City of Portland targeted in $6.7 million fraud scheme, investigation underway

The City of Portland identified an incident involving fraud that targeted City funds. The matter is under active investigation by local and federal law enforcement agencies.

Approximately $6.7 million in City funds, allocated to the Bull Run Filtration Project, was redirected as a result of this fraudulent activity.

The City is taking this matter seriously and is making every effort to ensure the return of public funds and that those responsible are held accountable.

Along with other efforts, a lawsuit was filed in court in New York to support recovery of the funds. The funds were initially deposited into the account of a New York law firm, and the law firm provided information supporting that they were also a victim. The law firm has cooperated with the City of Portland and others to facilitate securing the funds. Now that the funds have been secured, the City intends to discontinue the lawsuit in New York.

The funds are currently in the custody of the U.S. Marshals Service.

While we must limit what can be shared during the ongoing investigation, we are committed to transparency and will provide updates as appropriate.