Farhad “Fred” Monem: Bribes, Rotten Food & the Fugitive Shepherd

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Okay, let's impact this. Imagine a figure once lauded for
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well for saving the state millions, a man responsible for
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feeding thousands of inmates every single day, and now he's
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believed to be living as a fugitive. Possibly get this
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tending sheep in a country with no extradition treaty with
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the United States.
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Wow, tending sheep.
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Yeah, and this same person is wanted by the FBI
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for what prosecutors have actually labeled the single worst corruption
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case in Oregon's history.
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It's a really stark, almost unbelievable contrast, isn't it. Someone
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right at the heart of a public system praised for efficiency, now,
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like you said, potentially living off the grid on the
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run from federal charges.
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Absolutely, and that dramatic arc. That's precisely what we're diving
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into today. This is our deep dive into the Oregon
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in food bribery scandal. We've pulled together quite a stack
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of sources that really let us get under the hood
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of this complex story. We've got reporting from prison legal
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news and the associated presby at the Bulletin Those detail
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the legal outcomes for some players, and you know, the
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fugitive status of the main one. Then there's the official
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FBI wanted poster itself that gives us crucial personal details
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and the long list of charges.
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And maybe the most illuminating source, we have excerpts from
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the actual civil complaint found by the State of Oregon
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that really lays out the state's legal case and how
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they viewed this whole enterprise behind the corruption.
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Yeah, these different documents give us like multiple angles on
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the same event. You've got the criminal perspective, the state's
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civil claims, and then the sort of raw facts from
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law enforcement.
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So our mission in this deep dive is really to
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synthesize these diverse sources. We want to pull out the
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most important nuggets, you know, build a clearer picture, understand
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the timeline, identify the key players involved.
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Out the mechanics how this whole bribery and kickback scheme
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actually worked.
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Exactly, and assess its real world impact on the prison system,
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on tax payers, and finally examined the legal consequences both
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for those who got caught and for the main guy,
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the central figure who's still out there.
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So we're asking, how did this happen, what did it
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really cost, and maybe what does it tell us about
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public trust? And well, accountability.
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Yeah, that's the core of it all.
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Right, let's start by setting the scene, the focal point
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of this entire scandal. The man at the center is
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named far Had Moonem, better known as Fred Modem, fred Bonum.
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He held a really critical position within the Oregon Department
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of Corrections or odio C as we'll probably call it.
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He was the Food services Administrator, food.
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Services administrator, So think about that role. This is the
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person responsible for procuring all the food to feed thousands
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of individuals incarcerated in Oregon's prisons. It's a massive logistical job,
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huge financial responsibility, right.
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And what's particularly striking when you look at the sources
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is that initially Fredmonem was viewed quite positively, like almost
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the success story within ODEOC.
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Yeah. The Associated Press report via the bullet And notes
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that he was reportedly praised, genuinely praised for saving the
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state prison system a considerable amount of money.
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How did he do that or how did it look
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like he was doing that?
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Well? Seemingly by being pretty shrewd in his purchasing. He
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bought what the sources described as distressed in bulk foods
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on what's called the spot market.
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Okay, spot market what exactly does that mean In this
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context buying food for prisons.
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It's basically buying inventory that's immediately available, often opportunistically, rather
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than through long term contracts or scheduled deliveries.
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Like surplus stuff.
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Exactly. Think of it like buying surplus stock, maybe food
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that's getting close to its best buy date but is
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still technically safe, or just huge quantities available at a
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steep discount. ODOC had this specific spot buy program for
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acquiring food for prisoners, and Monam was apparently very effective
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at using it to drive those costs down. This approach
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it reportedly contributed to Oregon having some of the lowest
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per inmate food costs in the whole nation.
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So on the surface, it looked like really smart, cost
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effective management.
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That's how it looked. You've got state officials, maybe the
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public seeing Monam as this efficient administrator, kind of a
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budget hero, keeping costs incredibly low.
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That was his public image, his reputation inside the system,
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according to these early accounts, decisely. But there's a really
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critical piece of information in the sources that creates a
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stark contrast to that image. Isn't there Something wasn't quite right?
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There? Absolutely is the prison Legal News article especially highlights
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this paradox. While Monam was being praised for saving money
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achieving these low per inmate costs, yeah, simultaneously, the quality
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of the prison food became the single top complaint within
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the entire Oregon Department of Correction.
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System, the top complaint. Seriously, out of everything inmates could
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potential we complain about, conditions, programs, whatever, food was number one.
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Yes, the number one complaint. And the nature of these
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complaints as described in the sources. It wasn't just oh,
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this food is bland. No, inmates were reporting serious issues,
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things like green bologna, moldy hamburger, other significant problems that
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really point to potentially spoiled or just completely substandard ingredients.
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Okay, wow, that is a massive red flag that looks
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glaring in hindsight, doesn't it. The official in charge is
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being lauded for low costs achieved by buying distressed food
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on the spot market, while the very people eating that
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food are saying it's literally rotten.
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It really paints a picture of an environment where hitting
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the lowest possible cost seems to have completely overwritten concerns
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about basic quality, maybe even safety. Yeah, this disconnect between
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Monum's celebrated efficiency on paper and the actual lived experience
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of those eating the food. It's crucial context. It suggests
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the cism maybe focused too narrowly on that bottom line
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was vulnerable, and this is the environment where the corruption
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seems to have taken root and just flourished.
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That makes a lot of sense. The apparent success the
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cost savings might have actually diverted attention from what was
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really happening on the ground. Okay, so let's shift now
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to the core of the scandal, the bribery itself. How
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did the system of corruption actually function? The civil complaint
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filed by the State of Oregon is well incredibly detailed
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on this.
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It really is.
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It alleges that the unlawful agreement, the thing underpinning the
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whole scheme, began as early as two thousand or definitely
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by late two thousand and three at the very latest.
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Yes, the state's civil case really lays out the framework
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of the conspiracy. It describes an agreement between Fredmonham and
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a specific group of food brokers and distributors. These weren't
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just random suppliers. The state alleges they were key co conspirators.
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And who were these individuals, according to the sources, who
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was paying him.
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The main figures identified are Michael Levin, William Lawrence, and
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Howard Roth. They were all associated with a company called
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ellenl Inc. Which was a California based.
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Food distributor Okay, ellen l Inc.
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Howard Roth is specifically noted as an account manager for lenl.
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Then the fourth key individual was a guy named Douglas Levine.
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He was a salesperson, but he worked for a different
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company twenty first Century.
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Supplyingc So these four main brokers, right.
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These four individuals are the ones allegedly paying the bribes
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directly to Monam.
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So it wasn't just one company or one person feeding
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him money. It was this kind of network of brokers
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from different entities, all trying to get a piece of
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the odeoc pie.
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That's what the state alleged.
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And what was the specific goal of these bribes, I mean,
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what were they trying to achieve by paying Monam all
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this money.
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Well, the sources are very explicit about the purpose. The
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bribes were paid with clear intentions. First, simply to obtain
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state contracts for these food brokers and their companies, so
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they're foot in the door exactly. Second to ensure that
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future sales to ODEOC would continue to be directed their way,
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keep the businessiness flowing buck it in. Third, to influence
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Monem's official actions and decisions about food purchases, basically making
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sure he used his authority to buy from them, not
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their competitors. And fourth, kind of looking backward to reward
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him for past purchases he had already steered towards them.
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So it's a whole cycle of corruption pretty much.
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He was a scheme where the brokers paid Monem, and
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Monem in turn unlawfully used his position his authority to
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direct odioc's massive food purchasing budget towards these specific co conspirators,
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totally subverting any kind of fair competitive bidding process.
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Yeah, that sounds like a direct attack on the integrity
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of public procurement. How are these payments actually made? Was
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it always like cash and envelopes or.
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It wasn't always the same method? No, According to the sources,
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including that detailed civil complaint, payments were made in both
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cash and by check. Early on, it seems it was
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primarily cash payments, and this method continued at least until
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August two thousand and four. After that point, checks became
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more involved, often routed through these corporate entities the monums
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set up later to try and hide it.
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Ah, the lundering aspect, we'll get to that, But there's
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also that detail about where some of these meetings happen.
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Not exactly in a standard ODEOC conference room, right, No.
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Not at all. The Prison Legal News article highlights one
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particularly let's say questionable detail, Fred Moonam and Douglas Levine.
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He's one of the co conspirators, the salesperson from twenty
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first century. Supply, they would sometimes meet up in Las Vegas,
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Thegas Vegas, and they weren't just having coffee. Apparently they
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go gambling together, and Levine would pay Monem cash bribes
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right there in Vegas during these gambling trips.
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Wow, in Las Vegas while gambling. That sounds incredibly brazen
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for a state official.
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It really does. And what's maybe even more revealing about
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the potential breakdown and oversight is that ODOC officials were
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apparently aware of Monim's trips to Vegas.
