District of Alaska
Press releases recorded for this federal judicial district.
Anchorage Woman Sentenced to 42 Months for Conspiracy, Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was sentenced yesterday to 42 months in prison for conspiring to obtain stolen checks and then forging and negotiating the stolen checks at different banks and grocery stores in Anchorage.
Victoria Kosetatino, 25, of Anchorage, was sentenced by Chief U.S. District Judge Timothy M. Burgess, who also ordered Kosetatino to pay full restitution.
According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, Kosetatino and Jeremy Tamapolu conspired together to obtain checks stolen from vehicle break-ins, home burglaries, and mail theft, and then forge and negotiate the stolen checks at different banks and grocery stores in Anchorage. They also utilized bank accounts opened in other individuals’ names to pass the stolen and forged checks. Kosetatino was released from a state sentence for similar conduct in November 2015, and started her fraudulent conduct in this case in December 2015, continuing to April 2016, when she was apprehended. Kosetatino and Tamapolu obtained approximately $9,000 before they were apprehended in this case.
At sentencing, Chief Judge Burgess noted that Kosetatino is a serial fraudster that had not been deterred by her prior convictions and sentences for fraud. Chief Judge Burgess also noted the significant impact to the safety of the community from the nature of the thefts and the identity theft.
Jeremy Tamapolu is scheduled for trial on March 6, 2017.
U.S. Attorney Loeffler commends the U.S. Postal Inspection Service and the Anchorage Police Department for the investigation of this case.
Anchorage Man Sentenced to 16 Months in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Jahkeel Joseph, 23, resident of Anchorage, was sentenced today by Chief U.S. District Judge Timothy M. Burgess to 16 months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm. Joseph pleaded guilty on Oct. 11, 2016, to a violation of Title 18, United States Code, Section 922(g)(1).
According to documents filed in the case, in the early morning hours of Feb. 2, 2016, a resident of an apartment complex in Anchorage called police to report a loud “bang” in the apartment next door. He called back a few minutes later to report finding shotgun holes in the walls of his kitchen. According to the neighbor, the defendant and the female occupant of the next door apartment had been arguing for about an hour before the “bang.”
While police were on route to the apartment in response to the neighbor’s call, the police passed the defendant as he drove away. The defendant turned into the wrong lane of traffic and nearly collided with the police cruisers. He then failed to stop at a stop sign. Police turned and gave chase. The defendant initially failed to stop, before finally pulling into a parking lot about a mile from the apartment. Located on the seat next to the defendant was a shotgun (with one spent round in the chamber and five rounds in the side saddle). A field sobriety test was started.
At sentencing, Judge Burgess noted the “incredibly serious” nature of the defendant’s conduct, and his prior history with guns, including an incident in 2014 in which the defendant shot another person during a fight in the face. According to Judge Burgess, the 16-month sentence was appropriate given the defendant’s criminal history. “He wasn’t supposed to have a gun in the first place,” said Judge Burgess. “He is making a bad choice that could have significant consequences for him and others around him.” Judge Burgess went on to add that his sentence was intended to send a message to the defendant that he needs to “grow up.” “I think it is important that you be deterred, and that you understand that there are consequences to your conduct,” said Judge Burgess.
The case was the product of an investigation by the Federal Bureau of Investigation and the Anchorage Police Department. Assistant U.S. Attorney Kyle Reardon prosecuted the case.
Kodiak Strip Boat Owner Sentenced to Probation and FineRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Darren Byler, 56, resident of Zachar Bay, Kodiak Island, Alaska, was sentenced on Monday by U.S. District Judge Sharon L. Gleason to five years’ probation and a fine of $10,000, for violating the Refuse Act and making false statements to Coast Guard officials.
Byler was convicted in December 2015 after an 11-day trial. According to the evidence at trial, Kimberly Riedel-Byler and Darren K. Byler were the owners of the Wild Alaskan, a floating strip club anchored in Kodiak Harbor between June 2014 and November 2014. On the Wild Alaskan was a customer bathroom for patrons and an employee bathroom for dancers and other staff. The United States established at trial that sewage from these bathrooms on board the Wild Alaskan was plumbed to flow directly overboard into the waters of Kodiak Harbor.
When asked to produce documentation about his sewage disposal from the Wild Alaskan, Darren Byler gave the United States Coast Guard Marine Safety Detachment Kodiak a false ship’s log. In the log, the defendant claimed to have disposed of 1,500 gallons of raw sewage from the Wild Alaskan at the Pier 2 sewage disposal facility in Kodiak Harbor on July 29 and 30, 2014. In his log, the defendant also reported that he disposed of 800 gallons of sewage on five additional occasions in September and October 2014, by transporting the sewage in his landing craft, the Gulf Coast Responder, and dumping it at sea beyond 3 nautical miles. The United States proved at trial that these statements were false.
Judge Gleason based her sentence on numerous factors, including the nature and circumstances of the defendant’s conduct, and the defendant’s history and characteristics. Judge Gleason also noted the need to deter others from committing similar environmental crimes, and then engaging in steps to hide those illegal discharges. “There is a need for the sentence to afford some degree of adequate deterrence to the many other mariners that are in our state,” said Judge Gleason.
The case was the product of an investigation by multiple law enforcement agencies, including the United States Coast Guard Investigative Service, the Federal Bureau of Investigation, and the Kodiak Police Department. Assistant U.S. Attorney Kyle Reardon and Special Assistant U.S. Attorney William George prosecuted the case.
Former Bookkeeper Indicted for Committing Bank Fraud Scheme and Submitting False Tax ReturnsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman has been indicted for committing a scheme to defraud Wells Fargo Bank and for submitting false tax returns to the IRS. The indictment alleges that Raenette K. Yangson, 42, while employed as a bookkeeper for Western Construction and Equipment, an Anchorage business, embezzled more than $750,000.00 from the company between 2006 and 2013.
The indictment specifically alleges that Yangson created multiple false checks drawn on the business’ Wells Fargo bank account which were made payable to herself or to her husband. It is further alleged that Yangson then forged the signatures of owners of the business on the checks and then made false entries into the business’ computer accounting program to make the payments appear to be legitimate payments to vendors. The indictment also charges Yangson with two counts of aggravated identity theft for forging the owners’ signatures on the fraudulent checks and five counts of submitting false income tax returns to the IRS for failing to report the embezzled income.
According to Assistant U.S. Attorney Joseph Bottini, who presented the case to the grand jury, if convicted, Yangson faces a sentence of up to 30 years in prison for the bank fraud charge, another mandatory two-year consecutive sentence for the aggravated identity theft charges, and up to three years in prison for the false tax return charges.
U.S. Attorney Loeffler commends the FBI, the IRS Criminal Investigation Division, and the Anchorage Police Department for the investigation of 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.
Wasilla Man Indicted on Federal Child Pornography ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a federal grand jury in Anchorage indicted Devin Lee Peterson for production and possession of child pornography.
According to the indictment filed today in federal court, on July 22, 2016, Peterson produced a video of a minor engaged in sexually explicit conduct, in violation of Title 18, United States Code, Section 2251(a). The indictment also alleges that on Dec. 6, 2016, Peterson possessed images of minors engaged in sexually explicit conduct, in violation of Title 18, United States Code, Section 2252(a)(4)(B).
Under federal law, the maximum penalty for production of child pornography is not less than 15 years in prison and to 30 years. The maximum punishment for possession of child pornography is up to 10 years in prison. Both offenses carry fines of up to $250,000, and terms of supervised release following imprisonment of not less than five years and up to life. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The Alaska State Troopers (AST) conducted the investigation leading to the indictment in this case. The FBI provided assistance to AST.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
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.
12 Alleged Fairview Gang Members Sentenced for Drugs, Weapons, and Money Laundering OffensesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that, yesterday, an Anchorage man was sentenced by Chief District Judge Timothy M. Burgess to serve 12 years in prison for his role in a conspiracy to distribute heroin, cocaine, and crack in Anchorage, to launder thousands of dollars in drug proceeds, and for possession of a firearm in furtherance of the drug conspiracy. Isaiah Holloway was the last of twelve defendants to be sentenced in the case, which alleged that the defendants were involved in a Fairview gang tied to a set of the “Bloods” street gang in California.
Isaiah Holloway, a/k/a “Z” and “Zaya,” age 27, previously pled guilty to conspiring with others to distribute drugs and to launder the proceeds. As part of his guilty plea, Holloway admitted that he sold drugs on multiple occasions with other co-conspirators, and that he traveled with other members of the conspiracy who carried drug proceeds and firearms in order to protect themselves and those proceeds.
Following his release from prison, Holloway will be on supervised release for five years. As part of the sentence, Judge Burgess ordered forfeiture of the defendant’s interest in the $76,335 of drug proceeds seized during the investigation into the drug trafficking operation.
According to charging and sentencing documents, the conspiracy began in 2013 and continued until December of 2015. During that time, Holloway acquired drugs, including heroin, cocaine, and crack, and worked with eleven other conspirators to sell the drugs to others. The members of this conspiracy called themselves the “Fairview Mob” or “326 Mob” and associated with members of the “Campanell Park Piru Bloods” street gang in Compton, California. The investigation revealed that “326” was code for “Compton to Fairview.” Several of the defendants were seen on both social media and seized videos flaunting their gang ties to California, making gang signs, and repeating the phrase “Fairview to Compton.” They also posted music videos on YouTube promoting violence and a gang lifestyle.
Holloway and several other conspirators maintained a “stash house” in the Government Hill neighborhood, where law enforcement officers found large amounts of drugs and money. Several defendants also shared a “dope phone” that drug users could call to reach available members to arrange for drug sales. During the time of this conspiracy, the members were involved in numerous crimes in Anchorage involving the use or possession of firearms, for which several face sentencing or have recently been sentenced in state court.
During several of the sentencing hearings, Judge Burgess noted the lengthy criminal records of the defendants, despite their relatively young ages. In fact, on three of the defendants, Judge Burgess imposed sentences greater than those recommended by applicable sentencing guidelines, citing the need to protect the public from the defendants. Despite their conduct in several videos, almost all of the defendants disclaimed membership in a gang at sentencing. Regardless, Judge Burgess stated that the members of this conspiracy were living and promoting a dangerous gang lifestyle. He repeatedly stressed the seriousness and dangerousness of the crimes – which not only included the sale of drugs but the use of weapons to protect the conspiracy’s interests. Judge Burgess stated, “there are only two endings for people who get involved with this type of activity . . . jail or death.”
“Fairview is not Compton, and thanks to the cooperation of federal, state, and municipal agencies, it will never be Compton,” stated Deputy Criminal Chief Frank Russo of the U.S. Attorney’s Office. “But if you act like a gangster, and commit crimes like a gangster, rest assured that law enforcement and the criminal justice system will treat you like a gangster.”
To date, the following individuals have been sentenced as part of this investigation:
- Ishmael Holloway, 24, of Anchorage, to 10 years in prison for the drug conspiracy and possession of a firearm in furtherance of a drug trafficking crime;
- Lamont Moore, 37, of Compton, California, to 10 years for the drug conspiracy;
- Michael Reynold, 24, of Anchorage, to five years for drug trafficking near a school or playground;
- Dorian Topps, 23, of Anchorage, to four years for drug trafficking;
- Angelo Charter, 27, of Anchorage, to four years for the drug conspiracy;
- Karl Maddox Jr., 26, of Anchorage, to 40 months for drug trafficking;
- Christopher Meeks, 23, of Anchorage, to 22 months for drug trafficking near a school or playground;
- Felton Reynold, 28, of Anchorage, to 20 months for drug trafficking near a school or playground;
- Delano Williams, 26, of Anchorage, to 20 months for drug trafficking near a school or playground;
- Leonard Moore Jr., 27, of Anchorage, to 15 months for receiving a firearm while under felony indictment and providing false statements; and
- Malia Green, 22, of Anchorage, to eight months for drug trafficking.
One charged conspirator remains at large: Dearon Walton, a purported member of the Campanella Park Piru Bloods of California.
This case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF), and led by the FBI Safe Streets Task Force and the Anchorage Police Department. It was prosecuted by Assistant U.S. Attorney Frank Russo and Special Assistant U.S. Attorney Erin Bennett, a municipal prosecutor on loan to the U.S. Attorney’s Office to address gang crimes. The Municipality has partnered with the U.S. Attorney’s Office since 2007 by supplying prosecutorial resources to the U.S. Attorney’s Office to assist in drug and violent crime cases in Anchorage. Since 2007, these municipal prosecutors have been responsible for over 200 federal felony prosecutions involving drug, gun, and violent crime cases.
In announcing the sentence, U.S. Attorney Loeffler also praised the Internal Revenue Service Criminal Investigation Division, which led the financial investigation. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration also provided assistance.
