Arizona Brothers Plead Guilty For Roles In Conspiracies To Fraudulently Obtain Nearly $109 Million In Covid-Relief Funds (Photo) -03/21/25

PORTLAND, Ore.—Two brothers from Sedona, Arizona, pleaded guilty for conspiring with one another and others to defraud the U.S. Small Business Administration (SBA) out of nearly $109 million in loans intended to help small businesses during the COVID-19 pandemic.

Eric Karnezis, 43, pleaded guilty Thursday to conspiring to commit wire fraud. Today, in a separate but related case, Anthony Karnezis, 43, also pleaded guilty to conspiring to commit wire fraud.

According to court documents, from January 2021 until at least March 2022, Eric Karnezis carried out a scheme whereby he conspired to gather false and fraudulent business information from customers and used the information to submit at least 350 fraudulent Paycheck Protection Program (PPP) loan applications through Blueacorn, a lender service provider, to Capital Plus Financial, a lender participating in the PPP. To facilitate the scheme, Eric Karnezis and his co-conspirators created fictious documents to support the fraudulent loan applications, including false payroll information and tax documents.

In total, Eric Karnezis submitted or caused to be submitted at least 1,300 PPP applications, which together attempted to obtain at least $178 million from Capital Plus Financial, of which approximately $105 million in loans were funded in response to the fraudulent applications. Additionally, Eric Karnezis required applicants to pay a fee for his role in the conspiracy and he received approximately $3 million for submitting the fraudulent applications.

Anthony Karnezis carried out a related scheme through at least March 2022, whereby he conspired with his brother, among others, to gather fraudulent business information from customers and used the information to submit at least 140 fraudulent PPP loan applications, through Blueacorn, to Capital Plus Financial. Based on the false and misrepresented information, more than $3.9 million in loans were funded in response to these fraudulent applications. Anthony Karnezis also required applicants to pay a fee for his role in the conspiracy and he received more than $957,000 for submitting the fraudulent applications.

On August 21, 2024, a federal grand jury in Portland returned a 23-count indictment charging Eric Karnezis and other defendants with conspiring to commit and committing wire fraud and conspiring to commit money laundering.

On February 19, 2025, Anthony Karnezis was charged by criminal information with conspiring to commit wire fraud.

Each faces a maximum sentence of 20 years in prison, a $250,000 fine and 3 years of supervised release and will both be sentenced on June 20, 2025, before U.S. District Court Judge Karin J. Immergut.

As part of their plea agreements, Eric Karnezis agreed to pay between $25 million and $65 million in restitution to their victims, and Anthony Karnezis agreed to pay between $3.5 million and $9.5 million in restitution to their victims. They have also agreed to forfeit any criminally-derived proceeds and property.

This case was investigated by the SBA Office of Inspector General (SBA-OIG), IRS Criminal Investigation (IRS:CI), the U.S. Treasury Inspector General for Tax Administration (TIGTA), and the Naval Criminal Investigative Service (NCIS). It is being prosecuted by Meredith Bateman and Robert Trisotto, Assistant U.S. Attorneys for the District of Oregon. Forfeiture proceedings are being handled by Assistant U.S. Attorney Julia Jarett, also of the District of Oregon.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

# # #

Oregon Man Indicted, Arrested For Transporting A Minor For Sexual Purposes. The FBI Is Seeking Additional Information. (Photo) -03/21/25

United States Attorney's Office

District of Alaska

ANCHORAGE, Alaska – An Oregon man was arrested by the FBI yesterday in Portland after a federal grand jury in Alaska returned an indictment this week charging him with transporting a minor with the intent to have the child engage in criminal sexual activity.

According to court documents, in 2019, Steven Fox, 59, moved from Pendleton, Oregon, to Anchorage, Alaska. At some point that year, Fox allegedly presented himself as a long-lost “uncle” to a family with two minor daughters and began caring for the minors.

Court documents further allege that in January 2020, Fox transported the minors from Alaska to Oregon. Fox started sexually abusing one of the minors, who was 9 years old, almost immediately after leaving Alaska.

Fox is charged with one count of transportation of minors. The defendant is scheduled to make his initial court appearance today at 1:30 p.m. PST before a U.S. Magistrate Judge of the U.S. District Court for the District of Oregon. If convicted, he faces between 10 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Michael J. Heyman of the District of Alaska and Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office made the announcement.

