U.S. Attorney's Office - District of Oregon
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News Releases
Lebanon, Oregon Business Owner Charged with Tax Evasion and Theft of Government Funds - 06/13/19

PORTLAND, Ore.—A federal grand jury in Portland returned a six-count indictment today charging Lebanon, Oregon business owner Robert A. Lund, 62, with evading $1.7 million in income taxes, failing to file individual income tax returns, obstructing or impeding the IRS and theft of government funds as part of a multi-year scheme to defraud the U.S.

According to the indictment, in June 2002, after an IRS audit and a lengthy period of litigation, the U.S. Court of Appeals for the Ninth Circuit affirmed a U.S. Tax Court finding that Lund owed more than $444,000 in underreported tax liabilities. After the ruling, the IRS Collection Division continued its efforts to collect the taxes Lund owed. In response, Lund sent the IRS frivolous correspondence, threatened to the sue the IRS Revenue Officers, attempted to quash various summonses and subpoenas, filed false bankruptcy petitions, transferred real property to nominees and used nominees to open financial accounts and conceal his income.

From December 2000 to November 2013, Lund incorporated or controlled over 160 nominee business entities and used them to conceal his assets and income from the IRS. He operated four businesses—a computer consulting company, a bookstore, a nutrition store and a scuba diving company—from a building in downtown Albany, Oregon. Additionally, he operated a trailer park in Sweet Home, Oregon from which he rented trailer units to individuals receiving government rental assistance.

Lund will be arraigned on July 10, 2019 in Portland.

This case was investigated by IRS Criminal Investigation and the Oregon Department of Human Services and is being prosecuted by Seth D. Uram and Clemon D. Ashley, Assistant U.S. Attorneys for the District of Oregon.

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

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Attached Media Files: INDICTMENT-Lund-Final.pdf
Warm Springs Man Sentenced to Federal Prison for Involuntary Manslaughter and Illegal Firearm Possession - 06/11/19

PORTLAND, Ore.—Harold Blackwolf Jr., 35, of Warm Springs, Oregon, was sentenced today to 71 months in federal prison and three years’ supervised release for involuntary manslaughter and possession of a firearm as a convicted felon.

According to court documents, on September 28, 2017, Blackwolf was at a friend’s house on the Warm Springs Indian Reservation. While under the influence of alcohol, Blackwolf left his friend’s house and entered his Dodge Durango, a sport utility vehicle. Blackwolf drove away at a high rate of speed with his headlights off. As he was departing, he struck two adult men who were in the road, killing both. Blackwolf, a convicted felon, was arrested on April 20, 2018 and found to be in possession of a Taurus .38 special revolver.

A restitution hearing before U.S. District Court Judge Anna J. Brown will be held at a later date.

On February 27, 2019, Blackwolf pleaded guilty to two counts of involuntary manslaughter and one count of felon in possession of a firearm.

This case was investigated by the FBI and the Warm Springs Tribal Police Department. It was prosecuted by Paul Maloney, Benjamin Tolkoff and Craig Gabriel, Assistant U.S. Attorneys for the District of Oregon.

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

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Attached Media Files: SENTENCING-Blackwolf-Final.pdf
Madras Man Sentenced to Probation for Discharging Firearm During Road Rage Incident on Warm Springs Indian Reservation - 06/10/19

PORTLAND, Ore.—Dat Quoc Do, 28, of Madras, Oregon, was sentenced today to three years’ probation after being convicted at trial for the unlawful use of a firearm during a road rage altercation on the Warm Springs Indian Reservation in September 2017.

According to court documents and information shared during trial, on September 14, 2017, Do was riding in the front passenger seat of a vehicle driven by his girlfriend. The two were driving at night eastbound on Highway 26 on the Warm Springs Indian Reservation when they came upon another eastbound vehicle being driven by an adult member of the tribe. Also in the second vehicle were the driver’s adult daughter and her 12-year-old niece.

