Shannon Dean Egeland, 43, was sentenced Wednesday in Portland to three years and 10 months after lying about the circumstances of his being shot in the leg on a deserted road outside Caldwell in 2014.
The day before he was scheduled to turn himself in to serve a 10-year sentence for his role in central Oregon’s largest housing scandal, Egeland hatched a desperate plan. If successful, it would allow him to delay serving his sentence and take advantage of a fraudulent disability insurance policy he had taken out a week earlier.
Egeland directed his then 17-year-old son, Rylan Egeland to shoot him in the leg in the early morning hours of July 31, 2014. Shannon Egeland called 911 just after 2 a.m. and told a Canyon County dispatcher he was attacked after stopping to help a stranded motorist. He falsely told deputies he was struck in the head and then shot.
On Wednesday, U.S. District Judge Anna Brown sentenced Egeland to three years and 10 months on top of the original 10 years in the housing scandal case. Egeland, who appeared in court on a prosthetic leg, pleaded guilty last May to conspiracy to commit wire fraud in the insurance policy scam and for failure to pay more than $90,000 in child support.
Egeland told the judge he had spent the last 3 1/2 years in jail reflecting on his situation and said he realized he was in need of mental health counseling and treatment, the Oregonian newspaper reported.
“What bothers me the most is my son — the pain is on him,” Egeland said, the newspaper reported. “The pain he has shouldn’t be there.”
After Egeland was shot, investigators became suspicious after noting the supposed assailant left behind Egeland’s expensive BMW automobile and didn’t take his wallet or cellphone. They also learned about the insurance policy taken out just days before.
Egeland suffered substantial blood loss and multiple leg fractures from the gunshot. He later lost the leg.
Egeland was a co-owner of Desert Sun Development in Bend. Area banks lost more than $20 million from loans obtained through phony financial statements and business plans.
Company employees and their friends and family members were given financing they didn't qualify for in a scheme where homes were built in the hopes of flipping them for a quick profit that would be shared with the company. When the housing market collapsed, the company's finances did, too.
Many of Desert Sun's residential and commercial projects went unfinished because Egeland and company president Tyler Fitzsimons used loan proceeds to pay for personal expenses, including vehicles, a divorce settlement, extravagant homes and lavish lifestyles, U.S. District Judge Ann Aiken found.
Egeland, Desert Sun's vice president, initially cooperated with investigators and pleaded guilty in 2010 to bank fraud charges. Within six months, however, he breached his plea agreement after he was convicted of delivery of a controlled substance within 1,000 feet of a school and later convicted of perjury after he lied on the stand in his drug trial.
In June 2013, he pleaded guilty to shoplifting at a Fred Meyer store.
Egeland and Fitzsimons, who was sentenced to seven years in prison, were two of 13 people indicted in a case that took more than four years to resolve. The two principals were ordered to pay $22.6 million in restitution, along with office manager Jeremy Kendall.