District of Oregon

PORTLAND, Ore. – Marcus Allen Tyler, 31, of Portland, was sentenced today to 71 months in federal prison by U.S. District Judge Michael W. Mosman.  In November 2014, Tyler pled guilty to the felony offense of arson.  Tyler is currently in the custody of the U.S. Marshals Service.

After Tyler has completed his 71 months in prison, he must serve three years of federal supervised release.  While on supervised release, Tyler will be required to pay restitution for the damage caused by the fire.

According to statements made in federal court, Tyler was the kitchen manager at Pal’s Shanty Tavern, located at 4630 NE Sandy Boulevard, in Portland, Oregon.  Tyler had worked for Pal’s Shanty Tavern for five years, but he became upset with his employers because he believed that the waiters were not sharing enough of their tips with him.

In the early morning hours of November 15, 2013, Tyler used his key to enter Pal’s Shanty Tavern after it had closed for the night.  Tyler spread gasoline in the kitchen to start a fire in the restaurant.  Tyler intended for his arson to conceal a separate crime that night, which was a plan to steal an ATM that was located inside of Pal’s Shanty Tavern.  After Tyler ignited the gasoline with a lighter, he slipped and fell on the gasoline that he had poured, and he was severely burned.  Firefighters were called to respond to the fire, and it took 53 Portland firefighters to finally extinguish the fire, which destroyed Pal’s Shanty Tavern.

Tyler, who had fled the scene before firefighters arrived, was eventually transported to the hospital. A police investigation almost immediately revealed Tyler’s involvement in the arson.

“This sentence holds the defendant responsible for the crime of arson and recognizes the impact on the community.  The defendant’s criminal actions were a betrayal to the long time owners and the neighborhood, Pal’s Shanty has been a Portland landmark and meeting establishment since 1966,” said Acting U.S. Attorney Billy J. Williams.  “My office commends the Portland Fire & Rescue Bureau for their investigation of this case.”

Pal’s Shanty Tavern was a family-owned business that had been operating in Northeast Portland’s Hollywood District since the 1960s.  It has not reopened since the arson.

"This fire put a well-known Portland establishment, Pal's Shanty, out of business. The successful prosecution of arson brings some closure to the owners, employees, and all the people who loved this local establishment,” said, Erin Janssens, Chief of Portland Fire & Rescue Bureau.

This case was investigated by the Portland Fire & Rescue Bureau and the Portland Police Bureau.  The case was prosecuted by Assistant U. S. Attorneys Pamala R. Holsinger and Craig J. Gabriel.

EUGENE, Ore. – Patrick Ball, 38, of Toledo, Oregon, was sentenced today by Chief U.S. District Judge Ann Aiken to 96 months in prison, to be followed by a three-year term of supervised release.  The federal charges were brought after the Lincoln County Police and Toledo Police Department identified Ball as a methamphetamine trafficker and began an investigation.  After a traffic stop, he was found with 107 grams of actual methamphetamine and arrested.

According to the prosecutor, Ball was a career offender because he had prior drug delivery convictions.  He also had several convictions for property crimes including Burglary I, Burglary II, and Theft I.  He was on supervision at the time he was found with the drugs, yet he was pedaling drugs in the local community.  “The impact of methamphetamine on our local communities cannot be underscored and this case makes it clear that we will continue to aggressively seek out these types of cases for prosecution,” said Acting U.S. Attorney Billy J. Williams. 

This case was investigated by the Lincoln County Police Department, the Toledo Police Department, the Newport Police Department and the DEA.   This case was prosecuted by Assistant U.S. Attorney Amy Potter.

EUGENE, Ore. – Cory Charles Weise, 33, Eugene, Oregon, was sentenced on Wednesday, June 24, 2015, by U.S. District Judge Michael McShane to 120 months in prison for possession with intent to distribute methamphetamine and felon in possession of a firearm. Following his release from prison, Weise will be on supervised release for three years.

Weise was a well-known member of the West Side Gangsters in Lane County, Oregon, and his activities were investigated by the Eugene Police Department (EPD) and the FBI.  On November 13, 2013, EPD detectives executed a search warrant at his Eugene residence and in a safe located two firearms and ten grams of a mixture or substance containing methamphetamine.  As a convicted felon, Weise was prohibited from possessing firearms.  Scales and packaging material were found in his bedroom, and $1,170 cash was found on his person.

The investigation of this case was conducted by the Eugene Police Department Special Investigations Unit and the Eugene Resident Agency office of the FBI.  The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.

PORTLAND, Ore, – Reaz Qadir Khan, 51, a naturalized U.S. Citizen residing in Portland, Oregon, was sentenced today to 87 months in prison by U.S. District Judge Michael Mosman in connection with the May 27, 2009 suicide bomb attack at Pakistan’s intelligence service headquarters in Lahore, Pakistan.  The attack killed approximately 30 people and injured some 300 more.

Khan had previously entered a plea to the crime of accessory after the fact to the crime of providing material support to terrorists.  In entering his plea, Khan admitted arranging for the delivery of approximately $2,450 to Maldivian Ali Jaleel, one of the suicide bombers responsible for the May 27, 2009 attack.  Khan also admitted to providing advice and financial assistance to Jaleel’s wives after the bombing, while knowing that providing such assistance would hinder and prevent the apprehension of Jaleel’s wives and others who may have helped Jaleel.

The 87 month sentence was jointly recommended by the parties and concludes a lengthy investigation of Khan’s connection to the attack.  “With today’s sentence, the Court held the defendant accountable and made it clear that no community should be subjected to the dangers posed by those seeking to assist violent extremists whether here or abroad,” said Acting U.S. Attorney Billy J. Williams.  “Today’s result would not have been possible without the hard work of the dedicated professionals in the law enforcement and intelligence communities.  I look forward to our continued work with Muslim communities in Oregon who are committed to ensuring that all people are safe from the threat of violent extremism, and to counter the global recruitment efforts of ISIS and other terrorists organizations to travel abroad to join them or commit acts of terrorism in this country."

“The threads of violent extremism are weaving a path through many American cities.  As in the Khan case, sometimes that path leads to those who are willing to fund activities overseas. In other instances, the path leads to homegrown extremists who are willing to commit heinous acts or to those who inspire them to do so,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon.  “As the threat becomes more insidious and difficult to track, we rely on our shared community to come forward to help us identify and isolate those who would do harm to our nation.  I would ask anyone with information about potential threats to call their local FBI office.”

This case was investigated by the FBI’s Joint Terrorism Task Force.  The prosecution was handled by Assistant U.S. Attorneys Ethan D. Knight and Charles F. Gorder, Jr. from the U.S. Attorney’s Office in the District of Oregon.  Trial Attorney David P. Cora from the Counterterrorism Section of the Depart of Justice’s National Security Division assisted.

EUGENE, Ore. – On June 16, 2015, Billy Jess Barnard, 30, of Eugene, Oregon, was sentenced by U.S. District Judge Michael McShane to ten years in federal prison for unlawful possession of firearms.  Upon his release from prison, Barnard will be on supervised release for three years.

On December 10, 2013, Eugene Police Department officers arrested Barnard in a stolen vehicle and found him with two handguns.  A search of his phones revealed photos of Barnard holding multiple firearms, including an AK-47 type pistol and a shotgun.  Barnard has prior felony convictions for, among other things, fleeing or attempting to elude police and burglary in the second degree.

In addition to his federal case, the Lane County District Attorney’s Office is prosecuting Barnard in two separate criminal cases arising from other events in 2013.

This case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eugene Police Department, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik, with the assistance of Lane County Deputy District Attorneys Paul Graebner and Katherine Green.

EUGENE, Ore. – Megan Suzanne Jacob, 25, of Lane County, Oregon, was sentenced on Wednesday, June 17, 2015, by U.S. District Judge Michael McShane to 60 months in prison for conspiracy to distribute methamphetamine and heroin.  Following her release from prison, Jacob will be on supervised release for five years.

Following a drug overdose death, the Lane County Interagency Narcotics Team and the FBI investigated the source of supply of the drugs taken by the deceased and determined that Jacob had sold, and injected, the heroin that contributed to the death.  In July 2014, law enforcement made a series of undercover drug buys of methamphetamine and heroin from Jacob for which she was ultimately arrested and pled guilty

Law enforcement determined that on the day of the overdose, Jacob had been introduced to the victim, a first-time heroin user, through a mutual friend.  The two later met at a hotel where she sold the deceased heroin, and administered an injection.  Later that same night, the deceased asked for more heroin. Jacob gave another injection to the deceased, who began to overdose.  Jacob left the hotel, apparently while the deceased was still alive, and did not call 9-1-1.  The deceased was later discovered in the hotel room.  After a medical examination, the cause of death was determined to be a mixed drug overdose of heroin and methamphetamine.  Because the deceased had used a significant amount of methamphetamine earlier in the day that was obtained from another source, the death could not solely be attributed to Jacob and her distribution of heroin.

Acting U.S. Attorney Billy J. Williams said that, “Heroin is a deadly drug that causes far too many tragic and needless deaths.  The U.S. Attorney’s Office is committed to working with our federal and local law enforcement partners to fight this epidemic, and to hold heroin traffickers accountable.”

Jacob has prior felony convictions for possession of heroin and methamphetamine and failure to appear.

The investigation of this case was conducted by the Lane County Interagency Narcotics Team and the Eugene Resident Agency office of the FBI.  The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.

MEDFORD, Ore. - Steven Metheny, 45, Medford, Oregon was sentenced Tuesday to 12.5 years in federal prison by U.S. Chief District Court Judge Ann Aiken after his convictions for conspiracy to commit mail and wire fraud and the making of false statements in defrauding the United States Forest Service in procuring helicopter firefighting contracts in 2008.

Levi Phillips, 48, Grants Pass, Oregon, was also sentenced today for his role in the conspiracy.  Phillips pled guilty on September 23, 2013, to the crime of conspiracy to commit mail and wire fraud.  Judge Aiken sentenced him to serve 25 months in federal prison.  Both defendants were ordered to surrender to Bureau of Prisons on August 17, 2015, and upon release from prison, both will serve a three year term of supervised release.

In 2008, Metheny, as Vice President of Carson Helicopters in Grants Pass, Oregon, and aided by co-conspirator Phillips, the Director of Maintenance for Carson, submitted contract bid proposals on behalf of Carson to the Forest Service with falsified helicopter weight and balance charts and falsely altered Federal Aviation Administration (FAA) helicopter performance charts.  These charts were then used by the Forest Service in determining whether Carson’s helicopters met minimum contract payload specifications and, as a result, awarded contracts to Carson that it would not have received otherwise.  The contract awards amounted to over $51 million dollars.  Carson received nearly $19 million dollars before the Forest Service discovered the fraud and cancelled Carson’s contracts following the crash of Carson helicopter N612AZ in California.

According to documents filed with the court, Assistant U.S. Attorney Byron Chatfield said Metheny schemed with Phillips to create a formula that allowed them to enter a desired weight and center of gravity to generate the necessary scale readings needed to deceive the Forest Service into believing that two of Carson’s helicopters had actually been weighed as required by the contract.  Metheny then used the formula to create false weights for other helicopters including the crash helicopter.  Metheny also created a falsified FAA helicopter performance chart used in conjunction with the false helicopter weights in order to meet the minimum contract payload specifications for much more lucrative contracts.  The Forest Service had previously warned Metheny about not using the actual performance chart it was created from, prohibiting its use for bidding purposes or field operations because it was intended for emergency operations only and its use compromised safety and gave Carson an unfair competitive advantage over other helicopter operators.

Metheny distributed the falsified helicopter weight and balance charts, as well as other falsified FAA helicopter performance charts to pilots and helicopter flight manuals for use in the field.  Unaware of the false nature of the charts, they were then used by pilots and the Forest Service personnel in conducting wildfire flight operations.  Their use included calculating the helicopter’s maximum payload capacity during firefighting operations thereby risking the life and safety of the pilots operating the helicopters and those aboard, including firefighters.

On August 5, 2008, N612AZ crashed during takeoff while conducting firefighting operations.  The crash resulted in nine fatalities and four were severely injured.  The pilots utilized these same falsified charts in the flight manual in determining the payload calculations for the fatal flight.  The surviving and permanently injured co-pilot of N612AZ said that pilots trust the integrity of the charts with their life; if the weight of the helicopter is wrong, the final payload will be wrong.  If he had known, he would never have used those charts.  Other pilots also stressed the importance of using accurate charts as an integral part to the safe operation of a helicopter, especially when carrying passengers.  If the Forest Service manager at the crash site had known the truth about the falsified weight documents, the operation would have been immediately shut down and the firefighters would not have been allowed on board the helicopter.  National Transportation Safety Board (NTSB) investigators would later discover the accurate weight documents for the crash helicopter and learn that it weighed over 1400 lbs. more than the falsified weight documents used by the pilots.  Within days of the crash, Metheny replaced the crash helicopter with another helicopter for the contract by using falsified FAA power performance charts and weight documents for that aircraft.