Petersburg Man Sentenced to Federal Prison for Transportation of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that, yesterday, a Petersburg man was sentenced to federal prison for the transportation of child pornography.
Marvin Mitchell Jackson, 28, a resident of Petersburg, Alaska, was sentenced by Chief U.S. District Judge Timothy M. Burgess to five years in prison for a single count of transportation of child pornography. Upon the completion of his prison term, Jackson must complete a 30-year term of supervised release.
Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, informed the court that Jackson was contacted by law enforcement on Jan. 18, 2016, during an unrelated state drug investigation as Jackson was traveling from Washington to Petersburg, Alaska, on a commercial air carrier, in which his cell phone was seized and was subsequently searched as part of that investigation. During the search, a number of images of child pornography were discovered. Law enforcement obtained additional search warrants and discovered hundreds of images of prepubescent children engaged in sexually explicit conduct. A number of the images were of three known identifiable children that were obtained from various visual media, including Facebook, that had been modified by the defendant to depict the children in those images engaging in sexual explicit conduct. Jackson had used a photo shop type program to take images of himself and morphed the images to depict him engaging in explicit sexual conduct with the minors. Many of the images created by the defendant included text stating graphic sexual abuse fantasies related to those children.
In ordering Jackson’s sentence, Chief Judge Burgess noted the seriousness of the crime because “the defendant created digital images that could easily go out into the internet” and “the impact (of the morphed images) on the victims is just as devastating.” Chief Judge Burgess also noted deterrence of the defendant, protection of the public, and to provide necessary treatment as additional reasons for the sentence he imposed.
The charges against Jackson are the result of an investigation conducted by the Federal Bureau of Investigation and the Petersburg Police Department.
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.
Juneau Man Sentenced to Federal Prison for Distributing Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that, yesterday, a Juneau man was sentenced to federal prison for the distribution of child pornography.
Steven Raymond Foster, 55, of Juneau, Alaska, was sentenced by Chief U.S. District Judge Timothy M. Burgess to 78 months in prison for a single count of distribution of child pornography. Upon the completion of his prison term, Foster must complete a 30-year term of supervised release.
Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, informed the court that Foster became the subject of an investigation after federal law enforcement had downloaded from Foster, through the use of a peer to peer (P2P) file sharing program, 12 videos that contained images of minors engaged in sexually explicit conduct. A search warrant was executed at the defendant’s residence where over 2,000 images and 54 videos were located that contained images of minors engaged in sexually explicit conduct. In an interview, Foster admitted to downloading the images and videos located on his computer and admitted to using a P2P program that distributed the images to others. Foster further admitted that he knew it was illegal to view, possess, and distribute child pornography, but that he did not expect that anybody would come looking for him.
The charges against Foster are the result of an investigation conducted by the Federal Bureau of Investigation (FBI).
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.
Anchorage Man Sentenced to 17 Months for Illegal Possession and Sale of ExplosivesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Reginald Jesse Hawley, 39, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason to serve 17 months in prison for being a felon in possession of explosives, followed by three years of supervised release.
On June 7, 2016, Hawley possessed 4 one pound "bricks" of explosives when he sold them for $2,000 to another individual. At the time of the possession and sale, Hawley had previously been convicted of crime punishable by more than one-year imprisonment and was prohibited from possessing explosives or firearms.
Judge Gleason noted the potential for danger in the illegal sale of explosives to unknown individuals.
U.S. Attorney Loeffler commends the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation for the successful investigation and prosecution of this case.
U.S. Citizen Charged with Conspiring to Provide Unlawful Services to Iran and International Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a U.S. citizen has been indicted on federal charges for his alleged role in a scheme to provide services to Iran which resulted in the unlawful distribution of approximately $1 billion United States dollars equivalent of Iranian owned funds. These funds were held in South Korea in restricted accounts, then transferred to more than 10 countries around the world, including the United States, United Arab Emirates, Switzerland, Germany, Austria and Italy. These transfers were in violation of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).
Kenneth Zong, 77, is named as the sole defendant in the 47-count indictment charging him with conspiracy to violate IEEPA, unlawful provision of services to Iran, money laundering conspiracy, and money laundering. The indictment alleges that Zong, a U.S. citizen, spent most of his adult life residing in, and doing business in Anchorage, Alaska. At a time undetermined, Zong left Alaska for Seoul, South Korea, and operated businesses there. The indictment alleges that in January 2011, and continuing through at least April 2014, Zong and four co-conspirators – three Iranian nationals and one U.S. citizen – conspired to evade the prohibitions of IEEPA and ITSR by engaging in false, fictitious and fraudulent transactions which were designed to unlawfully convert and remove Iranian owned funds equivalent to approximately $1 billion United States dollars. These funds were held in controlled Korean bank accounts, and converted into more easily tradeable currencies, such as dollars and/or euros, by defrauding the Korean regulators into thinking the transactions were legitimate. Zong is charged with transferring those currencies worldwide, and receiving payment for these acts from the Iranian nationals in an amount from $10 million to $17 million USD.
The indictment alleges that the scheme began in 2011, when Zong changed the name of his Korean company, “KSI Ejder, Inc.” (KSI) to “Anchore.” Zong used KSI/Anchore as a conduit to convert and distribute Iranian funds into United States currency or, in some cases euros, by fictitiously selling marble tiles and other construction supplies to an Iranian shell company in Kish Island, Iran. The indictment alleges that KSI/Anchore fictitiously purchased Italian marble tiles and other construction supplies from “MSL & Co Investment Trading” (MSL Investment Dubai), an Iranian-controlled shell company in Dubai, which were then fictitiously shipped directly to another fictitious company in Iran. Zong and his co-conspirators created false and fictitious contracts, bills of lading, and invoices to show Korean government banking regulators that the Iranian company owed KSI/Anchore for the false marble purchases. This resulted in the transfer of Iranian funds, at the direction of Zong’s co-conspirators, from the restricted Iranian bank account to Zong’s KSI/Anchore account. Zong then transferred the funds to entities and individuals throughout the world, including Alaska and other countries in the Middle East, Europe and North America.
Zong is also charged with 43 counts of money laundering and one count of money laundering conspiracy for his actions in connection with the $10 million dollar fee paid to him by his Iranian associates. In furtherance of the scheme, Zong transferred $10 million of his fees from Korea to a co-conspirator who resided in Anchorage. This individual also created and operated various companies to be used as front companies to purchase real estate, automobiles, an interest in a yacht and other purchases or transfers of the Iranian funds.
The U.S. embargo on Iran, which is enforced through IEEPA and the ITSR, prohibits the export of goods, technology, and services to Iran with very limited exceptions.
An arraignment date has not been set.
U.S. Attorney Loeffler commended the IRS-Criminal Investigation and the FBI for the investigation of 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.
Two Men Indicted for Trafficking Methamphetamine Bound for Utqiaġvik (Formerly Barrow)Read the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that two Anchorage men were indicted by a federal grand jury in Anchorage for trafficking in methamphetamine bound for Utqiaġvik, Alaska (formerly Barrow, Alaska).
The two defendants named in the indictment are Maurice Abad Malabed, aka “Moe,” 47, and David Patrick Christensen, 29, both of Anchorage. According to the indictment, Malabed and Christensen conspired and attempted to distribute and to possess with the intent to distribute 50 grams and more of a mixture or substance containing a detectible amount of methamphetamine.
According to the criminal complaint filed in federal court last week, on Dec. 7, 2016, law enforcement intercepted a parcel addressed to Christensen, which contained approximately four ounces of methamphetamine, and thereafter effected a controlled delivery of the package. Malabed and Christensen were both arrested on Dec. 7, 2016, when they took possession of the parcel outside Christensen’s Anchorage residence. The underlying investigation revealed that, among other things, between approximately Nov. 29 and Dec. 7, 2016, Malabed had arranged for the shipment of roughly 135 grams of methamphetamine from California to Anchorage, with Christensen’s assistance, and that the methamphetamine was ultimately bound for Utqiaġvik.
Assistant U.S. Attorney Andrea Hattan, who presented the case to the grand jury, indicated that the law provides for a minimum of five years and a maximum total sentence of 40 years in prison, a fine of $5,000,000, or both, for each of the two charged offenses. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
The Drug Enforcement Administration (DEA), Alaska State Troopers Statewide Drug Enforcement Unit (AST SDEU), and the North Slope Bureau Police Department (NSBPD) jointly 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 Man Charged with Conspiring to Provide Unlawful Services to Iran and International Money Laundering ConspiracyRead the Press Release
Kenneth Zong, 77, of Anchorage Alaska, was named as the sole defendant in the 47-count indictment charging him with conspiracy to violate the International Emergency Economic Powers Act (IEEPA), unlawful provision of services to Iran, money laundering conspiracy and money laundering.
The announcement was made by U.S. Attorney Karen L. Loeffler for the District of Alaska.
The indictment alleges that at an undetermined time, Zong left Alaska for Seoul, South Korea, and operated businesses there. From January 2011 through at least April 2014, Zong and four co-conspirators – three Iranian nationals and one U.S. citizen – allegedly conspired to evade the prohibitions of IEEPA and Iranian Transactions and Sanctions Regulations (ITSR) by engaging in false, fictitious and fraudulent transactions which were designed to unlawfully convert and remove Iranian owned funds, equivalent to approximately $1 billion United States dollars (USD). These funds were held in controlled Korean bank accounts and converted into more easily tradeable currencies, such as dollars and/or euros, by defrauding the Korean regulators into thinking the transactions were legitimate.
Zong is charged with transferring those currencies to more than 10 countries around the world, including the U.S., United Arab Emirates, Switzerland, Germany, Austria and Italy. Zong received payment for these acts from the Iranian nationals in an amount from $10 million to $17 million USD.
The indictment alleges that the scheme began in 2011, when Zong changed the name of his Korean company, “KSI Ejder, Inc.” (KSI) to “Anchore.” Zong used KSI/Anchore as a conduit to convert and distribute Iranian funds into USD and/or euros, by fictitiously selling marble tiles and other construction supplies to an Iranian shell company in Kish Island, Iran. KSI/Anchore fictitiously purchased Italian marble tiles and other construction supplies from “MSL & Co Investment Trading” (MSL Investment Dubai), an Iranian-controlled shell company in Dubai, which were then fictitiously shipped directly to another fictitious company in Iran.
Zong and his co-conspirators created false and fictitious contracts, bills of lading and invoices to show Korean government banking regulators that the Iranian company owed KSI/Anchore for the false marble purchases. This resulted in the transfer of Iranian funds, at the direction of Zong’s co-conspirators, from the restricted Iranian bank account to Zong’s KSI/Anchore account. Zong then transferred the funds to entities and individuals throughout the world.
Zong is also charged with 43 counts of money laundering and one count of money laundering conspiracy for his actions in connection with the $10 million dollar fee paid to him by his Iranian associates. In furtherance of the scheme, Zong transferred $10 million of his fees from Korea to a co-conspirator who resided in Anchorage. This individual also created and operated various companies to be used as front companies to purchase real estate, automobiles, an interest in a yacht and other purchases or transfers of the Iranian funds.
The U.S. embargo on Iran, which is enforced through IEEPA and the ITSR, prohibits the export of goods, technology, and services to Iran with very limited exceptions.
An arraignment date has not been set.
U.S. Attorney Loeffler commended the IRS-Criminal Investigation and the FBI for the investigation of 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 Husband and Wife Convicted of Wire Fraud for Faking BurglaryRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a jury in Anchorage found Arnold Wesley Flowers, II, and his wife, Miranda May Flowers, guilty of 12 counts of wire fraud as part of their scheme to defraud State Farm Insurance.
Arnold Wesley Flowers, II, age 41, and Miranda May Flowers, age 31, both of Anchorage, were tried before U.S. District Judge Sharon L. Gleason. Both Mr. and Mrs. Flowers were convicted of all 12 charged counts of wire fraud.
The evidence established that on the night of January 17, 2016, the Flowers moved several items from their home into a storage unit located at Best Storage on Tudor Road in Anchorage. These items included several big screen television sets, jewelry, clothing, shoes, designer handbags and sunglasses, video games, computers, and other electronics. On January 18-19, the Flowers staged a burglary at their home on Larkspur Circle and claimed in their report to the Anchorage Police that the items they previously put in storage had been stolen in a burglary of their home. The Flowers held a renter's insurance policy with State Farm Insurance. On January 25, the Flowers contacted State Farm Insurance and made a formal claim for reimbursement of the replacement cost of the items they had hidden in the storage unit on January 17, and that they claimed had been stolen on January 18-19.
The Flowers valued the falsely stolen or intentionally damaged property at over $82,000. The Flowers communicated this claim for loss to State Farm Insurance through multiple telephone calls and emails that originated in Alaska and were sent to claim investigators located at State Farm Insurance offices in the Lower 48 states and Hawaii.
