District of Alaska
Press releases recorded for this federal judicial district.
Anchorage Man Arrested for Making Threatening Statements Against Police OfficerRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that, early this morning, FBI Special Agents in New York City arrested Tyler Bateman, 27, of Anchorage, for making threatening statements against an Anchorage business and an Anchorage Police Officer.
Bateman has been charged with two counts of threatening interstate communications. According to the Criminal Complaint, it is alleged that, on Feb. 26, 2018, Bateman threatened via text messages to shoot and bomb an Anchorage business. Later that same day, it is further alleged that Bateman threatened, via social media, to shoot and poison an Anchorage Police Officer and “several other people.”
The FBI and APD conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Jonas M. Walker.
A Criminal Complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Felon Who Shot at Police Officers and Killed Police Dog Sentenced to 10 Years in Federal PrisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Almando Abarca, 26, of Palmer, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess, to serve 10 years in federal prison for being a felon in possession of a firearm.
Abarca was already a convicted felon (Burglary in the Second Degree) in September 2016 when he was involved in an incident where he fled from Palmer police officers at a high rate of speed in a vehicle towards Anchorage. At approximately Mile 36 of the Glenn Highway, Abarca slowed the vehicle down and jumped out with a handgun in his hand. The Palmer police officers had been joined by this time by an Alaska State Trooper and his police canine “Helo.” As he was being pursued on foot, Abarca turned and shot Helo several times and exchanged gunfire with the officers. The officers returned fire at Abarca and were able to wound and disable him. Abarca was then found in possession of a .40 caliber semi-automatic handgun. The officers were unhurt, but Helo later died from the gunshot injuries inflicted by Abarca.
Abarca was indicted by a federal grand jury in October 2016 for being a felon in possession of a firearm. He was separately charged by a state grand jury that same month with two counts of attempted murder, two counts of assault, and one count of felony destruction of a police dog. Abarca plead guilty to the federal charge in October 2017, but proceeded to trial on the state charges in late January 2018. He was convicted by a state trial jury on all counts, and is awaiting sentencing on the state convictions.
In imposing the 10-year sentence on Abarca, Judge Burgess noted that the sentence was the statutory maximum sentence which he could impose and that the applicable federal sentencing guidelines actually called for a much higher sentence. Judge Burgess told Abarca that he was “lucky to be alive and lucky that the court was limited as to the sentence which it could impose”.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Palmer Police Department, and the Alaska State Troopers. This case was prosecuted by Assistant U.S. Attorney Joseph Bottini.
Anchorage Man Sentenced for Cyberstalking Former GirlfriendRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage man was sentenced in federal court yesterday for cyberstalking his former girlfriend while on release after being charged with physically assaulting the same victim.
Jeffery Ray Ward, 41, of Anchorage, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess, to serve 40 months in prison, followed by a three-year term of supervised release. Ward previously pleaded guilty on Sept. 27, 2017, to one count of cyberstalking in violation of a domestic violence protective order. Ward had been previously convicted by the Municipality of Anchorage of the domestic violence offense involving the same victim.
According to court documents, on April 16, 2017, APD received a 911 call from the victim reporting that Ward, her ex-boyfriend, had violated his conditions of release in the pending Municipal domestic violence case, where the court had ordered that Ward have no contact with the victim. While that case was pending, Ward threatened to put the victim’s “dirt on blast” before hacking her social media accounts and posting nude, sexually explicit pictures of the victim for hundreds of her friends and family to see.
Furthermore, the victim received an automated email from the social media site stating that the email address associated with her account had been changed from her own to one belonging to Ward, making it impossible for the victim to regain control and change the password back. The investigation further revealed that Ward had also impersonated the victim via social media direct messaging to engage in sexually explicit communications with the victim’s prior boyfriend.
Ward has a history of domestic violence offenses in the State of Alaska and elsewhere. At sentencing in this matter, Judge Burgess advised Ward that “to call this a serious crime is an understatement,” and stated that he was “concerned about protecting other women” in the community from Ward.
“Our highest priority is prevention of violent crime,” said U.S. Attorney Schroder. “While a significant amount of our efforts go toward drug trafficking related and firearms based violent crime, domestic violence is an insidious threat to Alaskan families. Where appropriate, the U.S. Attorney’s Office will bring charges to hold domestic abusers accountable.”
“APD Cyber Detectives work diligently to ensure the safety of all Anchorage residents online,” said APD Cyber Crimes Lieutenant Josh Nolder. “We are pleased to partner with the US Attorney’s office to prosecute Mr. Ward.”
Patrol Officers and Detectives with the Cyber Crimes Unit of the Anchorage Police Department (“APD”) conducted the investigation leading to the successful prosecution of this case. This case was developed through cooperation with the Municipality of Anchorage Prosecutor’s Office. Assistant U.S. Attorney Adam Alexander prosecuted the case.
Elder Fraud Cases Are a Priority Nationally and Locally for the Justice DepartmentRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that as part of the Elder Fraud Initiative launched by the Department of Justice, he has appointed Assistant U.S. Attorney Aunnie Steward as the Elder Fraud Coordinator for the District of Alaska.
The District of Alaska has prosecuted several defendants targeting aging and vulnerable victims including most recently United States v. Floyd Jay Mann prosecuted by AUSA Steward. Mann was sentenced in December to 10 years in prison for defrauding more than 15 victims in Dillingham, Alaska. Mann’s first victim in that case was an elderly man dying of cancer. Mann convinced the elderly victim that he was due to receive a multi-million dollar lawsuit settlement from a pharmaceutical company. Mann falsely told the victim he needed help paying court costs and medical bills before the settlement would be released. Mann led the elderly victim to believe he would share millions of dollars of his settlement if the elderly victim helped him cover costs. The elderly victim gave his life savings and monthly social security payments to help Mann. The elderly victim died of cancer waiting for the payout promised. Mann moved on to the elderly victim’s friends and family in Dillingham targeting them with the same scheme. Mann obtained almost $3 million from his fraudulent scheme. Several victims lost homes and retirement savings.
As part of the Elder Fraud Initiative, AUSA Steward has coordinated with the FBI, U.S. Postal Inspectors, the State of Alaska Office of Elder Fraud and Assistance, and Senior Corps to identify cases appropriate for prosecution and to coordinate outreach to vulnerable groups.
Attorney General Jeff Sessions announced yesterday that he has made combatting Elder Fraud a priority for the Department of Justice. Attorney General Sessions was joined in the announcement yesterday by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
With this Initiative, the Justice Department is targeting schemes such as the following:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
- “Advance Fee Schemes,” which promise big payouts in the future if victims provide financial assistance up front.
These cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
Elder fraud complaints may be filed with the FTC at www.ftc.gov/media/71474 or at 4877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Municipal, State, and Federal Partnership Targets Car ThievesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a federal grand jury in Anchorage has returned a series of indictments over the last few months charging individuals for various alleged firearms offenses arising from a number of vehicle thefts investigated by the Anchorage Police Department (APD).
The U.S. Attorney’s Office for the District of Alaska and its law enforcement partners have combined resources to address Anchorage’s car theft problem. In the past few months, federal gun charges have been filed against 10 individuals, all of whom reside in Anchorage, in connection with a number of stolen vehicle investigations:
- Jesse Contreras, 24, is currently charged with being a felon in possession of a firearm on two different occasions. Contreras was stopped by APD while in a stolen vehicle, and has prior state felony convictions for coercion and assault;
- Christopher Curtin, 30, is currently charged with being a felon in possession of a firearm. Curtin had burglar and auto theft tools in a vehicle, and has a prior state felony conviction for misconduct involving a controlled substance;
- Timothy Fyffe, 35, is currently charged with being a felon in possession of a firearm. Fyffe has a previous vehicle theft conviction with the state of Alaska, and has additional state charges pending for theft and vehicle theft;
- Jarsis Howard, 40, is currently charged with being a felon in possession of a firearm. Howard has prior felony convictions for misconduct involving a controlled substance, theft, and failure to register as a sex offender, among other offenses. Howard has additional state charges pending against him for vehicle theft and failure to register as a sex offender;
- Cody Iverson, 23, is currently charged with being a felon possession of a firearm. Iverson has a prior felony conviction for robbery, and has additional state charges pending for robbery and theft;
- Poly Lomu, 21, is currently charged with being a felon in possession of a firearm. Lomu has prior felony convictions for theft and vehicle theft, and has additional state charges pending for vehicle theft;
- Todd Margerum, 47, is currently charged for being a drug user in possession of a firearm, and for possession of a stolen firearm. Margerum was stopped in a stolen vehicle and has additional state charges pending for vehicle theft;
- Antoni Peralta, 31, is currently charged with being a felon in possession of a firearm. Peralta has prior felony convictions for vehicle theft and robbery;
- Navy Tauinaola, 35, is currently charged with being a felon in possession of a firearm on three different occasions. Tauinaola has prior felony convictions for failure to stop at direction of officer and a felony DUI, and has additional state charges pending for vehicle theft;
- Tony Tuaato, 23, is currently charged with being felon in possession of a firearm and possession of an unregistered firearm. When Tuaato was stopped, APD recovered a sawed off shotgun. Tuaato has prior felony convictions for vehicle theft and unlawful taking or driving of vehicle, and has additional state charges pending for attempted murder.
If convicted, they each face a maximum sentence of ten years in prison, a $250,000 fine, and three years of supervised release.
In addition, Roy Naughton, 39, of Anchorage, was indicted in December 2017 on federal carjacking charges. If convicted, Naughton faces a maximum sentence of 25 years in prison, a $250,000 fine, and five years of supervised release.
These cases were investigated by APD’s Property Crime Unit, with the cooperation and assistance from the Alaska Department of Law, FBI and ATF. Several are being handled by a Special Assistant U.S. Attorney, who is an Anchorage Municipal Prosecutor on loan to the U.S. Attorney’s Office to prosecute firearm, drug, and violent crime offenses that occur in Anchorage.
These cases were brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. Alaska U.S. Attorney Bryan Schroder has made partnerships with state and local police departments and prosecutors a cornerstone of this strategy. The above cases are the result of this partnership.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Juneau Sex Offender Sentenced for Receipt of Child PornographyRead the Press Release
Anchorage, Alaska –U.S. Attorney Bryan Schroder announced today Jim Wayne Thornhill, 40, of Juneau, Alaska, was sentenced on Friday, February 16, 2018 to 262 months (21 years and 10 months) in prison, followed by a lifetime term on supervised release, for receipt of child pornography. On September 22, 2017, a federal jury found Thornhill guilty after a five-day trial before Chief U.S. District Court Judge Timothy M. Burgess.
According to the evidence presented at trial, the Federal Bureau of Investigation (FBI) had received a report of harm that had been forwarded from the National Center for Missing and Exploited Children (NCMEC) and the Internet Crimes Against Children (ICAC) to the Juneau Police Department. The FBI was called in to assist in the investigation. The FBI traced the phone call to a local employer and subsequently identified, Jim Wayne Thornhill, as a person of interest. At Thornhill’s initial contact, Thornhill denied having a cell phone and admitted making the phone call the FBI was investigating. Thornhill is a convicted sex offender, who was convicted by the State of Alaska for Sexual Abuse of a Minor in the Second Degree in 2007, where the defendant had repeatedly sexually abused a child from the age of 6 to11.
The FBI learned that Thornhill’s employer, located a cell phone and handwritten lists with search terms and internet addresses that were associated with child pornography. FBI interviewed Thornhill several days later. In that interview, the defendant admitted to writing the handwritten lists of search terms and admitted ownership of the cell phone, and admitted to accessing the Internet with the cell phone between September and November 2014 to look for adult and child pornography that were “just naked kids.” Based on this information, the FBI obtained a search warrant for the defendant’s cell phone, which revealed at 581 images of child pornography that were downloaded between the dates of November 3, 2014 through December 25, 2014. Many of the images were of young pre-pubescent children engaged in sexually explicit conduct, including images that depicted a adult male sexually assaulting a toddler.
The FBI investigated this case, with assistance from the Juneau Police Department. Assistant United States Attorney Jack Schmidt, located in the Juneau Branch Office, prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood, U.S. Marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Wasilla Man Convicted of Attempting to Sexually Molest 8-Year-OldRead the Press Release
Anchorage, Alaska - U.S. Attorney Bryan Schroder announced today that a federal jury in Anchorage convicted Justin Raymond Nekeferoff, 33, of attempted enticement of a minor and possession of child pornography. The jury found the defendant not guilty of distribution of child pornography.
Nekeferoff was found guilty after a six-day trial before U.S. District Judge Timothy M. Burgess of the District of Alaska. Sentencing is scheduled for May 9, 2018, at 11:00 a.m. in Anchorage, Alaska. The maximum penalty for attempted enticement of a minor is not less than 10 years’ imprisonment and up to life. The maximum punishment for possession of child pornography is up to 10 years’ imprisonment. Both convictions carry maximum fines of up to $250,000, terms of supervised release of five years to life, and a $100 special assessment.