Do’s girlfriend was driving aggressively and tailgating the crime victims’ vehicle for over a mile when the crime victim motioned for her to pass. At some point in the encounter, the driver’s adult teen daughter threw a water bottle at, but did not hit Do’s vehicle. In response, Do fired several shots out the front passenger window of their vehicle, but did not hit the crime victims’ vehicle. After the initial shooting, Do’s girlfriend raised the passenger window and continued to tailgate the other vehicle. When she had a clear lane to pass, Do’s girlfriend moved to change lanes.

As Do’s girlfriend began to overtake the other car, Do extended his hand holding a handgun out of their vehicle’s front passenger window. Believing that Do was pointing the gun in her direction, the victim driver rapidly applied her brakes. Do fired several additional rounds as they drove away.

The victim driver called Warm Springs Tribal Police to report the incident while continuing to follow Do’s vehicle. A patrol officer later stopped their vehicle and ordered Do and his girlfriend out at gunpoint. Both were taken into custody. Officers recovered a Springfield Armory XD .45 caliber handgun in the front-passenger door pocket of the vehicle and a .45 caliber magazine partially loaded with five rounds in the center console.          

During sentencing, U.S. District Court Judge Michael H. Simon ordered Do to pay $1,158 in restitution to his victims to cover their lost wages during trial preparation and mileage to and from pretrial meetings, trial and sentencing in Portland.

On March 15, 2019, Do was convicted by a federal jury in Portland on two counts of unlawful use of a weapon.

This case was investigated by the FBI and the Warm Springs Tribal Police Department and prosecuted by Paul T. Maloney and Lewis S. Burkhart, Assistant U.S. Attorneys for the District of Oregon.

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

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Attached Media Files: SENTENCING-Do-Final.pdf
Otis, Oregon Man Sentenced to Eight Years in Federal Prison for Distributing Child Pornography Using Dropbox - 06/10/19

PORTLAND, Ore.—William Borges, 21, of Otis, Oregon, was sentenced today to 96 months in federal prison and five years’ supervised release for distributing child pornography.

According to court documents, investigators identified Borges in September 2016 as part of an ongoing investigation by the FBI’s Sacramento Field Office into the use of Dropbox, a cloud-based file sharing application, to distribute media depicting the sexual exploitation of children. A federal search warrant issued to Dropbox produced the email address Borges used to create a Dropbox account identified by investigators as containing child pornography. Investigators later matched three video uploads to Dropbox depicting the sexual abuse of young children to the IP address of Borges’ home in Otis. During a search of Borges’ home, he admitted to possessing child pornography and trading images and videos using Kik Messenger and Dropbox.

On November 13, 2018, Borges pleaded guilty to one count of distributing child pornography.

The FBI Sacramento Child Exploitation Task Force (CETF) and FBI Salem Resident Agency investigated this case. It was prosecuted by Amy Potter, Assistant U.S. Attorney for the District of Oregon.

The FBI’s CETF conducts sexual exploitation investigations—many of them undercover—in coordination with other federal, state, and local law enforcement agencies. The CETF is committed to locating and arresting those who prey on children as well as recovering underage victims of sex trafficking and child exploitation.

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

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Attached Media Files: SENTENCING-Borges-Final.pdf
Former Aequitas Owner and Chief Financial Officer Pleads Guilty in Fraud and Money Laundering Conspiracy - 06/10/19

PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Olaf Janke, a former owner and chief financial officer of Aequitas Management, LLC and several other Aequitas-owned entities, has pleaded guilty to conspiring to commit mail and wire fraud and money laundering.

According to court documents, Janke, 48, of Portland, Oregon, along with Brian A. Oliver, 54, of Aurora, Oregon and other unnamed co-conspirators, used the Lake Oswego, Oregon, company to solicit investments in a variety of notes and funds, many of which were purportedly backed by trade receivables in education, health care, transportation, and other consumer credit areas. Janke was the company’s chief financial officer and executive vice president until early 2015 and shared responsibility for the operation and management of Aequitas-affiliated companies and investment products as well as for the use of investor money.

