District of Alaska
Press releases recorded for this federal judicial district.
Wrangell Man Indicted for Child Exploitation CrimesRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that a federal grand jury returned a two-count indictment against Greg Alan Salard, 53, of Wrangell, Alaska, charging him with distribution of child pornography and possession of child pornography.
The indictment alleges that on June 5, 2014, Salard distributed a visual depiction of a minor engaged in sexually explicit conduct through the internet, and that on October 15, 2014, he was in possession of child pornography.
The case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon is prosecuting the case.
If convicted of distribution of child pornography, Salard faces a maximum statutory penalty of not less than five and up to 20 years imprisonment. If convicted of possession of child pornography, Salard faces a maximum statutory penalty of up to 10 years imprisonment. Both counts carry fines of up to $250,000, as well as the possibility of a lifetime 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 (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 distribution of child pornography. As a part of PSC, the United States Attorney’s Office has partnered with state and local agencies and non‑governmental 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.
Press Release by United States Attorney Karen L. Loeffler Relating to November 2014 ElectionsRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler, announced today that Assistant United States Attorney Kelly Cavanaugh will lead the efforts of her office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. Mr. Cavanaugh has been appointed to serve as the District Election Officer (DEO) for the District of Alaska and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Loeffler said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose. To ensure that complaints are directed to the appropriate authorities, United States Attorney Loeffler stated that Kelly Cavanaugh, Assistant U.S. Attorney/District Election Officer, will be on duty in this District while the polls are open. The public can reach Mr. Cavanaugh by telephone at 907-271-5071.
Anchorage Woman Sentenced for Passport and PDF FraudRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that Maualuga Leaana, 43, of Anchorage was sentenced to five years on probation for committing passport fraud. Leaana was indicted in April 2014 on federal charges that she committed identity theft and falsely claimed U.S. citizenship to obtain various federal and state benefits.
The Indictment charged Leaana with one count of passport fraud, nine counts of making false claims of U.S. citizenship, and one count of aggravated identity theft. Leaana is a citizen of Samoa, formerly known as Western Samoa. Citizens of Samoa are not U.S. citizens, in comparison to those born in American Samoa, who do hold U.S. nationality by birth.
Leaana pled guilty to the passport fraud charge on July 24, 2014, and admitted applying for and obtaining a U.S. passport in the name of her sister. She also admitted falsely claiming U.S. citizenship on various applications for benefits, including Alaska Permanent Fund Dividends, unemployment compensation, and subsidized housing, as well as obtaining identification from the Alaska Division of Motor Vehicles.
In addition to five years’ probation, United States District Court Judge Timothy M. Burgess ordered the defendant to spend four months on home confinement; make restitution to the Alaska Permanent Fund in the amount of $14,441 for Permanent Fund Dividends she illegally obtained between 2003 and 2013, and pay $17,392 to the State of Alaska Department of Labor for unemployment benefits that she unlawfully obtained.
The case was investigated by the U.S. Department of State, Diplomatic Security Service; the Social Security Administration, Office of the Inspector General, Office of Investigations; the Department of Homeland Security, Homeland Security Investigations, Immigration and Customs Enforcement; the Alaska Department of Revenue, Criminal Investigations Unit, and the Alaska Department of Labor and Workforce Development.Washington Residents Indicted by Federal Grand Jury for Drug ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that two Washington residents have been indicted by a federal grand jury in Anchorage for Drug Conspiracy and Firearm violations.
Layten Scott Banchero, 28, and Scott Evan Banchero, 50, of Seattle, Washington, were both arraigned today before United States Magistrate Judge Leslie C. Longenbaugh on the charge of Drug Conspiracy and criminal forfeiture allegations. Layten Banchero was additionally charged with possession of a firearm in furtherance of a drug trafficking charge and felon in possession of a firearm. Both Layten and Scott Banchero pled not guilty to the charges and criminal forfeiture allegation. Both were ordered detained by the court pending trial.
According to the indictment, between on or about May 11, 2014, and continuing until July 15, 2014, the Bancheros conspired to distribute and to possess with the intent to distribute methamphetamine and heroin in Ketchikan, Alaska. During the course of the drug conspiracy, Layten Banchero, who is a convicted felon, possessed a number of firearms, and specifically possessed a loaded .357 magnum pistol during the commission of the underlying drug offense. Additionally, the indictment seeks to forfeit drug proceeds that total over $38,000 in U.S. currency seized from the defendants.
Assistant U.S. Attorney Jack S. Schmidt, who presented the case to the grand jury, indicated that the law provides for a mandatory minimum sentence of 10 years to life in prison, a fine of up to $10,000,000, or both for the drug conspiracy charge; the possession of a firearm in furtherance of a drug trafficking offense has a mandatory minimum of five years of imprisonment that must be consecutive to the underlying drug trafficking offense, and the felon in possession charge carries a maximum sentence of ten years imprisonment; both offenses carry a maximum fine of $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The trial is currently scheduled to be held in Ketchikan at a date to be further determined.
The Drug Enforcement Administration and the Ketchikan Police Department Drug Unit 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.North Slope Worker Convicted of Tax CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that James R. Back, 60, of Soldotna, Alaska, was convicted of seven federal tax crimes in U.S. District Court in Anchorage. After three days of trial and one hour of deliberations, the jury of eight women and four men convicted Back on all charges. Back, who is employed by the Alyeska Pipeline Service Company as a pipeline technician at Pump Station One in Prudhoe Bay, was found guilty of filing false 2006, 2007, and 2008 individual income tax returns, and of failure to file his 2009, 2010, 2011, and 2012 returns. Evidence presented at trial showed that Back earned over $125,000 in wages during each of the prosecution years, yet falsely claimed on the 2006, 2007, and 2008 returns that his wages were zero. For the years 2009-2012, Back simply failed to file.
Other evidence at trial established that Back contributed over $140,000 to a retirement plan during the prosecution years, had investment accounts worth hundreds of thousands of dollars, owned real estate in the Kenai Peninsula Borough, and purchased over $400,000 in gold and silver bullion during the prosecution years. Back represented himself at the trial, and argued to the jury that taxation was immoral and unfair, and that he simply refused to submit to it anymore. He argued that the Alaska Permanent Fund Dividend was not taxable, even though he applied for and received it each year. He also argued that there was no evidence that state or federal laws applied to him. Back ignored prior warnings from his employer, his supervisor, the IRS, and a United States Tax Court judge that his arguments were frivolous.