According to evidence presented at trial, in 2015 a witness told law enforcement that Nekeferoff expressed desire to have sex with children and spoke frequently about prior acts of molestation that he had committed against others, including a five- and 15-year-old girl. The witness provided law enforcement with multiple text messages from Nekeferoff in which he stated that he liked to look at “lil girls in the stores,” and expressed his desire to perform sex acts with a “young girl” between the ages of “4-8.” Nekeferoff was arrested when he arrived at a Wasilla motel in order to meet a mother and her eight-year-old daughter for the purpose of having sex with the child. In truth, the “mother” was an FBI agent and the child was fictional. Nekeferoff brought icing and other items to the motel room to use as sex objects with the child. Located in the defendant’s wallet at the time of his arrest was an SD card that contained multiple images of child pornography.
In a statement to police at the time of his arrest, the defendant said that he went to the motel to have sex with the fictional mother and her daughter, he thought about having sex with kids “all the time,” and molested other children previously. The defendant said that he searched for and downloaded child pornography in an effort to control his attraction to children.
This case was investigated by the Federal Bureau of Investigation, and the Anchorage Police Department, Crimes Against Children Unit (CACU).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fairbanks Sex Offender Sentenced for Receipt of Child PornographyRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced today that Tommy Hanson, 54, of Fairbanks, was sentenced on Friday, Feb 2, 2018, to serve 20 years in prison, followed by a lifetime term of supervised release, for the receipt of child pornography. In November 2017, a federal jury found Hanson guilty after a three-day trial before U.S. District Judge Ralph R. Beistline.
According to evidence presented at trial, in 2007, Hanson pled guilty to the possession of child pornography and had been sentenced to eight years in prison. In that case, Hanson admitted to the use of newsgroup binaries to receive thousands of images of depicting child sexual exploitation, and then backing those images up to CD-ROMS.
Following his release from prison in 2012, Hanson was subjected to a term of supervised release. As a condition of his release, Hanson was not to possess computers without the approval of the probation office, and if found in possession of any computers, the devices were subject to search.
United States Probation Officers searched Hanson’s home in North Pole, Alaska, on Oct. 12, 2016. During the search, the probation officers found Hanson in possession of an unauthorized computer and an external hard drive. A forensic search of the computer and hard drive by the FBI revealed thousands of images of child pornography that Hanson had downloaded between 2012 and 2016 using internet newsgroups, after his release in the prior case. The FBI discovered additional forensic evidence linking Hanson to the computer and external hard drive, such as chat logs. In the chat logs, Hanson told a friend that he was not allowed to have the computer but that he was not concerned about being searched by the “feds” given the remote location of his home.
The United States Probation Office and the FBI conducted the investigation leading to the successful prosecution of this case. Assistant U.S. Attorneys Adam Alexander and Kyle Reardon prosecuted the case.
This prosecution is part of the Department of Justice ongoing Project Safe Child (PSC) initiative. In May 2006, DOJ launched PSC, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, PSC combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, identify and rescue victims and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For more information about PSC, please visit www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Fairbanks Couple Sentenced for Producing and Distributing Child PornographyRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced today that a Fairbanks couple has been sentenced in federal court for producing and distributing child pornography.
Christopher Duane Davis, 32, of Fairbanks, was sentenced today by U.S. District Judge Ralph R. Beistline, to serve 35 years in prison, followed by a lifetime term of supervised release. Charity Noel Germain, 27, of Fairbanks, was previously sentenced on Dec. 15, 2017, to serve 22 years in prison, followed by a lifetime term of supervised release. Davis previously pleaded guilty on Nov. 3, 2017, to production and distribution of child pornography. Germain previously pleaded guilty on April 27, 2017, to conspiracy to produce child pornography.
According to court documents, beginning in June 2015, Davis and Germain conspired to produce visual depictions of minors engaged in sexually explicit conduct. In furtherance of the conspiracy, Germain and Davis gained the trust of families with small children, whom they would then babysit. While babysitting for the children, Davis and Germain would sexually abuse the children and record the abuse. Davis would then share the images and videos with other pedophiles on the internet.
Davis and Germain became the subject of a federal investigation after an undercover law enforcement agent working with the Australian government identified Davis’s profile on a foreign-based photo-sharing site known to host images of child pornography. From Nov. 23 through Dec. 16, 2016, during email communications with the agent, Davis described having access to children through his girlfriend and to engaging in sexual acts or producing sexual explicit images of these children while his girlfriend was baby-sitting them.
A search warrant on Davis’s email account revealed instances where he distributed images of child pornography to others. Located on Davis’s computer were multiple child pornography images and videos, which Davis and Germain had produced. The images showed Germain was present with the victims during production, posing the child, and assisting Davis with the sexual exploitation of the child.
“We have a responsibility to protect the most vulnerable in our society,” said U.S. Attorney Schroder. “The 35 year sentence issued today by Judge Beistline first and foremost will protect Alaskan children from this predator. Moreover, it sends a strong signal to the community that dedicated law enforcement officers, like the HSI agents in this case, are working countless hours to track down and prosecute child sexual offenders.”
“A cyber monster’s perverse desires often turn into physical victimization and a child’s worst nightmare,” said Brad Bench, special agent in charge of HSI Seattle. “While we are satisfied with this sentence for the horrific crimes committed by this defendant, we must remember the young victims who are often left with permanent psychological, physical and emotional scars. This sentence is a testament to the dedicated HSI agents who aggressively hunt down these abusive pedophiles and bring them out of the shadows to receive the judgement they deserve.”
Homeland Security Investigations (HSI) conducted the investigation leading to the successful prosecution of this case. Assistant U.S. Attorney Kyle Reardon prosecuted the case.
This prosecution is part of the Department of Justice ongoing Project Safe Child (PSC) initiative. In May 2006, DOJ launched PSC, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, PSC combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, identify and rescue victims and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For more information about PSC, please visit www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Kenai Man Sentenced for Possession of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a Kenai man was sentenced in federal court in Anchorage for possessing images of child pornography.
Phillip Miller, 27, of Kenai, was sentenced today by Chief U.S. District Judge Timothy M. Burgess, to serve six years in prison, followed by a lifetime term of supervised release. Miller previously pleaded guilty on Sept. 25, 2017, to possession of child pornography – access with intent to view.
According to court documents, on May 18, 2016, Miller became the subject of a federal investigation after law enforcement officials received images depicting child sexual exploitation, which were shared by Miller using the Bittorrent peer-to-peer file-sharing network. A search warrant was executed on Miller’s Kenai residence, where law enforcement had seized Miller’s computer. Located on Miller’s computer were approximately 36 images depicting the sexual exploitation of children under 12 involving bestiality, sadism, and bondage. The investigation also revealed that Miller had used search terms to find images of child sexual exploitation to access and view, and that those search terms included the phrase “Toddlercon Incest” among others.
Miller was previously adjudicated in 2005 for the sexual abuse of several children. At sentencing in this matter, Judge Burgess noted the seriousness of the images in this case and of his prior conduct.
The Federal Bureau of Investigation (“FBI”) conducted the investigation leading to the successful prosecution of this case in cooperation with state and local agencies comprising the Alaska Internet Crimes Against Children Taskforce (ICAC). Assistant U.S. Attorney Adam Alexander prosecuted the case.
This prosecution is part of the Department of Justice ongoing Project Safe Child (PSC) initiative. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, identify and rescue victims and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Ketchikan Man and Woman Indicted on Federal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a Ketchikan man and woman have been indicted on federal drug trafficking charges.
Michael Anthony Welker, 54, and Mandy Elaine Bacus a/k/a Mandy Elaine Peters, 35, both of Ketchikan, were named in the indictment charging them with drug conspiracy.
According to court records, between June 1, 2017, and Sept. 15, 2017, Welker and Bacus allegedly sold methamphetamine, lysergic acid diethylamide (LSD), cocaine, and heroin on numerous occasions to an undercover informant from their residence located in Ketchikan. Welker and Bacus were subsequently arrested by law enforcement officers on Jan. 23, 2018, in Ketchikan. Their Ketchikan residence is now subject to forfeiture.
Welker and Bacus were arraigned yesterday in Juneau federal court and were ordered detained pending trial, which has been scheduled for April 2, 2018.
The Ketchikan Police Department (“KPD”) and the Drug Enforcement Administration (“DEA”) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Jack Schmidt.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Former Bookkeeper Sentenced to 3 Years in Federal Prison for Embezzling over $750,000 and for Submitting False Tax ReturnsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage woman was sentenced by U.S. District Judge Sharon L. Gleason to serve three years in federal prison for embezzling more than $750,000 from her employer, and for submitting false tax returns to the IRS.
Raenette K. Yangson, 42, of Anchorage, was employed between 2006 and 2012 as a bookkeeper for Western Construction and Equipment, an Anchorage business. Soon after joining the company, Yangson began creating multiple false checks drawn on the business’ bank account which were made payable to herself or to her husband. Yangson then forged the signatures of owners of the business on the checks and made false entries into the business’ computer accounting program to make the checks appear to be legitimate payments to vendors. Yangson continued the scheme for more than six years. Yangson also submitted false income tax returns to the IRS for several years by failing to report the embezzled income.
In addition to the three-year prison sentence, Judge Gleason ordered Yangson to pay $206,987 in restitution to the IRS for taxes owed on the stolen money. The exact amount of the restitution Yangson owes to Western Construction and Equipment will be determined at a later hearing.
Judge Gleason commented that Yangson had seriously abused the trust which Western Construction and Equipment had placed in her and described her actions as a calculated effort to steal money from the victims. Judge Gleason also noted that Yangson’s embezzlement from a relatively small business had seriously affected the company’s financial well-being during the period of time that she was stealing money.
“IRS Criminal Investigation is committed to investigating individuals who use their employers as personal piggy banks," said Darrell Waldon, Special Agent in Charge, Seattle Field Office. “Ms. Yangson spent years enriching herself and her husband by stealing from her employer and from honest Americans who pay their tax obligations. The IRS and the U.S. Attorney’s Office will continue to vigorously pursue criminals like Ms. Yangson and hold them accountable for their actions.”
IRS Criminal Investigation, the FBI, and APD conducted the investigation leading to the successful prosecution of this case.
Alaska Man Sentenced for Attempting to Solicit Sex from MinorRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Alaska man was sentenced in federal court in Anchorage for using the internet to attempt to solicit sex from a minor.
Herbert Barr, 51, who resided in a rural Alaska village, was sentenced today by U.S. District Judge Sharon L. Gleason, to serve 10 years in federal prison, followed by a 20-year term of supervised release. Barr previously pleaded guilty on Oct. 25, 2017, to attempted sexual exploitation of a minor – coercion and enticement of a minor.
According to court documents, over the course of about one week in July 2017, Barr sent numerous text messages to a minor trying to persuade her to allow him to sexually abuse her. After rejecting Barr’s offer, the minor promptly notified her parents, who then contacted the Alaska State Troopers at the Nome Post.
The Alaska State Troopers began investigating Barr, who continued to send dozens of text messages trying to persuade the minor to allow him to perform illegal sexual acts. Barr went so far as offering money and suggesting she meet him outside his home. Law enforcement officers swiftly prevented Barr from completing the sex abuse he tried to commit because of the minor’s prompt report to her parents.
At the sentencing hearing, the Court heard from the victim, her mother, and the Bering Straits Native Corporation, which spoke on behalf of the community. Judge Gleason found the offense to be particularly serious because Barr had offered the minor money in exchange for sex.
U.S. Attorney Schroder commends the Alaska State Troopers, in particular the Nome Post and the Technical Crimes Unit, the Federal Bureau of Investigation, and the Nome District Attorney’s Office for the investigation and assistance leading to the successful prosecution of this case.
Six Former Ravn Alaska Employees Arrested for Stealing Mail from U.S. Postal ServiceRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that six former Ravn Alaska employees have been charged by a federal grand jury for stealing mail, including Apple computers destined for village school districts, from the U.S. Postal Service. One defendant was arrested Friday, the other five defendants were taken into custody today.
Congress Lepou, 29, Breadoflife “Presley” Faiupu, 36, Hubert Barte, 37, Paulo Maae, 24, Harold Velicaria, 35, and Rogelio “Roger” Daquis, 49, all of Anchorage, were named in the indictment charging them with conspiracy, mail theft, and possession of stolen mail.
During the course of the conspiracy, the defendants were employed by Ravn Alaska. Ravn Alaska employees utilized a company vehicle, including the “supervisor truck” to pick up mail from the U.S. Postal Service Processing and Distribution Center in Anchorage, and transfer it to Ravn airplanes in Anchorage for delivery to Alaskan villages. From March 2015 to April 2017, approximately 343 Apple computers went missing after being scanned in by the U.S. Postal Service Distribution Center, but before arriving at the U.S. post offices in the Alaskan villages. The majority of those computers were en route to school districts in Alaska villages.
According to the indictment, beginning in at least March 2015 and continuing through April 13, 2017, Lepou and Faiupu used Ravn Alaska’s supervisor truck – intended for the transportation of mail from the U.S. Postal Service facility to Ravn airplanes for delivery to villages – to take articles stolen from the mail and drive them to the Ravn employee parking lot to load into their personal vehicles. Lepou and Faiupu worked with the other defendants to find buyers for the articles stolen from the mail. The defendants shared the proceeds from the sales. The total approximate value of items stolen from the mail during the timeframe of the conspiracy is $489,000.
The U.S. Postal Service Office of Inspector General and the U.S. Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Oregon Woman Sentenced for Embezzling Approximately $300,000 from a Tribal Organization in AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Oregon woman has been sentenced for embezzling approximately $300,000 from the Skagway Traditional Council, which is a federally recognized tribal organization.
