District of Alaska
Press releases recorded for this federal judicial district.
Wasilla Man Indicted for Child Exploitation CrimeRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that a federal grand jury returned a two-count indictment against Justin Raymond Nekeferoff, 27, of Wasilla, Alaska, charging him with attempted sexual exploitation of a child – coercion and enticement of a minor.
According to court documents, between June 8, 2015, and July 22, 2015, Nekeferoff, using a facility and means of interstate and foreign commerce, did knowingly attempt to persuade, induce, entice, and coerce an individual who he believed had not attained the age of 18 years, to engage in any sexual activity for which any person can be charged with a criminal offense, to wit: Sexual Abuse of a Minor in the First Degree, in violation of Alaska Statute 11.41.434(a)(1).
The case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Audrey J. Renschen is prosecuting the case.
If convicted of attempted sexual exploitation of a child – coercion and enticement of a minor, Nekeferoff faces a statutory penalty of not less than 10 years and up to life imprisonment. The count also carries a fine of up to $250,000, as well as the possibility of a life time period of supervised release following any sentence of imprisonment. 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 charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Washington Resident Sentenced to 10 Years for Drug Trafficking, Possession of A Firearm in Furtherance of A Drug Trafficking Crime, and Being A Felon in Possession of A FirearmRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that a former Washington resident was sentenced to 120 months of imprisonment for drug trafficking, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
Layten Scott Banchero, 29, a resident of Seattle, Washington, was sentenced Monday by U.S. District Court Judge Timothy M. Burgess in Juneau to 120 months of imprisonment followed by a five year term of supervised release. On April 6, 2015, Banchero pled guilty to a drug trafficking conspiracy, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
According to Assistant U.S. Attorney Jack Schmidt, who prosecuted the case, on or about May 11, 2014, Banchero entered into a drug trafficking conspiracy with other co-conspirators to bring methamphetamine and heroin from the lower 48 to Ketchikan, Alaska using various transportation methods. On June 13, 2014, Ketchikan Police were investigating another individual for a drug offense which subsequently led them to Banchero, who was residing in a local hotel room. During that contact, officers obtained a search warrant for Banchero’s room. Banchero was found to be in possession of 83.71 grams of actual methamphetamine and 30.1 grams of heroin, drug ledgers, a large amount of U.S. currency, and a loaded .357 magnum pistol. Banchero has a number of felony convictions from Washington and is prohibited from possessing firearms. During the investigation, it was discovered that Banchero had secured a local storage locker and law enforcement executed several warrants at that location. Officer’s discovered a number of other firearms and $24,000 in U.S. currency. Law enforcement seized a total of $38,533 in U.S. currency that was obtained from the sale of drugs and was forfeited as part of Banchero’s plea, along with the firearms seized from his storage locker and his room.
In sentencing Banchero, Judge Burgess noted the seriousness of the crime, the extensive criminal history of the defendant, deterrence of the defendant and others, and a need to protect the public as the reasons for sentence he imposed.
Ms. Loeffler commended the Drug Enforcement Administration, Ketchikan Police Department, and the Alaska State Troopers who conducted the investigation leading to the successful prosecution in this case.
Two Anakyuvuk Pass Women Indicted for Theft of Postal Funds and PropertyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two women from Anaktuvuk Pass were separately indicted by a federal grand jury in Anchorage for multiple counts of Misappropriation of Postal Funds.
According to Assistant U.S. Attorney Bryan Schroder, Dorothy Gordon was indicted on 23 counts related to theft of deposits from the Anaktuvuk Pass Post Office, as well as theft of cash on delivery (COD) funds. The total amount of theft charged for Gordon is over $70,000. Bernice Hart was charged in a separate indictment on 45 counts related to theft of deposits, theft of COD funds, and theft of money orders. The total amount of theft charged for Hart is over $40,000.
The charge of Misappropriation of Postal Funds carries a maximum sentence of five years imprisonment, or a fine of $250,000, or both. Under the federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.
Ms. Loeffler commends the U.S. Postal Service, Office of Inspector General for the investigation of this case. According to Joanne Yarbrough, Special Agent in Charge for the Western Area Field Office of the United States Postal Service Office of Inspector General, the vast majority of Postal Service employees are hardworking professional individuals dedicated to the furtherance of Postal Service operations. However, when employees violate the public trust, as alleged in this case, OIG agents will investigate those individuals aggressively and seek prosecution to the fullest extent of the law.
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.
Man Indicted for Kidnapping in FairbanksRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that a federal grand jury returned a two-count indictment against Michael Dewayne Bowen, Jr., 40, charging him with kidnapping two girls in North Pole, Alaska.
According to the Indictment, on August 1, 2015, Bowen willfully and unlawfully seized, confined, inveigled, decoyed, kidnapped, abducted, and carried away the two girls, ages 6 and 9 years old, using any means, facility and instrumentality of interstate and foreign commerce and transported them within the special jurisdiction of the United States.
The case was the product of an investigation by the Federal Bureau of Investigation and the North Pole Police Department. Assistant U.S. Attorney Audrey J. Renschen and U.S. Department of Justice Trial Attorney Jeffrey Zeeman are prosecuting the case.
If convicted of kidnapping, Bowen faces a minimum statutory penalty of 20 years, and up to life imprisonment, as to each count. Both counts also carry fines of up to $250,000, as well as the possibility of a life time period of supervised release following any sentence of imprisonment. 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 charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood initiative which was launched to protect children from exploitation.
North Pole Man Indicted by Federal Grand Jury on Drug Trafficking and Firearm ChargesRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that a North Pole man was indicted by a federal grand jury on drug and firearm charges.
Ray Don Groskreutz, 38, of North Pole, Alaska, was named in a two-count indictment, which alleges that Groskreutz possessed with the intent to distribute methamphetamine and heroin on July 27, 2015, and knowingly and intentionally possessed a handgun in furtherance of that drug trafficking crime. The United States is also seeking forfeiture of the .380 caliber handgun seized from Groskreutz’s person on July 27, 2015, along with 14 firearms and numerous rounds of ammunition seized from his van.
Assistant U.S. Attorney Andrea W. Hattan, who presented the case to the grand jury, indicated that, for the methamphetamine and heroin charge, Groskreutz faces a mandatory minimum sentence of five years and up to 40 years in prison, a fine of $5,000,000, or both. The firearm charge carries a mandatory minimum sentence of five years imprisonment, which must be consecutive to the drug trafficking crime, a fine of $250,000, or both. Under the federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant. Groskreutz is currently in custody on unrelated State charges.
The Drug Enforcement Administration and the Alaska State Troopers conducted the investigation leading to the indictment in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Juneau Resident Sentenced to 15 Years for Drug Trafficking and Possession of A Firearm in Furtherance of A Drug Trafficking CrimeRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that a former Juneau resident was sentenced to 180 months of imprisonment for drug trafficking and possession of a firearm in furtherance of a drug trafficking crime.
William Byron Benedict, 46, a resident of Juneau, Alaska, was sentenced yesterday by U.S. District Court Judge Timothy M. Burgess in Anchorage to 180 months of imprisonment followed by a five year term of supervised release. On April 6, 2015, Benedict pled guilty to one count of drug trafficking conspiracy and one count of being in possession of a firearm in furtherance of a drug trafficking crime.
According to Assistant U.S. Attorney Jack Schmidt, who prosecuted the case, on June 2, 2013, Benedict was contacted by DEA agents at the Seattle-Tacoma Airport while attempting to board a flight to Juneau, Alaska. The agents seized 64.9 grams of actual methamphetamine and 336.8 grams of heroin from Benedict. On April 22, 2014, law enforcement executed an arrest warrant at Benedict’s residence in Juneau and subsequently discovered multiple loaded firearms and eight grams of actual methamphetamine and 155.4 grams of heroin. Law enforcement also seized $12,272 in U.S. currency that was obtained from the sale of narcotics, which Benedict was required to forfeit as part of his plea, along with the firearms seized at his residence.
In sentencing Benedict, Judge Burgess noted the seriousness of the crime, the defendant’s extensive criminal history, deterrence of the defendant and others, and a need to protect the public as the reasons for the sentence he imposed.
Ms. Loeffler commended the Drug Enforcement Administration, Federal Bureau of Investigation, Port of Seattle Police Department, and Juneau Police Department – Metro Drug Unit who conducted the investigation leading to the successful prosecution in this case.
North Pole Man Indicted on Postal Embezzlement ChargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that the federal Grand Jury has indicted a North Pole man on a charge of theft of mail for embezzling prescription drugs from the United States Mail.
James H. Dzimitrowicz, Jr., 47, of North Pole, was indicted for taking packages out of the mail while employed at the Fairbanks main post office as a mail clerk. The packages are alleged to have contained prescription drugs being sent from pharmacies to patients in the Fairbanks area who had been prescribed those medications. The Indictment alleges the embezzlement continued from 2011 to 2014.
Dzimitrowicz is set to be arraigned on the charge on August 27, in the U. S. District Court in Fairbanks. 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.
Ms. Loeffler commends the U. S. Postal Service Office of Inspector General for the investigation of this case.
Alaskan Physician Convicted of Internet Child Pornography CrimesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that on July 28, 2015, a federal jury in Juneau, Alaska, convicted a physician from Wrangell, Alaska, of distributing and receiving child pornography.
Greg Alan Salard, 54, of Wrangell, Alaska, was found guilty after a six-day trial before U.S. District Judge Timothy Burgess. Sentencing has been scheduled for October 9, 2015, in Juneau. The maximum penalty for each count of conviction is not less than five years and up to 20 years imprisonment, a fine of $250,000, a five-year to life term of supervised release, and a $100 special assessment.
According to evidence presented at trial, starting in May 2014, an FBI investigation linked the defendant’s Internet Protocol (IP) address with the trading of child pornography through an online peer-to-peer (P2P) file-sharing network. Such P2P networks are commonly used by individuals seeking to acquire digital contraband, including child pornography, and copywrited movies, music, and books. Through their investigation of the network, law enforcement was able to connect to the defendant’s IP address on June 5, 2014, and download from the defendant’s computer a portion of a 4-minute video that showed an adult male molesting a four-year-old child. An additional observation of the defendant’s computer being on the network and making files of child pornography available to other users was made on October 1, 2014.
Based on the above information, law enforcement obtained a search warrant for the defendant’s residence. During surveillance of the property on the morning of October 15, 2014, law enforcement watched the defendant’s wife leave the property, leaving the defendant as the only occupant of the house. Shortly thereafter, the defendant started his P2P program and his IP address was observed offering a file of child pornography. This video showed sex scenes involving prepubescent children.
Police arrived at the defendant’s house approximately 10 minutes after his computer came online. After knocking on the door, it took approximately eight minutes for the defendant to answer. During the time that police waited for a response from the defendant, he was deleting files from his computer – including the file observed by police that morning, deleting his search history from his file-sharing program, and had started a program on his computer to erase files. This wiping software was 35 percent complete by the time police located the defendant’s computer and stopped it.
Pursuant to the terms of the search warrant, law enforcement seized the defendant’s laptop computer and searched it for evidence of child pornography. A computer forensic examiner was able to recover the deleted file that the defendant had offered to the P2P network on the morning of the search, as well as evidence that the defendant had played that video on his computer. Also located on the computer was evidence that the defendant had used multiple file-sharing programs to search for images of child pornography, had downloaded more than 500 files of child pornography between February 1, 2014, and October 15, 2014, had viewed those images through various media players located on his computer, and had deleted evidence of that illegal activity on at least four separate instances.
The defendant is currently charged in Caddo Parish, Louisiana with Aggravated Rape in violation of Louisiana Revised Statute (R.S.) 14:42. Specifically, he is alleged to have committed oral sexual intercourse with a victim under the age of 13. He is expected to be extradited to Louisiana to face that charge following his sentencing in the federal case.
This case was investigated by the FBI, with assistance from the U.S. Forest Service; Petersburg, Alaska Police Department; Wrangell, Alaska Police Department; and Juneau, Alaska Police Department. The case was prosecuted by Assistant U.S. Attorney Kyle Reardon and Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section.
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.
Michigan Man Convicted of Fraud and Aggravated identity Theft for Using Fake Charitable OrganizationsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that on July 27, 2015, a Michigan man was convicted by a jury of making numerous false statements, identity theft, and engaging in a scheme to operate fake charitable organizations.
Alan Michael Bartlett, 46, from Owosso, Michigan, was found guilty of two counts of mail fraud, 20 counts of bank fraud, five counts of wire fraud, five counts of false statements to the United States Postal Service, and five counts of aggravated identity theft.
Bartlett was tried before Chief United States District Court Judge Ralph R. Beistline, in Anchorage, Alaska.
The evidence presented at trial proved that Bartlett had established two businesses, United States Disabled Veterans, LLC, and United States Handicapped-Disadvantaged Services, LLC, whose alleged mission was “to help provide real jobs for disabled & disadvantaged Americans.” The companies claimed to sell products for donations, the orders for which would “provide jobs for the handicapped.” There were no “jobs,” and the donations received did not go to veterans or the disabled and disadvantaged. Instead, these companies were used by Bartlett between July 2011 and January 2012, in a scheme to defraud individuals and a financial institution in Alaska, and obtain additional monies belonging to individual donors.
The evidence at trial further showed that Bartlett solicited donations through telemarketing calls and through the mailing of brochures from his companies. Upon the receipt of small donations by check, Bartlett created counterfeit demand drafts using information printed on the solicited checks, including the financial institution name, financial institution routing number, and associated customer account number. He then negotiated the counterfeit demand drafts via fraudulent electronic payment transactions for his personal financial gain and benefit - investing in his E*Trade accounts, paying credit card bills, paying for Verizon Wireless telephone service, and paying on his defaulted student loan with the United States Department of Education. He also submitted forged power of attorney forms with falsified notary seals to the financial institution in an effort to get transactions that had been reversed by the financial institution for fraud, credited back to him.
