Medford, OR – A Josephine County man has been sentenced to 24 months in federal prison for his involvement in large-scale illegal marijuana manufacturing and filing false tax returns. Steven Shirley, 52, the president and minister of Earth Peoples Park (EPP), a nonprofit organization, was also ordered to pay restitution totaling over $300,000.
In addition to his prison sentence, Shirley will serve five years of supervised release. He was ordered to repay $290,291 to the Internal Revenue Service (IRS) for unpaid taxes and $12,896 to the Bureau of Land Management (BLM) for environmental damage caused by illegal marijuana grows on public lands.
Shirley’s criminal activities began in 2012 when he started purchasing properties in Cave Junction, Oregon. Over the years, he expanded his holdings, leasing the properties to third parties and using the profits to acquire more land. By 2019, Shirley had accumulated 21 properties in Josephine County, generating at least $400,000 annually from these leases. However, his business ventures took a criminal turn when he began using these properties for illegal marijuana cultivation.
In September 2019, members of the Josephine Marijuana Enforcement Team (JMET) discovered large-scale, unlicensed marijuana grows on 16 of Shirley’s properties. A subsequent search in October of that year led to the seizure of over 15,000 marijuana plants and nine firearms. Investigators also found that some of the grows had occurred on BLM lands, further compounding the environmental harm caused by Shirley’s operations.
Despite previous law enforcement interventions, Shirley continued his illegal activities. In June 2021, additional search warrants were executed by BLM agents in collaboration with JMET. This resulted in the discovery of more marijuana manufacturing operations and firearms on EPP properties, including those located on BLM land.
Meanwhile, the IRS conducted an investigation into Shirley’s tax filings and the nonprofit status of EPP. It was revealed that EPP did not qualify as a religious organization and had been used as a front for a for-profit land management business. Further scrutiny of Shirley’s tax records uncovered that he had underreported more than $1 million in lease income between 2015 and 2018, leading to the $290,000 in unpaid taxes.
“This case highlights the commitment of law enforcement to disrupting illegal activities that harm public lands and cheat the tax system,” said Natalie Wight, U.S. Attorney for the District of Oregon. “Shirley exploited his nonprofit status to financially benefit from criminal activities, and his sentence reflects the seriousness of his offenses.”
IRS Special Agent in Charge Adam Jobes echoed this sentiment, adding, “Shirley’s actions showed a clear abuse of nonprofit exemptions and illegal drug operations. This sentence sends a message that criminal behavior disguised as a religious or nonprofit activity will not go unpunished.”
Shirley was charged in August 2023 with illegally manufacturing marijuana and filing false tax returns. He pleaded guilty in March 2024, and his sentencing brings an end to a lengthy investigation into his illicit activities.
The case serves as a reminder that the abuse of nonprofit status for personal financial gain, combined with illegal drug manufacturing, will be met with significant legal consequences.