Published: May. 7, 2024 at 4:18 PM PDT
PORTLAND Ore. (KPTV) - A Tigard man who received compassionate early release from prison during the COVID-19 pandemic, returned to committing crimes days later.
According to court documents, in July 2019, Johnell Lee Cleveland, 42, was sentenced to 57 months in federal prison for distributing fentanyl, possessing a machine gun and money laundering. In the summer of 2020, nineteen months before his original projected release date, Cleveland was granted a compassionate release from prison based on health risks associated with the COVID-19 pandemic.
Less than 30 days after being released from prison, Cleveland and a friend applied for fake insurance coverage on nine pieces of jewelry. Cleveland’s friend filed a false burglary report to the Las Vegas Police Department, claiming her Mercedes-Benz sedan and several personal belongings, including the nine pieces of insured jewelry, had been stolen, about four months after Cleveland and his friend were given an insurance policy worth more than $100,000. Cleveland then quickly reported the supposed jewelry theft to his insurance company to try and get paid.
Cleveland came up with a second plan in October 2020 to steal money from the COVID relief program while his insurance fraud scheme was still happening. He claimed he was unemployed because of the COVID-19 pandemic and he applied for Pandemic Unemployment Assistance (PUA) payments for five months starting in April 2020. Cleveland made bogus statements, but his application was accepted, and he started getting PUA benefits.
Cleveland was actually out of a job during this time because he was incarcerated in federal prison.
Investigators then found out that Cleveland took a woman across state lines for sex trafficking in August 2020. Cleveland told the woman he needed money to pay for their future together as well as launch his business endeavors. Cleveland demanded that the woman travel more regularly and have more commercial sex, becoming more intimidating and mean to her over time. Cleveland, in the meantime, pocketed all of the money the woman made and threatened to lock her in a dog cage, among other cruelties he claimed he had done on other women, according to court documents.
Cleveland used the money to cover up the true nature of his victim’s earnings by using it to pay for a bottled water company’s overhead, such as manufacturing and bottling charges, corporate office space rental in Portland, merchandising, and a monthly retainer with a modeling agency.
Cleveland was arrested in Portland on November 3, 2021. A federal grand jury in Portland delivered an indictment on October 19, 2021, accusing Cleveland and his insurance fraud associate of planning and carrying out wire fraud. Cleveland was then charged a second time on March 10, 2022, for money laundering, unlawful firearm possession as a convicted felon, and force, fraud, and coercion-based sex trafficking.
“In the summer of 2020, Johnell Cleveland received a rare early release from federal prison he could have used as an opportunity to chart a new path away from criminality. Unfortunately, he did the exact opposite, diving headfirst into a remarkable series of crimes,” said Steven T. Mygrant, Chief of the Narcotics and Criminal Enterprises Unit of the United States Attorney’s Office for the District of Oregon. “We thank the FBI, IRS, and PPB for their efforts in holding Cleveland accountable and securing this nine-year prison sentence.”
“Johnell Cleveland has demonstrated a flagrant disregard for the law,” said Douglas A. Olson, Special Agent in Charge of the FBI Portland Field Office. “Even after serving a prison term, Cleveland continued his chronic criminal behavior with money laundering, wire fraud, and transporting an adult victim for illegal sexual activity. The FBI, along with our partners, is dedicated to maintaining the safety of our communities, and with Cleveland behind bars, our community is more secure.”
On Tuesday, a judge sentenced Cleveland to nine years in federal prison and seven years of supervised release. He was also ordered to pay $32,115 in restitution to the Oregon Department of Employment.
If you or someone you know is in danger, please call 911. If you are a human trafficking victim or have information about a potential human trafficking situation, please call the National Human Trafficking Resource Center at 1-888-373-7888 or by texting 233733. Calls and texts are answered 24 hours a day, seven days a week.
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