FBI Investigates Cannabis Conspiracy In Corvallis

CORVALLIS, OR — People associated with a state-licenced cannabis retail business, the Corvallis Cannabis Club, have been implicated in a conspiracy to defraud multiple credit card companies of more than $1 million in a case overseen by the FBI and the Drug Enforcement Administration, as well as the U.S. Postal Inspection Service.

The U.S. Attorney's Office for the District of Oregon on Tuesday announced the arrest of three more defendants in the case, bringing the total number of defendants to nine — all of whom reportedly live in or around Corvallis.

According to U.S. Attorney's spokesman Kevin Sonoff, the nine suspects in the case all "face conspiracy charges related to a credit card 'bust-out' fraud scheme and an interstate marijuana distribution operation funded by the fraud."

"A credit card 'bust-out' is a fraud scheme that begins with perpetrators obtaining credit cards and accumulating large balances," Sonoff explained in a statement. "Payments are then made from co-conspirator bank accounts, reducing the credit card balances and allowing for additional purchases.

"After numerous purchases and payments are made, a co-conspirator would report the payments as unauthorized to their banks. Banks then seek and obtain reimbursement from the credit card companies and deposit those funds back into the co-conspirator’s bank accounts," he continued. "No further payments are made on the credit cards, resulting in losses to those institutions that often exceed a card’s spending limit."

Allegedly defrauding numerous financial institutions, the nine suspects used the money they stole to illegally grow and transport cannabis in Oregon to sell in other states. Additionally, money from the fraud was also used to fund a licensed cannabis retail business — the Corvallis Cannabis Club.

According to the Corvallis Gazette-Times, the Cannabis Club's owners, Mariam Gevorkova and Yeghishe Nazaryan, are facing charges along with Issa J. Barsha, Akmaljon Radjapov, Ararat Manukyan, Lilit Gevorkova, Shokhrukh Tashpulatov, Davit Sukiasyan, and Gevorg Tashchyan.

This case was reportedly investigated with help from Oregon State Police and the Corvallis and Philomath police departments.

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