland, OR

PORTLAND, Ore. – The former practice manager for Eye Care Services, Inc. appeared in federal court yesterday and admitted to his role in defrauding Medicare and other public and private health care plans and conspiring to defraud the Internal Revenue Service (IRS).  Anthony Curtis Neal, 40, pled guilty to health care fraud and conspiracy to defraud the IRS before U.S. District Judge Robert E. Jones and admitted that he, along with his deceased father, Dr. Dean Neal, committed health care fraud and tax related crimes between 2007 and 2014.  According to the plea agreement, the government will be seeking a sentence of imprisonment and restitution to Medicare, private insurers and the IRS.  The actual sentence will be determined by Judge Jones at Anthony Neal’s sentencing hearing which is scheduled for January 4, 2017.

Court records indicate that Anthony Neal worked as the practice manager for Eye Care Services Inc., dba 20/20 Eye Care, an ophthalmology clinic located at 500 NW 20th Suite 100, Gresham, Oregon.  Neal worked in conjunction with his father, Dr. Dean Neal, the long-time primary doctor at Eye Care Services (ECS).   In addition to serving as the practice manager, Neal was primarily responsible for the insurance billing services.  He, along with his father, managed the practice, established testing protocols for patients, and set all business related polices.

Anthony Neal admitted the health care fraud scheme involved three false and fraudulent components:  billings for medically unnecessary tests, up-coded billings, and double billings.  To increase income, ECS required that many patients receive a battery of diagnostic tests, many of which were not medical necessity.  Claims for these medically unnecessary tests were submitted to Medicare and private insurers for reimbursement.  Neal also engaged in a practice of up-coding certain tests by claiming ECS was entitled to a higher than warranted reimbursement rate.  Finally, ECS was supposed to be paid one amount for tests performed on both eyes, but it fraudulently submitted bills to health insurance plans that resulted in ECS being paid twice, once for each eye.  The government alleges the loss attributable to the health care fraud scheme is $1,702,567.89.

As to the conspiracy to defraud the IRS, Anthony Neal admitted to conspiring to conceal ECS income from the IRS and he failed to report business or personal income to the IRS for tax years 2006 – 2013.  The government alleges the loss attributable to the tax conspiracy scheme is $817,378.77.

The case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General, the FBI, and the Internal Revenue Service – Criminal Investigation.  The case is being prosecuted by Assistant U.S. Attorneys Donna Brecker Maddux and Seth Uram.

EUGENE, Ore. – Nicholas Jacobson and his twin brother Matthew Jacobson, 30, of Jackson County Oregon, were sentenced to prison on Wednesday, July 20, 2016, by U.S. District Judge Ann Aiken for conspiracy to distribute 100 grams or more of heroin.  Nicholas Jacobson was sentenced to 97 months in prison, and Matthew Jacobson was sentenced to 78 months in prison.  Following their release from prison, both defendants will be on supervised release for five years.

In July 2014, the Douglas Interagency Narcotics Team (DINT) and the DEA began investigating the Jacobson brothers who were well known to DINT as having been involved in dealing heroin in Douglas and Jackson counties for years.  Assisted by a confidential informant, DINT and the DEA began making controlled buys of heroin from the Jacobson brothers, who lived in Jackson County on a large rural property.

A search warrant was executed at the Jacobsons’ property in Jackson County on October 9, 2014.  Approximately four pounds of heroin and $20,000 was located, along with body armor, night vision googles and 17 firearms.  The firearms—most of which were loaded—included multiple assault rifles and pistols, along with extended capacity magazines.  Most of the heroin and firearms were located in the main residence where Nicholas lived, although a large amount of heroin paraphernalia, $1237 and two pistols were located in Matthew’s trailer.  Law enforcement determined that the brothers worked together to deal heroin but that Nicholas had more involvement than Matthew.

Within a month after being charged in federal court and placed on pre-trial release, the Jacobsons absconded.  They were arrested four months later in Medford, Oregon at a residence where officers also found approximately six ounces of heroin and $10,000.

The investigation of this case was conducted by the Douglas Interagency Narcotics Team and the Drug Enforcement Administration, with assistance by the Medford Area Drug and Gang Enforcement Task Force.  The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.

PORTLAND, Ore. –U.S. District Judge Robert E. Jones sentenced Todd Alan Nelson, 51, of Salem, Oregon, on July 12, 2016, to a mandatory minimum of 10 years in prison for possession with the intent to distribute methamphetamine, followed by a consecutive five-year mandatory minimum sentence for possession of a firearm during and in relation to a drug offense, for a total of 15 years in prison.  The court also ordered Nelson to serve 10 years of supervised release when released from custody.

In October 2014, DEA agents and detectives with the Salem Police Department identified Nelson as a source of supply for methamphetamine.  In December2014, agents obtained search warrants to search Nelson’s car, house and a storage locker located in Keizer, Oregon.  Nelson’s car contained over 1,981 grams of methamphetamine, scales, $9,700 in cash, and a 9mm handgun with an obliterated serial number.  Inside Nelson’s home they found more methamphetamine, packaging materials, a stolen 9mm Sig Sauer P225, and scales.  In the storage locker, agents seized several additional pounds of methamphetamine, packaging materials and a loaded 9mm Czech 75d handgun.  In all, agents seized approximately 17 pounds of methamphetamine and three handguns.

Nelson meets the criteria for a career offender under the United States Sentencing Guidelines because he committed new drug trafficking and violent offenses and has two prior drug delivery convictions from 2003 and 2006.  At the time of his arrest for the current offense, he was being supervised by the Marion County Circuit Court due to a prior conviction.

The investigation of the case was led by the DEA, through its Salem DEA Drug Task Force, and the Salem Police Department.  The case was prosecuted by Assistant U.S. Attorney Kemp Strickland.

MEDFORD, Ore. – Sean Jeffrey Haga, 31 of Bandon, Oregon, was indicted by a federal grand jury and charged with two counts of sexual exploitation of children, one count of transportation of child pornography, and a forfeiture allegation.  If convicted of sexual exploitation of children, the maximum penalty is 30 years in prison and a 15-year mandatory minimum.  Transportation of child pornography carries a maximum sentence of 20 years in prison and a five-year mandatory minimum sentence. 

Haga is employed as an Educational Assistant at Bandon High School.  He also works as Bandon High School’s track coach and Bandon Junior High School’s Basketball coach.    The defendant is scheduled to be in Federal Court for an initial appearance on the charges on Monday, July 11, 2016.

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

The case is being investigated by the FBI and Assistant U.S. Attorney Judith Harper is handling the prosecution of this case.

PORTLAND, Ore. – A former employee of the Deschutes County District Attorney’s Office and the Oregon Department of Justice appeared in federal court this week and admitted to stealing more than $55,000 from the Department of Veterans Affairs, U.S. Department of Agriculture, and U.S. Department of Health and Human Services.  Bruce A. Endicott, 34, pled guilty to theft of government funds before U.S. District Court Judge Robert E. Jones on Tuesday, and admitted he committed the theft over a course of more than three years. 

According to court records, Endicott began receiving service-connected disability benefits through the Department of Veterans Affairs (VA) in 2005.  In June 2012, Endicott filed an additional claim with the VA for Individual Unemployability benefits, claiming he was unemployed and unable to be employed due to his service-connected disabilities that included physical and mental impairments.  Endicott also submitted a statement to the VA in February 2013, that stated he had not worked within the past 12 months. 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 (DHS), using the second Social Security number, and claimed to have no income.  Endicott failed to disclose to DHS that he was receiving approximately $2,700 per month in VA benefits.  Based on Endicott’s false statements and concealments, DHS awarded him Supplemental Nutrition Assistance Program (SNAP) (formerly known as food stamps) and Temporary Assistance to Needy Family (TANF) benefits.

In February 2015, Endicott submitted a statement to the VA regarding his Individual Unemployability (IU) claim, in which he failed to disclose his former employment with the Deschutes County District Attorney’s Office, and 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.

According to the plea agreement, the government will be seeking a 30-day term of imprisonment.  The actual sentence will be determined by Judge Jones at Endicott’s sentencing hearing which is scheduled for October 5, 2016.        

The case was investigated by the Criminal Investigations Division of the Veterans Affairs Office of Inspector General, the Oregon Department of Human Services, and the Social Security Administration Office of the Inspector General, Office of Investigations.  The case is being prosecuted by Special Assistant United States Attorney Helen Cooper as part of a partnership venture between the Seattle Region, SSA Office of the General Counsel and the U.S. Attorney’s Office in Portland, Oregon.