According to witness testimony, Back used a scheme similar to one promoted by Peter Hendrickson of Michigan. Hendrickson operates a website known as “Lost Horizons” and wrote a book called “Cracking the Code” which promotes the “zero wages” tax evasion scheme. According to federal court records, in 1992 Hendrickson was convicted of failure to file tax returns and firebombing a Michigan post office on April 16, 1990, and served 21 months in prison. In 2010, he was sentenced to another 33 months in federal prison for tax crimes, including filing false returns and failure to file.
The defendant was remanded to the custody of the U.S. Marshal pending sentencing. Chief United States District Judge Ralph R. Beistline described Back’s crimes as “flagrant” and said he was “unrepentant.” The judge set sentencing for December 16. Back faces up to three years in prison on each of the three false return counts, and up to a year in prison on each of the four failure to file counts, in addition to significant criminal fines, restitution, and costs of prosecution.
“Using schemes and tactics intended to willfully conceal income from the IRS isn't tax planning; it’s criminal activity,” said Special Agent in Charge Teri Alexander, IRS Criminal Investigation. “There is no secret formula that can eliminate a person’s tax obligations. This verdict reinforces our commitment to every American taxpayer that we will identify and prosecute those who use abusive scams designed to evade the payment of taxes.”
Ms. Loeffler commends the Internal Revenue Service, Criminal Investigation, for the investigation and prosecution of this case.Eagle River Counterfeiters SentencedRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two Eagle River residents were sentenced in federal court in Anchorage for conspiring to manufacture and pass counterfeit money at local businesses in Eagle River.
Matthew Daley, 29, and Christa Speiser, 30, were sentenced on October 1, by United States District Court Judge Timothy M. Burgess. Daley was sentenced to a year in prison and Speiser received probation.
According to Assistant U.S. Attorney Aunnie Steward, Daley and Speiser were manufacturing counterfeit $100 bills that they were passing at local businesses including Tesoro, Walmart, and Carrs, as well as others in the Eagle River area.
Over the course of three days Daley and Speiser passed counterfeit $100 bills at local businesses purchasing small items and receiving genuine currency in return. They were stopped when a Tesoro employee recognized a $100 bill as fake and called APD. Daley and Speiser left the Tesoro but were contacted nearby on a routine traffic stop. The officer conducting the traffic stop heard the call over the radio regarding the attempted passing of counterfeit money at Tesoro and recognized Daley and Speiser as the suspects described in the incident. Daley also had a pending warrant for his arrest on a separate matter. Daley lied to the officer about his identity and tried to escape from the officer’s vehicle when he was taken into custody. Several more counterfeit bills were found in their car and in Speiser’s wallet. A search of the trailer where Daley and Speiser were staying by APD and the U.S. Secret Service established that Daley had set up a system of manufacturing the counterfeit money that he and Speiser had been passing at local businesses.
Ms. Loeffler commends the Anchorage Police Department and the Secret Service for the investigation of this case.Ketchikan Seasonal Worker Charged with Assault on a Federal OfficerRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Ketchikan man was arraigned on one charge of assault on a federal officer.
Dean Wesley Garcia, 23, was indicted September 16, 2014, on a sole count of assault on a federal officer. Garcia pled not guilty to the charge.
According to the information presented to the court, a National Oceanic and Atmospheric Administration (NOAA) Special Agent visited Garcia at his place of employment in response to a report of illegal sales of sport-caught halibut in Ketchikan, Alaska. While the agent was interviewing Garcia inside his business he noticed a large filet knife on a counter. Court documents allege that the agent moved the knife closer to him for officer safety purposes, at which point Garcia asked the agent, “are you scared?” and then Garcia grabbed the knife and began vigorously swinging the knife in the air in front of the agent placing him in fear of bodily injury. The agent was able to de-escalate the situation and nobody was physically injured.
Assistant U.S Attorney Jack S. Schmidt, who is prosecuting the case, indicated that the law provides for a maximum total sentence of 20 years in prison and a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
The National Oceanic and Atmospheric Administration Office of Law Enforcement conducted the investigation leading to the indictment in this case. Garcia remains incarcerated pending trial.
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.Defendant Sentenced in $19 Million Tax Fraud ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Maximo Amparo-Vazquez, a/k/a Japhet Soto Santiago, a/k/a Luis Angel Cortez, a/k/a “Kiki”, 27, a citizen of the Dominican Republic formerly residing in Alaska, was sentenced to 84 months of imprisonment, followed by three years of supervised release. Amparo-Vazquez pleaded guilty to conspiring to defraud the government with respect to claims on July 2, 2014. In addition to his prison sentences, Amparo-Vazquez was ordered to pay restitution in the amount of $559,755 to the Internal Revenue Service.
Amparo-Vazquez was also sentenced to concurrently serve 24 months of imprisonment for pleading guilty to concealing and not making known to law enforcement the felony conduct of a drug trafficking organization.
According to court documents, from January 2010 to March 2012, Amparo-Vazquez , acting with Joel Santana-Pierna, Abel Santana-Pierna and others, conspired to use stolen Puerto Rican identities to file income tax returns for the purpose of obtaining fraudulent income tax refunds.
Conspirators in the income tax fraud scheme obtained the stolen identities of more than 2,600 individuals, including people’s names and Social Security numbers. Most of these stolen identities were from citizens of Puerto Rico. Found on a laptop computer that Amparo-Vazuez consented to being searched by the government, were approximately 804 personal identities and approximately $6.375 million in prepared fraudulent tax refund claims. In all, the amount of the conspiracy’s sham returns totaled over $19 million.
Joel Santana-Pierna, Abel Santana-Pierna, Misael Polanco-Villa, Nicolas Jimenez-Sanchez, Isaac Amparo-Vazquez, and Randin Paredes Henriquez, Wedys Ramirez-Javier, Samuel Peguero, Fatima Aguilar Martinez, Melissa Duran-Muniz and Hilda Josephine Hernandez McMullen were also indicted as conspirators in the scheme. All of the indicted but Samuel Peguero and Wedys Ramirz-Javier have been sentenced. Samuel Peguero is awaiting trial, while Wedys Ramirez-Javier remains a fugitive.
