BAKER CITY, OR – Jeremy Clawson, 32, of Baker City, Oregon, is facing up to two years in federal prison after pleading guilty to stealing $145,200 in Covid-19 relief funds. The money, intended for struggling small businesses, was used to finance a lavish lifestyle, headlined by the purchase of a 2016 Dodge Challenger.
According to court documents, Clawson fraudulently obtained an Economic Injury Disaster Loan (EIDL) through the Small Business Administration (SBA) and the Paycheck Protection Program (PPP), both part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The scheme involved a fabricated company, “Halperin Manufacturing Company,” purportedly based in San Diego, California, and claiming to employ 350 people. Investigators quickly discovered the company didn’t exist, and the listed owner denied any affiliation.
The scam unraveled after Umpqua Bank investigators flagged unusual activity – large cash withdrawals from the account where the $145,200 EIDL deposit landed. Clawson wasted little time, withdrawing $49,905 in the form of a cashier’s check to purchase the Dodge Challenger. The bank alerted the SBA, initiating a swift investigation. Adding to the mounting evidence, Clawson was arrested in late August 2020, while driving the newly-purchased Challenger, on charges of driving under the influence, reckless driving, driving with a suspended license, and attempting to elude police.
During questioning at the Baker County Jail, Clawson initially claimed the money was a gift from an online girlfriend. He then admitted to spending the funds on the Dodge Challenger and other vehicles after communication with the woman ceased. Federal agents seized the Challenger and roughly $50,000 in cash linked to the fraudulent loan. Clawson was initially charged by criminal complaint with theft of government property in December 2020, and a federal grand jury returned a one-count indictment in February 2021.
Clawson pleaded guilty to one count of theft of public money, a crime punishable by up to 10 years in prison, a $250,000 fine, and three years’ supervised release. However, due to his acceptance of responsibility, the U.S. Attorney’s Office has agreed to recommend a 24-month prison sentence followed by three years’ supervised release. He’s also agreed to pay $125,200 in restitution to the U.S. Treasury.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon is prosecuting the case. Clawson is scheduled to be sentenced on September 13, 2021. This case serves as a stark reminder that those attempting to exploit disaster relief programs will be held accountable. The SBA and the U.S. Attorney’s Office continue to aggressively pursue those who defraud these vital programs, diverting funds from those who legitimately need them.
Related Federal Cases
- Eric Karnezis, $178M COVID-19 Relief Fraud, Portland OR, 2024 · Oregon
- Kenneth Thom, Investment Adviser Fraud, New York NY, 2026 · Oregon
- Willis D Lonn Jr, Mail Fraud, WA 2016 · Oregon
- Michael Mirando, Insurance Fraud, California · Oregon
- Gregory Walsh, Real Estate Investment Fraud, Oregon 2023 · Oregon
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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