From June 2014 through February 2016, Janke, Oliver and others solicited investors by misrepresenting the company’s use of investor money, the financial health and strength of Aequitas and its related companies, and the risks associated with its investments and investment strategies. Janke and his co-conspirators also failed to disclose other critical facts about the company, including its near-constant liquidity and cash-flow crises, the use of investor money to repay other investors and to defray operating expenses, and the lack of collateral to secure funds.

In March 2015, Janke ended his employment with the Aequitas companies and cashed out his equity in Aequitas Management. From January 2015 through June 2015, he received more than $1.3 million for his equity, knowing that it was paid with fraudulently obtained investor money.

Janke faces a maximum sentence of 30 years in prison, fines of $500,000 or twice the gross monetary gains or losses resulting from his crimes, and three years’ supervised release. He will be sentenced on September 25, 2019 before U.S. District Court Judge Michael H. Simon.

As part of the plea agreement, Janke has agreed to pay restitution in full to each of the victims as determined and ordered by the court.

Co-conspirator Oliver pleaded guilty to the same charges on April 19, 2019.

This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Attorneys for the District of Oregon.

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Attached Media Files: CHANGE_OF_PLEA-Janke-Final.pdf
Umatilla Woman Sentenced to Federal Prison for Scissor Attack - 06/10/19

PORTLAND, Ore.—Christina Sue Barkley, 30, an enrolled member of the Confederated Tribes of the Umatilla Indian Reservation and resident of Pilot Rock, Oregon, was sentenced today to 21 months in federal prison and three years’ supervised release for assault with a dangerous weapon.

According to court documents, during a psychotic episode on March 31, 2018, Barkley came into a room where another adult member of the tribe was making necklaces and stabbed the victim with a pair of scissors. The victim tried to get away, but she fell while backing away from Barkley. Barkley jumped on top of the victim and continued stabbing her. The assault continued until the victim’s spouse walked into the room and pulled Barkley off the victim.

The victim sustained multiple serious injuries, was taken to St. Anthony Hospital in Pendleton, Oregon and later transported via Life Flight to Oregon Health and Sciences University in Portland for additional treatment.

During sentencing, U.S. District Court Judge Michael W. Mosman ordered Barkley to continue mental health treatment, substance abuse treatment, and to participate in anger management and family counseling as part of her supervised release.

On February 20, 2018, Barkley pleaded guilty to one count of assault with a dangerous weapon.

This case was investigated by the FBI and the Umatilla Tribal Police Department. It was prosecuted by Jennifer Martin, Assistant U.S. Attorney for the District of Oregon.

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Attached Media Files: SENTENCING-Barkley-Final.pdf
Pill Mill Clinic Manager Sentenced to Nine Years in Federal Prison for Illegal Opioid Distribution - 06/03/19

PORTLAND, Ore.—Osasuyi Kenneth Idumwonyi, 58, of Houston, Texas was sentenced today to 108 months in federal prison and three years’ supervised release for illegally distributing opioids.

According to court documents, in January 2015, Idumwonyi along with codefendant and former nurse practitioner Julie Ann DeMille opened the Fusion Wellness Clinic on Southeast 122nd Avenue in Portland. From the clinic’s opening until July 2016, DeMille illegally wrote thousands of prescriptions for opioids including oxycodone and hydrocodone.

Idumwonyi has a history of operating medical clinics purporting to offer legitimate pain management services. His earliest clinic was started in 2009 in Houston, Texas. To maintain an appearance of legitimacy, Idumwonyi would employ physicians or nurse practitioners who were willing to illegally prescribe controlled substances in a manner that would not draw the attention of law enforcement or state regulators.

Idumwonyi and DeMille first met in late 2010 or early 2011. A mutual acquaintance with healthcare industry experience knew of DeMille as someone who willing to write illegal prescriptions. At the time, DeMille lived in the Houston area and was licensed to dispense controlled substances by the State of Texas.

Idumwonyi hired DeMille after interviewing her about her willingness to write prescriptions for a specific combination of controlled substances that were in demand at the time in Houston. Idumwonyi and DeMille worked together at his clinics in Houston from early 2011 to mid-2014.

