‘Menace’ linked to Ponzi scheme concocts plan to be shot

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Shannon Dean Egeland_1519912373186.PNG.jpg

PORTLAND, Ore. (KOIN) – The United States Attorney’s Office held nothing back when it sought sentencing for a man who they say has been on a crime spree since 2004.

In court documents, Assistant United States Attorney Scott E. Bradford described Shannon Egeland as a “menace to society.” 

The U.S. Attorney’s Office says Egeland was involved in a sophisticated and extensive mortgage-fraud scheme. The Desert Sun scam was centered in Bend, Oregon. Egeland was a high-ranking member of the Desert Sun company. 

To pull off the fraud, Egeland and others created false tax returns, fraudulent financial statements, bogus contracts and leases, false home loan applications and supporting documents, forged documents, and laundered money, according to court documents. 

In 2009, a federal grand jury charged Egeland and others involved in the scheme with a variety of charges, including conspiracy, wire fraud, bank fraud, and money laundering violations.  Egeland pleaded guilty to conspiracy to commit bank fraud and bank fraud. He remained on pretrial release but continued his crime spree, according to Bradford’s sentencing memorandum. 

In 2014, Egeland was sentenced to 10 of in prison for his participation in the mortgage-fraud scheme. The court also ordered $13,438,179.59 in restitution.

 When the first sentence was handed down, the court allowed Egeland  to remain on release and to self-surrender to prison.

“After all that, [Egeland] continued with his illicit behavior, escalating it in terms of callousness, dangerousness, and manipulation,” according to court documents. 

“While on release and waiting to self-surrender, [Egeland] concocted a very risky plan…when he staged a roadside shooting, directing a minor child to shoot him in the legs with a shotgun as part of an elaborate insurance fraud scheme.”

Egeland instructed the child, whose age was not released, to use a 20 gauge shotgun in the staged shooting, according to court documents. 

The child shot Egeland in the lower legs and left the scene. 

Egeland later admitted that he falsely reported the staged roadside shooting to emergency personnel and local law enforcement, claiming he stopped to help a pregnant motorist, when he was hit in the head and shot in the legs.

The motive for the staged shooting was so Egeland could cash in on an insurance policy. 

“The psychological and emotional destruction [Egeland] caused this minor child is unimaginable,” Bradford wrote in court documents. “The ghastly images of that night will forever haunt the minor child. [Egeland] could have died, and the minor child would have been left to deal with the consequences.”

Egeland ended up losing his left leg as a result of the injury. 

The Oregonian / OregonLive reported the minor involved in the shooting was Egeland’s own son. 

On Wednesday, Judge Anna Brown sentenced Egeland to an additional 3.8 years in prison. The new sentence will run consecutive to the current 10 year sentence. 

Ryan T. O’Connoer, Egeland’s criminal defense attorney sought a 2 years sentence. 

The cases were investigated by the Internal Revenue Service – Criminal Investigation. 

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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