Bartlett used personal identifying information obtained from people who sent donations thinking they were giving to charitable organizations, to submit false change of address requests to the United States Postal Service. He forged the signatures on the change of address requests and listed the street address of his residence in Owosso, MI, as the forwarding address. As a result, he received investment and financial information which should have gone directly to donors/victims.
Using the fabricated persona of a municipal law enforcement detective, Bartlett contacted one victim by telephone to dissuade the victim from reporting or providing additional information about Bartlett’s scheme to law enforcement.
Bartlett learned about the telemarketing business and obtained donor call lists when employed by telemarketing companies in Arizona in 2008; those companies were shut down in 2009 by the Federal Trade Commission for making false representations that that they were charities and that donations/purchases would go to help handicapped or disabled people.
Sentencing has been scheduled for October 19, 2015. The law provides for a maximum total sentence of 30 years in prison, and a fine of $250,000 on the fraud and false statement charges. The crime of aggravated identity theft requires a mandatory consecutive two year sentence upon each count of conviction, and a fine of $250,000. Under the federal sentencing statutes, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Ms. Loeffler commends the United States Postal Inspection Service for the investigation of this case.
Noorvik Man Charged with Burglary of United States Post OfficeRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that the grand jury has returned a one-count indictment charging a Noorvik man with one count of burglary of a United States Post Office.
Theodore Westlake, 18, of Noorvik, is charged in a one-count indictment with burglary of a United States Post Office.
According to Assistant U.S. Attorney Aunnie Steward who presented the case to the grand jury, Westlake forcibly entered the Noorvik Post Office to steal money on June 29, 2015.
The law provides for a maximum sentence of 5 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.
The United States Postal Inspection Service and 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 guilt beyond a reasonable doubt.
Anchorage School Teacher Charged with Defrauding Elderly WomanRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that an Anchorage woman has been charged with three counts of fraud and one count of identity theft.
Susanna Difranco, 52, of Anchorage, is charged in a four-count indictment with a scheme to defraud victim R.R. and steal her identity
According to Assistant U.S. Attorney Aunnie Steward who presented the case to the grand jury, the Indictment charges that for approximately one month, from March 2015 to April 2015, Difranco wrote checks and made transfers and withdrawals from R.R.’s bank account for Difranco’s personal benefit for a total of over $70,000. Difranco paid her personal credit card bill and her daughter’s college tuition, among other things, with R.R.’s money. R.R. is 77 years old and was not aware that Difranco had gained access to her bank account and was stealing her money. Difranco falsely told bank officials and others that she was helping to protect R.R.’s money from others who might steal it by moving it into a safety deposit box, when in fact she was stealing R.R.’s money and spending it for her personal benefit. F
The law provides for a maximum sentence of 20 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.
The United States Postal Inspection Service and the Anchorage Police Department together with the State of Alaska Office of Elder Fraud and Assistance conducted the investigation leading to the indictment in the case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Anchorage Couple Sentenced for Drug, Gun, and Money Laundering CrimesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage couple was sentenced on Friday, July 17, 2015, by United States District Court Judge Timothy M. Burgess to serve 135 months and 72 months respectively for their involvement in drug trafficking, money laundering, and gun crimes.
Daniel Martin Harris, 28, of Anchorage, Alaska, previously pled guilty to drug trafficking and money laundering crimes as well as being a convicted felon in possession of multiple firearms. Daniel’s wife, Sandra Luz Harris, 26, also of Anchorage, previously admitted maintaining the couple’s Anchorage home for the purpose of distributing methamphetamine and heroin.
According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted both cases, Daniel Harris was a longtime heroin and methamphetamine dealer in the Anchorage area. He regularly purchased both drugs on credit from his Anchorage-based supplier. After selling the drugs, Mr. Harris then kept the profits for himself. With these funds, he purchased vehicles, including a 1977 Corvette and a 1970 El Camino, as well as other items, which he later took affirmative steps to hide from law enforcement. Mr. Harris returned the remaining cash proceeds to his source in order to promote the parties’ continued drug trafficking. Over a six month period in 2013, Mr. Harris paid his supplier approximately $508,000 in cash drug proceeds. In October and November 2013, he paid his supplier an additional $75,000 in cash earned from selling heroin and methamphetamine.
In October 2013, federal investigators raided the Anchorage house where Mr. Harris’ supplier maintained his drug operation. During the search, investigators recovered five pounds of methamphetamine, five kilograms of cocaine, and tens of thousands of dollars in cash. They also seized a detailed drug ledger cataloguing Mr. Harris’ drug distribution and money laundering activities.
One month later, in November 2013, officers of the Anchorage Police Department (APD) responded to a 911 call from the trailer that Mr. Harris shared with his wife and young son. While at the residence, investigators discovered that the Harris couple had stored large quantities of heroin and methamphetamine as well as numerous items of drug paraphernalia, including milk jugs full of syringes used for injecting heroin, loaded syringes full of heroin, large amounts of cash, multiple digital scales, and a money counter. In the master bedroom, investigators discovered a backpack containing approximately 331 grams of methamphetamine, 372 grams of heroin, and a loaded handgun. Elsewhere inside, they found multiple additional firearms, including an AR-15 rifle and two semi-automatic pistols, a grinder containing more heroin, and other indicia of significant, large-scale drug trafficking activities.
In sentencing the couple, Judge Burgess noted the seriousness of their offenses and the need to protect the public. In Daniel Harris’ case, Judge Burgess specifically remarked that mixing guns and drugs is often a prescription for disaster. In sentencing Sandra Harris, who had no criminal history prior to becoming involved in her husband’s drug trafficking, Judge Burgess noted that there was a good chance that she could be rehabilitated but cautioned that the seriousness of her actions could not be ignored.
Following his release from custody, Daniel Harris will be on supervised release for a total of five years. The court also entered a money judgment against Mr. Harris in the amount of $583,000 – the total amount of drug money laundered as part of the case. Following her release, Sandra Harris will be on supervised release for three years, during which time she will have to complete 200 hours of community service. Mrs. Harris was not included in the money judgment as she was not directly involved in her husband’s money laundering crimes.
In announcing the sentences, U.S. Attorney Loeffler thanked the many agents whose work contributed to the cases. The cases were investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF), and included the work of agents from the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigations (IRS-CI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD).
Anchorage Man Sentenced to 6 Years for Drug TraffickingRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen Loeffler announced today that an Anchorage man has been sentenced by Senior United States District Court Judge H. Russel Holland to serve 72 months in federal prison for distributing methamphetamine on two separate occasions.
Boonchan Yang, a/k/a “Chowmein,” 22, of Anchorage, Alaska, was previously convicted by a jury of two separate drug trafficking crimes. He was found guilty of distributing $1100 worth of methamphetamine on June 19, 2014, as part of combined gun and drug transaction. Four months later, on October 3, 2014, Yang was involved in another drug sale involving an ounce of methamphetamine. The jury convicted him of two counts of distribution and possession with intent to distribute narcotics as a result of these actions.
According to Assistant United States Attorney Stephanie C. Courter, who prosecuted the case, the evidence at trial showed that on June 19, 2014, Yang arranged to sell an informant half an ounce of methamphetamine and an AK-47. Text messages and recorded telephone conversations played at trial captured Yang arranging the deal. Law enforcement also videotaped the deal itself, which allowed the trial jury to actually watch Yang committing the crime in real time.
On October 3, 2014, Yang was again involved in drug trafficking activity. On that day, the evidence at trial showed that Yang brought an ounce of methamphetamine to a store parking lot in Anchorage intending to sell it for $1700. When he was confronted by law enforcement, Yang tried unsuccessfully to hide the drugs inside the car where he was sitting. Inside the car, he also had dime baggies used for drug distribution and a digital scale.
At sentencing, Judge Holland also considered the fact that, between the two drug deals of which he was convicted, Yang was also involved in more drug related conduct. Specifically, on June 26, 2014, Yang was stopped by the Anchorage Police Department while in possession of methamphetamine, baggies used for drug distribution, and a handgun.
In sentencing Yang, Judge Holland noted the need for the sentence to promote respect for the law and protect the public from future drug trafficking crimes. He also remarked that the trajectory of Yang’s conduct was worrisome, calling Yang an intermediate level drug dealer whose conduct was made all the more dangerous given his introduction of firearms.
In announcing the sentence, U.S. Attorney Loeffler praised the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, IRS Criminal Investigations, and the Anchorage Police Department, whose investigative efforts led to Yang’s prosecution and conviction.
Two Men Sentenced for Burglarizing San Point Post OfficeRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen Loeffler announced today that two men were each sentenced by U.S. District Court Judge Timothy M. Burgess to serve 21 months in federal prison for burglarizing the post office in Sand Point, Alaska.
Sheldon Wilson Shuravloff, 21, and Keith Lee Wilson, Jr., 19, both of Sand Point, Alaska, previously pled guilty to burglarizing the Sand Point post office in the early morning hours of December 28, 2014. The burglary caused more than $15,000 in damage to the post office and shut down the facility for a week while the investigation and repairs were completed.
In shutting down the post office, Shuravloff and Wilson forced Sand Point residents to go without certain essentials for that time, including medicines, baby formula, and household items. A statement sent to the court by the Sand Point postmaster also noted that Shuravloff and Wilson’s actions caused delay in the delivery of fishing permits and fishing gear essential to the operation of the Sand Point fishing fleet – the main source of income in the small community.
Upon release from prison, both Shuravloff and Wilson will remain under court supervision for three years. During that time, both men will be required to complete 250 hours of community service and pay restitution to the United States Postal Service in the amount of $15,779.92.
In sentencing the men, Judge Burgess called the burglary an extremely serious crime that had a tremendous impact on the Sand Point community as a whole. Judge Burgess specifically noted the intangible harms suffered by the community as a result of the Shuravloff and Wilson’s actions. Finally, Judge Burgess cited the need to protect the public from future crimes of both defendants, noting that both men had amassed lengthy criminal records that stretched back to their early teens.
In announcing the sentence, U.S. Attorney Loeffler praised the United States Postal Inspection Service, the Sand Point Police Department, and the Alaska State Troopers for their investigation of the case.
Anchorage Woman Sentenced to 36 Months in Prison for Possessing A Silencer and Being A Drug User in Possession of FirearmsRead the Press Release
Anchorage Woman Sentenced To 36 Months In Prison For Possessing A Silencer And Being A Drug User In Possession Of Firearms
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Megan Lindsey O’Connor was sentenced in federal court in Anchorage for one count of being a drug user in possession of a firearm, and one count of possession of an unregistered firearm. O’Connor previously pled guilty to the charges on June 16, 2014.
O’Connor, 29, was sentenced Friday, June 26, 2015, by United States District Court Judge Sharon L. Gleason, to 36 months in prison.
According to Assistant U.S. Attorney Bryan Schroder, O’Connor is an admitted methamphetamine user, and is connected to convicted drug trafficker Max Jewett. Jewett was sentenced in federal court on May 20, 2015, to 10 years imprisonment. In the summer of 2013, O’Connor rented a storage unit. When law enforcement officers searched the storage unit on November 18, 2013, they found 77 firearms, 27 of which had been stolen in the previous year. When Jewett pled guilty, he admitted he regularly traded drugs for stolen property. In addition to the stolen guns, the law enforcement officers found a 17-inch sawed off shotgun, a fully automatic machine gun, and silenced .44 magnum rifle. O’Connor pled guilty to possessing the silencer on the rifle.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and the Anchorage Police Department for the investigation of this case.
Anchorage Man Sentenced to 18 Years in Prison for Drug Death of 14 Year-Old GirlRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Sean Michael Warner was sentenced in federal court in Anchorage for one count of distribution of heroin. Warner previously pled guilty on September 2, 2014 to distributing heroin. At that hearing, Warner admitted to personally injecting a 14-year-old minor with heroin on December 23, 2011. Warner also admitted that the injection of heroin caused the death of the minor, identified in court documents as J.D.
Warner, 29, was sentenced today by United States District Court Judge Sharon L. Gleason, to 18 years in prison.
According to Assistant U.S. Attorney Bryan Schroder, Warner injected J.D. twice during the evening of December 22, 2011, and into the early morning hours of December 23rd. When she later went into distress at approximately 9:30 a.m., Warner refused to call for assistance. He finally called 911 at 1:36 p.m. J.D. died on December 29, 2011.
In issuing the sentence, Judge Gleason recognized the grave seriousness of the offense of injecting the young victim with heroin, and especially disregarding her distress.
Ms. Loeffler stated, “This case and the tragedy of the death of this young victim highlights the scourge of heroin and the horrible impact it has on our community.”
Ms. Loeffler commends the Drug Enforcement Administration, the Anchorage Police Department, the U.S. Marshal’s Service, the Federal Bureau of Investigation (FBI), the FBI Laboratory, and the Kenai Police Department for the investigation of this case. This case was originally prosecuted in cooperation with the Anchorage District Attorney’s Office and the Alaska Department of Law.
Wasilla Man Sentenced to 12 Years in Prison for Sexual Exploitation of ChildrenRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was sentenced on Thursday, June 25, 2015, in Federal Court in Anchorage before United States District Judge Timothy M. Burgess to 144 months (12 years) imprisonment and 17 years of Supervised Release for sexual exploitation of children: distributing child pornography.
Daniel Clinton Piaskowski, 33, of Wasilla, was sentenced after pleading guilty for using social media, file sharing and instant messaging, on his computer and cell phone, to connect with other like-minded users, to download, receive and distribute child pornography that depicted prepubescent children engaged in sex acts. Evidence presented at the sentencing hearing showed that during one 18-day period alone – concluding on the day of his arrest – Piaskowski distributed 221 images of child pornography to twelve other males and chatted online with them about having sex with prepubescent children. During their communications, two of the males described themselves to Piaskowski as teen-aged minors.
Judge Burgess commented on the extremely serious consequences that burdened the child sexual exploitation victims involved. Judge Burgess also noted that the Internet has greatly expanded the market for producing child pornography world-wide [which in turn harms more children].