The FBI Anchorage Field Office and Anchorage Police Department investigated this case as part of the FBI’s Child Exploitation and Human Trafficking Task Force, with assistance from the Pendleton Police Department and FBI Portland Field Office. If anyone has information concerning Fox’s alleged actions, please contact the FBI Anchorage Field Office (907) 276-4441 or anonymously at tips.fbi.gov.

Assistant U.S. Attorney Jennifer Ivers and Trial Attorney Rachel L. Rothberg of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case, with assistance from the U.S. Attorney’s Office, District of Oregon.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

###

Zadeh Kicks Owner And Chief Financial Officer Plead Guilty In $80 Million Wire Fraud And Bank Fraud Conspiracy (Photo) -03/20/25

EUGENE, Ore.— The former owner and former chief financial officer of Zadeh Kicks LLC, a now-defunct Oregon corporation that sold limited edition and collectible sneakers online, pleaded guilty today for perpetrating a fraud scheme that cost customers more than $65 million in unfulfilled orders and defrauded financial institutions out of more than $15 million.

Michael Malekzadeh, 42, a Eugene resident, has pleaded guilty to wire fraud and conspiring to commit bank fraud. Bethany Mockerman, 42, also of Eugene, has pleaded guilty to conspiring to commit bank fraud.

According to court documents, Malekzadeh started his business in 2013 by purchasing limited edition and collectible sneakers to resell online. Beginning as early as January 2020, Zadeh Kicks began offering preorders of sneakers before their public release dates, allowing Malekzadeh to collect money upfront before fulfilling orders. Malekzadeh advertised, sold, and collected payments from customers for preorders knowing he could not satisfy all orders placed. By April 2022, Malekzadeh owed customers more than $65 million in undelivered sneakers.

In her role as chief financial officer at Zadeh Kicks, Mockerman conspired with Malekzadeh to provide false and altered financial information to numerous financial institutions—including providing altered bank statements—on more than 15 bank loan applications. Together, Mockerman and Malekzadeh received more than $15 million in loans from these applications.

During the investigation, agents seized millions of dollars in cash and luxury goods that Malekzadeh acquired with the proceeds of his fraud, including luxury watches, jewelry and hundreds of handbags. Additionally, almost $7.5 million was seized from the sale of Malekzadeh’s residence in Eugene, his watches, and luxury cars manufactured by Bentley, Ferrari, Lamborghini and Porsche.

On July 29, 2022, Malekzadeh was charged by criminal information with wire fraud, conspiracy to commit bank fraud, and money laundering, and Mockerman was charged with conspiracy to commit bank fraud.

Malekzadeh faces a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release for wire fraud, and a maximum sentence of 30 years in prison, a $1,000,000 fine and five years of supervised release for conspiracy to commit bank fraud. Mockerman faces a maximum sentence of 30 years in prison, a $1,000,000 fine and five years of supervised release. Malekzadeh will be sentenced on August 12, 2025, and Mockerman will be sentenced on August 26, 2025, before a U.S. District Judge.

As part of their plea agreements, Malekzadeh and Mockerman have agreed to pay restitution in full to their victims and if needed forfeit any criminally-derived proceeds and property used to facilitate their crimes identified by the government prior to sentencing.

This case was investigated by the FBI, IRS Criminal Investigation, and Homeland Security Investigations with assistance from the Oregon Intellectual Property Task Force. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon. Forfeiture proceedings are being handled by Assistant U.S. Attorney Katie C. de Villiers, also of the District of Oregon.

# # #

Coos Bay Man Faces Federal Charges For Producing And Distributing Child Pornography (Photo) -03/19/25

EUGENE, Ore.—A Coos Bay, Oregon man was arraigned in federal court today for possessing, distributing, attempting to produce, and producing child pornography.

Thomas Owen Barnett, 39, has been charged with attempting to use and using a minor to produce a visual depiction of sexually explicit conduct and possessing and distributing child pornography.

According to court documents, between September and December 2023, Barnett is alleged to have knowingly and intentionally used a minor to engage in and record sexually explicit conduct. In September 2024, Barnett is further alleged to have used Kik and Instagram, online social media platforms, to engage in chats involving child sex abuse, seek opportunities to engage in child sexual abuse, and advertise the sale of child pornography. At times, Barnett posed as a young man or a minor female to persuade his victims to produce and exchange child pornography, including requests for sexually explicit materials depicting an infant.