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They knew he was going the.
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Source of state, they knew, but they apparently accepted his
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explanation that these trips were for consulting work.
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Consulting work in Vegas with a food broker he did
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business with.
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Exactly this acceptance of such a frankly flimsy explanation for
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trips involving known business contacts, especially for a public official
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in his position, it just points to a significant failure,
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or at least a major blind spot and the oversight
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system it allowed these illicit meetings and these cash handoffs
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to occur seemingly unchecked for years.
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So the very system designed to be transparent and public
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purchasing was being fundamentally undermined by these clandestine meetings cash
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handoffs in Vegas, all accepted under this weak consulting pretense.
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How much money are we actually talking about here? What
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was the total value of these bribes and kickbacks?
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The numbers are substantial. They really give you a sense
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of the scale of this corruption. The sources provide several
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figures and they're all large. Cumulatively, the four food brokers Levin, Lawrence, Roth,
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and Levine are alleged to a paid a total of
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one point two million dollars in bribes.
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One point two million dollars just in bribes. Yes, the
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overall amount involved in kickbacks is cited elsewhere as one
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point three million dollars, which might be slightly different accounting,
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but in the same ballpark. Looking at just Douglas Lavine's payments,
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the Vegas.
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Guy, he alone paid Monem over six hundred thousand dollars
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between the year two thousand and two thousand and six.
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Wow, over half a million from.
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Just one broker, and we can even trace some of it.
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More specifically, approximately five hundred and thirty two thousand dollars
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came through jam Inc. That's one of the corporations the
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Monum set up just from ellen a link between August
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two thousand and four and January two thousand and seven.
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So whichever way you slice it, we're consistently seeing figures
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well over a million dollars flowing illicitly to.
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Monim, over a million dollars in bribes paid to one
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public official responsible for buying prison food. That's just an
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incredible amount. And with that kind of money coming in,
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especially the early cash, simply depositing it all into a
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regular bank account would raise huge red flags. So they
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must have worked pretty hard to conceal this scheme, right,
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What methods do they use to hide where this money
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was coming from and where it was going? Oh?
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Absolutely they definitely went to lengths to create a facade
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of legitimacy to launder the money. One key method, and
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this was reportedly suggested by two of the brokers themselves,
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Levin and Lawrence. They suggested it apparently they suggested that
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Monum form a corporation. The idea was that future payments
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could then be made to this company, making it look
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like legitimate business transactions rather than personal cash bribes.
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Oh, the classic fake consulting angle, pay the company for
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services Exactly.
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That payments from LNL Inc to the corporation they form,
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which is called jam Inc, were disguised as being for
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legitimate consulting services. They even went so far as to
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use fake invoices to back up this deception. Wow, it's
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classic money laundering one oh one. Trying to make illicit
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funds appear to come from a legitimate source.
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And the creation of these corporations, jam Inc and others
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that directly involved Fred's wife Karen Monam. Correct. She wasn't
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just on the sidelines, No, not at all.
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She was directly involved in setting up these entities. Fred
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and Karenonam formed jam Inc. It was an Oregon corporation
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set up in September two thousand and four, and Karen
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was listed as the president and secretary of the company.
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President and Secretary Okay.
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They also formed another entity, Larimo LLC, which was an
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Oregon limited liability company, in August two thousand and five.
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The sources, particularly the civil complaint, indicate that funds from
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00:13:30.200 --> 00:13:34.320
the bribery scheme were explicitly routed through these corporations as
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part of the concealment efforts.
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00:13:35.840 --> 00:13:38.960
So Karen Monam wasn't just passively associated because she was
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married to him. She was actively involved in the financial
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architecture of the scheme setting up these shell entities.
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Her involvement, as detailed in the civil complaint, seems quite
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direct and went beyond just forming corporations. The complaint alleges
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00:13:51.639 --> 00:13:55.799
she received cash payments from Douglas Levine, herself contributing to
269
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that over six hundred thousand dollars total paid by Levine
270
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to both Fred and kars parent between two thousand and
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two thousand and six.
272
00:14:02.360 --> 00:14:03.480
So she took cash too.
273
00:14:03.639 --> 00:14:06.440
Allegedly yes, and she used credit cards that Levin provided
274
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specifically for personal expenses. She also received payments made by check,
275
00:14:10.519 --> 00:14:13.080
sometimes made out directly to her personally or to jam
276
00:14:13.120 --> 00:14:17.320
Inc Okay, The civil complaint is really unambiguous on this point.
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00:14:17.519 --> 00:14:19.919
It states that neither she nor Fred provided any lawful
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00:14:19.960 --> 00:14:21.960
services for these funds. They were simply tenance for the
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illicit bribery scheme full stop.
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And she took other steps too, right to hide the cash.
281
00:14:26.960 --> 00:14:29.679
Yes, she also took steps to further conceal the money,
282
00:14:29.799 --> 00:14:33.759
especially the cash. The complaint details how she deposited one
283
00:14:33.840 --> 00:14:37.879
hundred and sixty thousand dollars in cash cash derived from
284
00:14:37.919 --> 00:14:41.559
the bribery schemes into bank accounts she had established under
285
00:14:41.559 --> 00:14:42.399
her mother's name.
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00:14:42.519 --> 00:14:45.399
Using her mother's accounts. Wow, that shows a pretty clear
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00:14:45.440 --> 00:14:48.759
intent to distance the money from herself and Fred to
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make it harder to trace.
289
00:14:50.240 --> 00:14:52.360
Absolutely, it's another layer of obfuscation.
290
00:14:52.480 --> 00:14:54.000
So what did they do with all this money? This
291
00:14:54.200 --> 00:14:57.159
million plus dollars they got through bribes and kickbacks? What
292
00:14:57.279 --> 00:15:00.919
kind of assets did they actually acquire using the illicit funds?
293
00:15:00.960 --> 00:15:03.799
Well, the money was used to purchase significant assets, particularly
294
00:15:03.840 --> 00:15:08.000
real estate. The civil complaint specifically lists several properties that
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00:15:08.000 --> 00:15:10.840
were acquired with funds tied directly to the scheme, like
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00:15:10.879 --> 00:15:13.320
what where. One property is listed at five four to
297
00:15:13.360 --> 00:15:17.039
sixty one Moderay Drive in Salem, Oregon. Another is a
298
00:15:17.039 --> 00:15:20.480
property located at the Lincoln Shore Star Resort, identified as
299
00:15:20.519 --> 00:15:24.639
Lot twenty one. The complaint also refers to other properties
300
00:15:24.639 --> 00:15:28.559
identified in its exhibits Exhibits D through G. Although the
301
00:15:28.600 --> 00:15:31.440
specific addresses aren't provided in the text we have access to,
302
00:15:31.840 --> 00:15:32.720
it shows there were.
303
00:15:32.600 --> 00:15:34.519
More so multiple properties.
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00:15:34.639 --> 00:15:38.559
What else, beyond real estate, Karen Moham also acquired three
305
00:15:38.679 --> 00:15:42.879
expensive vehicles, including at two thousand and six BMW. These assets,
306
00:15:42.919 --> 00:15:45.440
both the properties and the cars, were later targeted for
307
00:15:45.440 --> 00:15:46.600
forfeiture by the government.
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00:15:46.720 --> 00:15:49.960
It really paints this picture of public funds money that
309
00:15:50.000 --> 00:15:52.960
should have been going to you know, feed prisoners adequately
310
00:15:53.440 --> 00:15:56.679
essentially being diverted to buy real estate and luxury cars
311
00:15:56.679 --> 00:15:58.159
for state officials and their families.
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00:15:58.200 --> 00:16:01.159
That's precisely the implication drawn from the sources, and certainly
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00:16:01.159 --> 00:16:04.879
from the state's civil complaint. Money intended for essential public
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00:16:04.919 --> 00:16:08.200
services was allegedly being siphoned off to fund a pretty
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00:16:08.200 --> 00:16:10.840
comfortable lifestyle and build investments for the munems.
316
00:16:11.200 --> 00:16:13.960
Okay, so we've seen the mechanics of the scheme, the
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00:16:14.080 --> 00:16:17.039
money flowing, the elaborate attempts to hide it, and what
318
00:16:17.080 --> 00:16:19.960
they apparently bought with it. Now, let's talk about the
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00:16:19.960 --> 00:16:23.480
real world consequences. What was the actual impact of all
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00:16:23.480 --> 00:16:26.879
this corruption on the system and maybe more importantly, the
321
00:16:26.919 --> 00:16:28.080
people affected by it.
322
00:16:28.519 --> 00:16:31.919
The consequences were definitely multi layered. They affected both the
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00:16:31.919 --> 00:16:35.879
direct recipients of state services, the inmates, and of course
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00:16:36.000 --> 00:16:41.039
the taxpayers funding the whole operation. First, and maybe most viscerally,
325
00:16:41.600 --> 00:16:43.320
is the impact on the prisoners.
