Hagen_Reder_Webster_Bechen.jpg

From left, Jason Hagen, Chelsea Reder, Richard Webster and Donald Bechen

(Multnomah County Sheriff's Office)

Four Portland-area residents pleaded not guilty Wednesday to federal charges in connection with an online methamphetamine distribution ring that authorities say made thousands of dollars shipping the drug for at least a year throughout North America and to Europe and Australia.

An indictment filed in U.S. District Court in Portland alleges Jason W. Hagen, 39, of Ridgefield, Wash; Chelsea L. Reder, 23, of Ridgefield, Wash; Richard E. Webster, 45, of Aloha; and Donald R. Bechen, 39, of Aloha, used black market website Silk Road to sell more than 17 pounds of meth between August 2012 and August 2013 in exchange for virtual currency Bitcoin, which can be exchanged for cash.

The quartet masked their IP addresses and used false identification including driver's licenses to aid in shipping small amounts of the drug at a time through the mail to Oregon, Washington, Montana and Maryland as well as internationally in Canada, Czech Republic, Italy, Australia, the U.K. and other countries, the indictment said.

Bitcoins collected were converted into cash via Western Union, PayPal and other electronic money transfer systems.The group made more than $600,000 in nearly 3,200 transactions, which included 17.5 grams of meth sent to undercover federal agents in Maryland in December 2012 and January 2013, according to the indictment.

In October 2013, the FBI shut down Silk Road, which also enabled the sale of weapons and fraudulent IDs, federal officials said.

Hagen faces charges of conspiracy to distribute methamphetamine via the Internet, conspiracy to export a controlled substance, conspiracy to commit money laundering, international promotion money laundering, international concealment money laundering, domestic concealment money laundering and domestic promotion money laundering. Reder face charges of conspiracy to distribute methamphetamine via the Internet, conspiracy to export a controlled substance and conspiracy to commit money laundering. Webster and Bechen face charges of conspiracy to distribute methamphetamine via the Internet and possession with intent to distribute methamphetamine.

Hagen and Reder were arrested Tuesday after their home in Washington, federal documents said.

Washington County Sheriff's deputies arrested Webster when they served search warrants to three homes in Aloha Tuesday. Deputies also arrested and booked Tina M. Heagle, 46, into the county jail on charges of unlawful delivery and unlawful possession of methamphetamine as well as Robbie D. Shelton, 44, and Lisa E. Jump, 63, on charges of unlawful possession of methamphetamine. Deputies also seized meth, computers and firearms.

Bechen turned himself in to authorities after the sheriff's office announced Tuesday that he was being sought.

Investigators have found evidence that Hagen, the apparent leader of the group, operated under several different names and concealed his wealth in several bank accounts and prepaid cash cards listed under aliases, according to Assistant U.S. Attorney Johnathan Haub in court on Wednesday.

One package intercepted by the government appeared to be a CD in its case, but held an ounce of meth hidden inside the liner notes, Haub said.

Hagen would send meth packages to customers with return addresses that were either fake or belonged to unrelated parties, according to Haub. One package, which was eventually returned to the sender, arrived at a downtown Portland law firm. The mailroom mistook the powder inside as a possible anthrax threat, Haub said, and called police.

Hagen, Webster and Bechen remained in federal custody Wednesday while Reder was released on several court-ordered conditions.

-- Everton Bailey Jr.

-- Helen Jung