Court documents further disclose that following the crash of N612AZ, Metheny and Phillips then attempted to conceal the fraud by devising schemes to prevent the Forest Service from discovering the actual weight of each aircraft under contract.  Their schemes included having Carson pilots and crew improperly remove equipment and helicopter components without recording their removal.  However, some refused and one crew chief explained that he was done lying about the helicopter’s weight.  The Forest Service eventually discovered that all of the aircraft were over their bid weight, the weight documents submitted in the contract proposals were fraudulent with underreported weights and the helicopters were using falsified performance charts.  All of the contracts were terminated.

Government documents show that Metheny also concealed the fraudulent conduct involving N612AZ from the NTSB during its crash investigation.  He and Phillips were Carson representatives on the NTSB investigation.  Yet, Metheny knew NTSB investigators were relying on the falsified weight documents used by the crash helicopter and he attempted to convince them of their accuracy.  Later, when NTSB discovered that the performance chart used by N612AZ was falsified, the product of a “cut and paste” created at Carson’s Grants Pass office, Metheny attempted to throw suspicion onto a former employee, someone he held animosity toward.

Court documents further reveal that Metheny was continuously stealing from Carson.  He used Carson funds to buy jewelry and other personal items for himself and his wife, to renovate their residence and he sold Carson helicopter parts and equipment and diverted the proceeds to his own private aviation company for his personal use.  He also stole tail rotor blades from a shipment at Carson’s Grants Pass facility then attempted again to place suspicion on the same person he had animosity toward.  Metheny repaid Carson over $73,900 as restitution for the theft of helicopter parts from the company.

In recommending a sentence of 15.5 years, Assistant U.S. Attorney Chatfield argued Metheny was the architect behind the scheme to defraud the Forest Service and gain a significant advantage over his competitors.  His fraudulent conduct was the result of pure greed that eventually placed the lives of numerous pilots and firefighters in extreme danger.   Metheny demonstrated such an indifference to the danger in which he placed others just to perpetuate the fraud.  As a licensed helicopter pilot, he knew the falsified charts put firefighters and pilots at risk of serious injury, even death.

Chatfield said that helicopter firefighting operations certainly have a high level of risk where failure can have catastrophic consequences, such as with the crash of N612AZ.  Yet, what is totally unacceptable is the substantial risk Metheny created by his fraudulent conduct, unnecessarily putting the lives of so many pilots and firefighters in harm’s way.  Metheny’s conduct has had such an adverse and lasting impact on so many people, both financially and emotionally.  To know that those firefighters who lost their lives would not have been even allowed on the crash helicopter if the Forest Service manager or the pilots had known about the falsified weight is absolutely devastating to their families.  “This is an incredibly disturbing case that has exposed the senseless greed behind this despicable criminal conduct.   There is a price to pay for submitting false information about helicopter payload capabilities in the bid process.  The intentional deceit defrauded the Forest Service and created a reckless risk of harm to those who used the information in firefighting operations, including  those who were relying on the false information when a Carson helicopter crashed near Weaverville, California on August 5, 2008,” says Acting U.S. Attorney, Billy J. Williams.   “The lives of heroic individuals serving in these operations were placed in harm’s way when greedy people enriched their pockets without consideration for their conduct.”

“This investigation demonstrates that ensuring the integrity of the acquisition process and that taxpayer dollars are protected from fraud and abuse, as well as the inherent associated safety risks, is a top priority for the Office of Inspector General (OIG),” said William Swallow, Department of Transportation OIG Special Agent-in-Charge. “Working with our law enforcement and prosecutorial colleagues, we will continue our efforts to promote the prevention, detection, and prosecution of contract fraud and ensuring the public’s safety.”

The U. S. Attorney’s Office has worked with the Offices of Inspector General for both the Department of Agriculture and the Department of Transportation in Portland, Oregon and Seattle, Washington, and the FBI and the IRS in Medford, Oregon in the investigation and prosecution of this case.  The case was prosecuted by Assistant U. S. Attorney Byron Chatfield.

PORTLAND, Ore. – U.S. District Court Judge Michael W. Mosman sentenced Bryan Scott Gunn, 40, of Victorville, California, yesterday to 20 months in prison for coning investors out of almost $1 million.  Judge Mosman also sentenced Gunn to serve three years of supervised release and ordered him to pay $939,308 in restitution.

According to court documents, Gunn was a fairly sophisticated conman.  In fact, in this case, Gunn executed a con within a con.  For the first scam, Gunn convinced his victims to invest more than $500,000 in an alleged heavy equipment leasing company, Republic Funding LLC, gaining the investors’ trust with charm and lies of a high rate-of-return.  During the scheme, Gunn showed the investors documentation that falsely showed the alleged company was profitable.  Gunn diverted the investors’ money for his personal use; among other things, he spent the money on a home, a condo, the construction of a luxury pool, travel, a Mercedes Benz, and his girlfriend.  When the investors began to seek a return on their investment and began to challenge Gunn’s claims about the alleged business, Gunn started his second swindle – a clever and rather elaborate attempt to cover up his diversion of the investors’ money.

Gunn created two fictitious companies, a few fictitious employees, and a fictitious attorney, including corresponding email accounts, to conceal his fraud.  Gunn told the investors that he had sold the equipment leasing business’ portfolio to one of his fictitious companies, CMC Funding.  When the investors sought payment from the sale of the portfolio, Gunn explained that CMC Funding had filed for bankruptcy and that its assets, including the portfolio, were being purchased by Fidelity LLC, Gunn’s other fictitious entity.  Gunn, using letters and emails, posed as employees of Fidelity and as an attorney, and falsely claimed that costs associated with the bankruptcy needed to be paid before the investors could receive any payment for the alleged purchase of the portfolio.  The investors fell for Gunn’s second scheme and paid more than $411,000 in an attempt to recover some of their investment.  Gunn continued to use their money to live lavishly. 

At one point, in an attempt to appease the investors, Gunn created and gave two bogus checks to the investors as a payout.  The checks, one for $314,113 and the other for $1,169,887, appeared to be issued from CMC Funding and to be drawn on an account at SEIU Federal Credit Union.  After depositing the checks, the investors quickly learned that the checks were fraudulent and that the account at SEIU Federal Credit Union did not exist.

This case was investigated by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation.  It was prosecuted by Assistant U.S. Attorney Scott E. Bradford.

PORTLAND, Ore. – Mark Anthony Reyna, 26, from Skagit County, WA was sentenced today by U.S. District Judge Garr M. King to six years in federal prison, following his pleas of guilty to the theft of firearms from a federally-licensed firearms dealer and felon in possession of firearms.

On June 18, 2014, Reyna broke into a locked firearms display located at the Newberg Fred Meyer.  The store was open to the public at the time of the theft.  Reyna took 22 firearms with a value of over $12,000.  Three days after the theft, Reyna was observed by a police officer in Mount Vernon, WA, operating a vehicle; the officer knew that Reyna had an unrelated arrest warrant on file and attempted to stop the vehicle.  Following a brief police chase and struggle with the officers, Reyna was arrested.  One of the stolen firearms from Fred Meyer, a .40 caliber loaded Ruger pistol, was located in Reyna’s vehicle.  During a subsequent police investigation, six of the other stolen firearms were located and seized; 15 stolen firearms are currently unaccounted for.

Several charges are pending against Reyna in Skagit County, WA.  He will be transported to that jurisdiction and will receive a sentence concurrent to the federal sentence.  The pending charges include the related attempt to elude a pursuing police vehicle and unlawful possession of a stolen firearm.  Reyna was prohibited from possessing firearms by virtue of his Skagit County 2014 conviction for disarming a law enforcement officer of his taser.

This case was prosecuted by the Newberg Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and by the Mount Vernon Police Department.  It was prosecuted by AUSA Fred Weinhouse.

EUGENE, Ore. – Christopher Shawn Kanatzar,  28, Springfield, Oregon, appeared before U. S. District Court Chief Judge Ann Aiken in Eugene today and was sentenced to ten years in prison.  Earlier this year, Kanatzar pled guilty to being a felon in possession of a 9 mm pistol found by Springfield police in a stolen car following a high speed chase.  Kanatzar and two police officers sustained injuries when he resisted arrest after the pursuit ended.

In March 2013, Kanatzar also pled guilty in an Oregon court to robbery in the first degree with a firearm.  Kanatzar admitted robbing a person of their methamphetamine at gunpoint.  Kanatzar is pending sentencing for that crime.

Chief Judge Aiken sentenced Kanatzar to the maximum sentence of ten years because he possessed the pistol after having been previously convicted of unlawfully using and possessing firearms, first degree burglary and first degree theft.  According to court documents and statements made in court, Kanatzar’s state sentences will be served concurrently while he is in federal prison.

Kanatzar’s guilty plea, admissions and 10-year prison sentence were part of a global plea agreement with the U. S. Attorney’s Office for the District of Oregon and the Lane County District Attorney’s Office.

This case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms and the Springfield Police Department.  The case was prosecuted by Assistant U.S. Attorney Frank R. Papagni, Jr., with the assistance of Lane County Deputy District Attorney Erik Hasselman.

PORTLAND, Ore. - Carolyn Gallagher of Canada was sentenced today for the theft of at least 28 Forms I-9 from Urban Outfitters, where she once worked as a manager. Gallagher previously pleaded guilty to identity theft, admitting to stealing Forms I-9 from Urban Outfitters and selling them, knowing that false tax returns would be filed in the names of her victims. Gallagher appeared today before the Honorable Robert E. Jones and was sentenced to 12 months and a day in prison and ordered to forfeit $37,475—the total fraudulent refunds paid out by the Treasury based on the false tax returns in the names of her victims.

Gallagher’s co-conspirators, Jheraun Dunlap, Ernest Bagsby, Jermaine Moore, and Brandi McCall, who conspired in the preparation and filing of over 200 false tax returns, including 28 false tax returns in the names of Gallagher’s victims, were previously sentenced by the Honorable Robert E. Jones to 65 months, 51 months, 45 months, and 12 months and a day in prison.

This case was investigated by the IRS Criminal Investigation Stolen Identity Refund Fraud Task Force. Trial Attorneys Leslie A. Goemaat and Lori A. Hendrickson of the Justice Department’s Tax Division are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.

EUGENE, Ore. – Cesar Arnoldo Menjivar, 30, of Lane County, Oregon, was sentenced on Tuesday, June 2, 2015, by U.S. District Court Chief Judge Ann Aiken to a 96-month prison term for conspiracy to distribute methamphetamine.  Following his release from prison, Menjivar will be on supervised release for four years.  On June 3, 2015, co-conspirator William Friend, 19, was sentenced to 60 months in prison for conspiracy to distribute methamphetamine, and on January 20, 2015, co-conspirator Richard Wilson, 37, was sentenced to 60 months in prison for distribution of methamphetamine and felon in possession of a firearm.

A joint investigation by federal and local law enforcement revealed that Menjivar and his associates were distributing methamphetamine.  Between December 17, 2013 and January 28, 2014, a confidential source negotiated five separate purchases of methamphetamine with Menjivar, and the drugs were delivered by William Friend, Richard Wilson and another individual.

On January 30, 2014, search warrants were executed at multiple locations.  Approximately five ounces of methamphetamine, more than one ounce of heroin, packaging material, scales and a loaded pistol were located at William Friend’s residence, and a digital scale was located at Menjivar’s residence.

This case was investigated by the FBI, the DEA, the Lane County Interagency Narcotics Enforcement Team and the Eugene Police Department Special Investigations Unit.  Assistant U. S. Attorneys Jeffrey Sweet and Nathan Lichvarcik prosecuted the case.

PORTLAND, Ore. –Ulicis Acevedo-Yanez, 38, of Troutdale, Oregon, was sentenced by U.S. District Court Judge Michael W. Mosman to 96 months in prison following his federal conviction for possession with the intent to distribute methamphetamine.  When the defendant is released from prison, he will serve four years of supervised release.

Between September 2012 and April 2013, agents with the Metro Gang Task Force (MGTF) identified the defendant as a methamphetamine and heroin dealer operating within the greater Portland, Oregon metropolitan area.  On April 26, 2013, agents arrested the defendant and executed a series of federal search warrants on his residence on S.W. 12th Street, in Troutdale, Oregon, as well as a “drug stash” location he maintained on S.E. Harold Street, in Portland, Oregon.  Agents also received consent to search another “drug stash” location the defendant was using on S.E. Hinkley Street, in Happy Valley, Oregon.

In total, the agents seized over one kilogram of methamphetamine, approximately 765 grams of heroin and 10 firearms.  During a post-arrest interview the defendant admitted that when he was arrested he was on his way to deliver approximately eight ounces of methamphetamine to a customer.  When asked for details of his drug dealing the defendant stated that he usually pays $30,000 for a “brick” (kilogram) of cocaine and most recently purchased one three weeks ago.  The defendant said he sold the cocaine for between $33,000 and $35,000 a kilogram.  The defendant also said that he is currently paying $7,000 for a pound of methamphetamine and he usually buys five pounds at a time.  The defendant also admitted that he pays $27,500 for a kilogram of heroin and then resells it for $950 an ounce.   The defendant admitted to dealing methamphetamine, cocaine and heroin for at least a year to supplement his income after he lost his job.  The defendant pled guilty to the charge on January 21, 2015. 