326
00:16:42.919 --> 00:16:45.000
Themselves, right, the green Bologna exactly.
327
00:16:45.039 --> 00:16:47.879
We touched on this earlier, but it's really critical to reiterate.
328
00:16:48.440 --> 00:16:51.919
The sources directly link the reported poor food quality within
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00:16:52.000 --> 00:16:56.039
ODOC the green Bologna, the Muldi, Hamburger t Monem accepting
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00:16:56.080 --> 00:16:59.879
bribes to purchase specific, potentially lower quality foods from these
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00:17:00.039 --> 00:17:01.200
vEDS who were paying him off.
332
00:17:01.279 --> 00:17:03.679
So it wasn't just random spoilage or bad luck. It
333
00:17:03.720 --> 00:17:07.079
was a likely direct consequence of this corruption. He wasn't
334
00:17:07.079 --> 00:17:09.279
buying the best food. He was buying from his bribers.
335
00:17:09.640 --> 00:17:13.400
That's the strong implication from the sources. Yes, Monam wasn't
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00:17:13.400 --> 00:17:16.559
focused on getting the best value or quality for the
337
00:17:16.599 --> 00:17:20.720
state's money. His purchasing decisions were allegedly driven by who
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00:17:20.799 --> 00:17:24.519
was paying him kickbacks, potentially irrespective of the food's quality
339
00:17:24.599 --> 00:17:27.839
m M. The Prison Legal News article makes this connection
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00:17:27.960 --> 00:17:30.839
quite starkly. It notes that the prisoners who had to
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00:17:30.920 --> 00:17:34.960
endure eating this poor quality food would likely disagree profoundly
342
00:17:35.319 --> 00:17:38.960
with the judge's later suggestion that Monum's self imposed exile
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is somehow sufficient punishment.
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Yeah, I can imagine for the inmates.
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The consequences were quite literally on their plates every day,
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00:17:46.359 --> 00:17:50.400
potentially affecting their health, their morale, their basic living conditions. Yeah,
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00:17:50.400 --> 00:17:53.359
it's a direct human cost stemming from financial crime.
348
00:17:53.480 --> 00:17:56.599
Absolutely. What about the financial cost to the state, to
349
00:17:56.839 --> 00:17:59.079
organ taxpayers? Was it significant?
350
00:17:59.119 --> 00:18:02.519
It was also significes. The sources reveal the sheer volume
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00:18:02.559 --> 00:18:05.279
of business that was influenced by this scheme. Over just
352
00:18:05.279 --> 00:18:07.920
a four year period, this bribery scheme resulted in twenty
353
00:18:07.960 --> 00:18:10.839
one million dollars in food sales to ODEOC from the
354
00:18:10.839 --> 00:18:11.799
companies involved.
355
00:18:12.079 --> 00:18:15.039
Twenty one million dollars. Now, that doesn't mean the state
356
00:18:15.160 --> 00:18:18.200
lost twenty one million dollars, right, But it means that
357
00:18:18.279 --> 00:18:20.279
amount of purchasing was potentially tainted.
358
00:18:20.440 --> 00:18:23.279
Exactly. It means twenty one million dollars worth of purchasing
359
00:18:23.319 --> 00:18:27.000
decisions were potentially corrupted. This could lead to the state
360
00:18:27.039 --> 00:18:30.960
paying inflated prices, or getting substandard quality food they shouldn't
361
00:18:31.000 --> 00:18:33.480
have paid that much for, or simply not getting the
362
00:18:33.519 --> 00:18:37.839
benefit of fair competition. Okay. The civil complaint also tries
363
00:18:37.880 --> 00:18:42.160
to quantify the state's direct losses. It details claims for
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00:18:42.279 --> 00:18:46.160
damages exceeding one point one million dollars. This is money
365
00:18:46.200 --> 00:18:48.680
the state believes it lost directly because of the scheme,
366
00:18:49.200 --> 00:18:52.000
and on top of that, the state obviously encurred significant
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investigation costs to uncover and prosecute this corruption.
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Taxpayer money spent cleaning up the mess precisely.
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The term used in one source is that Orgon taxpayers
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00:19:01.079 --> 00:19:04.440
were simply builked. It highlights the sense that public money
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was essentially stolen through deceit manipulation.
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Twenty one million dollars in influenced sales, over a million
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00:19:11.000 --> 00:19:13.880
in direct damages claimed by the state. That's substantial by
374
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any measure. And this went on for years, right from
375
00:19:16.960 --> 00:19:19.279
at least late two thousand and three, maybe even two thousand,
376
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up until the raid in early two thousand and seven.
377
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What does that duration tell us about the state of
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00:19:24.839 --> 00:19:27.759
oversight within the Oregon Department of Corrections back then.
379
00:19:28.200 --> 00:19:33.720
Well, it strongly suggests as significant, perhaps even systemic, failure
380
00:19:33.720 --> 00:19:37.400
of oversight for a scheme involving this amount of money
381
00:19:37.680 --> 00:19:40.799
impacting a fundamental service like food so directly to run
382
00:19:40.799 --> 00:19:44.119
for several years. It implies that internal controls may be
383
00:19:44.279 --> 00:19:47.839
managerial scrutiny just weren't sufficient. They weren't catching it.
384
00:19:47.839 --> 00:19:50.240
It seems odd that nobody noticed the food complaints in
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00:19:50.279 --> 00:19:52.079
the Vegas trips, and put two and two together.
386
00:19:52.200 --> 00:19:54.400
It does see odd in retrospect the fact that the
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00:19:54.400 --> 00:19:56.640
ODEOC director at the time, Max Williams, who was a
388
00:19:56.640 --> 00:19:59.519
former state senator, attended one of the sentencings and called
389
00:19:59.519 --> 00:20:02.240
the sentence of warning for others well, it rings a
390
00:20:02.240 --> 00:20:05.359
bit hollow when the source material simultaneously suggests that the
391
00:20:05.440 --> 00:20:07.839
lack of oversight under his administration might have allowed the
392
00:20:07.839 --> 00:20:10.200
corruption to begin and persist for so long in the
393
00:20:10.200 --> 00:20:13.200
first place. And as we noted, earlier officials knew about
394
00:20:13.200 --> 00:20:16.680
Monam's unusual trips to Las Vegas, but they accepted that
395
00:20:16.759 --> 00:20:20.839
weak consulting explanation. That was a clear missed opportunity to
396
00:20:20.839 --> 00:20:25.440
investigate suspicious activity much earlier. It really highlights the critical
397
00:20:25.480 --> 00:20:29.880
need for robust oversight mechanisms, especially in areas like procurement,
398
00:20:30.119 --> 00:20:32.480
where huge sums of public money are involved and the
399
00:20:32.519 --> 00:20:34.079
potential for graft is high.
400
00:20:34.720 --> 00:20:38.319
So despite this apparent lack of strong internal oversight, the
401
00:20:38.359 --> 00:20:42.160
scheme did eventually come to light. What finally triggered the unraveling,
402
00:20:42.240 --> 00:20:43.279
what blew the lid off?
403
00:20:43.640 --> 00:20:46.759
The sources pinpoint the specific action that broke the case
404
00:20:46.799 --> 00:20:50.440
wide open. It was a raid. On January tenth, two
405
00:20:50.480 --> 00:20:52.759
thousand and seven, agents from both the IRS and the
406
00:20:52.839 --> 00:20:56.680
FBI conducted a raid presumably on properties connected to Fred Moonam,
407
00:20:56.880 --> 00:20:59.960
maybe his office, maybe his home, and potentially the involved
408
00:21:00.119 --> 00:21:01.240
companies as well.
409
00:21:01.079 --> 00:21:04.240
So law enforcement moving invisibly exactly.
410
00:21:04.000 --> 00:21:07.119
This kind of direct overt law enforcement action signals that
411
00:21:07.160 --> 00:21:10.079
a criminal investigation had reached a critical point. They'd moved
412
00:21:10.079 --> 00:21:13.519
from surveillance and gathering evidence to actively seizing materials and
413
00:21:13.559 --> 00:21:14.720
making their presence known.
414
00:21:14.920 --> 00:21:17.960
And once the authorities moved in like that, did everyone
415
00:21:18.039 --> 00:21:21.039
involve just lawyer up and stay silent or did things
416
00:21:21.039 --> 00:21:21.960
start moving quickly?
417
00:21:22.039 --> 00:21:25.160
Things moved very quickly after the raid. It seems the
418
00:21:25.240 --> 00:21:27.960
raid was the catalyst. Just a few months later, in
419
00:21:28.000 --> 00:21:32.160
April two thousand and seven, the four food Brokers, Michael Levin,
420
00:21:32.519 --> 00:21:36.799
William Lawrence Howard Roth from Lenel Inc. And Douglas Levine
421
00:21:36.839 --> 00:21:39.440
from twenty first century supply made a crucial decision. What
422
00:21:39.599 --> 00:21:41.119
was that they all pleaded guilty?