This case was investigated by the Federal Bureau of Investigation, and prosecuted by Assistant U.S. Attorney Audrey J. Renschen.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood (PSC) initiative which was launched to increase Federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children, including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
77-Year Sentence Imposed on Anchorage Man for Conviction for Drug Trafficking, Kidnapping, and Using Firearms in Furtherance of Those CrimesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that United States Chief District Court Judge Ralph R. Beistline sentenced an Anchorage man, Phosavan Khamnivong, a.k.a. “P.K.,” 34, to 77 years’ imprisonment following his February 2015 convictions on drug trafficking conspiracy, two kidnapping charges, and two firearm charges.
According to court documents, Khamnivong has a prior conviction for Murder in the Second Degree, for the 1997 killing of a Kodiak cab driver. Khamnivong served approximately ten years of a 25-year sentence in that case. Shortly after his release, he immersed himself in the world of drug trafficking, becoming a large scale distributor of heroin and methamphetamine. One of the people he distributed drugs to was “Victim A,” a friend that Khamnivong met while he was prison. In late 2012 to early 2013, the defendant became associated with Stuart Seugasala. The men started bringing nearly pure methamphetamine, as well as other drugs, into Alaska from California. On March 13, 2013, Seugasala, Khamnivong, Timothy Miller, a.k.a. “Lil Tone,” and Anoai Sialofi, a.k.a. “A-Loc,” kidnapped, tortured, and sexually assaulted Victims A and B, because Victim A owed Khamnivong a past due heroin debt. At Seugasala’s direction, the sexual assault of one of the victims was videotaped so that he could intimidate others that owed the group money. The victims were released after over three hours and only after Victim A agreed to repay the drug debt to Khamnivong.
On May 16, 2013, an Anchorage Police Officer attempted to pull over Khamnivong’s vehicle after Khamnivong met with Seugasala in Anchorage. Khamnivong provided his license and registration, but fled when the officer expressed an interest in searching Khamnivong’s vehicle. As he fled, Khamnivong hit two police cars and then threw a loaded firearm from his vehicle. The firearm was found by a citizen on the sidewalk near Steller Secondary School, and turned into police.
Khamnivong was indicted in the federal case in August 2013, and remained a fugitive until December 2013, when he was arrested by the U.S. Marshals Fugitive Task Force. At arrest, agents recovered more drugs, guns and money.
Judge Beistline previously sentenced Stuart Seugasala to life imprisonment after a jury trial. Judge Beistline also sentenced Stacy Laulu, who went to trial with Seugasala and was convicted of HIPAA violations, to two years imprisonment. Co-defendant Anoai Sialofi was sentenced to 235 months imprisonment and co-defendant Timothy Miller was sentenced to a term of 12 years imprisonment.
In imposing the 77-year sentence on Khamnivong, Judge Beistline noted the defendant’s long criminal history, beginning when he was a juvenile, which culminated with the murder of the innocent cab driver for seven dollars. Judge Beistline noted that “he would have paid more than seven dollars for a chance at life.”
Judge Beistline then noted that when Khamnivong was released, he set himself up as a “big time heroin dealer” in Anchorage, who associated with “Seugasala and other criminals.” In comparison to Seugasala, Judge Beistline stated that Khamnivong was “equally evil in his desires and designs,” noting that he showed no mercy to Victim A, but rather “showed sick cruelty” that “didn’t stop until he promised to pay.” After the crime, Judge Beistline commented that Khamnivong “ran and hid, surrounding himself with an arsenal of weapons and drugs.”
Judge Beistline noted that a 77-year sentence was appropriate because Khamnivong was a “heartless career criminal and a danger to the community,” and stated that he did not think “there was any chance” that Khamnivong would change.
Ms. Loeffler commends the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Anchorage Police Department, the Alaska State Troopers, and the Valdez Police Department for the investigation that led to the convictions in this case.
Fairbanks Priest Sentenced to 10 Years in Prison for Child Sex CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Clint Michael Landry, 58, of Fairbanks, Alaska, was sentenced on Friday, June 5, 2015, by Chief United States District Court Judge Ralph R. Beistline to 10 years in prison to be followed by a lifetime period of supervised release for Attempted Enticement of a Minor, in violation of 18 U.S.C. § 2422(b).
At the time of the offense, the defendant was employed as a priest with the Catholic Diocese in Fairbanks, Alaska. He had been in that position since June 2011.
According to the filed plea agreement and sentencing memoranda in the case, in May 2014, the defendant was caught using a work computer to receive images of child pornography through his Yahoo email account. A search of the computer found multiple sexually-explicit Instant Messages (IM) between the defendant and others believed to be located in the Philippines. In many of these IMs, the defendant is negotiating with a Filipino coconspirator about viewing sexually explicit conduct involving minors through webcams and Skype communications.
Between June 2013, and May 2014, the defendant engaged in negotiations with individuals in the Philippines for the purpose of viewing online sex shows. The defendant communicated with at least eight different Yahoo accounts for the purpose of viewing live videos through Skype or other streaming services of minors engaged in sexually explicit conduct. In at least three of these communications, the defendant sought access to sex shows involving children younger than 11 years old.
• On June 13, 2013, the defendant communicated with a coconspirator, asking “[c]an you show me young boys[?]” He went on to ask, “what handsome young boys do you have?” When told that the available “young boy” was 10 years old, the defendant’s response was “ok,” and he inquired “how much.” The defendant then attempted to offer 1600 Philippine pesos for online access to the child, or approximately $35.
• On July 26, 2013, the defendant initially resisted an offer to view an 11-year-old girl. However, when the only other option offered by the defendant’s coconspirator was an 18-year-old male, the defendant “ask[ed] for your young show,” and said that he would “send money tomorrow.”
• On August 7, 2013, the defendant wrote, “I like to see you boy or girl because they are cute. Only see on yahoo.” When told by his coconspirator that he had children available who were “10 and 8 yrs old,” the defendant replied, “I send you some western union tomorrow.”
In a message dated May 18, 2014, the defendant communicated directly with a person in the Philippines he believed to be a minor. During the chat, the individual said that it was his 16th birthday, and asked the defendant if he wanted to see a picture of the minor’s penis. The defendant replied, “yes.” The conversation continued with the defendant and the minor negotiating how much money the defendant would send to the minor in exchange for producing and transmitting through the Internet the live visual depiction of the minor engaged in sexually explicit conduct. The defendant ultimately drove to a Western Union branch in Fairbanks and wired $55 to the minor in order to entice him to perform the requested online sex show.
In addition, the defendant received images of child pornography through the Internet. On May 19, 2014, the defendant negotiated with a Yahoo user for child pornography. The defendant was told by the Yahoo user to send money for the images. The defendant requested from the Yahoo user “boy pics,” and wrote, “give me pics…boys and girls.” Soon after, the Yahoo user sent 12 emails with image and video files attached. The image and video files showed prepubescent girls and boys engaged in sexually explicit conduct, including sadistic and masochistic conduct.
At sentencing, Judge Beistline commented on the fact that child exploitation and pornography offenses like the defendant’s victimize children throughout the world, and the United States’ laws are a “desperate attempt” to put an end to the child pornography trade. “These children are pawns [who] have nothing else but to sell their bodies,” said Judge Beistline, and the victims “carry the burden [of their abuse] with them forever, for a lifetime.”
The defendant’s sentence, to include lifetime supervision that would include restrictions on his internet access, polygraph examinations, sex offender treatment, and lifetime sex offender registration, was driven by a desire to “deter” the defendant, to insure that he would never again hurt a child. “You are going to be watched forever,” said Judge Beistline, “you are never acting out again, never doing anything again to hurt children.” Judge Beistline was also troubled by the fact that the defendant “had a position of respect in the community” and that he violated the trust that his parish had placed in him.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon prosecuted the case.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood (PSC) initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Fairbanks Drug Dealer Sentenced to More Than 10 Years in PrisonRead the Press Release
Anchorage, Alaska — U.S. Attorney Karen K. Loeffler announced that Etienne Q. Devoe, 42, of Fairbanks, Alaska, was sentenced today by Chief United States District Judge Ralph R. Beistline to 126 months in prison to be followed by a five year term of supervised release for conspiring to distribute cocaine and heroin, and conspiring to launder the proceeds from the sale of those drugs.
According to the evidence at trial, Devoe was a drug dealer located in Fairbanks, Alaska. Between May 2, 2013, and June 13, 2013, law enforcement captured phone calls and text messages between Devoe and his co-conspirator, Steven N. Taylor. In those calls, Devoe and Taylor discussed their ongoing drug trafficking relationship. As part of that relationship, Taylor supplied cocaine and heroin to Devoe for distribution in and around the Fairbanks area. Devoe paid for those drugs by sending Taylor money through a checking account at a local bank.
On June 20, 2013, Fairbanks police responded to shooting at a rented house on Gillem Way. Devoe was found hiding in an upstairs bedroom closet at the residence, which he shared with his girlfriend. Also located in the residence were drug trafficking supplies, including packaging materials and an adulterant commonly used to cut cocaine prior to its resale.
This is Devoe’s second federal conviction for a drug trafficking offense. In February 2012, Devoe was found in possession of approximately six ounces of cocaine, along with packaging material. He was convicted of Possession of Cocaine with the Intent to Distribute and sentenced to 57 months imprisonment. The case number for that matter is 4:14-cr-00002-RRB.
At sentencing, Judge Beistline told the defendant it was “time to grow up,” commenting on the defendant’s long criminal history, which includes four convictions for domestic violence offenses, three convictions for driving-related offenses, two prior drug convictions, and a conviction for giving false statements to law enforcement. Judge Beistline also noted that the defendant has “no legitimate work history, and . . . eight children raised by other people.” There is “no indication [in your past] of a desire to obey the law or become a positive member of the community,” said Judge Beistline.
The sentence was also driven by the need to punish the defendant for the harm caused by his drug dealing. On several occasions, Judge Beistline commented on the fact that the defendant’s drug dealing “prey[ed] on others,” and “destroy[ed] the community.” The sentence of more than 10 years in federal prison was intended “to protect the public from drug dealers” like the defendant.
Devoe was indicted on June 16, 2014. Other defendants named in the Indictment include Taylor, James Brown, Sr., Leonard D. Charles, Shawn Cortez Cloyd, Timothy W. Northcutt, Joshua J. Haynes, Gabrielle P. Haynes, and Joseph E. Irving. Those defendants have been sentenced as follows:
Defendant
Crime of Conviction
Sentence
Joseph E. Irving
Pled guilty to money laundering conspiracy
21-months imprisonment, three years supervised release
Gabrielle P. Haynes
Pled guilty to drug conspiracy
18-months imprisonment, three years supervised release
Leonard D. Charles
Pled guilty to drug conspiracy
60-months imprisonment, five years supervised release
James Brown, Sr.
Pled guilty to drug conspiracy
56-months imprisonment, five years supervised release
Sean Cortez Cloyd
Pled guilty to drug conspiracy
36-months imprisonment, five years supervised release
Timothy W. Norcutt
Pled guilty to drug conspiracy and money laundering
72-months imprisonment, five years supervised release
Steven N. Taylor
Pled guilty to drug conspiracy and money laundering
Not yet sentenced
Joshua J. Haynes
Pled guilty to drug conspiracy
Not yet sentenced
“Drug trafficking is a harmful business,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigations. “Those who profit from the manufacturing and distribution of illicit substances will attract the vigilant watchful eye of IRS Special Agents who will use their unique financial investigative skills to dismantle criminal enterprises lurking in our communities.”
“It is time for Etienne Devoe to reap the legal consequences for his continued disregard for the law,” said DEA Acting Special Agent in Charge Douglas James. “As a result of his illegal actions, he has received over 10 years in prison, a fitting punishment for the crimes he has committed.”
The case was the product of an investigation by multiple law enforcement agencies, to include the Drug Enforcement Administration, the Internal Revenue Service, the FBI Safe Streets Task Force, Anchorage Police Department, Fairbanks Police Department, Alaska State Troopers, and the University of Alaska, Fairbanks Police. Assistant U.S. Attorneys Kelly Cavanaugh, Kyle Reardon, and Timothy Edmonds prosecuted the case.
Shipping Company Sentenced to Pay $750K for Dumping OilRead the Press Release
Anchorage, Alaska – Herm. Dauelsberg GmbH & Co. KG, a German company, was sentenced in federal court today to pay a total of $750,000 in fines and community service payments for violating the Act to Prevent Pollution from Ships by intentionally discharging 1,780 gallons of oily water into the sea off the coast of Alaska and then presenting false records to the U.S. Coast Guard.
Herm. Dauelsberg was also ordered to implement a comprehensive Environmental Compliance Plan and was placed on probation for three years. During the term of probation, Herm. Dauelsberg will be subject to a heightened level of scrutiny, including warrantless searches of its vessels and places of business based upon a reasonable suspicion that it is violating the law. Of the total payment, Herm. Dauelsberg will pay $600,000 in criminal fines and $150,000 in community restitution. The community restitution payment will go to the National Fish and Wildlife Foundation to be used for research, projects, and education designed to study and/or benefit the marine environment within the Exclusive Economic Zone of the United States off the coast of Alaska and/or the natural resources or wildlife contained therein near Alaska.
Defendant Herm. Dauelsberg is the operator of the Motor Vessel Lindavia. The M/V Lindavia is a cargo container ship, built in 1996, that operates under the flag of the Republic of Liberia. It is a vessel of 23,825 gross tons, has a displacement of 40,932 metric tons, and is 617 feet long. On February 11, 2015, the vessel arrived in Dutch Harbor, Alaska and was boarded by the United States Coast Guard on February 12, 2015.
Between January 27, 2015 and February 11, 2015, the M/V Lindavia travelled from South Korea, to China, and thereafter travelled through the Exclusive Economic Zone of the United States off the coast of Alaska arriving in Dutch Harbor, Alaska the night of February 11, 2015. As the operator of the M/V Lindavia, Herm. Dauelsberg was responsible for operating the Oil Water Separator (OWS) and maintaining an accurate Oil Record Book (ORB).
