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Downtown Eugene Inc.
• Russell Carl Brink
• Age 55
• Executive Director
• Association of downtown Eugene
       businesses
• Business Improvement District
• Collection of dues
• About 15% from the City of Eugene
       (taxpayer funds)
• Funds used for promotion of
       Downtown
• Mall Guides – “Red Hats”
• Annual budget of about $500,000
• Volunteer Board of Directors
Management Transition
• 2008 – decision to
  transition management
  of DEI to the Chamber
• Reduce overhead
  expenses
• Contract with Brink to
  assist in the transition
• $10,000 per month for
  a three month period
The Discovery
• Brink does not perform
  during the transition
  period as expected
• Contract is terminated
  early
• Brink re-locates to New
  Hampshire
The Discovery
• During a review of
  documents in Brink’s
  office a discarded Wells
  Fargo Bank statement
  for August 2008 is
  discovered
• Suspicious ATM cash
  withdrawals
Financial Analysis
• DEI’s finances for a one
  year period are
  examined by a private
  CPA
• Discovery of numerous
  suspicious transactions
• First report to Police in
  April 2009
In the Media
The Investigation
• Discovery of two DEI   • ATM cash withdrawals
  Bank accounts            from local bars and
   – Wells Fargo Bank      clubs
   – Bank of America     • Locations all operated
                           state video poker
                           machines
The Investigation
• Cash back from
  deposits
• Irregular pay checks to
  Brink for varying
  amounts
• Direct bank transfers
  from both accounts:
   – Credit cards
   – Cell phone accounts
The Investigation
• Subpoena for Brink’s
  personal bank records
  – ATM cash withdrawals
  – Same bar/video poker
    locations
The Investigation
• Subpoena for Brink’s
  credit report
   – Numerous credit card
     debts
The Investigation
• Brink is twice-divorced
• Last divorce in 2006
• DEI records show
  increase in ATM
  withdrawals and other
  payments 2006-2007
The Investigation
• University Small
  Business Association
• Safe and Sound
• Eugene in Common

  Brink volunteers with these
  organizations handling the
  finances!
The Investigation

Safe and Sound – a Lane County program funded by grants to
aid at-risk youth.


• Received an Annenberg Foundation
grant for $100,000 in November
2007
• Funds moved in multiple
transactions to DEI bank accounts
• Brink restores these funds to
S&S with a $90,000 personal
check!
The Investigation
• University Small             • Eugene in Common
  Business Association           – Operation transferred to
  – No missing funds               Saturday market
  – Money moving back and        – Brink closed bank
    forth through DEI              account
  – Direct relationship with     – Turned over check and
    DEI through Mall Guides        incomplete box of
                                   records to new
                                   managers
The Investigation
• Interviews with DEI
  employees
   – Bounced paychecks
   – Brink asked several to
     hold paychecks a few
     days
   – Brink sometimes paid
     bounced check penalties
     for employees out of his
     pocket
   – DEI always short on
     money
The Investigation
• Interviews with DEI
  board members past
  and present
  – Relied on Brink’s
    statements on DEI
    finances
  – Repeated requests for
    additional documents
  – Lack of knowledge about
    DEI financial details
Financial Losses
• Approximately
  $150,000 in losses from
  2005 – 2008
• Statute of limitations
  reduces the loss figure
  to about $85,000
Grand Jury Indictment
• July 2010 – Brink
  indicted for multiple
  thefts
• Warrant isn’t entered
  until January 2011
Brink in New Hampshire
• Ex-wife identifies
  woman in New
  Hampshire
• Public records check
  shows Brink at the
  same address
Brink in New Hampshire Area




• August 2008
Brink in New Hampshire Area
Brink in New Hampshire
• FaceBook       • Brink responds to electronic
• Yahoo!           communications!
Brink in New Hampshire
• Brink is advised of the warrant
• Says he will drive to Eugene in early January 2011
Brink in Jail
• January 19, 2011
  – Brink turns him self in to
    the Lane County Jail
In the Media (again)
In the Media (again)
Negotiations
•   Prison sentence?
•   Probation?
•   Restitution?
•   What are we going to
    do with Mr. Brink?
Sentencing
     • 120 months prison
     • Downward departure to 5
       years of probation
     • Approximately $85,000
       restitution
     • $30,000 at time of
       sentencing
     • Probation violation means
       120 month sentence
       imposed
Final News Story
The Players
• DEI Board               • Wells Fargo Bank
• DEI Mall Guides         • Bank of America
• Chamber of Commerce     • Equifax
• Safe and Sound          • Brink’s 2nd Ex-wife
  program / Lane County   • Lane County District
• University Small          Attorney’s Office
  Business Association    • Lane County Jail
• Eugene in Common        • Cell phone carriers,
• City of Eugene            credit card issuers, etc.
Detective Steve Williams CFCE
Eugene Police Department
Financial Crimes Unit / Arson Unit
777 Pearl Street Room 107
Eugene OR 97401