423
00:21:41.279 --> 00:21:44.240
All four brokers flipped what were they charged with and
424
00:21:44.279 --> 00:21:46.960
what they plead guilty to? Specifically, they each.
425
00:21:46.799 --> 00:21:50.079
Pleaded guilty to one count of bribery and one count
426
00:21:50.119 --> 00:21:54.599
of tax fraud. These are serious federal felony charges, and
427
00:21:54.640 --> 00:21:58.400
a key element of their plea agreements, according to the
428
00:21:58.480 --> 00:22:01.000
US Attorney Kent Robinson, who was quoted in the sources,
429
00:22:01.559 --> 00:22:05.079
was that their deals were entirely contingent on their cooperating
430
00:22:05.200 --> 00:22:07.839
fully with the prosecution of Fred moonam Ah.
431
00:22:07.839 --> 00:22:11.119
So cooperation was the key. Their testimony against monam was
432
00:22:11.160 --> 00:22:14.240
explicitly tied to getting a potentially better outcome for themselves.
433
00:22:14.279 --> 00:22:16.880
Absolutely, that was called a key element by the prosecutor.
434
00:22:17.119 --> 00:22:20.079
So what did that mean for their potential sentences? They
435
00:22:20.079 --> 00:22:21.839
faced serious time, right they did.
436
00:22:22.000 --> 00:22:24.359
They faced a maximum of thirteen years in prison and
437
00:22:24.400 --> 00:22:26.799
a five hundred thousand dollars fine for the charges they
438
00:22:26.839 --> 00:22:31.440
admitted to, But the government, through Assistant US Attorney Christopher Cardani,
439
00:22:31.680 --> 00:22:34.039
stated they would recommend a sentence at the low end
440
00:22:34.039 --> 00:22:37.559
of the federal sentencing guidelines range if the brokers fulfilled
441
00:22:37.559 --> 00:22:40.160
their cooperation obligations against Monam.
442
00:22:40.119 --> 00:22:43.880
So cooperate fully, maybe testify against Fred and get a
443
00:22:44.000 --> 00:22:44.880
much lighter sentence.
444
00:22:44.960 --> 00:22:46.119
That was the deal on the table.
445
00:22:46.240 --> 00:22:48.480
And when the sentences were actually handed down, which was
446
00:22:48.519 --> 00:22:50.839
quite a bit later in September and October of two
447
00:22:50.880 --> 00:22:53.640
thousand and nine by US District Court Judge An Aiken,
448
00:22:54.759 --> 00:22:56.200
what did they ultimately receive.
449
00:22:56.440 --> 00:22:59.640
Well, the sentences were indeed relatively light compared to that
450
00:22:59.640 --> 00:23:04.359
thirtie year maximum potential. Levin, Lawrence, and Roth. The three
451
00:23:04.400 --> 00:23:07.279
from ellen Ell, Inc. Each received just three months in
452
00:23:07.279 --> 00:23:10.160
prison three months three months, and that was followed by
453
00:23:10.279 --> 00:23:13.160
nine months on home detention, so they served the majority
454
00:23:13.160 --> 00:23:15.440
of their limited sentence confined to their homes, not in
455
00:23:15.480 --> 00:23:18.720
federal prison facility. They also got one thousand hours of
456
00:23:18.720 --> 00:23:19.799
community service.
457
00:23:19.519 --> 00:23:22.000
Each, Okay and Douglas Lavine, the fourth broker.
458
00:23:22.240 --> 00:23:25.799
Levine received a slightly different sentence, also three months in
459
00:23:25.839 --> 00:23:30.200
prison followed by nine months on home detention, but the
460
00:23:30.319 --> 00:23:33.200
source we have doesn't mention community service for him. There's
461
00:23:33.240 --> 00:23:35.960
a note that the prosecutor had actually requested a longer
462
00:23:36.039 --> 00:23:38.960
term for Levine, maybe two and a half years. Why
463
00:23:39.000 --> 00:23:41.960
longer for him, apparently because he had filed for bankruptcy
464
00:23:42.359 --> 00:23:45.079
rather than paying a related state civil judgment against him,
465
00:23:45.559 --> 00:23:50.119
So maybe less perceived cooperation on the financial restitution side.
466
00:23:50.319 --> 00:23:53.160
But ultimately the judge gave him the same three months prison,
467
00:23:53.480 --> 00:23:54.920
nine months home detention.
468
00:23:54.720 --> 00:23:58.319
Three months in prison for paying out collectively over a
469
00:23:58.400 --> 00:24:01.759
million dollars in bribes, corrupting twenty one million dollars in
470
00:24:01.839 --> 00:24:06.119
state purchasing, contributing to inmates eating potentially rotten food. The
471
00:24:06.119 --> 00:24:10.160
Prison Legal News article uses the phrase serious consequences were
472
00:24:10.160 --> 00:24:13.960
not forthcoming. Does that seem like maybe an understatement given
473
00:24:13.960 --> 00:24:14.880
the scale of the crime.
474
00:24:15.119 --> 00:24:17.359
The article certainly frames it that way, doesn't it. It
475
00:24:17.519 --> 00:24:22.279
implicitly questions whether the punishment really fit the crime, especially
476
00:24:22.319 --> 00:24:25.960
considering the impact. It definitely highlights the significant power of
477
00:24:26.000 --> 00:24:30.839
cooperation in the federal justice system. Their willingness to testify
478
00:24:30.880 --> 00:24:34.119
against Monam, who was the public official actually taking the bribes,
479
00:24:34.519 --> 00:24:38.680
clearly reduced their sentences dramatically from potentially many years in
480
00:24:38.720 --> 00:24:42.000
prison down to just a few months, mostly served at home.
481
00:24:42.519 --> 00:24:46.680
It's a legal calculation that often prioritizes securing testimony against
482
00:24:47.000 --> 00:24:49.480
perceived higher level perpetrators.
483
00:24:48.839 --> 00:24:50.839
Get the bigger fish, even if the smaller ones get
484
00:24:50.880 --> 00:24:51.640
lighter sentences.
485
00:24:51.759 --> 00:24:54.839
That's often the strategy. It's also worth noting, though, that
486
00:24:55.160 --> 00:24:58.359
beyond the minimal prison time, the brokers did face significant
487
00:24:58.440 --> 00:25:01.960
financial penalties since their pre agreements back in April two
488
00:25:01.960 --> 00:25:06.240
thousand and seven, Levin, Lawrence, and Roth collectively paid approximately
489
00:25:06.279 --> 00:25:09.839
one point five million dollars to settle related tax claims
490
00:25:09.839 --> 00:25:12.519
and civil plans from the state, So there were substantial
491
00:25:12.559 --> 00:25:15.240
financial consequences even if the time behind bars was short.
492
00:25:15.359 --> 00:25:17.799
Okay, one point five million dollars paid back is something.
493
00:25:18.440 --> 00:25:21.359
And there was that slightly ironic detail about their community
494
00:25:21.400 --> 00:25:22.799
service right preparing meals.
495
00:25:23.079 --> 00:25:27.319
Yes, the sources mention that as part of their community service, Levin, Lawrence,
496
00:25:27.359 --> 00:25:30.680
and Roth participated in an anti crime program down in
497
00:25:30.720 --> 00:25:35.000
Los Angeles where they actually prepared, served, and donated thousands
498
00:25:35.000 --> 00:25:36.680
of meals to those in need. Huh.
499
00:25:37.119 --> 00:25:40.440
Preparing food as community service for a crime involving corrupting
500
00:25:40.519 --> 00:25:42.359
the food supply interesting.
501
00:25:42.000 --> 00:25:45.880
A rather fitting, perhaps form of restitution given the circumstances.
502
00:25:45.920 --> 00:25:49.000
What about Karen Monem Fred's wife. We know she was
503
00:25:49.039 --> 00:25:52.160
involved in setting up the corporations handling funds using the
504
00:25:52.200 --> 00:25:54.680
credit cards. What happened in her criminal case?
505
00:25:55.240 --> 00:25:58.920
Karen Monam also faced federal criminal charges. Yes, she pleaded
506
00:25:58.920 --> 00:26:01.359
guilty on November nineteen. In two thousand and eight, she
507
00:26:01.400 --> 00:26:03.400
pleaded guilty to one count of money laundering.
508
00:26:03.440 --> 00:26:05.000
Money laundering okay, and her plea.
509
00:26:04.839 --> 00:26:08.880
Agreement also included significant financial consequences. She had to forfeit
510
00:26:08.960 --> 00:26:11.720
over seven hundred and fifty thousand dollars in assets, and
511
00:26:11.759 --> 00:26:14.240
she also had to forfeit those three extensive vehicles we
512
00:26:14.319 --> 00:26:17.880
mentioned earlier, including the two thousand and six BMW.
