Manager of Oregon Love’s says Arizona gang was blackmailing her into stealing from business

The manager of a Love’s Travel Stop in Oregon claims she was being blackmailed into stealing cash from the business by an Arizona gang. 

37-year-old Lexi Marie Krug was arrested at 4 p.m. on Thursday, February 26th at her home in Baker City, Oregon for the alleged theft of $9,130. 

According to Baker City Herald, Krug is accused of stealing the money across 13 different transactions between November 3rd, 2025 and December 23rd, 2025. Krug allegedly used the “cash recycler” located at the Love’s to steal between $240 and $1,000 each transaction. 

“The cash recycler was explained to me as a digital machine which acted as a bank for the store, a user can log in and deposit or withdraw cash for use in the registers,” Baker City Police officer Josh Horlocker wrote. An official from the Love’s loss prevention department provided documentation about those transactions. 

Krug reportedly signed a statement claiming she stole the cash because she was being blackmailed by members of an Arizona gang, but would not speak about that claim once questioned further by police. 

“She agreed to talk to me but told me she would not talk about being blackmailed or anything about the gang involved.” Horlocker wrote. 

Krug was arraigned on Friday, February 27th Baker County Circuit Court. She was given a conditional release requiring that she remain in Baker County for the next week. She is scheduled to enter a plea on March 30th. She is facing five Class C felony counts of first degree theft, and eight Class A misdemeanor counts of second degree theft.