“Methamphetamine, heroin and cocaine trafficking are scourges within our community,” stated Acting U.S. Attorney Billy Williams.  “Our office will continue to work with law enforcement to prosecute high-level drug dealers who profit by selling these poisons within our neighborhoods."

This case resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by the Metro Gang Task Force and the U.S. Attorney’s Office.  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations and those primarily responsible for the nation’s illegal drug supply.  The case was prosecuted by Assistant U. S. Attorney Scott Kerin.

PORTLAND, Ore. – Ellis McCoy, former Manager of Portland’s Parking Operations Division, was sentenced today by U.S. District Court Judge Marco Hernandez to 24 months in prison after his conviction for taking almost $200,000 in bribes from two city contractors from 2002 to mid-2011.

In August 2012, a year after FBI and IRS agents executed search warrants at McCoy’s office and home, McCoy pleaded guilty to conspiring to accept bribes, accepting bribes, and filing false tax returns on which he did not report a substantial amount of the bribe income.  McCoy admitted he gave favorable treatment to the city contractors in return for $164,567 in checks and currency plus the value of travel, meals, lodging, and other expenses of an undetermined amount.

During its investigation, the government proved McCoy created a phony consulting company and submitted invoices for fictitious consulting work so he and the contractors could disguise some of the bribe payments as payments for consulting work.  The government also proved McCoy accepted about $70,000 of the bribe payments in cash and that the contractors paid for some or all of his meals, travel, and entertainment expenses on about 60 trips for business and pleasure.

“The citizens of Portland are entitled to an honest day’s work from every City employee and they did not get that from Ellis McCoy,” said Acting U.S. Attorney Billy J. Williams. “Instead, McCoy broke trust with Portland and its citizens and rigged the contracting for smart parking meters in favor of those who bribed him.  The U.S. Attorney’s Office, the FBI, and the IRS will always make it a priority to aggressively investigate and prosecute those involved in public corruption of any kind.”

George Levey, former president of Cale Parking Systems USA, Inc. and one of the contractors who bribed McCoy, pleaded guilty on April 29, 2015, and is scheduled to be sentenced on August 11, 2015.

This case was investigated by the FBI and the Criminal Investigation Division of the Internal Revenue Service.  The case is being handled by Assistant U. S. Attorney Seth D. Uram.

PORTLAND, Ore. – Today a federal grand jury returned a superseding indictment charging Lawrence George Owen, 73, of La Paz, Mexico, and Gary Bryant, 67, of Estacada, Oregon, with conspiring to defraud the IRS of more than $1.5 million in unpaid income and payroll taxes stemming from the operation of strip clubs and other adult-oriented businesses in the Portland metropolitan area between January 2006 and June 2010.  The grand jury also charged Owen with conspiring to use facilities of interstate commerce to promote illegal acts of prostitution at the businesses throughout that period.  The U.S. Attorney also filed a criminal Information charging Kandace Desmarais, 63, and Gilbert “Mace” Desmarais, 50, both of Milwaukie, Oregon, with participating in both conspiracies.

The superseding indictment and information allege that, by January 2006, Lawrence Owen and Gary Bryant, along with Kandace Desmarais and Gilbert Desmarais (two of Owen’s stepchildren) managed eleven adult-oriented businesses.  The businesses, which accepted cash only, included eight strip clubs (the Landing Strip, Dillinger’s Pub, the Oh! Zone, Sugar Shack, Sugar Shack Too, Peek-a-Boos, Tommy’s, and Tommy’s Too), two stores offering pornographic videos and sex toys (Video Visions and Video Visions Plus), and a restaurant featuring Oregon Lottery games (Pelican Bay).

The strip clubs featured totally nude female dancers who paid the management “stage fees” of $15 for every shift they worked.  In addition, most of the strip clubs either had enclosed rooms for “private shows” with the dancers or were adjacent to affiliated businesses with such rooms.  Customers could arrange for 30-minute “private shows” with the dancers by paying $60 to the house and at least $100—often several times that amount—to the dancers.  In fact, the “private shows” frequently involved illegal acts of prostitution paid for with cash from the conspirators’ ATMs.

The grand jury and U.S. Attorney alleged that the conspirators concealed more than five million dollars in receipts from the IRS—and fraudulently avoided $1.5 million in income taxes—between January 2006 and June 2010, largely by failing to report income from dancers’ “stage fees” and the payments for “private shows.”  The businesses also failed to pay payroll taxes for numerous employees who were paid only in cash without any record of employment or wages.

The charges culminate an investigation by the Internal Revenue Service Criminal Investigation (IRS-CI) spanning more than five years. In June 2010, IRS-CI agents executed search warrants at all of the businesses and the homes of many of the conspirators.  The agents seized more than $800,000 in cash and records of more than 35,000 “private shows” at the businesses over the course of the charged conspiracy.

Each charge carries a maximum sentence of five years in prison.  If convicted, defendants Lawrence Owen, Kandace Desmarais, and Gilbert Desmarais face a maximum of ten years in prison, and Gary Bryant faces a maximum of five years in prison.

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

The Portland Police Bureau assisted IRS-CI with this investigation.  Assistant U. S. Attorneys Seth D. Uram and Ryan W. Bounds are prosecuting the case.

EUGENE, Ore. – Raymundo Felix-Rodriguez, 42, of Lane County, Oregon, was sentenced today by U.S. District Court Chief Judge Ann Aiken to serve 97 months in prison for conspiracy to distribute 50 grams or more of methamphetamine.  Following his release from prison, Felix-Rodriguez will be on supervised release for five years.  On December 18, 2014, co-conspirator Samuel Sanchez-Campa was sentenced to 57 months in prison, and on September 4, 2014, co-conspirator Angela Luna-Guillen was sentenced to 24 months in prison.

A long-term investigation by the DEA revealed that Felix-Rodriguez sold  methamphetamine to Sanchez-Campa and others, who then resold the methamphetamine.  Luna-Guillen facilitated the conspiracy by storing methamphetamine and transferring drug proceeds.   In 2011, a DEA undercover agent purchased methamphetamine from Felix-Rodriguez on multiple occasions, and ultimately determined that Felix-Rodriguez bought methamphetamine in California and drove it back to Oregon.

On January 8, 2012, Felix-Rodriguez was driving to Oregon when he was stopped in Redding, California.  The vehicle was searched and approximately three pounds of methamphetamine were located, leading to his arrest.  Sanchez-Campa and Luna-Guillen were  later charged and arrested.

This case was investigated by the Eugene Resident Office of the DEA.  Assistant U.S. Attorneys Jeffrey Sweet and Amy Potter prosecuted the case.

EUGENE, Ore. - Shane Reed, 53, of Rogue River, Oregon, pleaded guilty in U.S. District Court in Eugene to willfully failing to pay $125,000 in federal income taxes.  He was sentenced to five years of probation.

Reed admitted that in 2006, 2007 and 2008 he filed U.S. Income Tax returns reporting a total of $880,000.  Based on that income he owed $129,000 in income taxes and did not pay those taxes.  Rather, he used his substantial earnings to fund a lavish lifestyle that included mortgage payments on a million dollar home with a heated swimming pool, $110,000 in vehicle expenditures, and $40,000 to pay for purchases at high end retail stores.

According to court records, Reed has since paid all of his taxes for 2006-2008, but still owes the IRS about $150,000 in back taxes for 2012 and 2013.  As a part of his probation, the Court ordered Reed to pay all of his taxes and to comply with all tax laws required to lawfully operate his law practice.  Reed was additionally ordered to perform 250 hours of community service.

U. S. Magistrate Judge Thomas Coffin presided over the case, which was investigated by the Internal Revenue Service – Criminal Investigations, and prosecuted by Assistant U. S. Attorney Chris Cardani.

Conspirators Obtain Identity Information of 125,000 Taxpayers and Submit Alleged False Federal Income Tax Returns Seeking $6.6 Million in Refunds from Internal Revenue Service

Federal law enforcement agents arrested four individuals in conjunction with a series of search and arrest warrants executed in Maryland and Georgia based on a federal grand jury indictment in the District of Oregon that was unsealed today.

The individuals arrested were:

• Lateef Aina Animawun, 34, of Smyrna, Georgia;

• Oluwatobi Rueben Dehinbo, 30, of Marietta, Georgia;

• Oluwaseunara Temitope Osanyinbi, 34, of Marietta; and

• Oluwamuyiwa Abolad Olawoye, 28, of Marietta. 

A warrant has been issued for the arrest of a fifth defendant, Emmanuel Oluwatosin Kazeem, of Maryland.  The remaining four defendants have made an initial appearance in Georgia, and will be arraigned in the District of Oregon at a date to be set by the court.

The indictment alleges that, beginning at least as early as tax year 2012, the named defendants, along with others, engaged in an identity theft conspiracy in Oregon and elsewhere that involved a scheme to obtain millions of dollars in fraudulent tax refunds from the Internal Revenue Service (IRS) and the Oregon Department of Revenue.  The allegations of the indictment detail how the conspirators spun a complex web of fraud involving the use of stolen personal identifying information (PII), falsified wage and withholding information, fraudulently generated electronic filing PINs, disposable email addresses to conceal the co-conspirators’ identities, and the receipt of fraudulent tax refunds through prepaid debit cards and third party bank accounts. 

“Attacking identity theft is among our highest priorities,” said Acting U.S. Attorney Billy J. Williams of the District of Oregon.  “Those who unlawfully obtain personal identifying information wreak havoc on the lives of innocent taxpayers and will be held fully accountable.” 

In total, the defendants are alleged to have unlawfully obtained the identity information from a data breach of over 125,000 taxpayers and filed over 980 false federal tax returns seeking over $6.6 million in fraudulent refunds.  Although the IRS rejected $4.6 million of the claimed refunds, the indictment alleges that the defendants successfully obtained $2 million in illegal refunds. 

“IRS Criminal Investigations Division is sworn to protect the tax system and bring to justice those who would steal from the Treasury,” said Assistant Special Agent in Charge Thomas Gutierrez of IRS-Criminal Investigation.  “Would-be criminals should know: we’ve made identity theft related refund fraud our top priority.  We understand that in these types of cases, the government is not the only victim.  Identity theft can have a catastrophic emotional and financial impact on its victims.  Our agents are determined to keep up the fight to eradicate identity theft and protect the honest taxpayers who would otherwise personally shoulder the immense burden of this crime.” 

The indictment, which may be viewed here, charges each defendant with one count of conspiracy to commit mail and wire fraud, seven counts of mail fraud, six counts of wire fraud and thirteen counts of aggravated identity theft.  The fraud and conspiracy charges are each punishable by up to 30 years in federal prison and a fine of up to $1 million.  If convicted of the aggravated identity theft charges, the defendants face a mandatory minimum penalty of two years in federal prison for each count of conviction.  An indictment is only an allegation of a crime.  The defendants are presumed innocent until proven guilty beyond a reasonable doubt.

This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services-Office of Inspector General, and the FBI, with support provided by U.S. Immigration and Customs Enforcement, U.S. Postal Inspection Service, the U.S. State Department and the Oregon Department of Revenue Fraud Unit.  This case is being prosecuted by Assistant U.S. Attorneys Byron Chatfield and Nancy Olson of the District of Oregon.

Taxpayers are reminded to be vigilant in the protection of their personal identifying information.  Anyone interested in more information on preventing or reporting suspected identity theft should review the IRS website.

MEDFORD, Ore. - Federal law enforcement agents arrested four individuals in conjunction with a series of search and arrest warrants executed in Maryland and Georgia based on an Oregon federal grand jury indictment unsealed today.

The individuals arrested were:

• Lateef Aina Animawun, 34, of Smyrna, Georgia;
• Oluwatobi Rueben Dehinbo, 30, of Marietta, Georgia;
• Oluwaseunara Temitope Osanyinbi, 34, of Marietta, Georgia; and
• Oluwamuyiwa Abolad Olawoye, 28, of Marietta, Georgia.

A warrant has been issued for the arrest of a fifth defendant, Emmanuel Oluwatosin Kazeem of Maryland.  The remaining four defendants have made an initial appearance in Georgia, and will be arraigned in the District of Oregon at a date to be set by the Court.

The indictment alleges that, beginning at least as early as tax year 2012, the named defendants, along with others, engaged in an identity theft conspiracy, in Oregon and elsewhere, involving a scheme to obtain millions of dollars in fraudulent tax refunds from the IRS and the Oregon Department of Revenue.  The allegations of the indictment detail how the conspirators spun a complex web of fraud involving the use of stolen personal identifying information (PII), falsified wage and withholding information, fraudulently generated electronic filing PINs, disposable email addresses to conceal the co-conspirators’ identities, and the receipt of fraudulent tax refunds through prepaid debit cards and third party bank accounts.  “Attacking identity theft is among our highest priorities.  Those who unlawfully obtain personal identifying information wreak havoc on the lives of innocent taxpayers and will be held fully accountable,” said Acting U.S. Attorney Billy J. Williams.