EUGENE, Ore. – Steven Lee Simmons, 37, a resident of Harney County, Oregon, was sentenced on Monday, June 27, 2016, to four years in prison by U.S. District Judge Michael J. McShane, for being a felon in possession of a firearm, specifically a .22 caliber pistol.  Simmons pled guilty on March 28, 2016. 

On July 13, 2015, employees working at a bar in Burns, Oregon called 911 when Simmons arrived at the bar with a loaded pistol tucked in his waistband and repeatedly announced his threat to kill a man who had assaulted his girlfriend.  Before Harney County deputies arrived, Simmons left the bar with his stepmother and with the pistol still in his possession.  The stepmother took the pistol from Simmons and he was arrested shortly thereafter.  Deputies later retrieved the pistol along with 500 rounds of ammunition.

At the time of his arrest, Simmons had 23 prior convictions and was on state probation.  His 11 felony convictions included robbery, burglary, an attempt to elude police, two thefts, two unauthorized use of cars, escape, unlawful possession of methamphetamine, and being a felon in possession of firearms.  Simmons also had 17 misdemeanor convictions, including several assaults.

Judge McShane referred to Simmons’ extensive criminal history and risk to reoffend before imposing the four-year prison term and a three-year term of supervision after he is released from prison.

The investigation of this case was conducted by the Bureau of Alcohol, Tobacco and Firearms and the Harney County Sheriff’s Office.  It was prosecuted by Assistant U.S. Attorney Frank R. Papagni, Jr., with the assistance of Harney County District Attorney Tim Colahan.

MEDFORD, Ore –Ronnie Lester Bishop, 44, of Grants Pass, Oregon, was sentenced today by U.S. District Judge Ann Aiken, in Medford, Oregon to five years of probation for violating the Archeological Resource Protection Act (ARPA).  The sentence was imposed based on defendant’s guilty plea entered on February 8, 2016, to a felony charging him with violating ARPA by excavating, removing and damaging an archaeological resource located on federal land.  In entering the guilty plea, Bishop admitted that between April 2013 and June 2014, he violated ARPA by digging on federal land managed by BLM and causing damage to a known archaeological resource.  Bishop was documented excavating and removing items from the site on at least 21 different days between April 2013 and June of 2014.

While on probation, Bishop will be banned from lands managed by BLM, U.S. Forest Service, National Park Service, Bureau of Indian Affairs and the U.S. Fish & Wildlife Service.  Bishop was ordered to pay $ 9,871.49 in restitution for costs associated with restoring the archaeological site he damaged and perform 150 hours of community service.  Bishop also forfeited over 700 archaeological items seized from his residence during a search warrant executed in June 2014.  

“These archeological resources are of particular significance to the tribal communities, and the looting of these resources has a harmful impact on those communities,” said U.S. Attorney Williams.  “We will aggressively pursue those individuals who commit these violations of law.”  ARPA protects archaeological resources on public and Indian lands.  It provides felony-level penalties for unauthorized excavation, removal, damage, alteration, or defacement of any archaeological resource, which is defined as material remains of past human life or activities that are at least 100 years old.  The archaeological resource at which Bishop committed his crime is located on federal land along the Rogue River which has served as several permanent Native American villages for over 8,000 years.  

This case was investigated by the Bureau of Land Management, the Grants Pass Police Department, and the Southern Oregon High Tech Crimes Task Force.  Assistant U.S. Attorneys Tim Simmons and Judi Harper prosecuted the case.

EUGENE, Ore. – Anthony Dominic Whiley, 27, a former resident of Douglas County, Oregon, was sentenced by U.S. District Judge Ann Aiken to a six-year prison term for being a felon in possession of firearms.  In January 2016, Whiley, pled guilty to possessing three stolen guns after having been previously convicted in 2008 for burglarizing and attempting to burglarize residences in Snohomish County, Washington. 

On December 21, 2013, Douglas County deputies responded to a call of burglary in progress at a home in Glide, Oregon.  Deputies arrived and arrested a man and woman, but were informed that a third suspect, identified as Whiley, had fled.  Later that night, a deputy spotted Whiley walking on a rural road and attempted to arrest him. Whiley ran off the road into a river and fled into the darkness.  Three loaded stolen handguns were found near nearby.  Whiley was subsequently found and arrested for the burglary a few hours later.  In conjunction with the burglary charges brought by the Douglas County District Attorney’s Office, Whiley disclosed where he had hidden ten other stolen firearms. 

On February 19, 2014, Whiley was indicted on federal firearm charges.  The United States Attorney’s Office and the Douglas County District Attorney’s Office worked together in achieving a joint resolution of Whiley’s federal and state charges.

The investigation of this case was conducted by the Bureau of Alcohol, Firearms and Tobacco and the Federal Bureau of Investigation.  It was prosecuted by Assistant U.S. Attorney Frank R Papagni, Jr. with the assistance of Douglas County District Attorney Rick Wesenberg.

EUGENE, Ore. – Miguel Angel Reyna-Ramos, 38, was sentenced to serve 72 months in federal prison after pleading guilty to possession with intent to distribute 50 grams, or more, of a mixture and substance containing methamphetamine.

The defendant was stopped by police in May 2015 while driving on Interstate 5 near Medford, Oregon.  The defendant did not have a driver’s license and also admitted the car he was driving was not registered to him.   After the defendant declined consent to search, a narcotics detection dog was deployed.   The dog alerted to 2 kilograms of heroin and 8 kilograms of methamphetamine in the car’s luggage compartment.       

In handing down the sentence, U. S. District Judge Michael McShane considered the defendant’s background, including his lack of prior arrests, and the nature and circumstances of the crime, including the quantity of methamphetamine and heroin.   Judge McShane noted that, as an illegal alien, the defendant would most likely be deported after serving his prison sentence.

This case was investigated by the Oregon State Police and the DEA.  Assistant U.S. Attorney William “Bud” Fitzgerald prosecuted the case.

WASHINGTON – Assistant U.S. Attorney Byron Chatfield of the U.S. Attorney’s Office in the District of Oregon was one of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.

The District of Oregon was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges.   From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases.  And the citizens of our country are safer because of their work.”

“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson. 

Chatfield was nominated for and received the Director’s Award for Superior Performance as an Assistant United States Attorney (Criminal) for his work in the prosecution of Carson Helicopter, Inc. executives, Steven Metheny and Levi Phillips, and their conspiracy to commit mail and wire fraud and making false statements in defrauding the United States Forest Service.  Following a firefighting helicopter crash that caused the deaths of nine people, and severely injured four others, Chatfield led the team who discovered a complex trail of lies made by Metheny and Phillips.  His persistence revealed that the defendants submitted helicopter contract bids to the Forest Service with falsified weight and balance charts and that they altered Federal Aviation Administration (FAA) performance charts.  These charts were used by the Forest Service in determining whether Carson’s helicopters met minimum contract payload specifications.  Contracts in the amount of $51 million were awarded to Carson due to the falsified documents, and it received nearly $19 million dollars before the Forest Service discovered the fraud and cancelled Carson’s contracts.

“Byron Chatfield’s work on this extraordinarily difficult case was exemplary,” said U.S. Attorney Billy J. Williams.  “He and the team of investigators spent countless hours unraveling the fraud and tackled challenge after challenge in a scheme extremely complex and masterfully concocted.  But because of Byron’s strong belief in justice and his determination to hold the two corportate executives personally responsible for their deceit, the victims' families of this tragedy gained a measure of crucial closure.  We as an organization are extremely proud of Byron as a member of the U.S. Attorney family. We salute his courage, dedication, and determination to see that justice is done on a daily basis.”

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

From left: U.S. Attorney Billy J. Williams and Assistant U.S. Attorney Byron Chatfield

PORTLAND, Or - A federal jury sitting in Portland, Oregon, after a six-day trial, found three family members who ran two strip clubs in the Portland area – Cabaret Lounge I at 503 W Burnside Street and Cabaret Lounge II at 17544 SE Stark Street – guilty of conspiracy to defraud the IRS and charges relating to filing false tax returns.

From 2007 through mid-2011, the defendants’ strip clubs collected more than $1.5 million in cash door charges and dancer stage fees. The defendants maintained a set of books at the Cabaret clubs that did not include the $1.5 million in stage fees and door fees and kept a second set of books, which tracked all of the cash receipts, including the stage and door fees, at the home of David and Marci Kiraz. 

IRS Special Agents executed search warrants at the strip clubs and at the residence of David and Marci Kiraz, and seized 85 banker boxes of records and all the files on 11 computers. IRS Special Agents then spent over 600 hours reviewing these records, located the second set of books, and proved David Kiraz filed false tax returns.

