Attorney General John Kroger issued a statement today announcing that Oregon will join the multi-state agreement with five major financial institutions:

"The Oregon Department of Justice is deeply committed to protecting consumers. In assessing any potential consumer protection settlement, I compare the benefits of the settlement with potential benefits that might accrue in the future if we chose to litigate rather than settle. I have made that assessment in this case, and I am confident that signing this agreement is in the best interest of Oregon consumers.

"This agreement penalizes banks that engaged in wrongful foreclosure practices and brings badly needed relief for distressed homeowners. Oregon is also very interested in pursuing multi-state and independent investigations of illegal mortgage securitization and other practices in the mortgage industry that led to the housing crisis. Because the release in this agreement is narrowly drafted, it will allow Oregon to pursue these matters aggressively. Simply put, I am not confident we could get a better agreement on this limited set of issues if we litigated for several more years.

I want to thank the Obama Administration and Iowa Attorney General Tom Miller for their excellent work on this agreement."

Further details will be released next week when they are final, but highlights of the agreement include:

• An estimated $30 million to the State of Oregon.
• An estimated $100 to $200 million in relief to distressed Oregon homeowners including "underwater" borrowers and homeowners facing foreclosure.
• Tough new servicing standards that protect all homeowners from unfair and unscrupulous servicing practices.

The agreement is not final. It must be submitted to a federal judge for final approval.

If you are a homeowner facing foreclosure you may be entitled to additional assistance. To receive updates as more information becomes available please sign up at www.oregonattorneygeneral.gov/homeowners.

Frequently Asked Questions can be found at www.oregonattorneygeneral.gov/homeowners/faqs.shtml.

Attorney General John Kroger today praised Governor John Kitzhaber's appointment of Associate Attorney General David Leith to the Marion County Circuit Court bench.

"David has done outstanding work under Attorney General Hardy Myers and me," said Attorney General Kroger. "He is a superb lawyer with a deep commitment to the rule of law. He will be an outstanding judge."

During his 18-year career at the Oregon Department of Justice, Leith has built a distinguished record of work on highly complex cases of great significance to the citizens of Oregon, including successfully defending a challenge to the state ban on paying initiative petition circulators on a per-signature basis; defending Oregon's interest in nuclear waste disposal and clean-up at the Hanford Nuclear Facility; and litigating the ongoing dispute over the application of federal Endangered Species Act protections to the Columbia River basin.

In November 2011, federal bank regulators ordered certain mortgage servicers to identify consumers whose homes faced foreclosure between January 1, 2009 and December 31, 2010. These consumers should have received a letter by the end of 2011 indicating that they may request an independent review of their foreclosure. If the review finds that the homeowner suffered financial injury caused by deficiencies in the foreclosure process, they may be eligible for compensation. There is no cost associated with the federal government's Independent Foreclosure Review program.

Unfortunately, scam artists are also contacting Oregon consumers and offering to conduct an "Independent Foreclosure Home Loan Review" or a "securitization review" for a fee. Attorney General John Kroger warns Oregonians to steer clear of independent foreclosure review scams.

• Beware of anyone who wants payment to assist you with an independent foreclosure review or any other homeowner assistance or foreclosure prevention program
• If you receive a letter suggesting that you qualify for compensation or received a grant without having requested an independent review from the federal government, it is a scam
• A government agency will never request your contact information, Social Security Number, banking information, or credit card numbers in an email
• Steer clear of anyone who claims they can guarantee a permanent mortgage modification or halt the foreclosure process

More information can be found at http://www.independentforeclosurereview.com/. If you received a notification about an independent foreclosure review and are unsure of its authenticity, contact the Federal Reserve Board at 888-952-9105 or learn more at What You Need to Know: Independent Foreclosure Review. If you or someone you know is facing foreclosure, there are many free HUD-approved housing counselors around Oregon. Visit http://foreclosurehelp.oregon.gov/ for more information.

The Oregon Department of Justice Crime Victims' Compensation Fund will receive $56 million

Attorneys for Philip Morris today said the tobacco manufacturer will pay the remainder plus interest of a 1999 punitive damage award. As a result, the Oregon Department of Crime Victims' Compensation Fund will receive $56 million.

"This was a historic win for the Department of Justice and for Oregon," said Attorney General John Kroger.

A portion of the money will be needed to fund crime victims programs, but a majority of the money will be available to help the Legislature deal with the budget deficit.

Under Oregon law, 60 percent of punitive damage awards go to the Crime Victims' Compensation Fund.

In 1999, a Multnomah County jury ordered Philip Morris to pay $79.5 million in punitive damages in a lawsuit brought by the family of a Portland cigarette smoker who died of cancer.

After more than a decade of appeals, the Oregon Supreme Court in December upheld Oregon's share of the award.

Last Friday, the Oregon Supreme Court rejected a request by Philip Morris attorneys to reconsider their decision and today an attorney for the company said the tobacco manufacturer will pay.

Attorney General John Kroger leads the Oregon Department of Justice. The Department's mission is to fight crime and fraud, protect the environment, improve child welfare, promote a positive business climate, and defend the rights of all Oregonians.

Gordon Peppers sometimes billed the state up to 529 hours a month claiming to care for elderly and disabled persons

A Lane County man was sentenced today to 13 months in prison for health care fraud.

"Health care fraud is major problem," said Keith Dubanevich, Chief of Staff and Special Counsel to Attorney General John Kroger. "Cracking down on health care fraud is a priority for the Oregon Department of Justice."

Gordon Lamar Peppers Jr., 43, of Lane County, Oregon was convicted today of one count of Making a False Claim for Health Care Payment and five counts of Theft in the First Degree.

Lane County Circuit Judge Karsten H. Rasmussen sentenced Peppers to 13 months prison and ordered him to pay $32,555.85 in restitution.

Peppers, a Medicaid-funded Home Care Worker, claimed that he was caring for four Medicaid recipients and billed the state up to 529 hours a month from July of 2009 to April of 2011. In addition to working as a home care worker, Peppers was employed as a youth soccer coach for several teams. The scam was discovered by a Lane Council of Government office case manager, who referred the matter to the Oregon Department of Justice Medicaid Fraud Unit (MFU) for investigation. An MFU investigation revealed that Peppers worked only a small fraction of the number of hours for which he billed. Peppers received more than $30,000 in fraudulent billing.

Senior Assistant Attorney General Elizabeth Ballard prosecuted the case for the Oregon Department of Justice.

Attorney General John Kroger leads the Oregon Department of Justice. The Department's mission is to fight crime and fraud, protect the environment, improve child welfare, promote a positive business climate, and defend the rights of all Oregonians.