513
00:26:17.519 --> 00:26:20.599
So significant forfeiture for her too. What about prison time?
514
00:26:21.000 --> 00:26:24.200
Like the brokers, she faced a potential maximum sentence up
515
00:26:24.279 --> 00:26:26.480
to ten years in prison and a two hundred and
516
00:26:26.519 --> 00:26:30.559
fifty thousand dollars fine just for that money laundering charge. However,
517
00:26:30.839 --> 00:26:33.400
when she was sentenced by Judge Aiken in February two
518
00:26:33.400 --> 00:26:36.480
thousand and nine, she received one year in prison.
519
00:26:36.519 --> 00:26:39.720
One year longer than the broker's three months, but still
520
00:26:39.720 --> 00:26:42.200
considerably less than the maximum.
521
00:26:41.680 --> 00:26:43.480
Right one year in federal prison.
522
00:26:43.720 --> 00:26:46.680
Okay. So let's recap the legal fallout so far. The
523
00:26:46.720 --> 00:26:49.400
wife Karen goes to prison for a year. The four
524
00:26:49.400 --> 00:26:52.359
food brokers who paid the bribes get three months plus
525
00:26:52.359 --> 00:26:56.400
home detention, largely due to cooperation. Fred Moham was the
526
00:26:56.440 --> 00:26:59.559
central figure, the state official taking the million plus in bribes.
527
00:27:00.079 --> 00:27:00.920
What happened to him?
528
00:27:01.200 --> 00:27:03.680
This is where the narrative takes its most dramatic turn
529
00:27:04.039 --> 00:27:07.720
and really becomes the enduring, unresolved aspect of this entire story.
530
00:27:08.200 --> 00:27:11.200
With his co conspirators pleading guilty and agreeing to cooperate
531
00:27:11.240 --> 00:27:14.279
against him, and his own wife facing charges and likely
532
00:27:14.319 --> 00:27:17.920
cooperating too, Fred Moonum attempted to negotiate a plea deal
533
00:27:17.920 --> 00:27:19.559
for himself for the federal prosecutors.
534
00:27:19.640 --> 00:27:21.240
Okay, so he tried to cut a deal.
535
00:27:21.519 --> 00:27:24.119
He did. He actually met with them along with his
536
00:27:24.160 --> 00:27:28.119
wife Karen, on June twenty eighth, two thousand and seven. However,
537
00:27:28.200 --> 00:27:31.079
the sources state that when he learned what the proposed
538
00:27:31.079 --> 00:27:35.640
deal entailed, specifically that it would include a stiff prison.
539
00:27:35.359 --> 00:27:38.359
Sentence, meaning much longer than what the brokers or his
540
00:27:38.400 --> 00:27:39.200
wife got.
541
00:27:39.200 --> 00:27:43.720
Clearly something significantly more substantial. When he learned that, he
542
00:27:43.759 --> 00:27:45.039
made a very different choice.
543
00:27:45.160 --> 00:27:48.720
Entirely, he didn't like the terms, so he vanished.
544
00:27:48.519 --> 00:27:52.119
Exactly just three days after that meeting, on July first,
545
00:27:52.240 --> 00:27:54.400
two thousand and seven, he fled the country. He was
546
00:27:54.440 --> 00:27:57.119
actually scheduled to appear in court on July fifth, just
547
00:27:57.160 --> 00:27:59.720
a few days later, presumably to enter a plea or
548
00:27:59.759 --> 00:28:00.599
fifth arrayment.
549
00:28:01.039 --> 00:28:04.079
But instead he was gone, and his choice of destination
550
00:28:04.160 --> 00:28:05.160
wasn't random, was it.
551
00:28:05.160 --> 00:28:09.720
It was very deliberate, extremely deliberate, and strategically crucial. He
552
00:28:09.799 --> 00:28:11.319
fled to his homeland.
553
00:28:11.039 --> 00:28:13.920
Iran, Iran, and the key thing there is, the.
554
00:28:13.880 --> 00:28:17.240
Critical detail which the sources explain, is that Iran does
555
00:28:17.279 --> 00:28:19.200
not have an extradition treaty with the United States.
556
00:28:19.240 --> 00:28:21.079
No extradition treaty meaning.
557
00:28:20.960 --> 00:28:24.440
Meaning the standard legal process that countries use to compel
558
00:28:24.480 --> 00:28:27.799
a fugitive's return from one country to face charges in another.
559
00:28:28.559 --> 00:28:32.799
It's simply unavailable between the US and Iran. Unless Iran
560
00:28:32.880 --> 00:28:37.400
decides voluntarily to extradite him which is highly unlikely for
561
00:28:37.440 --> 00:28:40.000
one of his own citizens to the US, especially without
562
00:28:40.000 --> 00:28:43.440
a treaty, or unless he leaves Iran and gets apprehended
563
00:28:43.559 --> 00:28:46.160
in a third country that does have a treaty, the
564
00:28:46.200 --> 00:28:49.400
US government is very limited legal recourse to force his return.
565
00:28:49.799 --> 00:28:52.160
He basically put himself beyond their legal reach.
566
00:28:52.319 --> 00:28:54.839
And when he fled, he didn't just leave behind the
567
00:28:54.880 --> 00:28:57.680
legal trouble on the prospect of prison. There was a personal.
568
00:28:57.279 --> 00:29:00.400
Cost too, Yes, the sources mentioned the personal cost of
569
00:29:00.440 --> 00:29:03.720
his decision what he left behind. He left behind his wife, Karen,
570
00:29:03.839 --> 00:29:06.799
who would later face her own criminal proceedings and serve
571
00:29:06.880 --> 00:29:10.720
that year in prison. He also left behind their teenage son, Ah,
572
00:29:10.759 --> 00:29:15.039
and the son was reportedly suffering from serious psychiatric problems
573
00:29:15.400 --> 00:29:18.480
linked to the onset of schizophrenia. So it paints this
574
00:29:18.559 --> 00:29:21.920
picture of real personal tragedy layered on top of the
575
00:29:22.000 --> 00:29:25.960
legal and financial fallout of the crime itself. He chose
576
00:29:26.079 --> 00:29:29.799
escape overfacing the consequences, leaving his family to deal with
577
00:29:29.839 --> 00:29:30.519
the aftermath.
578
00:29:30.720 --> 00:29:33.640
So where does his criminal case stand now with him gone?
579
00:29:33.680 --> 00:29:34.759
Did they just drop it?
580
00:29:34.920 --> 00:29:37.480
Oh? No, not at all. He was formally indicted by
581
00:29:37.519 --> 00:29:40.440
a federal grand jury on October nineteen, two thousand and seven,
582
00:29:40.559 --> 00:29:43.039
a few months after he fled, and it wasn't just
583
00:29:43.079 --> 00:29:45.039
a couple of charges. He was indicted on a total
584
00:29:45.079 --> 00:29:45.920
of twenty counts.
585
00:29:46.000 --> 00:29:48.680
Twenty counts? What were the specific charges they hit him with?
586
00:29:49.039 --> 00:29:52.000
The indictment covered a wide range of serious federal crimes
587
00:29:52.000 --> 00:29:55.160
related to the whole scheme. It included charges of conspiracy,
588
00:29:55.440 --> 00:29:58.319
multiple counts of mail fraud, multile accounts of wire fraud,
589
00:29:58.599 --> 00:30:02.880
bribery itself, moneylaws, and even interstate travel in aid of racketeering.
590
00:30:03.640 --> 00:30:06.200
These charges really reflect the breadth and the duration of
591
00:30:06.200 --> 00:30:08.640
the alleged criminal activity the uncovered.
592
00:30:08.319 --> 00:30:09.400
And they knew where he went.
593
00:30:09.839 --> 00:30:13.799
The FBI tracked him to Iran pretty quickly. Back in
594
00:30:13.839 --> 00:30:17.160
November two thousand and eight, around the time Karen Monum
595
00:30:17.240 --> 00:30:20.759
entered her plea assistant US attorney Chris Cardani was quoted
596
00:30:20.799 --> 00:30:24.880
saying the FBI was confident he is there, and that's
597
00:30:24.880 --> 00:30:28.000
when the detail about him hurting sheep came out. They
598
00:30:28.039 --> 00:30:29.119
believe that's what he might be.
599
00:30:29.079 --> 00:30:32.079
Doing, hurting sheep in Iran. Quite the change from administering
600
00:30:32.079 --> 00:30:33.799
a state food service budget.