During the transit from China to Dutch Harbor, Alaska between January 31, 2015 and February 6, 2015, on at least five separate days, Herm. Dauelsberg knowingly discharged at least 1,430 gallons of oily water directly overboard. Crewmembers used a pump system with hoses fed down through an overboard discharge point to illegally discharge oily water directly overboard. Crewmembers pumped oily water from a cargo hold into 55-gallon drums on the main deck and then pumped the oily water from the 55-gallon drums through the hoses directly overboard. On February 11, 2015, while the vessel was approximately 100 miles off the coast of Dutch Harbor, Alaska, crewmembers operated the fixed hydraulic bilge system for the bilge under the cargo hold and knowingly discharged at least 350 gallons of oily water directly into the sea. This illegal discharge occurred within the United States’ Exclusive Economic Zone off the coast of Alaska into the Bering Sea.
Herm. Dauelsberg knowingly failed to record the discharges of oil into the sea in the M/V Lindavia’s ORB. Herm. Dauelsberg knowingly failed to maintain an accurate ORB as required by the Act to Prevent Pollution from Ships (APPS), and knowingly presented the false and fictitious ORB to the United States Coast Guard and had it available for inspection by the United States Coast Guard when the M/V Lindavia arrived in Dutch Harbor, Alaska on February 11, 2015. Herm. Dauelsberg knew that its use of the pump and hose system, its use of the cargo hold bilge system to discharge oil, and its failure to records the transfers and discharges of oil were illegal.
Herm. Dauelsberg was on probation at the time of these offenses. On April 4, 2014, Herm. Dauelsberg pled guilty in the Central District of California to Failing to Maintain an Accurate Oil Record Book, in violation of the Act to Prevent Pollution from Ships, and Failing to Report a Hazardous Condition Aboard a Vessel in violation of the Ports and Waterways Safety Act, related to Herm. Dauelsberg’s operation of the M/V Bellavia between August 2013 and October 2013. On April 28, 2014, Herm. Dauelsberg was sentenced to three years’ probation, a fine of $1,000,000, a community service payment of $250,000, and a special assessment of $800.
In Federal Court today, Herm. Dauelsberg also admitted that it violated a condition of its probation in the Central District of California case by committing a new violation of the law. Herm. Dauelsberg’s probation in that case has been revoked and a new three year term of probation has been imposed with a special condition that it fund and implement an Environmental Compliance Plan.
“This is the second conviction and sentence in the last 10 days stemming from the intentional and illegal discharge of oil from cargo ships into waters off the coast of Alaska,” said Kevin Feldis, First Assistant United States Attorney. “There is no excuse for this conduct. Companies that seek to profit from transporting cargo across the world’s oceans have a responsibility to likewise invest in following the law.” In this case, Feldis described that “35,000 gallons of heavy fuel oil leaked into the ship’s cargo hold because a bulkhead had corroded and a hole developed in a fuel tank. The ship left port in South Korea and headed to Alaska before this heavy fuel oil was cleaned from the bilge area below the cargo hold, ultimately resulting in the crew illegally and intentionally discharging a mix of sea water and heavy fuel oil that accumulated in that bilge area.”
The M/V Lindavia was initially inspected and detained in Dutch Harbor, Alaska by the United States Coast Guard marine inspectors. This case was investigated by the U.S. Coast Guard Investigative Service and the U.S. Environmental Protection Agency Criminal Investigation Division.
Anchorage Woman Sentenced to Two Years Imprisonment for HIPAA ViolationRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that on Friday, May 29, United States District Court Judge, Ralph R. Beistline, sentenced an Anchorage woman, Stacy Laulu, age 33, to two years imprisonment on her convictions for two felony violations of the Health Information Portability and Accountability Act (“HIPAA”). The case represented the first felony HIPAA prosecution in Alaska, and one of the few in the country.
Laulu was convicted after trial along with her co-defendant , Stuart Seugasala, who was recently sentenced to life imprisonment on convictions for Drug Conspiracy, Kidnapping, Use of Firearms in Furtherance of those crimes, and HIPAA violations.
According to prosecutors, at the time of the crimes, Laulu worked at Providence Hospital as a financial counselor. In that capacity, she had access to computerized medical records. The evidence at trial established that, in mid-March 2013, Seugasala contacted Laulu on her cellular telephone and asked her to check the medical records of two people he had victimized: one victim who had been sexually assaulted and another who had been shot by Seugasala. Laulu determined the identity of the victims (one of whom was still hospitalized), and provided Seugasala with confidential information about the victims, including what they had told hospital staff about how they sustained their injuries, the severity of the injuries, and what was reflected in hospital records about their cooperation with law enforcement. Laulu communicated this information through text messages to Seugasala.
Seugasala was stopped by the Anchorage Police Department (APD) in May 2013. At the request of the Drug Enforcement Administration (DEA), APD seized Seugasala’s cellular telephone. DEA agents later obtained a search warrant for this telephone, which revealed the texts between Seugasala and Laulu, which Seugasala had attempted to delete from his phone. Laulu was then confronted by DEA agents and admitted to sending the information to Seugasala. Providence Hospital was then notified and Laulu’s employment was terminated.
Evidence at trial established that Laulu’s husband was a close friend and former co-defendant with Seugasala in a federal drug case. At the time of her crimes, Laulu’s husband was awaiting trial on murder charges. Witnesses at Seugasala’s and Laulu’s trial testified that, at times, Seugasala would arrange to drop off drug proceeds for Laulu and her husband’s benefit.
In imposing a two-year sentence on Laulu, Judge Beistline stated that Laulu “displayed no respect for the law or the private and confidential information of the victims,” adding that “in this day and age, every human being expects private records to remain private.” In disclosing the private information to Seugasala, Judge Beistline noted that Laulu assisted Seugasala and his gang’s “lawless pursuits.”
Ms. Loeffler commends the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Anchorage Police Department, the Alaska State Troopers, and the Valdez Police Department for the investigation that led to the convictions in this case. Providence Hospital also provided valuable assistance in the form of records and testimony at trial.
Shipping Company Sentenced to Pay $800K for Dumping OilRead the Press Release
Anchorage, Alaska – AML Ship Management GMBH, a German company, was sentenced in federal court today to pay a total of $800,000 in fines and community service payments for violating the Clean Water Act and the Act to Prevent Pollution from Ships by intentionally discharging 4,500 gallons of oily bilge water into the ocean off the coast of Alaska and then presenting false records to the U.S. Coast Guard.
AML was also ordered to implement a comprehensive Environmental Compliance Plan and was placed on probation for three years. During the term of probation, AML will be subject to a heightened level of scrutiny, including warrantless searches of its vessels and places of business based upon a reasonable suspicion that it is violating the law. Of the total payment, AML will pay $675,000 in criminal fines and $125,000 in community restitution. The community restitution payment will go to the Alaska SeaLife Center to be used for projects and research that have a nexus to the Clean Water Act oil pollution crime committed.
Chief Engineer Nicolas Sassin was sentenced in Oregon last Friday to serve five months of home confinement followed by five years of probation for his role in these offenses. The Court in Oregon found the Chief Engineer Sassin used a special skill due to his engineering abilities to commit his Clean Water Act crime.
Defendant AML is the operator of the Motor Vessel City of Tokyo. The M/V City of Tokyo is a vehicle carrier vessel that operates under the flag of the Republic of Liberia. It was built in 1987, weighs approximately 42,247 gross tons, and is 603 feet long. Defendant Nicolas Sassin worked as the Chief Engineer of the M/V City of Tokyo between May 28, 2014 and September 6, 2014, when the vessel arrived in Oregon and was contacted by the United States Coast Guard.
On August 22, 2014, the M/V City of Tokyo departed South Korea and thereafter travelled through the Exclusive Economic Zone (EEZ) of the United States off the coast of Alaska arriving in Canada on September 2, 2014. The vessel departed Canada on September 3, 2014. The M/V City of Tokyo arrived in Tacoma, Washington on September 4, 2014, and remained there until departing for Portland, Oregon. The M/V City of Tokyo arrived in Portland, Oregon on September 5, 2014.
As the operator of the M/V City of Tokyo, AML was responsible for operating the Oil Water Separator (OWS) and maintaining an accurate Oil Record Book (ORB). As the Chief Engineer, Nicolas Sassin was responsible for the pollution control equipment in the M/V City of Tokyo’s engine room, including running the OWS and for maintaining the Oil Record Book (ORB).
On or about August 29, 2014, AML knowingly discharged oily bilge water into the United States’ Exclusive Economic Zone off the coast of Alaska which may have affected natural resources belonging to, appertaining to, and under the exclusive management authority of the United States and in a quantity that may be harmful.
AML admitted that while the M/V City of Tokyo was approximately 165 nautical miles south of the Aleutian Islands, specifically Sanak Island, Alaska, the Chief Engineer used an illegal pump system to knowingly discharge approximately 4,500 gallons of oily bilge water directly overboard. The illegal pump system consisted of a fabricated flanged fitting that connected the overboard discharge valve and pipe to a pneumatic Wilden pump. The pump’s suction was connected to a hose that was fed down the sounding tube for the bilge holding tank. The illegal pump system allowed the vessel’s crew to discharge oily bilge water from the bilge holding tank directly overboard without processing it through the required pollution prevention equipment (OWS and oil content meter). The overboard discharge created a sheen in the water off the stern of the vessel, and this was witnessed by crewmembers aboard the M/V City of Tokyo. The illegal pump system was dismantled prior to the vessel’s arrival in Portland.
AML knowingly failed to maintain an accurate ORB as required by the Act to Prevent Pollution from Ships (APPS).
Chief Engineer Sassin and AML also failed to record this discharge of oil into the sea by way of the illegal pump system and overboard discharge valve in the M/V City of Tokyo’s ORB, and knowingly presented and/or had available for inspection by the United States Coast Guard a false and fictitious ORB when the M/V City of Tokyo arrived in Portland, Oregon on September 5, 2014.
AML and Chief Engineer Sassin were charged in separate cases filed in both the District of Alaska and the District of Oregon. The Oregon charges against AML were transferred to Alaska, and the Alaska charges against Mr. Sassin were transferred to Oregon. No charges were dismissed.
“The year is 2015, and unfortunately oil pollution from ships continues to be a worldwide problem,” noted First Assistant United States Attorney Kevin Feldis. “AML and Mr. Sassin failed to uphold their obligations to protect our environment when they knowingly discharged oily water into the ocean within the Exclusive Economic Zone off the Coast of Alaska. The criminal fine, Environmental Compliance Plan, community service payment and probationary conditions ordered by the Court are all appropriate sanctions and remedies, and will hopefully serve to prevent future crimes.”
The M/V City of Tokyo was initially inspected and detained in Portland, Oregon by the United States Coast Guard marine inspectors. These cases were investigated by the U.S. Coast Guard Investigative Service and prosecuted jointly by the United States Attorney’s Office for the District of Alaska, the United States Attorney’s Office for the District of Oregon, and the Department of Justice’s Environmental Crimes Section.
Anchorage Man Indicted for Conspiracy to Launder $743,000 in Drug ProceedsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a federal grand jury has indicted another individual in connection with the seizure of large quantities of cocaine, methamphetamine, and cash late last fall. Loeffler indicated that this most recent indictment is related to several other drug trafficking cases announced late last year and that this new charge involves the laundering of nearly three quarters of a million dollars in drug proceeds.
The indictment announced today charges David Frazier, 52, of Anchorage, Alaska with one count of conspiring with others to launder the proceeds of drug trafficking. Frazier is the only defendant charged in the indictment.
According to the indictment, over the course of a four month period in 2013, Frazier worked with his co-conspirators to launder the proceeds earned from the sale of controlled substances. Frazier allegedly laundered the cash in order to promote his and his partners’ continued drug sales. In addition, the indictment alleges that, upon conviction, Frazier must forfeit any property involved in the money laundering scheme, including but not limited to the $743,000 in cash that can be linked to his criminal activities.
Assistant United States Attorney Stephanie Courter, who presented the case to the grand jury, indicated that, if convicted, Frazier faces a sentence of up to 20 years in prison, as well as a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the amount of drugs and money involved and any prior criminal history of the defendant.
This case is being prosecuted by Assistant U.S. Attorney Stephanie C. Courter. The case originated as part of a multi-agency investigation involving the Internal Revenue Service Criminal Investigation (IRS-CI), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Anchorage Police Department (APD), and the Alaska State Troopers (AST), and the Anchorage Airport Police Department.
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 United States must prove guilt beyond a reasonable doubt.
Bellingham Man Sentenced in Drug and Money Laundering ConspiracyRead the Press Release
Fairbanks, Alaska - U.S. Attorney Karen L. Loeffler announced Friday, May 15, 2015 that Peter M. Thornton was sentenced to 104 months’ imprisonment, followed by five years of supervised release, following his pleas of guilty to conspiracy to distribute heroin and conspiracy to commit money laundering. In addition to his prison sentence, Thornton was ordered to forfeit $24,300 representing property involved in the drug trafficking and money laundering conspiracies.
According to court documents, as early as 2008, Thornton was distributing heroin in Fairbanks to make money and support his own habit. By 2011, Thornton, operating from his residence in Bellingham, WA, conducted the conspiracy to transport and distribute heroin by means of couriers from Washington State to Fairbanks for distribution. Couriers would either fly the drugs carried on their person to Alaska, or Thornton would send drugs through the mails. Thornton purchased airline tickets for some of the conspirators to transport heroin to Alaska. Once in Alaska, the heroin would be redistributed by the co-conspirators.
Thornton instructed couriers and/or redistributors in Alaska to deposit the proceeds of the heroin sales into bank accounts controlled by him at various bank branches in Alaska. From September 2010 through December 2013, approximately $300,000 in cash was deposited into accounts controlled by Thornton.
