Properties in Marion and Polk counties tied to interstate drug trafficking organization
Half of the 16 Oregon properties tied to an interstate drug trafficking organization were located in Marion and Polk counties, according to the U.S. Attorney's Office for the District of Oregon.
The Portland office announced this week the forfeiture of 14 of those properties worth more than $5.7 million. One property listed in court documents was not seized, and the owner of another agreed to pay the federal government $400,000 instead of having their property forfeited.
A 14-month investigation led by the Drug Enforcement Administration (DEA) and Oregon State Police uncovered a black market marijuana operation led by Fayao "Paul" Rong, 53, of Houston, Texas. Several other law enforcement agencies assisted during the investigation, including the Marion and Polk County Sheriff's Offices.
According to court documents, Rong purchased numerous houses in Oregon using several different identities and, with others in his organization, used the properties to grow and process marijuana and prepare it for transport to states where its use remains illegal.
Investigators estimate the organization, between Aug. 30, 2020, and Aug. 30, 2021, trafficked black market marijuana with an approximate street value of $13.2 million.
Federal search warrants led to the seizure of 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.
Rong pleaded guilty to conspiracy to manufacture marijuana and was sentenced on July 19, 2023, to 30 months in federal prison and five years' supervised release. No one else was charged, according to a spokesman for the U.S. Attorney's Office for the District of Oregon.
The DEA uses asset forfeiture to attack the financial structure of drug trafficking and money laundering groups worldwide. Assets subject to seizure include cars, cash, real estate, or anything of value used to commit a drug crime or bought with drug proceeds.
The proceeds from the sale of forfeited assets go to the Justice Department's Assets Forfeiture Fund (AFF), and are used to restore funds to crime victims and for a variety of other law enforcement purposes.
Six of the eight forfeited properties in Marion and Polk counties have sold in the past year, and another is pending. The other remains for sale. Several of the listings noted the properties were being sold "as is" and "on behalf of the USMS," or U.S. Marshals Service.
Court documents included photographs of the houses and marijuana grows on each property.
Here's what we know about the properties in Marion and Polk, based on court, county assessor and real estate records:
6525 Rickreall Road, Independence
The property featured a 2,638-square-foot house with shop and outbuildings on 5.08 acres.
It sold for $735,000 on April 28, 2023.
5145 Red Prairie Road SE, Sheridan
The property featured a 2,553-square-foot house with multiple outbuildings on 20.23 acres.
It sold for $730,000 on July 31, 2023.
17344 Powers Creek Loop NE, Silverton
The property featured a 3,435-square-foot house with large shop buildings on 6.44 acres.
It sold for $625,000 on March 28, 2024.
19090 Highway 22, Sheridan
The property featured a 2,343-square-foot house with an arena-sized outbuilding on 16.4 acres.
It is listed on Redfin for $585,000, with sale pending as of March 27, 2024.
7575 Blanchard Road, Sheridan
The property featured a 1,521-square-foot house with a more than 7,000-square-foot shop on 1.89 acres.
It sold for $430,000 on May 2, 2023.
20250 Highway 22, Sheridan
The property featured a 2,333-square-foot house with a large shop on 11.18 acres.
It is for sale with a listing price $378,400.
2880 Kings Valley Highway, Dallas
The property featured a 1,628-square-foot house with a four-car garage on eight acres.
It sold for $365,000 on March 6, 2023.
8850 Red Prairie Road, Sheridan
The property featured a 1,951-square-foot manufactured house with a 150x60 shop on 10 acres.
It sold for $350,000 on Sept. 22, 2023.
Other forfeiture properties
31131 Old Santiam Highway, Lebanon: Listed for $639,000.
1305 Clark Mill Road, Sweet Home: Sold for $275,000, date unknown.
74471 Palm Creek Road, Clatskanie: Sold for $215,000 on May 24, 2023.
74853 Palm Creek Road, Clatskanie: Sold for $150,000 on Jan. 24, 2023.
22197 Swedetown Road, Clatskanie: Listed for $456,950, sale pending.
91692 Taylorville Road, Westport: Sold for $133,000 on Feb. 20, 2023.
Other properties tied to Oregon investigation
4148 SE 79th Avenue, Portland: Property owner settled for $400,000 in lieu of forfeiture.
91844 Rulyville Road, Clatskanie: Property was never forfeited.
Capi Lynn is a senior reporter for the Statesman Journal. Send comments, questions and tips to her at clynn@statesmanjournal.com, and follow her work on Twitter @CapiLynn and Facebook @CapiLynnSJ.
This article originally appeared on Salem Statesman Journal: Drug trafficking organization tied to properties in Oregon
