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U.S. Secret Service launches federal investigation after Portland Police arrest counterfeiter passing bills in Parkrose

Counterfeiters working the Mid-county area get nabbed . . .twice

Sean P. Nelson
THE MID-COUNTY MEMO

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Detecting counterfeit money
U. S. Secret Service Resident Agent Ron Wampole told The Mid-county Memo that the advent of computer technology used to copy money has changed the face of counterfeiting today. Maximum penalties for the crime of counterfeiting U. S. money can be up to 15 years in prison or a $250,000 fine, or both, Wampole said.

From 1996 on, the U. S. has been attempting to fight against advancing technologies by issuing new security features designed to thwart advancing technologies used for counterfeiting. Beginning with a new $100 bill, new bills in smaller denominations were introduced at the rate of about one per year.

“Probably the first thing I look at is the portrait on a bill. On a genuine bill the portrait appears three dimensional and very clear. On a counterfeit bill it will be unclear and fuzzy and there will be no fine line printing,” Wampole said.

Another feature of genuine bills is a second stamp on either side of the portrait telling the denomination. This is not a clearly stamped number, but a less visible number, saying for example, USA100.

“There will be a watermark inside the paper of the portrait on the right hand side of the large portrait’s face. This can be held up to a light source to see,” Wampole said, noting a third important feature.

Genuine currency also contains red and blue threads. The portraits and number of the denomination in a newer bill also contain microprinting. A special type of microprinting, which is not easily duplicated by counterfeiters. One example is the $100 bill, which contains a microprinted number in the lower left corner of the bill and microprinting on the portrait.

Counterfeiting is increasing because of the advance of computer technology. Before 1990 there were fewer cases of counterfeiting involving larger quantities of counterfeit money because at that time a counterfeiter had to be a skilled printer, Wampole said.

Since 1990 there have been more cases of counterfeiting but smaller quantities of counterfeit money. Counterfeiting may have become more sophisticated, but so have government methods of detection.
The Portland office of the U.S. Secret Service has launched a federal investigation after a Portland Police Officer arrested a man July 26 in connection with passing a $100 counterfeit bill at a Parkrose tavern.

Joshua Allen Ferguson, 22, came to the Venture Inn, located on 13900 Northeast Sandy Blvd. on July 20 and gave a $100 counterfeit bill to bartender Melinda McGhee, according to Venture Inn owner Karl Kunberger.

McGhee looked at the bill and drew a line across it with a special yellow marking pen, which normally remains yellow unless the money is phony. If the bill were bad, it would turn black. However, this bill went nearly undetected because it had passed the initial test with the marker, and until Kunberger came in on the 21st, counted the money and deposited at his bank. Kunberger said a bank machine determined the 1988 series bill was counterfeit.

McGhee had an idea of who might have passed the bill, but could only use security camera information to narrow it down to 3 or 4 people. When Ferguson returned on July 24 at 5 p.m., McGhee said she believed he was the suspect. She checked his identification, wrote the information down and called 911. He didn’t try to pass any money across the counter but played the video poker machines. Portland Police didn’t show up for 20 minutes and by that time he had already left, Kunberger said.

According to Kunberger, when Portland Police Officer R. L. Jackson showed up and ran Ferguson’s license plate and identification information to see if he had a criminal record, the officer was incredulous when he found Ferguson had been arrested July 22 for counterfeiting, but released because he didn’t have a phony bill on him at the time. On the basis of that previous arrest, police obtained a search warrant and searched Fergusons residence at 16620 South Archer Drive in Oregon City.

“When they went in, they found three copiers and thousands of dollars in counterfeit money,” Kunberger said. Ferguson was arrested, but Portland Police Public Information Officer Sgt. Brian Schmautz would not comment further on the case as it has now become part of a federal investigation.

Resident Agent Ron Wampole of the Portland office of the U.S. Secret Service also refused to comment citing the ongoing investigation. He did give permission for the Memo to use what details we already had but would not elaborate further. In addition to protecting individuals such as the President, the U.S. Secret Service was founded in 1865 to combat counterfeiting and investigate crimes against the U.S. Treasury Department. The Portland office is located at 1001 Southwest 5th Avenue.
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