Federal Grand Jury Returns Indictment Charging Gresham Man with Four Counts of
Bankruptcy Fraud and Obstruction of Justice
Indictment Alleges Defendant Concealed Assets Including Gold Bullion, Collector’s Coins and Thousands of Dollars in Cash
PORTLAND, OR— The U.S. Attorney’s Office announced that Donovan Lindhorst, 68, of
Gresham, Oregon turned himself into authorities on an indictment returned last week by a federal
grand jury in Portland, Oregon. The indictment charges four counts of bankruptcy fraud and one
count of obstruction of justice. Lindhorst made his initial appearance on the charges before U.S.
Magistrate John Acosta this afternoon. If convicted, Lindhorst could face a maximum of five
years on the bankruptcy fraud and twenty years on the obstruction of justice charge.
According to bankruptcy court records, Lindhorst was placed in involuntary bankruptcy
on October 11, 2007 by the Roofers Local 49 Welfare Fund, because he failed to make
appropriate contributions to various employee benefit plans. The indictment alleges that
Lindhorst concealed assets from the United States Trustee during the bankruptcy proceeding,
including cash, a vehicle, gold, coins, silver, transfers of money to his wife and his son, and a
real or equitable interest in real property located in Battle Ground, Washington. The indictment
further alleges that Lindhorst failed to disclose these assets and made material misrepresentations
about their existence and location.
Documents filed in the bankruptcy proceedings further indicate that on August 19, 2008,
the bankruptcy trustee, Amy Mitchell, executed a court-approved inspection of the defendant’s
home, safe deposit boxes and storage units, and located some of the concealed assets, including
approximately $82,000 in cash, collector coins, and gold bullion.
Acting United States Attorney Kent Robinson stated, “The bankruptcy courts are
designed to provide a fresh start to those who have suffered financial set-backs. They cannot be
used to hide from legitimate creditors. Our office prosecutes bankruptcy fraud to protect the
integrity of the judicial system.”
An indictment is only an accusation of a crime, and a defendant should be presumed
innocent unless and until proven guilty.
The case was investigated by Joe LaMonica at the FBI. The case is being prosecuted by
Special Assistant United States Attorney, Michelle Holman Kerin.
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