In total, defendants are alleged to have unlawfully obtained the identity information from a data breach of over 125,000 taxpayers and filed over 980 false federal tax returns seeking over $6.6 million in fraudulent refunds.  Although the IRS rejected $4.6 million of the claimed refunds, the indictment alleges that the defendants successfully obtained $2 million in illegal refunds.  “IRS Criminal Investigations Division is sworn to protect the tax system and bring to justice those who would steal from the Treasury.  Would-be criminals should know: we’ve made identity theft related refund fraud our top priority,” stated Assistant Special Agent in Charge Thomas Gutierrez of IRS Criminal Investigation.  “We understand that in these types of cases, the government is not the only victim.  Identity theft can have a catastrophic emotional and financial impact on its victims.  Our agents are determined to keep up the fight to eradicate identity theft and protect the honest taxpayers who would otherwise personally shoulder the immense burden of this crime.”

The indictment, which may be viewed here "kazeem_et_al_indictment.pdf", charges each defendant with one count of conspiracy to commit mail and wire fraud; seven counts of mail fraud; six counts of wire fraud; and thirteen counts of aggravated identity theft.  The fraud and conspiracy charges are each punishable by up to 30 years in federal prison and a fine of up to $1 million.  If convicted of the aggravated identity theft charges, defendants face a mandatory minimum penalty of two years in federal prison for each count of conviction.  An indictment is only an allegation of a crime.  Defendants are presumed innocent until proven guilty beyond a reasonable doubt.

This case results from a joint investigation by IRS-Criminal Investigations Division, the U.S. Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation, with support provided by U.S. Immigration and Customs Enforcement, United States Postal Inspection Service, the U.S. State Department, and the Oregon Department of Revenue Fraud Unit.  This case is being prosecuted by District of Oregon Assistant U.S. Attorneys Byron Chatfield and Nancy Olson.

Taxpayers are reminded to be vigilant in the protection of their personal identifying information.  Anyone interested in more information on preventing or reporting suspected identity theft should review the IRS’s website at http://www.irs.gov/uac/Taxpayer-Guide-to-Identity-Theft.

PORTLAND, Ore. - Gerardo Chalke Lopez (a.k.a. “La Loca”), 41, and Sergio Quezada-Lopez (a.k.a. “Cheche” , 36, of Nayarit, Mexico, appeared for sentencing on April 28 and April 29, 2015, before U.S. District Judge Michael Simon.  The brothers were sentenced to 18 and 15 years prison, followed by five years of supervised release, and ordered to pay restitution for their roles in a conspiracy to distribute heroin, that resulted in death of a young woman.  The brothers were also sentenced each to 27 months prison on illegal re-entry charges to run concurrent with the drug sentences.

The investigation began on April 16, 2012 when police officers responded to the Keizer, Oregon residence of 21 year old Laurin Putnam, who was found deceased.  The initial investigation indicated that her death was likely caused by a heroin overdose and later confirmed by the Oregon State Medical Examiner’s Office.  Soon after her death, investigators learned the identity of the last person in the chain that was responsible for distributing the heroin to Putnam that caused her death.  From there, investigators were able to identify several conspirators and move six levels up the chain of distribution to brothers Gerardo Chalke Lopez and Sergio Quezada-Lopez.  During the investigation, agents learned that the brothers were higher level members of a large scale conspiracy involving the distribution of significant quantities of heroin in Oregon, Washington, Nevada, and Colorado.

The investigation of the case was led by the Drug Enforcement Administration (DEA) through its Salem DEA Drug Task Force, and the Keizer Police Department with assistance from the Salem Police Department; the Marion County Sheriff's Office; the Oregon State Police; the Washington County Interagency Narcotics Team (WIN); the Portland Police Bureau; the Oregon State Medical Examiner; the Clark-Skamania Drug Task Force; the Oregon Department of Justice; and, the Portland based Highway Interdiction Team.

The case was prosecuted by Assistant U.S. Attorneys Kemp Strickland and Kathleen Bickers.

PORTLAND, Ore. – On April 30, 2015, U.S. District Judge Robert E. Jones sentenced Blancey Lee, 40, of Portland,  to 24 months in prison for his role in a conspiracy to commit money laundering and his filing of false personal income taxes for 2012.   Judge Robert E. Jones also ordered Blancey Lee to pay $2,599,809.07 in restitution to the victim.  In addition to the prison sentence, the defendant must also serve three years of post-prison supervised release.  The co-defendant, Rachel Lee, 44, of Canby, Oregon was sentenced on February 19th, 2015 by U.S. District Judge Jones to serve 100 months in federal prison, and pay $15,490,978.65 in restitution.  Co-defendant, Porsha Lee, 25, of Northern California, was sentenced on March 15, 2015, by  U.S. District Judge Jones to serve 33 months in federal prison and pay $12,822,262.25.  The co-defendants restitution obligations are joint and several.

“Individuals who knowingly steal from the vulnerable or benefit and turn a blind eye to these predatory acts will be prosecuted to the fullest extent of the law,” said Acting U. S. Attorney Billy J. Williams.  “Due to the combined efforts of federal, state, and local law enforcement, and the effective use of federal forfeiture, the victim is now safe and financially stable. We will continue to work tirelessly with our law enforcement partners to hold self-serving crooks accountable, protect victims, and seek full restitution.”

The victim met codefendant Rachel Lee in 2004 when he visited her Psychic Shop in Bend, Oregon.   At the time, Blancey Lee and Rachel Lee lived together as a couple at the Psychic Shop and presented themselves as husband and wife.  Between 2004 and 2006, Rachel Lee fostered a friendship with the victim for the purpose of extracting money from him.  As a result of her lies and the trust she established with the victim, Rachel Lee assumed a role as paid care giver to the victim’s elderly father by 2007.  Trusting her to act in his best interest, the victim also turned over all personal and business account control to Rachel Lee.   While controlling the victim’s finances, Rachel Lee, Blancey Lee, and their families lived in a million-dollar home in the Portland West Hills purchased with the victim’s money.

Rachel Lee recruited members of her family to play key roles in the fraud scheme.  Rachel Lee and her daughter Porsha Lee created a fake persona and introduced this character to the victim.  They named the character Mary Marks.  This character wore a blond wig, glasses, a hat and sported a British accent.  Porsha Lee as Mary Marks met the victim and used information her mother provided her to connect with the victim.  Porsha Lee as Marks claimed to be a bookkeeper, and soon after began assisting Rachel Lee with the management of the victim’s accounts.  

By 2011 the victim believed he and Marks married and had a child.  The child presented to the victim as his son is actually one of Rachel Lee’s grandchildren.   Digital images reveal years of holidays, birthdays and events with the victim, Rachel Lee, Porsha Lee as Marks, and their purported child.

Between 2007 and 2011 Rachel Lee directed the victim to incrementally liquidate investments accounts totaling approximately $3.8 million dollars.  After depleting the victim’s investment account, Rachel Lee convinced the victim he owed substantial taxes and needed to sell his family’s Tree Farm.  At Rachel Lee’s direction, the Tree Farm properties were sold for a total of approximately $12.3 million dollars. 

Rachel Lee, Blancey Lee, and Lee family members spent the victim’s fortune on a luxury lifestyle.  Rachel Lee and Blancey Lee spent funds on high-roller trips to Las Vegas, trips to California, and a first class trip to Europe in 2013.  Rachel Lee also spent her ill-gotten gains on luxury clothing and jewelry, including a $64,000 Rolex watch for Blancey Lee.   While selling off the victim’s property, Rachel Lee and Blancey Lee purchased a 2012 Bentley Mulsanne and 2012 Ferrari on a single day, and plated those vehicles “MRBIG” and “MRBIG1”.   Finally, between 2010 and 2013, Rachel Lee and Blancey Lee used the victim’s money to purchase at least ten properties at a cost of approximately $3.3 million dollars.  Rachel Lee and Blancey Lee used four of the properties – in Bend, Portland, Canby, and Scappoose – as Psychic Shops.

As a result of investigators’ foresight, before the defendants were arrested or charged, bank accounts worth approximately $1.9 million dollars and assets including a 2012 Ferrari California and 1955 Chevy Bel-Air were identified and immediately seized to be forfeited and returned to the victim before they could be dissipated by the defendants.

By the time of Rachel Lee’s arrest and indictment in May 2014, the victim held less than $250,000 in accounts under his control.  Through the initiation of forfeiture proceedings, the Bentley, the Ferrari, the Bel-Air, and 10 real properties have already been returned to the victim,  and efforts are underway to restore to the victim the $1.9 million in cash seized and forfeited from bank accounts.  The government is initiating civil forfeiture proceedings to liquidate numerous Rolexes and other designer goods purchased by the defendants and will provide those proceeds to the victim.

“Greed and deceit led to incredible financial harm to the victim in this case,” said Special Agent in Charge Teri Alexander of Internal Revenue Service Criminal Investigation.  “While the recovery of funds and assets could never fully heal the wounds he sustained from being robbed of earnings derived over several generations, we successfully salvaged a significant portion of the money syphoned off by the Lee’s treachery.  I am pleased that we will be able to return all the recovered funds and proceeds from the sale of assets to the victim.”

Canby Police Chief Bret Smith, said:  “The Canby Police would like to express our appreciation and acknowledgement to the U.S. Attorney’s Office and to the Internal Revenue Service for their support and the many extra hours of hard work it took to bring this criminal investigation to a successful resolution”.  

This case was investigated by the Internal Revenue Service, Criminal Investigations and the Canby Police Department with assistance from the Multnomah County Sheriff’s Office, Social Security Administration - Office of Inspector General, the Oregon Department of Justice, and the Portland Police Department.  The case is being prosecuted by Assistant U.S. Attorney Donna Brecker Maddux and Assistant U.S. Attorney AnneMarie Sgarlata.

PORTLAND, Ore. – Four Portland, Oregon, residents were sentenced today in the U.S. District Court in Portland for a multi-year stolen identity tax refund scheme to defraud the United States of more than $1 million in tax refunds, announced Acting U.S. Attorney Billy J. Williams, and  Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.

Jheraun Dunlap, Ernest Bagsby, Jermaine Moore and Brandi McCall were collectively sentenced to serve more than 14 years in prison by U.S. District Judge Robert E. Jones.  Dunlap, 32, who was previously convicted of bank robbery, was sentenced to serve five years and five months in prison.  Bagsby, 37, who was previously convicted of delivery of heroin in Clackamas County, Oregon, was sentenced to serve four years and three months in prison.  Moore, 34, was sentenced to serve three years and nine months in prison, and McCall, 27, was sentenced to serve 12 months and one day in prison.  All four defendants were ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $427,896.

According to the plea agreements and court documents, the scheme involved the filing of 208 false federal income tax returns that included fraudulent claims for tax refunds between $3,000 and $9,000 per return.  Dunlap electronically filed the false tax returns using stolen identities or identities obtained by Bagsby and Moore.  McCall opened stored-value debit cards in her own name to receive the refunds.  The defendants directed the IRS to deposit the tax refunds onto stored-value debit cards and then the proceeds were shared among the participants in the scheme.  In total, as part of the scheme, the defendants requested more than $1 million in tax refunds.

All four defendants were captured on ATM footage withdrawing cash from stored-value debit cards that held the tax refund proceeds.  As part of the investigation, a search warrant was executed on the Facebook accounts of multiple co-conspirators, from which federal agents obtained photographs of stacks of cash, among other things.  The United States seized and forfeited assets traced to proceeds of the scheme, including a two-carat diamond engagement ring, a Mercedes Benz 500 and a 1971 Pontiac Firebird, both of which were purchased with $20 bills.

Acting U.S. Attorney Williams and Acting Assistant Attorney General Ciraolo  commended the special agents of IRS-Criminal Investigation, who investigated the case as part of the Stolen Identity Refund Fraud Task Force, and Trial Attorneys Leslie A. Goemaat and Lori A. Hendrickson of the Tax Division, who are prosecuting the case.

Photo seized from Bagsby’s Facebook account with caption: “So I was unable to rubber band up do to the fact that it just keeps pouring in . . . .”

Mercedes Benz 500 purchased with $20 bills and seized from Bagsby.

Pontiac Firebird purchased with $20 bills and seized from Dunlap.

PORTLAND, Ore. – U.S. District Judge Michael H. Simon sentenced Antonio Vernell Porter, 28, of Portland, to 12 years in prison, followed by ten years of supervised release, for sex trafficking of a minor.  Defendant pled guilty to one of three counts in October 2014.