As early as 2013, DeMille began planning a move from Houston, Texas to Portland. She was attracted to Oregon where licensed nurse practitioners can write prescriptions without the oversight and approval of a physician. She moved to Portland in 2014 and was hired by a publicly funded, county health clinic. From the beginning, DeMille planned to subsidize her county income by operating an illegal opioid pill mill.

After DeMille arranged to lease an office for newly-created Fusion Wellness Clinic, Idumwonyi drove a moving truck from Houston to Portland with the equipment from their last pill mill. Idumwonyi chose not move to Oregon and instead made plans to commute between Houston and Portland each week.

From January 2015 to his arrest in July 2016, Idumwonyi served as the gatekeeper, office manager and enforcer for the Fusion Wellness Clinic. He oversaw the recruitment of new patients, reviewed intake paperwork, collected payments, coordinated with patients and DeMille to ensure the patients received the drugs they were seeking and supervised the clinic’s two other employees. Idumwonyi’s patient-recruiting efforts included visiting a Narcotics Anonymous meeting and a homeless shelter in search of people susceptible to opiate addiction.

Idumwonyi eventually began to require some patients to kick back a portion of their prescribed pills to him for the “privilege” of returning to the clinic for additional prescriptions. He also required other patients to sell him a portion of their oxycodone pills, which he gave to his girlfriend, who was heavily addicted to the drug.

Idumwonyi and DeMille split the clinic’s cash proceeds. In a typical day at the clinic, DeMille saw up to 20 patients, charging each $200 in cash. In 2015, the clinic generated at least $388,000 in revenue. In 2015 alone, according to data from the Oregon Prescription Drug Monitoring Program, DeMille wrote more than 1,940 prescriptions for controlled substances. Together, these prescriptions resulted in the distribution of more than 219,000 pills, 96.7% of which were opioids.

Idumwonyi pleaded guilty on February 28, 2017 to conspiring to distribute or dispense and possessing with intent to distribute or dispense oxycodone and hydrocodone.

During sentencing, U.S. District Court Judge Robert E. Jones ordered Idumwonyi to pay $294,000 to satisfy a forfeiture money judgement, representing illegal proceeds from the clinic that were traced to Idumwonyi’s bank accounts.

Codefendant DeMille was sentenced on March 26, 2019 to four years in federal prison for illegally distributing prescription opioids, filing a false tax return and lying to federal agents.

This case was investigated by the Drug Enforcement Administration, U.S. Marshals Service and Portland Police Bureau. It was prosecuted by Thomas S. Ratcliffe and Donna Brecker Maddux, Assistant U.S. Attorneys for the District of Oregon.

Drug abuse affects communities across the nation, and opioid abuse continues to be particularly devastating. The CDC reports that from 1999 to 2016, more than 630,000 people have died from a drug overdoses. In 2016, 66% of drug overdose deaths involved an opioid. Drug overdose is now the leading cause of injury or death in the United States.

In Oregon, the total number of deaths related to drug use increased 11 percent between from 2013 to 2017, with 546 known drug related deaths in 2017. Nearly half of all prescriptions for controlled substances filled at Oregon retail pharmacies in 2017 were for opioids. Oregon has one of the highest rates of prescription opioid misuse in the country, with an average of three deaths every week from prescription opioid overdose.

If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.

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Attached Media Files: SENTENCING-Idumwonyi-Final.pdf
Umatilla Man Sentenced for Strangling Victim Near Children - 05/28/19

PORTLAND, Ore.—Joel Malcom Salt, 29, of Umatilla, Oregon, was sentenced today to time served, having already served 22 months in custody, plus three years’ supervised release for strangling his significant other in the presence of their four children.

According to court documents, on April 12, 2017, Salt, a Navajo Indian, violated a tribal protective order by going to the crime victim’s house. The victim is an enrolled member of the Confederated Tribes of the Umatilla Indian Reservation, who lives on the reservation with their four children. When Salt arrived at the house, he grabbed the victim by her hair, threw her to the ground in front of their children, and dragged her to the bedroom. Once in the bedroom, Salt pinned the victim to the floor, punched her and strangled her, causing her to lose consciousness several times.