Delia Commander, 64, of Oregon, was sentenced today by U.S. District Judge Sharon L. Gleason to serve 18 months in prison, followed by three years of supervised release. Commander was also ordered to pay restitution in the amount of $297,731. Commander pleaded guilty to one count of embezzlement from an Indian tribal organization.
According to court documents, from at least 2010 to 2014, Commander embezzled approximately $300,000 from the Skagway Traditional Council’s funds for her personal use. During that time, Commander was employed as the Tribal Administrator for the Village of Skagway, dba Skagway Traditional Council (“STC”), where she received $45,000 annually, plus benefits and free housing, as compensation. Commander was responsible for day-to-day operations of the tribe, including managing tribal housing, environmental and waste management, and managing finances for the STC tribal government, among other things. During each year of Commander’s tenure as Tribal Administrator for STC, the tribe received approximately $150,000 from Bureau of Indian Affairs (BIA) for operating funds.
Commander embezzled the money by using the tribal credit card to make unauthorized cash advances at casinos and other locations, and by making unauthorized personal purchases with tribal funds. The unauthorized expenditures included paying for personal travel including a trip to Hawaii for herself and a family member, online university courses, personal credit card bills, personal vehicle maintenance, and personal shopping, among other things. Over time, the Tribal Council became suspicious of Commander because of her frequent travel and lack of financial documents provided to Council members. Commander resigned from STC in 2014 without prior notice, which is when her embezzlement was discovered.
At sentencing, Judge Gleason noted that such a large amount to be embezzled from such a small organization was an aggravating factor. The Judge also noted that the system of federal funding for tribal organizations relies heavily on trust, which Commander had violated.
The Department of Interior Office of Inspector General, assisted by the FBI, conducted the investigation leading to the successful prosecution of the case.
Chugiak Man Sentenced for Threatening Smithsonian Institution Employee by EmailRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a Chugiak man was sentenced for emailing threats to a local Smithsonian Institution employee.
Brandon McElroy, 33, of Chugiak, Alaska, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess, to five years of probation with conditions that McElroy undergo mental health and substance abuse treatment programs. He was also ordered to not comment about the case, directly or indirectly, on social media. McElroy previously pleaded guilty on Dec. 14, 2016, to one count of transmitting threatening communication in interstate commerce.
According to court documents, McElroy worked for several years on a project filming rural Alaska for the Smithsonian Institution’s Arctic Studies Center. As the project began to wind down, McElroy became upset and sent a Smithsonian employee several threatening emails beginning on Feb. 1, 2016. In one email, McElroy stated “I very seriously thought about driving to your house and killing you tonight” and in another “This wasn’t going to go away until one of us was dead.” At sentencing, Judge Burgess noted that McElroy’s threats placed the Smithsonian employee in fear. Even after his guilty plea, McElroy made several social media posts which falsely and intentionally impugned the Smithsonian employee’s integrity and professionalism.
Prior to sentencing, McElroy was ordered by the court to undergo a mental health assessment with the Federal Bureau of Prisons.
U.S. Attorney Schroder commends the Federal Bureau of Investigation, Anchorage Police Department, and Municipal Prosecutors Office for their efforts in the investigation and prosecution of this case.
California Man Sentenced for Identity Theft, Conspiracy as Part of Scheme to File False Income Tax ReturnsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a California man was sentenced for his scheme to use illegally obtained personal identity information of others to prepare false W-2’s and then file false individual income tax returns in order to get refunds due to others.
Demetrick Ruffin, 43, from Los Angeles, CA, was sentenced by Chief U.S. District Judge Timothy M. Burgess to serve 95 months (just under 8 years) in prison, followed by a three-year term of supervised release. As a condition of his supervised release, Ruffin is prohibited from accessing, by any means, the internet. A later hearing will determine the amount of restitution to be paid by Ruffin to the victims. Ruffin previously pleaded guilty on April 12, 2017, to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
According to court documents, Ruffin conspired with others to obtain identity information, such as names, dates of birth, and social security numbers, which were then used to prepare false IRS W-2 Forms that contained fabricated wage and withholding amounts. The co-conspirators then took the identity information and falsified documents to tax return preparation services in Anchorage, Eagle River, and Palmer, Alaska, as well as in Los Angeles and Orange County, California, to have tax returns prepared and electronically submitted to the IRS.
The false returns requested refunds totaling between $1,400 and $8,600. In some instances, Ruffin and his co-conspirators used the stolen identity information to claim that the “taxpayers” had dependent children that they did not, in fact, have. By claiming additional dependents, the co-conspirators were able to increase the amount of refunds that the returns generated. In many cases, the defendants applied for refund anticipation loans and had the fraudulently obtained tax refunds loaded onto stored value cards allowing them instant access to the money even if the IRS later rejected the falsely filed returns.
To date, the following co-conspirators have been sentenced as part of this case:
- Jameane Bolton-Williams, of Los Angeles, CA, was previously sentenced to 82 months in prison and ordered to pay restitution in the amount of $91,927.65;
- Joe Douglas, of Los Angeles, CA, was previously sentenced to 57 months in prison and ordered to pay restitution in the amount of $43,043.55;
- Lucille Stansberry, of Los Angeles, CA, was previously sentenced to 36 months and one day in prison and ordered to pay restitution in the amount of $48,619.95.
In imposing the sentence Judge Burgess noted that because of the seriousness of the offenses and the need for deterrence of others, the sentence was at the top of the Sentencing Guideline range. Most importantly Judge Burgess stated, the public needed to be protected because Ruffin had committed part of his crimes while incarcerated in Los Angeles, “undeterred even by jail bars.” Because of the rampant increase in stolen identity tax refund fraud via the internet, Judge Burgess ordered Ruffin to have no access to the internet while on court supervision after serving his sentence.
“The sentence handed down today recognizes the arrogance of Mr. Ruffin’s conduct,” said Assistant Special Agent in Charge Brian Payne of IRS Criminal Investigation. “Mr. Ruffin demonstrated a brazen disregard of the United States tax system and caused immeasurable damage to his victims. Together with the U.S. Attorney’s Office, IRS Criminal Investigation will continue to identify and investigate those who defraud the American taxpayers by stealing identities and filing false tax returns.”
U.S. Attorney Schroder commends the IRS Criminal Investigation for the investigation leading to the successful prosecution of this case.
Anchorage Man and Woman Indicted on Federal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man and woman have been indicted on federal drug trafficking charges.
Wilton Eugene Toney, 62, and Denita Ann Love, a/k/a Denita Ann Solitaire, 58, both of Anchorage, were named in the indictment charging them with drug conspiracy.
According to the charging documents, on Jan. 12, 2018, law enforcement officers seized two FedEx parcels located at the FedEx main hub in Anchorage. A search warrant revealed the parcels contained approximately 13 pounds of methamphetamine and 3 pounds of heroin. On the next day, law enforcement officers conducted a controlled delivery of the parcels to the lobby of the Barratt Inn Anchorage Airport, and observed Toney receive the parcels and take them to his room.
Law enforcement officers converged on and secured the hotel room, where Toney and Love were the only occupants of the room at the time. A search warrant executed on the hotel room resulted in the seizure of additional amounts of methamphetamine and heroin, digital scales, and three firearms. The Alaska State Troopers estimate the approximate combined street value of the seized drugs is $1.2 million.
The Alaska State Troopers (“AST”) and the Drug Enforcement Administration (“DEA”) conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Truck Thief Sentenced for Possession of Unlawful WeaponRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Timothy Keith Igou, 31, of Anchorage, was sentenced today by U.S. District Judge Timothy M. Burgess to 37 months in prison, for being a felon in possession of a firearm.
On Dec. 9, 2016, Alaska State Troopers (“AST”) attempted to stop Igou while he was driving a stolen Ford F-250 pickup truck in Palmer, Alaska. Igou fled from AST leading to a high-speed chase down Matanuska Road, which ended when he drove onto an ATV trail and crashed the truck into a tree. Igou ditched the truck and proceeded to run off through the woods. Prints in the snow led AST to a stolen National Park Service trailer with stolen license plates, where Igou was found hiding and was ultimately arrested.
Inside the stolen truck was a loaded handgun. Located on his cell phone was a photograph of a person’s hand, taken inside a Ford F-250 truck, holding the handgun. Forensic evidence showed that Igou had used his phone to search the internet for information related to the gun’s serial number. The phone also contained numerous Craigslist entries related to the sale of handguns. In one text message from Oct. 20, 2016, the Igou wrote, “Can u givehim [sic] my gun[?]”
Also located in the stolen truck were a glass pipe with a white residue of methamphetamine, dozens of vehicle keys (one set of about a dozen Ford keys and set of about a dozen GMC / Chevy keys located in the console), and two license plates (one that was registered to the stolen truck).
Igou had previously been convicted of a felony drug crime and a misdemeanor crime of domestic violence. As someone convicted of a felony, as well as a misdemeanor crime of domestic violence, Igou was prohibited from possessing firearms.
At sentencing, Judge Burgess noted that the defendant was a danger to the community, and that his sentence was intended to both protect the public and deter the defendant from future criminal acts. Judge Burgess said that the defendant’s conduct was “felony stupid.” Judge Burgess pointed out that while the defendant’s dangerous acts did not result in any injuries, “this could have been much more serious to you than it turned out to be.” “The type of behavior you’re involved in, people end up dead,” said Judge Burgess.
The case was the product of an investigation by the National Park Service, the Alaska State Troopers, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kyle Reardon prosecuted the case.
Anchorage Man Sentenced for Selling Large Quantities of Oxycodone Out of His Auto Repair ShopRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man was sentenced in federal court in Anchorage for selling large quantities of Oxycodone out of his auto repair shop.
Spresim Alimi, 36, of Anchorage, was sentenced today by Chief U.S. District Judge Timothy M. Burgess, to serve 136 months in prison. Alimi previously pleaded guilty on July 7, 2016, to possession with intent to distribute Oxycodone and agreed to forfeit $88,146 and a 2016 Dodge Viper.
According to court documents, Alimi owned and operated Alpina Auto, an auto repair shop which he used as a front to distribute large quantities of Oxycodone at $35 per pill. After search warrants were executed on Alimi’s residence, business, and storage unit, he was found to be in possession of 4,363 Oxycodone pills, almost $90,000 in cash, and a 2016 Dodge Viper, which had been purchased shortly before his arrest. The street value of the 4,363 Oxycodone pills was over $150,000. The investigation further revealed that Alimi would sometimes use the credit card machine at Alpina Auto to conduct narcotics transactions with buyers. Alimi was also found in possession of a number of firearms, several of which were reported stolen.
The Drug Enforcement Administration (DEA), Alaska State Troopers (AST), and the Air Force Office of Special Investigations (AFOSI) conducted the investigation leading to the successful prosecution of this case.
Three-Time Convicted Felon from the Interior Sentenced for Illegally Possessing Firearms in FairbanksRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced today that a three-time convicted felon was sentenced to 37 months in federal prison for illegally possessing firearms in Fairbanks, Alaska.
J Cobb Whitmore, 38, of Fairbanks and Nenana, Alaska, was sentenced yesterday by Senior U.S. District Judge Ralph R. Beistline, to 37 months, 3 years supervised release, and 80 hours of community service. On September 8, 2017, Whitmore pled guilty in federal court for being a felon in possession of firearms, and agreed to forfeit all rights to firearms and ammunition named in the forfeiture allegation.
According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, in November 2015, Whitmore was a fugitive wanted on two active felony warrants in the following State of Alaska cases: (1) 4FA-15-01243CR (Assault 3); and (2) 4FA-15-02203CR (Escape 2). On November 19, 2015, after several days of surveillance and investigation, the U.S. Marshal Service’s Alaska Fugitive Task Force (AFTF) apprehended Whitmore at a Fairbanks property and executed the two outstanding warrants stemming from Whitmore’s aforementioned 2015 cases. At the time of his arrest, Whitmore was found in possession of two firearms, ammunition, and a ballistic vest, as well as a flatbed truck stolen from a nearby Fairbanks property.
Whitmore’s lengthy criminal history includes numerous violent assaults, DUIs, and other serious crimes, spanning more than 20 years. All of Whitmore’s contacts with the criminal justice system have been in Alaska, and Whitmore has committed nearly all of his crimes in either Nenana or Fairbanks.
At sentencing, Judge Beistline noted that Whitmore has victimized numerous Interior residents over the years via Whitmore’s numerous convictions, many of which involved violence, guns, or both. The Judge imposed the high-end of the advisory sentencing guideline range for Whitmore (i.e., 37 months) and ordered, among other things, that Whitmore complete 80 hours of community service and meet satisfy his child support obligations.
U.S. Attorney Schroder commended the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service, both branches of the Department of Justice, and the Alaska State Troopers (AST) for their substantial assistance leading to the successful prosecution of this case.
Anchorage Man Charged with Stealing Cell Phones from U.S. Mail and Being a Felon in Possession of FirearmRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man has been indicted by a federal grand jury for obstructing U.S. mail parcels and stealing cell phones from the packages, as well as being a felon in possession of a firearm.
The indictment returned by the grand jury alleges that Jermaine N. Sails, 41, of Anchorage, took numerous parcels containing cell phones from the U.S. mail beginning in October 2016, and continuing until Aug. 30, 2017. Approximately 400 cell phones with an approximate value of $50,000 were reported as missing from the U.S. mail during this timeframe. Sails was employed by a private contractor which handled U.S. mail parcels – including those containing cell phones which were being mailed back to service providers for return or repairs.
