Hatfield courthouse.jpg
A Thomas Jefferson quote adorns the Mark O. Hatfield U.S. Courthouse, which stands 16 stories next to the Justice Center in downtown Portland.
(Bryan Denson/The Oregonian)
The United States seeks $728,165 in restitution from former Portland strip club operator Lawrence G. Owen, who pleaded guilty on Wednesday to charges that he helped lead a conspiracy to promote prostitution and hide cash from the IRS.
Owen acknowledged in his appearance before Senior U.S. District Judge Garr M. King that between 2006 and 2010, he took part in a scheme in which eight cash-only strip clubs hid money from the Internal Revenue Service.
The 73-year-old defendant, wearing striped jail scrubs and ankle chains, was arrested earlier this year after he left his home in La Paz, Mexico, and crossed into California. U.S. prosecutors accuse him of defrauding the U.S. and conspiring to use an interstate facility - ATM machines installed in eight strip clubs - to promote or facilitate prostitution in the establishments.
Owen acknowledged that his conspiracy included two of his stepchildren - Kandace Desmarais, 63, and Gilbert "Mace" Desmarais, 50 - who pleaded guilty last month for their roles in a scheme that also included two sex shops and Pelican Bay restaurant.
IRS agents seized $843,000 in cash during a June 2010 raid on the businesses and homes associated with suspects, then dug through at least 85 boxes of business records. They determined that co-conspirators hid more than $5 million in taxable business receipts from the IRS, "causing a total income tax underpayment of approximately $1,509,000," according to the indictment.
-- Bryan Denson
503-294-7614; @Bryan_Denson