To divert his attention, victim told Salt their children probably left the house to tell her father, who lived next door, that Salt was beating her. Hearing this, Salt released his victim and left the room to check. While he was out of the room, the victim escaped out of the window and ran to her father’s house. Her father retrieved the four children and called the police. Salt fled before the police arrived, but was later arrested.

On June 13, 2017, a federal grand jury in Portland returned a one-count indictment charging Salt with assault by strangulation. He pleaded guilty to the charge on November 27, 2018.

During sentencing, U.S. District Court Judge Anna J. Brown ordered Salt to attend an intensive batterer’s intervention program and to undergo substance abuse and mental health treatment. Among other conditions of supervision, Salt is prohibited from entering the Umatilla Indian Reservation or contacting the victim and their children without advance approval of his probation officer and notice to the United States Attorney’s Office.

This case was investigated by the Umatilla Tribal Police Department and FBI Portland’s Safe Trails Task Force. It was prosecuted by Jennifer Martin, Assistant U.S. Attorney for the District of Oregon.

The Safe Trails Task Force (STTF) unites FBI and federal, state, local, and tribal law enforcement agencies in a collaborative effort to combat the growth of crime in Indian Country. STTF allows participating agencies to combine limited resources and increase investigative coordination in Indian Country to target violent crime, drugs, gangs and gaming violations.

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Attached Media Files: Sentencing - Salt-Final
Southern Oregon Man Sentenced to 46 Months in Federal Prison for Interstate Trafficking of Marijuana - 05/23/19

PORTLAND, Ore.—Daniel Stewart Gregg, 67, of Ashland, Oregon, was sentenced today to 46 months in federal prison and two years’ supervised release for engaging in a conspiracy to traffic Oregon-grown marijuana across state lines.

According to court documents, in 2015, Illinois law enforcement seized a 354-pound load of marijuana originating in Southern Oregon, valued at approximately $885,000. Following the seizure, investigators seized more than $153,000 from the courier’s residence in North Carolina. Further investigation revealed that Gregg had coordinated this shipment and other later out-of-state shipments of marijuana.

On June 8, 2018, Gregg waived indictment and pleaded guilty to a single count of conspiring to distribute a controlled substance.

Gregg has a long history with controlled substances. He was convicted of marijuana possession in 1970 and 1975, of distributing a hallucinogen in 2004 for which he served 15 months in federal prison and of selling marijuana in 2012.

This case was investigated by the U.S. Drug Enforcement Administration (DEA) and prosecuted by Julia E. Jarrett and Steven T. Mygrant, Assistant U.S. Attorneys for the District of Oregon.

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

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Attached Media Files: Sentencing Gregg Final
Oregon Man Sentenced to 15 Months in Federal Prison for Hate Crime Targeting Eugene Church - 05/23/19

EUGENE, Ore.—Benjamin Jaramillo Hernandez, 69, of Eugene, Oregon, was sentenced today to 15 months in federal prison and three years’ supervised release for committing a hate crime targeting St. Mary Catholic Church in Eugene in September 2018 and illegally possessing ammunition. The announcement was made by Assistant Attorney General Eric Dreiband of Department of Justice’s Civil Rights Division and U.S. Attorney Billy J. Williams of the District of Oregon.

“Threats of violence and hateful intimidation will not be tolerated by the Department of Justice,” said Assistant Attorney General Dreiband. “As demonstrated by this case, the Civil Rights Division will vigorously prosecute those who violate the right of individuals or entire communities to freely exercise their religious beliefs.”

“Mr. Hernandez used intimidation and threats of violence to terrorize a single congregation, but the harm from hate crimes like this extends beyond the specific individuals or group targeted. These crimes threaten the security, freedom and well-being of entire communities,” said U.S. Attorney Williams. “No conviction can reverse the harm caused by Mr. Hernandez, but we hope it provides some measure of justice to St. Mary parishioners and the entire Eugene community.”

“Our right to worship freely and without fear is fundamental to life in America,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “Whatever your faith, the FBI and our partners will work to protect your right to express your beliefs and live in peace.”