The drugs were sometimes held at Thornton’s residence at Bellingham. A search conducted by law enforcement of Thornton’s Bellingham home found heroin and cash. As part of Thornton’s sentence the court ordered Thornton to forfeit the cash and a payment in substitution for his Bellingham home.
The case was prosecuted by Assistant U.S. Attorney Stephen Cooper of the U. S. Attorney’s Office for the District of Alaska. The case was investigated by the Organized Crime Drug Enforcement Task Force which includes the Internal Revenue Service Criminal Investigation (IRS-CI), the Drug Enforcement Administration (DEA), and the North Pole Police Department. Additional assistance was provided by the U.S. Attorney’s Office for the Western District Washington.
Anchorage Man Sentenced to 10 Years in Prison for Drug TraffickingRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court in Anchorage for 1 count of trafficking narcotics. Max Jewett, 38, of Anchorage had previously pled guilty on December 22, 2014 to 1 count of conspiring to distribute over 50 grams of methamphetamine.
Jewett was sentenced today by United States District Court Judge Sharon L. Gleason, to 120 months in prison.
According to Assistant U.S. Attorney Bryan Schroder, Jewett admitted to distributing illegal drugs in Alaska from October 2011 until his arrest in September 2013. In addition to distributing drugs, Jewett admitted to using his co-conspirators to steal merchandise, especially from home improvement stores, then having them return the items to the store in exchange for gift cards. The co-conspirators would then give the gift cards to Jewett in exchange for drugs. Overall, Jewett admitted distributing over 500 grams of methamphetamine, as well as heroin.
Ms. Loeffler commends the Drug Enforcement Administration and the Anchorage Police Department for the investigation of this case.
Three Life Sentences Imposed on Man Following Convictions for Drug Trafficking, Kidnapping, Using Firearms and HIPAA ViolationsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that United States District Court Judge, Ralph R. Beistline, sentenced an Anchorage man, Stuart T. Seugasala, a.k.a. “Tone,” age 40, to three terms of life imprisonment following his January 2015 convictions on drug trafficking conspiracy and two kidnapping charges. Judge Beistline imposed a consecutive seven year sentence on firearms violations, as well as concurrent ten year terms of convictions for unauthorized access to private health information (HIPAA). There is no parole in the federal penal system. Seugasala will spend the rest of his natural life in custody.
According to Assistant U.S. Attorneys Stephan A. Collins and Frank V. Russo, who tried the case, Seugasala had previously been convicted of drug trafficking in 2000 and served over nine years in prison. Following his release, Seugasala returned to Anchorage, Alaska where he opened and operated a video gaming place that catered to youths called “Friendly Fire.” Seugasala also returned to drug trafficking. In late 2012 to early 2013, Seugasala became associated with Phosavan Khamnivong,a.k.a. “P.K,” a convicted murder who served eight years of a 20 year sentence. The men started bringing nearly pure methamphetamine, as well as other drugs, into Alaska from California. On March 13, 2013, Seugasala, Khaminvong, Timothy Miller, a.k.a. “Lil Tone,” and Anoai Sialofi, a.k.a. “A-Loc,” kidnapped, tortured, and sexually assaulted two men because one of the men owed Khamnivong a past due heroin debt. At Seugasala’s direction, the sexual assault of one of the victims was videotaped so that he could intimidate others that owed the group money. The victims were released after over three hours, and only after one of the victims agreed to repay the drug debt.
One of the victims was so severely injured that that he was admitted to Providence Hospital. On March 15, 2013, Seugasala became so upset at other patrons dining at the Denny’s Restaurant on Benson, in Anchorage, that he followed them while they drove south on the Seward Highway and shot several times at their moving car, hitting it several times. The driver of the target car suffered a neck grazing bullet wound and a severed fingertip wound. The driver also admitted himself to Providence Hospital. On or about March 17, 2013, Seugasala called Stacy Laulu, a friend of his who worked at Providence Hospital, to find out if the victims of his crimes had reported him to the police. Laulu accessed the private electronic medical files of the victims and reported back to Seugasala. Laulu went to trial with Seugasala in January and was convicted of violating the privacy rights of the victims. She is due to be sentence on May 29, and faces up to ten years of imprisonment. Judge Beistline previously sentenced Timothy Miller to a term of 12 years imprisonment and Anoai Sialofi to a term of 235 months imprisonment. Khamnivong is due to be sentenced on June 10, 2015.
In imposing the life sentences on Seugasala, Judge Beistline stated, “You enjoyed being a drug kingpin, you seemed to enjoy the misery that you created, and you enjoyed your criminal posse,” who Seugasala directed to commit home invasion robberies to steal money and/or drugs.
Judge Beistline specifically condemned the video of the sexual assault, which was introduced into evidence at trial, on which Seugasala can be heard and seen torturing one of the victims. “This video is who you are. You enjoyed the drama, the power, the torture, and the sex assault. You were the one that asked that it be created, so you could re-live the excitement, to brag, and to use it for intimidation.” Judge Beistline openly wondered “how a human gets to the point where he treats other people in such an inhumane way.” Judge Beistline described Seugasala’s actions as “so far beyond the pale it is difficult to describe the revulsion the community feels for these crimes.”
Seugasala received maximum ten-year sentences on the HIPAA convictions, the first in the history of Alaska and one of few such cases prosecuted in the country. Judge Beistline noted that in committing these violations, which involved obtaining the victims’ private medical information, Seugasala “disrespected the victims again.”
Judge Beistline noted that life imprisonment was appropriate because Seugasala “cannot be deterred, so the public needs to be protected from you.” The fact that Seugasala committed these crimes while on supervised release for prior drug felonies also demonstrated that he could not be adequately supervised.” Judge Beistine also imposed a seven year sentence on firearms violations, to run consecutively to the life sentences, as mandated by federal law.
Ms. Loeffler commends the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Anchorage Police Department, the Alaska State Troopers, and the Valdez Police Department for the investigation that led to the convictions in this case.
Postal Service Employee Sentenced to 2 1/2 Years in Federal Prison for Faking Disabilities and Defrauding Government ProgramsRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that Amancio Zamora Agcaoili, Jr. was sentenced by U.S. District Court Judge Sharon L. Gleason to federal prison after pleading guilty to ten counts of wire fraud, theft of government funds, Federal Employees’ Compensation Act fraud, and social security fraud.
Agcaoili, 57, was sentenced to serve 30 months in prison to be followed by three years of supervised release, to pay restitution of $365,831.50 to the United States Department of Labor Office of Workers’ Compensation and the Social Security Administration, and to forfeit $14,141 cash which had been seized from his residence.
According to court filings, for at least five years, between 2009 and 2014, Agcaoili, a United States Postal Service employee working in Anchorage, Alaska, devised a scheme to fake disabilities and defraud the Department of Labor Office of Workers’ Compensation Program (OWCP) and the Social Security Administration Disability Insurance Benefits (DIB) program. Agcaoili received both federal workers’ compensation and federal social security disability payments by misrepresenting the nature and extent of his injury, and concealing the fact that he was working and earning income while receiving disability payments from government programs. Despite Agcaoili’s disability claims, Agcaoili engaged in numerous physical activities throughout the last five years showing that he was faking the extent of his injuries in order to obtain worker’s compensation and social security payments. For example, Agcaoili went dipnetting and fishing every year on the Copper River and the Kenai River, went dancing and sledding, and took vacations to Hawaii, Canada, and the Philippines. Despite his active lifestyle and clear physical capabilities, Agcaoili continued to maintain that he was incapable of working, going so far as to walk with a cane when he visited a doctor. Every year, Agcaoili submitted false certifications and lied to the federal government stating that he did not perform any work, when in reality he was working and receiving income for performing services such as preparing immigration paperwork and tax returns for hundreds of other individuals out of his office located behind his house.
Agcaoili also did not report to the Department of Labor that he received social security disability payments. In addition, Agcaoili concealed and failed to disclose to the Social Security Administration that he was receiving Department of Labor workers’ compensation payments so that he would continue receiving social security disability payments to which he was not entitled. As a result of his scheme, he received at least approximately $365,831.50 in illegally obtained federal disability payments through the Department of Labor OWCP and the Social Security Administration DIB program.
In sentencing Agcaoili, Judge Gleason noted the need for the sentence to deter not only the defendant but also other people from abusing federal programs. Judge Gleason also noted that the consequence of a term of imprisonment is a necessary form of deterrence for white collar crimes.
“Thirty months in prison will serve as a deterrent to others who are tempted to try similar scams. Agcaoili cheated every one of us when he lied about his injuries and his inability to work in order to receive hundreds of thousands of dollars in worker’s compensation and disability payments,” said Kevin Feldis, First Assistant U.S. Attorney and Criminal Division Chief for the District of Alaska. “Nobody should tolerate such fraud, and each time someone intentionally defrauds the United States in order to receive federal benefits, he or she undermines the integrity of these federal programs, making it less likely that they will be available for those who truly need them. Our office places a priority on prosecuting those who choose to criminally misuse and abuse federal programs and funds for their own personal gain, and we commend those who investigate and report these offenses.”
Mr. Feldis commends the United States Postal Service Office of the Inspector General and Social Security Administration Office of the Inspector General for conducting the investigation leading to the successful prosecution of Agcaoili.
Sitka Couple Indicted and Arraigned in Federal Court on Drug Conspiracy and Firearms ChargesRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that Luke Roderick Lowe, 36, and Marguarite Jean Keicher, 38, of Sitka, Alaska, were indicted by a federal grand jury in Anchorage on April 21, 2015, on drug conspiracy and firearms offenses that occurred in Ketchikan, Alaska. Keicher was arraigned on April 24, 2015, in U.S. District Court in Juneau and Lowe was arraigned yesterday in U.S. District Court in Ketchikan before Chief Magistrate Judge Deborah M. Smith.
According to the indictment, Lowe and Keicher conspired with each other and others to distribute and to possess with the intent to distribute methamphetamine in Ketchikan, Alaska, between December 19, 2014, and January 27, 2015. The indictment further alleges that Lowe and Keicher knowingly and intentionally possessed, used, and carried several firearms in furtherance of the underlying drug trafficking crime. The United States is also seeking forfeiture of $1,524 in U.S. Currency and nine firearms in two separate forfeiture allegations.
Assistant U.S. Attorney Jack S. Schmidt, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of life in prison, a fine of $10,000,000, or both, for the drug conspiracy charge and a mandatory minimum sentence of five years, consecutive to the drug trafficking crime to life in prison for the possession of a firearm in furtherance of a drug trafficking crime, a fine of $250,000, or both. Under the federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant. Both defendants are currently detained pending trial.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Ketchikan Police Department 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.
Ketchikan Couple Indicted and Arraigned in Federal Court on Drug Conspiracy ChargesRead the Press Release
Anchorage, Alaska - United States Attorney Karen L. Loeffler announced today that Robert Duane Moriarty, 36, and Sara Skan, 34, of Ketchikan, Alaska, were indicted by a federal grand jury in Anchorage on April 21, 2015, on a single count of drug conspiracy. Moriarty and Skan were arraigned yesterday in U.S. District Court in Ketchikan before Chief Magistrate Judge Deborah M. Smith.
According to the indictment, Moriarty and Skan conspired with each other and others to distribute and to possess with the intent to distribute methamphetamine and heroin in Ketchikan, Alaska, between September 2014 and January 28, 2015. The United States is also seeking forfeiture of $1,009 in U.S. Currency in a separate forfeiture allegation.
Assistant U.S. Attorney Jack S. Schmidt, who presented the case to the grand jury, indicated that the law provides for a maximum sentence of 40 years in prison, a fine of $5,000,000, or both. Under the federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendants. Both defendants are currently detained pending trial.
The Drug Enforcement Administration, Federal Bureau of Investigation, Port of Seattle Police Department, and the Ketchikan Police Department 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.
Illinois Insurance Salesman Sentenced for Fraudulently Representing Himself as A Financial Advisor to Victims in AlaskaRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Illinois man pled guilty and was sentenced in federal court in Anchorage to ten counts of mail and wire fraud based on his scheme to defraud victims by submitting forged signatures and falsified medical information on insurance applications.
Russell Armstrong, 52, of Lake Bluff, Illinois, pled guilty and was sentenced today by Chief United States District Court Judge Ralph R. Beistline, to 24 months in prison. Any fine amount and restitution to victims will be determined at a hearing on July 9, 2015.
According to Assistant U.S. Attorney Aunnie Steward, Armstrong was an insurance salesman who misled federal postal employees into thinking he was a financial advisor associated with the federal government sent to help them understand their federal benefits. Armstrong sold postal employees life insurance falsely telling them that it was an investment account. Armstrong forged the employees’ signatures, and he falsely omitted their medical information on the life insurance applications. He also set up payroll allotments to insurance companies without the employees’ knowledge. Armstrong started his scheme targeting postal employees unfamiliar with their federal benefits in his home state of Illinois in 2011, and then traveled to Fairbanks and Anchorage in 2013 to carry out his scheme in Alaska. Armstrong attempted to obtain over $90,000 in commissions by selling 22 victims in Alaska life insurance without their knowledge.
In imposing the sentence Judge Beistline noted that Mr. Armstrong was not candid with his victims or investigators looking into his crimes and that his motive was personal gain. Judge Beistline also noted that the victims in this case were all close to retirement and that everyone is vulnerable as they near retirement because they need to make financial decisions to safeguard their future and the future of those that depend on them. In imposing the sentence Judge Beistline said that it is important to ensure that the advice to people as they near retirement is true and accurate and that they are dealt with honestly. Judge Beistline indicated that the sentence is meant to deter others who would deceive people that were relying on them for expert advice.
United States Attorney Karen Loeffler said: “Targeting those seeking financial advice who are preparing for retirement is serious fraud. This conviction and sentence sends a message that this type of predatory fraud affecting the savings and future financial planning of federal employees who have worked for their well-earned retirement will not be tolerated.”