Mr. Flowers was recently found guilty of possession of cocaine with intent to distribute and felon in possession of firearms, by another jury on October 19, 2016, in U.S. District Court in Anchorage, Alaska.
Assistant U.S. Attorney Kelly Cavanaugh and Assistant U.S. Attorney James Barkeley prosecuted the case for the United States. The State of Alaska Division of Insurance also dedicated an investigator to both the investigation and trial. Director Lori Wing-Heier of the State of Alaska Division of Insurance said: “This case demonstrates the Alaska Division of Insurance and its fraud investigation partners are dedicated to protecting Alaska consumers and investigating fraudulent activities.”
Ms. Loeffler commends the Anchorage Police Department, the Federal Bureau of Investigation Safe Streets Task Force, and the State of Alaska Division of Insurance for the investigation leading to the successful prosecution and conviction of Mr. and Mrs. Flowers. These agencies were also assisted by the Internal Revenue Service Criminal Investigative Division.
Anchorage Insurance Sales Woman Pleads Guilty to Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman pleaded guilty to federal charges for using personal information from former insurance clients to obtain money from banks under false pretenses.
Kara Hayden, Jr., 51, of Anchorage, pleaded guilty before U.S. District Court Judge Sharon L. Gleason to one count of bank fraud and one count of aggravated identity theft. Hayden is scheduled to be sentenced on March 3, 2017.
According to the plea agreement, from at least October 2014, to December 2015, Hayden applied for seventeen credit cards using the names, social security numbers, and dates of birth of nine different victims without their knowledge or authorization. Hayden successfully obtained two credit cards before the investigation of this case interrupted her scheme. The two credit cards were obtained using the personal identifying information of three of her former insurance clients. Hayden obtained approximately $14,500 in cash and retail goods prior to the discovery of her scheme.
Haden faces a statutory maximum sentence of 30 years in prison and a $1 million 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.
U.S. Attorney Loeffler commends the U.S. Postal Inspection Service, and the assistance from the Alaska State Troopers, for the investigation of this case.
Leader of Anchorage Drug Conspiracy Sentenced to PrisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Toa Danh “Tony” Ly, 45, resident of Anchorage, Alaska, was sentenced on Friday, December 2, by U.S. District Judge Sharon L. Gleason to 60 months in prison, to be followed by a five-year term of supervised release, for conspiring to distribute methamphetamine and heroin, and money laundering conspiracy.
According to court documents and arguments made during Friday’s sentencing hearing, starting in the summer of 2014, law enforcement began investigating several individuals implicated in the distribution of methamphetamine and heroin throughout Southcentral Alaska. As part of that investigation, law enforcement made numerous controlled purchases of methamphetamine and heroin from Ly and his co-conspirators. Between May 2014 and January 2015, Ly accepted delivery of pounds of methamphetamine and heroin, distributing those products directly and through his co-conspirators in Anchorage, the Valley, and the Kenai Peninsula. Proceeds from these drug sales were generally deposited into Wells Fargo bank accounts controlled by Ly. In total, during the seven months that the conspiracy existed, Ly made more than $500,000 from his illegal sale of drugs.
Judge Gleason based her sentence in numerous factors, including the nature and circumstances of the defendant’s conduct. According to Judge Gleason, the defendant’s sentence was appropriate because of the fact that the defendant was “the head guy [of the conspiracy], making tens of tens of thousands of dollars [with] lots of people working for him.” Judge Gleason also noted the powerful impact the defendant’s drug sales had on the community, and discussed how the drugs distributed by the defendant “ruined lives,” and made parents who were addicted want to get high more than they wanted to be with their own children. Judge Gleason stated that, the serious penalties required under the drug laws were in place precisely because of the harm that drugs do to families and communities.
Other defendants indicted as part of this investigation include:
- Renee Marie Davis pleaded guilty to conspiracy to distribute controlled substances. On Jan. 19, 2016, the court sentenced her to 72 months in prison.
- Adam Michael Cornelison pleaded guilty to use of a firearm in furtherance of a drug trafficking offense. On Feb. 9, 2016, the court sentenced him to 60 months in prison.
- Kasey Martinez pleaded guilty to money laundering conspiracy. On July 18, 2016, the court sentenced her to 40 months in prison.
- Pao Lee pleaded guilty to conspiracy to distribute controlled substances and distribution of controlled substances. Sentencing is set for Jan. 11, 2017.
- Robert Lee Rast pleaded guilty to conspiracy to distribute controlled substances. Sentencing is set for Jan. 20, 2017.
- Tracey Trujillo pleaded guilty to money laundering conspiracy. A motion to continue judgment and sentencing to the week of January 10 has been filed.
- On Nov. 1, 2016, a jury found Murville Lampkin guilty of conspiracy to distribute controlled substances, money laundering conspiracy, distribution of controlled substances, and possession of controlled substances with the intent to distribute. Sentencing is set for Feb. 15, 2017.
This case was investigated and prosecuted by the FBI Safe Streets Task Force, the Internal Revenue Service, and Assistant U.S. Attorney Kyle Reardon.
Former Evidence Custodian Sentenced to Prison for Embezzling $109,623 from North Slope Borough Police DepartmentRead the Press Release
Fairbanks, Alaska – U.S. Attorney Karen L. Loeffler announced that a Fairbanks woman was sentenced in federal court today for one count of interstate transportation of stolen property between 2011 and July 2012 related to her theft of over $100,000 from the evidence room at the North Slope Borough Police Department (NSBPD) in Barrow, Alaska.
Margaret Ann Solomon, 48, of Fairbanks, Alaska, was sentenced by U.S. District Judge Ralph R. Beistline to eight months in prison, three years supervised release, and ordered to pay restitution of $109,623 to the NSBPD.
According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, court documents show that Solomon worked for the NSBPD from November 2006 until July 16, 2012. Between approximately January 2011 and June 2012, Solomon was one of three Evidence Custodians assigned to work in the evidence room in Barrow. As a result, Solomon was responsible for and had control over the evidence room approximately every three weeks. As an evidence custodian, Solomon knew which evidence items contained cash and, during the weeks that she was assigned to work in the evidence room, Solomon stole cash from evidence items. Solomon did so by retrieving evidence envelopes when she was by herself in the evidence room and removing money from them. Solomon also took steps to conceal her thefts by, at times destroying envelopes and files.
During the time Solomon stole money from the evidence room, she deposited some of the money she stole into her account at Wells Fargo in Barrow to gamble online. For example, Solomon linked her Wells Fargo account to her Paypal account, and then used Paypal to electronically transfer the stolen funds from her Wells Fargo account to Facebook.
A 2014 audit of the evidence room conducted at the direction of the North Slope Borough determined that a minimum of $207,563.96 was missing from the evidence room at that time, and that 82 individual evidence items were missing money or were unaccounted for altogether. The audit, however, could not discern when the unaccounted for evidence items went missing or were removed from the evidence room. Furthermore, the precise amount of money that Solomon took from the evidence room is unknown. This is so for at least two reasons. First, Solomon did not keep track of either the amount of cash that she stole, or the evidence items from which she thieved. Second, NSBPD had poor controls for tracking evidence. For example, during business hours, the evidence room was often left open and unattended. The court concluded that the loss amount attributable to Solomon was $109,623 based on bank records showing that amount of unaccounted for cash deposits into Solomon’s bank account during her tenure with the NSBPD.
In sentencing Solomon, Judge Beistline emphasized the need to deter others from committing public corruption offenses, promote respect for the law, and to impose just punishment, noting that the sentence needed to carry consequences beyond Solomon simply “paying back the money.” Judge Beistline also noted that Solomon’s abuse of her position of public trust had spanned 18 months and had “hurt the police department, hurt the community, and potentially hurt victims.”
U.S. Attorney Loeffler commended the actions of the Federal Bureau of Investigation. She noted that “corruption within the criminal justice system will not be tolerated at any level.” This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Andrea Hattan.
Alaska Inmate Sentenced for Identity Theft and Filing False Income Tax ReturnsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Earl Worthy, 41, was sentenced to 70 months in prison for his role in a fraudulent tax refund scheme. The court also ordered Worthy to pay $159,628 in restitution to the IRS. Worthy pleaded guilty on May 9, 2016, to conspiracy to defraud the government, mail fraud, and aggravated identity theft. Worthy’s co-defendant, Tammy Jackson, was previously sentenced to five years of probation for her role in the conspiracy.
While an inmate at the Fairbanks Correctional Center, Worthy collected the names and social security numbers of individuals, many of whom were inmates. Between May 4, 2009, and Sept. 21, 2012, Worthy conspired with at least five others, chief among them Tammy Jackson, to use these identities to prepare and file false federal income tax returns with the purpose of obtaining a refund.
In some instances, the names and personal information used to file the false returns was obtained without permission. At other times, Worthy did obtain permission to use an individual’s name and information when he filed for the false tax refunds. Using the names and SSN’s of the various individuals, Worthy and Jackson prepared false individual income tax returns claiming false wages and withholding amounts listed on the tax returns for which there were no Forms W-2 issued. Worthy directed Jackson to use a template that listed amounts for wages, tax withholding, tax refund and other amounts that were essential to complete and file the tax return. Each return claimed that the taxpayer was owed thousands of dollars in refunds to which they were not entitled. In most instances, Worthy and Jackson forged the individuals' signatures on the tax returns.
Worthy and Jackson submitted the false individual income tax returns in paper. The tax returns were submitted using the addresses of the Fairbanks Correctional Center (FCC) and other addresses most of which were associated with Tammy Jackson. Many of the Treasury checks were mailed to the FCC. In other instances, Treasury checks were mailed to addresses associated with Tammy Jackson. Worthy directed Jackson to cash the fraudulent refund checks. Worthy and Jackson obtained signed Powers of Attorney to allow the cashing of the checks. At other times, the refunds for the false returns were deposited directly into a bank account under the control of Worthy or a co-conspirator. Worthy authorized the co-conspirators, including Jackson, to retain a portion of the money from the Treasury checks or direct deposits.
“Identity theft and tax refund fraud is a top priority for IRS Criminal Investigation. It is particularly disturbing when these crimes are carried out by those serving in a correctional facility,” stated Special Agent in Charge Darrell Waldon of IRS CI. “Alaska has had a recent string of refund schemes perpetrated by prisoners.”
"The Department of Corrections is dedicated to public safety and will always respect the rights and dignity of victims of crime. The successful investigation by DOC staff and our law enforcement partners which led to Mr. Worthy's conviction and sentencing shows our commitment in making sure laws are not broken inside in our institutions," stated Dean Williams, Commissioner, Alaska Department of Corrections.
The case was prosecuted by Assistant U.S. Attorney Steven Skrocki of the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), with the assistance of the State of Alaska Department of Corrections. For more information on ways to protect against identity theft and what to do if victimized by this crime, visit www.irs.gov.
Wasilla Man Indicted by Federal Grand Jury for Threatening Planned ParenthoodRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was indicted by a federal grand jury in Anchorage for using a telephone to make a threat to damage and destroy a building by means of an explosive.
Robert Joseph Klima, 52, of Wasilla, Alaska, is the sole defendant named in the one-count indictment.
According to court documents, on or about Nov. 6, 2016, Klima left three threatening voicemail messages for Planned Parenthood. In the first voicemail message, Klima stated that if Planned Parenthood performed an abortion for another individual, Klima would “treat you just as a murderer who murdered my child.” Klima also stated, “I can guarantee you I know what to do.” In the second voicemail message, Klima instructed Planned Parenthood to call him back to “avoid any kind of unpleasantries” that may result if an abortion was performed for that other individual. In the third voicemail message, Klima told Planned Parenthood “I got a message today and apparently there is an RPG trained on your position. I suggest not being open tomorrow.” On the same day, Klima texted another individual that “I have absolutely no problem killing someone who killed my child,” “I can and will put a bullet right through their forehead and go ahead and have coffee afterwards,” and “I don’t even care if you call the police to try and stop me because it won’t be able to. I’m going to kill the person who murdered my child and that’s that.”
Assistant U.S. Attorney Yvonne Lamoureux, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $250,000, or both. 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.
The FBI 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.
Anchorage Man Sentenced to 10 Months in Federal Prison for Medicaid and Social Security Fraud SchemesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Julio De La Cruz, 53, of Anchorage was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess to serve 10 months in federal prison for his part in a scheme to defraud the State of Alaska Medicaid Program out of approximately $64,000. In a separate case, Judge Burgess also sentenced De La Cruz to serve 10 months for defrauding the United States Social Security Administration out of approximately $37,000. De La Cruz was also ordered to serve three years of supervised release following his release from incarceration, and was ordered to pay restitution to the State of Alaska Medicaid Program and the U.S. Social Security Administration for the amounts of money which were misappropriated.
