Major Fraud Arrests in Klamath Falls

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KLAMATH FALLS, Ore. — Law enforcement officials say this is possibly one of the biggest fraud cases in Southern Oregon history. Law enforcement in Klamath Falls held a press conference on Thursday announcing a major fraud investigation involving more than 60 people.

About 30 arrests were made Thursday morning, and law enforcement is seeking at least 30 more suspects. The investigation, named “Operation Gold Card”, revealed the fraud involved people using their Oregon Trails Card at a store front called “Mi Pueblo” on East Main in Klamath Falls. Funds would be charged to people’s cards, but instead of getting food, the shop was allegedly giving people cash.

Officials say the business fraudulently took in up to $20,000 per month for about 3 years. More than 20 federal agents, Jackson and Klamath County D.A., U.S. Attorney’s Office and DHS were all involved in this investigation.