“This case reflects our agency’s commitment to protecting the U.S. Postal Service and its employees, and enforcing the laws that defend the nation’s mail system from illegal use,” said Anthony Galetti, Inspector in Charge of the Seattle Division of the U.S. Postal Inspection Service.
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 by licensed insurance producers.”
Ms. Loeffler commends the United States Postal Inspection Service, with assistance from the State of Alaska Division of Insurance, and the State of Alaska Division of Banking and Securities for the investigation of this case.
Anchorage Man Found Guilty of Multiple Drug Trafficking CrimesRead the Press Release
Anchorage, Alaska-Acting U.S. Attorney Kevin R. Feldis announced today that a jury has found an Anchorage man guilty of two drug trafficking crimes based on his efforts to distribute methamphetamine in June and October of 2014.
Boonchan Yang, a/k/a “Chowmein,” 22, of Anchorage, Alaska, was convicted by the jury after only an hour of deliberation. He was found guilty first of distributing $1100 worth of methamphetamine on June 19, 2014. Four months later, on October 3, 2014, Yang was involved in another drug sale for an entire ounce of methamphetamine. The jury convicted him of felony possession with the intent to distribute as a result of this conduct.
The evidence at trial showed that on June 19, 2014, Yang arranged to sell an informant half an ounce of methamphetamine and an AK-47. Text messages and recorded telephone conversations played at trial captured Yang arranging the deal. Law enforcement also videotaped the deal itself, which allowed the trial jury to actually watch a movie of Yang committing the crime.
On October 3, 2014, Yang was again involved in drug trafficking activity. On that day, the evidence at trial showed that Yang brought an ounce of methamphetamine to a store parking lot in Anchorage intending to sell it for $1700. When he was confronted by law enforcement, Yang tried unsuccessfully to hide the drugs inside the car where he was sitting. Inside the car, he also had dime baggies used for drug distribution and a digital scale.
Senior United States District Court Judge H. Russel Holland presided over the trial. Judge Holland scheduled Yang’s sentencing for 9:00 a.m. on July 7, 2014. Yang faces a mandatory minimum sentence of five years on the counts of conviction and a statutory maximum sentence of up to 40 years.
In announcing the sentence, Mr. Feldis praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, IRS Criminal Investigations, and the Anchorage Police Department, whose investigative efforts led to Yang’s conviction.
Fugitive from Florida Sentenced to 12 Years in Prison for Identity Theft, Possession of Child Pornography and Illegal Possession of Weapons and Destructive DevicesRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced that Joseph Keenan May, 60, was sentenced to 12 years in federal prison for crimes involving identity theft, possession of illegal weapons, and possession of child pornography in a sentencing hearing held in federal court yesterday. United States District Court Judge Sharon L. Gleason also ordered that May be supervised for 15 years after his release.
May, of Eagle River and Houston, Alaska, was indicted in June 2014 for identity theft crimes stemming from his assumption of the name of Michael Camp. In July, he was charged with three new federal offenses, alleging that he unlawfully possessed firearms while a fugitive from justice, unlawfully possessed unregistered explosive devices, and that he lied in an application for a federal firearms license. In November, an additional charge of possession of child pornography was brought. The defendant pled guilty to all eight felony charges.
May was arrested by an FBI tactical team at a home in Eagle River in the early morning hours of Friday, June 20, 2014. He had been wanted for capital sexual battery in Bradenton, Florida, since 1991. May was also the subject of a federal warrant charging unlawful flight to avoid prosecution since 1993.
According to the indictment, May has been living under the identity of a stepbrother, Michael Camp, who died in his teens in the 1970s in Pennsylvania. May is a former deputy sheriff in Manatee County, Florida. The original indictment charged two counts of unlawful use of a social security number, stemming from May’s use of Camp’s name and number to apply for an Alaska driver’s license in 2009 and unemployment benefits in 2013. He was also charged with two counts of aggravated identity theft.
Additional charges were filed in July 2014 and November 2014 based on evidence uncovered during May’s arrest and through search warrants derived from that evidence. The July 2014 additional charges stemmed from May’s possession of eight firearms despite his status as a fugitive; his possession of destructive devices and components to make them, including an exploding arrow and at least nine hand grenades; and his false statement on a 2011 application for a federal firearms license in which he used Camp’s identity and falsely claimed that he was not a fugitive from justice or charged with a felony. In November 2014, May was charged with possession of child pornography based on information found during searches of his computer.
In addition to the illegal firearms and child exploitation evidence, evidence presented to the Court at sentencing revealed that, along with the weapons found at the Houston trailer, agents recovered extensive hate-filled writings authored by May. In these journals, May expressed hatred for Muslims, for the President of the United States, and other groups, and he discussed taking violent actions against those he opposed.
Judge Gleason found clear and convincing evidence that May committed the child pornography offense as a pattern of activity involving the sexual abuse or exploitation of a minor, based on his 1990 admissions to the allegations made in Florida. In imposing sentence, she found that the hate-filled writings were “disturbing” and indicated a “real possibility” that he intended to use the weapons to inflict violence on others. She also described his interest in child pornography as “perverse.”
The judge ordered restitution to the State of Alaska Department of Labor and Workforce Development in the amount of $8684, representing the money he was paid for obtaining unemployment benefits under a false name.
United States Attorney Karen Loeffler commended the investigative team for their dedicated efforts following up the evidence uncovered during May’s arrest to determine the full scope of his illegal activities. Ms. Loeffler also noted the protection of First and Second Amendment rights is an important tenet of American justice. However, the intersection of possession of illegal weapons and hate speech is deeply disturbing. It is something we must all be vigilant in opposing to protect our community.
Ms. Loeffler commends the efforts of the Social Security Administration, Office of the Inspector General; the Federal Bureau of Investigation, Anchorage Division; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for conducting the investigation that led to the Alaska indictments and arrest. Thanks are also due to the FBI Tampa Division, the United States Attorney’s Office for the Middle District of Florida, the State’s Attorney’s Office in Brandenton, Florida, and the Manatee County, Florida, Sheriff’s Office.
Former Executive and Finance Directors of Alaska Tribal Organization Plead Guilty to Stealing FundsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that the former Executive Director and the former Finance Director of the Alaska Inter-Tribal Council (AITC), a non-profit organization which advocates in support of tribal governments throughout Alaska, each plead guilty in federal court in Anchorage to felony charges related to their theft of funds belonging to the organization. The former Executive Director of AITC, Steven D. Osborne, 44, of Fairbanks, and the former Finance Director, Thomas R. Purcell, 51, of Anchorage, each plead guilty to one count of theft of funds from an organization receiving federal funding.
According to Assistant U.S. Attorneys Joseph Bottini, the Alaska Inter-Tribal Council received substantial federal funding in 2008 and 2009 – including a federal grant from the United States Environmental Protection Agency in excess of one million dollars. As officers of AITC, Osborne and Purcell each had access to AITC bank accounts, and Osborne additionally had credit and debit cards issued to him by the organization. The investigation established that Osborne and Purcell were able to steal the funds through a number of different ways, including cash withdrawals, credit and debit card transactions, the submission of false time cards, and unauthorized salary increases.
Osborne and Purcell were each indicted by a federal grand jury in August 2013 for stealing AITC funds. Under the terms of Purcell’s plea agreement with the government, he admitted to taking approximately $22,720 in AITC funds which he was not entitled to. Osborne admitted to taking at least $5,000 of AITC funds, with the total amount of money which he obtained through theft and misapplication to be established at his sentencing.
United States District Court Judge Sharon L. Gleason scheduled sentencing for Osborne on June 30, 2015, and for Purcell on July 1, 2015. Each defendant faces a sentence of up to 10 years imprisonment and a fine of up to $250,000.00.
Ms. Loeffler commends the U.S. Environmental Protection Agency and the Federal Bureau of Investigation for the investigation of this case.
Anchorage Felon Sentenced for Illegal Possession of A FirearmRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Utuva Alaelua was sentenced in federal court in Anchorage to 58 months in federal prison, to be followed by three years of supervised release, for his conviction for being a felon in possession of a firearm.
Chief United States District Court Judge Ralph R. Beistline imposed the sentence on Alaelua, 31.
The case was prosecuted by Assistant U.S. Attorney Kelly Cavanaugh. Alaelua pled guilty to one count of an indictment charging him with being a felon in possession of a firearm.
In Anchorage, on August 27, 2014, Anchorage Police Department officers responded to a local city park in reference to a running vehicle with two individuals who appeared to be passed out inside the vehicle. Alaelua was in the driver’s seat of the vehicle, which had been reported stolen on August 8, 2014. Alealua had a Smith & Wesson 9mm pistol inside the driver’s side door pocket of the vehicle and was wearing a holster for the firearm. The firearm had been reported stolen in June 2014. Alaelua is prohibited under federal law from possessing firearms or ammunition due to his prior felony convictions in the United States District Court for the District of Alaska for Distribution of a Controlled Substance and Carrying a Firearm during Drug Trafficking.
Ms. Loeffler commended the Anchorage Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Alaelua.
Ketchikan Resident Sentenced to 48 Months for Methamphetamine ConspiracyRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a former Ketchikan resident was sentenced to 48 months of imprisonment for methamphetamine conspiracy.
Manuel Sanchez Hinahon, 40, of Ketchikan, Alaska, was sentenced today by United States District Court Judge Timothy M. Burgess, in Ketchikan, to 48 months of imprisonment followed by a five-year term of supervised release.
According to Assistant U.S. Attorney Jack Schmidt, who prosecuted the case, the case started as a joint investigation by the United States Postal Inspection Service (USPIS), Federal Bureau of Investigation (FBI), and the Ketchikan Police Department (KPD), who identified Hinahon as a member of a drug conspiracy to receive and distribute methamphetamine in Ketchikan, Alaska, sometime in early 2012.
In March 2012, USPIS seized a USPS Express Mail parcel addressed to Hinahon that contained 81.5 grams of actual methamphetamine. On March 24, 2012, USPIS and KPD agents conducted a controlled delivery of the parcel to Hinahon and subsequently executed a search warrant at Hinahon’s residence in which the parcel was recovered along with drug proceeds, drug paraphilia, scales, money gram receipts, and deposit slips of drug proceeds to another co-conspirator. A search of Hinahon’s cell phone also contained numerous messages related to drug trafficking.
In sentencing Hinahon, Judge Burgess noted the seriousness of the underlying offense and the need to deter the defendant, as the reasons for the sentence he imposed.
Ms. Loeffler commended the United States Postal Inspection Service, Federal Bureau of Investigation and the Ketchikan Police Department who conducted the investigation leading to the successful prosecution in this case.
Ketchikan Man Sentenced for Receipt and Possession of Explosive Materials by A FelonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that a Ketchikan man was sentenced today in federal court in Ketchikan for receipt and possession of explosive materials by a felon.
Joseph Duane Brown, 40, of Ketchikan, Alaska, was sentenced today by United States District Court Judge Timothy M. Burgess, to a five-year term of probation, 30 days in a halfway house, and 300 hours of community work service.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from an investigation conducted by the Ketchikan Police Department (KPD) related to the detonation of a series of explosive devices inside the Ketchikan Tunnel on July 4, 2013. The explosions temporarily knocked out the central communications records management system for the KPD dispatch center, as well as scared the driver of a vehicle who drove through the tunnel, as their vehicle was “rattled” during the explosion. The driver stated that the explosion was not a mere firework, but something “super dangerous.”
The investigation was later transferred to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATFE). They determined that the explosive devices were perchlorate explosive mixture (seal bombs) and cap sensitive ammonium nitrate mixture (binary explosive mixture) that is typically used in exploding targets. The investigation revealed that Joseph Duane Brown, a convicted felon, had assembled at least 20 one-pound explosive devices and daisy chained them together with a common fuse. Brown used the perchlorate explosive mixture (seal bombs) as a detonator to set off the one-pound charges of cap sensitive ammonium nitrate mixture (binary explosive mixture). Brown admitted that he purchased and assembled the ingredients to make the explosive devices and he was the one responsible for setting off the devices inside the Ketchikan Tunnel.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense and the need to deter the defendant and others, as reasons for imposing the five-year term of probation.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATFE) and the Ketchikan Police Department for the investigation leading to the conviction in this case.
Illegal Alien Sentenced to Prison for Identity TheftRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced that Jose Alegria-Garcia, 56, of Anchorage, was sentenced today to 29 months in federal prison. Alegria-Garcia was arrested in November 2014 and charged with unlawfully using the name and identity of Carlos Velazquez to work and live illegally in the United States.
Alegria-Garcia, a citizen of El Salvador, has been in the United States illegally since the early 1980s. In January 2015, he pled guilty to one count of unlawful use of a social security number, one count of making a false claim of United States citizenship, and one count of aggravated identity theft in connection with an application for unemployment benefits from the State of Alaska.
United States District Court Judge Sharon L. Gleason sentenced Alegria-Garcia to the five months imprisonment he has already served on the social security number and false citizenship charges, and also imposed a mandatory two-year consecutive term for aggravated identity theft. Judge Gleason also ordered Alegria-Garcia to pay restitution to the State of Alaska, Department of Labor and Workforce Development, in the amount of $5,336.
In imposing the sentence, Judge Gleason mentioned the impact on the victim, as well as the defendant’s long criminal record spanning more than thirty years. The victim, a U.S. national living in New York, stated that he found it difficult to obtain the benefits he was entitled to through social security because government records indicated that he was working in Alaska. In fact, Alegria-Garcia was working in Alaska, having stolen the victim’s identity.
The case was investigated by the Social Security Administration, Office of the Inspector General; Immigration and Customs Enforcement, Homeland Security Investigations; and the State of Alaska, Department of Labor and Workforce Development.
California Resident Sentenced to Federal Prison for Attempted Possession with Intent to Distribute MethamphetamineRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a California resident was sentenced yesterday in federal court in Juneau for attempted possession with the intent to distribute methamphetamine.