On Aug. 30, 2017, Sails was confronted by special agents with the United States Postal Service, Office of Inspector General, concerning the missing cell phones. Sails, who had been convicted of a felony assault charge in Alaska state court in 2004, was found in possession of a 9mm semi-automatic handgun at that time.
According to Assistant U.S. Attorney Joseph Bottini, if convicted of the mail obstruction charge, Sails faces a prison sentence of up to 5 years. If convicted of the felon in possession of a firearm charge, Sails faces a sentence of up to 10 years in prison.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Alaska Pilot Charged with Obstruction of the NTSBRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a federal grand jury in Anchorage has returned an indictment charging Forest M. Kirst, 60, of Fairbanks, Alaska, with two counts of obstruction before the National Transportation Safety Board (NTSB) and piloting an aircraft without a valid airman’s certificate.
According to Assistant U.S. Attorney Retta Randall, on Aug. 24, 2014, an aircraft piloted by Kirst was involved in an accident near Atigun Pass, Alaska. Three passengers aboard the aircraft sustained serious injuries, and 35 days later, one of the passengers died as a result of his injuries. The accident was investigated by the NTSB and by the Federal Aviation Administration (FAA). Kirst is charged with misleading the NTSB about the altitude of his plane prior to the crash and misleading the NTSB with varying explanations as to how the crash occurred.
Subsequently, Kirst’s Airman Pilot Certificate was revoked on an emergency basis by the FAA. Kirst was later observed to be flying his aircraft.
If convicted, Kirst faces a maximum sentence of five years in prison, and a $250,000 fine, or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Department of Transportation, Office of Inspector General, conducted the investigation leading to the indictment in the case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Justice Department Announces Charges and Guilty Pleas in Three Computer Crime Cases Involving Significant DDoS AttacksRead the Press Release
The Justice Department announced today the guilty pleas in three cybercrime cases. In the District of Alaska, defendants pleaded guilty to creating and operating two botnets, which targeted “Internet of Things” (IoT) devices, and in the District of New Jersey, one of the defendants also pleaded guilty to launching a cyber attack on the Rutgers University computer network.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Bryan D. Schroder of the District of Alaska, Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey and Assistant Director Scott Smith of the FBI's Cyber Division made the announcement.
On Dec. 8, Paras Jha, 21, of Fanwood, New Jersey; Josiah White, 20, of Washington, Pennsylvania; and Dalton Norman, 21, of Metairie, Louisiana, pleaded guilty to criminal Informations in the District of Alaska charging them each with conspiracy to violate the Computer Fraud & Abuse Act in operating the Mirai Botnet. In the summer and fall of 2016, White, Jha, and Norman created a powerful botnet – a collection of computers infected with malicious software and controlled as a group without the knowledge or permission of the computers’ owners. The Mirai Botnet targeted IoT devices – non-traditional computing devices that were connected to the Internet, including wireless cameras, routers, and digital video recorders. The defendants attempted to discover both known and previously undisclosed vulnerabilities that allowed them to surreptitiously attain control over the victim devices for the purpose of forcing the devices to participate in the Mirai Botnet. At its peak, Mirai consisted of hundreds of thousands of compromised devices. The defendants used the botnet to conduct a number of powerful distributed denial-of-service, or “DDOS” attacks, which occur when multiple computers, acting in unison, flood the Internet connection of a targeted computer or computers. The defendants’ involvement with the original Mirai variant ended in the fall of 2016, when Jha posted the source code for Mirai on a criminal forum. Since then, other criminal actors have used Mirai variants in a variety of other attacks.
On Dec. 8, Paras Jha and Dalton Norman also pleaded guilty to criminal Informations in the District of Alaska charging each with conspiracy to violate the Computer Fraud & Abuse Act. From December 2016 to February 2017, the defendants successfully infected over 100,000 primarily U.S.-based computing devices, such as home Internet routers, with malicious software. That malware caused the hijacked home Internet routers and other devices to form a powerful botnet. The victim devices were used primarily in advertising fraud, including “clickfraud,” a type of Internet-based scheme that makes it appear that a real user has “clicked” on an advertisement for the purpose of artificially generating revenue.
On Dec. 13, Paras Jha pleaded guilty in the District of New Jersey to violating the Computer Fraud & Abuse Act. Between November 2014 to September 2016, Jha executed a series of attacks on the networks of Rutgers University. Jha’s attacks effectively shut down Rutgers University’s central authentication server, which maintained, among other things, the gateway portal through which staff, faculty, and students delivered assignments and assessments. At times, Jha succeeded in taking the portal offline for multi-day periods, harming Rutgers University, its faculty, and its students.
“The Mirai and Clickfraud botnet schemes are powerful reminders that as we continue on a path of a more interconnected world, we must guard against the threats posed by cybercriminals that can quickly weaponize technological developments to cause vast and varied types of harm,” said Acting Assistant Attorney General Cronan. “The Criminal Division will remain constantly vigilant in combating these sophisticated schemes, prosecuting cybercriminals, and protecting the American people.”
“Our world has become increasingly digital, and increasingly complex,” said U.S. Attorney Schroder. “Cybercriminals are not concerned with borders between states or nations, but should be on notice that they will be held accountable in Alaska when they victimize Alaskans in order to perpetrate criminal schemes. The U.S. Attorney’s Office, along with our partners at the FBI and Department of Justice‘s Computer Crime and Intellectual Property Section (CCIPS), are committed to finding these criminals, interrupting their networks, and holding them accountable.”
“Paras Jha has admitted his responsibility for multiple hacks of the Rutgers University computer system,” said Acting U.S. Attorney Fitzpatrick. “These computer attacks shut down the server used for all communications among faculty, staff and students, including assignment of course work to students, and students’ submission of their work to professors to be graded. The defendant’s actions effectively paralyzed the system for days at a time and maliciously disrupted the educational process for tens of thousands of Rutgers’ students. Today, the defendant has admitted his role in this criminal offense and will face the legal consequences for it.”
“These cases illustrate how the FBI works tirelessly against the actions of criminals who use malicious code to cause widespread damage and disruptions to the general population,” said FBI Assistant Director Smith. “The FBI is dedicated to working with its domestic and international partners to aggressively pursue these individuals and bring justice to the victims.”
For additional information on cybersecurity best practices for IoT devices, please visit: /media/906536/dl?inline.
All three cases were investigated by the FBI’s Anchorage, Alaska and Newark, New Jersey Field Offices; and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Atlanta - Greenville South Carolina Office. The Mirai Botnet and Clickfraud Botnet cases are being prosecuted by Assistant U.S. Attorney Adam Alexander of the District of Alaska and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section of the Criminal Division. The Rutgers University case is being prosecuted by Assistant U.S. Attorney Shana Chen of the District of New Jersey. Additional assistance was provided by the FBI’s New Orleans and Pittsburgh Field Offices, the U.S. Attorney’s Office for the Eastern District of Louisiana, the United Kingdom’s National Crime Agency, the French General Directorate for Internal Security, the National Cyber-Forensics & Training Alliance, Palo Alto Networks Unit 42, Google, Cloudflare, Coinbase, Flashpoint, Yahoo and Akamai. Former Department of Justice prosecutors Ethan Arenson, Harold Chun, and Yvonne Lamoureux provided invaluable support during their previous tenure at DOJ.
Justice Department Announces Charges and Guilty Pleas in Three Computer Crime Cases Involving Significant DDOS AttacksRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today the guilty pleas in three cybercrime cases. In the District of Alaska, defendants pleaded guilty to creating and operating two botnets, which targeted “Internet of Things” (IoT) devices, and in the District of New Jersey, one of the defendants also pleaded guilty to launching a cyber attack on the Rutgers University computer network.
On Dec. 8, Paras Jha, 21, of Fanwood, New Jersey; Josiah White, 20, of Washington, Pennsylvania; and Dalton Norman, 21, of Metairie, Louisiana, pleaded guilty to criminal Informations in the District of Alaska charging them each with conspiracy to violate the Computer Fraud & Abuse Act in operating the Mirai Botnet. In the summer and fall of 2016, White, Jha, and Norman created a powerful botnet – a collection of computers infected with malicious software and controlled as a group without the knowledge or permission of the computers’ owners. The Mirai Botnet targeted IoT devices – non-traditional computing devices that were connected to the Internet, including wireless cameras, routers, and digital video recorders. The defendants attempted to discover both known and previously undisclosed vulnerabilities that allowed them to surreptitiously attain control over the victim devices for the purpose of forcing the devices to participate in the Mirai Botnet. At its peak, Mirai consisted of hundreds of thousands of compromised devices. The defendants used the botnet to conduct a number of powerful distributed denial-of-service, or “DDOS” attacks, which occur when multiple computers, acting in unison, flood the Internet connection of a targeted computer or computers. The defendants’ involvement with the original Mirai variant ended in the fall of 2016, when Jha posted the source code for Mirai on a criminal forum. Since then, other criminal actors have used Mirai variants in a variety of other attacks.
On Dec. 8, Paras Jha and Dalton Norman also pleaded guilty to criminal Informations in the District of Alaska charging each with conspiracy to violate the Computer Fraud & Abuse Act. From December 2016 to February 2017, the defendants successfully infected over 100,000 primarily U.S.-based computing devices, such as home Internet routers, with malicious software. That malware caused the hijacked home Internet routers and other devices to form a powerful botnet. The victim devices were used primarily in advertising fraud, including “clickfraud,” a type of Internet-based scheme that makes it appear that a real user has “clicked” on an advertisement for the purpose of artificially generating revenue.
On Dec. 13, Paras Jha pleaded guilty in the District of New Jersey to violating the Computer Fraud & Abuse Act. Between November 2014 to September 2016, Jha executed a series of attacks on the networks of Rutgers University. Jha’s attacks effectively shut down Rutgers University’s central authentication server, which maintained, among other things, the gateway portal through which staff, faculty, and students delivered assignments and assessments. At times, Jha succeeded in taking the portal offline for multi-day periods, harming Rutgers University, its faculty, and its students.
“Our world has become increasingly digital, and increasingly complex,” said U.S. Attorney Schroder. “Cybercriminals are not concerned with borders between states or nations, but should be on notice that they will be held accountable in Alaska when they victimize Alaskans in order to perpetrate criminal schemes. The U.S. Attorney’s Office, along with our partners at the FBI and Department of Justice’s Computer Crime and Intellectual Property Section (CCIPS), are committed to finding these criminals, interrupting their networks, and holding them accountable.”
“The FBI Anchorage Office investigated this case because many rural Alaska communities and businesses are uniquely vulnerable to cyber-crimes due to our reliance on the integrity of Internet access,” said Special Agent in Charge Marlin L. Ritzman of the FBI’s Anchorage Division.
For additional information on cybersecurity best practices for IoT devices, please visit: https://www.justice.gov/criminal-ccips/page/file/984001/download.
All three cases were investigated by the FBI’s Anchorage, Alaska and Newark, New Jersey Field Offices. The Mirai Botnet and Clickfraud Botnet cases are being prosecuted by Assistant U.S. Attorney Adam Alexander of the District of Alaska and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section of the Criminal Division. The Rutgers University case is being prosecuted by Assistant U.S. Attorney Shana Chen of the District of New Jersey. Additional assistance was provided by the FBI’s New Orleans and Pittsburgh Field Offices, the U.S. Attorney’s Office for the Eastern District of Louisiana, the United Kingdom’s National Crime Agency, the French General Directorate for Internal Security, the National Cyber-Forensics & Training Alliance, Palo Alto Networks Unit 42, Google, Cloudflare, Coinbase, Flashpoint, Yahoo and Akamai. Former Department of Justice prosecutors Ethan Arenson, Harold Chun, and Yvonne Lamoureux provided invaluable support during their previous tenure at DOJ.
Former Fort Wainwright Soldier Convicted of Distributing Child PornographyRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced that, yesterday, a federal jury in Fairbanks convicted a former Fort Wainwright soldier of distribution and transportation of child pornography.
Kaleb Basey, 27, was found guilty after a two-day trial before U.S. District Judge Ralph R. Beistline. Sentencing is scheduled for Feb. 23, 2018, in Fairbanks. The maximum penalty for each of the two counts upon which Basey was convicted is not less than five years and up to 20 years in prison, a fine of $250,000, and a term of supervised release of five years to life.
According to evidence presented at trial, in January 2014, Basey posted an advertisement within the “Casual Encounters” section of the Fairbanks Craigslist website that read: “any dads or moms want to share a daughter with me for the night?” Alaska State Troopers received a report about the ad and began an investigation, concerned that an actual minor might be in danger. Troopers identified Basey as the person who posted the ad in less than 24 hours. He was also identified as being an active duty solider on Fort Wainwright.
Troopers contacted Army Criminal Investigation Division (CID) agents and executed a search of the defendant’s barracks room. Law enforcement agents eventually contacted the FBI for assistance. FBI agents were able to identify additional sexually-explicit Craigslist postings by Basey in which he sought access to minor children, as well as email communications in which individuals had responded to these sexually-explicit posts. In one set of emails, the defendant included a picture of child pornography, and told the person with whom he was emailing that he enjoyed watching movies that showed “young girls 5-15yo” engaged in sexual acts with adults. To this email string, the defendant also attached a fully-nude selfie. In a second email, the defendant sent a picture of child pornography to himself.