According to Assistant U.S. Attorney Joseph Bottini, De La Cruz participated in a scheme with a number of other individuals to falsify timesheets submitted to Medicaid for the payment of personal care assistant (PCA) services allegedly provided to enrolled Medicaid recipients. The Medicaid PCA program provides for the payment of certain services to those in financial need who are eligible to receive them – primarily the elderly or the permanently disabled. The PCA program covers services to assist with everyday living activities, such as bathing, dressing, toileting, transportation and shopping. The goal of the program is to allow the recipient to remain in their home rather than reside in an assisted living facility.
De La Cruz plead guilty earlier this year to conspiring with others to submit false timesheets for payment of PCA services when travel records showed that either the recipients or PCA providers were not in the United States. In the social security fraud case, De La Cruz similarly plead guilty earlier this year to participating in a scheme to have the U.S. Social Security Administration pay supplemental security income benefits to an individual who was not residing in the United States.
In imposing the prison sentences in each case, Judge Burgess noted that each of these social services programs are largely dependent on the honesty of those submitting claims for payment. Judge Burgess also noted that a sentence of incarceration for De La Cruz was important to send the message to the community that the abuse of such trust based systems will not be tolerated.
U.S. Attorney Loeffler commends the State of Alaska Medicaid Fraud Control Unit, the United States Social Security Administration, Office of Inspector General, Homeland Security Investigations, and the Federal Bureau of Investigation for the investigation of these cases.
Alaskan Oncologist Indicted for Tax EvasionRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler of the District of Alaska, and Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division announced today that Larry Lawson, a resident of Big Lake, Alaska, was indicted in October 2016, with one count of tax evasion for 2009. A superseding indictment was returned with additional charges of tax evasion for 2010, 2011, and 2012. Lawson was also charged with one count of obstructing and impeding the internal revenue laws.
Lawson was an oncologist who practiced under Midnight Sun Oncology Inc., an Alaskan business corporation. The superseding indictment alleges that Lawson attempted to evade his 2009 through 2012 individual income tax liabilities by filing false individual and corporate income tax returns that falsely claimed, among other things, charitable contributions. The superseding indictment further alleges that Lawson made a false statement to an Internal Revenue Service (IRS) agent during an audit of his 2009 and 2010 individual income tax returns by stating that he did not receive any items or property in return for money contributed to a non-profit Arizona corporation during those years. According to IRS rules and regulations, if an individual receives a benefit or items or property as a result of making a contribution to a qualified organization, the individual may deduct only the amount of the contribution that exceeds the value of the benefit or items or property received.
The superseding indictment alleges that Lawson created and used nominee entities to conceal his individual income. It further alleges that he created From the Vault Inc., a not-for-profit Alaska corporation, that he used as a nominee primarily to acquire and maintain his own personal collection of fossils, dinosaurs, maps, rare books, rare manuscripts, and related material.
If convicted, Lawson faces a statutory maximum sentence of five years in prison for each count of tax evasion and three years in prison for obstructing and impeding the internal revenue laws. Lawson also faces a period of supervised release and monetary penalties.
U.S. Attorney Loeffler and Principal Deputy Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Lori A. Hendrickson and Timothy M. Russo of the Tax Division and Assistant U.S. Attorney Retta-Rae Randall, who are prosecuting 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.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
California Woman Sentenced to Two Years in Prison for Drug Trafficking Crimes in KodiakRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Priscilla Ramirez, 27, of Stockton, California, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess to serve two years in prison for possession of heroin, methamphetamine, and cocaine with intent to distribute, followed by three years of supervised release. Judge Burgess also ordered the forfeiture of $4,500 in drug proceeds found in Ramirez’s possession.
In June 2016, in Kodiak, Alaska, Ramirez was contacted by the Kodiak Police, and a bag she had in her possession was searched. Inside the bag, police officers found 117 grams of heroin, 27 grams of methamphetamine, 6.9 grams of cocaine, and $4,500 in drug proceeds. Ramirez’s phone was also searched by law enforcement and there were several messages to and from Ramirez where she discussed quantities, types, and prices of illegal drugs for sale.
Prior to imposing sentence, Judge Burgess noted the seriousness of the crime given the type and quantity of illegal narcotics that were found in her possession for distribution.
U.S. Attorney Loeffler commends the Kodiak Police, the Kodiak Coast Guard Investigative Service, and the DEA for the successful investigation and prosecution of this case.
Anchorage Woman Sentenced to Eight Years in Prison for Participation in Heroin Trafficking ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was sentenced yesterday in federal court by U.S. District Judge Sharon L. Gleason for her role in a narcotics trafficking organization.
Rachel Rangel, 29, of Anchorage, Alaska, was sentenced to eight years, followed by five years of supervised release. On June 29, 2016, Rangel plead guilty to conspiring with others in Alaska and elsewhere to traffic over one kilogram of heroin into Alaska.
According to Assistant U.S. Attorney Timothy D. Edmonds, in the spring of 2014, Rangel developed a source of supply for heroin in southern California. Rangel then enlisted a number of women from Alaska and Florida to retrieve heroin from her source of supply and carry it to Anchorage via commercial airliner. Once Rangel received the heroin from her couriers, she and others in her organization would then resell the heroin in Anchorage for a profit. Rangel managed this operation for just over a year and was responsible for over one kilogram of heroin being smuggled into Alaska and sold.
At the sentencing, the court highlighted the harm Rangel had caused both to the end users of the heroin she was responsible for distributing as well as to the women who had carried the heroin on her behalf. The court also noted that Rangel’s conduct contributed to the current nationwide crisis of heroin addiction.
U.S. Attorney Loeffler commended the DEA, the FBI, the Alaska State Troopers, and the Anchorage Airport Police for the investigation of this case.
Anchorage Man Convicted of Drug and Money Laundering OffensesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that after an eight-day trial, a federal jury found Murville Lavelle Lampkin, 44, resident of Anchorage, Alaska, guilty yesterday of conspiracy to distribute methamphetamine and heroin, money laundering conspiracy, distribution of heroin, and possession with the intent to distribute methamphetamine.
According to the evidence at trial, starting in late spring 2014, Toa Danh “Tony” Ly began to distribute marijuana and methamphetamine in Anchorage, the Valley, and Kenai Peninsula. Ly later included heroin among the items he distributed. Proceeds from these drug sales were deposited in Wells Fargo bank accounts. Individuals who sold drugs and made deposits of drug money for Ly included Pao Lee, Rennie Davis, Robert Rast, Tracey Trujillo, Mark Hanes and Susan Bradshaw.
On Nov. 8, 2014, Anchorage Police arrested Davis and Rast. Shortly thereafter, Ly met Lampkin, who agreed to sell drugs and deposit money for him. Lampkin’s first deposits of drug proceeds occurred on Nov. 12, 2014. In total, Lampkin deposited $57,000 worth of drug proceeds into Wells Fargo bank accounts controlled by Ly.
On Jan. 8, 2015, an undercover informant working for the FBI called Ly and negotiated the purchase of a half-ounce of heroin for $1300. Ly told the informant to go to a McDonald’s restaurant in Anchorage. Ly told the informant that the “new guy Lamar” would meet him with the heroin, and that “Lamar” would be driving a silver Trailblazer. Two minutes after this phone call, Ly called Lampkin. After Ly received a text from the informant telling him that he had arrived at the McDonald’s, Ly called Lampkin to pass along the information. Three minutes later, Lampkin was observed leaving his residence and driving directly to the McDonald’s where he parked next to the informant. The informant got out of his vehicle and climbed into the Trailblazer. After introducing himself, Lampkin told the informant that Pao Lee was unavailable because he was “running around,” and that the defendant is going to “take care of things on this side of town[.]” After confirming the sale of a “half” – approximately 15 grams of heroin for $1300 – Lampkin told the informant to call “Tony” for future buys, and that Tony “will call [the defendant].”
On Jan. 14, 2015, law enforcement executed search warrants at multiple locations connected to the conspiracy. In a locked safe at the foot of Lampkin’s bed, law enforcement located approximately 400 grams of methamphetamine packaged into 15 individual Ziploc baggies. Also in the safe were smaller baggies into which doses of drugs could be packaged, and a digital scale used to measure drug quantities.
This is Lampkin’s third drug conviction. In 2002, Lampkin pled guilty in federal court to distribution and possession of cocaine with the intent to distribute. He was sentenced to 10 years in prison. While in custody, Lampkin was convicted in Alaska state court of promoting contraband in the first degree for possessing oxycodone and tetrahydrocannabinol.
Lampkin was the former bouncer at Rumrunners Old Towne Bar & Grill. In 2012, he was convicted in state court of fourth degree assault following a fight with a patron. Lampkin was sentenced in that case to two months in jail and two years of probation.
Lampkin is scheduled to be sentenced by U.S. District Judge Sharon L. Gleason on Jan. 12, 2017.
Because of his prior drug trafficking convictions, the maximum statutory penalty for a violation of 21 U.S.C. §§ 841(a)(1) and 846, Conspiracy to Distribute Controlled Substances, and Possession with the Intent to Distribute Methamphetamine is not less than 20 years to life, a fine of $20,000,000, a 10-year term of supervised release, and a $100 special assessment. The final sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The status of other defendants indicted as part of this case is as follows:
- Toa Danh “Tony” Ly pleaded guilty to conspiracy to distribute controlled substances and money laundering conspiracy. The sentencing hearing is set for Dec. 2, 2016.
- Pao Lee pleaded guilty to conspiracy to distribute controlled substances and distribution of controlled substances. The sentencing hearing is set for Dec. 7, 2016.
- Robert Lee Rast pleaded guilty to conspiracy to distribute controlled substances. The sentencing hearing is set for Jan. 20, 2017.
- Tracey Trujillo pleaded guilty to money laundering conspiracy. The sentencing hearing is set for Jan. 9, 2017.
- Renee Marie Davis pleaded guilty to conspiracy to distribute controlled substances. On Jan. 19, 2016, the Court sentenced her to six years in prison.
- Adam Michael Cornelison pleaded guilty to use of a firearm in furtherance of a drug trafficking offense. On Feb. 9, 2016, the Court sentenced him to five years in prison.
The case was the product of an investigation by the FBI’s Safe Streets Task Force, an FBI-led task force comprised of FBI Special Agents, Anchorage Police Department officers, Alaska State Troopers, and the United States Marshals. Assistance was also provided by the Internal Revenue Service, Criminal Investigation; APD’s Special Assignment Unit (SAU); and the Drug Enforcement Administration (DEA). Assistant U.S. Attorney Kyle Reardon prosecuted the case.
Kenai Man Sentenced for Unlawful Production of False Identification Documents, Aggravated Identity Theft, and Felon in Possession of FirearmsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that David Wayne Henry was sentenced yesterday in federal court by Chief U.S. District Judge Timothy M. Burgess for unlawful production of false identification documents, aggravated identity theft, and for being a felon in possession of firearms.
David Henry, 42, of Kenai, Alaska, was sentenced to 61 months in prison, followed by three years of supervised release. On May 19, 2016, Henry pled guilty to illegally obtaining and using the names, social security numbers, and dates of birth of other individuals to manufacture numerous different types of U.S. law enforcement, intelligence, and military identification documents and government credentials. Henry also pled guilty to possessing an AR-15 assault rifle and three semi-automatic pistols after having previously been convicted of felony crimes.
According to court documents, Henry illegally produced numerous false identification documents which appeared to be issued by federal agencies. The fake IDs reflected Henry’s photo, but the names and personal identifiers of other individuals. Some of the fake IDs were also in Henry’s own name. They consisted of ID cards for the FBI, the CIA, the Department of Defense, the U.S. Marine Corps, and the Department of Veterans Affairs. When Henry was arrested, he was also in possession of multiple firearms, even though he was prohibited from possessing firearms due to his four prior felony convictions.
At the sentencing hearing, the court noted the extremely serious nature of the offense. The court stated that identity theft has become an epidemic and has real serious consequences for victims. The court also noted the need to deter the defendant from committing future crimes and the need to protect the public from further crimes of the defendant. Henry was sentenced by Chief U.S. District judge
U.S. Attorney Loeffler commended the FBI, the ATF, the Alaska State Troopers, the Air Force Office of Special Investigations, the Kenai Police Department, and the State of Alaska Probation Office for the investigation of this case.
Press Release by United States Attorney Relating to November 2016 ElectionsRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that Assistant United States Attorney (AUSA) Kelly Cavanaugh will lead the efforts of the United States Attorney’s Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Cavanaugh has been appointed to serve as the District Election Officer (DEO) for the District of Alaska, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Loeffler said, “Every citizen must be able to vote without interference or discrimination, and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Loeffler stated that AUSA/DEO Cavanaugh will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (907) 271-5071.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (907) 276-4441.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Loeffler said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Anchorage Man Convicted of Possession of Cocaine with Intent to Distribute and Possession of Firearms as a FelonRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that, on Wednesday, October 19, 2016, a jury in Anchorage found Arnold Wesley Flowers, II, guilty of possession of cocaine with the intent to distribute and possession of firearms as a felon. The jury also agreed that Flowers should forfeit $19,275 in drug proceeds and two firearms.