Barnett made his initial appearance in federal court today before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and ordered detained pending a jury trial scheduled to begin on May 27, 2025.

Attempting to use a minor and using a minor to produce a visual depiction of sexually explicit conduct are each punishable by up to 30 years in federal prison with a 15-year mandatory minimum sentence, distribution of child pornography is punishable by up to 20 years in prison with a 5-year mandatory minimum sentence, and possession of child pornography is punishable by up to 10 years in federal prison. If convicted, Barnett also faces up to a lifetime term of supervised release and a fine of $250,000 for each count.

This case was investigated by the FBI and is being prosecuted by William M. McLaren, Assistant U.S. Attorney 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.

Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.

Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.

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

# # #

Ontario Man Sentenced To 15 Years In Federal Prison For Carjacking Victims At Gunpoint (Photo) -03/19/25

MEDFORD, Ore.—An Ontario, Oregon man was sentenced to federal prison Friday for carjacking three victims at gunpoint.

Gregory Escobedo, Jr., 31, was sentenced to 180 months in federal prison and three years’ supervised release.

The first 100 months of Escobedo’s federal sentence will run concurrent to a 180-to-360-month state prison sentence previously imposed in Canyon County, Idaho, and will be served in Idaho state prison. Escobedo will serve the remaining 80 months of his federal sentence in federal prison following the completion of his state prison sentence. Following his release from federal prison, Escobedo must also complete a three-year term of federal supervised release.

According to court documents, on March 3, 2021, at an apartment complex in Ontario, Escobedo ordered a victim to exit their vehicle at gunpoint and drove away in the stolen vehicle. The following day, Escobedo approached a vehicle parked on the side of the road and carjacked another victim while brandishing a firearm. The stolen vehicle was out of gas which caused Escobedo to quickly return to the vehicle he arrived in and flee the area.

Later the same day, on March 4, 2021, in Caldwell, Idaho, Escobedo stole an unattended truck at a gas station. The owner pursued Escobedo, who eventually stopped the truck, and was confronted by the victim. Escobedo shot the unarmed victim in the chest and fled. The victim was taken to a hospital and survived. Shortly after the shooting, Escobedo was stopped by law enforcement and arrested.

On May 20, 2021, a federal grand jury in Medford returned a five-count indictment charging Escobedo with carjacking, possessing a firearm during a crime of violence, and possessing a firearm as a convicted felon.

On July 7, 2024, Escobedo pleaded guilty to two counts of carjacking.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Judith Harper, Assistant U.S. Attorney for the District of Oregon.

# # #

Active-Duty And Former U.S. Army Soldiers Arrested For Theft Of Government Property And Bribery Scheme (Photo) -03/06/25

PORTLAND, Ore.— Jian Zhao and Li Tian, active-duty U.S. Army soldiers stationed at Joint Base Lewis-McChord, along with Ruoyu Duan, a former U.S. Army soldier, were arrested today following indictments by federal grand juries in the District of Oregon and the Western District of Washington. Tian and Duan were charged in the District of Oregon for conspiring to commit bribery and theft of government property. Zhao was charged in the Western District of Washington for conspiring to obtain and transmit national defense information to an individual not authorized to receive it, and also for bribery and theft of government property.

“The defendants arrested today are accused of betraying our country, actively working to weaken America’s defense capabilities and empowering our adversaries in China,” said Attorney General Pamela J. Bondi. “They will face swift, severe, and comprehensive justice.”

“While bribery and corruption have thrived under China’s Communist Party, this behavior cannot be tolerated with our service members who are entrusted with sensitive military information, including national defense information,” said FBI Director Kash Patel. “The FBI and our partners will continue to work to uncover attempts by those in China to steal sensitive U.S. military information and hold all accountable who play a role in betraying our national defense. The FBI would like to thank U.S. Army Counterintelligence for their close partnership during this investigation.”

“These arrests underscore the persistent and increasing foreign intelligence threat facing our Army and nation,” said Brig. Gen. Rhett R. Cox, Commanding General, Army Counterintelligence Command. “Along with the Department of Justice and FBI, Army Counterintelligence Command will continue to work tirelessly to hold those accountable who irresponsibly and selfishly abandon the Army values and choose personal gain over duty to our nation. We remind all members of the Army team to increase their vigilance and protect our Army by reporting suspicious activity.”