David Kiraz reported the business activity of the strip clubs each year on his individual income tax returns. The defendants gave their tax return preparers the false books maintained at the strip clubs, intentionally causing the return preparers to create tax returns for David Kiraz that did not report between $330,000 and $460,000 in door fees and stage fees each year.  In this way, the defendants evaded $500,000 in income taxes for tax years 2007 through 2010.

The jury convicted David G. Kiraz, 34, of Happy Valley, his father George D. Kiraz, 56, of Portland, and David’s brother Daniel Kiraz, 31, of Portland, of conspiring to defraud the IRS by filing false federal income tax returns for David Kiraz. The jury also found David Kiraz guilty of three counts of filing false tax returns, George Kiraz guilty of three counts of aiding and assisting in the preparation and filing of false tax returns, and Daniel Kiraz guilty of one count of aiding and assisting in the preparation and filing of a false tax return. The jury acquitted Marci Kiraz, wife of David Kiraz.

Sentencing is scheduled August 30, 2016, before Senior U.S. District Court Judge Robert E. Jones for the District of Oregon in Portland.  Each defendant faces a statutory maximum sentence of five years in prison on the charge of conspiracy to defraud the IRS and three years in prison on the charges of filing false tax returns and aiding and assisting in the preparation and filing of false tax returns.  They also face a maximum term of three years of supervised release and a maximum fine of $250,000 on each count.

"Every business is required to pay its fair share of taxes," said U.S. Attorney Billy J. Williams.  “This office, in partnership with the IRS, will vigorously investigate and prosecute business owners who take advantage of the cash-intensive nature of their businesses to conceal income from the IRS and cheat on their taxes.”

This case was investigated by special agents with IRS-Criminal Investigation in Portland, Oregon and prosecuted by Trial Attorney Leslie A. Goemaat of the Justice Department’s Tax Division and Assistant U.S. Attorneys Seth D. Uram and Quinn P. Harrington for the District of Oregon.

PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, announced that a federal jury in Portland found Steven Douglas Rockett, 47, of Forest Grove, guilty of producing child pornography outside of the United States, engaging in illicit sexual conduct in a foreign country, five counts of producing or attempting to produce child pornography, and possession of child pornography.  U. S. District Judge Michael H. Simon presided over the seven day trial, which concluded on May 24, 2016.  It is the first foreign sex tourism trial held in Oregon.  A sentencing hearing is scheduled for August 30, 2016.

The evidence presented at trial established that Rockett traveled to the Philippines, where he sexually abused Filipino children, and produced or attempted to produce child pornography depicting them.  The evidence also established that Rockett solicited children (either directly or through a parent) both in the Philippines and in Oregon, to take and send him sexually explicit images of themselves.  In addition, Rockett surreptitiously recorded children undressing and showering at his residence in Forest Grove, at a former residence in Aloha, and in hotel rooms in the Philippines.

The investigation was a collaborative effort on the part of the Forest Grove Police Department, the Washington County Sheriff’s Office, and the Federal Bureau of Investigation.  Investigators executed search warrants at Rockett’s residence, and seized computer equipment and digital data storage devices.  Investigators found a pin-hole camera hidden in a wall in a guest bathroom, which Rockett used to record images of naked children.  Another spy camera, hidden inside a clock radio, contained surreptitious video recordings of naked Filipino children in the bathroom and shower of Rockett’s hotel room.  Rockett appeared in some of the videos.

FBI Special Agents traveled to Cebu City, Philippines, where they identified and interviewed some of the victims depicted in the videos, and some of the children who Rockett solicited to send him sexually explicit images.  The jury heard testimony from seven victims who were sexually abused or exploited by Rockett in Oregon and overseas.  The jury deliberated several hours before reaching their verdict.

“This verdict is a testament to the dedication and hard work of federal, state, and local authorities who diligently followed the evidence in this case,” Williams said.  “It is a shining example of interagency cooperation in the hard fight to keep children safe here in Oregon and outside the United States.  It is vindication for the courageous child victims who spoke out against their abuser.”  Williams added, “This verdict serves notice to all sexual predators that we will pursue you wherever you commit your crimes and wherever you hide – whether on the internet, in the shadows of our community, or abroad.”

The investigation was hindered by Rockett’s use of computer encryption and disc-wiping software.  As a result, investigators cannot be certain that they have identified all of Rockett’s child victims.

This case was investigated by the Forest Grove Police Department, the Washington County Sheriff’s Office, the Northwest Regional Computer Forensics Laboratory, the Washington County District Attorney’s Office, and the FBI, and was prosecuted in federal court by Assistant United States Attorneys Paul T. Maloney and Gary Y. Sussman, Project Safe Childhood Coordinator for the District of Oregon.

This case was brought as part of Project Safe Childhood, a nationwide initiative 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. – The grandson of a deceased Social Security beneficiary admitted to stealing more than $300,000 of benefits mistakenly paid to his grandmother following her death.  Ricky Lee Carlson, 63, pled guilty to theft of government funds before U.S. District Court Judge Marco Hernandez on Monday, and admitted he committed the theft over a course of 27 years. 

According to court records, Carlson’s grandmother was using two different names and Social Security numbers at the time of her death in 1986.  The Social Security Administration (SSA) was notified of the death under one identity, but her benefits continued to be paid each month under the other identity.  In April 1995, Carlson caused a bank account to be opened in his grandmother’s name, and directed SSA to deposit her benefits into that account.  Carlson then converted the funds to his own use by writing checks payable to himself, paying bills, and making ATM withdrawals.  Between March 1986 and December 2013, Social Security benefits in the amount of $303,960.60 were improperly paid on the grandmother’s behalf.

According to the plea agreement, Carlson is agreeing to serve 12 months and one day in jail, although the actual sentence will be determined by Judge Hernandez.  Carlson’s sentencing hearing is scheduled for September 7, 2016.

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

EUGENE, Ore – Former Deschutes County Sheriff’s Office Captain Scott Raymond Beard, 46, of Bend, Oregon, pleaded guilty today to four felony offenses related to an embezzlement scheme where he stole $205,000 in taxpayer funds and laundered some of the tainted cash.  The government alleges Beard laundered the cash to pay expenses on behalf of his co-defendant, Krista Jean Mudrick, 35, of Bend, Oregon.  Mudrick is also a former employee of the Deschutes County Sheriff’s Office and is charged with making false statements to the FBI and IRS about Beard’s expenditures of the ill-gotten gains.  Her case is pending, and she is presumed innocent.

Beard appeared in court today and, pursuant to a plea agreement, pleaded guilty to two counts of theft of funds from a federally funded program, and two counts of money laundering.  A related count, passport fraud, was dismissed.

United States District Judge Michael McShane presided over Beard’s guilty plea and will sentence him on August 23, 2016.  Beard faces up to twenty years in prison and will pay full restitution to Deschutes County.

This case was investigated by the FBI, IRS-Criminal Investigation, and the Deschutes County Sheriff’s Office.  Assistant U.S. Attorney Christopher Cardani is prosecuting the case.

WASHINGTON – An Oregon woman pleaded guilty today to one count of conspiracy to defraud the government with respect to claims, one count of wire fraud and one count of aggravated identity theft for running a federal income tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Billy J. Williams of the District of Oregon and Special Agent in Charge Teri Alexander of the Internal Revenue Service – Criminal Investigation (IRS-CI).

Danyelle Calcagno, 41, admitted to filing at least 224 false federal income tax returns that fraudulently claimed a total of $1,220,246 in tax refunds, generally between $3,500 and $7,000 per return.  Calcagno filed the fraudulent tax returns using Internet access at Portland-area hotels to disguise the source of filing.  Calcagno filed the false tax returns using the names and social security numbers of other individuals obtained directly and through recruiters, including Latisha L. Simmons, 36, of Phoenix, Arizona.

Calcagno directed the IRS to deposit the income tax refunds into bank accounts and onto stored value debit cards that she could access and control in order to divide the proceeds of the fraud and make it more difficult for law enforcement to identify Calcagno as the filer of the false tax returns.  Calcagno received at least $25,000 in fraudulently obtained income tax refunds into her own bank accounts.

Calcagno faces a statutory maximum sentence of 10 years in prison on the conspiracy charge, 20 years in prison on the wire fraud charge and a mandatory term of two years in prison on the aggravated identity theft charge, which will be in addition to any other term of imprisonment she receives.  Calcagno also faces financial penalties and a term of supervised release.  As part of her plea agreement, Calcagno agreed to pay restitution to the IRS in the amount of $742,754.