Flowers, 41, of Anchorage, was by tried before U.S. District Judge Sharon L. Gleason in Anchorage.
Flowers was convicted of one count of possession of cocaine with intent to deliver and one count of being a felon in possession of firearms. Flowers was initially charged by indictment in April 2016, and then charged by a superseding indictment in May 2016, regarding an incident that occurred at his residence located in the Bayshore neighborhood of Anchorage.
Assistant U.S. Attorney Kelly Cavanaugh and Special Assistant U.S. Attorney Erin Bennett prosecuted the case for the United States.
The evidence established that APD officers arrived at Flowers’ house on March 29, 2016, with a search warrant. When the officers loudly announced their presence and ordered the residents to come out, everyone did except for Flowers. When APD officers went inside to get him, they found him coming from the upstairs master bedroom and bathroom area. In that bathroom, APD Vice Unit detectives found two ounces of cocaine packaged in clear, plastic sandwich baggies clogging the toilet. They also found another four ounces of cocaine – similarly packaged and dripping with water – hidden under the lining of the trashcan next to the toilet.
In Flowers’ adjacent master bedroom, detectives found two portable safes that held a total of $28,000 in cash. Each safe also held a loaded firearm: one Smith & Wesson .40 caliber handgun and one Glock 9 mm handgun with an extended magazine. One of the safes also smelled distinctly of cocaine. In the top drawer of a dresser in that bedroom, detectives found drug packaging materials: three boxes of sandwich baggies, a bag of rubber bands, and counterweights for balancing digital scales. The jury heard evidence that digital scales are used to weigh illegal drugs for sale. The drawer also had that distinct cocaine smell. In the kitchen, detectives found another box of sandwich baggies next to a digital scale.
The jury also heard evidence that Flowers had $1,275 in cash in the front pocket of his pants during the search. Flowers maintained that the cash in his pocket and his safes derived from sales of high-end watches. However, during the search of the residence, the APD officers did not find any watch inventory or documents that would support that Flowers was actively engaged in the sale of watches.
At the time of the search, Flowers had previously been convicted of a felony crime punishable by more than one year of imprisonment and was prohibited from the possession of firearms or ammunition.
Flowers and his wife, Miranda Flowers, await trial on charges of wire fraud. That trial is scheduled to commence in U.S. District Court in Anchorage, Alaska, on December 5, 2016.
Ms. Loeffler commended the Anchorage Police Department, the Federal Bureau of Investigation Safe Streets Task Force, the State of Alaska Division of Insurance, the Bureau of Alcohol, Tobacco, and Firearms, the Drug Enforcement Administration, and the Internal Revenue Service Criminal Investigations Section for the investigation leading to the successful prosecution and conviction of Flowers. The Municipality of Anchorage has partnered with the U.S. Attorney’s Office since 2007 to address violent crimes and drug crimes by supplying prosecutorial resources to the U.S. Attorney’s Office. Ms. Bennett is an Anchorage municipal prosecutor.
Sitka Couple Sentenced for Drug ConspiracyRead the Press Release
Anchorage, Alaska - United States Attorney Karen L. Loeffler announced today that on October 17, 2016, Luke Roderick Lowe and Marguarite Jean Keicher, both residents of Sitka, Alaska were sentenced in federal court in Juneau for their role in a drug trafficking conspiracy to distribute methamphetamine in Ketchikan, Alaska.
Lowe, 38, and Keicher, 39 were each sentenced by Chief United States District Court Judge Timothy M. Burgess to 120 months of imprisonment and five years of supervised release for their roles in the drug conspiracy and forfeited $1,524.00 in U.S. Currency and firearms involved in the offense. Lowe has been in federal custody since May 1, 2015, and Keicher has been in federal custody since April 22, 2015.
According to information presented to the court by Assistant United States Attorney Jack S. Schmidt, the defendants had moved to Ketchikan from Sitka, Alaska and began distributing methamphetamine from various sources who had obtained the drugs from the Lower 48 using various drug trafficking methods. After the methamphetamine was delivered to Ketchikan, the defendant distributed the drugs to others for subsequent distribution. During the investigation, the defendants’ residence was searched and law enforcement found a total of 72.9 grams of actual methamphetamine and a number of loaded firearms, specifically two semi-auto handguns located in the defendant’s backpacks, a revolver, and assault style rifle located in the defendant’s bedroom in their residence.
Prior to imposing sentence, Judge Burgess indicated the seriousness of the offense and the need to provided treatment as reasons for the sentence.
Ms. Loeffler commended the Drug Enforcement Agency (DEA), Federal Bureau of Investigation and the Ketchikan Police Department-Drug Unit for the investigation leading to the successful prosecution of the above listed defendants.
California Man Sentenced for Role in Drug and Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Robert Craggs was sentenced yesterday to 57 months in prison, followed by three years of supervised release. Craggs pleaded guilty on May 27, 2016, to conspiracy to distribute methamphetamine and heroin and conspiracy to launder money. Craggs’ co-conspirators were previously sentenced.
According to court documents, Craggs has a long history of violating the laws related to illegal drug possession, trafficking, and money laundering. Sometime between January 2013 and July 2014, Craggs entered into an agreement with Joseph Cecil to distribute methamphetamine and heroin throughout Alaska. Cecil, a long time drug trafficker, orchestrated a system wherein drugs were sent to Alaska from California. Craggs himself then took possession of these drugs with the intent to distribute them in Alaska communities.
Furthermore, Craggs conspired with Cecil to launder the proceeds of the drug sales in an attempt to conceal and disguise the nature, source, ownership, and control of the funds. Craggs and Stacy Johnson laundered money for Cecil knowing that the money represented the proceeds of drug sales. Craggs agreed with Cecil to use a series of bank accounts to move money made from the sale of heroin and methamphetamine. Proceeds were deposited in Alaska and withdrawn in California. In other instances, Cecil instructed Craggs and Johnson to send drug sale proceeds via Western Union and Money Gram wire transfers. This money laundering activity further supported the distribution of heroin and methamphetamine in Alaska.
Documents presented to the court noted, in part, “that methamphetamine and heroin trafficking is the latest form of the scourge that is drug trafficking. Both substances destroy lives. The social and moral condemnation associated with this crime is readily apparent. Drug trafficking has no socially redeeming quality. It is a crime that deserves the most severe form of social condemnation.”
The following co-conspirators have been sentenced as part of these efforts:
- Joseph Cecil, aka “Kevin Dupree,” previously sentenced to 10 years in prison for conspiracy to distribute methamphetamine and heroin, and conspiracy to launder money;
- Stacy Johnson, previously sentenced to 30 months in prison for conspiracy to launder money;
- Paul Robson, previously sentenced to 63 months in prison for distribution of methamphetamine;
- Jennifer Henry, previously sentenced to 60 months in prison for distribution of methamphetamine; and
- Shawn Seaman, previously sentenced to 57 months in prison for being a felon in possession of a firearm.
The case was prosecuted by Assistant U.S. Attorney Stephan Collins, Lead Organized Crime and Drug Enforcement Task Force Attorney for the District of Alaska. The case was investigated by the Organized Crime Drug Enforcement Task Force which includes the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service Criminal Investigation (IRS-CI), and Homeland Security Investigations (HSI).
Department of Justice Designates National Community Policing WeekRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that representatives from the U.S. Marshals Service, the U.S. Attorney’s Office, FBI, DEA, and ATF jointly held three events in Anchorage this week as part of National Community Policing Week.
As part of the Obama Administration’s commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice will lead nearly 400 events in support of community policing efforts around the country. To further that effort, President Obama has designated the week of Oct. 2-8, 2016, as National Community Policing Week. The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report.
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
Representatives from the U.S. Marshals Service, the U.S. Attorney’s Office, FBI, DEA, and ATF jointly held the following community policing events in Anchorage:
Presentations at FBI Citizens Academy
On Tuesday, Oct. 4, representatives from each law enforcement agency gave a 30-minute presentation at the FBI Citizens Academy. The presentations included an overview of each agency’s mission, work, and how the Department of Justice law enforcement agencies work together, specifically in the District of Alaska. Following the presentations, there was a Q&A session.
Child ID Event and Presentations
On Wednesday, Oct. 5, the U.S. Marshals Service, DEA, ATF, and FBI gave presentations at Northwood ABC Elementary to roughly 90 students about drug and firearm safety, as well as personal safety via the KidSmartz child safety program that educates families about preventing abductions and empowers kids to make safe choices. Following the presentations, the students were fingerprinted under the Child ID program through the National Center for Missing and Exploited Children. The fingerprinted cards were then sent home with the students, along with educational and awareness pamphlets about personal and internet safety, for their parents.
Kids Kitchen Event
On Thursday, Oct. 6, representatives from each law enforcement agency volunteered at Kids Kitchen, located at the Fairview Recreation Center, helping to set up, serve food, and clean up, while mentoring and interacting with over 65 children. Kids Kitchen is a nonprofit organization in Anchorage dedicated to providing nutritional meals at no cost for children. In addition to volunteering, the group donated food based off Kids Kitchen’s monthly food needs list online.
“This week and these events highlight our continuing work to further connect our citizens and law enforcement in our joint efforts to provide a safe and healthy environment in our communities,” said U.S. Attorney Loeffler.
Additional information can be found on www.kidsmartz.org and www.kidskitchen.wixsite.com/alaska. For more information on National Community Policing Week or the Community Policing Tour, please visit https://www.justice.gov/ag/community-policing-tour.
Anchorage Man Sentenced to 105 Total Months for Drug Trafficking and Firearms CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Mark Earl Pitoscia, 41, of Anchorage, was sentenced by Chief U.S. District Judge Timothy M. Burgess to serve 105 total months in prison for possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, followed by five years of supervised release. The court sentenced Pitoscia to 45 months in prison on count one, possession of methamphetamine with intent to distribute, followed by 60 months in prison on count two, possession of a firearm in furtherance of a drug trafficking crime, with the sentences to be served consecutively.
In November 2015, Pitoscia was seen in the Carrs grocery store parking lot in Wasilla, inside a vehicle, measuring methamphetamine on a digital scale. Pitoscia was searched and he was found in possession of 27 grams of actual methamphetamine, a digital scale, and a Glock handgun.
Prior to imposing sentence, Judge Burgess noted the seriousness of the crime given the quantity of methamphetamine and the presence of a firearm.
U.S. Attorney Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Alaska State Troopers for the successful investigation and prosecution of this case.
Anchorage Insurance Sales Woman Arrested on Charges of Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that an Anchorage woman has been taken into custody today on charges of two counts of Bank Fraud and two counts of Aggravated Identity Theft.
Kara Hayden, Jr., 50, of Anchorage, is charged in a four-count indictment with a scheme to obtain money from banks through fraudulent pretenses using personal information of former insurance clients to obtain credit cards.
According to Assistant U.S. Attorney Aunnie Steward, who presented the case against Kara Hayden to the grand jury, from at least October 2014 to December 2015, Hayden applied for seventeen credit cards using the names, social security numbers, and dates of birth of nine different victims without their knowledge or authorization. Hayden successfully obtained two credit cards before the investigation of this case interrupted her scheme. The two credit cards were obtained using the personal identifying information of three of her former insurance clients. Hayden obtained approximately $14,500 in cash and retail goods prior to the discovery of her scheme.
The law provides for a maximum sentence of 30 years’ incarceration and a $1 million 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.
“Postal Inspectors worked closely with the U.S. Attorney’s Office and the Alaska State Troopers on this investigation,” said Seattle Division Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service. “We take identity theft and the violation of customers’ trust very seriously and will continue to vigorously protect the U.S. Mail and customers against all forms of criminal attack and misuse.”
The U.S. Postal Inspection Service, assisted by the Alaska State Troopers, 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 guilty beyond a reasonable doubt.
Two Men Indicted for Series of Armed Robberies and Brandishing a Short-Barreled ShotgunRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that two men were indicted by a federal grand jury in Anchorage for multiple armed robberies including the armed robbery of Wells Fargo Bank on Aug. 18, 2016.
Kaleem Tikori Fredericks, 23, of Anchorage, and Calel Calvis Alexis Crofford, 23, of Dallas, Texas, were charged in an eight-count indictment that includes charges of armed bank robbery, brandishing a firearm during a crime of violence, conspiracy to commit interference with commerce by robbery, and interference with commerce by robbery, together with three forfeiture allegations.
