The federal government has confiscated millions of dollars in properties that were used by drug traffickers, including two in Linn County.
All told, $5.7 million worth of properties around Oregon were forfeited in connection with an interstate cannabis trafficking organization, according to a news release from the U.S. Attorney's Office, District of Oregon.
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Of the 14 forfeited properties — which were used for illegal indoor cannabis growing, distribution and sales to other states — one is in Lebanon, and another is in Sweet Home.
The Lebanon property, 31131 Old Santiam Highway, is .89 acres and has a real market value of $491,020, according to tax records. The Sweet Home property at 1305 Clark Mill Road is .56 acres and has a real market value of $311,700.
From an unknown time until September 2021, the properties were reportedly used as illegal grow houses by an organization under the leadership of Fayao “Paul” Rong, 53, of Houston, the release states.
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After he pleaded guilty to conspiracy to manufacture marijuana, Rong was sentenced to 30 months in federal prison and five years of supervised release in July 2023.
The Lebanon property was owned by 31131 Investment LLC, which in turn was owned by Daron Liang. Investigators reportedly linked the location to other properties and conspirators in the drug organization.
The Sweet Home base was owned by T&Y 6409 Investments Inc. in October 2019, according to records. Investigators reported that Rong provided around $276,000 to buy the property and identified T&Y 6409 Investments LLC owner Chi Teng Liao as Rong’s business partner.
Along with the Linn properties, Rong’s organization operated in Clatsop, Columbia, Linn, Marion, Polk, and Yamhill counties.
Rong bought numerous residences in Oregon using several different identities, and with his organization, used them to grow and process cannabis, and prepare it for transport to states where it remains illegal, according to court documents.
Natalie Wight, U.S. Attorney for the District of Oregon, said in the news release that the yearslong effort to forfeit properties used by the Rong organization demonstrates a commitment to holding drug traffickers accountable and mitigating the damage from criminal organizations on communities.
In a 12-month period beginning August 2020, Rong’s organization trafficked more than $13.2 million dollars in black market cannabis, the release states.
In September 2021, a coordinated operation led by the Drug Enforcement Administration and Oregon State Police targeted Rong’s organization, according to the release, which states federal, state, and local law enforcement executed search warrants on 25 Oregon residences as well as Rong’s Houston home.
Investigators seized nearly 33,000 marijuana plants, 1,800 pounds of packaged marijuana, 23 firearms, nine vehicles, $20,000 in money orders and more than $591,000 in cash, the release states.
“The Oregon State Police is committed to disrupting and dismantling drug trafficking organizations operating within our state,” said Lt. Tyler Bechtel, Oregon State Police, in the release. “Our priorities include safeguarding Oregon’s natural resources and mitigating the impact illicit marijuana has on them.”
The takedown followed a 14-month investigation initiated by the state police after the agency learned of excessive electricity use at the various properties, the release states, in several instances resulting in transformer explosions.
Multiple citizen complaints corroborated law enforcement’s belief that Rong was leading a large black market cannabis operation, according to the release, which states DEA agents arrested Rong in February 2022 in Houston.
Rong told law enforcement, according to court documents, he periodically met with a loosely organized group of Chinese people at the Hong Kong Café in Portland, describing an informal collective that exchanged information on how to best start and run illegal indoor cannabis grows in Oregon.
For example, Rong said if one of the group members needed an electrician, contractor or grower, others would provide names to consider for the job, court documents state.
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Once the court issues final forfeiture judgments on each property, the federal government becomes the legal owner, and through the U.S. Marshals Service, will prepare them for sale, according to Kevin Sonoff, public affairs officer with the U.S. Attorney's Office.
After sales, the government pays any outstanding lender balances, and what remains is deposited into the Justice Department’s Assets Forfeiture Fund, Sonoff said via email. The funds are directed to crime victims and a variety of law enforcement purposes.
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Cody Mann covers public safety and justice in Linn and Benton counties. He can be contacted at 541-812-6113 or Cody.Mann@lee.net. Follow him on Twitter via @News_Mann_.