541-682-2682 office
541-682-8337 fax
Email: steve.e.williams@ci.eugene.or.us

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Fraud Case Success Story

  • 2.
  • 3. • Russell Carl Brink • Age 55 • Executive Director
  • 4. • Association of downtown Eugene businesses • Business Improvement District • Collection of dues • About 15% from the City of Eugene (taxpayer funds) • Funds used for promotion of Downtown • Mall Guides – “Red Hats” • Annual budget of about $500,000 • Volunteer Board of Directors
  • 5.
  • 6. Management Transition • 2008 – decision to transition management of DEI to the Chamber • Reduce overhead expenses • Contract with Brink to assist in the transition • $10,000 per month for a three month period
  • 7. The Discovery • Brink does not perform during the transition period as expected • Contract is terminated early • Brink re-locates to New Hampshire
  • 8. The Discovery • During a review of documents in Brink’s office a discarded Wells Fargo Bank statement for August 2008 is discovered • Suspicious ATM cash withdrawals
  • 9. Financial Analysis • DEI’s finances for a one year period are examined by a private CPA • Discovery of numerous suspicious transactions • First report to Police in April 2009
  • 11. The Investigation • Discovery of two DEI • ATM cash withdrawals Bank accounts from local bars and – Wells Fargo Bank clubs – Bank of America • Locations all operated state video poker machines
  • 12. The Investigation • Cash back from deposits • Irregular pay checks to Brink for varying amounts • Direct bank transfers from both accounts: – Credit cards – Cell phone accounts
  • 13. The Investigation • Subpoena for Brink’s personal bank records – ATM cash withdrawals – Same bar/video poker locations
  • 14. The Investigation • Subpoena for Brink’s credit report – Numerous credit card debts
  • 15. The Investigation • Brink is twice-divorced • Last divorce in 2006 • DEI records show increase in ATM withdrawals and other payments 2006-2007
  • 16. The Investigation • University Small Business Association • Safe and Sound • Eugene in Common Brink volunteers with these organizations handling the finances!
  • 17. The Investigation Safe and Sound – a Lane County program funded by grants to aid at-risk youth. • Received an Annenberg Foundation grant for $100,000 in November 2007 • Funds moved in multiple transactions to DEI bank accounts • Brink restores these funds to S&S with a $90,000 personal check!
  • 18. The Investigation • University Small • Eugene in Common Business Association – Operation transferred to – No missing funds Saturday market – Money moving back and – Brink closed bank forth through DEI account – Direct relationship with – Turned over check and DEI through Mall Guides incomplete box of records to new managers
  • 19. The Investigation • Interviews with DEI employees – Bounced paychecks – Brink asked several to hold paychecks a few days – Brink sometimes paid bounced check penalties for employees out of his pocket – DEI always short on money
  • 20. The Investigation • Interviews with DEI board members past and present – Relied on Brink’s statements on DEI finances – Repeated requests for additional documents – Lack of knowledge about DEI financial details
  • 21. Financial Losses • Approximately $150,000 in losses from 2005 – 2008 • Statute of limitations reduces the loss figure to about $85,000
  • 22. Grand Jury Indictment • July 2010 – Brink indicted for multiple thefts • Warrant isn’t entered until January 2011
  • 23. Brink in New Hampshire • Ex-wife identifies woman in New Hampshire • Public records check shows Brink at the same address
  • 24. Brink in New Hampshire Area • August 2008
  • 25. Brink in New Hampshire Area
  • 26. Brink in New Hampshire • FaceBook • Brink responds to electronic • Yahoo! communications!
  • 27. Brink in New Hampshire • Brink is advised of the warrant • Says he will drive to Eugene in early January 2011
  • 28. Brink in Jail • January 19, 2011 – Brink turns him self in to the Lane County Jail
  • 29. In the Media (again)
  • 30. In the Media (again)
  • 31. Negotiations • Prison sentence? • Probation? • Restitution? • What are we going to do with Mr. Brink?
  • 32. Sentencing • 120 months prison • Downward departure to 5 years of probation • Approximately $85,000 restitution • $30,000 at time of sentencing • Probation violation means 120 month sentence imposed
  • 34. The Players • DEI Board • Wells Fargo Bank • DEI Mall Guides • Bank of America • Chamber of Commerce • Equifax • Safe and Sound • Brink’s 2nd Ex-wife program / Lane County • Lane County District • University Small Attorney’s Office Business Association • Lane County Jail • Eugene in Common • Cell phone carriers, • City of Eugene credit card issuers, etc.
  • 35. Detective Steve Williams CFCE Eugene Police Department Financial Crimes Unit / Arson Unit 777 Pearl Street Room 107 Eugene OR 97401 541-682-2682 office 541-682-8337 fax Email: steve.e.williams@ci.eugene.or.us