In October 2015, Simmons was sentenced to 39 months in prison after pleading guilty to one count of wire fraud, one count of false claims against the government and one count of aggravated identity theft.  According to her plea agreement, Simmons filed more than 50 false tax returns with the IRS that fraudulently claimed more than $400,000 in refunds.

Acting Assistant Attorney General Ciraolo, U.S. Attorney Williams and Special Agent in Charge Alexander thanked special agents of IRS-CI, who investigated this case and Trial Attorney Leslie A. Goemaat of the Tax Division and Assistant U.S. Attorney Quinn P. Harrington of the District of Oregon, who are prosecuting the case.

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

John Blayne Vangastel, 37, of Klamath Falls, Oregon, pleaded guilty today in the District of Oregon to one count of using threats of force to injure, intimidate and interfere with his neighbors in the enjoyment of their housing rights because they are a family of Vietnamese descent.

According to court documents, on the evening of Dec. 30, 2015, Vangastel, who had been living next door to a family of Vietnamese descent for approximately three months, entered the family’s property without permission.  Vangastel admitted that he then forcibly blocked their front commercial gate so that family members could not park their vehicles on their property after returning from work.  When one of the family members told Vangastel to let go of the gate and get off of the family’s property, Vangastel told the family member to “push [him] off the property.”  He then raised his hand and balled up his fist as though he was going to assault one of the female family members.  Vangastel further admitted that he then repeatedly tried to instigate a fight with the rest of the family, threatening to hit them and making comments like, “You are trash;” “You are not even white;” and “You smell like salmon-fish.”  He also told the family something to the effect of, “I’ll beat you because you are Asian,” and “You [expletive] Vietnamese – you don’t deserve to live here.”

The incident was the culmination of Vangastel’s repeated intimidation of his neighbors, who had lived at their residence for 20 years without incident.  As a result of Vangastel’s conduct, the family became so fearful that they moved out of their home.

“Our country guarantees all people the right to live in their homes without fearing violence or intimidation because of their national origin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “Threatening force against people because of where they or their relatives come from violates our civil rights laws and offends our values of human dignity, decency and respect.  As this conviction shows, the Department of Justice will continue to aggressively and effectively prosecute hate crimes.”

“This case exemplifies the powerfully negative impact of bigotry and xenophobia,” said U.S. Attorney Bill J. Williams of the District of Oregon.  “It is the moral obligation of every citizen to promote tolerance and diversity in our communities so that no one is subjected to intimidation or assault because of their heritage.   The U.S. Attorney’s Office, with our partners at the Civil Rights Division, are dedicated to protecting the civil rights of all Oregonians.  We will vigorously investigate and prosecute hate crimes to obtain justice for victims of unlawful discrimination.”

A sentencing hearing has not yet been set.

This case is being investigated by the FBI Portland Division’s Medford Resident Agency in cooperation with the Oregon State Police and the Klamath County District Attorney’s Office.  The case is being prosecuted by Assistant U.S. Attorney William E. Fitzgerald of the District of Oregon and Trial Attorney Fara Gold of the Civil Rights Division’s Criminal Section.

WASHINGTON – John Blayne Vangastel, 37, of Klamath Falls, Oregon, pleaded guilty today in the District Court of Oregon to one count of using threats of force to injure, intimidate and interfere with his neighbors in the enjoyment of their housing rights because they are a family of Vietnamese descent.

According to court documents, on the evening of Dec. 30, 2015, Vangastel, who had been living next door to a family of Vietnamese descent for approximately three months, entered the family’s property without permission.  Vangastel admitted that he then forcibly blocked their front commercial gate so that family members could not park their vehicles on their property after returning from work.  When one of the family members told Vangastel to let go of the gate and get off of the family’s property, Vangastel told the family member to “push [him] off the property.”  He then raised his hand and balled up his fist as though he was going to assault one of the female family members.  Vangastel further admitted that he then repeatedly tried to instigate a fight with the rest of the family, threatening to hit them and making comments like, “You are trash;” “You are not even white;” and “You smell like salmon-fish.”  He also told the family something to the effect of, “I’ll beat you because you are Asian,” and “You [expletive] Vietnamese – you don’t deserve to live here.”

The incident was the culmination of Vangastel’s repeated intimidation of his neighbors, who had lived at their residence for 20 years without incident.  As a result of Vangastel’s conduct, the family became so fearful that they moved out of their home. 

“This case exemplifies the powerfully negative impact of bigotry and xenophobia,” said Oregon’s U.S. Attorney, Billy J. Williams.  “It is the moral obligation of every citizen to promote tolerance and diversity in our communities so that no one is subjected to intimidation or assault because of their heritage.   The U.S. Attorney’s Office, with our partners at the Civil Rights Division, are dedicated to protecting the civil rights of all Oregonians.  We will vigorously investigate and prosecute hate crimes to obtain justice for victims of unlawful discrimination.”

“Our country guarantees all people the right to live in their homes without fearing violence or intimidation because of their national origin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “Threatening force against people because of where they or their relatives come from violates our civil rights laws and offends our values of human dignity, decency and respect.  As this conviction shows, the Department of Justice will continue to aggressively and effectively prosecute hate crimes.”

A sentencing hearing has not yet been set.

This case is being investigated by the FBI Portland Division’s Medford Resident Agency in cooperation with the Oregon State Police and the Klamath County District Attorney’s Office.  The case is being prosecuted by Assistant U.S. Attorney William E. Fitzgerald of the District of Oregon and Trial Attorney Fara Gold of the Civil Rights Division’s Criminal Section.

EUGENE, Ore. – A local marijuana proprietor, Eric Scully, 32, of Lane County, has pleaded guilty before U.S. District Judge Michael McShane in the District of Oregon for engaging in money laundering and using a fictitious name on a U.S. Postal Service shipping account.

According to the plea agreement, Scully admitted to engaging in a monetary transaction involving more than $10,000 of criminally derived proceeds, as well as creating a fictitious U.S.P.S. Click-N-Ship account for use in shipping packages of marijuana to multiple states.  The Information sets forth the details of the underlying illegal marijuana distribution operation, which involved growing large quantities of marijuana in Eugene and then illegally distributing it through a covert mail operation, shipping packages to a number of states that have not passed state laws relating to medical and/or recreational marijuana use.  It further details how Scully laundered the proceeds by operating behind the veil of a coffee kiosk purporting to be a legitimate business.  Throughout the course of the operation, Scully used the unlawful proceeds gained from interstate marijuana sales to amass a variety of assets that will be criminally forfeited to the government as part of the plea agreement.  Scully faces a statutory maximum sentence of 10 years in prison for the money laundering count, and up to five years for the fictitious name count. 

Also charged in the case are Joan Scully, 62, and Krystin Livingston, 34, of Lane County.  Joan Scully pleaded guilty to structuring deposits of drug proceeds to avoid financial reporting requirements, and Livingston pleaded guilty to using the fictitious U.S.P.S. shipping account.  Sentencing for all three defendants will take place on September 8, 2016, at 2:30 p.m. in Eugene. 

The Federal Bureau of Investigation and the Interagency Narcotics Enforcement Team (INET), along with assistance from the U.S. Postal Inspection Service, investigated this case.  The case is being prosecuted by Assistant U.S. Attorney Nancy M. Olson.

EUGENE, Ore. – Justin Longworth, 36, of Lane County, Oregon, was sentenced yesterday by U.S. District Judge Ann Aiken to 94 months in prison for the crimes of felon in possession of a firearm and possession with intent to distribute methamphetamine.  Following his release from prison, Longworth will be on supervised release for three years.

On July 8, 2015, Eugene Police Department officers arrested Justin Longworth on a warrant.  Officers found an unloaded 9mm pistol, approximately a half-ounce of methamphetamine, a scale, and drug packaging materials in Longworth’s backpack. 

Longworth’s prior convictions include felon in possession of a firearm, unlawful use of a weapon, manufacture of a controlled substance, attempt to elude and unauthorized use of a motor vehicle. 

The investigation of this case was conducted by the Federal Bureau of Investigation and the Eugene Police Department.  The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.

PORTLAND, Ore. – Yesterday, U.S. District Court Judge Anna J. Brown sentenced Jack Holden, 76, of Eugene, Oregon, to 87 months in prison, restitution of $1,410,760, and a special assessment of $1,500 for his role in a fraudulent biodiesel scheme that spanned three continents.  Holden was convicted of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, mail and wire fraud, and money laundering, after a three-week federal trial in October 2015.  His codefendant, Lloyd Benton Sharp, aka Kevin Thomas, 81, pled guilty to conspiracy to commit mail and wire fraud in November 19, 2014, and was sentenced to 60 months in prison on April 17, 2015. 