Before the imposition of sentence, Defense Attorney Peter Camiel requested Judge Timothy M. Burgess consider that a search of Amparo-Vazquez’s apartment found no drugs and no weapons when determining an appropriate sentence. Judge Timothy M. Burgess responded that Amparo-Vazquez’s apartment metaphorically contained a weapon, a computer, which was used to assault the taxpayers of America.
Addressing the Court through an interpreter, Amparo-Vazquez apologized and said his intent was never to come to America and commit crimes. He came to find work to help his father in the Dominican Republic. Amparo-Vazquez shared that while he would be in jail his eighty-year-old father would probably pass away and that not seeing his father again was worse than time in jail.
Following the imposition of sentence, Judge Timothy M. Burgess addressed Amparo-Vazquez and advised him that a lot of people come here as immigrants and take advantage of the opportunities available to them in a positive way and make themselves and this country better, but Amparo-Vazquez did not do that and would now be paying the price.
The case was jointly prosecuted by Assistant U.S. Attorneys Thomas C. Bradley, James Barkeley, and Stephanie C. Courter of the U. S. Attorney’s Office for the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the U.S. Postal Inspection Service (USPIS), the U.S. State Department’s Diplomatic Security Service, and the Drug Enforcement Administration (DEA). Additional assistance was provided by the Tax Division of the United States Department of Justice as well as the U.S. Attorney’s Offices for the District of New Jersey, the Eastern District of Pennsylvania, and the Southern District of New York.Anchorage Counterfeiter Sentenced to 30 Months in JailRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that an Anchorage man was sentenced in federal court in Anchorage for four counts of passing counterfeit money. The defendant manufactured and passed counterfeit money at local stores all over Anchorage.
Eugene David Downey was sentenced on September 23, 2014, by United States District Court Judge Sharon L. Gleason, to 30 months in prison.
According to Assistant U.S. Attorney Aunnie Steward, Downey was convicted on state charges of passing counterfeit money in May of 2013. Downey resumed manufacturing and passing counterfeit money, approximately 200 transactions, shortly after his conviction in state court until his arrest in this case in April 2014.
Downey passed the counterfeit money at local businesses including Sports Authority, Kohl’s AMH and REI, among others. Downey passed counterfeit bills at these and other stores and then returned the items to receive genuine currency. Downey’s scheme was finally brought to an end when an APD officer responded to a 911 call by an employee of REI who recognized Downey from prior attempts to pass counterfeit money. Upon contact by APD, Downey resisted arrest and assaulted the officer as he tried to escape. Backup officers arrived on scene and Downey continued to resist arrest until he was placed in a patrol vehicle. Downey had a wallet full of counterfeit bills at the time of his arrest.
Judge Gleason noted the detrimental impact to local businesses from Downey’s manufacturing and passing of counterfeit money as well as the assault on the officer as reasons for imposing the 30-month sentence.
First Assistant U.S. Attorney Kevin Feldis highlighted that “counterfeiting is a persistent problem throughout this country and throughout the world. We are not immune to that problem in Alaska, and small amounts of counterfeit bills are routinely found here. All businesses should be aware of how to spot counterfeit bills, and report the receipt of fake bills to the police or U.S. Secret Service. The conviction of Eugene Downey shows that knowingly passing counterfeit bills is a significant crime with serious penalties. While making counterfeit $5, $10 and $20 bills with a laser printer or photocopier, or passing fake bills under the guise that you did not know they were fake, may seem like tempting crimes, fake bills are not hard to spot and those involved with these crimes will be aggressively pursued.” Two additional criminal defendants are set to be sentenced on federal counterfeiting charges in early October.
Ms. Loeffler commends the Anchorage Police Department and the U.S. Secret Service for the investigation of this case.
Anchorage Man Sentenced to 120 Months for Conspiracy to Possess and Distribute MethamphetamineRead the Press Release
Anchorage, Alaska-Acting U.S. Attorney Kevin R. Feldis announced today that a man from Fairbanks, Alaska was sentenced in federal court in Anchorage for conspiracy to possess methamphetamine with intent to distribute.
Thony Yang, 24, was sentenced today by United States District Court Judge Timothy M. Burgess. Yang received a sentence of 120 months in prison and 5 years of supervised release for his conviction of conspiracy to possess methamphetamine with intent to distribute.
On March 5, 2014, law enforcement officers identified a suspicious package that was scheduled to be delivered to an address in Anchorage, Alaska. Officers obtained a search warrant for the package and found 1,400 grams of actual methamphetamine inside. Law enforcement officers replaced the methamphetamine with “sham” or fake methamphetamine and then delivered the package to the Anchorage address where it was picked up by a co-conspirator of Yang. Yang appeared to be conducting surveillance at the residence when the package was delivered. Yang confirmed that he was waiting for the parcel and he expected to receive a portion of the methamphetamine in the package.
Before imposing the sentence, Judge Burgess commented that Mr. Yang had dug himself into a very deep hole at a very young age.
Mr. Yang's co-defendant, Cha Tony Vue, is scheduled to be sentenced on November 6, 2014.
Mr. Feldis commended the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation Division for the investigation leading to the successful prosecution of Mr. Yang.
Defendant Pleads Guilty to Mail Fraud and Conspiracy to Commit Money LaunderingRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Kyong Hee Kim, 56, entered a guilty plea to mail fraud and conspiracy to commit money laundering. Kim joined with Sun Sims, 52, and others to defraud the Municipality of Anchorage by evading the payment of cigarette excise tax. Sun Sims pleaded guilty on September 5, 2014, for her role in the crimes..
According to the plea agreement, Kyong Hee Kim knowingly purchased illegally obtained tax exempt cigarettes from Sun Sims and her business partner who owned, operated, and managed Up in Smoke, located in the Municipality of Anchorage, and Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, both located outside the Municipality of Anchorage. Because they owned Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, Sun Sims and her partner could legitimately purchase Municipality of Anchorage excise tax exempt cigarettes from tobacco wholesale distributors located in the Municipality, but only if those cigarettes were actually transported outside of the Municipality and offered for sale at those two stores. However, cigarettes that they purchased within the Municipality and intended to sell at Up in Smoke or distribute to others within the Municipality were not excise tax exempt.
