A woman from Damascus, Oregon, Sharon Neal, appeared in federal court on Monday following her indictment for filing twenty fraudulent small claims in circuit courts across Oregon. The alleged scheme resulted in Neal receiving at least $190,000 through garnished funds from victims.
Neal faces five counts of mail fraud. According to the indictment, between August 2018 and November 2022, she allegedly created a plan where she filed multiple fraudulent small claims on behalf of fictitious companies. These claims were made against victim companies falsely accused of providing low-quality products and services or failing to provide them. However, these companies reportedly had no business dealings with Neal's fake entities.
As part of the alleged scheme, Neal submitted certificates of service along with signed certified mail return receipts that falsely certified the claim and summons were served via certified mail. In reality, empty envelopes were sent to these victim companies, leaving them unaware of any pending claims. This lack of awareness led to default judgments and writs of garnishments being issued in Neal's favor. She would then present these writs to a victim’s bank and collect checks for the judgment amounts. Victims typically discovered these actions only after their banks notified them about garnished funds.
During her initial appearance before a U.S. Magistrate Judge today, Neal pleaded not guilty and was released pending a four-day jury trial set for February 18, 2025.
If convicted, Neal could face up to 20 years in federal prison along with three years’ supervised release and a fine up to $250,000.
The FBI conducted the investigation into this case which is being prosecuted by Andrew T. Ho, Assistant U.S. Attorney for the District of Oregon.
It is important to note that an indictment serves as an accusation only; defendants are presumed innocent until proven guilty.