According to court documents, on Sept. 9, 2018, Hernandez was escorted from St. Mary property following an angry outburst during the sacrament of communion. Five days later, on September 14, a church employee reported to the Eugene Police Department that someone had dispensed pepper spray on the exterior door handles and through the mail slot of the St. Mary office front door. Employees reported burning sensations in their fingers and respiratory distress. A Eugene police officer and FBI agent identified Hernandez in church surveillance footage as the person responsible for both incidents.

On Sept. 16, 2018, Hernandez was again spotted near St. Mary. A witness saw Hernandez across the street from the church when he stopped near the Eugene Public Library and shouted at the witness, “I’ve got something for you right here,” while pointing to a bag he was carrying.

A few days later, on Sept. 20, St. Mary employees reported finding a threatening note and seven 10mm Sig hollow point bullets left in the office. The note threatened the church with “2 MP5s w/ 50 rounds each,” a type of submachine gun. The note concluded: “Eugene is going on the [expletive] map.”

A Eugene police officer again reviewed church surveillance footage and identified Hernandez as the individual who dropped off the note and bullets. On September 21, 2018, Eugene Police arrested Hernandez at the Eugene Public Library. During a search of Hernandez’s person, officers located a partially empty can of pepper spray, three .410 shotgun shells, and thirteen 10mm Sig hollow point bullets. The 10mm bullets were the same brand and caliber as the bullets left at St. Mary with the threatening note.

On Feb. 12, 2019, Hernandez pleaded guilty to a two-count information charging him with obstruction or attempted obstruction of persons in the free exercise of their religious beliefs and unlawful possession of ammunition.

St. Mary Catholic Church staff and parishioners have reported that Hernandez’s threats have left staff and churchgoers physically injured, frightened, concerned about their own safety and unable to participate freely in the exercise of their religious beliefs. The harassment has not only affected individual parishioners, but the parish as a whole. Multiple members of the St. Mary community have reported that the church has experienced a drop in attendance and in weekly collections after Hernandez’s conduct.

This case was investigated by the Eugene Police Department and the FBI and prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon, and Cameron Bell, Trial Attorney for the Civil Rights Division.

For more information about the Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to department hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.

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Attached Media Files: PDF Press Release
Portland Man Pleads Guilty to Production of Child Pornography - 05/22/19

PORTLAND, Ore.—Juan Carlos Ramon, 33, of Portland, pleaded guilty today to two counts of production of child pornography after sexually exploiting two minor victims, aged six and eight, using musical.ly, a social media application now known as TikTok.

According to court documents, on or about June 28, 2017, Ramon began communicating with two minors using the musical.ly app. He used the screen name “@lexithetiger” and pretended to be a minor female. Ramon encouraged his victims to play a “Simon Says” type game where he would send sexually explicit photos of a minor female and ask his victims to take and send him photos imitating the positions and acts depicted. The minor victims agreed and sent Ramon a series of progressively more explicit self-produced images. A relative of the two victims later discovered the communications and reported it to law enforcement.

Each count of production of child pornography carries a maximum sentence of 30 years in prison with a 15-year mandatory minimum, a $250,000 fine, a $5,000 special assessment and a life term of supervised release with a five-year mandatory minimum. Ramon will be sentenced on September 5, 2019 before U.S. District Court Judge Robert E. Jones.

As part of the plea agreement, Ramon has agreed to pay restitution to his victims identified by the government prior to sentencing and as ordered by the court.

This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) and is being prosecuted by Natalie Wight, Assistant U.S. Attorney for the District of Oregon.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

The FBI’s Child Exploitation Task Force (CETF) conducts sexual exploitation investigations – many of them undercover – in coordination with other federal, state, and local law enforcement agencies. The Portland FBI’s CETF consists of agents and task force officers from the Beaverton Police Department, Portland Police Bureau, Tigard Police Department, Hillsboro Police Department, and the Clackamas County Sheriff’s Office. The FBI’s CETF is committed to locating and arresting those who prey on children as well as recovering underage victims of sex trafficking and child exploitation.

