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Oregon to Compensate $5M to Children Abused by Relative Amidst Ongoing Complaints

State Reaches $5 Million Settlement Over Child Abuse Case

In a shocking case of abuse and neglect, the state of Oregon has agreed to pay nearly $5 million to three children who suffered severe mistreatment at the hands of their great-aunt, Merlinda Avalos, over five harrowing years. Despite more than 20 complaints from teachers and counselors to child welfare workers and law enforcement, the children remained in her care until 2018, when they were finally rescued.

Avalos, sentenced to over 12 years in prison in January 2019 after pleading guilty to first-degree criminal mistreatment, subjected the siblings—two girls and a boy—to unspeakable horrors, including chronic starvation and physical abuse. Reports from school staff detailed forced punishments, inadequate hygiene, and physical injuries, but state investigations repeatedly deemed the claims "unfounded."

The recent settlement was achieved through a mediation process with the help of retired judges, allocating $1.65 million to each sibling. Tragically, just before learning about the settlement, the eldest sibling died by suicide in New Mexico. His portion will be handled through probate court.

The state Department of Human Services (DHS) has remained silent on potential litigation, as the settlement is pending approval from federal court. The case highlights grave failures in Oregon’s child welfare system, where multiple alerts regarding the children’s well-being were dismissed or inadequately addressed.

In light of ongoing investigations into the case, the state has acknowledged the repeated hotline reports and the inadequacy of its responses.

As the siblings continue to navigate their challenges, concern remains high for their future wellbeing amidst the scars of their traumatic past. The two surviving sisters still reside in New Mexico with their mother, while the impact of their ordeal lingers in their lives.

Maxine Bernstein covers federal court and criminal justice news. Reach her at 503-221-8212 or mbernstein@oregonian.com.

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