Woman pleads guilty in Ore. prison food scheme

Summary

On Wednesday, Karen Monem pleaded guilty in U.S. District Court to money laundering charges.

Story Published: Nov 19, 2008 at 9:11 PM PDT

Story Updated: Nov 21, 2008 at 6:02 AM PDT

PORTLAND, Ore. (AP) - The U.S. attorney's office says Oregon's former state prison food manager, charged with taking kickbacks and bribes, has been tracked to his native Iran.

Farhad "Fred" Monem has been a fugitive since 2007. He and his wife, Karen Monem, were indicted in 2007 on charges federal prosecutors say involved $1.3 million in kickbacks payments in return for certain food purchases for the prison system.

Assistant U.S. Attorney Chris Cardani said the FBI is certain Monem is in Iran and apparently is herding sheep. Monem, who left Iran in 1979 to avoid military conscription, was born there.

"By the standards of the judicial system he is a fugitive. Does that mean we're done with him because he's somewhere we can't get a hold of him right now?" said Kenneth Hines, who is overseeing the investigation and who is a special agent in charge for the IRS. "No, we're not done with him."

On Wednesday, Monem's wife, Karen Monem, pleaded guilty in U.S. District Court to money laundering charges.

"They violated the public's trust," Hines said.

In April 2007, four others admitted to paying Monem kickbacks in exchange for food purchases by the Oregon Department of Corrections. They pleaded guilty to bribery and tax fraud.

Prosecutors said that in a plea agreement accepted in federal court in Eugene, Karen Monem gave up more than $750,000 and three expensive vehicles - including a 2006 BMW.

She acknowledged that she deposited $160,000 in cash from the bribery schemes into bank accounts she established under her mother's name, according to the U.S. Attorney's office, and she also said she bought a house on the Oregon Coast.

She faces up to 10 years in prison and a fine of $250,000. Sentencing is scheduled in January.

Karen Monem's attorney did not immediately return call for comment.

Before the couple was indicted in 2007, Farhad Monem was praised for saving the state prison system money by buying distressed and bulk foods on the spot market.

Oregon's per-inmate food costs were among the nation's lowest. But food became the prison system's top complaint after inmates reported they were receiving green bologna, moldy hamburger and food with other problems.

Monem was fired in February 2007.

"If he winds up in a place where we can get a hold of him," Hines said, "he'll come back and he'll face justice."

 

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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