Between July 2007 and September 2013, Holden and coconspirator Sharp conspired to defraud 12 investors in a project to produce biodiesel fuel in the West African nation of Ghana.  When the investment project failed, Holden and Sharp continued to defraud the same investors by soliciting additional funds for a non-existent project to transport biodiesel fuel from Argentina to Chile, and to build biodiesel refineries in Chile.  Holden and Sharp targeted a Christian men’s group in West Linn, Oregon as part of the fraud scheme.      

Holden and Sharp falsely told investors that $350,000 was needed to set up a biodiesel plant in Ghana, purchase feedstock for the plant, and bring in an engineer to oversee the operation.  They falsely promised that the Ghana refinery would be up and running within two months of receiving the investment funds.   Holden and Sharp falsely told investors that if they each made a $50,000 investment, they would each receive a return of $7,000 per month for an indefinite period of time as soon as the biodiesel refinery was operational.  They also told victims that their investments would help fund humanitarian projects, like building roads and schools in the poor nation of Ghana.  Investors were promised that they could get 100% of their money back at any time.  The victims in this case sent investment funds to Holden and Sharp via mail or interstate wire transfers.  Rather than using the investment funds to produce and sell biodiesel fuel in Ghana as promised, Holden and Sharp spent the money on their personal expenses. 

When investors inquired of Holden and Sharp why the Ghana refinery was not operating, the two claimed they had a more promising investment opportunity in Chile, and that a successful investment in Chile would provide sufficient funds to get the Ghana refinery operational.  Holden and Sharp solicited and received additional funds from investors for the Chile projects by falsely promising that for $100,000 they would double their investment and receive a return of funds within 120 days.  After the Chile investments were made, Holden and Sharp stole the money, and again used it for their personal benefit. 

Between the Ghana and Chile projects, 12 investors lost approximately $1.47 million. 

U.S. Attorney Billy J. Williams said, “Individuals who use deception to bilk investors out of their hard-earned money in fraud schemes such as this will be prosecuted to the full extent of the law.  We are grateful to the U.S. Postal Inspection Service and the Oregon Division of Financial Regulation for their vigilance in prosecuting this case and in protecting the public from fraud.”

Tony Galetti, Inspector in Charge, Seattle Division, U.S. Postal Inspection Service stated, “The U.S. Postal Inspection Service makes consumer fraud investigations one of our top priorities.  The cooperation between the Oregon Division of Financial Regulation, the U.S. Attorney’s Office, and the U.S. Postal Inspection Service in the prosecution of Holden and Sharp resulted in a great victory for Oregon consumers.  The fraud perpetrated by the defendants in this case is the worst kind of fraud, in that they exploited the trust of innocent victims, in some cases stealing life savings.  The U.S. Postal Inspection Service continues, in collaboration with our regulatory and law enforcement partners, to tirelessly identify and root out consumer fraud involving the U.S. Mail which affects the American public.”

The case was investigated by the U.S. Postal Inspection Service and the Oregon Division of Financial Regulation (formerly DFCS).  Assistant U.S. Attorneys Claire M. Fay and Donna B. Maddux prosecuted the case.

PORTLAND, Ore. – United States Attorney Billy J. Williams announced that Holiday Acquisition Corp. and Fortress Investment Group, LLC (collectively Holiday) agreed to pay $8.86 million to resolve alleged False Claims Act violations for submitting false claims to the United States Department of Veterans Affairs (VA) to qualify veterans or a surviving spouse of a veteran for monthly benefits from the Aid and Attendance Program, announced U.S. Attorney Billy Williams.

The settlement resolves a lawsuit brought under the qui tam provisions of the False Claims Act by Sheila and Louis Rose, who worked as managers at several of the Holiday Retirement properties.  The Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery.  Under the civil settlement announced yesterday, Mr. and Mrs. Rose will receive approximately $1.5 million out of the federal share of the recovery.  The lawsuit is captioned United States of America ex rel. Sheila Rose and Louis Rose v. Fortress Investment Group, LLC. et al., Case Number 3:13-cv-00314-MO. 

The Holiday suit alleged that the defendants violated the False Claims Act by engaging in a number of fraud schemes related to VA program benefits.  Specifically, the Relators allege that the named defendants knowingly assisted veterans or their surviving spouses in completing and submitting false claims for veteran’s benefits under the Aid and Attendance and Housebound Benefits program.  The named defendants expressly denied the allegations in the suit and did not admit any liability in reaching the settlement.

The Holiday settlement was based on a claim in the suit which alleged that false statements were made about the services provided by the defendants’ facilities which caused the VA to determine a veteran was eligible for aid and attendance benefits, when in fact, the veteran was not eligible and the benefits should not have been paid.

“Pursuing corporations who engage in fraud remains a top priority of the U.S. Attorney’s Office and the Department of Justice,” said U.S. Attorney Billy Williams.  “We are committed to holding them accountable for profiting at the expense of taxpayers and taking advantage of our nation’s veterans.”

This settlement illustrates the government’s emphasis in combating fraud and followed shortly after another settlement in a health care fraud case against Hung Viet Tran.  In March 2016, Tran paid $825,000 to resolve Medicare and Medicaid fraud claims.  The scheme involved billing for prescription drugs that he never dispensed, dispensing generic medications and billing for the more expensive brand name, and dispensing Costco brand fish oil but billing for brand name prescription Omega 3 fatty acids.  In addition to the settlement amount, Tran will also be excluded from participating in all Federal health care programs for fifteen years. The Tran settlement was a joint investigation with the U.S. Attorney’s Office for the District of Oregon and the Oregon Department of Justice - Medicaid Fraud Unit.  The state Department of Justice prosecuted the criminal case and the U.S. Attorney’s Office prosecuted and settled the civil matter.

“Nationally, losses caused by fraud amount to tens of billions of dollars every year,” said Williams. “These settlements are an example of the hard working lawyers in this office and our resolve to hold accountable those who commit fraud.  For that reason, we will work with our state and federal partners to uncover these fraudulent activities and recover those losses through the False Claims Act.”

The Holiday matter was investigated by the U.S. Attorney’s Office for the District of Oregon and the Department of Veteran’s Affairs, Office of Inspector General. 

Both of these civil fraud investigations and settlements were resolved through the efforts of the Affirmative Civil Enforcement (ACE) Unit in the United States Attorney’s Office.  The ACE Unit is led by Division Chief Katie Lorenz and Assistant United States Attorney Neil J. Evans.

PORTLAND, Ore. - Two Malaysian nationals pled guilty to conspiring to smuggle wildlife today after they used mail parcels to smuggle five orangutan skulls and nine other protected species of wildlife, including bear claws and macaque skulls, into the District of Oregon.

Eoin Ling Churn Yeng, 35, and Galvin Yeo Siang Ann, 33, both Malaysian citizens, admitted before U.S. District Judge Robert E. Jones to conspiring to smuggle wildlife into the District of Oregon from 2008 through 2015.  Following their guilty pleas the Court immediately sentenced them to six months in prison and fines totaling $25,000.00.  Each defendant was also ordered to perform 240 hours of community service and will be required to serve one year of supervised release after his prison term.

The investigation into Ling and Yeo began in 2013, when a routine search of an international package revealed a helmeted hornbill mandible that was being shipped to a residence in Forest Grove, Oregon. Helmeted hornbills are listed as endangered under the Endangered Species Act (ESA) and protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Agents with the U.S. Fish and Wildlife Service (Service) initiated an undercover operation named “Operation Pongo,” for the orangutan genus Pongo.  The investigation revealed that Ling and Yeo were co-owners of an online business that has smuggled approximately $95,000 worth of endangered wildlife into the U.S. since 2004. 

Undercover Service agents communicated with Ling and Yeo and purchased three orangutan skulls, four helmeted hornbill skulls, one CITES-protected rhino hornbill head, one ESA-protected babirusa (wild pig) skull, one CITES-protected langur skull, and one ESA-protected dugong (marine mammal) rib over the course of the operation.  In December 2015, Ling and Yeo traveled to Portland to meet an associate, but agents with Service and the National Oceanic and Atmospheric Administration arrested them soon after their arrival.

“I commend all the agencies that played a role in this successful investigation and prosecution,” said U.S. Fish and Wildlife Service Deputy Chief Edward Grace. “Orangutans are one of the rarest great ape species on Earth, and the desire to possess a skull from one as tourist art or trophy in someone's collection will not be tolerated.  The Service will continue to fully investigate and bring to justice those individuals who continue to perpetrate criminal acts involving orangutans and other protected wildlife species.”