According to the indictment, Fredericks and Crofford were armed with a short-barreled shotgun and a BB gun, which they used to intimidate bank personnel and customers, and obtained over $25,000 in bank funds during the robbery of Wells Fargo Bank on Aug. 18, 2016. In the week prior, Fredericks and Crofford had conspired to commit a series of armed robberies in Anchorage to include several liquor stores, a gas station, and on the morning of Aug. 18, they also robbed a jewelry store. Fredericks’ phone revealed internet searches for “mountain view robbery,” “how to rob banks,” “how to sell diamonds for cash,” and “anchorage for sale ‘guns.’”
The series of robberies as alleged in the indictment are as follows:
- Aug. 11, 2016 – Fredericks and Crofford robbed the Captain Sparrow Liquor Store located at 1100 W. Benson Boulevard, using a short-barreled shotgun;
- Aug. 14, 2016 – Fredericks and Crofford robbed the Brown Jug Liquor Store located at 525 W. Fireweed Lane, using a short-barreled shotgun;
- Aug. 15, 2016 – Fredericks and Crofford robbed the Tesoro Gas Station located at 545 Muldoon Road, using a short-barreled shotgun;
- Aug. 15. 2016 – Fredericks and Crofford robbed the Brown Jug Liquor Store located at 119 Klevin Street, using a short-barreled shotgun;
- Aug. 18, 2016 – Fredericks and Crofford robbed the Jewelry World kiosk at the Dimond Center Mall; and
- Aug. 18, 2016 – Fredericks and Crofford robbed Wells Fargo Bank, using a short-barreled shotgun and a BB gun.
The investigation revealed that on Aug. 18, Fredericks and Crofford drove to Girdwood, Alaska, and disposed of the short-barreled shotgun, a backpack, and some of the clothes worn during the armed robberies. On that same day, they had purchased airline tickets and traveled to the Ted Stevens International Airport together in order to flee to St. Thomas, Virgin Islands.
Assistant U.S. Attorney Yvonne Lamoureux, who presented the case to the grand jury, indicated that the law provides for a maximum sentence for the armed bank robbery of up to 25 years in prison, a fine of up to $250,000, or both, plus an additional 35 years on the gun charges. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
U.S. Attorney Loeffler commended the FBI, ATF, and APD, who conducted the investigation, as well as the Anchorage Airport Police for their assistance, 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.
Tennessee Corporation and Employees Sentenced for BriberyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Herschell Becker, John Becker a/k/a Jack Becker, and ADA Station Communication, Inc. were sentenced in federal court yesterday by U.S. District Judge Sharon L. Gleason, for bribing a public official.
Herschell Becker, 49, of Grandview, Tennessee, was sentenced to four years in prison, three years supervised release, and ordered to pay a fine of $150,000. Jack Becker, 54, of Crossville, Tennessee, was sentenced to two years in prison, three years supervised release, and ordered to pay a fine of $30,000. ADA Station Communication, Inc. was sentenced to five years’ probation with a special condition that the company fund and implement an Ethics and Compliance Program including hiring an independent third-party auditor, and ordered to pay a fine of $1 million.
On Aug. 27, 2015, ADA Station Communication, Inc. and Herschell Becker pled guilty to three counts of bribing a public official, and on Sept. 3, 2015, a federal jury convicted Jack Becker of the same conduct. The offenses occurred in June and August 2014.
ADA Station Communication, Inc. is a telecommunications company based in Crossville, Tennessee, which specializes in providing turnkey structured cabling infrastructures including analysis, design, engineering, installation, and maintenance of voice, video and data networks. Herschell Becker has been the Vice President and 50 percent owner of ADA Station Communication since 1995. Jack Becker, Herschell Becker’s brother, has been an employee of ADA Station Communication since approximately 2003.
According to court documents and trial testimony, ADA Station Communication was awarded subcontracts to install and upgrade fiber optic cables on Joint Base Elmendorf Richardson (JBER) during 2014 and 2015. On June 18, 2014, Herschell Becker and Jack Becker offered a United States Air Force official $10,000 to accept their deficient work as complete. The Air Force official promptly reported the bribe to law enforcement. Between Aug. 22 and 28, 2014, the Beckers offered and ultimately delivered a $5,000 bribe to the Air Force official to accept their most recent round of deficient work. On Aug. 28, 2014, Herschell Becker texted the Air Force official that if he could help them win the bid for the upcoming work next year, it would be well worth his while. The court concluded that the loss intended to be caused by the bribery was $850,000.
In sentencing the defendants, Judge Gleason pointed out the need to deter others from committing bribery. Judge Gleason noted that when things go wrong, “you don’t try to bribe officials.”
U.S. Attorney Loeffler commended the actions of the Air Force official and investigators. She noted that “corruption in public contracting and public works will not be tolerated at any level.” This case was investigated by the Air Force Office of Special Investigations. The case was prosecuted by Assistant U.S. Attorney Yvonne Lamoureux.
U.S. Attorney’s Office, FBI, and DEA to Present Heroin/Opioid Addiction Awareness Events in Alaskan CommunitiesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that representatives from the U.S. Attorney’s Office, FBI, and DEA are holding events this month in a series of rural Alaskan communities, as part of National Heroin and Opioid Awareness Week, to increase awareness about the dangers of opioids and heroin addiction.
The Obama Administration is announcing a “week of action” to raise awareness about the rising public health crisis caused by drug overdoses. As part of this effort, the Department of Justice designated the week of Sept. 18-24, 2016, as National Heroin and Opioid Awareness Week. Heroin and Opioid Awareness Week gives us the chance to educate the public about the dangers of heroin and opioid abuse, as well as how everyone can participate in the effort to help stop the epidemic that is killing so many of our children, friends and neighbors. For those communities hardest hit by this epidemic it is truly terrifying, and it is spreading rapidly across the country, including Alaskan communities.
Here in Alaska, we are holding a series of community events. Each will feature a screening of “Chasing the Dragon,” a documentary film collaboratively produced by the FBI and DEA, which depicts the harsh reality of heroin and opioid addiction. The film was designed to better educate students and young adults about these drugs’ dangers and the tragic consequences that often accompany them. The film will be followed by an interactive community discussion with federal, state, and local law enforcement partners, as well as behavioral health and medical professionals, about the issues that the film raises and how this epidemic is impacting Alaskan communities.
In addition, similar presentations are being held in schools in each community the U.S. Attorney’s Office, FBI, and DEA are visiting as part of this initiative.
Earlier this month, events were held in Kotzebue for the Northwest Arctic Borough School District’s Youth Leaders Program, and Kotzebue Middle/High School. Yesterday, in Barrow, events were held for Barrow High School students, and the community.
Future community events are listed below:
HEROIN/OPIOID AWARENESS EVENT IN BETHEL, ALASKA
WHEN: MONDAY, SEPTEMBER 19, 2016; 5:30-7:30 p.m.
WHERE: Bethel City Hall, Council Chambers, 300 State Highway, Bethel, Alaska
HEROIN/OPIOID AWARENESS EVENT IN KETCHIKAN, ALASKA
WHEN: TUESDAY, SEPTEMBER 20, 2016; 5:00-7:30 p.m.
WHERE: Discovery Center, 50 Main Street, Ketchikan, Alaska
HEROIN/OPIOID AWARENESS EVENT IN NOME, ALASKA
WHEN: THURSDAY, SEPTEMBER 22, 2016; 5:30-7:30 p.m.
WHERE: Nome Eskimo Community Trigg Hall, 200 W. 5th Avenue, Nome, Alaska
HEROIN/OPIOID AWARENESS EVENT IN KODIAK, ALASKA
WHEN: WEDNESDAY, SEPTEMBER 28, 2016; 7:00-9:30 p.m.
WHERE: Kodiak High School Auditorium, 917 Rezanof East, Kodiak, Alaska
HEROIN/OPIOID AWARENESS EVENT IN PETERSBURGH, ALASKA
WHEN: (Date/time TBD)
WHERE: Petersburg High School, 109 Charles W St., Petersburg, Alaska 99833
Additional events are being planned this fall in other Alaskan communities.
U.S. Attorney Loeffler commends the Alaska State Troopers and local law enforcement partners, as well as the behavioral and medical health professionals, in each of these communities for their assistance with these events.
Note: Additional Resources and guidance can be found at: www.FBI.gov/ChasingTheDragon.
Press inquiries regarding logistics should be directed to Chloe Martin at [email protected].
Washington Man Arrested, Charged with Defrauding Alaskans Out of Approximately $2.7 MillionRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Washington man has been charged in Alaska with 11 counts of wire fraud and eight counts of money laundering. His wife has been charged with one count of social security fraud in Washington. They were both arrested this morning in Washington.
Floyd Jay Mann, Jr., 55, of Puyallup, Washington, is charged in a 19-count indictment returned in Anchorage with a scheme to defraud victims in Alaska. His wife, Cheryl Mann, 51, also of Puyallup, Washington, is charged with one count of defrauding the Social Security Administration in an indictment returned in Seattle, Washington.
According to Assistant U.S. Attorney Aunnie Steward, who presented the case against Floyd Mann to the Alaska grand jury, Floyd Jay Mann, Jr. defrauded Alaskans 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 with a pharmaceutical company. Mann told victims that if they helped to pay Mann’s medical bills and other lawsuit-related expenses, the victims would be paid back plus a substantial return on their money when Mann’s multimillion-dollar settlement was released by the court. In fact, Mann did not use the victim’s money to pay medical bills and there was no lawsuit settlement, and instead Mann used the money he obtained from the victims to gamble at a casino and win over $1 million over the course of the scheme.
According to Special Assistant U.S. Attorney Benjamin Diggs, who presented the case against Cheryl Mann to the Western District of Washington grand jury, during the course of Floyd Mann’s scheme, he and his wife Cheryl Mann and their son collected approximately $56,000 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 at a casino. That income, as well as the funds obtained by her husband, would have disqualified the Manns from the public assistance they received.
For Floyd Mann’s charges, the law provides for a maximum sentence of 20 years’ incarceration and a $500,000 fine or both. For Cheryl Mann’s charge the law provides for a maximum sentence of five years’ incarceration 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.
“Fraud comes in all shapes and sizes, but this particular fraud is rather peculiar. The accused not only bilked millions of dollars from Alaskans in a well-concocted scheme, they further squandered the ill-gotten gains on gambling all while collecting Social Security benefits for which they no longer qualified. Unfortunately for the defendants, IRS CI Special Agents are expertly and uniquely skilled to follow the money in these and other types of financial crimes,” stated Special Agent in Charge Darrell Waldon of IRC Criminal Investigation.
The IRS Criminal Investigations, FBI, and Social Security 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 guilty beyond a reasonable doubt.
Three Prison Inmates Sentenced for Filing False Tax Refund ClaimsRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that Jesse Scott Wilson, 41, was sentenced by U.S. District Judge Sharon Gleason to a total of 92 months in prison, followed by three years’ supervised release. Wilson had pled guilty to conspiracy to defraud the government with respect to tax refund claims on Feb. 26, 2016. In addition to his prison sentence, Wilson was ordered to pay restitution in the amount of $384,892.
Wilson was convicted of participating in a conspiracy to obtain tax refunds by filing fraudulent income tax returns. Between September 2008 and June 2012, Wilson and his co-conspirators prepared and submitted approximately 428 false tax returns claiming refunds of approximately $681,258.
At the sentencing hearing, U.S. District Judge Sharon Gleason pointed out the need for the sentence to address the severity of the crime and deter others in prison from committing similar crimes. Court documents revealed that Wilson conspired with his co-defendants and fellow prison inmates William Wesley Hines, aka Speedy, 54, Jason Donald Schmidlkofer, 34, and Nick Lewis Thurmond, 30, to obtain the names and social security numbers (SSNs) of individuals, many of whom were also inmates at correctional facilities. Wilson, Hines, Schmidlkofer, and Thurmond were State of Alaska prisoners who were incarcerated together at Red Rock Correctional Center in Eloy, Arizona, at the beginning of the conspiracy. Wilson and his co-conspirators prepared and filed false individual income tax returns using the names and SSNs of approximately 210 individuals. Wilson and his co-conspirators prepared false individual income tax returns claiming false wages and withholding amounts listed on the tax returns for which there were no Forms W-2 issued. Each return claimed that the taxpayer was owed thousands of dollars in refunds to which they were not entitled. The conspirators forged the individuals’ signatures on the tax returns and used their own personal addresses and fake addresses on the tax returns. The conspirators mailed the false income tax returns to the IRS. Wilson and his co-conspirators retained a portion of the money from the refunds, and then wired or mailed the remainder of the refunds to other co-conspirators.