This case was investigated by the Federal Bureau of Investigation, Alaska State Troopers, and Army Criminal Investigation Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Washington Man Sentenced to 10 Years for Defrauding Alaskans Out of Approximately $2.7 MillionRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a Washington man was sentenced to serve 10 years in prison for defrauding Alaskans with an advance fee scheme where he promised investors a significant return on an investment that did not actually exist. His wife was previously convicted on one count of social security fraud in Washington.
Floyd Jay Mann, Jr., 56, of Puyallup, Washington, was sentenced today by Chief U.S. District Judge Timothy M. Burgess to serve 10 years in prison, followed by a term of supervised release. He was also ordered to pay full restitution to the victims. Mann pleaded guilty in July 2017 to 11 counts of wire fraud and eight counts of money laundering in Alaska.
According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, Mann defrauded individuals in Dillingham and elsewhere of approximately $2.7 million by falsely leading the victims to believe that he was the recipient of a multimillion-dollar settlement from a class-action lawsuit against a pharmaceutical company. Mann told victims that if they helped to pay his medical bills and other lawsuit-related expenses, the victims would be paid back plus a substantial return on their money, but only after Mann’s multimillion-dollar settlement was released by the court. In fact, Mann did not use the victim’s money to pay medical bills. There was no lawsuit settlement, and Mann used the money he obtained from the victims to gamble at a casino, collecting over $1 million in jackpots while receiving need-based social security benefits.
The scheme started when Mann first convinced an elderly neighbor who had cancer, and was formerly from Dillingham, that he too had cancer. Once Mann gained the neighbor’s sympathy and trust, Mann convinced the neighbor of the legitimacy of his fraudulent lawsuit. The neighbor gave so much money to Mann’s scheme he lost his house and then succumbed to his cancer. Meanwhile, Mann moved on to the elderly neighbor’s friends and relatives in Dillingham. Mann carried out his scheme over six years. Mann created fraudulent court documents and had co-conspirators assisting him with pretending to be judges and federal agents to corroborate his fraudulent stories to the victims.
According to Special Assistant U.S. Attorney Benjamin Diggs, who prosecuted the case against Floyd Mann’s wife, Cheryl Mann, in the Western District of Washington, during the course of Floyd Mann’s scheme, he and his wife Cheryl Mann and their son collected approximately $81,000 in need-based Supplemental Security Income benefits. Cheryl Mann was the designated payee for Floyd Mann and their son and responsible for reporting any changes in the household income or assets. During this time, Cheryl Mann won approximately $125,000 by gambling at a casino. That income, as well as the funds obtained by her husband, disqualified the Manns from the public assistance they received. At her sentencing on July 7, 2017, Cheryl Mann was ordered to pay $81,000 in restitution and serve three years of probation.
“Floyd Mann preyed upon the sick and elderly. He ruined the lives of those who sadly placed their trust in him,” said First Assistant U.S. Attorney Bryan Wilson. “I commend the members of this office and our law enforcement partners in their efforts to obtain this conviction and sentence.”
“Unfortunately, this isn’t the first time well-wishers have gotten robbed helping others in fake battles against cancer,” said Acting Special Agent in Charge Joshua Bottjer. “IRS-CI Special Agents work diligently to stop criminals like Mann and others who commit crimes out of greed.”
In imposing the sentence, Judge Burgess noted that Mann was a “dogged, determined, charlatan” who caused “permanent financial and emotional damage to dozens of people.” Judge Burgess also commented that Mann was “sophisticated, devious, and calculating.”
The IRS-Criminal Investigation (IRS-CI), Federal Bureau of Investigation (FBI), and Social Security Administration-Office of Inspector General (SSA-OIG), conducted the investigation leading to the convictions in these cases.
Washington Man Convicted for Conspiracy to Distribute Heroin and Methamphetamine in AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that, on Dec. 6, 2017, a federal jury in Juneau convicted Zerisenay Gebregiorgis, 35, a Washington resident, of conspiracy to distribute and to possess with the intent to distribute heroin and methamphetamine.
The evidence presented at trial showed that, between June 1, 2016, and August 16, 2016, Gebregiorgis and others planned to distribute large quantities of heroin and methamphetamine in the communities of Ketchikan and Sitka. Gebregiorgis supplied drugs to drug couriers, who carried the drugs inside their bodies to other co-conspirators in Ketchikan and Sitka for subsequent distribution. Drug proceeds were then given to the couriers to be carried back to Seattle to be delivered to the defendant or deposited into bank accounts controlled by Gebregiorgis.
According to evidence presented at trial, Gebregiorgis trafficked at least 100 grams or more of heroin and 50 grams or less of methamphetamine. Gebregiorgis directed every aspect of the conspiracy, to include directing the amounts of drugs sent to Alaska, the couriers who carried the drugs, the travel for those couriers, and delivery of drug proceeds of the conspiracy back to him via couriers and bank accounts deposits.
Sentencing is scheduled for March 5, 2018, at 11:00 a.m. in Juneau. The law provides for a mandatory minimum sentence of five years up to a maximum of 40 years in prison, a fine of up to $5 million dollars, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the criminal history, if any, of the defendant. The defendant is detained pending sentencing.
Mr. Schroder commends the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the members of the Southeast Alaska Cities Against Drugs Taskforce (SEACAD), specifically the members from the Alaska State Troopers (AST), Ketchikan Police Department (KPD), and the Sitka Police Department (SPD) for the investigation of this case.
Anchorage Man Sentenced to 20 Years in Prison for Distribution of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man was sentenced in federal court to 20 years for distributing child pornography.
Jay Leavitt, 27, of Anchorage, was sentenced today by U.S. District Judge Sharon L. Gleason to serve 20 years in prison. Upon release, Leavitt will be under supervised release for the remainder of his lifetime.
According to Assistant U.S. Attorney Jonas Walker, Leavitt was previously sentenced in state court to three years of active imprisonment for attempted sexual abuse of a minor. Shortly after being released, Leavitt began distributing child pornography using a smartphone, even though he was under probation supervision.
Specifically, between March 27, 2017, and April 7, 2017, Leavitt used a computer to upload 55 images to his Twitter and Gmail accounts, and eight video clips, knowing that those images and videos depicted minors engaged in sexually explicit conduct.
Leavitt’s state probation supervision included polygraph examinations, also known as lie-detector tests. Leavitt successfully deceived a lie detector test by falsely denying committing the new offense.
Judge Gleason remarked that the 20-year sentence was imposed due to the seriousness of the crime. The Court considered the victim-impact statements presented by victims of child pornography and their guardians.
The Federal Bureau of Investigation (FBI) and Anchorage Police Department (APD) conducted the investigation leading to the successful prosecution of this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood combines federal, state and local resources to better identify, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Wasilla Man Sentenced for Sex TraffickingRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Terry Lee Keehn, II, 44, resident of Wasilla, Alaska, was sentenced yesterday by U.S. District Judge Timothy M. Burgess to serve 13 years, 10 months in prison, to be followed by a 10-year term of supervised release, for two counts of sex trafficking through force, fraud, and coercion.
According to documents filed in the case, on Jan. 13, 2016, Alaska State Troopers (AST) served a state search warrant on the defendant’s vehicle and house for evidence of the sex trafficking and drug crimes. During a search of the defendant’s truck, law enforcement officers found a backpack with drug paraphernalia, including a digital scale, glass pipes, and unused baggies commonly used for distribution of drugs. In a backpack in the truck was methamphetamine and heroin.
During the drug investigation, Troopers identified several women the defendant recruited to work for him as prostitutes in and around Anchorage and the Matanuska-Susitna Valley. In his recruitment, the defendant targeted drug addicted women and recruited them to work for him by promising safe shelter and help getting off heroin. In some instances, the defendant substituted methamphetamine for heroin, continuing the victims’ dependence on controlled substances. In exchange for lodging, food, and drugs, the victims worked as prostitutes for the defendant, providing him with money and sexual favors.
Judge Burgess based his sentence primarily on the seriousness of the offense, the need to deter others, and the need to protect the public. “There are a lot of serious crimes in the world, but [sex trafficking] is up there as being among the most serious,” said Judge Burgess. Judge Burgess noted that the defendant targeted drug-addicted victims, and used that drug dependency “for his own benefit.” The defendant’s conduct toward his victims was “incredibly manipulative, coercive, and demeaning,” said Judge Burgess, and was “going to impact [his victims] probably for the rest of their lives.”
The case was the product of an investigation by the Alaska State Troopers, Special Crimes Investigation Unit, and the Drug Enforcement Administration (DEA). Assistant U.S. Attorney Kyle Reardon prosecuted the case.
Alaska Man Sentenced to Prison for Threatening to Assault Federal OfficialsRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced today that a Wiseman, Alaska, man was sentenced in federal court for threatening to assault federal officials.
Jay Rolf Armstrong, 52, of Wiseman, Alaska, was sentenced today by U.S. District Judge Ralph R. Beistline, to serve two years in federal prison, followed by one year of supervised release. Armstrong was also ordered to pay a fine of $2,000. Armstrong pleaded guilty on Aug. 18, 2017, to two counts of threatening to assault federal officials.
According to court documents, Armstrong had made numerous complaints to BLM officials and others over a period of several months, beginning in January 2016, about BLM’s decisions regarding Armstrong’s mining activities on public lands. On Jan. 9, 2017, in Washington, D.C., Armstrong spoke to a BLM official and expressed his anger at being denied mining permits. Two days later, Armstrong made two phone calls to government officials, and threatened to kill BLM employees in Alaska.
In the first call, Armstrong said: “We should just go out and kill these sons of bitches. Honestly, I have half a mind to walk down there and mess them up right now.” In his second call that day, Armstrong telephoned a BLM official in Fairbanks, and stated: “Don't think for a second that if we don’t get this resolved that I won't pick up arms. I will pick up arms, and I will kill you guys. That's not a threat.”
When at his residence in Wiseman, Alaska, Armstrong could be heard firing his weapons, including a .50 caliber rifle and semi-automatic firearms. A search of Armstrong’s residence and property revealed a variety of firearms including rifles, shotguns, revolvers, rifle scopes, thousands of rounds of ammunition, ammunition magazines, firearm parts, gunpowder, shell casings, primers, bayonets and a large gun safe containing two .50 caliber rifles, additional firearms and ammunition.
The Federal Bureau of Investigation (FBI) and Bureau of Land Management (BLM) conducted the investigation leading to the successful prosecution of this case.
Bryan Schroder Sworn in as United States Attorney for the District of AlaskaRead the Press Release
Anchorage, Alaska – Bryan Schroder has taken the oath of office to become the United States Attorney for the District of Alaska. Mr. Schroder was nominated by President Donald Trump on July 21, 2017, and confirmed by the U.S. Senate on Nov. 9, 2017. Today, he took the oath of office from Chief U.S. District Judge Timothy M. Burgess.
“I’m honored to have been selected as U.S. Attorney for the District of Alaska,” said Mr. Schroder. “Every day, the staff of the U.S. Attorney’s Office works diligently to protect the people of this state, and the resources of the United States. I am proud to have been their colleague for the past 12 years, and am excited to continue working with them as we move forward. I also look forward to continuing the essential working relationships with our federal, state, and local law enforcement partners. Finally, I want to thank my family and friends. I would not be here today without their support.”
As U.S. Attorney, Mr. Schroder is the top-ranking federal law enforcement official in the State of Alaska. He oversees a staff of 49 employees, including 24 attorneys and 25 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Mr. Schroder is also one of the nine U.S. Attorneys recently selected by Attorney General Sessions as a member of the Attorney General’s Advisory Committee (AGAC). AGAC represents the U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys.
Prior to becoming U.S. Attorney, Mr. Schroder served as the Acting U.S. Attorney for the District of Alaska, and previously served as the First Assistant U.S. Attorney and Chief of the Criminal Division. Mr. Schroder has served in the U.S. Attorney’s Office for more than 12 years, prosecuting a variety of cases including violent crimes, drug distribution, gun crimes, fraud, tax evasion, environmental crimes, and fisheries and wildlife offenses. Mr. Schroder is a retired Captain in the U.S. Coast Guard, having served for 24 years. Mr. Schroder graduated from the U.S. Coast Guard Academy in 1981 and the University of Washington School of Law in 1991.
Alaska Man Found Guilty of Possessing Firearms as a Convicted FelonRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that an Alaska man was found guilty on Wednesday, Nov. 15, 2017, of being a felon in possession of a firearm. The man possessed two rifles and many rounds of ammunition after having been convicted in Alaska State Court of three felonies, including assault in the third degree.
On Dec. 29, 2016, Joseph Kuzmin, 40, of Voznesenka, Alaska, was arrested by the Alaska State Troopers (AST) after he reportedly assaulted his teenage son. Voznesenka is about 20 miles east of Homer. AST referred the case to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). ATF searched Kuzmin’s home in January 2017 and found two rifles and the ammunition. Federal law prohibits felons from possessing rifles, in addition to other types of firearms.
According to Assistant U.S. Attorney Jonas Walker, the jury heard evidence that Kuzmin physically assaulted his son, then threatened to shoot him, and another relative, and any police officers who responded.