According to court documents, the criminal conduct took place in 2009 and continued into early 2010.  Although initially charged as a single-victim case in December 2012, law enforcement located a second victim while the initial case was pending.  The government filed a superseding indictment in 2014 to add this second victim and two additional counts of sex trafficking.  In an interview with police, the second victim disclosed that she began working for defendant when she was just 15 years old, and that she did so because defendant threatened to harm her family if she did not work for him.  She performed dozens of commercial sex acts over several months in Oregon, California, Nevada, and Washington.

In August 2009, officers responded to a report that defendant allegedly struck the victim on the head with a toddler bike and then cut her hand with a knife.  Officers could not locate defendant at that time, but three months later, in November 2009, the police again responded to a report that defendant had beaten the victim (then 17) when she refused to “go work” (engage in commercial sex acts).  She described defendant as her “pimp” and said he punched her in the face when she refused to get out of his vehicle for work.  She explained that defendant would normally drop her off on 82nd Avenue to work, and “anytime I don’t wanna work the street I get a beating.”  While police were speaking with P.M., defendant called her cell phone.  She put the phone on speaker so the police could hear the conversation.  Officers heard defendant tell the juvenile victim that she “better be up on the avenue.”

This case was investigated by the FBI’s Child Exploitation Task Force (CETF), led by two task force detectives from the Portland Police Bureau (PPB).  The FBI-sponsored CETF partners with local law enforcement agencies to combat the commercial sexual exploitation of children in the area. Partners include the Portland Police Bureau, Tigard Police Department, Beaverton Police Department, and Vancouver Police Department, who work closely with prosecutors from both the U.S. Attorney’s office and Multnomah County District Attorney’s Office.  This case was prosecuted by Assistant U.S. Attorney Leah K. Bolstad.

PORTLAND, Ore. – Yesterday, U.S. District Court Judge Anna J. Brown sentenced Lloyd Benton Sharp, aka Kevin Thomas, age 79, of Clackamas, Oregon, to 60 months in prison for conspiracy to defraud investors in biodiesel projects in Ghana, West Africa, and Chile.  Judge Brown also sentenced Sharp to serve three years of supervised release and ordered him to pay $6,021,482 in restitution.

Between 2007 and 2013, Sharp conspired to defraud investors in a project to produce and sell biodiesel fuel in Ghana, West Africa.  When this investment failed, Sharp continued to defraud those same investors by soliciting additional funds for a project to transport biodiesel fuel from Argentina to Chile, and to build biodiesel refineries in Chile.  Sharp targeted a Christian men’s group in Beaverton as victims of the fraud scheme.

Sharp falsely told investors that their investment funds would be used to purchase the equipment and feedstock to operate a biodiesel refinery in Ghana.  Investors were falsely told that the Ghana refinery would be up and running within two months of them investing their money.  Sharp promised victims that if they each invested $50,000, they would receive a return of $7,000 per month for an indefinite period of time as soon as the biodiesel refinery was operational.   Sharp guaranteed investors that they could get 100% of their money back at any time.  Sharp did not use the investors’ funds to produce and sell biodiesel fuel in Ghana as promised, and the Ghana biodiesel refinery never became operational.

When questioned by investors about the Ghana refinery, Sharp claimed that a more promising investment opportunity had been found in Chile, and that a successful investment there would provide sufficient funds to get the Ghana refinery operational.  Sharp solicited and received additional funds from investors for investments in five biodiesel plants in Chile, and for the purchase of Argentinian biodiesel fuel to be trucked to Chile.   However, the Argentinian biodiesel was never purchased, and the Chilean biodiesel plants were never built.  Sharp used most of his share of the investors’ funds for his personal benefit.  In all, investors in the Ghana and Chile biodiesel schemes were defrauded of approximately $1.3 million.

Sharp has operated various fraud schemes in the western United States since at least 1984.  These schemes include the marketing and sale of investments in real estate, paulownia trees, luxury vacation condos, gold ore, and gold mines, in addition to the biodiesel project.  As part of his plea agreement, Sharp agreed to pay restitution in the amount of $6,021,482, which includes restitution to the victims of all his fraudulent schemes.   

This case was investigated by the United States Postal Inspection Service and the Oregon Division of Finance and Corporate Securities, and was prosecuted by Assistant U.S. Attorneys Claire M. Fay and Donna B. Maddux.

PORTLAND, Ore. – Billy J. Williams, Acting U.S. Attorney for the District of Oregon, today announced the unsealing of a criminal Information charging George R. Levey, 58, of Tarpon Springs, Florida, with honest services wire fraud in connection with Levey allegedly bribing Ellis McCoy, the former City of Portland Bureau of Transportation Manager in charge of Portland’s smart parking meter program.

The Information alleges that from 2002 through July 2011, Levey, formerly an executive with Schlumberger Industries, Inc. and later the owner and president of Cale Parking Systems, USA, Inc., bribed McCoy with golf trips, gambling trips, vacation trips, $56,675 in phony consulting fees paid to EKM Consulting, a business McCoy set up to receive and disguise these payments, and the promised payment of $137,100 when McCoy ended his employment with the City of Portland.

It is further alleged that Levey bribed McCoy so McCoy would speak favorably about Levey’s companies to other cities interested in buying smart parking meters.  Additionally, McCoy would disclose to Levey information he learned from counterparts in other cities that would help Levey’s companies secure smart parking meter contracts with those cities, and would help Levey’s companies secure, keep, and expand contracts to supply smart parking meters to the City of Portland.  In return for the bribes, McCoy gave Levey advice about how to draft contract proposals to be submitted to the City of Portland, disclosed to Levey internal deliberations of the Portland City Council and the Portland Bureau of Transportation, and testified before the Portland City Council in favor of awarding contracts to Levey’s companies.

“The citizens of every city in Oregon are entitled to honesty and transparency every time public money is spent,” said Acting U.S. Attorney Billy J. Williams.  “The bribing of public officials involved in contracting corrupts the contracting process, harms honest contractors and citizens, and diminishes public trust in local government.  This office, working with its law enforcement partners, makes it a priority to aggressively investigate and prosecute those who bribe public officials and the public officials themselves.”

Ellis McCoy has pleaded guilty to accepting bribes from previously undisclosed contractors and is scheduled to be sentenced on May 27, 2015.

This case was investigated by the FBI and the IRS-Criminal Investigation Division.  The case is being prosecuted by Assistant U. S. Attorney Seth D. Uram.

Click here to see the attached information for additional details

PORTLAND, Ore. – April 8, 2015, Pedro Cervantes-Urbina, 34, originally from the State of Michoacán, Mexico, was sentenced to 80 months in prison after his federal conviction for conspiracy to distribute and possess with the intent to distribute methamphetamine.  When the defendant is released from prison he will serve an additional three years of supervised release.

In March 2011, the U.S. Attorney’s Office and the Portland Police Bureau requested the assistance of Homeland Security Investigations (HSI), and then later the Drug Enforcement Administration (DEA) and Westside Interagency Narcotics (WIN) Team, in investigating a large-scale methamphetamine and heroin drug trafficking organization operating in the greater Portland, Oregon metropolitan area.  Between the spring of 2011 and the summer of 2012, law enforcement authorities investigated the organization using informants and conducting controlled drug purchases from members of the organization.  In September 2012, the government sought and received permission to start using the first of eight federal wiretaps targeting the organization.

Wire intercepts confirmed that the defendant purchased pound level quantities of methamphetamine from the drug trafficking organization for purposes of further distribution within Oregon.  On February 15, 2013, as a result of this investigation, federal agents arrested the defendant in the parking lot of a Portland hotel.  Subsequent searches of the defendant, his hotel room, his residence and a storage shed found $4,814 in cash, cocaine, four handguns, a rifle, a shotgun, drug packaging materials, scales, ammunition, drug ledgers and bags containing methamphetamine residue.  The defendant was interviewed and admitted that he sold drugs to support himself and his family.  At the time of the crime, the defendant had a prior 2008 state conviction for the delivery of a controlled substance.

“The combination of drugs and firearms is a lethal mixture that threatens the safety of our community,” stated Acting U.S. Attorney Billy Williams.  “Our office will continue to work with law enforcement to find and prosecute the members of these criminal organizations who profit by selling drugs within our community."

This case resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by HSI, DEA, the Portland Police Bureau’s Drugs and Vice Division, the Westside Interagency Narcotics (WIN) Team, and the U.S. Attorney’s Office.  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.  The case was prosecuted by Assistant U. S. Attorney Scott Kerin, Chief of the District of Oregon’s OCDETF program.

PORTLAND, Ore. - Billy J. Williams, Acting U.S. Attorney for the District of Oregon, today announced that a federal grand jury sitting in Portland returned an indictment charging defendants:

• David G. Kiraz, of Happy Valley, Oregon,
• Marci K. Kiraz, wife of David Kiraz and a resident of Happy Valley, Oregon,
• Daniel G. Kiraz, brother of David Kiraz and a resident of Portland, Oregon, and
• George D. Kiraz, father of David Kiraz and Daniel Kiraz and a resident of Estacada and Portland, Oregon

with engaging in a scheme to file false federal income tax returns that underreported $1,501,874 in cash from their operation of two Portland-area strip clubs and to cheat the IRS out of $519,503 in income taxes.  The indictment identifies David Kiraz as the owner and operator of the strip clubs, Daniel Kiraz and George Kiraz as managers of the strip clubs, and Marci Kiraz as a bookkeeper for the strip clubs.

The indictment alleges that the defendants operated Cabaret Lounge, a strip club located at 503 W Burnside Street in Portland and Cabaret Lounge II, a strip club located at 17544 SE Stark Street in Gresham. From 2007 through mid-2011, the strip clubs collected cash through cover charges from customers and stage fees from dancers, all of which were recorded in daily records at the businesses, however, the defendants allegedly had these records destroyed.

The defendants allegedly maintained two sets of books -- one set that did not record the cover charge cash and dancer stage-fee cash and one set that did. The first set of books was a profit and loss spreadsheet kept on the businesses’ computers on which the cover charges and dancer stage-fees were not recorded.The second set of books was a profit and loss spreadsheet kept on defendant David Kiraz’s personal computer at his home on which the defendants accurately recorded the cash made through cover charges and dancer stage-fees.

The indictment further alleges that each year the defendants reported the business activity of the strip clubs on the individual income tax return of defendant David Kiraz using a Schedule C, “Profit or Loss From Business”.The defendants gave their tax return preparers false records, intentionally causing the return preparers to create tax returns for defendant David Kiraz that did not report most of the cash obtained through cover charges and dancer stage fees.This resulted in underreporting of taxable income totaling $1,501,874 and a tax loss of $519,503 for tax years 2007 through 2010.

“Adult entertainment businesses deal primarily in cash, and that makes it much easier for some owners of these businesses to cheat on their taxes,” stated Acting U.S. Attorney Billy Williams.  “This office, in partnership with the IRS, will vigorously investigate and prosecute business owners who do not abide by the tax laws or pay their fair share of income taxes.”

This case was investigated by the Criminal Investigation Division of the Internal Revenue Service.  The case is being handled by Assistant U. S. Attorney Seth D. Uram.

Additional details can be found in the attached indictment, here.  Kiraz Indictment

PORTLAND, Ore. – U.S. District Judge Michael H. Simon sentenced Isaiah Michael Simpson, 30, of Portland, Oregon, to 120 months in prison for sex trafficking of a minor.  Simpson will be required to serve five years on supervision following his release from prison, and will be required to register as a sex offender.  Simpson will serve his sentence concurrently with a 5-15 year sentence imposed in November 2014 in state court in Las Vegas, Nevada, for carrying a concealed firearm.

Simpson pled guilty in December 2014 to trafficking a minor for the purpose of prostitution for a one-week period in 2013.  According to documents filed in the case, Simpson was also responsible for trafficking three adult women, including his wife, between 2009 and 2013.  Simpson would demand that the women make more money from prostitution before they could stop working for the night, and told his wife in a text message to “stay on your money till you pass out exhausted.”  The term “stay on your money” is known to law enforcement to mean “continue to engage in prostitution” to those in the prostitution industry.

“The commercial sexual exploitation of children violates federal sex trafficking laws, as does sex trafficking of adult women by force and coercion, and is a heinous offense,” stated Acting U. S. Attorney Billy J. Williams.  “Anyone who traffics a child or uses coercion to compel prostitution in the District of Oregon will be prosecuted and face lengthy mandatory prison sentences.”

This case stemmed from a coordinated investigation by members of the FBI’s Child Exploitation Task Force, including the FBI and the Portland Police Bureau.  The FBI’s Child Exploitation Task Force marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims.  The case was prosecuted by former Assistant U.S. Attorney Stacie Beckerman, who was recently appointed as a United States Magistrate Judge.  Assistant U.S. Attorney Jane Shoemaker, Chief of the Violent Crimes Unit, handled the sentencing.

PORTLAND, Ore. – William Clements, Sr., 44, of the Warm Springs Indian Reservation, was sentenced today to 21 months in federal prison by U.S. District Judge Michael W. Mosman.  In November 2014, Clements pled guilty to the felony offense of assault resulting in serious bodily injury.  Clements has remained in the custody of the U.S. Marshals Service since his arrest in May of 2014.

