A driving force behind a $6 million conspiracy to sell an Oregon Department of Transportation chainsaw on eBay was sentenced Friday to 12 years in prison after hiding his tracks for more than 15 years.
John W. Tipton, 61, pleaded guilty to 36 counts, including first-degree aggravated larceny, computer crime, and official misconduct.
Tipton spent the money on an expensive BMW car, remodeled his home on Lake Oswego, and vacationed in Europe, Senior Deputy District Attorney Rusty Amos said.
Beginning in 2004, Tipton used a state credit card to purchase steel blades and other chainsaw parts from half a dozen suppliers in Portland and Gresham, and then sprinkled the illicitly obtained merchandise with legitimate purchases. , was auctioned in secret, prosecutors said.
The plan came to light in January 2020 after Tipton was accused of workplace harassment and management launched an unrelated investigation at the Lawnfield Maintenance Station in Clackamas.
“ODOT had total trust in him, but unfortunately they trusted him too much,” Amos said. “If someone hadn’t come forward, Mr. Tipton would probably have continued to steal.”
According to court records, Tipton was convicted of credit card fraud in the late 1990s and served a year in prison.
In 2013, Tipton contacted his boss, Frank C. Smede, who was a landscape manager at the time.
“They went out for coffee and he said, ‘This is foolproof,'” Amos said in an interview.
Smead began approving some of the fake purchase notes. The duo tipped policy analyst Autumn S. Arndt in 2016.
Amos said Tipton continued to make unnecessary purchases, but shared some of the stolen equipment with an accomplice, who resold it. I left it to you.
After discovering a financial discrepancy, investigators obtained GPS records from Tipton’s ODOT truck and spied Tipton buying saw parts and returning to work empty-handed. A stakeout of Tipton’s house revealed that he had either unloaded the saw parts in his garage or placed them in Sherwood’s storage container.
Detective Alex Monarch, who investigated the incident with the Oregon State Police, said, “They weren’t criminals, but[surveillance]was very effective in positively confirming that he was stealing.” said.
ODOT eventually identified $7.8 million in excess spending related to the Lawnfield Maintenance Station, but Amos said state agencies routinely failed to track when supplies were moved between stores. Therefore, it was not possible to determine whether some purchases were illegal. Investigators believe, at least, that the $6 million purchase was fake.
Ebay records show that Tipton made $850,000 selling saw parts at discounted prices between 2009 and 2020, while Smeads made $345,000 and Ardnt about $170,000.
All four defendants came to apologize to a crowd of frowning ODOT workers who sat in the courtroom gallery during the two-hour hearing.
“Sorry for being greedy. I’ve ruined my trust with you,” said Tipton.
Through tears, Ardont said:
By October 2020, all three employees had resigned after ODOT announced it was under investigation for the theft.
Clackamas County Circuit Court Chief Judge Michael Wetzel found Tipton eligible for good conduct, paid time off, service time merit, and transitional leave, but pointed to his previous convictions and ruled that he was He refused to allow me to participate in an alternative incarceration program.
The judge allowed all possible mitigation programs and alternative prisons for the other three defendants. Interim leave allows an inmate to spend the final four months of her sentence in a half-baked home, while alternative incarceration programs usually require an additional few months of rehabilitation outside the prison walls. You can do.
“You are an adult and responsible for your actions,” Wetzel told several defendants.
60-year-old Frank Smede was sentenced to seven years in prison after pleading guilty to 27 counts, including aggravated theft, official misconduct and computer crimes. Arndt, 42, was sentenced to five years in prison after pleading guilty to 27 charges.
Marta M. Smead, 60, pleaded guilty to 13 counts, including aggravated theft and computer crime, and was sentenced to three and a half years in prison.
The defendant was then handcuffed and taken out of the courtroom.
