Portland Foils $6.7 Million Scam Targeting Bull Run Water Project, Seizes Funds from Fake Vendor

PORTLAND, Ore. — Local and federal law enforcement agencies are investigating fraud after a person posing as a vendor was paid over $6.7 million by the City of Portland on the $2 billion Bull Run Filtration Project near Gresham. The City identified the fraud, and the funds have been seized.

On March 21, the City paid a New York law firm $6,748,680.68 on behalf of a vendor who turned out to be a scammer on the Bull Run water filtration project.

After suspicious activity came to the FBI’s attention, the banks involved in the transaction stopped payment and alerted the City. In a news release, the City indicated that they took several steps, including filing a lawsuit in New York to support the recovery of the funds.

The law firm indicated they were also victims of the fraud and cooperated with the City of Portland and others to secure the funds.

The money is now in the custody of the U.S. Marshals Service, and as a result, the City intends to discontinue the lawsuit in New York.