Operation Pongo was conducted by the U.S. Fish and Wildlife Service, which received assistance from the Office of International Affairs, Environmental Crimes Section of the Environment and Natural Resources Division, U.S. State Department, FBI Legal Attaché in Kuala Lumpur, National Oceanic and Atmospheric Administration, Bureau of Land Management, and the Multnomah County Sheriff’s Office.  The case was prosecuted by Assistant U. S. Attorney Ryan W. Bounds.

EUGENE, Ore. – On April 19, 2016, Clemente Pineda, 28, of Ontario, Oregon, was sentenced by U.S. District Judge Ann Aiken to 60 months in federal prison for unlawful possession of a firearm.  Upon his release from prison, Pineda will be on supervised release for three years. 

On May 5, 2015, at an apartment complex in Ontario, Oregon, Pineda pulled out a firearm and pointed it at a man who was harassing a woman.  Police officers responded to the disturbance and eventually located Pineda’s .357 caliber revolver submerged in a bathroom toilet in one of the apartments.  Officers determined that Pineda was a felon and that the firearm had previously been stolen.  Pineda has a history of gang association and has been convicted of robbery and burglary in the second degree.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ontario Police Department, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.

EUGENE, Ore. - On April 18, 2016 a federal jury in Eugene, Oregon, convicted Kenneth Medenbach, 63, of Crescent, Oregon, for unlawful occupying federal lands managed by the U.S. Bureau of Land Management (BLM).

In May 2015, Medenbach delivered a letter to BLM claiming “adverse possession” of 320 acres of federal public lands in Josephine County, Oregon.  Medenbach erected a small cabin on public lands along a BLM road and refused to remove it despite repeated warnings by BLM.  BLM regulations provide that a person may not camp or occupy the same site for more than 14 days without authorization.  Medenbach was later charged with unlawful occupation and illegal camping. 

Medenbach argued that the public land he was occupying did not belong to the United States because the federal government did not have constitutional authority to possess public lands in Oregon.  Medenbach also argued that federal courts did not have authority to interpret the U.S. Constitution.  U.S. District Judge Michael McShane rejected both legal claims and the jury convicted him on both of the charges at trial.  Judge McShane ordered the removal of Medenbach’s illegal cabin after the jury verdict.

Medenbach, will be sentenced on August 1, 2016.  He faces up to one year in prison and a $1,000 fine. 

This case was investigated by the U.S. Bureau of Land Management and prosecuted by Assistant U. S. Attorney Douglas W. Fong.

EUGENE, Ore. – On April 7, 2016 Rafael Zapien, 23, a Mexican citizen, pleaded guilty before U.S. District Judge Ann Aiken, to possessing heroin and methamphetamine with the intent to distribute.  

On August 4, 2014, a Benton County deputy sheriff stopped a vehicle being driven by Zapien on Highway 20 for speeding and suspicion of drunk driving.  A drug detection dog later alerted on a plastic container inside the vehicle’s center console that contained one pound of heroin and four pounds of methamphetamine.  Zapien’s fingerprints were on the container. 

Zapien’s sentencing hearing is scheduled on September 7, 2016; he is faces a maximum sentence of twenty years in prison.

The investigation of this case was conducted by the DEA and Benton County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Frank R Papagni, Jr. with the assistance of the Benton County District Attorney John Haroldson and Deputy District Attorney Carrie Wineland.

EUGENE, Ore. – Eugene property manager, Terry Shockley, 63, pleaded guilty before U.S. District Judge Ann Aiken today for engaging in a scheme to defraud clients and investors through his now-defunct property management company, TS Property Management (TSPM).

According to the plea agreement, Terry Shockley admitted to engaging in a scheme to defraud the clients of and investors in TS Property Management, resulting in a loss of over $3.5 million to his victims.  The plea agreement sets forth the details of the scheme, which included operating the company under material false pretenses such as statements claiming that certain amounts were held in trust for clients, statements about the financial health of the company, and lulling statements to the Oregon Real Estate Agency in an attempt to convince the state regulator that nothing was wrong and the business was financially sound.  In reality, Shockley had been experiencing financial issues since at least as early as December 2012 and was operating under substantial debt.

Shockley faces a statutory maximum sentence of 20 years in prison for each count of wire fraud.  According to the plea agreement, Shockley has agreed to entry of a restitution order taking into account the full amount of his victims’ losses.  Shockley will be sentenced on September 6, 2016 at 10:00 a.m.

The Federal Bureau of Investigation, with assistance from the Oregon Real Estate Agency, investigated this case and it is being prosecuted by Assistant U.S. Attorney Nancy M. Olson.

WASHINGTON – A former resident of Portland, Oregon was sentenced to 37 months in prison today for her role in a tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.

Tataneisha White, 43, admitted to conspiring with multiple individuals, including Jasmine Mason, Shawntina Ware and Brandon Leath, all of Portland, to file more than 227 false income tax returns claiming more than $1 million in fraudulent refunds.  The false information on the tax returns included fictitious W-2 wages and inflated withholding amounts to generate tax refunds ranging from $1,000 to $12,000.  White also admitted that she and her co-conspirators shared personal identifying information and employer information with each other to file the false returns.  White directed the Internal Revenue Service (IRS) to divide the fraudulently obtained tax refunds between bank accounts and debit cards controlled by White and others, including friends and family members of White and her co-conspirators.  In October 2015, White pleaded guilty to one count of conspiracy to file false claims, one count of filing a false claim and one count of theft of government funds.

In addition to the prison term, U.S. District Judge Robert E. Jones ordered White to serve three years of supervised release and pay restitution to the IRS in the amount of $626,750.  Mason and Leath previously pleaded guilty to similar charges and were sentenced to 32 months and 24 months in prison, respectively.  Ware also pleaded guilty and is scheduled to be sentenced on July 27. 

Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Lori A. Hendrickson and Ryan R. Raybould of the Tax Division, who are prosecuting the case.  Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the District of Oregon for their valuable assistance.

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

PORTLAND, Ore. - This April Fool’s Day, don’t get fooled by scammers pretending to be from the FBI, Internal Revenue Service (IRS), U.S. Marshals Service, or any other federal agency.

Law enforcement officials are aware of a recent wave of scam attempts. Callers identify themselves as a federal officer and typically instruct people to wire “settlement” money to avoid arrest. These phone calls are fraudulent. Federal agencies do not call or email individuals, threatening them to send money.

There are many versions of this government impersonation scam, but they are all variations of the same tactic. The type of scam has been around for years and targets people across the nation. In 2016 reports have streamed in to law enforcement about attempts to scam residents throughout the country.

If you have been targeted by government-impersonating scammers, the sooner you report it, the better are the chances that law enforcement will be successful in their investigation. Here’s how to report specific scam attempts:

FBI Impersonation

Scams impersonating the FBI have been around for years and continue today—sometimes citing current FBI Director James Comey or a local field office Special Agent in Charge. The FBI first warned the public in 2008 that “the fraudulent e-mails give the appearance of legitimacy due to the usage of pictures of the FBI Director, seal, letterhead, and/or banners.”

FBI Impersonation: Call your local FBI office Portland Division: 503-224-4181

 

IRS Impersonation

Earlier this month, the Treasury Inspector General for Tax Administration (TIGTA) warned that criminals continue to impersonate IRS agents, resulting in reports of more than one million fraudulent contacts since October 2013 and more than 5,500 victims who have collectively lost approximately $29 million.

IRS Impersonation: Fill out the “IRS Impersonation scam” form on TIGTA’s website:  https://www.treasury.gov/tigta/contact_report_scam.shtml

 

Jacqueline Siegel - (503) 265-3525

TIGTA

Jacqueline.Siegel@tigta.treas.gov

 

U.S. Marshals Impersonation and Jury Service Scam

Earlier this week, the United States Courts warned that scammers are now more sophisticated, using official-sounding call centers and citing designated court hearing times. The U.S. Marshals Service has also received complaints of specific officer names or badge numbers being cited by scammers. 

Marshal Impersonation: Call your local U.S. Marshals Service office: In Oregon:  503-326-2209

 

In addition, all types of fraud schemes and scams can always be reported to the Internet Crime Complaint Center (IC3) at www.ic3.gov.  The following information is helpful to report:

• Header information from e-mail messages;

• Identifiers for the perpetrator(e.g., name, Web site, bank account, e-mail addresses);

• Details on how, why, and when you believe you were defrauded;

• Actual and attempted loss amounts;

• Details about the government impersonation; and

• Other relevant information you believe is necessary to support your complaint.

Filing a complaint through IC3’s website allows analysts from the FBI to identify leads and patterns from the hundreds of complaints that are received daily.  The sheer volume of complaints allows that information to come into view among disparate pieces, which can lead to stronger cases and help zero in on the major sources of criminal activity.   The IC3 then refers the complaints, along with their analyses, to the relevant law enforcement agency for follow-up.