“The epidemic of domestic violence in Tribal Nations must stop,” stated Acting U.S. Attorney Billy J. Williams. “Mr. Clements’ crime caused serious and dangerous injuries to his wife.  But we know that domestic violence also negatively impacts children, families, and the entire community.”

After Clements has completed his 21 months in prison, he must serve three years of federal supervised release.  While on supervised release, Clements will be required to attend drug and alcohol rehabilitation, participate in mental health treatment, and successfully complete a domestic violence counseling program.

According to the public filings in the case, on May 16, 2014, Clements intentionally assaulted his wife, causing her to suffer serious physical injuries.  The investigation began when the Warm Springs Police Department responded to a report of domestic violence.  The police found the victim at home, and she described how Clements had slammed her into the ground and repeatedly hit her.  The victim suffered bruising and lacerations from the assault, and she was transported to the St. Charles Medical Center in Madras for treatment.  Clements had fled the scene before the police arrived, but he was arrested the following week.  During an interview with the police, Clements admitted to hitting the victim with his fists and elbows, and kicking her with his feet.  Clements also confessed to pulling the victim by her hair.

Prior to imposing his sentence, Judge Mosman addressed Clements.  “I think a man beating his wife is a terrible thing,” said Judge Mosman. “So I take that crime very seriously.”

The case was investigated by the Warm Springs Police Department and FBI Special Agents in Bend.  Assistant U.S. Attorney Craig J. Gabriel prosecuted the case.

PORTLAND, Ore. – Robert L. Keys, 65, an Oregon resident, was sentenced today by U.S. District Judge Marco Hernandez to serve 70 months in prison, after pleading guilty to wire fraud, money laundering, and bankruptcy fraud.  Keys was also ordered to serve three years supervised release, and he must pay restitution in the amount of $1.1 million.  Keys was a prominent businessman who ran a company called Private Consulting Group, which at one time had assets of $400 million and managed investments for high net worth individuals around the country.

“People who prey upon our elderly citizens in this manner will be held accountable and are deserving of a lengthy prison sentence,” stated Acting U.S. Attorney Billy Williams.  “This office is committed to prosecuting individuals for conduct that destroys the trust necessary for safe investments.” 

Keys pled guilty to two counts of wire fraud, two counts of money laundering, and one count of bankruptcy fraud at his change of plea hearing held on September 9, 2014.  At that hearing, the government contended that in 2008, as Keys’ business ventures were failing, he turned to one of his long-term clients, a widow in her mid-80s, and persuaded her to loan $1.1 million to co-defendant William Kearney, now deceased.  Keys lied to his client about the terms of the loan, such as the existence of treasury bonds as collateral for the loan, and he failed to disclose important facts to her in order to fraudulently obtain money for his benefit and that of Kearney.

Keys also received over $100,000 in kickbacks as part of the scheme to defraud his long-time client. Those kickbacks were wired to him by Kearney the day after Keys persuaded his client to loan Kearney the $1.1 million.

In addition to the wire fraud and money laundering charges, Keys and his wife filed for bankruptcy in 2010, and Keys fraudulently attempted to discharge $148 million in debt by lying to the Bankruptcy Court, concealing assets and income, and filing false documents with the Court.

This case was investigated by the Internal Revenue Service, Criminal Investigation, and the United States Trustees Office.  The case was prosecuted by Assistant United States Attorney and Senior Litigation Counsel Allan M. Garten.

PORTLAND, Ore. – Today before U.S. District Judge Michael W. Mosman, Michael James Duncan, 32, pled guilty to accessory after the fact to arson resulting in personal injury.  He is currently in the custody of the U.S. Marshals Service, and his sentencing is scheduled for July 6, 2015.

By his guilty plea, Duncan admitted that on November 15, 2013, he knew that Marcus Tyler had committed an arson inside Pal’s Shanty Tavern in NE Portland that resulted in extensive burns to Tyler.  Duncan further admitted that he assisted Tyler in order to hinder and prevent Tyler’s apprehension, trial and punishment.  Tyler pled guilty in federal court on November 5, 2014, to arson resulting in personal injury.  He is scheduled to be sentenced on June 24, 2015, and faces a mandatory minimum sentence of seven years in prison.

With respect to Duncan’s plea to accessory after the fact to arson, Duncan drove Tyler away from Pal’s Shanty Tavern after the arson, which occurred at approximately 1:24 a.m. on November 15, 2013.  Tyler was severely burned during the course of the arson after slipping on gasoline he had poured on the floor to ignite the fire.  However, instead of taking Tyler to the hospital, and in order to avoid detection by the police, Duncan drove Tyler back to his house in SE Portland and attempted to treat Tyler’s burns without medical attention.  Eventually, over an hour after the arson, Duncan called 911 to ask for an ambulance to transport Tyler to the hospital.  Duncan, who has been friends with Tyler since high school, falsely told the 911 operator and police that he did not know Tyler and that he had simply found a badly burned, naked man in the middle of the street in SE Portland.   Duncan also instructed his girlfriend to lie to the police about the circumstances around the arson at Pal’s Shanty Tavern.

“The arson fire at Pal’s Shanty caused catastrophic losses for the property owner, and the neighborhood lost a treasured establishment.  The Fire Investigations Unit did what it is highly trained to do - uncover the root of arson and help bring the perpetrators to justice,” stated Portland Fire & Rescue Chief Erin Janssens.

Duncan faces a maximum sentence of 15 years in prison, a fine of up to $125,000, and three years of supervised release.

This case was investigated by the Portland Fire Bureau and the Portland Police Bureau.  The case is being prosecuted by Assistant United States Attorneys Pamala Holsinger and Craig Gabriel.

PORTLAND, Ore. - Stephen Francis Bukucs, 41, of Portland, was sentenced to six months in federal prison yesterday by U. S. District Judge Michael W. Mosman for two felony counts of aiming a laser pointer at commercial jetliners as they approached Portland International Airport for night landings in October 2013.  Following the prison term, Bukucs must serve three years of supervised release.

On July 15, 2014, Bukucs pleaded guilty to aiming his green laser device at United Airlines Flight 1406 and Jet Blue Flight 1205 as they flew over his apartment in Northeast Portland on October 13, 2013.  The laser struck both aircraft and distracted the pilots during their final descents to Portland.  Bukucs confessed to the FBI that, over several months, he had targeted up to 25 aircraft and that he did so for entertainment and as a “cat-and-mouse” game with the police who pursued him.   His arrest occurred after intense air and ground surveillance by FBI agents and police officers.  Investigators reported over 100 laser strikes from the vicinity of defendant’s apartment in 2013, the government stated to the court.

Bukucs, a native of Portland, worked for Delta Airlines in the Portland ground crew from 1997 to 2004.  From 2007 until his arrest, he worked for a private security firm, providing armed security in Portland and Vancouver, Washington.

Among his findings as part of the sentence, Judge Mosman found that “the offense involved recklessly endangering the safety of an aircraft.”  The government noted at sentencing that aiming a laser at aircraft always jeopardizes aircraft safety, since it may impair pilots’ vision by causing glare or flash blindness.  The action can force pilots to divert their eyes from their flight or landing path, startle them, and reduce their ability to observe obstacles.

The investigation was conducted by the FBI, the Portland Police Bureau, the Port of Portland Police and the Clackamas County Sheriff’s Office.  The case was prosecuted by Assistant U. S. Attorney Stephen F. Peifer.

MEDFORD, Ore. -  On Monday, March 16, 2015, Senior U.S. District Judge Owen M. Panner sentenced Joel Daniel Dixon, 49, of Medford, Oregon, to 188 months in federal prison, after he previously pled guilty to being a felon in possession of ammunition.  Dixon will be on supervised release for five years after he completes his prison sentence.

In February 2013, a Jackson County Probation officer, accompanied by Jackson County Sheriff’s deputies, conducted a home visit on a probationer.  The probation officer had reason to believe that another fugitive was at the residence.   A sheriff’s deputy went to the back of the residence and saw Dixon hiding by the back window in a narrow space between the fence and the house.  The deputy ordered Dixon to put his hands up.  Dixon turned away, reached into his pocket and threw something down, and then walked towards the deputy with his hands up.  The deputy frisked Dixon and found a Colt .380 magazine loaded with five .380 rounds in his pocket.  In the narrow space where Dixon was hiding, officers found a small baggie of methamphetamine that had been dropped on the ground, a gallon ziplock of marijuana bud, a backpack, and a leather satchel containing 584 grams of methamphetamine packaged for sale.

Under federal law, any person who possesses a firearm or ammunition after being previously convicted of three violent felonies or felony drug trafficking crimes is an Armed Career Criminal and faces a 15 year mandatory minimum prison sentence.  Dixon’s criminal history includes over 62 arrests, with 14 felony convictions, including felony attempt to elude police, manufacture of methamphetamine, possession of a controlled substance, supplying contraband, theft in the first degree, and felon in possession of a firearm.   Dixon also has 22 misdemeanor convictions, including six assault in the fourth degree convictions, resisting arrest, attempt to elude police, false information to police, and felon in possession of a restricted weapon.

This case was investigated jointly by Jackson County Parole and Probation Services, the Jackson County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.

For more information please see the attached documents linked below.

State and Feds Reach Accord on Mental Health Plan - March 3rd 2012

U.S. Attorney's Office and Civil Rights Division Sign Agreement Move Forward on State-Wide Community Mental Health Reform - November 9th 2012

Letter to John Dunbar - April 9th 2013

Oregon Mental Health Cover Letter for the Interim Report - January 2nd 2014

Oregon Mental Health Attachment to State Interim Report - January 2nd 2014

Oregonian Article - January 23rd 2014

Oregon’s Status Resolving the U.S. Department of Justice’s Investigation into Oregon’s Mental Healthcare System - March 11th 2015

PORTLAND, Ore.—Christian Olivier DeLaurentiis, 33, of Aloha, Oregon, was sentenced today by U.S. District Judge Marco Hernandez to 25 years in prison for a series of seven bank robberies committed in Western Oregon in early 2012.  Judge Hernandez ordered the sentence to be served concurrently with the sentence yet to be imposed in Washington County Circuit Court for aggravated murder and abuse of a corpse, to which defendant has also pleaded guilty.

DeLaurentiis pleaded guilty in federal court on November 17, 2014, to the following bank robberies:

1. January 2, 2012, at U.S. Bank in Medford, Oregon;
2. February 8, 2012, at U.S. Bank in Hillsboro, Oregon;
3. February 13, 2012, at U.S. Bank in Clackamas, Oregon;
4. February 24, 2012, at U.S. Bank in Beaverton, Oregon;
5. February 28, 2012, at Wells Fargo Bank in Troutdale, Oregon;
6. March 19, 2012, at U.S. Bank in Wilsonville, Oregon;
7. April 3, 2012, at Washington Federal Bank in Woodburn, Oregon.

The first five robberies involved demand notes with representations that DeLaurentiis was armed, but the tellers saw no weapons.In the Wilsonville robbery DeLaurentiis was armed with a purported bomb which turned out to be a hoax device.In the Woodburn robbery he was armed with a handgun which he waved at the tellers.

DeLaurentiis is awaiting sentencing in Washington County on his guilty pleas to the murder and dismemberment of an accomplice in the bank robberies.  In May 2012 law enforcement officers found the remains of the accomplice in a freezer in DeLaurentiis’ Aloha residence.

The bank robbery investigations were conducted by the FBI in conjunction with local law enforcement agencies in each jurisdiction.  The federal case was prosecuted by Assistant U. S. Attorney Stephen F. Peifer.

EUGENE, Ore. – On March 11, 2015, Gary Lee Walls, 39 years old, of Eugene, Oregon, was sentenced by U.S. District Judge Michael McShane to 10 years in federal prison for unlawful possession of a firearm.  Upon his release from prison, Walls will be on supervised release for three years.

On August 29, 2013, Eugene Police Department officers arrested Walls for an outstanding parole violation and found him carrying a loaded handgun, knife, and methamphetamine.  Walls is a member of the gang called the Insane Peckerwood Syndicate and has a lengthy criminal history, including prior felony convictions for robbery and kidnapping.

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

EUGENE, Ore. – On March 5, 2015, Gavin Fraser, 27, of Bend, Oregon, was sentenced by U.S. District Judge Michael McShane to 72 months in federal prison for possessing with the intent to distribute methamphetamine.  Upon his release from prison, Fraser will be on federal supervised release for four years.

On July 1, 2013, members of the Central Oregon Drug Enforcement Team (CODE) observed Fraser’s vehicle as it engaged in a trip to Portland – a trip which officers believed was for the purpose of picking up drugs and transporting them back to the Bend area for distribution.  Officers stopped and searched the vehicle as it returned to Bend and discovered Fraser was transporting approximately 25 grams of methamphetamine, 24 grams of heroin, scales, packaging materials, and a .22 caliber handgun.