Wilson, Hines, and Schmidlkofer are residents of Alaska. Thurmond is currently a resident of Colorado. Wilson, Hines, Schmidlkofer, and Thurmond were indicted by a federal grand jury in December 2015 for conspiracy to defraud the government with respect to false claims. Their current status is as follows:
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Hines pled guilty to conspiracy to defraud the government with respect to claims in May 2016 and was sentenced to 51 months in prison on Aug. 2, 2016;
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Schmidlkofer pled guilty to conspiracy to defraud the government with respect to claims in March 2016 and was sentenced to 56 months in prison on July 8, 2016; and
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Thurmond pled guilty to conspiracy to defraud the government with respect to claims in July 2016 and is scheduled to be sentenced on Oct. 5, 2016.
This investigation was an expansion of another prisoner tax refund scheme investigation involving Steven McComb, Michael Sexton, Paulando Williams, and Helen Maloney. Those defendants all pled guilty and were sentenced as follows:
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McComb pled guilty to conspiracy to defraud the government with respect to claims, mail fraud, and aggravated identity theft in June 2013 and was sentenced to nine years in prison on Aug. 22, 2013;
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Sexton pled guilty to conspiracy to defraud the government with respect to claims, mail fraud, and aggravated identity theft in December 2013 and was sentenced to 80 months in prison on Feb. 18, 2014;
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Williams pled guilty to conspiracy to defraud the government with respect to claims, mail fraud, and aggravated identity theft in June 2013 and was sentenced to 66 months in prison on Nov. 6, 2013; and
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Maloney pled guilty to conspiracy to defraud the government with respect to claims and mail fraud in April 2013 and was sentenced to 28 months in prison on July 2, 2013.
“The vast majority of Americans work hard and pay their taxes. A scheme to defraud the IRS like this takes money from all legitimate taxpayers,” stated Acting U.S. Attorney Bryan Schroder. “Plus, this scheme used identity theft as its vehicle. In the modern electronic age, identity theft rightly concerns all citizens. The U.S. Attorney’s Office in the District of Alaska, along with our law enforcement partners, is dedicated to protecting the earnings of hard-working Alaskans from fraud and theft.”
“For IRS Criminal Investigation, identity theft is a top priority which we will diligently pursue no matter where it hides. This investigation shows that this particular crime knows no boundaries as the victims of this fraud scheme were inmates in a correctional facility, a fact that makes this scheme especially troublesome,” stated Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. “We warn all people everywhere to safeguard their private information and beware that would-be identity thieves are constantly lurking and looking for victims.”
Mr. Schroder commends the Internal Revenue Service, Criminal Investigation, State of Alaska Department of Corrections, and the Colorado Department of Corrections Office of the Inspector General for the successful investigation and prosecution of this case.
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Anchorage Man Sentenced for Child Pornography CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Wallen Olrun, Jr., 30, a resident of Anchorage, Alaska, was sentenced yesterday by U.S. District Judge Timothy M. Burgess to five years in prison, to be followed by a 20-year term of supervised release, for possession of child pornography. Olrun pleaded guilty to the charge on March 29, 2016.
According to court documents and arguments made during yesterday’s sentencing hearing, on June 28, 2015, law enforcement connected with the defendant’s computer through an internet file-sharing service and downloaded five files of child pornography. A second connection with the defendant’s computer was made on July 5, 2015. During this second session, the FBI downloaded a file of child pornography.
On Aug. 6, 2015, law enforcement executed a search of the defendant’s residence. Located on the defendant’s phone and computer were 3,500 files of child pornography, including images of children as young as 2 to 4 years old, as well as images and videos showing sadistic and masochistic conduct. During a later interview, the defendant admitted to searching for and downloading images of child pornography, saying that he started downloading images from the internet in 2010.
In sentencing the defendant, Judge Burgess addressed the seriousness of the defendant’s crime, noting the impact the defendant’s downloading and possessing of child pornography had on the victims shown in the images. “What you have done has had a tremendous impact on some of these children,” said Judge Burgess, “this is something they will have to live with for the rest of their lives.” According to Judge Burgess, the defendant’s crimes contributed to the marketplace of individuals molesting children, and taking pictures and videos of those acts. “The only reason this material is generated is because people like you like to look at it,” said Judge Burgess.
This case was investigated and prosecuted by the FBI Safe Streets Task Force, and the Alaska Internet Crimes Against Children (ICAC) Task Force. The Alaska ICAC is a task force managed by the Anchorage Police Department comprised of agents from federal, military, state, and local agencies. The purpose of the Alaska ICAC is to investigate online child exploitation crimes, including child pornography, enticement, and sex trafficking.
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 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, or contact the District of Alaska’s Project Safe Childhood Coordinator at (907) 271-5071.
Wasilla Man Sentenced for Child Pornography CrimesRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that Sergey Silver, 41, resident of Wasilla, Alaska, was sentenced today by United States District Judge Ralph R. Beistline to 66 months in prison, to be followed by a 15-year term of supervised release, for possession of child pornography in violation of 18 U.S.C. § 2252(a)(4)(B). Silver pleaded guilty to the charge on January 13, 2016.
According to court documents and arguments made during today’s sentencing hearing, between November 4, 2014, and January 22, 2015, law enforcement downloaded child pornography from the defendant’s computer through an online file-sharing program. On March 11, 2015, law enforcement searched the defendant’s residence. Located on the defendant’s computer was evidence that he had recently run wiping software to delete the contents of the device. Nonetheless, law enforcement was able to recover evidence of the defendant’s use of a file-sharing program, and the names of approximately 200 files of child pornography that the defendant had downloaded and saved to his computer prior to March 11, 2015. Among these files were the images downloaded by law enforcement.
In sentencing the defendant, Judge Beistline discussed the nature and circumstances of the defendant’s conduct, including the impact the defendant’s crimes had on the minors depicted in the images that he traded. The images possessed by the defendant showed “victims being abused and being filmed…this is tragic,” said Judge Beistline. Judge Beistline’s sentence also recognized that the defendant’s online activities created a “market” for images of child pornography. According to Judge Beistline, the defendant’s sentence was intended to “protect victims so we have a safer community in which to raise our children.”
This case was investigated and prosecuted by the FBI Safe Streets Task Force, and the Alaska Internet Crimes Against Children (ICAC) Task Force. The Alaska ICAC is a federally and state funded task force managed by the Anchorage Police Department comprised of agents from federal, military, state, and local agencies. The purpose of the Alaska ICAC is to investigate online child exploitation crimes, including child pornography, enticement, and sex trafficking.
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 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, or contact the District of Alaska’s Project Safe Childhood Coordinator at (907) 271-5071.
Wasilla Woman Sentenced to Six Months Community Confinement, Five Years Probation, and 240 Hours of Community Service for $72,560 Federal Grant FraudRead the Press Release
Anchorage, Alaska — U.S. Attorney Karen L. Loeffler announced today that a Wasilla woman was sentenced in federal court in Anchorage for two counts of making false claims to the United States Department of Agriculture (USDA).
Crystal Jean Boze, 39, of Wasilla, Alaska, was sentenced today by Chief U.S. District Judge Timothy Burgess to five years of probation, including six months’ community confinement, 240 hours of community service, and restitution in the amount of $61,415.
According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, Boze’s company, Green Winter Farms LLC (a farming company located in Palmer, Alaska), was awarded a $72,103 grant by the USDA Natural Resources Conservation Service in 2012, and a $49,689 grant by USDA Rural Development in 2013. The grants required Boze to pay for items in advance, then seek reimbursement from USDA. Boze was also required to certify that each claim for reimbursement was accurate. Prior to submitting the false claims at issue in this case, USDA personnel explicitly told Boze that advances of grant funds were not permitted.
Nevertheless, three times between February 2013 and June 2013, Boze knowingly made and presented three false and fraudulent claims to USDA seeking payment of USDA grant funds. In support of each of her false claims, Boze also knowingly presented false and fraudulent purchase invoices as supporting documentation for each claim. The USDA disbursed a total of $48,610 to Boze before her fraud was discovered. Boze’s fraud also caused a $12,805 loss to a small Colorado vendor from which Boze obtained grant funds to purchase a green house, but failed to pay. As part of her sentence, Boze must pay full restitution, plus post-judgment interest, to both USDA and the Colorado vendor.
U.S. Attorney Loeffler commended the Federal Bureau of Investigation (FBI) and the USDA for their investigation of this case.
Sex Offender Sentenced to Life ImprisonmentRead the Press Release
Juneau, Alaska – United States Attorney Karen L. Loeffler announced today that Thomas Schopp, 52, resident of Juneau, Alaska, was sentenced today by United States District Judge Timothy M. Burgess to life imprisonment for production of child pornography in violation of 18 U.S.C. § 2251(a)(1).
Schopp had two prior convictions in state court for child molestation. In those case, Schopp was identified as Thomas Hiser. On January 29, 1988, Schopp (Hiser) was convicted of six counts of sexual assault in the first degree and was sentenced to five years in prison. On May 17, 1993, Schopp (Hiser) was convicted of two counts of sexual abuse of a minor in the first degree, three counts of sexual abuse of a minor in the second degree, and one count of attempted sexual abuse in the third degree, and was sentenced to 26 years in prison.
According to documents filed in this case and arguments made at today’s sentencing hearing, Schopp met Juvenile A, providing the minor with gifts over the course of several months, to include a cell phone. In February 2014, Schopp invited Juvenile A to his residence. At the residence, Schopp videotaped the minor engaging in sexually explicit conduct.
Schopp then traveled with Juvenile A to Reno, Nevada. Once in Reno, Schopp was arrested and detained. While detained, the defendant attempted to recruit individuals he knew to recover a computer and cell phone that he had been traveling with – and which contained the child pornographic images Schopp had produced – and to destroy those items.
In sentencing the defendant, Judge Burgess noted that Schopp had been arrested and sentenced to prison on two prior occasions for molesting at least nine children who had previously been in his care, and that a life term of imprisonment was the only way he could protect the community from the defendant. Judge Burgess said, “you go to jail for 26 years and you get out and here we are again. I don’t think there is anything I can do to deter you. Nothing.” According to Judge Burgess, “the only way I can [protect the public] is to sentence you to life.”
This case was investigated and prosecuted by the FBI in Anchorage and Juneau, Alaska, and Reno, Nevada. Assistance was provided by the State of Alaska Department of Corrections, Division of Probation and Parole, and the Washoe County (Nevada) Sheriff’s Department. Assistant United States Attorney Kyle Reardon prosecuted the 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 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, or contact the District of Alaska’s Project Safe Childhood Coordinator at (907) 271-5071.
Fairbanks Man Sentenced for Child Pornography CrimesRead the Press Release
Fairbanks, Alaska – United States Attorney Karen L. Loeffler announced today that Michael Gray, Jr., 35, resident of Fairbanks, Alaska, was sentenced on Friday, July 29, 2016, by United States District Judge Ralph R. Beistline to 77 months in prison, to be followed by a 15-year term of supervised release, for possession of child pornography in violation of 18 U.S.C. § 2252(a)(4)(B).
According to documents filed in the case, on June 26 and 29, 2015, law enforcement identified the defendant’s computer using an Internet file-sharing network to distribute files of child pornography. The videos being shared by the defendant through the file-sharing network were between three and 20 minutes long, and showed prepubescent females between the ages of eight and 12 being sexually molested by adult males. In three of the videos, there are scenes of sadistic and masochistic conduct.
Law enforcement searched the defendant’s residence in Fairbanks, Alaska on September 3, 2015. A forensic examination of the defendant’s computer located files of child pornography, including images and videos of minors under the age of 12, as well as images and videos showing sadistic and masochistic conduct.
In a statement to law enforcement at the time of the search, the defendant admitted to knowingly using search terms associated with child pornography to search the file-sharing network for images and videos of child pornography. The defendant described that he engaged in a pattern of downloading files of child pornography through the Internet, viewing those files, and then deleting those files from his computer. The defendant admitted to having approximately 250 images and videos of child pornography on his computer at the time law enforcement seized it from him.
This case was investigated and prosecuted by the FBI Safe Streets Task Force, and the Alaska Internet Crimes Against Children (ICAC) Task Force. The Alaska ICAC is a federally and state funded task force managed by the Anchorage Police Department comprised of agents from federal, military, state, and local agencies. The purpose of the Alaska ICAC is to investigate online child exploitation crimes, including child pornography, enticement, and sex trafficking.
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 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, or contact the District of Alaska’s Project Safe Childhood Coordinator at (907) 271-5071.
Skagway Man Sentenced to 12 Months and One Day in Prison for Failure to Pay TaxesRead the Press Release
Juneau, Alaska – U.S. Attorney Karen L. Loeffler announced today that DANIEL HENRY, 61, of Skagway, was sentenced by Chief U.S. District Judge Timothy M. Burgess on Monday, August 1, 2016, to serve 12 months and one day in prison for his convictions on four counts of willful failure to file income tax returns, Judge Burgess also ordered HENRY to pay $600,064 in restitution.