The indictment in the District of Oregon alleges that beginning on or about Nov. 28, 2021, and continuing to at least on or about Dec. 19, 2024, Duan and Tian along with others, known and unknown to the grand jury conspired with each other to surreptitiously gather sensitive military information related to the United States Army’s operational capabilities, including technical manuals and other sensitive information, and that Tian transmitted this information to Duan in return for money, in violation of his official duties as an active-duty U.S. Army officer. Specifically, Tian was tasked with gathering information related U.S. military weapon systems, including information related to the Bradley and Stryker U.S. Army fighting vehicles, and transmitting them to Duan.

The indictment in the Western District of Washington alleges that beginning in or about July 2024, and continuing to the date of the arrest, Jian Zhao, an active-duty U.S. Army Supply Sergeant, conspired with others known and unknown to the grand jury to obtain and transmit national defense information to individuals based in China. Zhao is further alleged to have committed bribery and theft of government property.

Specifically, Zhao was charged for his conspiracy to collect and transmit several classified hard drives, including hard drives marked “SECRET” and “TOP SECRET”, negotiating with individuals based in China for their sale, and agreeing to send the classified hard drives to the individuals in China. In exchange for the sale of the classified hard drives, Zhao received at least $10,000. Zhao is further alleged to have conspired to sell an encryption capable computer that was stolen from the U.S. Government, and sensitive U.S. military documents and information, including information related to the High Mobility Artillery Rocket System (HIMARS), and information related to U.S. military readiness in the event of a conflict with the People’s Republic of China. Zhao is alleged to have violated his duties as a U.S. Army Soldier and public official to protect sensitive military information in exchange for money. In total, Zhao is alleged to have corruptly received and accepted payments totaling at least $15,000.

"The U.S. Attorney's Office thanks the FBI and the U.S. Army Counterintelligence Command for their hard work on this investigation and commitment to protecting our national security,” said Acting U.S. Attorney William M. Narus for the District of Oregon. 

"As former and current members of the U.S. Army, Ruoyu Duan and Li Tian betrayed the oath of military service they had taken,” said Douglas A. Olson, Special Agent in Charge  of the FBI’s Portland Field Office. “Their actions caused significant risk and damage to U.S. National Security and violated the oath they took as military members to protect the American people."

“It is unconscionable that a person who wears the uniform of a U.S. Army soldier would betray our country and the trust of his fellow soldiers,” said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle Field Office. “These arrests should send a message to would-be spies that we and our partners have the will and the ability to find you, track you down, and hold you to account. Protecting the nation’s secrets, especially those necessary to preserve our military advantage and protect our troops, is one of the FBI’s top priorities.”

The cases were investigated by the FBI Portland and Seattle Field Offices and U.S. Army Counterintelligence Command, with assistance from the Customs and Border Protection (CBP) Seattle Field Office, CBP Office of Professional Responsibility, United States Postal Inspection Service, U.S. Army Criminal Investigation Division, and Naval Criminal Investigative Service. They are being prosecuted by Geoffrey A. Barrow and Katherine A. Rykken, Assistant U.S. Attorneys for the District of Oregon, and Christopher Cook and Yifei Zheng, Trial Attorneys for the National Security Division’s Counterintelligence and Export Control Section.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

# # #

Portland Couple Sentenced To Federal Prison For Stealing $34 Million From Former Client (Photo) -03/06/25

PORTLAND, Ore.—A husband and wife from Portland, who together owned and operated a local chauffeur and limousine business, were sentenced to federal prison Wednesday for stealing $34 million dollars from two former clients.

Sergey Lebedenko, 54, and Galina Lebedenko, 49, were both sentenced to 57 months in federal prison and three years’ supervised release. The sum of restitution they must pay to the victim will be determined at a later date.

According to court documents, the Lebedenkos owned and operated a Portland area chauffeur and limousine businesses that eventually became Astra Car Service, LLC. Sergey did the driving, and Galina handled the company’s books and finances.

