PORTLAND, Ore. (KOIN) – A federal grand jury in Portland charged the former president and event director of the Portland Marathon on Thursday for defrauding the charity, Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon announced.

The jury charged 80-year-old Lester V. Smith of Tomball, Texas with wire fraud and tax evasion.

Smith was the president and event director of Portland Marathon Inc. (PMI), a charity organization that used to plan and operate the Portland Marathon. 

According to court documents, Smith was in charge of the organization’s finances and had “sole authority” to approve payments from PMI’s bank account.

From January 2012 to at least April 2018, Smith allegedly made, or told others to make, unauthorized transfers from the charity’s bank account to his personal checking account.

He’s also accused using PMI funds to pay personal credit cards, writing unauthorized checks from the charity payable to himself and using the stolen funds for home remodeling, furniture and shopping sprees.

In one instance, Smith allegedly bought a $60,000 Infinity SUV using a Portland Marathon check.

Overall, Smith is accused of stealing upwards of $1 million from PMI.

Additionally, Smith “substantially underreported” his taxable income to the IRS during at least four tax years, court documents allege.

Smith makes his first federal court appearance March 10, 2022.

This case was investigated by the FBI and IRS Criminal Investigation.

In a statement, Brooksee LLC said “The Portland Marathon is operated by Brooksee, LLC, a leading organization in the Endurance Event Production industry. Brooksee assumed management of the race in late 2018, following the dismissal of Lester Smith from Portland Marathon Inc – the organization that formerly owned and operated the Portland Marathon. Brooksee has never had any communication or dealings with Mr. Smith, as he had already vacated his position at Portland Marathon Inc prior to Brooksee’s acquisition of the race. Brooksee purchased the intellectual and physical assets of Portland Marathon Inc in a private arms-length transaction that had no involvement whatsoever from Mr. Smith.

All business transactions, liabilities, agreements, contracts, partnerships, and other dealings related to the Portland Marathon prior to late 2018 are entirely unrelated to Brooksee and its current management of the Portland Marathon.

This year’s race on 10/2/22 will mark the 50th anniversary of the Portland Marathon. We invite the Portland community to join us in moving beyond the disappointing actions of those formerly involved with the race and instead celebrate the historic milestone of 50 years running in the Rose City.“