601
00:30:33.920 --> 00:30:36.279
Quite the change. At that point, they knew he was
602
00:30:36.319 --> 00:30:40.960
refusing to return voluntarily, but authorities maintained then and likely
603
00:30:41.039 --> 00:30:44.160
still do, that they would absolutely pursue him if he
604
00:30:44.200 --> 00:30:46.079
ever came back to the US or was located in
605
00:30:46.119 --> 00:30:48.039
a country where extradition is possible.
606
00:30:48.160 --> 00:30:49.680
Have they kept trod of him since then?
607
00:30:49.799 --> 00:30:51.799
Well. By the time the Prison Legal News article was
608
00:30:51.799 --> 00:30:55.000
published in twenty ten, there seemed to be maybe slightly
609
00:30:55.119 --> 00:30:59.359
less certainty about his specific activities within Iran. Gardani was
610
00:30:59.440 --> 00:31:01.880
quoted then saying I'm not aware of whether he is
611
00:31:01.920 --> 00:31:04.880
still tending sheep in Iran, but the bottom line is
612
00:31:04.960 --> 00:31:08.039
he remains a wanted federal fugitive and the.
613
00:31:08.039 --> 00:31:10.839
FBI still lists him on their wanted posters. Right. That
614
00:31:10.920 --> 00:31:13.799
poster contains quite a bit of identifying information, doesn't it
615
00:31:13.839 --> 00:31:15.160
trying to keep his face out there?
616
00:31:15.359 --> 00:31:18.519
It does. It's a tool to potentially generate leads or
617
00:31:18.599 --> 00:31:22.640
aid identification if he surfaces somewhere. It lists his alias,
618
00:31:22.839 --> 00:31:26.559
fred Monem, confirms his date of birth as July thirty,
619
00:31:26.799 --> 00:31:30.400
nineteen fifty eight, and his place of birth as Tehran, Iran.
620
00:31:30.519 --> 00:31:32.119
Physical description lists.
621
00:31:31.920 --> 00:31:35.400
Him as having black hair, brown eyes, about five foot
622
00:31:35.440 --> 00:31:39.599
ten tall, weighing approximately two hundred and ten pounds. Male,
623
00:31:40.160 --> 00:31:43.759
race listed as white Persian. His occupations are noted as prison,
624
00:31:43.799 --> 00:31:46.960
food buyer, and food salesman, reflecting both his official role
625
00:31:47.079 --> 00:31:48.440
and maybe prior experience.
626
00:31:48.559 --> 00:31:50.039
Nationality languages.
627
00:31:50.119 --> 00:31:53.359
He's of Iranian nationality, but is also a naturalized American citizen.
628
00:31:53.720 --> 00:31:57.759
Speaks both Farsi and English. The poster notes ties to California, Canada,
629
00:31:57.799 --> 00:32:01.160
and obviously Iran, and it's specifically mentions his travel to Buffalo,
630
00:32:01.160 --> 00:32:03.640
New York on July first, two thousand and seven. That's
631
00:32:03.680 --> 00:32:05.599
the day he fled, likely part of his route out
632
00:32:05.599 --> 00:32:06.079
of the country.
633
00:32:06.119 --> 00:32:08.319
Any personal habits mentioned sometimes those help.
634
00:32:08.440 --> 00:32:11.039
It includes some interesting personal habits. Yes, yes, he is
635
00:32:11.079 --> 00:32:14.240
alleged to be a heavy user of marijuana, hashish, and alcohol,
636
00:32:14.440 --> 00:32:16.480
and it also notes he reportedly likes to gamble.
637
00:32:16.559 --> 00:32:19.160
The gambling habit again connecting back to those Las Vegas
638
00:32:19.200 --> 00:32:22.799
meetings with Levigne where the bribes were allegedly paid exactly.
639
00:32:22.359 --> 00:32:25.000
It potentially corroborates that aspect of the story.
640
00:32:24.759 --> 00:32:27.279
And the FBI is offering a reward for him.
641
00:32:27.480 --> 00:32:30.200
Yes, there's a reward of up to twenty thousand dollars
642
00:32:30.640 --> 00:32:33.960
offered for information leading directly to his arrest and conviction.
643
00:32:35.000 --> 00:32:39.200
The poster essentially serves as a standing notice authorities intend
644
00:32:39.279 --> 00:32:41.400
to pursue him if he is ever located and can
645
00:32:41.440 --> 00:32:44.480
be brought into custody. He's not forgotten legally speaking.
646
00:32:44.720 --> 00:32:47.279
It's just so striking though, that even the federal judge,
647
00:32:47.519 --> 00:32:50.759
Judge Aiken, who sentenced the others, seemed to acknowledge his
648
00:32:50.880 --> 00:32:53.680
fugitive status itself as a kind of punishment.
649
00:32:53.839 --> 00:32:56.759
She did make a comment along those lines, suggesting perhaps
650
00:32:56.799 --> 00:33:00.160
reflectively during one of the sentencings that Fred mohnham'sself from
651
00:33:00.200 --> 00:33:02.519
post exile, being forced to live away from his home,
652
00:33:02.599 --> 00:33:05.920
his family, his country, might itself be considered an appropriate
653
00:33:05.920 --> 00:33:06.559
punishment in.
654
00:33:06.519 --> 00:33:08.839
Some ways, but the sources push back on that idea
655
00:33:08.920 --> 00:33:09.799
right immediately.
656
00:33:10.079 --> 00:33:14.480
The source material, particularly prison legal News, provides that crucial contrast.
657
00:33:15.319 --> 00:33:18.799
It highlights that the built Oregon taxpayers who lost public money,
658
00:33:19.400 --> 00:33:21.759
and especially the prisoners who had to actually eat the
659
00:33:21.799 --> 00:33:25.480
poor quality food resulting from his corruption, they would likely
660
00:33:25.480 --> 00:33:27.160
see things very, very differently.
661
00:33:27.480 --> 00:33:31.400
Yeah, exile doesn't feel like justice if you're the victim exactly.
662
00:33:31.279 --> 00:33:36.079
For them, his exile probably feels much more like evading justice,
663
00:33:36.319 --> 00:33:40.240
not receiving it, especially when this central figure who arguably
664
00:33:40.279 --> 00:33:43.920
caused the most direct harm is living seemingly comfortably beyond
665
00:33:43.960 --> 00:33:46.400
the reach of the law that punished everyone else involved,
666
00:33:46.680 --> 00:33:48.319
albeit lightly in some cases.
667
00:33:48.519 --> 00:33:51.599
Okay, so that covers the federal criminal cases against Fred
668
00:33:51.960 --> 00:33:54.880
Karen and the brokers. But there was another legal front
669
00:33:54.920 --> 00:33:57.440
as well, wasn't there. The State of Oregon itself pursued
670
00:33:57.519 --> 00:33:58.519
legal action, that's.
671
00:33:58.319 --> 00:34:02.079
Correct, recognizing the significant harm done to the state itself
672
00:34:02.640 --> 00:34:05.960
beyond just the federal crimes. The State of Oregon, led
673
00:34:06.000 --> 00:34:08.760
by the Attorney General at the time, Hardy Myers filed
674
00:34:08.800 --> 00:34:12.400
his own civil complaint. This complaint is dated July twenty five,
675
00:34:12.440 --> 00:34:14.760
two thousand and seven, So this was happening pretty quickly
676
00:34:14.760 --> 00:34:16.840
after Fredmonam had fled and around the same time the
677
00:34:16.840 --> 00:34:19.519
co conspirators had entered their guilty please in federal court.
678
00:34:19.679 --> 00:34:22.199
And who did the state sue in this civil case?
679
00:34:22.360 --> 00:34:25.280
Was it just Fred No, They went after the whole network. Essentially.
680
00:34:25.760 --> 00:34:28.639
The lawsuit was filed against Fredmonam, Karen Monam, and the
681
00:34:28.719 --> 00:34:32.199
various corporations and trusts that the illicit funds were allegedly
682
00:34:32.280 --> 00:34:36.320
channeled through or were assets were held. This specifically included
683
00:34:36.519 --> 00:34:40.559
jam Inc, Larimo LLC, and something called the M and
684
00:34:40.639 --> 00:34:42.400
K Revocable Trust.
685
00:34:42.719 --> 00:34:47.039
So they were targeting the individuals responsible and the corporate
686
00:34:47.159 --> 00:34:51.519
entities used to facilitate or conceal the whole scheme, smart.
687
00:34:51.199 --> 00:34:53.559
Right, trying to claw back the money and hold everyone
688
00:34:53.599 --> 00:34:55.639
involved accountable under state law.
689
00:34:55.920 --> 00:34:58.880
What were the main legal claims the state brought in
690
00:34:58.960 --> 00:35:01.199
the civil suit? The rounds were they suing on?