Fraser has prior convictions for unlawful delivery of methamphetamine and heroin and has been the subject of several investigations by CODE, which also investigated and handled the July 1, 2013 case.  The CODE team is a multi-jurisdictional narcotics task force supported by the following Central Oregon law enforcement agencies:  Bend Police Department, Deschutes County Sheriff’s Office, Redmond Police Department,  Prineville Police Department, Crook County Sheriff’s Office, Jefferson County Sheriff’s Office, Madras Police Department, Oregon State Police, Sunriver Police Department, Black Butte Police Department, United States Drug Enforcement Administration (DEA), Warm Springs Tribal Police Department, Deschutes, Crook, and Jefferson County District Attorney’s Offices, and the Oregon National Guard.

This case was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.

PORTLAND, Ore. – U.S. District Court Judge Robert E. Jones today sentenced Rachel Lee, 44 of Canby, Oregon, to 100 months in prison for her lead role in a conspiracy to commit wire fraud, money laundering, and her failure to file personal income taxes.   Judge Jones also ordered Lee to pay $15,490,978.65 in restitution to the victim.  In addition to the prison sentence, she must serve three years of post-prison supervised release.

“Fueled by greed and a complicated web of deceit, Rachel Lee gained control of her victim, liquidated his fortune, and left him nearly penniless,” said United States Attorney Amanda Marshall.  “Due to the combined efforts of federal, state, and local law enforcement, the victim is now safe and financially stable.  We will continue to work tirelessly with our law enforcement partners to hold self-serving crooks accountable, protect victims, and seek full restitution.”

According to documents filed with the court, the victim met Lee in 2004 when he visited her Psychic Shop in Bend, Oregon.  Between 2004 and 2006, Lee fostered a friendship with the victim for the purpose of extracting money from him and falsely claimed that she provided care for her dying husband.  She also falsely claimed that she assisted with bookkeeping for her husband’s business.  As a result of these lies and the trust she established with the victim, Lee assumed the role as a paid caregiver to the victim’s elderly father by 2007.  Trusting her to act in his best interests, the victim turned over all personal and business account control to Lee.   While controlling the victim’s finances, Lee and her family lived in a million-dollar home in the Portland West Hills purchased with the victim’s money.

As part of the fraud scheme, Rachel Lee recruited members of her family to play key roles in carrying out the deception.  She and her daughter, Porsha Lee, created a fake persona named Mary Marks and introduced this character to the victim.  This character wore a blond wig, glasses, a hat, and sported a British accent.  Porsha Lee, as Mary Marks, met the victim and used information her mother provided her to connect with him.  She claimed to be a bookkeeper, and soon after began assisting Rachel Lee with the management of the victim’s accounts.

By 2011 the victim believed he and Mary Marks had married and had a child.  The child presented to the victim as his son is actually one of Rachel Lee’s grandchildren.  Digital images reveal years of holidays, birthdays and events with the victim, Rachel Lee, Porsha Lee as Marks, and their purported child.

Between 2007 and 2011, Rachel Lee directed the victim to incrementally liquidate investment accounts totaling approximately $3.8 million dollars.  After depleting the victim’s investment accounts, Rachel Lee convinced the victim he owed substantial taxes and needed to sell his family’s tree farm.  At Lee’s direction, the tree farm properties were sold for approximately $12.3 million dollars.

Rachel Lee and her family spent the victim’s fortune on a luxury lifestyle.  Lee directed funds for high-roller trips to Las Vegas, trips to California, and a first class trip to Europe.  She also spent her ill-gotten gains on luxury clothing and jewelry, including a $64,000 Rolex watch.   While selling off the victim’s property, Rachel Lee and her co-defendant, Blancey Lee, purchased a Ferrari and a Bentley on a single day.   Finally, between 2010 and 2013, Lee and her co-defendants used the victim’s money to purchase at least 10 properties at a cost of approximately $3.3 million dollars.  She and her family used three of the properties – in Bend, Canby, and Scappoose – as Psychic Shops.

By the time of Rachel Lee’s arrest in May 2014, the victim held less than $250,000 in assets under his control.   As a result of the investigation, the 10 properties purchased with the victim’s money will be sold for the victim’s benefit.   Internal Revenue Service criminal agents seized approximately $1.9 million in cash from bank accounts in the name of Rachel Lee, as well as the Ferrari, the Bentley, and other items.  All federally seized assets will be returned to the victim after all defendants are sentenced.  Co-defendants Porsha Lee and Blancey Lee are scheduled for sentencing in April.

“This is a heartbreaking crime,” said Special Agent in Charge Teri Alexander of IRS Criminal Investigation.  “The level of deceit that Rachel Lee and her family resorted to is almost unconscionable.  I am proud our agents could work alongside our law enforcement partners to dismantle this scam.”

“This investigation is an example of outstanding achievement in respect to the investigative efforts by the Canby Police Department, the U.S. Attorney’s Office, and the Internal Revenue Service,” said Canby Police Chief Bret Smith.  “This was a complicated investigation requiring expertise and patience from everyone involved in order to bring it to a successful resolution.”

The case was investigated by the Internal Revenue Service, Criminal Investigations and the Canby Police Department, with assistance from the Social Security Administration, Office of Inspector General; the Multnomah County Sheriff’s Office; Portland Police Bureau; and the Oregon Department of Justice.  The case is being prosecuted by Assistant U.S. Attorneys Donna Maddux and AnneMarie Sgarlata.

PORTLAND, Ore. – On Thursday, February 19, 2015, the Portland City Council voted 3-2 to assign two Portland Police Bureau (PPB) officers to the Joint Terrorism Task Force.  Mayor Charlie Hales joined Commissioners Dan Saltzman and Nick Fish in voting to allow PPB officers to participate in the JTTF.  PPB officers will join other regional law enforcement partners involved in the JTTF.

U.S. Attorney Amanda Marshall joins in applauding the vote of the Portland City Council to rejoin the JTTF.  “Our thanks to the leadership of Mayor Hales, Commissioner Dan Saltzman, and Commissioner Nick Fish in taking this historic step to work with other regional law enforcement partners to ensure the public safety of the citizens of Portland and the surrounding communities.  Law enforcement in this era is dependent upon effective and committed partnerships.  The involvement of PPB with their federal and regional law enforcement partners is a crucial component for effective investigative activities, critical oversight of the investigations, and will improve the transparency of the JTTF partners.  PPB’s involvement provides community-based assistance with detection, prevention, as well as timeliness in responding and apprehending suspects in the event of an act of terrorism.  Combined with the community outreach efforts of the Department of Justice and the FBI to counter violent extremism at the local, national, and international levels, we are committed to work together with the City of Portland to ensure public safety and protect civil liberties.”

Greg Bretzing, Special Agent in Charge of the FBI Oregon stated that, “We work day in and day out with Portland Police on many different levels – from the street to the chief’s office. Together, we address crime problems that affect the people who live and work in Portland: gang crimes, drug trafficking, child sex trafficking, child predators and more.  “Today’s vote to allow Portland Police Bureau to rejoin the JTTF will serve to strengthen that relationship in a critical area – preventing acts of terrorism. It is our mission to keep our shared community safe while at the same time protecting the freedoms we all enjoy in this country.”

"The 104 FBI led Joint Terrorism Task Forces (JTTF) around the nation are staffed with federal, state and local law enforcement professionals who share the common goal of protecting our national security and public safety," said John Carlin, Assistant Attorney General for National Security.  "I commend the Portland City Council's decision to allow their police department to rejoin the local JTTF and look forward to having them back on board."

PORTLAND, Ore. – United States Attorney Amanda Marshall is pleased to be in attendance at a Summit on Countering Violent Extremism being hosted by the White House today in Washington, D.C.  The Summit will highlight domestic and international efforts to prevent violent extremists and their supporters from radicalizing, recruiting, or inspiring individuals or groups in the United States and abroad to commit acts of violence, efforts made even more imperative in light of recent, tragic attacks in Ottawa, Sydney, Paris, and Copenhagen.  It is expected that Summit participants will include President Barack Obama, Vice-President Joe Biden, Secretary of State John Kerry, Attorney General Eric Holder, and many others, from all over the world, deeply involved in the efforts to prevent such acts of violence.

The Summit is focused on developing an action agenda to address the rise in violent extremism by bringing together key stakeholders from national and local governments around the world, the private sector, civil society, and religious and youth leaders by identifying and addressing the conditions that can lead individuals to commit violent actions, as well as ways to prevent and intervene where appropriate – both of which are key elements of President Obama’s comprehensive national security strategy, and elements of the U.S. Attorney's strategy here in Oregon.

Individual United States Attorneys’ offices play a role in these efforts, as a critical part of President Obama’s national strategy to prevent violent extremism domestically focuses on partnering on a local level with social service providers, religious leaders, community members and law enforcement agencies to address violent extremism as part of the broader mandate of providing public safety and crime prevention in each of our communities.  A focus of the Summit, and of efforts by U.S. Attorneys, is developing ways to empower local communities by raising awareness and providing them with useful information so that they are better equipped to protect young people from the lure of radicalization.

Recognizing that preventing the spread of violent extremism requires localized, specialized, and expanded efforts, things that the U.S. Attorneys’ offices – along with many of our federal, state and local law enforcement partners – have been fully committed to for several years, and we continue to strive for enhanced open communication and transparency in Oregon.

“Protecting our citizens and our communities means more than finding ways to respond to terrorist incidents,” said U.S. Attorney Amanda Marshall.  “It requires working hand-in-hand with diverse communities to help further our understanding and ability to identify and address the various factors that can lead to radicalization and violence.  My office will continue to fight for those who are threatened because of their ethnicity, race, religion, gender or sexual orientation, and against all violent extremists who threaten the very core of Oregon’s culture of celebrating diversity and renouncing oppression.  I am honored to participate in this Summit, and I look forward to working with Oregonians to carry out this very important work.”

Additional information concerning efforts to prevent violent extremism can be found in an editorial by President Obama, published in today’s edition of the Los Angeles Times.

Marshall was one of five U.S. Attorneys who were invited to attend the Summit.

PORTLAND, Ore. – Reaz Qadir Khan, 51, a naturalized U.S. citizen residing in Portland, pleaded guilty to the crime of accessory after the fact for the assistance he provided to individuals connected to the May 27, 2009, suicide bomb attack at the headquarters of Pakistan’s intelligence service in Lahore, Pakistan, that killed approximately 30 individuals and injured 300 more.

In entering his plea before U. S. District Court Judge Michael Mosman, Khan admitted arranging for suicide bomber Ali Jaleel to receive approximately $2,450 inside of Pakistan prior to Jaleel’s participation in the May 27, 2009 bombing.  Khan further admitted to providing advice and financial assistance to Jaleel’s wives after the bombing knowing that such assistance would hinder and prevent the apprehension of Jaleel’s wives and others in the Maldives who may have been involved with Jaleel.

On May 27, 2009, Jaleel and two others conducted the suicide attack at the ISI Headquarters in Lahore.  The blast resulted in the death of approximately 30 people and injured 300 more.  In a video released by the media outlet of al-Qaeda shortly after the attack, Jaleel made a statement taking responsibility for the attack and he was shown preparing for the attack at a training camp in what is believed to be the Federally Administered Tribal Area of Pakistan. 

The maximum sentence for accessory after the fact is 15 years in prison and a fine of up to $125,000.  The parties have agreed to jointly request that the Court impose a sentence of 87 months in prison at defendant’s sentencing, which is set for June 8, 2015.

This case was investigated by the FBI’s Joint Terrorism Task Force.  The prosecution is being handled by Assistant U.S. Attorneys Ethan D. Knight and Charles F. Gorder, Jr. from the U.S. Attorney’s Office for the District of Oregon.  Trial Attorney David P. Cora, from the Counterterrorism Section of the Justice Department’s National Security Division, is assisting.

Counterfeit Checks and Victim Identification Used in Scheme to
Defraud Banks and Businesses

MEDFORD, Ore. - Ryan Juan Pitcher, 38, and Shawn Francis Farrell, 31, both from Medford, Oregon, and Logan Chad Clark, 25, Rogue River, Oregon were sentenced to federal prison Tuesday by U.S. District Judge Owen M. Panner for their convictions for conspiracy to commit bank fraud, aggravated identity theft and possessing and passing counterfeit checks. Pitcher was sentenced to 94 months; Farrell was sentenced to 36 months; and, Clark was sentenced to 24 months in addition to the time he had already served in federal custody. As part of each sentence, each defendant received a mandatory consecutive term of two years in prison required by federal statute where a victim’s identification was possessed or used in committing bank fraud.

According to documents filed with the court, Assistant U. S. Attorney Byron Chatfield said Pitcher was instrumental in committing all of the offenses that occurred in the latter part of 2013. He stole mail from postal collection boxes and mailboxes belonging to businesses and individuals and then used the personal identification to create various counterfeit identification and numerous counterfeit checks. In accomplishing the scheme, he used computers, printers, check-making software and paper stock to make the checks. He provided the items to other co-conspirators instructing them on how and where to negotiate the counterfeit checks. As part of their compensation, he provided them with drugs and/or money. Pitcher also has four prior state convictions for identity theft that included the use of stolen mail in passing fraudulent checks, as well as one other federal conviction in Oregon for possessing stolen mail.