Between 2009 and October 10, 2012, Sun Sims and her partner used their Golden Eagle Tobacco and Longmere Lake Grocery and Liquor store accounts with tobacco wholesale distributors within the Municipality to purchase excise tax exempt cigarettes that they intended to sell and distribute within the Municipality. Thus, they avoided paying the excise tax and increased their own profits.
Kyong Hee Kim, who owns and operates the Mini Stop, paid a fee to Sun Sims and her business partner for the purchase of excise tax exempt cigarettes. Kyong Hee Kim paid this fee for the tax exempt cigarette in an effort to avoid paying the tax owed to the Municipality. Sun Sims and her partner 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 delivered to Kyong Hee Kim and the other retailers within the Municipality.
“When individuals attempt to evade their lawful tax obligations, be it federal, state, or local, they really steal from all of us,” said Assistant Special Agent in Charge Steve Bellis of IRS Criminal Investigation. “In this case, the conspirators effectively stole excise tax from the municipality of Anchorage; monies that would have been used to support important local infrastructure. IRS Criminal Investigation is proud to partner with the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department to bring this criminal conspiracy to justice.”
As part of the plea, Kim agreed to forfeit $1,214,802 in currency as well as 500 1-ounce silver coins. Mail fraud carries a sentence of up to 20 years imprisonment and fines up to $250,000. Conspiracy to money launder carries a sentence of up to 20 years imprisonment and fines up to $500,000.
The case was jointly prosecuted by Assistant U.S. Attorneys Stephan A. Collins and Erin W. Bradley of the U. S. Attorney’s Office for the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation, the Bureau of Alcohol Tobacco, Firearms and Explosives, and the Anchorage Police Department.
International Wildlife Investigation Results in Charges against Five Canadian Clients for Illegal Take of Wildlife, Filing False Documents, and Wildlife SmugglingRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a joint United States-Canadian wildlife investigation has resulted in the filing of charges by the United States Attorney in Anchorage against five Canadian citizens for the illegal take and export of wildlife from Alaska to Canada.
The United States filed charges against Alberta, Canada residents Fred R. Thomson, 54, Ben J. Thomson, 32, Kelly D. Murray, 51, Colby L. Murray, 21 and Jason Clemett 42, for the illegal take of wildlife, concealing the illegal nature and take of wildlife on the guided hunts, and the illegal export of unlawfully taken wildlife.
The guided hunts, and the violations during these hunts, occurred between October 2009 and October 2011, in the Haines, Alaska area.
The charges filed are the result of an extensive joint United States-Canadian investigation. Starting in November 2012, Canada Crown prosecutors in Alberta and Yukon Territory, Canada, charged 17 subjects with 55 violations under the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (WAPPRIITA). These charges arose out of the illegal guided hunts charged above and the illegal import of unlawful wildlife from the United States into Canada. The Canadian trials began in June 2014.
The maximum penalty for violating the Lacey Act as charged is one year imprisonment and a $100,000 fine. Arraignment dates have not been set.
Ms. Loeffler commends the United States Fish and Wildlife Service; Alaska Wildlife Troopers; Environment Canada Wildlife Enforcement; Yukon Conservation Officer Service; Alberta Fish and Wildlife; Parks Canada; British Columbia Conservation Officer Service; and the Public Prosecution Service of Canada for the international cooperation extended in the investigation of these cases.
The filing of an Information 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.Attorney General Holder Recognizes Alaska Prosecutors and Law EnforcementRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced that Steven E. Skrocki, Assistant U.S. Attorney, Yvonne Lamoureux, Assistant U.S. Attorney, Traci D. Ross, Victim-Witness Specialist, Sean Robinson, Lead Paralegal, Monica Valenzuela, Paralegal, and Jodi Bradison, IT Specialist (District of Alaska); Richard Sutherland and Sandra L. Klein (Federal Bureau of Investigation); Avery Thompson (Fairbanks Police Department); and Sgt. Scott Johnson of the Alaska State Troopers who was tragically killed on May 1, 2014, as well as Roger L. Hudson, Lead Attorney (Retired) (Bureau of Indian Affairs, U.S. Department of the Interior), were among the 243 members of the Department of Justice recognized by Attorney General Eric Holder and the Executive Office for U.S. Attorneys (EOUSA) at the 30th Annual Director’s Awards Ceremony today in Washington, D.C.
The District of Alaska was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
During his remarks at the ceremony, Attorney General Holder made special mention of the ultimate sacrifice made by Alaska State Trooper Scott Johnson, stating “we salute the contributions – and mark the profound sacrifices – of our brave men and women in law enforcement. These extraordinary individuals risk their lives to protect their fellow citizens and bring criminals to justice – serving with distinction, with integrity, and with uncommon valor. All too often – in the service of their country, and by virtue of the oaths they have sworn – some are called to make the ultimate sacrifice. And one of these fallen heroes, Alaska State Trooper Scott Johnson, is among the award recipients we recognize this morning. We are both honored and humbled to be joined today by Trooper Johnson’s widow, Brandy, who traveled from Alaska to be here with us. Our nation owes Brandy, her husband, and every member of their family a debt of gratitude that we can never hope to repay. But what we can do, what we must do, and what we pledge to do – all of us, here and now – is to carry on the work for which Trooper Johnson gave his life; to lift up his story, so it can guide and inspire generations to come; and to do everything in our power to ensure that anyone who commits an act of violence against a law enforcement officer is found, caught, and brought to justice.” In response, the hundreds assembled in the great room spontaneously rose and gave a standing ovation in honor of Trooper Johnson.Roger L. Hudson, Lead Attorney (Retired) (United States Department of the Interior), was recognized for his indispensable contribution towards obtaining an affirmed judgment in United States v. Dennis Torrey, et al., a case which involved a thirty-year history of illegal occupation of a Native Alaskan allotment by the defendant. From the filing of the first case in 1985, through ancillary cases in state court and bankruptcy court, to the issuance of the Ninth Circuit’s mandate in August 2013, Mr. Hudson provided the factual continuity and legal acumen that ensured a successful conclusion of this action. He provided invaluable counsel to the several Assistant U.S. Attorneys who worked on the case as well, and secured resolution for the Native Alaskan family whose traditional lifestyle had been interrupted for a generation.