The public can learn about other common scams by visiting http://www.fbi.gov/scams-safety/frauds-from-a-to-z, and learn about ways to reduce their risk of being scammed: http://www.fbi.gov/scams-safety/fraud/internet_fraud. 

If you receive a scam phone call, you may also contact the FCC - Federal Communications Commission at the number and website below: 

FCC Consumer Center: 1-888-225-5322

FCCWebsite;

https://consumercomplaints.fcc.gov/hc/en-us

PORTLAND, Ore. – Jamie Lee Jones, 44, a former resident of Nevada, was indicted today on drug trafficking, firearms, and witness tampering charges, announced U.S. Attorney Billy J. Williams.  Jones was living in Seaside in early February 2016, during the time of the alleged offense conduct.  The indictment charges Jones with possession with intent to distribute methamphetamine; felon in possession of a firearm; two counts of tampering with a witness by physical force or threat; and use and carry of a firearm during and in relation to a crime of violence.  The defendant is currently in custody. Trial will be scheduled at defendant’s initial appearance and arraignment on the federal indictment.    

The federal charges arise after a two-month, multi-agency investigation tracing the firearm used in the February 5, 2016, homicide of Seaside Police Sergeant Jason Goodding.  As alleged in the indictment, Jones is accused of tampering with two witnesses by using physical force and the threat of physical force against them with the intent of hindering or preventing the witnesses from communicating information to law enforcement regarding the federal offense of being a felon in possession of a firearm, and the use of that firearm by another to shoot and kill a law enforcement officer.  Specifically, Jones is accused of threatening to kill a witness, striking a witness, and discharging a firearm near both witnesses, all with the intent to hinder or prevent them from communicating information to law enforcement.

Douglas Dawson, Special Agent in Charge of the ATF in Oregon stated, “The ATF remains committed in our partnership with state and local law enforcement, holding responsible anyone who threatens the safety of our community.”

The use of a firearm count carries a 10-year mandatory minimum, a maximum sentence of life in prison and a fine of $250,000.  An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty. 

The agencies participating in the investigation are the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Clatsop County Sheriff’s Office, the Clatsop County Major Crimes Team,  the Cannon Beach Police Department, the Astoria Police Department, the Oregon State Police, the Clatsop County District Attorney’s Office, and the U.S. Attorney’s Office, District of Oregon. 

The case is being prosecuted by Assistant U.S. Attorney Leah K. Bolstad.

The indictment can be found attached below.

PORTLAND, Ore. – The former legal guardian for his cognitively disabled cousin, pled guilty for stealing more than $570,000 in annuity payments that were intended for the cousin’s care.   Michael R. Braun, 67, pled guilty to wire fraud before U.S. District Court Judge Anna Brown, and admitted committing the theft for approximately 12 years.  His sentencing hearing is scheduled for August 15, 2016.

According to court records, Braun was appointed as A.M.’s legal guardian in 1984, following the death of A.M.’s parents, when A.M. was in his 20s.  At that time, A.M. was the beneficiary of monthly annuity payments from the Defense Finance and Accounting Services (DFAS) with payments ranging from $1,500 - $2,709 each month.  As A.M.’s legal guardian, Braun was required to use the annuity payments for A.M.’s care and to advise DFAS if he was no longer A.M.’s legal guardian.

In 1990, Braun was discharged as A.M.’s guardian by the Circuit Court of Washington County; however, Braun failed to notify DFAS that he had been removed as A.M.’s legal guardian.  Between January 1990 and February 2013, Braun submitted a Certificate of Eligibility to DFAS each year certifying he was A.M.’s legal guardian, when in fact he knew he was not and knew he was not using the annuity payments for A.M.’s care.  Additionally, in 1998, Braun directed DFAS to deposit A.M.’s annuity payments into Braun’s bank account.  As a result of Braun’s repeated false statements and concealments, DFAS continued to deposit A.M.’s annuity payments each month into Braun’s own bank account.

Between January 1990 and December 2012, Braun received $573,604 in annuity payments which he converted to his own use.

The case was investigated by the Washington County Sheriff’s Office.  The case is being prosecuted by Special Assistant United States Attorney Helen Cooper as part of a partnership venture between the Seattle Region, SSA Office of the General Counsel and the U.S. Attorney’s Office in Portland, Oregon.

See the attached indictment below for additional information.

EUGENE, Ore. – Nikita Rose Garcia, 28, a former resident of Douglas County, Oregon, was sentenced yesterday to five years in prison and four years of supervised release by U.S. District Judge Ann Aiken for aiding in the distribution of more than 50 grams of methamphetamine.  Garcia previously pleaded guilty in November 2015 for assisting another individual who was armed with a firearm in the distribution of 1.244 kilograms of methamphetamine in Douglas and Benton Counties. 

On August 6, 2014, a Benton County Sheriff’s deputy attempted to stop a car in which Garcia was a passenger near Monroe, Oregon.  The driver attempted to elude the deputy by driving at speeds over 100 mph.  The car crashed through a fence and collided with a piece of farm equipment.  The driver fled and avoided arrest, but Garcia was apprehended.  In the car, deputies found methamphetamine and a loaded pistol. 

On September 15, 2014, U.S. Marshals arrested the alleged driver, Greyson Scott Lindenfelser, on federal drug and firearm charges and Oregon kidnapping and drug charges outside a motel in Creswell, Oregon.  On January 21, 2015, a federal grand jury indictment charged Lindenfelser with being a felon in possession of a stolen firearm, possessing a firearm to further a drug trafficking crime, and distribution of methamphetamine.  He has pleaded not guilty and is pending trials in federal and Douglas County courts.     

This case was jointly investigated by the Drug Enforcement Administration, Douglas County Interagency Narcotics Team, Benton County Sheriff’s Office, and the Corvallis Police Department, and resulted in the seizure of a total of 1.913 kilograms of methamphetamine, two pistols and 37 hydrocodone tablets.

The case was prosecuted by Assistant U.S. Attorney Frank R Papagni, Jr., with the assistance of Benton County District Attorney John Haroldson and Douglas County District Attorney Rick Wesenberg.

Portland, Ore. – Darrin Bottinelli, 45, of Portland, Oregon, pled guilty Thursday, March 17, 2016, before U.S. District Judge Robert E. Jones to one count of theft in connection with health care.  Bottinelli admitted in his plea agreement that between 2009 and 2014 he stole approximately $3 million dollars from individual health reimbursement accounts (HRAs) 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, which held its principle place of business in Portland.  Axis administered employee health reimbursement or flexible spending accounts for their client employers.  According to Axis contracts with employers, Axis pledged to post employer contributions to trust accounts for employee plan participants.  These plan participants could then seek reimbursement for eligible health expenditures from their account funds.

Between 2009 and 2014,the defendant improperly and repeatedly accessed trust account funds for his own personal use.  On March 19, 2014, Bottinelli abruptly closed the Axis office without any communication to client employers or plan participants.  As a result, approximately four thousand plan participants were unable to access their account funds.   Individual victim losses range from $22,500 to less than $10. 

The maximum sentence for theft in connection with health care is ten years of imprisonment, a $250,000 fine, and three years of supervised release.  Sentencing is currently scheduled for September 14, 2016.  

This case was investigated by the U. S. Department of Labor, Employee Benefits Security Administration, the Federal Bureau of Investigation, and the U. S. Department of Labor – Office of Inspector General.  The case is being handled by Assistant United States Attorney Donna Brecker Maddux.

PORTLAND, Ore. - The Office of the Inspector General for the U.S. Department of Justice, in consultation with the United State Attorney’s Office for the District of Oregon, is conducting an investigation regarding the actions of the FBI Hostage Rescue Team (HRT) in connection with the events on January 26, 2016.  Because the investigation is ongoing, there will be no further comment until the investigation is fully concluded. 

Please see link to U.S. Department of Justice, Office of the Inspector General:  https://www.oig.justice.gov/press/2016/2016-03-08.pdf

EUGENE, Ore. – Timothy Loren McCoy Fleming, 24, a transient with no permanent residence, was sentenced yesterday, March 7, 2016,  to 18 months in federal prison for transmitting a threat in interstate commerce.   Fleming pled guilty last September to communicating a threat in interstate commerce, via Facebook, to kill or injure a police officer.