Sentencing has been scheduled for Feb. 5, 2018. Kuzmin faces up to 10 years in federal prison. The State of Alaska originally charged Kuzmin with assaulting his son, but dismissed the assault case before trial.
Acting U.S. Attorney Schroder commended ATF and AST, who conducted the investigation of this case.
Three Alaska Residents Charged with Conspiracy to Smuggle Heroin into Goose Creek Correctional CenterRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a federal grand jury returned an indictment charging three individuals with conspiring to smuggle heroin into the State of Alaska Department of Corrections (DOC) Goose Creek Correctional Center (GCCC) for distribution to inmates in April 2016.
Spencer Daniel Johnson, 24, and Kalani Lemauga Maalona, 31, who were both inmates at GCCC at the time of the drug conspiracy, and Heaven Leigh Erick, 28, have been named in the indictment, which charges each of them with drug conspiracy. Johnson has also been charged with possession with the intent to distribute a controlled substance.
According to Assistant U.S. Attorney Andrea W. Hattan, who presented the case to the grand jury, the charges arise from the seizure of nearly 20 grams of heroin from Johnson on April 11, 2016, three days after the heroin was passed to Johnson at GCCC on April 8, 2016. Johnson, Maalona, and Erick are presently incarcerated on unrelated state charges.
The law provides for a maximum sentence of 20 years in prison and a fine of $1 million or both for the charges alleged in the indictment. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The Federal Bureau of Investigation (FBI) conducted the investigation, with assistance from DOC and the Alaska State Troopers Western Alaska Alcohol and Narcotics Team (WAANT), leading to the charges in this case.
Charges contained in the indictment are merely allegations, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Fairbanks Sex Offender Convicted of Receipt of Child PornographyRead the Press Release
U.S. Attorney Bryan Schroder announced today that on November 8, 2017, a federal jury in Fairbanks convicted Tommy Hanson, 54, of receipt of child pornography.
Hanson was found guilty after a three-day trial before U.S. District Judge Ralph R. Beistline of the District of Alaska. Sentencing is scheduled for January 19, 2018, in Fairbanks, Alaska. Because Hanson was previously convicted of possession of child pornography, the maximum penalty for the defendant’s conviction is not less than 15 years imprisonment and up to 30 years imprisonment, a fine of $250,000, a term of supervised release of five years to life, and a $100 special assessment.
According to evidence presented at trial, in 2007 Hanson pled guilty to the possession of child pornography and was sentenced to 96 months imprisonment. In that case, Hanson admitted to the use of newsgroup binaries to receive thousands of images of depicting child sexual exploitation, and then backing those images up to CD-ROMS.
Following his release from imprisonment in 2012, Hanson was subjected to a term of supervised release. As a condition of his release, Hanson was not to possess computers without the approval of the probation office, and if found in possession of any computers, the devices were subject to search.
United States Probation Officers searched the defendant’s home in North Pole, Alaska on October 12, 2016. During the search, the probation officers found the defendant in possession of an unauthorized computer and an external hard drive. A forensic search of the computer and hard drive by the FBI revealed thousands of images of child pornography that the defendant had downloaded between 2012 and 2016 using internet newsgroups, after his release in the prior case. The FBI discovered additional forensic evidence linking Hanson to the computer and external hard drive, such as Skype chat logs. In those Skype chat logs Hanson told a friend that he was not allowed to have computer but that he was not concerned about being searched by the “feds” given the remote location of his home.
This case was investigated by the United States Probation Office, FBI agents and analysts in Fairbanks and Anchorage, and FBI’s Electronic Device Analysis Unit in Quantico, Virginia. The case was prosecuted by Assistant United States Attorneys Adam Alexander and Kyle Reardon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Judge Imposes 9-Year Sentence on 14-Time Felon for Possessing FirearmsRead the Press Release
Acting U.S. Attorney Bryan Schroder announced today that an Anchorage man was sentenced in federal court on Friday, November 3, 2017, after pleading guilty to being a felon in possession of a firearm. The man possessed three handguns -- two of which were stolen -- after having been convicted of at least 14 prior felony convictions.
According to Assistant U.S. Attorney Jonas Walker, Jeff Green, 59, had been released on bail while awaiting sentencing in a prior state prosecution. However, after the state court imposed sentence, Green failed to remand for jail. On June 3, 2016, Anchorage Police arrested Green after observing him near his apartment.
At the time of arrest, Green possessed one handgun in his pocket. Later, police found two more stolen handguns in a storage closet adjacent to Green’s apartment. Green had cut a hole in the wall separating his apartment from the storage closet so that he could access the guns easily while not exiting the apartment. Also within Green’s apartment, police found ammunition, shell casings, and body armor. Green also had a reminder note to collect an apparent drug debt.
Green’s prior convictions include homicide, robbery, burglary, and methamphetamine-related offenses. In a recorded phone call, Green described himself as an “outlaw” and claimed to have “18 violent felony convictions.”
United States District Court Judge Sharon Gleason imposed the 108-month sentence, which was only one year below the ten-year maximum statutory penalty available had Green been convicted after trial. Judge Gleason found that Green was a danger to the public while armed, and noted that this case was the fifth time Green had been sentenced for being a felon in possession of a firearm.
Mr. Schroder commends the Anchorage Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation of this case.
Anchorage Man Charged for Trafficking Large Quantities of Heroin and Methamphetamine into AlaskaRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that an Anchorage man was arrested and charged for the trafficking of multi-kilo quantities of heroin, as well as multi-pound quantities of methamphetamine, which were to be distributed in the Anchorage area.
Cheng Chiew Saechao, 28, of Anchorage, was charged yesterday with possession with intent to distribute 1,000 grams or more of heroin. Saechao had his initial appearance in court yesterday, and was ordered detained pending grand jury indictment.
According to the complaint, on October 23, 2017, federal, state, and local law enforcement officers arrested Saechao following a seizure of nearly 10 pounds of methamphetamine by the United States Postal Inspection Service (USPIS), which had been shipped to Alaska from California. When law enforcement officers subsequently searched Saechao’s residence, they found approximately 4 kilograms of heroin, which is the approximate equivalent of 40,000 individual dose quantities. In total, the complaint alleges that the street value of the drugs is approximately $400,000 for the heroin and $1,000,000 for the methamphetamine.
At Saechao’s residence, evidence of drug distribution including packaging materials, a digital scale, and a handgun were also found. Following his arrest, Saechao admitted receiving pounds of heroin and methamphetamine in recent months and further admitted he intended to distribute the heroin throughout the Anchorage area.
If convicted, Saechao faces a mandatory minimum 10 years to life imprisonment, a $10 million fine, and a minimum of five years of supervised release.
The Drug Enforcement Administration Task Force (DEA), United States Postal Inspection Service (USPIS), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Homeland Security Investigations (HSI), Anchorage Police Department Vice Unit, Alaska State Troopers, Anchorage Airport Police Department and Alaska National Guard Counter Drug Support Program conducted the investigation leading to the charges in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Anchorage Man Charged for Distribution of Child PornographyRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that an Anchorage man was charged for the distribution of child pornography.
Ronald Teekell, 52, of Anchorage, and owner of Jewel Lake Bowl, was arraigned yesterday before U.S. Magistrate Judge Kevin F. McCoy on two counts of distribution of child pornography. A detention hearing was scheduled for Oct. 27, 2017.
According to the indictment, in November 2014 and June 2016, Teekell knowingly distributed, by any means and facility of interstate and foreign commerce, visual depictions of minors engaging in sexually explicit conduct. It is alleged that Teekell used the wireless internet at Jewell Lake Bowl to access child pornography.
The charges against Teekell are the result of a joint investigation conducted by the FBI and APD. If the public has any further information, questions, or concerns about the activities of Teekell, please contact the FBI at (907) 276-4441.
If convicted, Teekell faces a statutory minimum of five years in prison and guideline sentence of the statutory maximum of 20 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
This case is being brought as part of Project Safe Childhood. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
U.S. Attorney’s Office Announces Multi-Agency Law Enforcement Initiative to Reduce Violent Crime in AlaskaRead the Press Release
Anchorage, Alaska – Today, Acting U.S. Attorney Bryan Schroder announced the U.S. Attorney’s Office statewide Anti-Violent Crime Strategy, which brings together municipal, state, and federal law enforcement agencies to combat the tide of rising crime in Alaska. Earlier this month, Attorney General Jefferson Sessions announced the renewal of “Project Safe Neighborhoods,” (PSN) a program that successfully contributed to the reduction of violent crime approximately 15 years ago. As part of this renewed effort, the Attorney General tasked each U.S. Attorney’s Office with arriving at a comprehensive plan to address rising crime in their districts. A fundamental element of PSN is partnership with state, local, and tribal law enforcement agencies, and the Strategy described below was developed in consultation with state and local Alaska agencies, including Department of Law.
The Alaska Anti-Violent Crime Strategy, which has been in development for the past several months, has five major components designed to stem to tide of violent crime:
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- A federal “duty agent” will be called out to every murder scene and shooting scene. Their function will be to provide assistance, intelligence from any federal investigations, and to explore federal charges if requested to do so by state and local law enforcement and the Department of Law.
- A ballistics task force will review ballistic evidence at every shooting to match up ballistics from crime scenes and recovered firearms. There are already approximately 60 correlations between ballistics evidence at different crime scenes, and the ATF will be following up on each correlation to identify and prosecute the perpetrators of violent assaults in the most appropriate forum.
- Project “Real Time” is a program committed to the identification of violent offenders and the initiation of prompt federal prosecution.
- Anti-violence efforts in rural Alaska will focus on the partnership with the Alaska State Troopers, and be directed toward federal prosecution of violent felons and domestic abusers who possess firearms.
- Reentry and Prevention efforts. The goal of PSN and the Alaska Anti-Violent Crime Strategy is to prevent crime – not fill prisons. To this end, the U.S. Attorney’s Office is coupling the above programs with new reentry efforts. For example, Project Face to Face, which will be aimed at meeting with certain high-risk inmates scheduled to be released from custody. The purpose of this project is to make clear that violence and drug trafficking by repeat offenders will not be tolerated, but help is available for all those who wish to break the cycle of violence, drug trafficking and gang activity to become productive citizens. The U.S. Attorney’s Office, together with its federal partners, will continue organizing events at secondary schools all over Alaska to discuss the dangers of opioid abuse. This program, based on the DEA/FBI-produced documentary called “Chasing the Dragon,” will continue this year, as federal prosecutors, law enforcement officers, and medical professionals will join together to discuss their experience with the opioid epidemic.
The U.S. Attorney’s Office for the District of Alaska and our partners have been employing some of the above strategies for the past two months. Following this model, the office has had a record number of federal charges filed since August 2017. In the past two months, federal charges have been filed against 68 individuals in 56 separate violent crime cases. This represents approximately twice as many indictments and defendants charged, compared to a similar two-month period last year. Many of these cases resulted from the cooperation of federal, state, and local entities, including cooperation from the Department of Law. Some representative cases include:
- U.S. v. Twigg and Conangnan. This case charged the defendants with interfering with commerce by robbery of two coffee stands on September 25, as well as using a firearm in furtherance of these crimes. Defendant Shane Twigg, 35, has seven prior felonies and had a pending assault case when the robberies occurred. Myles Conangnan, 27, has a prior felony for Burglary, as well as 16 other convictions, including six convictions from four separate cases in 2017 alone. Both defendants face mandatory minimum sentences of 32 years in federal prison if they are convicted.
- U.S. v. Sampo. This case charged carjacking by a four-time prior felon, Michael Sampo, 28. It is alleged that on September 12, Sampo approached a woman who had just left the Subway restaurant near the Northway Mall. Sampo presented a gun and demanded her keys and purse. When the victim said that her keys were somewhere in the bottom of her purse, Sampo shot his gun into the ground. The woman threw her purse into the car and ran back into Subway, after which Sampo drove off in her vehicle. About 90 minutes later, APD spotted the stolen car, which led to a chase that ended with police ramming the vehicle to a stop on 5th Avenue in Anchorage. Sampo fled the car and was apprehended by a K9 unit. The K9 unit later found the handgun Sampo had discarded while attempting to flee. Sampo faces up to 15 years on the carjacking charge, plus a mandatory minimum ten-year consecutive sentence for using the firearm to commit the carjacking.
- Numerous charges alleging felon in possession of firearms against several members of the 1488 gang, which is a white supremacist prison gang. Several of the gang members had been recently released from prison and were all found in possession of firearms.
All defendants are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Schroder thanked the Alaska Department of Law, the Anchorage Police Department, the Alaska State Troopers, the FBI, ATF, DEA, U.S. Marshal Service, and the Department of Homeland Security Investigations, all of which contributed to one or more of the above cases, as well as actively participated in the formulation of the Alaska Anti-Violent Crime Strategy. Acting U.S. Attorney also thanked the Anchorage Municipal Prosecutor’s Office, which, since 2007, has assigned a prosecutor to work as a Special Assistant U.S. Attorney (SAUSA) on violent crime cases in Anchorage. In the past two months, this SAUSA has charged over ten violent crime cases.
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Group Responsible for ATM Thefts SentencedRead the Press Release
Anchorage, Alaska - Acting U.S. Attorney Bryan Schroder announced today that, on Friday, Oct. 6, 2017, the group responsible for ATM thefts at several Anchorage banks were sentenced in U.S. District Court in Anchorage.