Gilbert Vasquez Jr., 40, from Salinas, California, was sentenced yesterday by United States District Court Judge Timothy M. Burgess, to 60 months in prison followed by a five-year term of supervised release.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation conducted by the United States Postal Inspection Service (USPIS), Drug Enforcement Agency (DEA), and Alaska State Troopers (AST), who intercepted a Priority Express Mail parcel containing methamphetamine that was addressed to the defendant. USPIS secured a federal search warrant for the parcel, which contained 113 gross grams of methamphetamine and an electronic scale. On September 11, 2014, law enforcement conducted a controlled delivery of the parcel to Vasquez, and he was subsequently arrested. During the investigation, Vasquez admitted that the parcel was intended for him and that he knew the parcel contained methamphetamine which he intended to sell/distribute to others. A search of the defendant’s residence revealed drug paraphilia, baggies for the distribution of controlled substances and a drug ledger.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense and the need to deter the defendant and others, as reasons for imposing the 60 month sentence.
Ms. Loeffler commends the United States Postal Inspection Service, Drug Enforcement Agency, and Alaska State Troopers for the investigation leading to the conviction in this case.
California Man Sentenced in Drug Trafficking and Money Laundering SchemeRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a California resident was sentenced in federal court in Anchorage for one count of money laundering.
Ines Gutierrez Gaspar, 52, from Little Rock, California, was sentenced by Senior United States District Court Judge H. Russel Holland, to 21 months in prison for his role in conducting financial transactions in California involving funds which he knew to be the proceeds of drug trafficking in Alaska.
According to Assistant U.S. Attorneys Joseph Bottini and Stephan Collins, Gaspar was part of a drug trafficking and money laundering organization which operated between California and Alaska from 2009 until 2011. Gaspar was originally charged in 2011, along with 14 other co-defendants, in a multi-count indictment charging the defendants with conspiracy, drug trafficking, and money laundering. Eleven of Gaspar’s original codefendants were previously convicted of drug trafficking and money laundering charges, with some of those defendants receiving sentences of 10 to 11 years. Many of the earlier sentenced defendants were Mexican nationals, and several have been deported to Mexico following completion of their prison sentences. Gaspar himself is a Mexican citizen and a lawful permanent resident alien in the United States. He likewise faces deportation to Mexico following service of his prison sentence.
Gaspar remained a fugitive until last October when he was arrested in Fresno, California. He was transported to Alaska last November, and in January of this year Gaspar plead guilty to one count of money laundering for actions in withdrawing funds from a bank account in California which he knew to be the proceeds of drug trafficking in Alaska.
Ms. Loeffler commends the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations Division, Homeland Security Investigations, and the Anchorage Police Department for the investigation of this case.
Five Sentenced to Prison for Elaborate Advance-Fee ScamRead the Press Release
PHOENIX – On March 30 and 31, 2015, U.S. District Judge Neil V. Wake sentenced five defendants to prison for stealing more than $11 million through an elaborate advance-fee scam. Judge Wake sentenced Steven Thomas Brewer of Dallas, TX, to 15 years plus eight months of imprisonment; Joel Stephen Cutulle of Middleton, MA, to nine years of imprisonment; Kenny Ray Kirby of Corinth, TX, to five years of imprisonment; Debra Ann Nickolas of Stanbury Park, UT, and formerly of Scottsdale, Ariz., to five years of imprisonment; and David P. Rachel of Mableton, GA, to three years of imprisonment. Steven Brewer, Joel Cutulle, Kenny Kirby, and David Rachel were found guilty by a federal jury on Oct. 8, 2014, of charges including criminal conspiracy, wire fraud, and money laundering. Debra Nickolas pleaded guilty on Aug. 11, 2014, to conspiracy and tax evasion.
Evidence at trial showed that the defendants stole more than $11 million by using fake companies-including Platinum Diversified Holdings (PDH) and HS&H Holdings-through which the defendants claimed they could secure loans for the victims’ business projects. At the time of the offense, Debra Nickolas lived in Scottsdale, Ariz., and two of the victims were from Arizona.
In exchange for purportedly securing the loans, the defendants demanded refundable deposits, which were supposed to be held in an attorney’s escrow account until the loans funded. In reality, the attorneys, Kenny Kirby and David Rachel, were co-conspirators who transferred the victims’ money to themselves and their co-conspirators, often within days. The victims’ money was spent on cars, luxury vacations, interior design services, tickets to sporting events, and other personal items. The scheme continued for years, with the defendants concealing the fraud by providing the victims false bank documents and other assurances to convince them that funding was imminent. The defendants never funded any business loans and the victims never received any of their money back.
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by James R. Knapp and Karen S. McDonald, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1927-PHX-NVW
RELEASE NUMBER: 2015-029_Nickolas et al
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Leader of Meth for Mail Ring Pleads Guilty to 16 Counts of Drug Dealing and FraudRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man pled guilty in federal court in Anchorage to 16 counts of drug dealing and fraud.
Jonathon Escalante, a/k/a “Superman”, 45, of Anchorage, pled guilty in front of Chief United States District Court Judge Ralph R. Beistline.
According to pleadings filed in the case, from September 2013 through September 2014, Escalante was the leader of a mail theft ring in Anchorage. Escalante recruited others to help him commit the crimes of Possession of Stolen Mail, Bank Fraud, Credit Card Fraud, Aggravated Identity Theft, and Possession of a Counterfeit Security. Escalante and his co-conspirators used checks, credit cards and personal identification information stolen from the mail and from vehicle break-ins to obtain funds and merchandise to which they were not entitled. Escalante recruited his co-conspirators by providing them with methamphetamine and a portion of the items and cash obtained from the stolen checks and credit cards. Escalante and his co-conspirators obtained over $40,000 in cash and retail goods during the course of this scheme. The scheme covered all of Anchorage from Eagle River to Hillside, from the Jewel Lake area to Muldoon, and even as far south as Soldotna.
In addition to the mail theft ring, Escalante was also a drug dealer who sold methamphetamine throughout Anchorage. Escalante carried a 9mm Ruger pistol for protection while committing all of these crimes. Escalante had three prior felony convictions for similar types of fraud and was thus prohibited, as are all felons, from possessing a firearm. Escalante possessed one of the pistols while shooting at a victim from whom he had stolen a motorcycle.
Three of Escalante’s co-conspirators have pled guilty and are awaiting sentencing. A fourth co-conspirator is scheduled to change her plea on April 7, 2015.
Escalante faces a mandatory minimum five years in prison and a maximum of 40 years in prison and a $5 million fine.
The case was prosecuted by Assistant U.S. Attorney Aunnie Steward together with Special Assistant U.S. Attorney Erin Bennett who is a Municipality of Anchorage Prosecutor working with the U.S. Attorney’s office to assist in the prosecution of recidivist and violent criminals in the Anchorage area.
Ms. Loeffler commends the U.S. Postal Inspection Service, assisted by the Bureau of Alcohol Tobacco, and Firearms and the Anchorage Police Department for the investigation of this case.
Fairbanks Drug Dealer Convicted of ConspiracyRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that after a two–day trial, a federal jury found Etienne Q. Devoe, 42, of Fairbanks, Alaska, guilty of Conspiracy to Distribute Cocaine and Heroin, and Conspiracy to Money Launder.
According to the evidence at trial, Devoe was a drug dealer located in Fairbanks. Between May 2, 2013, and June 13, 2013, law enforcement captured phone calls and text messages between Devoe and his co-conspirator, Steven N. Taylor. In those calls, Devoe and Taylor discussed their ongoing drug trafficking relationship. As part of that relationship, Taylor supplied cocaine and heroin to Devoe for distribution in and around the Fairbanks area. Devoe paid for those drugs by sending Taylor money through a checking account at a local bank.
On June 20, 2013, Fairbanks police responded to shooting at a rented house on Gillem Way. Devoe was found hiding in an upstairs bedroom closet at the residence, which he shared with his girlfriend. Also located in the residence were drug trafficking supplies, including packaging materials and an adulterant commonly used to cut cocaine prior to its resale.
This is Devoe’s second federal conviction for a drug trafficking offense. In February 2012, Devoe was found in possession of approximately 6 ounces of cocaine, along with packaging material. He was convicted of Possession of Cocaine with the Intent to Distribute and sentenced to 57 months imprisonment. The case number for that matter is 4:14-cr-00002-RRB.
The case was the product of an investigation by multiple law enforcement agencies, including the Drug Enforcement Administration, Internal Revenue Service, FBI Safe Streets Task Force, Anchorage Police Department, Fairbanks Police Department, Alaska State Troopers, and the University of Alaska, Fairbanks Police. Assistant U.S. Attorneys Kyle Reardon, and Timothy Edmonds prosecuted the case.
Devoe was indicted on June 16, 2014. Other defendants named in the Indictment include Taylor, James Brown, Sr., Leonard D. Charles, Shawn Cortez Cloyd, Timothy W. Northcutt, Joshua J. Haynes, Gabrielle P. Haynes, and Joseph E. Irving.
Devoe is scheduled to be sentenced by Judge Ralph R. Beistline on June 8, 2015
The maximum statutory penalty for a violation of 21 U.S.C. §§ 841(a)(1) and 846, Conspiracy to Distribute Controlled Substances, is not less than five years and up to 40 years imprisonment, a fine of $5,000,000, a four-year term of supervised release, and a $100 special assessment. The maximum statutory penalty for a violation of 18 U.S.C. § 1956(h), Money Laundering Conspiracy, is up to 20 years imprisonment, a fine of up to $500,000, a five year term of supervised release, and a $100 special assessment. 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.
“Drug trafficking is motivated by money. IRS CI, DEA, and our other law enforcement partners are motivated to protect our communities by clearing our streets of those who distribute and profit from the sale of illicit drugs. This verdict sends a strong message that the full force of the law will vigorously work together to eradicate drug conspiracies,” said Special Agent in Charge Teri Alexander of IRS Criminal Investigation.
“This verdict is the result of law enforcement working together in bringing a longtime Fairbanks drug trafficker to justice,” said DEA Acting Special Agent in Charge Douglas James. “This significant investigation could not have been done without the collaboration of the many federal, state and local law enforcement partners who are dedicated in dismantling major drug trafficking organizations.”
“The mission of the FBI Safe Streets Task Force was exemplified by this case - Operation Super Bad - which is to identify and target for prosecution criminal enterprises and groups responsible for a myriad of crimes that negatively impact the community. The guilty verdict for Mr. Devoe represents another violent offender off the streets of Alaska,” said FBI Supervisory Special Agent Kurt S. Ormberg.
Anchorage Man Convicted of Child Exploitation ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was convicted on Monday, March 23, 2015, in a case involving an American exploiting children in Cambodia.
A federal jury found Jason Jayavarman guilty of two counts: attempted sexual exploitation of children, in violation of 18 U.S.C. 2251(c), and attempted travel with intent to engage in illicit sexual conduct in a foreign place, in violation of 18 U.S.C. 2423(b).
Jayavarman, 45, was tried before U.S. District Court Judge Sharon L. Gleason in Anchorage. According to Assistant U.S. Attorney Audrey J. Renschen and U.S. Department of Justice, Child Exploitation and Obscenity Section, Trial Attorney Ravi Sinha, who prosecuted the case, the evidence presented at trial established that Jayavarman produced multiple videos of child pornography in Cambodia, between 2010 and 2013, which he then transported to the United States.
The evidence also established that, at the time of his arrest, Jayavarman planned a trip to Cambodia with the intent that, upon arrival, he and another individual, later revealed to be an undercover FBI agent, would engage in commercial sex acts with children as young as 12.
Jayavarman’s child exploitation activities came to light following a concerned citizen’s anonymous tip to Crime Stoppers. Jayavarman remains in custody pending sentencing. Based on the charges of conviction, Jayavarman faces a mandatory minimum of 15 years and a maximum of 60 years in prison, as well as lifetime registration as a sex offender.
United States Attorney Karen L. Loeffler noted, “These verdicts are the result of our committed efforts, working with all of our law enforcement partners, to fight exploitation of children, wherever it occurs, with all resources at our disposal and to prosecute those who prey on children to the fullest extent of the law".
Ms. Loeffler commends the Federal Bureau of Investigation, the Anchorage Police Department, and Crime Stoppers for the investigation leading to the successful prosecution of Jayavarman.
Tennessee Corporation and Employees Indicted by Federal Grand Jury for BriberyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Herschell Becker, John Becker aka Jack Becker, and ADA Station Communication, Inc. were indicted by a federal grand jury in Anchorage for bribery of a public official. The offenses charged occurred from June 2014 through August 2014.
Herschell Becker, 48, of Grandview, Tennessee, and ADA Station Communication, Inc., based in Crossville, Tennesse were charged with three counts of bribery of a public official together with a criminal forfeiture allegation. Jack Becker, 53, of Crossville, Tennessee was charged with two counts of bribery of a public official together with a criminal forfeiture allegation.
According to the indictment, ADA Station Communication, Inc. was founded in 1995 and has been a telecommunication company, specializing in providing turnkey structured cabling infrastructures including analysis, design, engineering, installation, and maintenance of voice, video, and data networks, obtaining approximately 65% of its business from federal entities. ADA Station Communication, Inc. has had, and continues to have, subcontracts to install and upgrade fiber optic cables on Joint Base Elmendorf Richardson (JBER) during 2014 and 2015. Herschell Becker has been the Vice President of ADA Station Communication, Inc. since 1995 and Jack Becker has been an employee of ADA Station Communication, Inc. since approximately 2003.
The indictment alleges that on June 18, 2014, the defendants offered $10,000 to a U.S. Air Force Cable/Antenna Work Leader to accept work previously identified as deficient that they performed as subcontractors installing fiber optic cables on JBER as complete. The indictment further alleges that on August 28, 2014, the defendants gave $5,000 to a U.S. Air Force Cable/Antenna Work Leader to accept work previously identified as deficient that they performed as subcontractors installing fiber optic cables on JBER. The indictment also alleges that Herschell Becker and ADA Station Communication, Inc. offered a U.S. Air Force Cable/Antenna Work Leader that it would be well worth his while if he recommended ADA Station Communication, Inc. as subcontractors for future work on JBER.