The Lebedenkos met their victim in 2007 when Sergey was hired to drive the individual to the airport. The individual soon became a regular customer of the Lebedenkos. By 2018, Sergey was driving the individual almost daily in and around Portland, and Galina was performing other personal tasks for the victim and the victim’s partner including paying their bills, sorting their mail, and providing pet care. This expansive personal services arrangement between the Lebedenkos and their victim continued from approximately 2018 until 2023.

Despite the volume and frequency of paid services the Lebedenkos provided, they never had a written business agreement or contract. In 2013, Galina produced an invoice showing hourly rates of $90 for driving and $60 for other services. In about 2016, after nearly a decade of working together, the victim gave the Lebedenkos his American Express credit card information so they could directly charge the card for their services.

Other than the single invoice issued in 2013, the Lebedenkos never provided their victim with logs of their hours or information about how much they were charging for their services. For much of their work, only the Lebedenkos knew the amount of time they spent providing services. On rare occasions, Sergey was questioned by the victim about certain minimal charges and Sergey would repeatedly play up their longstanding, trusting relationship.

The Lebedenkos stole approximately $34 million over seven years. On a single day in 2023, the Lebedenkos charged their victim’s credit card 17 times for a total of $17,900 for picking up and delivering a prescription and meals.

The Lebedenkos used their ill-gotten gains to fund an extraordinarily extravagant lifestyle for themselves and others, purchasing 14 homes and properties, 7 vehicles, an ownership interest in a private jet, and countless luxury items including shoes, watches, wallets, jewelry, and gold bars. As part of their sentences, the court entered a Final Order of Forfeiture against assets the Lebedenkos purchased with proceeds of their fraud, including 14 real properties and 19 financial accounts, which are pending forfeiture and sale. The government intends to seek remission of forfeited assets to the victim.

On January 22, 2024, the Lebedenkos were together charged by federal criminal complaint with committing wire fraud and money laundering. Later, on February 21, 2024, a federal grand jury in Portland returned an indictment charging the couple with conspiracy to commit wire fraud and money laundering, and 34 individual counts of wire fraud.

On October 25, 2024, the Lebedenkos both pleaded guilty to one count of conspiracy to commit wire fraud, conspiracy to commit money laundering, and wire fraud.

This case was investigated by the FBI and IRS Criminal Investigation. It was prosecuted by Meredith D.M. Bateman and Andrew T. Ho, Assistant U.S. Attorneys for the District of Oregon. Forfeiture proceedings are being handled by Assistant U.S. Attorney Katie C. de Villiers, also of the District of Oregon.

# # #

Salem Man Faces Federal Charge For Illegally Possessing Molotov Cocktails (Photo) -03/05/25

PORTLAND, Ore.—A Salem, Oregon man was arraigned in federal court today for possessing Molotov cocktails while attempting to destroy property at a Salem car dealership.

Adam Matthew Lansky, 41, has been charged by criminal complaint with illegally possessing an unregistered destructive device.

According to court documents, on January 20, 2025, officers from the Salem Police Department responded to a report of an individual throwing Molotov cocktails at a local car dealership. Later, on February 19, 2025, officers returned to the same dealership after a report of damage from what appeared to be bullets fired into a building and vehicle.

Investigators soon linked Lansky to both incidents. Surveillance footage obtained from the car dealership appeared to show Lansky throwing Molotov cocktails that struck a dealership building and several vehicles, causing fires. Surveillance video from a patrol car captured a vehicle parked near the dealership while Lansky is alleged to have discharged multiple firearm rounds into a building and at least one vehicle. Investigators learned the vehicle was registered to Lansky and observed it at his residence.

Lansky was arrested Tuesday without incident in Salem and made his first appearance in federal court today before a U.S. Magistrate Judge. He was ordered detained pending further court proceedings.

The case is being investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Salem Police Department. It is being prosecuted by Parakram Singh, Assistant U.S. Attorney for the District of Oregon.

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

# # #

Salem Man Sentenced To Federal Prison For Trafficking Fentanyl (Photo) -03/04/25

PORTLAND, Ore.—A Mexican national residing in Salem, Oregon, was sentenced to federal prison Monday for his role in trafficking fentanyl and other narcotics in Oregon.

Leonel Covarrubias Hernandez, 48, was sentenced to 144 months in federal prison and five years’ supervised release.