According to a sentencing memorandum filed by the U. S. Attorney’s Office, in January 2015, the Albany Police Department in Albany, Oregon received a call from Fleming’s sister, reporting that Fleming had posted Facebook threats to kill a police officer at Albany city hall.   Fleming’s posts included statements like “stash the salvation in my pocket, safety off, trigger finger cold and willing,” and  “walk into Albany city hall, smile at the uniform as I pass him in the hall, turn round, salvation speaks, a roaring sound, uniform goes down, no armor on the head makes a corrupt cop dead.” 

Fleming’s Facebook postings included a picture of a hand holding a pistol and a picture of the front door of Albany city hall.  When police apprehended Fleming, he was carrying an inoperable pellet gun that matched the pistol in the Facebook posting.

Before being sentenced, Fleming apologized to the Albany Police and FBI.  Judge Michael McShane cited Fleming’s mental illness, homelessness and inoperable gun as factors warranting less prison time.   Judge McShane ordered Fleming to participate in a mental health treatment program and to stay at a residential reentry center upon his release from prison.

This case was investigated by the Albany Police Department and the FBI.  Assistant U.S. Attorney William “Bud” Fitzgerald was the prosecutor.

EUGENE, Ore. – Zak Harris, 33, of Lincoln County, Oregon, was sentenced on Thursday, March 3, 2016, by U.S. District Judge Ann Aiken to 72 months in prison for possession with intent to distribute methamphetamine and felon in possession of a firearm.    Following his release from prison, Harris will be on supervised release for four years.

On February 21, 2013, law enforcement in Lincoln County located Harris and three other people in a beach house with drugs and firearms.  They also found a box buried on public property belonging to Harris, which contained methamphetamine, a firearm and a small quantity of heroin.   The investigation revealed defendant had been selling methamphetamine in the local community.  Harris has three prior convictions for delivery of controlled substances.

The investigation of this case was conducted by the Lincoln City Police Department, the Oregon State Police, the Toledo Police Department and the Eugene, Oregon office of the ATF.  The case was prosecuted by Assistant U.S. Attorney Amy Potter.     

EUGENE, Ore. – Humberto Rodriguez, 33, of Malheur County, Oregon, was sentenced on Thursday, March 3, 2016, by U.S. District Judge Ann Aiken to 60 months in prison for possession with intent to distribute methamphetamine and felon in possession of a firearm.    Following his release from prison, Rodriguez will be on supervised release for four years.

On April 10, 2012, an Oregon State Police Trooper stopped a vehicle in which Humberto Rodriguez was a passenger.  Rodriguez was on probation and was asked to step from the vehicle, at which time he attempted to flee.  He was immediately apprehended and approximately one ounce of methamphetamine was found on his person.  A firearm was also recovered in the vehicle within his arm’s reach. 

At the time of his arrest, Rodriguez was a member of a Surenos affiliated gang.  He has prior felony convictions which include delivery of a controlled substance, transporting a controlled substance and felon in possession of a firearm. 

The investigation of this case was conducted by the Oregon State Police, the Boise, Idaho office of the ATF and the Ontario Police Department.  The case was prosecuted by Assistant U.S. Attorneys Jeffrey Sweet and Amy Potter.

EUGENE, Ore – A federal grand jury sitting in Eugene, Oregon has indicted a captain employed by the Deschutes County Sheriff’s Office.  Scott Raymond Beard, 45, of Bend, Oregon, was charged with various offenses related to allegations that he used his position to embezzle and steal more than $200,000 in taxpayer funds.  The indictment further alleges that Beard laundered some of the ill-gotten gains by conducting financial transactions to pay expenses on behalf of his co-defendant, Krista Jean Mudrick, 35, of Bend, Oregon.  Mudrick is a former employee of the Deschutes County Sheriff’s Office and is charged with making false statements to the FBI and IRS about Beard’s expenditures of the ill-gotten gains.

Beard was arrested by FBI and IRS-Criminal Investigations today in Bend and is scheduled to make his initial appearance before U.S. Magistrate Judge Thomas Coffin in Eugene on Monday, February 22, 2016.  Additionally, Mudrick has been issued a summons requiring her presence at an arraignment on Monday, February 22 in Eugene at 1:30.

Beard is charged with two counts of theft of funds from a federally funded program, which if convicted, carries a maximum penalty of ten years in prison; two counts of money laundering, which if convicted, carries a maximum penalty of ten years in prison; and, one count of passport fraud, which if convicted, carries a maximum penalty of five years in prison.

Mudrick is charged with one count of false statement to federal law enforcement agents, which if convicted, carries a maximum penalty of five years in prison.

“Most men and women in law enforcement dedicate their lives to public service and strive every day to always do the right thing as public servants,” said U.S. Attorney Billy J. Williams.  “When an investigation shows that a member of law enforcement is violating the public trust by stealing the people's money, we will vigorously prosecute and seek justice for such conduct.  Public trust in law enforcement is earned, and must be protected through accountability.” 

“The public rightly expects that their law enforcement officers live and work by a strong set of core values – honesty, integrity and respect,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon.  “The FBI will always aggressively pursue allegations of public corruption to ensure we maintain the public’s trust in law enforcement.”

“Throughout my career in federal law enforcement, I have gained a great deal of admiration for those that carry the badge and serve our communities and our nation, the vast majority of whom do so with fierce dedication, honor, and respect for the law.  We take it personally when one of our own is alleged to have not lived up to the oath they made to uphold the law and the virtue of our profession,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation.

An indictment is only an allegation of criminal activity.  Defendants Beard and Mudrick are presumed innocent unless and until proven guilty beyond a reasonable doubt.  A link to the indictment here.

This case was investigated by the FBI, IRS-Criminal Investigation, and the Deschutes County Sheriff’s Office.  Assistant U.S. Attorney Christopher Cardani is prosecuting the case.

MEDFORD, Ore. - On Wednesday, February 17, 2016, U.S. District Judge Ann Aiken sentenced Jonathan Robert Quaccia, 35, originally of Ashland, Oregon, to two years in federal prison for conspiracy to commit money laundering.   The Court ordered the defendant to serve three years of supervised release upon his release from prison term and complete 500 hours of community service.   

From 2012 to December 2014, defendant shipped marijuana from California to New York and Georgia for sale.  Deposits of the proceeds from the marijuana sales were made in New York and Georgia into bank accounts held by Southern Oregon residents.  The Oregon residents were recruited by Quaccia and co-defendant Matthew Correa. Those individuals then withdrew the marijuana proceeds from the Oregon bank accounts and gave the money to Correa, who delivered the money to Quaccia in California.  This scheme was designed to promote the manufacture and distribution of marijuana and to conceal the nature, source and ownership of the marijuana proceeds.  The amounts deposited and withdrawn were kept under $10,000 to avoid detection.  Bank records show $2.2 million in marijuana proceeds were deposited in New York and Georgia, and $2,075,000 withdrawn in Oregon in at least 262 transactions. 

Quaccia was residing in McKinleyville, CA, during the time of the offense.  He has no previous criminal history.

This case was investigated jointly by the U.S. Drug Enforcement Administration and the Humboldt County Drug Task Force, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.

MEDFORD, Ore.  - On Wednesday, February 17, 2016, U.S. District Judge Ann Aiken sentenced Carl Gene Dunlap, 40, of Medford, Oregon, to 10 years in federal prison, following his conviction for being a felon in possession of a firearm.  Dunlap’s 10-year sentence is the maximum allowed under federal law.  Dunlap was also ordered to serve three years of supervised release after he completes his prison term.  

On January 13, 2014, near Central Point, Oregon, Dunlap was showing off a 9mm handgun to an acquaintance when it accidentally discharged,  striking the person in the groin.  Dunlap fled the scene.  The wounded person was rushed to the hospital and survived the gunshot, but did not identify Dunlap as the shooter.  Jackson County Sheriff’s deputies collected the spent shell casing and bullet that had passed through the victim.  Later that evening, Dunlap was arrested on an unrelated probation violation warrant. That arrest followed a chase in which Dunlap jumped from a moving vehicle and attempted to elude the police on foot.  Weeks later, Medford police recovered a 9mm handgun at a Medford motel.  The Bureau of Alcohol Tobacco and Firearms Forensic Laboratory matched the spent shell casing found at the scene of the earlier shooting to the seized firearm.  Additional investigation revealed Dunlap as the shooter.

Dunlap’s prior felony convictions include coercion, third degree assault, robbery in the third degree, felony attempt to elude, felon in possession of a firearm, unlawful use of a motor vehicle, and 12 separate convictions for possession of methamphetamine.  Dunlap also has 17 misdemeanor convictions which include fourth degree assault, resisting arrest, menacing, recklessly endangering another, and misdemeanor attempt to elude.

This case was investigated jointly by the Jackson County Sheriff’s Office, Medford Police Department, Central Point Police Department, and the Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.