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

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Attached Media Files: PDF Press Release
Former Burns Municipal Airport Manager Sentenced to Probation for Stealing Surplus Federal Property - 05/22/19

EUGENE, Ore.—Jeffrey Robert Cotton, 45, the former Manager of the Burns Municipal Airport in Burns, Oregon, was sentenced today to 4 years’ probation and 300 hours of community service for stealing thousands of dollars of equipment that rightfully belonged to the City of Burns, by converting to his personal use property acquired through the Federal Personal Property Utilization Program.

The Federal Personal Property Utilization Program is intended to benefit state and local governments and eligible organizations by giving them property the federal government no longer needs at no cost.

According to court documents, between 2014 and 2016, Cotton acquired, allegedly on behalf of the airport, numerous pieces of federal excess property including a heater/air conditioner, commercial lighting sets and various trucks and vans, tractors, and other heavy equipment.

Throughout the acquisition process, Cotton failed to fully inform or notify the City of Burns, its mayor, city manager or city council of the federal excess property obtained on its behalf. Instead, Cotton illegally converted much of the property to his personal use, either by titling property in his own name or transferring the property to Emergency Equipment Solutions, Inc. (EES), a nonprofit fully owned and operated by Cotton.

When confronted with the theft, Cotton lied and misrepresented information regarding how he had obtained the property. Additionally, Cotton signed phony bills of sale falsely representing that EES had purchased the property. Records show thousands of dollars were transferred from EES to Cotton personally.

On April 11, 2019, Cotton pleaded guilty to two counts of theft from a local government receiving federal funds.

This case was investigated by the General Services Administration Office of Inspector General and the FBI, and was prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.

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Attached Media Files: SENTENCING-Cotton-Final.pdf
Chinese National Pleads Guilty to Trafficking Counterfeit iPhones from Hong Kong - 05/22/19

PORTLAND, Ore.—Quan Jiang, 30, a Chinese national and former engineering student at Linn Benton Community College in Albany, Oregon, pleaded guilty today to one count of trafficking in counterfeit goods, specifically fake and altered Apple iPhones. Jiang would import the counterfeit devices from Hong Kong and submit them to Apple in exchange for genuine warranty replacement phones to be sold on the Chinese market.

“Counterfeiting undermines commerce and inevitably leads to increased prices for goods enjoyed by millions of consumers,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The investigators who worked this case and others like it provide an invaluable public service to American companies, entrepreneurs, and consumers alike in preserving a competitive market free of criminal interference.”

“Individuals who deal in counterfeit goods would have you believe that these are victimless crimes,” said Brad Bench, Special Agent in Charge of Homeland Security Investigations (HSI) Seattle. “Do not be fooled, they’re not. Not only do they hurt the economy and legitimate businesses, but they also impact consumers directly. HSI and our law enforcement partners will continue to fight counterfeiting across all industries.”

According to court documents, between January 1, 2016, and February 1, 2018, Jiang would regularly receive packages containing between 20 and 30 counterfeit iPhones from associates in Hong Kong. Using various assumed names, Jiang would submit each iPhone to Apple individually in person or online for a warranty replacement; he would then ship the genuine replacement devices he received back to China for resale. In exchange for his service, Jiang’s associate would pay Jiang’s mother, also residing in China, who would in turn deposit the money into Jiang’s bank account.

Jiang later admitted to investigators that he knew the devices were counterfeit and that it was illegal to submit them to Apple as genuine products still under warranty. In just over two years, Jiang imported more than 2,000 inoperable counterfeit iPhones. He ultimately obtained approximately 1,500 genuine replacement iPhones, each with an approximate resale value of $600.

Jiang faces a maximum sentence of ten years in prison, a $2,000,000 fine or twice his proceeds, whichever is greater, and three years of supervised release. He will be sentenced on August 28, 2019 before U.S. District Court Judge Anna J. Brown.

As part of the plea agreement, Jiang has agreed to pay $200,000 in restitution to Apple.

This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) and prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.

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Attached Media Files: PDF Press Release