According to court documents, as part of a drug trafficking investigation, investigators identified Covarrubias as a narcotics distributer operating in Oregon. Between August and December 2022, investigators conducted several controlled buys in which Covarrubias sold counterfeit oxycodone pills containing fentanyl. 

On December 27, 2022, investigators conducted a traffic stop on Covarrubias and his co-conspirator near their residence. Investigators searched the vehicle and seized counterfeit pills containing fentanyl, more than $11,000 in cash, and a firearm. On the same day, investigators located and seized more than 29 pounds of methamphetamine, 11 pounds of fentanyl, 12 pounds of cocaine and two pounds of heroin, 24 firearms, a 3D printer, and more than $43,000 in cash from the residence.

On November 18, 2024, Covarrubias pleaded guilty to possessing fentanyl with the intent to distribute.

This case was investigated by the FBI and Salem Police Department. It was prosecuted by Bryan Chinwuba, Assistant U.S. Attorney for the District of Oregon.

# # #

Portland Man Sentenced To Federal Prison For Bank Fraud And Identity Theft (Photo) -02/27/25

PORTLAND, Ore.--A Portland man was sentenced to federal prison today for using a stolen identity and financial information to steal more than $426,000 from a victim with an intellectual disability.

Clinton Wells, 36, was sentenced to 36 months in federal prison and three years' supervised release. He was also ordered to pay $426,481.14 in restitution to his victim.

According to court documents, between March 2019 and April 2022, Wells knowingly and intentionally used personal identification and bank account information to steal the victim's life savings. On March 13, 2019, while working for a national tax preparation company, Wells met the victim and gained access to their personal and financial information. The following day, Wells began transferring money from the victim's bank account into his own.

In April 2019, Wells created a user profile through the victim's online banking system. With this access, Wells completed more than 1,100 transactions including electronic money transfers and online purchases. Wells used the money to fund extravagant trips, personal expenses and online purchases. Wells' theft went undetected until the victim passed away and family found unopened bank statements showing the unauthorized transactions.  

On February 13, 2024, a federal grand jury in Portland returned a six-count indictment charging Wells with bank fraud and aggravated identity theft.

On October 30, 2024, Wells pleaded guilty to one count of bank fraud and one count of aggravated identity theft.

This case was investigated by the U.S. Treasury Inspector General for Tax Administration, IRS Criminal Investigation, and Multnomah County Sheriff's Office. It was prosecuted by Meredith D.M. Bateman, Assistant U.S. Attorney for the District of Oregon.

# # #

Washington State Man Sentenced To Federal Prison For Coercing And Sexually Exploiting A Minor Online (Photo) -02/26/25

EUGENE, Ore.--A Tacoma, Washington man was sentenced to federal prison Tuesday for using social media to coerce a minor into sending him sexually explicit materials and engage in self-harm.

Brandon Kuper, 22, was sentenced to 165 months in federal prison and ten years' supervised release.

According to court documents, in November 2022, Kuper messaged a minor through Discord and Snapchat, two social media messaging applications, in attempts to develop a relationship. Kuper coerced the victim into producing and sending him sexually explicit photos and videos, including sadistic and masochistic conduct. When the victim denied some of Kuper's requests, he threatened to harm the victim and victim's family if his demands were not met. Kuper continued to make threats and demands until the victim bravely reported Kuper to their parents and then law enforcement. 

Investigators learned that Kuper used Discord and Snapchat to find and convince minors to produce and send him sexually explicit material. In several instances, Kuper asked his victims to cut his social media username "Merqzs" into their skin, photograph it, and send him the photos. Investigators also found revenge pornography that Kuper created and posted of at least one other victim that did not comply with his demands. On November 10, 2022, Kuper was arrested in Tacoma and remains in custody.

On November 17, 2022, a federal grand jury in Eugene returned a two-count indictment charging Kuper with production of child pornography and enticing a minor.

On November 20, 2024, Kuper pleaded guilty to coercion and enticement of a minor.

This case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) with assistance from the Bend Police Department and Deschutes County Sheriff's Office Digital Forensics Laboratory. It was prosecuted by William M. McLaren, Assistant U.S. Attorney for the District of Oregon.

Anyone who has information about the physical or online exploitation of children are encouraged to contact ICE HSI at (866) 347-2423 or submit a tip online at report.cybertip.org.

Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims' exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.

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.

# # #