691
00:35:01.280 --> 00:35:04.159
According to the complaint, The civil complaint laid out several
692
00:35:04.199 --> 00:35:06.960
distinct legal claims trying to cover all the bases to
693
00:35:07.000 --> 00:35:10.719
recover losses and penalize the defendants. Under Oregon law, one
694
00:35:10.760 --> 00:35:14.440
of the most significant claims was for racketeering activity. Specifically,
695
00:35:14.639 --> 00:35:17.599
they alleged a violation of the organ Raggeteer Influenced in
696
00:35:17.639 --> 00:35:21.159
Corrupt Organizations Act, usually known as Oregon RYCO.
697
00:35:21.000 --> 00:35:24.559
Oregon RX, so, similar to the federal Araka statute. How
698
00:35:24.559 --> 00:35:26.800
did the state argue this was a racketeering case not
699
00:35:26.840 --> 00:35:27.480
just bribery.
700
00:35:27.679 --> 00:35:31.320
The state alleged that an enterprise existed basically the Monems
701
00:35:31.360 --> 00:35:35.039
in their associated companies and maybe the brokers, operating from
702
00:35:35.119 --> 00:35:38.079
roughly two thousand to two thousand and seven, and the
703
00:35:38.119 --> 00:35:41.960
purpose of this enterprise, they argued, was specifically to engage
704
00:35:42.000 --> 00:35:45.400
in a pattern of systemic racketeering activity, and that activity
705
00:35:45.519 --> 00:35:50.519
was primarily bribery and bribe receiving. They cited numerous specific
706
00:35:50.559 --> 00:35:54.760
alleged bribe incidents as evidence of this ongoing pattern. So
707
00:35:54.840 --> 00:35:58.119
the archaeo claim wasn't just about individual acts of bribery.
708
00:35:58.440 --> 00:36:01.119
It was alleging that the monems and the network constituted
709
00:36:01.159 --> 00:36:05.239
an organized group operating with a continuous criminal purpose, specifically
710
00:36:05.320 --> 00:36:08.400
focused on subverting the state's food procurement process for their
711
00:36:08.440 --> 00:36:08.920
own gain.
712
00:36:09.320 --> 00:36:12.119
So the state officially viewed this not just as isolated
713
00:36:12.159 --> 00:36:14.920
corrupt acts by one bad apple, but as an organized
714
00:36:14.920 --> 00:36:18.440
criminal enterprise that had embedded itself within a state agency.
715
00:36:18.639 --> 00:36:20.440
That's a pretty serious allegation.
716
00:36:20.599 --> 00:36:23.159
It is a very serious allegation. Yes, and he carries
717
00:36:23.199 --> 00:36:25.880
potentially heavier penalties under the Archaea statue.
718
00:36:26.000 --> 00:36:28.440
What other claims did the state make besides ARCO?
719
00:36:28.679 --> 00:36:31.239
They also included a claim for a theft by deception.
720
00:36:32.280 --> 00:36:35.760
This basically alleged that fred Monem, as a public official
721
00:36:35.800 --> 00:36:39.280
receiving a salary from the state, deceived the state by
722
00:36:39.280 --> 00:36:42.079
failing to provide the honest services he was paid for.
723
00:36:42.639 --> 00:36:45.920
By engaging in corruption instead of doing his job honestly,
724
00:36:46.280 --> 00:36:49.159
he was essentially stealing his salary and benefits from the state.
725
00:36:49.400 --> 00:36:53.480
Makes sense he wasn't upholding his end of the bargain right. Then.
726
00:36:53.519 --> 00:36:57.119
There was also an anti trust claim, specifically for restraintive trade.
727
00:36:57.360 --> 00:37:00.880
This alleged illegal conduct involving interstate commerce since the brokers
728
00:37:00.880 --> 00:37:04.079
were based in California. By entering into agreements the bribery
729
00:37:04.079 --> 00:37:08.159
scheme itself that unlawfully limited or restrained competition in the
730
00:37:08.199 --> 00:37:11.440
market for food being sold to the state Department of Corrections,
731
00:37:11.880 --> 00:37:14.440
essentially arguing the bribes rigged the market.
732
00:37:14.519 --> 00:37:18.440
Yeah, bribery definitely restrains fair competition. Any other claims, Yes.
733
00:37:18.760 --> 00:37:22.320
They also included some more straightforward claims like money had
734
00:37:22.360 --> 00:37:28.000
and received, sometimes called bribe payments. These claims argued simply
735
00:37:28.440 --> 00:37:30.719
that the defendants were indebted to the state for all
736
00:37:30.719 --> 00:37:33.760
the money they unlawfully received through the bribery scheme and
737
00:37:33.800 --> 00:37:36.760
they should have to pay it back. And finally, a
738
00:37:36.840 --> 00:37:38.639
claim for unjust.
739
00:37:38.199 --> 00:37:40.840
Enrichment unjust enrichment, arguing.
740
00:37:40.519 --> 00:37:44.599
That the defendants benefited unfairly and unjustly. They were enriched
741
00:37:44.639 --> 00:37:48.880
by subverting the public procurement process and fraudulently influencing state
742
00:37:48.960 --> 00:37:52.039
contracts for their personal gain, and they would be unjust
743
00:37:52.079 --> 00:37:54.920
for them to keep those ill gotten gains. So again,
744
00:37:55.119 --> 00:37:55.920
give the money.
745
00:37:55.679 --> 00:37:57.880
Back, okay. So they used a wide range of legal
746
00:37:57.920 --> 00:38:01.840
tools rico, theft, and trust unjustin Richmond, all aimed at
747
00:38:01.840 --> 00:38:04.760
getting the money back and penalizing the monems and their entities.
748
00:38:05.199 --> 00:38:08.079
What was the state actually seeking with this civil lawsuit?
749
00:38:08.079 --> 00:38:09.280
What did they ask the court for?
750
00:38:09.559 --> 00:38:12.360
The State sought pretty significant relief in that suit. They
751
00:38:12.400 --> 00:38:15.880
were definitely after monetary damages, asking for an amount exceeding
752
00:38:15.880 --> 00:38:19.039
one point one million dollars that represents the direct financial
753
00:38:19.079 --> 00:38:21.559
losses they felt they could identify improve.
754
00:38:21.440 --> 00:38:23.880
Over one point one million dollars in damages.
755
00:38:24.280 --> 00:38:28.960
Yes, and crucially, under Organ's raco and antitrust laws, this
756
00:38:29.119 --> 00:38:32.880
state could potentially ask for those damages to be trebled,
757
00:38:33.320 --> 00:38:34.519
meaning multiplied by.
758
00:38:34.400 --> 00:38:36.760
Three treble damages. Wow.
759
00:38:36.840 --> 00:38:39.960
Yeah, that's a common provision in racketeering and antitrust laws.
760
00:38:40.480 --> 00:38:43.159
It's designed to strongly deter this kind of activity and
761
00:38:43.159 --> 00:38:46.960
provide a much more significant financial penalty than just recovering
762
00:38:46.960 --> 00:38:50.000
the direct loss. So potentially over three million dollars just
763
00:38:50.039 --> 00:38:50.639
in damages.
764
00:38:51.039 --> 00:38:52.280
What else? Besides money?
765
00:38:52.760 --> 00:38:55.320
They also sought the forfeiture of the assets that were
766
00:38:55.320 --> 00:38:59.000
purchased with the illicit funds, specifically mentioning the real properties
767
00:38:59.039 --> 00:39:01.199
we talked about earlier. They wanted the state to take
768
00:39:01.199 --> 00:39:04.199
ownership of those. They were also asking for civil penalties
769
00:39:04.239 --> 00:39:06.519
potentially up to two hundred and fifty thousand dollars per
770
00:39:06.639 --> 00:39:10.599
violation under some of the statutes, and finally, injunctions court
771
00:39:10.719 --> 00:39:13.760
orders to prevent any future similar conduct by those involved,
772
00:39:13.920 --> 00:39:15.800
although that might be less relevant with Fred out of
773
00:39:15.800 --> 00:39:18.039
the country and the company's likely defunct.
774
00:39:18.199 --> 00:39:20.199
That civil case, even though it might be hard to
775
00:39:20.239 --> 00:39:23.679
collect from Fred, really adds another important layer to understanding
776
00:39:23.760 --> 00:39:26.719
just how extensive the alleged scheme was and how seriously
777
00:39:26.760 --> 00:39:28.239
the State of organ viewed it legally.
778
00:39:28.519 --> 00:39:31.199
It absolutely does. The range and the nature of the
779
00:39:31.239 --> 00:39:34.039
legal claims brought in that civil suit, especially throwing the
780
00:39:34.119 --> 00:39:37.559
r CHEO charge in there, really reinforces the narrative that
781
00:39:37.639 --> 00:39:41.159
the state saw this as a sophisticated, long running, and
782
00:39:41.360 --> 00:39:45.599
organized criminal enterprise, not just a simple isolated, active bribery
783
00:39:45.599 --> 00:39:48.519
by one guy. Yeah. It provides further detail on the
784
00:39:48.559 --> 00:39:51.480
mechanics and the scope, laying out the state's argument with
785
00:39:51.599 --> 00:39:55.519
specific incidents and financial flows to support their view that
786
00:39:55.559 --> 00:39:58.719
this was a fundamental subversion of public trust and the
787
00:39:58.760 --> 00:40:02.480
state's financial process. This is requiring a strong legal response.
