Downtown Eugene Inc.

• Russell Carl Brink

• Age 55

• Executive Director

• Association of downtown Eugene

businesses

• Business Improvement District

• Collection of dues

• About 15% from the City of Eugene

(taxpayer funds)

• Funds used for promotion of

Downtown

• Mall Guides – “Red Hats”

• Annual budget of about $500,000

• Volunteer Board of Directors

Management Transition

• 2008 – decision to

transition management

of DEI to the Chamber

• Reduce overhead

expenses

• Contract with Brink to

assist in the transition

• $10,000 per month for

a three month period

The Discovery

• Brink does not perform

during the transition

period as expected

• Contract is terminated

early

• Brink re-locates to New

Hampshire

The Discovery

• During a review of

documents in Brink’s

office a discarded Wells

Fargo Bank statement

for August 2008 is

discovered

• Suspicious ATM cash

withdrawals

Financial Analysis

• DEI’s finances for a one

year period are

examined by a private

CPA

• Discovery of numerous

suspicious transactions

• First report to Police in

April 2009

In the Media

The Investigation

• Discovery of two DEI

Bank accounts

– Wells Fargo Bank

– Bank of America

• ATM cash withdrawals

from local bars and

clubs

• Locations all operated

state video poker

machines

The Investigation

• Cash back from

deposits

• Irregular pay checks to

Brink for varying

amounts

• Direct bank transfers

from both accounts:

– Credit cards

– Cell phone accounts

The Investigation

• Subpoena for Brink’s

personal bank records

– ATM cash withdrawals

– Same bar/video poker

locations

The Investigation

• Subpoena for Brink’s

credit report

– Numerous credit card

debts

The Investigation

• Brink is twice-divorced

• Last divorce in 2006

• DEI records show

increase in ATM

withdrawals and other

payments 2006-2007

The Investigation

• University Small

Business Association

• Safe and Sound

• Eugene in Common

Brink volunteers with these

organizations handling the

finances!

The Investigation

Safe and Sound – a Lane County program funded by grants to

aid at-risk youth.

• Received an Annenberg Foundation

grant for $100,000 in November

2007

• Funds moved in multiple

transactions to DEI bank accounts

• Brink restores these funds to

S&S with a $90,000 personal

check!

The Investigation

• University Small

Business Association

– No missing funds

– Money moving back and

forth through DEI

– Direct relationship with

DEI through Mall Guides

• Eugene in Common

– Operation transferred to

Saturday market

– Brink closed bank

account

– Turned over check and

incomplete box of

records to new

managers

The Investigation

• Interviews with DEI employees

– Bounced paychecks

– Brink asked several to hold paychecks a few days

– Brink sometimes paid bounced check penalties for employees out of his pocket

– DEI always short on money

The Investigation

• Interviews with DEI

board members past

and present

– Relied on Brink’s

statements on DEI

finances

– Repeated requests for

additional documents

– Lack of knowledge about

DEI financial details

Financial Losses

• Approximately

$150,000 in losses from

2005 – 2008

• Statute of limitations

reduces the loss figure

to about $85,000

Grand Jury Indictment

• July 2010 – Brink

indicted for multiple

thefts

• Warrant isn’t entered

until January 2011

Brink in New Hampshire

• Ex-wife identifies

woman in New

Hampshire

• Public records check

shows Brink at the

same address

Brink in New Hampshire Area

• August 2008

Brink in New Hampshire Area

Brink in New Hampshire

• FaceBook

• Yahoo!

• Brink responds to electronic

communications!

Brink in New Hampshire

• Brink is advised of the warrant

• Says he will drive to Eugene in early January 2011

Brink in Jail

• January 19, 2011

– Brink turns him self in to

the Lane County Jail

In the Media (again)

In the Media (again)

Negotiations

• Prison sentence?

• Probation?

• Restitution?

• What are we going to

do with Mr. Brink?

Sentencing

• 120 months prison

• Downward departure to 5 years of probation

• Approximately $85,000 restitution

• $30,000 at time of sentencing

• Probation violation means 120 month sentence imposed

Final News Story

The Players

• DEI Board

• DEI Mall Guides

• Chamber of Commerce

• Safe and Sound

program / Lane County

• University Small

Business Association

• Eugene in Common

• City of Eugene

• Wells Fargo Bank

• Bank of America

• Equifax

• Brink’s 2nd Ex-wife

• Lane County District

Attorney’s Office

• Lane County Jail

• Cell phone carriers,

credit card issuers, etc.

Detective Steve Williams CFCE

Eugene Police Department

Financial Crimes Unit / Arson Unit

777 Pearl Street Room 107

Eugene OR 97401

541-682-2682 office

541-682-8337 fax

Email: steve.e.williams@ci.eugene.or.us