Steven E. Skrocki, Yvonne Lamoureux, Traci D. Ross, Monica Valenzuela, Sean Robinson, and Jodi Bradison (District of Alaska); Richard Sutherland and Sandra L. Klein (Federal Bureau of Investigation); Avery Thompson (Fairbanks Police Department); and, Sgt. Scott Johnson (Deceased) (Alaska State Troopers), were recognized for their superior performance in the related cases of United States v. Cox, Barney, and Vernon and United States v. Lonnie and Karen Vernon. Sergeant Johnson’s widow, Brandy Johnson, traveled to Washington, D.C. to receive the award on her late husband’s behalf. During a six-week trial against three militia members, the team presented evidence of the defendants’ plans to murder state and federal officials, including Alaska State Troopers, United States Marshals, and Transportation and Security Administration employees. The defendants were convicted of conspiracy to murder federal officials, solicitation to commit murder, and numerous weapons violations involving silencers, hand grenades, and other destructive devices. After the guilty verdicts in this first case, the Vernons pleaded guilty to conspiracy to murder a federal judge, members of his family, and an IRS revenue officer.
United States Attorney Karen Loeffler stated, “I am proud of all of our award recipients from the District of Alaska. Roger Hudson has been an invaluable partner working with all of our Assistant U.S. Attorneys in the Civil Division for the past 30 years on a myriad of issues involving the many facets of the Department of the Interior. The successful investigation and prosecution of the Cox and Vernon cases were a prime example of the excellent collaboration and coordination between and among law enforcement agencies in Alaska. Working together, this team diffused a dangerous situation and obtained a just result for dangerous criminal behavior.”
Defendants Pleads Guilty to Mail Fraud, Conspiracy to Commit Money Laundering, and Conspiracy to DefraudRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Sun Sims, 52, of Anchorage, entered a guilty plea to mail fraud, conspiracy to launder money, and conspiracy to make false statements regarding the distribution of cigarettes. Sims conspired with others to defraud the Municipality of Anchorage (MOA) by evading the payment of cigarette excise tax.
According to the plea agreement, Sun Sims and her business partner owned, 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, Sun Sims and her partner could legitimately purchase MOA excise tax exempt cigarettes from tobacco wholesale distributors located in the MOA 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, Sun Sims and her partner 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.
In addition, for a fee, Sun Sims and her business partner would sell tax exempt cigarettes to other retailers within the MOA. Sims and her partner would collect payment from the various retailers and convert the money collected into cashier’s checks that appeared to be purchased by either Golden Eagle Tobacco or Longmere Lake Grocery and Liquor for the purpose of buying tax exempt cigarettes. Then they used these cashier’s checks to purchase more tax exempt cigarettes, which they delivered to the other retailers within the MOA.
As part of the plea, Sims agreed to forfeit $1,214,402 in currency as well as 500 one-ounce silver coins. Mail fraud carries a sentence of up to 20 years imprisonment and fines up to $250,000. Conspiracy to money launder carries a sentence of up to 20 years imprisonment and fines up to $500,000. Conspiracy to make false statements regarding the distribution of cigarettes carries a sentence of up to five years’ imprisonment and fines up to $250,000
The case was jointly prosecuted by Assistant U.S. Attorney Stephan A. Collins and Special Assistant U.S. Attorney Erin W. Bradley of the U. S. Attorney’s Office for the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), Alcohol Tobacco and Firearms (ATF), and the Anchorage Police Department.
Two Defendants Sentenced for Identity Theft and Conspiracy as part of Scheme to File False Income Tax ReturnsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Jameane Bolton-Williams, 39, and Joe Murl Douglas, Jr., 54, both of California, have been sentenced in federal court by U.S. District Court Judge Timothy M. Burgess, as the result of their respective roles in a scheme to steal identities and file false tax returns. Bolton-Williams will serve 82 months in prison and pay restitution of at least $91,927.65, and Douglas will serve 57 months and pay restitution in the amount of $43,043.55.
Bolton-Williams and Douglas conspired with two others to obtain identity information, such as names, dates of birth, and social security numbers, which were then used to prepare false IRS Forms W-2 that contained fabricated wage and withholding amounts. The co-conspirators then took the identity information and falsified documents to tax return preparation services in Anchorage, Eagle River, and Palmer, Alaska, as well as in Los Angeles and Orange Counties, California, to have tax returns prepared and electronically submitted to the IRS.
The false returns requested refunds totaling between $1,400 and $8,600 each. In many cases, the defendants applied for refund anticipation loans and had the fraudulently obtained tax refunds loaded onto reloadable stored value cards allowing them instant access to the money even if the IRS later rejected the falsely filed returns. The fraudulently obtained tax refunds were used to purchase personal items, including a 2002 Mercedes E320 Sedan.
Co-defendant Lucille Stansberry was previously sentenced by Judge Burgess to 36 months and one day in prison. She was also ordered to pay restitution in the amount of $48,619.95. The fourth co-defendant charged in the case, Demetrick Ruffin, remains a fugitive.
During both sentencing hearings, the victims of this conspiracy spoke at length about the devastating effects these crimes have had on their lives, recounting their difficulties securing loans, paying for their children’s education, and providing for themselves in retirement.
In sentencing Bolton-Williams, Judge Burgess referenced the victims’ statements and noted the profound and continuing impact that identity theft crimes have on innocent victims who often find it difficult, if not impossible, to correct the effects such crimes have on their daily lives. He also commented on the fact that these types of crimes have been expanding in recent years, which was one of several factors he considered in fashioning the sentences in this case. Regarding Bolton-Williams, whose criminal history included multiple previous convictions for identity theft and fraud-related crimes, Judge Burgess was particularly adamant that any sentence he handed down should be designed to protect the public from future crimes.