Chief U.S. District Judge Timothy M. Burgess sentenced Adrian Turnbow, Christi Cozzetti, Jerd Thacker, and Jordan Cook for their roles in ATM thefts from banks in early 2017. All had previously pleaded guilty to the crime of possession of stolen bank property.
Turnbow used front end loaders stolen from local construction sites to remove ATMs from Anchorage banks. Turnbow was involved in thefts or attempted thefts that occurred at an Alaska USA branch on Dec. 25, 2016, at Denali Federal Credit Union on Feb. 6, and at two First National Bank branches on March 1, and March 6, 2017.
Cozzetti, Thacker, and Cook participated in the March 1, 2017, theft. On that date, Turnbow used a front end loader to remove an Automated Teller Machine (ATM) from a First National Bank branch located near the intersection of Old Seward Highway and Dimond Boulevard in Anchorage. Turnbow then contacted Jerd Thacker, who assisted him in transporting the ATM to the Wasilla area. While Turnbow was inside a heavy equipment rental business in Wasilla, Thacker stole Turnbow’s truck that contained the stolen ATM, then he, Cozzetti, and Thacker travelled to Big Lake where they attempted to open the ATM.
Adrian Turnbow, 26, of Anchorage, was sentenced to 30 months in prison, followed by three years of supervised release. In addition, Turnbow was ordered to pay a total of $452,933 in restitution to the following businesses: Alaska Federal Credit Union, Titan LLC, Denali Federal Credit Union, BC Excavating, and First National Bank. Turnbow also agreed to abandon any interest he had in a blue Chevrolet truck that was purchased with money from one of the stolen ATMs and was used to facilitate the theft of another ATM. Judge Burgess noted at Turnbow’s sentencing that his crimes were serious and caused ripples of problems across the community, as customers could not use the ATMs at their banks and banks lost customers.
Cristi Cozzetti, 29, of Anchorage, was sentenced to 18 months in prison, followed by three years of supervised release and 200 hours of community work service. Judge Burgess noted at Cozzetti’s sentencing that she had a “terrible” criminal history and that this sentence would protect the public from her future crimes.
Jerd Thacker, 28, of Anchorage, was sentenced to 12 months and one-day in prison, followed by three years of supervised release and 200 hours of community work service. Thacker and others possessed a stolen ATM on March 1, 2017, and attempted to open it after it had been stolen from an Anchorage bank by Turnbow. Judge Burgess noted that there was “no honor among thieves” with regard to Thacker stealing Turnbow’s truck that he knew contained a stolen ATM.
Jordan Cook, 29, of Anchorage, was sentenced to seven months in prison, followed by three years of supervised release and 200 hours of community work service.
Judge Burgess ordered community work service as a condition for Cozzetti, Thacker, and Cook so they may contribute something positive to the community after they have served their sentences.
Acting U.S. Attorney Schroder commended the diligence and hard work of the Federal Bureau of Investigation, the Anchorage Police Department, and the Alaska State Troopers for the investigation leading to the successful prosecution of Turnbow, Cozzetti, Thacker, and Cook.
Palmer Man Sentenced to 20 Years in Prison for Role in Heroin Related DeathRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that a Palmer man was sentenced today in federal court for multiple drug offenses, including distributing heroin that resulted in the death of a young man who used the heroin.
Hiram Luis Ducasse, Jr., 27, of Palmer, was sentenced by U.S. District Judge Sharon L. Gleason to 20 years in prison, followed by six years of supervised release. Ducasse pleaded guilty on June 20, 2017, to conspiracy to distribute and possess with intent to distribute heroin, and possession of controlled substances with intent to distribute.
According to court documents, Ducasse distributed heroin to Michael Chalender, who subsequently died as a result of a heroin overdose. On Nov. 30, 2015, Ducasse agreed to meet Chalender at a Wasilla gas station, where Ducasse sold him a half gram of heroin for $100. The next morning, on Dec. 1, 2015, Chalender was found deceased in bed at his father’s house. The cause of death was determined to have been a heroin overdose. The investigation further revealed that, on Dec. 2, 2015, on a recorded telephone conversation, Ducasse admitted to having sold Chalender the heroin and denied altering it in any way, saying he “didn’t want anything to come back on me” and that he just gets his heroin from someone else, and gives it to his customers unchanged. Ducasse admitted to selling heroin, including the heroin that resulted in Chalender’s death.
During a search of Ducasse’s residence, law enforcement officers found distributable amounts of heroin, $8000, a firearm, and packaging materials that included small purple glassine baggies imprinted with black spiders, identical to the baggie that Ducasse sold to Chalender.
At the time of this offense, Ducasse was still on felony probation after having previously been convicted of a drug distribution felony in 2014 with the State of Alaska, in which he was caught distributing heroin at the same gas station in Wasilla.
The Drug Enforcement Administration (DEA) and the Alaska State Troopers Mat-Su Drug Enforcement Unit conducted the investigation leading to the successful prosecution in this case.
Alaska Couple Charged with Defrauding Anchorage Medical Practice of at Least $550,000Read the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that an Alaska couple has been charged for allegedly defrauding an Anchorage medical practice of at least $550,000.
Jill Diane Applebury, aka: “Jill Wetzsteon,” 52, d/b/a Applebury Accounting Services, and her husband Darin Wade Applebury, 52, both of Anchorage, have been named in a 39-count indictment charging them with bank fraud, wire fraud, fraudulent transactions with an access device, and aggravated identity theft.
From the mid-1990’s until March 2013, Jill Applebury was the independent contractor bookkeeper for an Anchorage medical practice, which was owned and operated by an Anchorage physician. The indictment alleges that from at least 2004 until March 22, 2013, Jill Applebury and Darin Applebury defrauded the Anchorage medical practice in several ways.
For example, as to Jill Applebury, one such scheme involved the medical practice’s profit-sharing plan. Employees of the medical practice were eligible to participate in its profit-sharing plan, which was overseen by a third-party administrator. Independent contractors did not qualify for the plan. According to the indictment, Jill Applebury falsely represented to the third-party administrator that she had become a full-time employee of the medical practice in 2009, making her eligible to participate in the profit-sharing plan beginning in 2010. In all, Jill Applebury fraudulently caused the physician to unknowingly allocate $62,722.90 to her in unauthorized profit-sharing plan contributions for the years 2010 and 2011.
The indictment further alleges that, between 2004 and March 22, 2013, Jill and Darin Applebury also defrauded the physician’s medical practice by using the medical practice’s business bank account and business credit card to pay for items for their own personal and/or business benefit. The unauthorized charges to the medical practice’s business credit card included cell phone service for the Appleburys and members of their family, internet service for their residence, business licenses for businesses owned by Jill and Darin Applebury, automobile insurance for their personal vehicles, and other personal items.
In addition, in October 2012, Darin Applebury is alleged to have fraudulently used the medical practice’s business credit card to effect four transactions, totaling nearly $3,000, of medical products for his business, Rapid Recovery Medical Service. Darin Applebury effected these fraudulent credit card transactions using the physician’s name and address unbeknownst to and without the permission of the Anchorage physician. Jill Applebury assisted her husband in carrying out this unlawful conduct.
This case was investigated by the Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD).
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two Men Charged with Stealing 36 Firearms from Anchorage Gun DealerRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that two men have been charged with stealing 36 firearms from an Anchorage gun dealer, EDC Alaska, during a Sept. 7, 2017, burglary on Northern Lights Blvd. that was captured on multiple surveillance systems.
Seth Kaufman, 31, and Christopher Kratsas-Derr, 27, are charged with theft of firearms from a licensed dealer. Kaufman is also charged with possessing some of the stolen firearms a few days later, on Sept. 11, 2017.
A complaint filed in the case alleges that police received a report of a burglary of EDC Alaska at 6:51 AM on Sept. 7, 2017. Thirty-six firearms had been stolen by two individuals who backed up a black pickup in front of the business, made entry, and left with three dozen guns. Surveillance video showed that one of the burglars was wearing grey/black shoes with white trim, while the other wore grey sweatpants and brown ankle boots with white trim.
EDC Alaska’s owners recalled a suspicious customer from days before. After reviewing the video of that interaction, police were able to identify the suspicious customer as Kaufman.
According to the complaint affidavit, police subsequently received a tip indicating that Kaufman and “Chris” committed the burglary, and that they had subsequently offered the guns for sale while staying at Microtel. Review of prior arrest information revealed that Kaufman and Christopher Kratsas-Derr were arrested together for a different theft crime on June 2, 2017, yet neither was in custody during the Sept. 11, 2017, burglary of EDC Alaska.
The complaints against Kaufman and Kratsas-Derr also note that on Sept. 11, 2017, APD officers made contact with Kaufman at Motel 6 in Anchorage. Kaufman was apprehended after fleeing out the second story window of room 209. Near that same window, law enforcement agents found four of the firearms stolen from EDC Alaska, along with grey/black shoes with white bottom trim.
Law enforcement officers also reviewed surveillance footage from Microtel, which showed an individual wearing grey sweatpants and brown ankle boots with white trim. That individual was subsequently identified as Christopher Kratsas-Derr.
Both Kaufman and Kratsas-Derr have been arrested and were initially charged with multiple crimes by the State of Alaska. Kratsas-Derr’s arraignment on the federal indictment is set for 9:30 AM on Tuesday, Sept. 26, 2017, while Kaufman’s is set for 11:30 AM the same day.
The law provides for a maximum sentence of 10 years in prison and a fine of up to $250,000 for the charges listed in the complaint. Additionally, defendants can also be required to pay restitution to the victims in this case. Under the federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The Anchorage Police Department (APD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation that led to the charges in this case.
ATF advises that most of the firearms stolen from EDC Alaska have not been recovered. Anyone with information regarding the whereabouts of the remaining firearms are encouraged to call 1-888-ATF-TIPS.
Charges contained in a complaint or indictment are merely allegations. Every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Juneau Man Convicted for Receipt of Child PornographyRead the Press Release
Juneau, Alaska – Acting U.S. Attorney Bryan Schroder announced today that on Friday, Sept. 22, 2017, a federal jury of six women and six men convicted a Juneau man of receipt of child pornography.
Jim Wayne Thornhill, 40, of Juneau, was found guilty after a three-day trial before Chief U.S. District Judge Timothy M. Burgess. Sentencing has been scheduled for Nov. 30, 2017, in Juneau. Thornhill faces a maximum penalty of no less than 15 years and up to 40 years in prison, a fine of $250,000, a five-year to life term of supervised release, and a $100 special assessment. Thornhill is a convicted sex offender, who was convicted by the State of Alaska for sexual abuse of a minor in the second degree in 2007, where he had repeatedly sexually abused a child from the age of six to 11.
According to the evidence presented at trial, the Federal Bureau of Investigation (FBI) received a report of harm forwarded from the National Center for Missing and Exploited Children (NCMEC) and the Internet Crimes Against Children (ICAC) to the Juneau Police Department. The FBI subsequently identified Thornhill as a person of interest.
On Oct. 7, 2015, Thornhill was contacted by the FBI and was interviewed, where he denied having a cell phone. The FBI learned that Thornhill’s employer located a cell phone and handwritten lists with search terms and internet addresses that were associated with child pornography. The FBI subsequently interviewed Thornhill again on Oct. 13, 2015, where he admitted to writing the handwritten lists of search terms, ownership of the cell phone, and accessing the Internet with the cell phone between September and November 2014. He claimed he was looking for adult and child pornography that were “just naked kids.” Based on this information, the FBI obtained a search warrant for Thornhill’s cell phone which revealed at least 100 images of child pornography that were downloaded between the dates of Nov. 3, 2014, through Dec. 25, 2014. Many of the images were of young pre-pubescent children engaged in sexually explicit conduct, including images that depicted an adult male sexually assaulting a toddler.
The FBI investigated this case, with assistance from the Juneau Police Department. Assistant U.S. Attorney Jack Schmidt, located in the Juneau Branch Office, prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood, U.S. Marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney’s Office Announces First “Alaska Hope Court” GraduateRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that a graduation ceremony was held today for Rashad Arnsworth, 38, of Anchorage, for his completion of the 18-month long federal reentry program, known as Alaska Hope Court.
The Hope Court was established in May 2015 through an order of the District Court of Alaska. The Hope Court team members include the United States Attorney’s Office, the United States District Court, the Office of the Federal Defender, and the United States Probation Office.
The Hope Court has received invaluable assistance from community partners including Partners for Progress, Partners Reentry Center, Cook Inlet Tribal Council, Alaska Native Justice Center and the Alaska Wellness Court Alumni Group, according to Chief U.S. Magistrate Judge Deborah M. Smith, presiding judge of the court. Each of these organizations are essential to the success of the Hope Court participants, according to Judge Smith.
Mr. Arnsworth met the following graduation requirements of Hope Court, which are demanding and are aimed at building life skills:
- Complete Moral Reconation Therapy, an evidence-based program designed to build life skills and critical thinking;
- Obtain stable housing;
- Obtain and maintain stable employment, ideally employment that can lead to a career unless excused by Probation;
- Successfully complete any recommended substance abuse treatment;
- Successfully complete any recommended counseling;
- Complete approximately 60 hours of a volunteer project of their choice to “give back” to the community; and
- Complete at least 18 successful months in Hope Court with six months of continuous sobriety before graduation.
