Published: Thursday, April 21, 2011, 5:59 PM    

Updated: Thursday, April 21, 2011, 6:35 PM

http://www.oregonlive.com/aloha/index.ssf/2011/04/washington_county_man_arrested_indicted_on_31_counts_of_racketeering_aggravated_theft_money_launderi.html

Authorities arrested and indicted a Washington County man Thursday on charges of racketeering, aggravated theft and money laundering.

Police accused Michael Francis Dimeo, who turns 51 on Friday, of fraudulently obtaining a credit line of more than $2 million for his construction and development business.

The Westside Interagency Narcotics team investigation of Dimeo shows a long pattern of racketeering and mortgage fraud, which began before 2006, according to the Washington County Sheriff's Office.

The district attorney's office indicted him Thursday in Washington County Circuit Court on 31 counts, alleging that Dimeo used false information to obtain and divert credit from Sterling Savings Bank, and two individual victims who invested more than $300,000 in his real estate construction business, MJT Custom Homes, LLC.

Investigators said Dimeo diverted between $500,000 and $1 million. He allegedly used the proceeds to secure additional loans and to buy real estate "for his own personal expenses."

Law enforcement agents served 10 search warrants related to this case in Oregon and one in Colorado Wednesday morning.

Investigators have seized 17 firearms, more than $200,000 and records and computers related to the racketeering charges, according to the Washington County Sheriff's Office. 

Dimeo, who also has a residence in Washington County, was arrested on a warrant Wednesday morning by Boulder County Sheriff's Office in Boulder, Colo. 

One of the locations searched in connection to this case was the Bull Mountain home of Robert E. Baylor III, 30, who was responsible for a legal medical marijuana grow. Although the grow was legal, he was found to be illegally distributing the drugs, the sheriff's office said.

Baylor was arrested on charges of illegal manufacture, possession and distribution of a controlled substance. Authorities seized 45 plants from the house, and Baylor's 13-year-old sister was taken into protective custody.

Investigators also found five pit bulls and a 4-foot alligator in Baylor's home. Washington County Animal Control seized the dogs and a local reptile rescue group took the alligator.

Another search warrant was served at Baylor's business, the Aloha Indoor Hydroponic Garden & Lights store. Evidence there was seized but police made no additional arrests.

The investigation, said sheriff's office spokesman Sgt. David Thompson, is still ongoing and authorities are still processing evidence.