U.S. Attorney Karen Loeffler noted, “Identity theft in any of its myriad manifestations is a pernicious crime that causes untold and lasting difficulties to its victims. In addition, tax fraud affects and damages the vast majority of hard-working American taxpayers. These significant sentences reflect the damage done and federal law enforcement’s commitment to prosecuting those who perpetuate these crimes.”
“Refund fraud is a top priority for the IRS,” said Special Agent in Charge Teri Alexander of the IRS Seattle Field Office. “The sentences handed down to these defendants show that IRS Criminal Investigation and the US Attorney’s Office are committed to fighting this growing epidemic. Justice has been served on those who conspired to steal from the government and every U.S. taxpayer, but more importantly, we hope these sentences provide some sense of closure for the victims whose lives were so affected by the nefarious deeds of these identity thieves.”
This case was prosecuted by Assistant US Attorneys Retta-Rae Randall and Stephanie C. Courter. IRS Criminal Investigation investigated the case.
Ms. Loeffler commends the IRS Criminal Investigation for the investigation leading to the convictions in this case.
Three Indicted for Conspiring to Traffic Cocaine by Circumventing Airport SecurityRead the Press Release
Anchorage, Alaska – Acting United States Attorney Kevin R. Feldis announced today that a grand jury indictment has been unsealed charging three men with conspiring to distribute five kilograms or more of cocaine between Las Vegas and Alaska. The indictment charges three Las Vegas men: Daren D. Cole, 47, Dewane E. Blue, 37, and Bryan M. Bledsoe, 36.
The indictment alleges that since 2012, Blue would obtain cocaine for distribution in Alaska and other states, and then give the cocaine to Bledsoe, an airport employee, who would bring the drugs into McCarran International Airport, Las Vegas, Nevada, without passing through security. Inside the terminal, Bledsoe would then meet with Blue or others after they had gone through security screening, and provide them with the drugs. The drugs would be placed in the traveler’s carry-on baggage for distribution to Alaska and other states. Drug proceeds would be shipped back to Blue and other conspirators using the mail or parcel services. The indictment details 12 parcels containing drug proceeds that were sent from Anchorage to Las Vegas. Four of the parcels were seized by law enforcement, containing a total of $414,230 in cash. The indictment seeks forfeiture of this money, along with several vehicles.
The indictment further alleges that on June 1, 2014, Cole dropped off money to Blue to facilitate a later drug transaction. Later that day, Blue met with Bledsoe for the purpose of providing him with approximately ten kilograms of cocaine for Bledsoe to carry into the airport. The indictment states that Bledsoe then used his airport credentials to enter secure areas of McCarran International Airport terminals. It is further alleged that Bledsoe transferred the cocaine to Blue, who gave it to Cole in an airport bathroom. Cole was arrested on June 1, when investigators seized the ten kilograms before he boarded his flight to Anchorage.
Cole was subsequently indicted in Alaska for attempting to distribute the cocaine in Alaska, and is currently in custody in Anchorage. Bledsoe and Blue were arrested between last night and this morning. They will be brought to federal court in Las Vegas for initial appearances on the Alaska charges.
The case was investigated by the Drug Enforcement Administration, in its Anchorage and Las Vegas District Offices; the United States Postal Inspection Service, 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. The Clark County Department of Aviation has been providing invaluable assistance to law enforcement’s efforts since the seizure of cocaine in the airport on June 1. The case is being prosecuted by the United States Attorney’s Office for the District of Alaska, which has been assisted by the United States Attorney’s Office for the District of Nevada.
The maximum penalties for the drug conspiracy charge include a minimum of 10 years in prison and maximum of life in prison, a $10 million fine, and at least five years of supervised release. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.Store Owner Pleads Guilty to Snap FraudRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage store owner pled guilty to wire fraud and criminal forfeiture in connection with the SNAP federal food aid program that he was authorized to administer out of his store.
Ayub Yusef Eprahin, 44, pled guilty today, before United States District Court Judge Timothy M. Burgess, to two counts of wire fraud and one count of criminal forfeiture. According to a plea agreement, Eprahin faces a maximum of two years of imprisonment and a fine of up to $250,000. As part of his plea of guilty, Eprahin agreed to forfeit $42,489.44 to the United States as proceeds of the fraud.
According to Assistant U.S. Attorney Steve Skrocki, in November 2012, Eprahin was the owner of the Africa and Middle East Market and a participant in the Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the “Food Stamp Program,” administered by the United States Department of Agriculture’s Food and Nutritional Service. The program is designed to provide authorized nutritional foods to low-income families. The federal government pays the full cost of the SNAP benefits and also shares with the states some of the administrative costs. Under the SNAP program, authorized recipients are issued a certain amount of benefits each month, which they may use to purchase eligible food items. SNAP recipients typically receive their benefits in the form of a credit on their personal electronic benefit transfer card. The rules of the program prohibit the purchase of items other than food, and the card benefits cannot be redeemed for cash. Eprahin and his store were authorized to accept payment for eligible purchases through SNAP. As a participant in the program, Eprahin was allowed to receive computer issued payments based on authorized purchases made by participants who shopped in his store. As part of the scheme, Eprahin permitted non-food items to be purchased and cash to be distributed to participants in the program using SNAP benefits. Eprahin represented to the SNAP program that the benefits were being redeemed to purchase eligible food items when in fact the purchases were not for eligible items. Eprahin improperly received federal program reimbursement for the ineligible items he sold and the cash he illegally distributed. Sentencing is set for November 7, 2014, in Anchorage.
Ms. Loeffler commends the Federal Bureau of Investigation, and United States Department of Agriculture, who administers the SNAP program, for their investigation of this case.Ketchikan Man Indicted by Federal Grand Jury for Receipt and Possession of Explosive Materials by a FelonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Ketchikan man was indicted by a federal grand jury in Anchorage for receipt and possession of explosive materials by a prohibited person.
Joseph Duane Brown, 39, of Juneau, Alaska, was charged in a one-count indictment that on or about July 4, 2013, while having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly receive and possess, in an affecting interstate and foreign commerce, explosive materials, specifically perchlorate explosive mixture and cap sensitive ammonium nitrate explosive mixture.The defendant was arraigned before Magistrate Judge Leslie C. Longenbaugh on August 15, 2014, and was ordered detained pending trial. Trial is currently scheduled for October 7, 2014.