788
00:40:02.880 --> 00:40:04.800
Okay, so we've really covered a lot of ground here.
789
00:40:04.800 --> 00:40:08.840
We've gone from this picture of a seemingly successful state
790
00:40:08.880 --> 00:40:13.000
official praised for saving money on prison food, right through
791
00:40:13.039 --> 00:40:17.320
the intricate, disturbing details of a multimillion dollar bribery and
792
00:40:17.400 --> 00:40:22.760
kickback scheme involving food brokers, shell corporations, cash in Vegas.
793
00:40:22.519 --> 00:40:25.800
Fake invoices, the wife's involvement using our brother's bank accounts.
794
00:40:26.039 --> 00:40:29.000
Right then, the impact, the awful food quality for prisoners,
795
00:40:29.039 --> 00:40:32.800
the financial cost of taxpayers, the apparent oversight failures that
796
00:40:32.920 --> 00:40:34.760
let it happen for so long, in.
797
00:40:34.639 --> 00:40:38.159
The legal fallout, the raid, the plea deals for most involved,
798
00:40:38.440 --> 00:40:41.719
the relatively light sentences for the brokers, the year in
799
00:40:41.800 --> 00:40:44.039
prison for Karen Monam.
800
00:40:43.719 --> 00:40:47.440
And finally, the central figure, Fred Monam, learns he's facing
801
00:40:47.519 --> 00:40:51.039
real time, flees the country to Iran and remains a
802
00:40:51.079 --> 00:40:55.840
fugitive to this day, wanted on twenty federal counts. Bringing
803
00:40:55.840 --> 00:40:58.559
all of this together, what does this deep dive into
804
00:40:58.639 --> 00:41:02.719
the Oregon prison food bribery scandal ultimately? Well, what does
805
00:41:02.760 --> 00:41:04.480
it mean? What are the big takeaways?
806
00:41:04.800 --> 00:41:07.960
I think it means fundamentally that a trusted public official
807
00:41:08.280 --> 00:41:12.760
systematically exploited a vital state function feeding people in state custody,
808
00:41:13.000 --> 00:41:16.599
purely for his own personal financial gain. He orchestrated a
809
00:41:16.639 --> 00:41:20.239
scheme that lasted for years, involving a significant network, and.
810
00:41:20.239 --> 00:41:22.880
The scale was huge. We're talking over a million dollars
811
00:41:22.880 --> 00:41:26.519
in bribes and kickbacks, directly influencing twenty one million dollars
812
00:41:26.559 --> 00:41:29.920
in state purchasing decisions over just four years. It wasn't
813
00:41:29.920 --> 00:41:31.280
small potatoes.
814
00:41:30.840 --> 00:41:33.440
Not at all, and in all players beyond just the
815
00:41:33.480 --> 00:41:36.480
corrupt official extending into the private sector with these food
816
00:41:36.480 --> 00:41:39.039
brokers who were willing participants in the scheme, paying the
817
00:41:39.079 --> 00:41:40.159
bribes to get the business.
818
00:41:40.400 --> 00:41:44.639
And crucially, the consequences weren't just abstract financial losses on
819
00:41:44.679 --> 00:41:48.719
a state ledger somewhere. They directly impacted the quality of life,
820
00:41:48.760 --> 00:41:52.000
maybe even the health of thousands of prisoners, and they
821
00:41:52.039 --> 00:41:56.559
imposed real financial costs and investigation costs on Oregon taxpayers.
822
00:41:57.039 --> 00:42:00.880
Precisely. It really underscores the fact that this public corruption
823
00:42:01.199 --> 00:42:04.840
has real victims. It's not a victimless crime. When we
824
00:42:04.880 --> 00:42:08.239
look at the outcomes, the justice served part, it's definitely
825
00:42:08.280 --> 00:42:09.480
a mixed picture, isn't it.
826
00:42:09.599 --> 00:42:10.719
Yeah, very mixed.
827
00:42:10.840 --> 00:42:15.079
The cooperating food brokers received frankly very light prison sentences,
828
00:42:15.440 --> 00:42:18.559
mainly served a home. It highlights just how much leverage
829
00:42:18.559 --> 00:42:22.199
cooperation can give defendants in the federal system. Karen Monum
830
00:42:22.239 --> 00:42:25.079
served a year accepting responsibility for her role in the
831
00:42:25.079 --> 00:42:26.239
money laundering aspect.
832
00:42:26.480 --> 00:42:29.400
The architect of the entire scheme, the state official who
833
00:42:29.400 --> 00:42:32.719
took the bribes and arguably betrayed the public trust. Most directly,
834
00:42:33.039 --> 00:42:36.159
Fred moonem he remains completely beyond the reach of the
835
00:42:36.280 --> 00:42:37.639
US legal system, and.
836
00:42:37.559 --> 00:42:40.280
That's arguably the most striking, the most frustrating, and the
837
00:42:40.280 --> 00:42:44.480
most unresolved part of this whole story. He successfully evaded
838
00:42:44.559 --> 00:42:48.480
facing those numerous serious federal charges against him simply by
839
00:42:48.559 --> 00:42:51.440
fleeing to a country without an extradition treaty.
840
00:42:52.239 --> 00:42:54.760
So that claim we started with that this was the
841
00:42:54.800 --> 00:42:58.559
worst corruption case in Oregon's history, it doesn't sound like
842
00:42:58.639 --> 00:43:01.920
hyperbole when you consider this scale, the dollar amounts, the duration,
843
00:43:02.519 --> 00:43:05.159
the profound breach of public trust by someone in such
844
00:43:05.199 --> 00:43:06.800
a critical position, and.
845
00:43:06.840 --> 00:43:10.840
Especially given the ultimate inability to bring the central figure
846
00:43:10.880 --> 00:43:14.360
to justice, it really lends weight to that claim. While
847
00:43:14.360 --> 00:43:17.239
parts of the system did respond eventually, the FBI and
848
00:43:17.280 --> 00:43:20.880
IRS investigation, the federal prosecutions, the state's civil suit, the
849
00:43:20.920 --> 00:43:24.880
convictions and sentences for some players, the ultimate accountability for
850
00:43:24.920 --> 00:43:28.639
the main perpetrator remains completely elusive because he successfully fled.
851
00:43:28.880 --> 00:43:31.760
It really does force you to consider the vulnerabilities that
852
00:43:31.840 --> 00:43:35.199
might exist within public procurement systems everywhere, and maybe the
853
00:43:35.239 --> 00:43:38.800
inherent limits of accountability when a key figure manages to
854
00:43:38.880 --> 00:43:41.840
just physically remove themselves from the reach of justice.
855
00:43:41.960 --> 00:43:44.599
It certainly leaves some fundamental questions hanging in the air,
856
00:43:44.679 --> 00:43:47.719
doesn't it about how to prevent this kind of corruption
857
00:43:47.800 --> 00:43:50.599
in the first place, and what justice truly looks like
858
00:43:51.000 --> 00:43:53.880
when it cannot be fully delivered to the person seemingly
859
00:43:53.920 --> 00:43:54.880
most responsible.
860
00:43:54.960 --> 00:43:57.920
Well, that was a truly deep dive into a complex
861
00:43:58.039 --> 00:44:02.239
and frankly pretty disheartening case of public corruption and its aftermath.
862
00:44:02.559 --> 00:44:04.480
Thank you for joining us as we unpacked all these
863
00:44:04.559 --> 00:44:05.840
layers from the sources we had.
864
00:44:05.920 --> 00:44:06.239
Thank you.
865
00:44:06.320 --> 00:44:08.480
It's quite a story, it really is, and it leaves
866
00:44:08.559 --> 00:44:11.800
us with this thought. When a public official betrays trust
867
00:44:11.880 --> 00:44:17.119
on such a scale, influences millions in spending, impacts vulnerable populations,
868
00:44:17.599 --> 00:44:21.719
and then successfully evades justice by fleeing the country, leaving
869
00:44:21.800 --> 00:44:25.239
legal consequences behind for others and the system itself struggling
870
00:44:25.239 --> 00:44:28.920
to fully recover. What does that ultimately tell us about
871
00:44:28.960 --> 00:44:31.920
the mechanisms meant to protect the public from corruption, and,
872
00:44:32.000 --> 00:44:35.519
maybe more profoundly, what does accountability truly mean when the
873
00:44:35.559 --> 00:44:38.119
central figure who caused so much harm is, for all
874
00:44:38.119 --> 00:44:39.679
practical purposes beyond reach