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.
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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.
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