According to Assistant United States Attorney Jack S. Schmidt, Brown faces a maximum sentence of ten years of imprisonment, $250,000 fine, and up to 3 years of supervised release for receipt and possession of explosive materials by a prohibited person. The actual sentence of the defendant will depend on the actual circumstances of the case and the criminal history, if any, of the defendant.
The case was investigated by special agents of 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.
Jury Convicts Former Owner of Valley Dairy, Inc. of False Statements to the USDA, Rural DevelopmentRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that on July 30, 2014, an Anchorage jury convicted a Wasilla woman, Karen Olson, 68, of one count of false statements to influence the United States Department of Agriculture, Rural Development Program, and one count of misprision of a felony. The convictions essentially involve Ms. Olson taking steps to cover up fraud perpetuated by Kyle Beus, the former President of Valley Dairy, Inc., in part by submitting false and fraudulent documents to the USDA. In May 2014, Beus was convicted of wire fraud and false statements to influence USDA, Rural Development (RD).
According to Assistant U.S. Attorney Retta Randall who prosecuted the case, trial evidence demonstrated that in 2007, through an appropriation, a one-time grant offering of $650,000 was made available by USDA, RD, to fund one or more small dairy projects in an effort to support and expand the dairy industry in Alaska.
Through that appropriation, Kyle Beus received a grant in the amount of $168,000 to support an ice cream and cheese making facility, and Rob Wells & Co., LLC, received $475,000 to support a milk manufacturing facility. Karen Olson wrote the grant application for Rob Wells, and unbeknownst to the USDA, she was a 50/50 partner in the Wells grant. Karen Olson was the former Alaska State Executive Director of the USDA, Farm Service Agency, from April 1993 through February 2001.
In November 2007, Olson, Wells, and Beus decided to join their projects and locate them in one dairy processing facility which became known as Valley Dairy, Inc., located at 7805 Palmer Wasilla Highway in Palmer, Alaska. They agreed that Beus would be the manager in charge of the day-to-day operations of the Valley Dairy, and he would manage the disbursement of USDA, RD, grant funds.
In September 2008, Olson discovered that Beus had inflated invoices which had been submitted by Olson and Wells to USDA, RD, and Beus had received kickbacks of grant monies. Some of those monies were diverted to assist his financially troubled restaurant, Klondike Creamery/Teeland’s. Olson became aware that because Beus had diverted grant funds to his personal use, funds were not available to pay the milk producers who were owed over $200,000, or to pay over $450,000 owed to construction vendors who had built the Valley Dairy.
Hence, within months after the Valley Dairy became operational, and due in part to fraud by Beus, the Valley Dairy was in jeopardy of being shut down. Subsequently, Karen Olson was named CFO for the Valley Dairy and Beus’ signature authority was removed from the bank accounts; however, he remained President of Valley Dairy, Inc.
Instead of informing USDA, RD, or law enforcement of Beus’s fraud, Olson sought USDA, RD’s assistance in securing a loan from the State of Alaska to replace the loss of funds. Olson submitted financial documents to USDA, RD, which were inaccurate and covered up the losses caused by Beus. The documents influenced USDA, RD, to allow the State to hold a first lien position on equipment in the Valley Dairy which had been purchased or obtained with federal grant funds. The State of Alaska then authorized loans to the Valley Dairy, some of which were used to pay vendors who should have been paid with the federal grant funds diverted by Beus. Within three months the Valley Dairy was once again in a poor financial state, and the dairy closed in 2012.
The jury acquitted Olson on a third count in the indictment charging her with mail fraud. Olson remains out on bail and her sentencing is scheduled for October 24, 2014.
As a result of her conviction for submitting false documents to the USDA to influence it to give up its first lien position, Olson faces a maximum sentence of 30 years of imprisonment, to be followed by five years of supervised release. She also may be fined up to $1 million. For taking actions to cover up Beus’ fraud – the misprision of felony count – Olson faces a maximum sentence of three years of imprisonment, to be followed by one year of supervised release and a potential maximum fine of $250,000.
Ms. Loeffler commends the U.S. Department of Agriculture, Rural Development, and the Federal Bureau of Investigation for the investigation of this case.
California Man Sentenced to 16 Years for Conspiracy to Distribute Heroin & MethamphetamineRead the Press Release
Anchorage, Alaska-United States Attorney Karen L. Loeffler announced that a Stockton, California man was sentenced today by U.S. District Court Judge Sharon Gleason to 16 years in federal prison for his role in a drug conspiracy.
Ernie Benny Juarez, Jr., 35, of Stockton, California previously pled guilty to conspiring with others to distribute large amounts of methamphetamine and heroin throughout the Anchorage community. As part of his plea, Juarez admitted flying to Alaska from California in October 2013. Co-conspirators subsequently sent Juarez and his associates an Express Mail package containing large quantities of heroin and methamphetamine, which Juarez intended to distribute in Anchorage. In total, the package contained approximately 385 grams of heroin and more than 500 grams of methamphetamine.
The sentence announced today included enhancements based upon Juarez’s classification as a career offender. Prior to flying to Anchorage to distribute drugs, Juarez had been convicted of multiple other felonies, including drug crimes in California.
In sentencing Juarez, Judge Gleason noted the seriousness of Juarez’s crime and the need to protect the public from future crimes. Judge Gleason also emphasized the need for deterrence in these types of cases.
In announcing the sentencing, U.S. Attorney Loeffler praised the United States Postal Inspection Service, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Alaska State Troopers, who conducted the investigation in this case.Fairbanks Man Sentenced to 57 MonthsRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a man from Fairbanks, Alaska was sentenced in federal court for possession of cocaine with the intent to distribute.
Etienne Devoe, 41, from Fairbanks, Alaska, was sentenced in Anchorage, Alaska, on Monday, July 28, 2014, by Chief United States District Court Judge Ralph R. Beistline. Devoe received a sentence of 57 months in prison, a fine of $2,240, and three years of supervised release for his conviction of possession of cocaine with intent to distribute.