HENRY is the owner and operator of the Skagway Fish Company, a restaurant in Skagway, Alaska, HENRY is also an elected member of the Municipal Assembly in Skagway. For the years 2004-2012, HENRY did not file a federal income tax return. The amount of accumulated taxes Henry would have had to pay during that time period was $600,064.
In his comments prior to imposing the sentence, Judge Burgess described this as a serious offense given the amount of money involved and the time period that HENRY did not file income tax returns.
This matter was prosecuted by Assistant United States Attorney Jack Schmidt out of the U.S. Attorney's Office in Juneau, Alaska.
“The vast majority of citizens of our great country file a timely and accurate tax return. When someone does not, they not only cheat themselves and their government, but all honest taxpayers. Failing to file and pay a just tax shifts the burden to the rest of us by robbing us all of the funds needed for essential services, infrastructure, and the defense of our homeland. IRS CI and the Department of Justice are committed to fighting for the honest taxpayers by prosecuting tax cheats, thus maintaining a level playing field,” stated Special Agent in Charge Darrell Waldon of IRS Criminal Investigation.
U.S. Attorney Loeffler commends the Internal Revenue Service Criminal Investigations, for the successful investigation and prosecution of this case.
Anchorage Man Sentenced to 96 Months in Prison for Role in Drug Trafficking Conspiracy and Felon in Possession of FirearmsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Martin Ray Lewis, 49, of Anchorage, was sentenced by Chief U.S. District Judge Timothy M. Burgess to serve 96 months in prison for his role in a drug trafficking and money laundering conspiracy, followed by five years of supervised release. Lewis was also sentenced to 70 months in prison for being a felon in possession of firearms, followed by three years of supervised release. Both sentences are to be served concurrently.
On July 26, 2013, Lewis received a package that contained 110 grams of methamphetamine at a private mail box in Anchorage registered to him and another person. A previous package sent to the same mailbox contained 190 grams of heroin. Both of these packages were sent from California. Lewis' residence was searched by law enforcement immediately after he returned with the package and law enforcement found evidence of drug trafficking including packaging used in drug sales, smaller quantities of packaged methamphetamine, digital scales, and several drug smoking devices. Law enforcement also found six firearms. Lewis has a previous felony conviction that was punishable by more than one year imprisonment.
U.S. Attorney Loeffler commends the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigations, the Department of Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, for the successful investigation and prosecution of this case.
Bank Embezzler ArrestedRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Shanice Mano, 23, of Anchorage, Alaska, was arrested on July 25, 2016, and was arraigned yesterday in federal court on a criminal complaint charging her with bank embezzlement. The complaint alleges that she had embezzled over $100,000 from her former employer, Credit Union 1.
According to the complaint, Mano was a teller at Credit Union 1 when she accessed customer accounts without authority and transferred money to accounts that she had control over and from which she was able to make withdrawals.
The law provides for a maximum sentence of 30 years in prison and a fine of $1 million 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 FBI conducted the investigation leading to the arrest.
A 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 guilty beyond a reasonable doubt.
U.S. Attorney Appoints New First Assistant U.S. Attorney for the District of AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Assistant U.S. Attorney, Bryan Schroder has been appointed to the position of First Assistant U.S. Attorney (FAUSA) and Criminal Chief for the United States Attorney’s Office, District of Alaska. Mr. Schroder replaces FAUSA Kevin Feldis, who has taken the position as the Resident Legal Advisor for the Department of Justice, Office of Professional Development and Training (OPDAT), for Jakarta, Indonesia. Mr. Feldis will be working with the United States Embassy in Jakarta on a temporary detail and will remain as a member of the United States Attorney’s office for Alaska.
Bryan Schroder has been an Assistant U.S. Attorney since 2005, and is a retired U.S. Coast Guard Captain. He is a 1981 graduate of the U.S. Coast Guard Academy, and 1991 graduate of the University of Washington School of Law. He served 24 years in the Coast Guard, initially in operational assignments in Seattle, Long Beach, California, and San Diego. He then served as a judge advocate in Juneau, Anchorage, Miami, New York, and Colorado Springs. As an Assistant U.S. Attorney, he has handled cases involving drugs, guns, violent crime, fisheries, environmental crime, tax violations, and fraud.
Wasilla Man Sentenced for Bank RobberyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was sentenced by U.S. District Judge Sharon L. Gleason to 95 months in prison for bank robbery.
Wayne Michael Sexton, 45, of Wasilla, Alaska, was indicted by the grand jury in November 2015 for robbing Credit Union 1 located in the Midtown region of Anchorage, on Aug. 7, 2015. Sexton, who has been in custody for the robbery since Nov. 9, 2015, has been detained in the Anchorage jail without bail. Sexton has a prior conviction for two bank robberies which he committed in 1999.
According to Assistant U.S. Attorney Steven Skrocki, Sexton carried and pointed a revolver at bank personnel, took over the entire bank lobby area, threatened and intimidated bank personnel and pilfered each teller station one at a time. During the robbery, Sexton obtained more than $17,000 in cash.
In sentencing Sexton to a term of 95 months, the court noted the impact of the crime on the victim tellers, Sexton’s display of a pistol during the robbery, the threat to the public and Sexton’s inability to avoid a life of crime. Sexton told the court the robbery was “an act of a coward.” Sexton was also ordered by the court to pay $17,730 to Credit Union 1 in restitution.
U.S. Attorney Loeffler commends the Federal Bureau of Investigation and the Alaska State Troopers for the investigation of this case.
Former Airman Sentenced for Child Pornography CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Ryan Lannen, 34, resident of Anchorage, Alaska, was sentenced yesterday by U.S. District Judge Sharon L. Gleason to 78 months in prison, to be followed by a 15-year term of supervised release, for two counts of distribution of child pornography.
According to court documents and arguments made during the sentencing hearing, in March 2015, Twitter, Inc. reported to the National Center for Missing and Exploited Children (NCMEC) that an individual located in Anchorage, Alaska, had sent child pornography through the Internet on four occasions between January and March 2015. Anchorage Police Department (APD) identified the owner of the Twitter account as Lannen, an Airman at Joint Base Elmendorf Richardson (JBER), residing off post. APD obtained a state search warrant for Lannen and his residence. Located on Lannen’s phone were 29 images of child pornography.
Also located on the phone were multiple chats Lannen engaged in through the Kik Messenger application. Many of these chats involved the discussion of sexual acts with minors, or child pornography. During several of these chats, Lannen traded images of child pornography, including images of prepubescent minors as young as eight years old.
On at least five other Kik instances, Lannen chatted with individuals who identified themselves as minors. In four of these chats, Lannen said he was a 16-year-old girl, and attempted to obtain images from these other users.
Judge Gleason based her sentence in numerous factors, including the nature and circumstances of the defendant’s conduct, especially the impact the defendant’s crimes had on the minors depicted in the images that he traded. Judge Gleason noted particularly the harm caused to victims by not only their initial abuse, but also the recurring harm caused because of the fact that “photos [of their abuse] are getting passed around all over the Internet and discussed[.]” With her sentence of more than six years in prison , Judge Gleason also sought to “deter others from this criminal conduct.”
This case was investigated and prosecuted by the FBI Safe Streets Task Force, and the Alaska Internet Crimes Against Children (ICAC) Task Force. The Alaska ICAC is a federally and state funded task force managed by the APD, comprised of agents from federal, military, state, and local agencies. The purpose of the Alaska ICAC is to investigate online child exploitation crimes, including child pornography, enticement, and sex trafficking.
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 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, or contact the District of Alaska’s Project Safe Childhood Coordinator at (907) 271-5071.
Hillside Mail Thief Sentenced to 21 Months in JailRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that an Anchorage man was sentenced today in federal court to 21 months in prison for mail theft and credit card fraud.
Evan Mullen, 28, resident of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason, who also ordered Mullen to pay full restitution.
According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, that starting in December 2015, Mullen repeatedly stole mail from mailboxes of residents living in an Anchorage Hillside neighborhood. Mullen was specifically looking for credit cards but he also stole packages from these mailboxes and threw other opened mail on the ground. Mullen took the stolen credit cards and purchased gift cards and merchandise. Mullen continued this conduct up until the day before his arrest in February 2016. There were more than 10 victims of Mullen’s crimes including those who had their mail stolen and banks who absorbed the loss from the stolen credit cards. Efforts by the victims in the Hillside neighborhood to identify Mullen were extremely valuable to law enforcement in the investigation and prosecution of this case.
At sentencing, Judge Gleason noted the seriousness of the violation of the victims’ privacy when Mullen ransacked their private mail.
U.S. Attorney Loeffler commends the U.S. Postal Inspection Service and the Anchorage Police Department for the investigation of this case.
Anchorage Resident Indicted for Health Care Fraud SchemeRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was indicted in federal court on one count of committing a health care fraud scheme against the State of Alaska Medicaid program.
Mee Chong Collins, 70, a resident of Anchorage, was charged with executing a scheme involving the submission of numerous fraudulent timesheets beginning in February 2009 through June 2013, falsely claiming that her family members had provided personal care attendant services to four Medicaid recipients. According to the indictment, the services were not provided. It is further alleged that the fraudulent timesheets caused the payment of approximately $337,149.68 in Medicaid funds.
Medicaid is a joint federal and state program that covers health care expenses for low-income and disabled people. Personal care attendants enable Medicaid recipients to remain in their homes, rather than move to an assisted living facility.
The investigation leading to the indictment in this case was conducted by federal and state agencies, including the Federal Bureau of Investigation, the United States Department of Health and Human Services – Office of Inspector General, the Department of Homeland Security, and the State of Alaska Medicaid Fraud Control Unit.
An arraignment date for the defendant has not been set yet by the court.
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 Woman Sentenced for Role in Drug ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Kasey Jo Martinez, 32, resident of Anchorage, Alaska, was sentenced yesterday by U.S. District Judge Sharon L. Gleason to 40 months in prison, to be followed by a three-year term of supervised release, for money laundering.
According to court documents and arguments made during the sentencing hearing, starting in the summer of 2014, law enforcement began investigating several individuals implicated in the distribution of methamphetamine and heroin throughout Southcentral Alaska. As part of that investigation, law enforcement conducted surveillance at Fashion Nails, a nail salon owned by co-defendant Toa Danh “Tony” Ly. Proceeds from the sale of methamphetamine and heroin were generally deposited into Wells Fargo bank accounts controlled by Ly. These deposits were made by Martinez and others. These deposits were frequently made at Wells Fargo branches in Alaska, and Ly often withdrew the money at branches in the Seattle, Washington area.
On Jan. 14, 2015, searches were done at seven locations connected to Ly’s drug distribution conspiracy. Stopped in a Wells Fargo parking lot was co-conspirator Pao Lee; Martinez was in the vehicle with him. In her possession was $2,000 in drug proceeds that she was planning on depositing into Ly’s bank account.
A review of financial records for one of Ly’s Wells Fargo accounts showed three additional deposits of drug proceeds by Martinez between Dec. 12, 2014, and Jan. 10, 2015, totaling $19,500. In total, Martinez laundered or attempted to launder at least $21,500 in drug proceeds.
Including Martinez, at least seven other individuals have been implicated in this conspiracy. In total, those individuals have deposited more than $350,000 in suspected drug proceeds into accounts controlled by Ly.
Judge Gleason based her sentence in numerous factors, including the nature and circumstances of the defendant’s conduct and the defendant’s history and characteristics. Judge Gleason noted that while Martinez did not personally distribute drugs as part of the conspiracy, her role as a money launderer facilitated the distribution of methamphetamine and heroin in and around Anchorage. “It is hard to separate one from another,” said Judge Gleason. According to Judge Gleason, the defendant’s participation in the conspiracy impacted “mothers, daughters, fathers, and sons in the community” struggling with the issues brought about by illegal drugs.
Other defendants indicted as part of this investigation include:
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Toa Danh “Tony” Ly pleaded guilty to conspiracy to distribute controlled substances and money laundering conspiracy.Judgment and sentencing is set for Dec. 2, 2016.
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Pao Lee pleaded guilty to conspiracy to distribute controlled substances and distribution of controlled substances.Judgment and sentencing is set for Sept. 21, 2016.
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Renee Marie Davis pleaded guilty to conspiracy to distribute controlled substances.On Jan. 19, 2016, the court sentenced her to 72 months in prison.
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Robert Lee Rast pleaded guilty to conspiracy to distribute controlled substances. Judgment and sentencing is set for Nov. 1, 2016.
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Adam Michael Cornelison pleaded guilty to use of a firearm in furtherance of a drug trafficking offense.On Feb. 9, 2016, the court sentenced him to 60 months in prison.
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Murville Lavelle Lampkin and Tracey Elizabeth Trujillo are set for trial starting Oct. 18, 2016.
This case was investigated and prosecuted by the FBI Safe Streets Task Force, and Assistant U.S. Attorney Kyle Reardon.
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