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Theft

$6.7 Million in Funds Seized in Financial Fraud Scheme

Strategic Insights

— 2 min read

The United States Attorney's Office has filed a civil forfeiture action to recover more than $6.7 million in funds alleged to be proceeds of a financial fraud scheme targeting the City of Portland. The scheme involved a business impersonation scam, where the perpetrator gained access to a payment system and diverted a payment intended for a contractor to an unauthorized bank account. The FBI swiftly seized the funds, still located in the unauthorized account, and the civil forfeiture action is being handled by Julia E. Jarrett and Katherine A. Rykken, Assistant U.S. Attorneys for the District of Oregon.

Key Takeaways:

  • The civil forfeiture action aims to recover $6,748,680 in funds alleged to be proceeds of the financial fraud scheme.
  • The scheme involved a business impersonation scam, where the perpetrator posed as an employee of a company contracted by the City of Portland.
  • The scammer gained access to a payment system and changed the contractor's bank account information to an account provided by the scammer.
  • The City of Portland notified law enforcement in March 2025 that a payment intended for the contractor had been diverted to an unauthorized bank account.
  • The FBI executed a federal seizure warrant on April 16, 2025, and seized the funds still located in the unauthorized account.
  • Federal law enforcement uses civil forfeiture to recover proceeds of a crime and attempt to return those proceeds to victims quickly.
  • This case highlights the importance of reporting financial crimes to law enforcement promptly, as emphasized by Katie de Villiers, Chief of the Asset Recovery and Money Laundering Division for the District of Oregon.
  • The case was investigated by the FBI and Portland Police Bureau, and the civil forfeiture action is being handled by Julia E. Jarrett and Katherine A. Rykken, Assistant U.S. Attorneys for the District of Oregon.

Statistics:

  • $6,748,680: The amount of funds alleged to be proceeds of the financial fraud scheme.
  • 2025: The year the financial fraud scheme was committed, with the scammer posing as an employee of a company contracted by the City of Portland in February.
  • $6.7 million: The exact amount of funds seized by the FBI through the civil forfeiture action.
  • April 16, 2025: The date the FBI executed the federal seizure warrant and seized the funds still located in the unauthorized account.

Sources:

  • PORTLAND, Ore.--The United States Attorney's Office (USAO) [1]
  • Katie de Villiers, Chief of the Asset Recovery and Money Laundering Division for the District of Oregon [1]
  • Julia E. Jarrett and Katherine A. Rykken, Assistant U.S. Attorneys for the District of Oregon [1]
  • FBI [1]
  • Portland Police Bureau [1]

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