Also according to court documents, Farrell committed much of the criminal activity on his own without participation of the other co-conspirators. He made counterfeit identification from a victim’s driver’s license he had stolen from the mail and used it multiple times to negotiate counterfeit payroll checks including opening a bank account in the victim’s name and, after depositing counterfeit checks, withdrawing money from bank branches in Ashland and Grants Pass, Oregon. Police arrested Farrell when he attempted to cash a counterfeit payroll check at another bank in Grants Pass. When police arrived, he assumed the identity of the victim, presenting the victim’s US Passport he had used in attempting to pass the counterfeit check. Several months earlier, Farrell was also convicted of identity theft in Jackson County, Oregon and was currently on probation when he committed the federal offenses.

Also according to court documents, defendant Clark traveled with Pitcher to various locations in Southern Oregon cashing counterfeit checks at businesses and banks. Clark was apprehended following a vehicle crash, but Pitcher eluded police on foot. Print logs from a laptop computer recovered from the vehicle revealed that out of 98 counterfeit checks, 37 checks were made payable to Clark. There were also other numerous counterfeit checks recovered from the vehicle made payable to Clark.

The other federally charged defendants, Shayna Campos, 23, and Nathan David Meyer, 29, are scheduled to be sentenced in the next few months. Cinnamon Danielle Duck, 23, is pending trial.

This case was investigated by the Medford Police Department, the Douglas County Sheriff’s office, Grants Pass Department of Public Safety and the U.S. Postal Inspection Service and prosecuted by Assistant U. S. Attorney Byron Chatfield.

Deported Alien Returns to Southern Oregon and Continues Trafficking Heroin

MEDFORD, Ore. – Zeus Apolo Guzman-Aguilar, 37, from Mexico was sentenced to federal prison for illegally reentering the United States.  On Tuesday, January 20th, Senior U. S. District Judge Owen M. Panner sentenced Guzman-Aguilar to 57 months in prison following an earlier deportation and conviction for drug trafficking.

On December 17, 2013, the Medford Police executed a search warrant at Guzman-Aguilar’s residence in Medford after receiving information that he had heroin packaged for sale at the residence. Police seized heroin and digital scales during the search.  Defendant had acquired both heroin and cocaine and was breaking them down for sale.  On February 5, 2014, he was convicted in state court for delivery of heroin and sentenced to 21 months in prison.

Immigration and Custom Enforcement agents became aware that Guzman-Aguilar was detained in state custody after the state drug conviction and also confirmed he had been sent back to Mexico on six prior occasions after earlier drug convictions.  On June 17, 2013, he was deported from the United States following his release from state prison.  Within four months of his deportation, he again illegally reentered the United States and returned to Medford for the specific purpose of continuing to sell and distribute heroin in the Medford area.

The case was investigated by Immigration and Customs Enforcement and was prosecuted by Assistant U.S. Attorney Byron Chatfield.

MEDFORD, OR—  On Tuesday, January 13, 2015, Senior U.S. District Judge Owen M. Panner sentenced Vincent Leon Johnson, 26, recently of Medford, Oregon, to 77 months in prison after he pled guilty to being a felon in possession of a firearm.  Defendant will be on three years of post-prison supervision upon completing his sentence.

On February 16, 2014, Medford police were dispatched to a report of drug dealing in the Taco Bell parking lot.  Police arrived and found the suspect automobile occupied by four people; three of them had arrest warrants.  Johnson was the front passenger.  Officers frisked Johnson and found $3,401 cash, digital scales, and a small amount of marijuana.  Officers seized a backpack found at Johnson’s feet and found a loaded Glock .40-caliber pistol, 50 grams of heroin, $260 cash, and photographs of Johnson.  Johnson admitted that he intended to deliver the heroin to another person and carried the loaded Glock .40 caliber handgun.  He has prior felony convictions for assault with firearm on a person and two separate convictions for felon in possession of a firearm.

Johnson was recently convicted in the Jackson County Circuit Court of racketeering and two counts of conspiracy to distribute heroin for arranging drug deals while incarcerated in the Jackson County Jail.  He was sentenced to 87 months in state prison.  As part of his plea agreement, his federal sentence will run concurrent with his state prison sentence.

This case was investigated jointly by the Medford Police Department and the Bureau of Alcohol, Tobacco, and Firearms (ATF), and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.

EUGENE, Ore. – On Tuesday, January 13, 2015, Christopher Shaun Kanatzar, 28, a resident of Springfield, Oregon, appeared before U. S. District Court Chief Judge Ann Aiken and pled guilty to felon in possession of a firearm. Kanatzar admitted possessing a loaded 9 mm caliber pistol and faces a ten-year maximum prison term and three years of post-prison supervision.

After accepting the guilty plea, Chief Judge Aiken scheduled Kanatzar’s sentencing hearing for March 17, 2015. 

According to court documents and statements made in court, on October 1, 2012, Springfield police attempted to stop Kanatzar who was driving a stolen car.  Kanatzar attempted to elude police and after a violent struggle, was taken into custody.  Inside the stolen vehicle, police located a pistol which Kanatzar had used to rob a man.

In 2012, Kanatzar was charged in state court with robbery, assault and driving offenses.  His guilty plea and admissions were part of a resolution of his federal and state charges.

Kanatzar was also convicted in 2006 for shooting at a man and a school administration building, first degree burglary and first degree theft.

This case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms, and the Springfield Police Department.  Assistant U.S. Attorney Frank R. Papagni, Jr., with the assistance of Lane County Deputy District Attorney Erik Hasselman, prosecuted the case.

WASHINGTON - Acting Deputy Assistant Attorney General Larry J. Wszalek for the Department of Justice's Tax Division, U.S. Attorney S. Amanda Marshall for the District of Oregon and Chief Richard Weber for the Internal Revenue Service-Criminal Investigation (IRS-CI) announced that Jheraun Dunlap, Ernest Bagsby, Jermaine Moore and Brandi McCall pleaded guilty today to a $1 million federal tax refund fraud scheme.

Dunlap admitted to filing 208 false federal income tax returns with false wages, false withholding and false refundable credits that claimed a total of more than $1 million in fraudulent refunds.  Dunlap filed false tax returns using the names and social security numbers of other individuals obtained directly and through Bagsby, Moore and McCall.  Dunlap filed a number of false tax returns using identities stolen by co-defendant Carolyn Gallagher, who previously pleaded guilty to identity theft.  Dunlap also used addresses obtained by Bagsby, Moore and McCall to receive stored-value debit cards loaded with fraudulent income tax refunds.

On Jan. 12, all four defendants pleaded guilty before Senior District Judge Robert E. Jones in the District of Oregon.  Dunlap pleaded guilty to conspiracy to defraud the government, wire fraud and aggravated identity theft.  Bagsby and Moore pleaded guilty to conspiracy to defraud the government, theft of government funds and aggravated identity theft.  McCall pleaded guilty to conspiracy to defraud the government.  All four defendants have agreed to pay full restitution to the U.S. Treasury in the amount of $427,896.

This case was investigated by the IRS-CI's Stolen Identity Refund Fraud Task Force.  Trial Attorneys Leslie A. Goemaat and Lori A. Hendrickson of the Tax Division are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division's website http://www.justice.gov/tax.

MEDFORD, Ore. - On Tuesday, January 13, 2015, Senior U.S. District Judge Owen M. Panner sentenced John Charles Saubert, 47, to 18 months in federal prison for forcibly resisting federal officers.  Saubert will be on three years of supervised release after he completes his prison term.

On September 23, 2014, Saubert was terminated as a cook with Xanterra Parks and Resorts at Crater Lake National Park due to excessive alcohol and performance issues.  During a shuttle ride back to his dorm, Saubert was disturbing other riders and allegedly fondled a woman’s leg after being told to stop.  Park rangers and the Xanterra manager contacted Saubert at his dorm room and warned that Saubert would be allowed to remain on the premises until the next day, but only if he remained in his dorm room.

Approximately 10 minutes later, the park rangers observed Saubert staggering outside and being very loud.  When the rangers told Saubert he was under arrest, Saubert responded, “I’m not going without a fight.”  Saubert jerked his hand away from a ranger’s grasp, hitting the ranger in the face, and shoved another ranger against the patrol car.  Saubert was wrestled to the ground but continued to fight despite the officers’ commands to stop resisting.   One ranger suffered bruised knees as a result of the fight.  After rangers placed Saubert in a patrol car, Saubert continued screaming profanities, banging his head against the window, and threatening to kill the officers and their families.

At Saubert’s initial federal court appearance the next day, he was released from custody and required to re-appear a week later.  Saubert failed to appear, and an arrest warrant was issued.  The U.S. Marshal’s tracked Saubert to a luxury resort in southern Utah, where he began working as a chef.  The U.S. Marshal’s arrested Saubert on October 5th and transported him back to Oregon.

This case was investigated by the Crater Lake Park Rangers and the U. S. Marshal’s Service, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.

EUGENE, Ore. – Roger Paul Villeneuve, 72, of Coos Bay, Oregon was sentenced on Wednesday, January 14, 2015, to thirteen months in prison after pleading guilty to structuring a currency transaction.  Villeneuve was given 45 days to self-surrender.

Federal regulations require banks to report currency transactions over $10,000, and willfully structuring a transaction to avoid a currency transaction report is a federal offense punishable by up to five years in prison and a $250,000 fine.

For the past 40 years, Villeneuve has worked as a private consultant and solicited investments for various gold and nickel mining claims located in the United States and Canada. When Villeneuve entered his guilty plea last September, he admitted to Chief U. S. District Court Judge Ann Aiken that in October 2012 he had advised an acquaintance to withdraw $9,950 in the form of a cashier’s check from Northwest Community Credit Union and told the acquaintance to keep the amount under $10,000 to prevent a currency transaction report.

The offense occurred while Villeneuve was serving a probationary sentence from a previous structuring conviction in 2011.   In the previous case, he received a sentence of five years of probation.   This time, he received prison sentences of seven months for the new offense and six months for the related probation violation, with the sentences to run consecutively.

This case was investigated by the FBI, Internal Revenue Service Criminal Investigation and the Oregon Division of Finance and Corporate Securities.  Assistant U.S. Attorney William “Bud” Fitzgerald prosecuted the case.

The case arose from a Metro Gang Task Force drug investigation

PORTLAND, Ore. – January 15, 2015, Clark Allen Bailey, 37, of Portland, Oregon, was sentenced to 120 months in prison after his federal conviction for felon in possession of a firearm.  When the defendant is released from prison he will serve an additional three years of supervised release.

The defendant’s conviction stemmed from a Metro Gang Task Force drug investigation which identified the defendant, a local gang associate, to be an active cocaine dealer.  On January 31, 2012, law enforcement officers executed a search warrant on the defendant and his residence.  Inside the defendant’s residence officers recovered cocaine, scales, drug packaging materials, and a loaded firearm.  The firearm, a loaded 9mm Ruger pistol, was found inside a stocking cap concealed between the mattresses in the defendant’s bedroom.  The defendant’s fingerprint was found on the gun magazine.

At the time of the crime, the defendant had multiple prior felony convictions for delivery of a controlled substance. The defendant pled guilty to the charge of being a felon in possession of a firearm on September 30, 2014.

“The combination of gangs, drugs and firearms is a lethal mixture that threatens the safety of our community,” stated U. S. Attorney Amanda Marshall.  “My office will continue to work with law enforcement to find and prosecute armed criminals."

This case was investigated by the Metro Gang Task Force.  The case was prosecuted by Assistant U. S. Attorney Scott Kerin, the Chief of the U.S. Attorney’s Office Drug Unit.

MEDFORD, Ore. - On Monday, January 12, 2015, Senior U.S. District Judge Owen M. Panner sentenced Steven Allen Longbrake, 28, of Medford, Oregon, to 12 1/2 years in federal prison for possession of methamphetamine with intent to distribute.   Longbrake had previously pled guilty to that offense on September 15, 2014.  After he completes his prison sentence, Longbrake will be on supervised release for five years.

On October 15, 2013, a Central Point Police Officer stopped a vehicle driven by Longbrake.  After developing information that there may be drugs in Longbrake’s vechicle police searched it, and discovered approximately four ounces of methamphetamine on Longbrake’s person and in his car.  Police also found digital scales and drug packaging in Longbrake’s backpack, and a trash bag full of marijuana plants in the back of the car.

Longbrake is a Federal Career Offender based upon his prior felony convictions for burglary in the first degree, manufacture of a controlled substance, and delivery of a controlled substance.  His criminal history additionally includes previous convictions for assault in the fourth degree, strangulation, escape in the third degree, and possession of a controlled substance.

This case was investigated jointly by the Central Point Police Department and the Drug Enforcement Administration, and was prosecuted by Assistant U.S. Attorney Judith R. Harper.