Tigard Man Gets 9 Years for Sex Trafficking, Money Laundering

A Tigard man with a lengthy criminal history has been sentenced to 9 years in federal prison for transporting an adult victim across state lines for illegal sexual activity and laundering the proceeds through a Portland-based bottled water company.

Johnell Lee Cleveland, 42, of Tigard, was sentenced to 108 months in federal prison and 7 years of supervised release. He was also ordered to pay $32,115 in restitution to the Oregon Department of Employment. The sum of restitution Cleveland must pay to his adult victim will be determined at a later date.

“In the summer of 2020, Johnell Cleveland received a rare early release from federal prison he could have used as an opportunity to chart a new path away from criminality. Unfortunately, he did the exact opposite, diving headfirst into a remarkable series of crimes,” said Steven T. Mygrant, Chief of the Narcotics and Criminal Enterprises Unit of the United States Attorney’s Office for the District of Oregon.

“Johnell Cleveland has demonstrated a flagrant disregard for the law,” said Douglas A. Olson, Special Agent in Charge of the FBI Portland Field Office. “Even after serving a prison term, Cleveland continued his chronic criminal behavior with money laundering, wire fraud, and transporting an adult victim for illegal sexual activity. The FBI, along with our partners, is dedicated to maintaining the safety of our communities, and with Cleveland behind bars, our community is more secure.”

Cleveland’s crimes began to unravel when investigators discovered a series of fraudulent insurance policy applications he submitted for nine pieces of jewelry previously seized by law enforcement. Cleveland and his associate submitted a false burglary report to the Las Vegas Police Department, claiming the jewelry had been stolen.

While his insurance fraud scheme was ongoing, Cleveland devised a separate scheme to fraudulently obtain COVID relief program funds. On October 14, 2020, he applied for Pandemic Unemployment Assistance (PUA) benefits, claiming he was unemployed because of the COVID-19 pandemic. In reality, Cleveland was unemployed during this time because he was in federal prison.

Cleveland’s crimes continued even after he was released from prison. In August 2020, he commenced a romantic relationship with an adult woman and told her that he needed money to pay his family’s bills. Cleveland then transported the woman across state lines for illegal sexual activity.

Cleveland’s sentencing marks the culmination of a long and complex investigation by the FBI, IRS, and Portland Police Bureau. “We thank the FBI, IRS, and PPB for their efforts in holding Cleveland accountable and securing this 9-year prison sentence,” said Steven T. Mygrant.