United States v. Jeremy Clawson

Case summary

Jeremy Clawson, 32, of Baker City, Oregon, pleaded guilty in June 2021 to one count of theft of public money for converting a COVID-relief loan meant to help small businesses to his personal use.¹

On August 11, 2020, the proceeds of a $145,200 Economic Injury Disaster Loan were deposited into an Umpqua Bank account owned by Clawson and his girlfriend. Shortly after, Clawson began making large cash withdrawals at an Umpqua Bank drive-through window in Baker City; on August 17, 2020, he withdrew $49,905 as a cashier's check to buy a 2016 Dodge Challenger. Umpqua Bank investigators flagged the activity and reported it to the SBA.¹

SBA loan documents showed the loan was made for the benefit of Halperin Manufacturing Company in San Diego, California; the application claimed it employed 350 people. According to the U.S. Attorney's Office, there is no record of any such company. The office said the person listed as its owner denied owning or being affiliated with it, and said the supposed San Diego address was that person's residence, not a commercial property with 350 employees.¹

In late August 2020, Clawson was arrested by Baker City police for driving under the influence, reckless driving, driving with a suspended license, and attempting to elude police — while driving the Dodge Challenger. He later told authorities he had received a large inheritance from his father, including $30,000 in cash found on him during a subsequent arrest. Interviewed on September 11, 2020, at the Baker County Jail, where he was held on an unrelated charge, Clawson claimed the $145,200 came from a woman with whom he had an online dating relationship. He claimed he didn't know what to do with the money, and that after he stopped communicating with her he began spending it himself. He admitted to using the SBA funds to buy the Challenger and several other vehicles.¹

Clawson was charged by criminal complaint on December 21, 2020, and a federal grand jury in Portland indicted him on a single count of theft of public money on February 2, 2021. Federal agents seized the Dodge Challenger and approximately $50,000 in cash traced to the fraudulent EIDL. The U.S. Attorney's Office said it would recommend a 24-month prison sentence followed by three years of supervised release if Clawson continued to accept responsibility. Under the plea agreement he agreed to pay $125,200 in restitution to the U.S. Treasury, and sentencing was set for September 13, 2021. The case was investigated by the SBA and the U.S. Secret Service.¹

Notes

1. U.S. Attorney's Office for the District of Oregon, "Baker City Man Pleads Guilty in Covid-Relief Fraud Scheme" (original), June 8, 2021. ↩₁ ↩₂ ↩₃ ↩₄ ↩₅

Summary written from the documents on this page; every sentence is sourced.