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About Portland observer. (Portland, Or.) 1970-current | View Entire Issue (May 1, 2002)
Pas e A2_____________________________________________ ( T l j e ^ I n r t l a n ù ( ß b s r r ü e r ________________________________________ May o i, 2002 Portland Investment Counselor Guilty Plea to assist prosecution in case that cost union pension funds millions (AP) - Former Portland invest ment manager Jeffrey Grayson pleaded guilty Tuesday to two felonies related to the Capital Consultants debacle. Grayson admitted committing mail fraud and helping a union pension fund trustee file a false income tax return. The plea deal means G rayson will probably spend about five years behind bars. It also m eans that his son, Barclay Grayson, will likely avoid prison. As part of the plea agreement, prosecutors will recommend that Barclay’s two-year prison sen tence, which was to begin next month, be reduced to probation or a year of home confinement. Jeffrey Grayson was originally indicted on 22 counts o f fraud, money laundering, conspiracy, witness-tampering and making payoffs to a pension fund trustee. Capital Consultants ran what the Securities and Exchange Com mission described as "a Ponzi-like scheme” to hide losses on failed loans. It allowed the company to continue gathering money from clients and amounted to the big gest fraud by a money manager in U.S. history, the agency said. The Grayson plea, and his offer to testify against those still under investigation, is the biggest de velopment in the Capital Consult ants case since federal regulators seized the Portland firm in Sep tember 2000. It gives prosecutors the key insider they’ve wanted to help them decipher the maze of deals that cost union pension funds and other investors an estimated $355 million. Lance Caldwell, the assistant U .S. a tto rn e y le a d in g the governm ent’s case, defended the deal he’d made for Grayson’s co operation. “It’s not the perfect outcome,” he said. “ But we wouldn’t have done it if we didn’ t think it was the right thing to do.” G rayson’s declining health from multiple sclerosis played a role in C a ld w e ll’s decision. Caldwell wants to move the Capi tal Consultants cases along while Grayson’s health still allows him to testify. Caldwell said Grayson is al ready proving to be a big help. “It is extremely valuable to have Mr. Grayson explaining the many complex loan transactions Capital Consultants was involved in,” Caldwell said. “We will follow the evidence where it takes us.” Domestic Violence Unit Seeks Suspect T h e P o r tla n d P o lic e B ureau ’ s D om estic V iolence R eduction U nit, in co o p era tion w ith C rim e S toppers, is asking for your help in locat ing and apprehending Lorell Laray Robinson. Police said R obinson, 28, has used m any aliases. He faces a felony w arrant for a Lorell Robinson Retirement’s Living 6404 SE 23rd Avenue * Portland 97209 5 0 3 .2 3 3 -5 6 7 1 Marshall Union Manor 2020 NW Northrup Street * Portland 97209 5 0 3 .2 2 5 .0 6 7 7 Kirkland Union Manors 3530 SE 84th Avenue * Portland 97266 5 0 3 .7 7 7 .8 1 0 1 Kirkland Union Plaza 1414 Kauffman Avenue * Vancouver 98660 3 6 0 .6 9 4 .4 3 1 4 □ Studio & One-Bedroom Apartments with Kitchens D Affordable Rents with no Buy-in or Application Fees □ Garden Areas & Planned Activities □ Easy Access to Bus Lines & Shopping □ Federal Rent Subsidies Available for those that qualify I and forearm. Crim e Stoppers is offering a cash rew ard o f up to $ 1,000 for inform ation, reported to C rim e Stoppers, which leads to an arrest in this case, or any felony crim e, and you need not give your name. Call Crime S to p p e rs a t ( 5 0 3 ) 8 2 3 - HELP. Ship Stowaway Found Dead; Two Hurt Westmoreland’s Union Manor www.theunionmanors.org probation violation stemming from an original charge o f first degree burglary. Robinson is approximately 5 foot 11 inches tall, w eighs 265 pounds, has black hair and brown eyes. He has G 187 tatto o ed on his left arm , B K 187 on his right wrist, and B 187 on both his left w rist t=J (AP) — Three stowaways, one dead and two badly dehydrated, were found Friday on a ship in the Columbia River, immigration officials said. Immigration and Naturalization Service agents found the trio in an area above the rudder on the Sammi Herald, agency spokesman Ed Sale said. The ship was headed from Colombia to Vancou ver, and the men were believed to be Colombian, Sale said. The ship was anchored in the Colum bia River, about two miles west of the Interstate 5 bridge. The two surviving stowaways were taken to Legacy Emanuel Hospital in Port land. The men appeared to suffer from hypothermia, malnourishment and dehy dration, a spokeswoman said. i Police Officers Charged in Nightclub Beating (AP) — A Portland police officer accused of beating a man outside a nightclub was indicted on felony assault charges Tues day and could become the state’s first officer to face a Measure 11 sentence if convicted, the Multnomah County District attorney’s office said. A second officer involved in the beating pleaded guilty to a lesser felony charge, which does not carry the stiffer Measure 11 penalty, and will serve 18 months in the state penitentiary. The two officers, Craig Hampton and Grant Bailey, were off duty the night of Jan. 24 when they allegedly assaulted a man up the street from the nightclub. A grand jury on Tuesday indicted Hampton on charges of third- degree assault, second-degree assault and criminal mischief, said Deputy District Attorney Jim McIntyre. Bailey pleaded guilty to the third-degree assault, a Class C felony, McIntyre said. Third-degree assault does not fall under Measure 11, the 1994 law that mandates prison time for certain violent crimes. A ccording to w itnesses, the officers left the nightclub, Stephano’s, after an argument with a third man. The fight occurred a few blocks away after the other man left. At least one of the officers reportedly yelled an anti-homosexual epithet during the assault, bringing concern from Mayor Vera Katz that a hate crime had occurred. But investigators apparently de cided that the incident was not motivated by any bias. Both officers have been on administrative leave since March 8. Bailey, who works in the police bureau’s Central Precinct, has been with the department for just over three years. Hampton, who’s based in North Precinct, was hired less than 18 months ago and is still classified as a probationary trainee. Young Girl Dies in Family Fight (AP) — An 8-year-old southeast Portland girl was stabbed to death while trying to stop a fight between her father and half brother. Vanessa Neubarth was stabbed multiple times last Wednesday night by 33-year-old Aaron Neubarth when she tried to intervene in a fight that might have been about car parts, police said. Aaron Neubarth was charged with aggra vated murder, attempted murder and first-de gree assault in the death of Vanessa Neubarth and the wounding o f his father, Van Neubarth, who suffered stab wounds to the neck and face. Van Neubarth, 54, who has been undergoing chemotherapy for colon cancer, told relatives by phone from his hospital bed Thursday morn ing that he had trouble fighting off his son because he was weak from those treatments. V anessa was a second-grader at Gilbert Park Elementary School, where her three brothers, ages 6, 11, and 12, also go to school. Jury Clears Police in Death of Burglary Suspect (AP, - A Multnomah County grandjury ruled last W ednesday that Portland police had reason to shoot a man who waved a realistic-looking air gun at them. Responding to a report of a southeast Portland robbery in progress, Officer Christopher Kenagy shot Anthony Utah Zona Beck, 29, three times when Beck came out the front door and refused commands to drop the air gun and a knife. An autopsy revealed that moments before he I was shot, Beck had apparently tried to commit suicide by stabbing himself multiple times in the hands and legs. It was the second fatal shooting by Portland police this year. Police wefe called to the home on April 14 after the homeowner returned from a walk with his two young daughters and saw blood smeared on the wall o f his garage and an interior garage door leading into the home. 4