Because Mr. Arnsworth successfully graduated from the program, the Hope Court team recommended to U.S. District Judge Sharon Gleason that Mr. Arnsworth receive a 15-month reduction in his period of supervised release. Judge Gleason accepted the recommendation.
Judge Smith noted: "Mr. Arnsworth has turned his life around. He has successfully graduated and did it in record time. He has quietly set an example for others and always been willing to assist other court participants." Mr. Arnsworth was recently hired as a peer counselor with Cook Inlet Tribal Council.
Sisters Sentenced for Embezzlement from Indian Tribal GovernmentRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Sylvia Toolie, 60, and her sister, Peggy Akeya, 57, of Savoonga, Alaska, were sentenced by Chief U.S. District Judge Timothy M. Burgess for embezzling funds from the Native Village of Savoonga (“Native Village of Savoonga” or “the Tribe”), which is located on St. Lawrence Island.
Toolie was sentenced yesterday to serve eight months in prison, followed by three years of supervised release. Akeya was sentenced on Tuesday, Sept. 12, to a term of five years’ probation, three months’ home confinement, and 120 hours of community service. Toolie and Akeya were ordered to pay restitution to the Native Village of Savoonga in the amounts of $69,563.07 and $14,855.81, respectively. Judge Burgess also ordered Akeya to record statements for a public service announcement to raise awareness of the consequences that follow from embezzling tribal government or other public funds.
Between April 2011 and May 2012, Toolie and Akeya stole from the Tribe using their positions of trust to do so. Toolie was a full-time salaried employee of Kawerak, Inc. (“Kawerak”) who was assigned to serve as the Native Village of Savoonga’s tribal coordinator. (Kawerak is a regional non-profit corporation that provides services to tribes in the Bering Straits region.) In her position, Toolie handled the day-to-day operations of the Tribe’s office and other duties, including grant reporting and managing accounts receivable, accounts payable, and payroll. She was also entrusted with ensuring that funds provided to the Tribe were used and accounted for properly. Absent Kawerak’s prior approval, Toolie was not permitted to be paid by the Tribe at all. Toolie nevertheless used her position of trust to obtain numerous unauthorized checks from the Tribe. In all, Toolie tried to fraudulently obtain roughly $83,000 of the Tribe’s funds, and actually pocketed $69,563.07.
Akeya used her position as Secretary and unofficial bookkeeper to sign numerous unauthorized checks to herself and others that were drawn on the Tribe’s bank accounts. Akeya tried to fraudulently obtain over $25,000 in funds, and actually obtained $14,655.96.
By approximately mid-November 2011, the Tribe had run out of money despite receiving considerable federal funding in 2011. When a large check that the Tribe issued was returned for insufficient funds, that creditor made inquiries, which ultimately led to the underlying investigation and proof that the Tribe’s funds had been misappropriated for years by Toolie, Akeya, and others. For example, the investigation revealed that the funds that Toolie and Akeya embezzled were supposed to pay for, among other things, repairs to homes and public buildings in Savoonga damaged during a severe December 2010 winter storm that prompted the State of Alaska to issue a disaster declaration. Due to the suspicious payments and the Tribe’s inability to account for millions of dollars in federal funding, the Department of the Interior, Bureau of Indian Affairs (BIA) has withheld funding from the Native Village of Savoonga since fiscal year 2012.
In sentencing Toolie, Judge Burgess underscored the “exponential impact” that these crimes had on Savoonga, and he was sentencing Toolie to serve eight months in prison in part to send a clear message that stealing tribal or public funds will be met with “significant [and] serious consequences that include going to jail.”
This case was investigated by the Federal Bureau of Investigation (FBI) and the United States Department of Housing and Urban Development, Office of Inspector General (HUD OIG).
Repeat Methamphetamine Dealer, Armed with Sawed-Off Shotgun, Sentenced to over Five Years in PrisonRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a Kenai man was sentenced in federal court in Anchorage for trafficking methamphetamine and possession of an illegal firearm while being a felon.
Richard Paul Morrison, 37, of Kenai, Alaska, was yesterday by Chief U.S. District Judge Timothy M. Burgess to serve 63 months in federal prison, followed by three years of supervised release.
According to Assistant U.S. Attorney Jonas Walker, Morrison was previously convicted of felony forgery in Oregon in 2000, and of a methamphetamine-related offense in Nebraska in 2004. In January 2016, a confidential informant bought methamphetamine from Morrison three times. Morrison was operating out of his garage in Kenai, where he kept a 12 gauge shotgun with its barrel sawed-off to be less than 18 inches long. Morrison admitted he kept it to protect the methamphetamine.
Morrison is also charged in state court with causing the death of a Soldotna man in December 2015 by unlawfully giving him methadone. The Kenai District Attorney’s Office is prosecuting Morrison regarding the methadone-related death. According to the plea agreement in the federal case, which was coordinated with the Kenai District Attorney’s Office, Morrison will plead guilty in the state case to criminally negligent homicide and receive a sentence of four years, which will be consecutive to his sentence in the federal case. According to Courtview, that case, 3KN-16-843CR, is scheduled for a change of plea hearing on Oct. 12, 2017.
Judge Burgess commented that Morrison committed a “very serious offense” and was a former drug dealer who “got back into it with a bang.” The court found that Morrison was “an absolute danger” to the community and that protecting the public was the most important sentencing factor.
This was a joint state and federal case. Morrison’s crimes were investigated by the Alaska State Troopers (AST), Alaska Bureau of Investigation and Statewide Drug Enforcement Unit, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The State of Alaska and the U.S. Attorney’s Office coordinated the joint prosecutions.
Acting U.S. Attorney Schroder thanks the Alaska Department of Public Safety and the Kenai District Attorney’s Office for their cooperation in this case.
Municipal, State, and Federal Partnership Targets Fentanyl TraffickersRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a federal grand jury in Anchorage has returned a series of indictments charging individuals with fentanyl trafficking and other criminal offenses. Fentanyl, sometimes known on the street as “Grey Death,” is a powerful opioid that is up to 50 times more powerful than heroin. The Drug Enforcement Administration (DEA) has issued nationwide alerts on fentanyl as a threat to health and public safety, as well as to law enforcement officers, who were warned by DEA two months ago to take extreme precautions when handling fentanyl, because exposure to an amount equivalent to a few grains of sand can result in death.
In the recently indicted cases, Sergio Jauna Devoe, 27, of Anchorage, was charged with possession with the intent to distribute quantities of methamphetamine and fentanyl, on or about May 5, 2017. Devoe was also charged with possession of a firearm in furtherance of a drug trafficking crime. If convicted, Devoe faces a mandatory minimum ten-year sentence, with a maximum of life imprisonment.
Misty G. Thomas, 25, of Anchorage, was charged with possession with the intent to distribute quantities of methamphetamine and fentanyl, on or about Oct. 6, Oct. 7, and Nov. 9, 2016. If convicted, Thomas faces a mandatory minimum of five years in prison, and a maximum sentence of 40 years in prison. Thomas was also charged in a separate indictment for fraudulent activity in connection with identification documents. According to the indictment, on or about Feb. 18, 2017, Thomas knowingly posed as “E.B.” to a Fred Meyer employee, a licensed dealer of firearms, and used E.B.’s identification to falsely purchase three firearms. If convicted, Thomas faces a maximum of ten years in prison on the firearm charges, as well as a mandatory consecutive two-year sentence based on the theft of “E.B.’s” identity to purchase the firearms.
Finally, Charles Jeffery Mosley, Jr., 36, of Anchorage, was charged with possession with the intent to distribute over 100 grams of heroin, on or about July 12, 2017. Mosley was also charged for being a felon in possession of a firearm, and for possession of a firearm in furtherance of a drug trafficking crime. Mosley faces a mandatory minimum ten-year sentence.
Acting U.S. Attorney Bryan Schroder stated, “For Americans under the age of 50, drug overdoses are the leading cause of death. The trafficking of fentanyl can only worsen this tragedy. We are thankful to be able to work collaboratively with our state and local partners – not just in prosecuting the traffickers of opioids, but also in finding solutions to this epidemic. These solutions include prevention and education efforts, as well as task forces that include medical and health professionals.”
These cases are being handled by Special Assistant U.S. Attorney James Stinson, who is an Anchorage municipal prosecutor. Since 2007, the Municipality of Anchorage has assigned prosecutors to the U.S. Attorney’s Office to work on cases that have direct impact on the safety of Anchorage residents, such as drugs, guns, and violent crime. The Anchorage District Attorney’s Office also participated in the prosecution and referral of the cases, which were investigated by the Anchorage Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Soldotna Man Sentenced in Alaska’s First Federal Felony Spice Trafficking CaseRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that Philip Drake Kneeland, 34, d/b/a Tobacco Distress, Inc., at mile 91.5 of the Sterling Highway in Soldotna, Alaska, was sentenced to 70 months in prison for distributing Spice and possessing a firearm in furtherance of Spice trafficking.
In addition to his prison sentence, Chief U.S. District Judge Timothy M. Burgess ordered Kneeland to forfeit to the United States approximately $75,400.00, a 2014 GMC truck, and 4 firearms. The Spice distributed by Kneeland contained “cannibimimetic agents,” including compounds JWH-18 and JWH-073, in violation of federal controlled substances law. Judge Burgess also ordered that Kneeland perform 200 hours of community service upon his release from prison, because Kneeland’s sales triggered an epidemic of Spice-related law enforcement responses on the Kenai Peninsula, including emergency room visits, suspected suicides and DUIs, severely impacting the community. The Court heard testimony from a local resident and local law enforcement that the Spice epidemic on the Kenai Peninsula has essentially disappeared since Kneeland’s arrest.
Kneeland pled guilty on March 6, 2017, to possession of synthetic cannabimimetic agents with intent to distribute and possession of a firearm during and in relation to a drug trafficking crime, stemming from a search of Tobacco Distress on Oct. 31, 2015.
As widely reported in the summer of 2015, Anchorage experienced an explosion of Spice overdose emergency calls which strained first responders and claimed many victims. In the fall of 2015, Kenai Peninsula residents openly protested Kneeland’s Spice sales outside the Tobacco Distress premises, carrying signs saying “SPICE KILLS.”
As explained by the Indictment in the case, “Spice” is a generic term for smokeable synthetic cannibinoids, which are manufactured by dissolving psychotropic drugs, compounds such as JWH-18 and JWH-073, in acetone and spraying it on plant material.
Acting U.S. Attorney Schroder complimented the investigation of the case, which was conducted by DEA, the Internal Revenue Service Criminal Investigation (IRS-CI), the Kenai Police Department, and the Alaska State Troopers Statewide Drug Enforcement Unit based on the Kenai Peninsula.
Brothers Sentenced for Roles in Armored Car RobberyRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Jafari Lewis-Daniel, 22, and his brother, Jarron Lewis-Daniel, 23, of Anchorage, were sentenced yesterday by U.S. District Judge Timothy M. Burgess for their roles in an armored car robbery in December 2014.
Jafari Lewis-Daniel pleaded guilty to aiding and abetting a bank robbery, and was sentenced yesterday to serve 69 months in prison followed by three years of supervised release. Jarron Lewis-Daniel pleaded guilty to misprision of a felony, and was sentenced yesterday to serve 18 months in prison, followed by one year of supervised release.
In mid-December 2015, Jafari Lewis-Daniel met with at least two individuals and learned of a plan to rob an armored car. He allowed his white Impala to be used during the robbery, which occurred on Dec. 23, 2015. At least three individuals drove in his white Impala to a Wells Fargo Bank in Anchorage. After the armored car arrived at the bank to deliver money, two men jumped out of Jafari Lewis-Daniel’s vehicle and approached the armored car drivers. One of the robbers pointed a gun at the armored car driver while a second person grabbed a bag of money that was being delivered to the bank. At least one other individual drove away from the bank in Jafari Lewis-Daniel’s vehicle. total, the robbers stole over $230,000. Following the robbery, Jafari Lewis-Daniel and Jarron Lewis-Daniel met with others involved in the robbery and received a cut of the stolen money.
Federal Bureau of Investigation (FBI) special agents and Anchorage Police Department (APD) detectives analyzed security video from Wells Fargo to identify Jafari Lewis-Daniel’s Impala. Additional investigation identified multiple cash purchases made by the brothers. These included two vehicles and a motorcycle. The brothers also purchased multiple electronic devices, televisions, and jewelry.
Law enforcement officials executed a search of the apartment the brothers shared in January 2015. During the search, FBI agents found a gun and $18,400 in a duffel bag outside Jafari Lewis-Daniel’s bedroom window. Jafari Lewis-Daniel threw this money out the window when he heard police knocking at his door. In Jarron Lewis-Daniel’s room was $26,000 and a gun. In a third bedroom was nearly $50,000 in loose cash.
In pronouncing the sentences, Judge Burgess emphasized the serious of the crime. “This was a serious crime…this was a robbery of an armored car with armed guards. This could have been disastrous,” said Judge Burgess. Judge Burgess also described the impact this crime had on the victims. “This was a life changing event for the people who had guns stuck in their faces,” said Judge Burgess. “[The victims] can’t do the job they did before because they worry they might end up dead. This has real consequences,” said Judge Burgess. Judge Burgess acknowledged that there remained significant questions surrounding the defendants’ involvement in the robbery, including the identity of the other individuals involved.
This case was the product of an investigation by the FBI and APD. Assistant U.S. Attorney Kyle Reardon prosecuted the case.