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 15 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 offenses and the prior criminal history, if any, of the defendants.
The Air Force Office of Special Investigations 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.
Kodiak Man Indicted for AssaultRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Kodiak man was indicted by a federal grand jury in Anchorage, Alaska for Assault.
Michael Ensley, 55, of Kodiak, Alaska was charged with one count of assault causing serious bodily injury, and one count of unlawfully entering U.S. Coast Guard property, Coast Guard base Kodiak, to conduct the assault.
Assistant U.S. Attorney Bryan Schroder, who presented the case to the grand jury, indicated that Ensley faces a maximum sentence of 10 years in prison, and a $250,000 dollar fine. Under the U.S. Sentencing Guidelines, the actual sentence imposed will be based on a number of factors, including the seriousness of the offense and any prior criminal history of the defendant.
The U.S. Coast Guard Investigative Service and the Alaska State Troopers 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.
United States District Court Orders Convicted Cigarette Tax Evaders to Pay Municipality of Anchorage over Two Million Dollars in RestitutionRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that United States District Court Judge Sharon L. Gleason ordered Michael Butler, 44, along with Sun Sims, 52, Kyong Hee Kim, 57, Jae Ho Lee, 60, Jae Gak Lee, 62, and Jerry Lee, 60, to pay a total of $2,007, 250, plus interest, in restitution to the Municipality of Anchorage following their convictions on charges that they were participants in a conspiracy to defraud the Municipality of Anchorage (MOA) by evading the payment of cigarette excise tax. The conspirators were indicted on July 18, 2013, on charges including mail fraud, conspiracy to commit money laundering, and conspiracy to make false statements regarding the distribution of cigarettes. Kyong Hee Kim, Sun Sims, Kimberly Sims, Jae Ho Lee, Jae Gak Lee, and Jerry Lee previously pleaded guilty in U.S. District Court for their roles in the conspiracy and other criminal violations. Michael Butler was convicted at trial in November 2014.
According to the court documents, Michael Butler and Sun Sims operated and managed Up in Smoke, located in the MOA, and Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, both located outside the MOA. Because they owned Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, Butler and Sims could legitimately purchase MOA excise tax exempt cigarettes from tobacco wholesale distributors located in the MOA, but only if those cigarettes were actually transported outside of the MOA and offered for sale at those two stores. However, cigarettes that they purchased within the MOA and intended to sell at Up in Smoke or distribute to others within the MOA were not excise tax exempt.
Between 2009 and October 10, 2012, Michael Butler and Sun Sims used their Golden Eagle Tobacco and Longmere Lake Grocery and Liquor store accounts with tobacco wholesale distributors within the MOA to purchase excise tax exempt cigarettes that they intended to sell and distribute within the MOA. Thus, they avoided paying the MOA excise tax and increased their own profits.
The other co-conspirators paid a fee to Michael Butler and Sun Sims for the purchase of excise tax exempt cigarettes. They paid this fee for the tax exempt cigarette in an effort to avoid paying the tax owed to the MOA. Butler and Sims would collect payment from Kyong Hee Kim and other retailers. They would then convert the money collected into cashier’s checks that appeared to be purchased by either Golden Eagle Tobacco or Longmere Lake Grocery and Liquor. They then used these cashier’s checks to purchase more tax exempt cigarettes, which they then delivered to the following retail stores within the MOA:
- Up in Smoke, owned and operated by Michael Butler and Sun Sims and managed by Kimberly Sims
- Mini Stop, owned and operated by Kyong Hee Kim
- Party Time Liquor, owned and operated by Jae Gak Lee
- Cheap Smokes, owned and operated by Jae Ho Lee
- Lucky Seven Foodmart, owned and operated by Jerry Lee
The defendants received the following sentences:
- Michael Butler sentenced on 3/13/15 to 36 months incarceration, 3 years supervised release.
- Sun Sims sentenced on 2/4/15 to 34 months incarceration, 3 years supervised release, $18,000 fine.
- Jae Gak Lee sentenced on 2/2/15 to 16 months incarceration, 3 years supervised release, $100,000 fine.
- Jae Ho Lee, sentenced on 1/21/15 to 16 months incarceration, 3 years supervised release.
- Kimberly Crandell, sentenced on 1/21/15 to 3 years’ probation, $1,500 fine.
- Jerry Lee, sentenced on 1/20/15 to 9 months incarceration, 3 years supervised release.
- Kyong Hee Kim sentenced 12/4/14 to 5 years’ probation.
“Tax evasion unfairly shifts the burden to honest American taxpayers,” said Special Agent in Charge Teri Alexander. “IRS Criminal Investigation together with the Department of Justice will continue to work vigorously to protect our national and local tax systems.”
Municipal Treasurer Daniel Moore added, “On behalf of Anchorage taxpayers who stood as the collective victims in this case, the Municipality appreciates the successful efforts of DOJ, APD, and the IRS in obtaining felony convictions, appropriate jail terms, and restitution. The Municipality expects the results of this case will send a strong deterrent message to white collar criminals who seek to scheme and defraud the government in taxes owed and then expect all other local taxpayers to cover the shortage in revenue to fund city services.”
Assistant U.S. Attorney Stephan A. Collins of the U.S. Attorney’s Office, District of Alaska, prosecuted the case. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), Alcohol Tobacco and Firearms (ATF), and the Anchorage Police Department.
Man Sentenced for Depositing Money Supporting the Distribution of MethamphetamineRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that on March 5, 2015, Ou Chiew Saetern, 36, was sentenced to 37 months of imprisonment for one count of Conspiracy to Commit Money Laundering. Saetern was indicted on February 20, 2013 and plead guilty on January 27, 2014. He has been in-custody since December 2013.
According to the documents filed with the court, Saetern conspired with others to transfer the proceeds of methamphetamine sales from Alaska to California. In furtherance of the scheme, between January 2011 and May 2011, Saetern made four deposits to banks in Alaska totaling $27,500. Saetern knew that the money represented drug trafficking proceeds obtained as a result of the unlawful distribution of methamphetamine. The money was withdrawn by other members of the conspiracy in California within a day or days of the deposits to keep the supply of controlled substances flowing.
Ms. Loeffler commends the Drug Enforcement Agency, Alaska State Troopers, and the IRS Criminal Investigation for their investigation of this case.
Mining Official Pleads Guilty to Making Illegal Discharges from the Platinum Creek Mine in Alaska and for Making False Statements to Federal OfficialsRead the Press Release
Anchorage, Alaska – A former general manager of the Platinum Creek Mine in Platinum, Alaska, pled guilty today to three felony violations of the federal Clean Water Act, announced Karen L. Loeffler, United States Attorney for the District of Alaska, and John C. Cruden, Assistant Attorney General for the Environment and Natural Resources Division of the U.S. Department of Justice.
Robert Pate, 63, of Spokane, Washington, entered his guilty pleas today in federal court in Anchorage. Pate admitted to knowingly discharging wastewater from the Platinum Creek mine into Platinum/Squirrel Creek, without a Clean Water Act Permit; knowingly violating the conditions of XS Platinum, Inc.’s, Clean Water Act permit for discharges to the Salmon River; and falsely reporting to the Alaska Department of Environmental Conservation in the 2010 Annual Report for placer mining at the Platinum Creek Mine that there was “no discharge” during 2010, a statement Pate knew to be false.
Pate was XS Platinum, Inc.’s, General Manager and a senior member of its office staff in Seattle, Washington, from February 2010 to June 2012. According to the plea agreement, Pate documented unpermitted discharges of turbid effluent process water into the Salmon River beginning on July 3, 2010. Turbid process water from the placer mining at the Platinum Creek Mine contained pollutants such as suspended particles and sediments, and may have also included waste such as dissolved metals that posed a potential threat to aquatic life. After documenting the first discharges of turbid effluent process water, Pate supervised the construction of a ditch to divert the effluent directly into nearby Squirrel/Platinum Creek, also without a permit. Turbid discharges, which XS Platinum, Inc., never reported to regulators as required, continued into the Salmon River for much of the remaining season. When Pate filed XSP’s annual water quality report in January 2011, he falsely wrote that the Platinum Creek Mine had experienced no discharges in 2010. The discharges continued in 2011.
U.S. Attorney Karen Loeffler praised the result. “Enforcement of our environmental laws is a priority for federal law enforcement in Alaska. It is essential to balance the importance of resource extraction to Alaska with the importance of doing it safely and in accordance with the law and regulations. Mr. Pate’s guilty pleas to federal felonies sends the proper message that there are consequences to illegal actions and we will vigilantly enforce environmental laws.”
“The defendant had a responsibility to ensure the wastewater at the Platinum Creek Mine was handled safely and responsibly but instead took specific actions that posed serious risks to the environment,” said John C. Cruden, Assistant Attorney General for the Environment and Natural Resources Division. “By pleading guilty, the defendant has admitted responsibility and will be held accountable under our nation's environmental laws.”
“The wastewater produced at Platinum Creek Mine contained pollutants that posed a potential threat to both aquatic life and human health,” said Jay M. Green, Acting Special Agent in Charge of EPA’s criminal enforcement program in Alaska. “As general manager of XS Platinum, the defendant knew first-hand about the discharges of mine wastewater into the Salmon River. Unpermitted discharges of turbidity and suspended solids have a negative impact on the diverse, complex and sensitive ecosystems contained in our Nation’s waters. Today’s plea demonstrates that if companies and their managers skirt environmental laws, EPA will hold them accountable.”
“This guilty plea highlights the importance that mining permittees adhere to the regulations that govern their operations, and how important it is for them to be open and transparent in their reporting obligations,” said Bud Cribley, State Director BLM-Alaska. “BLM continues to support the responsible development of federal public lands where appropriate. We are working closely with our state and federal partners as well as with the current claim owner to bring the Platinum Creek Mine back into production in a manner that will protect the Salmon River and restore it to a functioning condition.”
The Honorable Sharon Gleason set sentencing for September 2, 2015, and will ultimately decide what sentence to impose. According to the plea agreement, the United States will recommend a sentence that will include both imprisonment and home confinement. Pate also agreed to pay a $10,000 fine.
The investigation is being conducted by the U.S. Department of Interior Bureau of Land Management Office of Law Enforcement and Security and the U.S. Environmental Protection Agency Criminal Investigation Division. The case is being prosecuted by First Assistant U.S. Attorney Kevin Feldis of the U.S. Attorney’s Office for the District of Alaska, Trial Attorney Todd S. Mikolop of the U.S. Justice Department’s Environmental Crimes Section, and U.S. Environmental Protection Agency Regional Criminal Enforcement Counsel Dean Ingemanson.
Three More Arrest in Las Vegas-To-Anchorage Cocaine and Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska –U.S. Attorney Karen Loeffler announced today that the following individuals have been arrested in connection with a drug and money laundering conspiracy investigation involving the smuggling of cocaine to Alaska through Las Vegas McCarron International Airport. The new defendants are:
- CLARENCE ANTHONY HATTON, a/k/a “C-Money”, age 46, of Henderson, NV
- MICHAEL VONTRELL LANGDON, a/k/a "Money mike", age 35, of Renton, Washington
- ANTONIO DEMETRIUS BECKWITH, a/k/a "TWIN”, age 38, of Anchorage, AK
The men join DAREN D. COLE, DEWANE E. BLUE, and BRYAN M. BLEDSOE who have been previously indicted. On February 17, 2015, a grand jury in Anchorage charged HATTON, LANGDON, and BECKWITH with one count of drug conspiracy and one count money laundering conspiracy. Also included in the indictment were criminal forfeiture allegations.
According to the indictment, between approximately March 2012 and June 6, 2014, each of the six men participated in a scheme to acquire and distribute cocaine. HATTON would provide his conspirators with drugs in Las Vegas, Nevada. BLEDSOE had employee credentials that allowed him to bypass security screening at the airport in Las Vegas and bring the drugs into the airport undetected. BLEDSOE would then provide the drugs to others in the conspiracy that had cleared security checkpoints and the drugs would be brought to Alaska, and other states, in carry-on luggage. The drugs were distributed in Alaska and COLE, BECKWITH, and others would use the U.S. Mail, or other parcel delivery services, to send money from Alaska to HATTON, LANGDON, and other conspirators, in Washington State and Nevada.
The indictment alleges a total of 27 acts in furtherance of the drug conspiracy, including a sequence of events that occurred on June 1, 2014 when BLEDSOE brought a bag containing 10 kilograms of cocaine that originated with HATTON into the airport. After bypassing security, BLEDSOE met BLUE in a bathroom and provided BLUE with the cocaine. BLUE then met COLE in another bathroom and provided COLE with the cocaine.
The forfeiture allegations in the indictment seek to forfeit property allegedly derived from or used in the drug or money laundering conspiracies, including over $620,000; one Cadillac Escalade; one BMW; and one Mercedes.
According to Assistant U.S. Attorney Frank V. Russo, if convicted, the defendants face a potential life sentence on the drug trafficking conspiracy, with a mandatory minimum of ten years in prison. The money laundering conspiracy charges carry a maximum penalty of 20 years in prison, as well as fines related to the amount of money laundered. Under the federal sentencing statutes the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
An indictment is only a charging document and is not evidence of guilt. Defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The Drug Enforcement Administration, by both its Anchorage and Las Vegas District Offices, the Internal Revenue Service Criminal Investigative Division, the United States Postal Inspection Service, both in Anchorage and Las Vegas, the FBI Anchorage Safe Streets Task Force, the Anchorage Police Department, the Las Vegas Metropolitan Police Department, the Henderson Police Department, and the North Las Vegas Police Department conducted the investigation leading to the criminal charges in this case. The Clark County Department of Aviation has been assisting authorities with their investigation.