Josephine County Man Sentenced for Illegal Marijuana Production and Tax Fraud

Medford, Oregon- A Josephine County man was sentenced to 24 months in federal prison last Wednesday for operating illegal marijuana grows and filing false tax returns, according to the U.S. Attorney’s Office for the District of Oregon.

Steven Shirley, 52, of Cave Junction, Oregon, was also sentenced to five years of supervised release and ordered to pay restitution of $290,291 to the IRS for unpaid taxes and $12,896 to the Bureau of Land Management (BLM) for environmental damage caused by his marijuana operations.

Court documents reveal that Shirley, beginning in 2012, utilized his role as president and minister of Earth Peoples Park (EPP), a nonprofit religious organization, to acquire and lease properties in Josephine County. By 2019, Shirley and EPP owned or co-owned 21 properties, generating at least $400,000 annually in lease revenue.

Investigators discovered that Shirley leased these properties for large-scale, unlicensed marijuana cultivation. In 2019, the Josephine Marijuana Enforcement Team (JMET) identified 16 properties involved in these operations. Law enforcement executed search warrants, seizing over 15,000 marijuana plants, nine firearms, and uncovering evidence that BLM lands were also being used for cultivation. Shirley was found to have employed and directed staff to grow and sell marijuana illegally.

Despite the raids, Shirley continued operating marijuana grows. In June 2021, additional search warrants revealed ongoing illegal activity on EPP-owned properties and BLM lands. Agents seized more firearms during this operation.

Further investigation by IRS agents revealed that EPP did not meet the criteria for a religious organization under IRS regulations. Shirley used EPP as a for-profit land management company and intentionally underreported lease income by more than $1 million between 2015 and 2018, resulting in substantial unpaid taxes.

Shirley was charged in August 2023 and pleaded guilty in March 2024 to illegally manufacturing marijuana and filing false tax returns.

“This case highlights the misuse of nonprofit exemptions to conduct illegal activities and evade taxes,” said U.S. Attorney Natalie Wight. Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office, added, “This sentencing affirms that Shirley’s actions were not those of a spiritual leader but of someone seeking personal profit.”

The investigation involved the BLM, IRS Criminal Investigation, and JMET, with support from multiple state and federal agencies. The case was prosecuted by Assistant U.S. Attorney Judith R. Harper.