Devoe was convicted by a Fairbanks jury on May 1, 2014. The evidence established that Devoe was present in a residence in Fairbanks, Alaska, on February 1, 2012, when law enforcement served a federal search warrant on the residence in connection with a separate federal indictment. During the search of the residence, a duffle bag was found in the room where Devoe had been sleeping. Inside the duffle bag, investigators found six ounces of powder cocaine and a small amount of crack cocaine. Also inside the duffle bag police found a pair of men's pants consistent with Devoe's size, and in one of the pants’ pockets law enforcement found a men's wallet that contained Devoe's identification and other documents with Devoe's name on them. Inside another pocket, law enforcement found $2,240, with the money wrapped in bundles of $1,000 and $240.
Before imposing a sentence, Chief Judge Beistline commented that the community was impacted by the defendant's drug dealing. Chief Judge Beistline noted that the defendant is the father of eight children with six different mothers and that the defendant's long history of convictions for domestic violence was part of a dysfunctional cycle. Chief Judge Beistline also commented that the defendant's activities were a danger to the community; in June 2013, the defendant was found inside a house in Fairbanks that had seven shots fired at it during a drive-by shooting.
Chief Judge Beistline ordered the $2,240 fine to be used to pay the defendant's outstanding child support bills.
Devoe has another federal trial scheduled for February 2015, where he is charged in a separate matter as a member of a large scale drug conspiracy.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Fairbanks Police Department, and the Alaska State Troopers for the investigation leading to the successful prosecution of Mr. Devoe.
California Man Convicted in Federal Drug Trafficking ConspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a California man was convicted yesterday in a case involving the trafficking of methamphetamine in Anchorage. A federal trial jury found David Alan Gonzales guilty of drug trafficking conspiracy and possession of methamphetamine with intent to distribute.
Gonzales, 55, was tried before United States District Court Judge Sharon L. Gleason in Anchorage.
According to Special Assistant U.S. Attorney Erin Bradley and law student intern Lyubov Bartnitskaia, who prosecuted the case, the evidence presented at trial established that Gonzales conspired to possess with intent to distribute and to distribute 52 grams of actual methamphetamine. This case came to light when the U.S. Postal Inspection Service identified a suspicious package at their processing center on March 26, 2013. The package had been sent to Anchorage from Anaheim, California. Gonzales and his co-defendant, Albert Diaz Gumataotao, accepted delivery of the package on March 28, 2013. Investigation revealed that the package contained 52 grams of methamphetamine. A forensic chemist from the U.S. Postal Service Forensic Laboratory testified that the purity of the methamphetamine was 100%. Though Gonzales was residing in Anchorage at the time of this offense, he has significant ties to the State of California, where he has lived most of his life.
Gonzales remains in custody pending sentencing. His co-defendant, Albert Diaz Gumataotao, pled guilty on November 6, 2013, to one count of drug trafficking conspiracy. On February 12, 2014, Judge Gleason sentenced Gumataotao to imprisonment for 120 months.
Judge Gleason scheduled sentencing for Gonzales on October 9, 2014, at 1:30 p.m. Based on the charges of conviction, as well as Gonzales’ prior California convictions for possession of methamphetamine and possession of methamphetamine for sale, Gonzales faces a sentence of up to life in prison, a fine of Twenty Million Dollars, or both.
Ms. Loeffler commends the U.S. Postal Inspection Service and the Anchorage Police Department for the investigation leading to the successful prosecution of Gonzales and Gumataotao. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office who is funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
Identity Theft Defendant Now Facing Weapons ChargesRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that Joseph Keenan May, 60, was charged in a superseding indictment with federal weapons offenses. Defendant May, of Eagle River and Houston, Alaska, was indicted in June for identity theft crimes. He now faces three new federal charges, alleging that he unlawfully possessed firearms while a fugitive from justice, he unlawfully possessed unregistered explosive devices, and he lied in an application for a federal firearms license.
May was arrested by an FBI tactical team at a home in Eagle River in the early morning hours of
Friday, June 20. He had been wanted for capital sexual battery in Bradenton, Florida, since 1991. He 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 indictment charges 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 is also charged with aggravated identity theft. The new charges allege that he possessed eight firearms despite his status as a fugitive; that he possessed destructive devices and components to make them, including an exploding arrow and at least nine hand grenades; and the he lied on a 2011 application for a federal firearms license by using Camp’s identity and by claiming that he was not a fugitive from justice or then charged with a felony.
May faces up to 39 years in prison on the federal charges in Alaska. He potentially faces life imprisonment in Florida.
Mr. Feldis 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 Sheriff’s Office.
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.
Fairbanks Man Sentenced to 110 MonthsRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a man from Fairbanks, Alaska was sentenced in federal court in Fairbanks for possession of powder and cocaine base ("crack") with the intent to distribute.
Benjamin Dewayne Smith, age 37, from Fairbanks, Alaska was sentenced on Wednesday, July 9, 2014, by United States District Court Judge Sharon L. Gleason, at the United States District Courthouse in Fairbanks. Smith received a sentence of 110 months in prison and 4 years of supervised release for his conviction of possession of powder and cocaine base ("crack") with intent to distribute.
A residence located at 660 Wilcox Street in Fairbanks, Alaska was searched by federal law enforcement agents in January 2012, pursuant to a federal search warrant. During the search of the residence, law enforcement found 434 grams of marijuana, 215 grams of powder cocaine, and 62 grams of cocaine base ("crack"). Law enforcement also found other items in the residence consistent with drug distribution. It was later discovered that this apartment was used by Smith as a "trap house" where he would store illegal narcotics; he also used the apartment as a hub for his distribution activity.
Smith has two prior felony convictions with the State of Alaska for distribution of controlled substances and one prior felony conviction for possession of cocaine.
Before imposing a sentence, Judge Gleason commented that drug distribution crimes harm many individuals in the community and they should be taken seriously. She also noted that she hoped that members of the community would be aware of the lengthy sentence she intended to give Smith, and hoped that would serve as a deterrent to others in the community that may choose to engage in similar behavior as Smith.
Ms. Loeffler commended the Drug Enforcement Administration, the Fairbanks Police Department, and the Alaska State Troopers for the investigation leading to the successful prosecution of Mr. Smith.
Anchorage Man Sentenced to 60 MonthsRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a man from Anchorage, Alaska was sentenced in federal court in Anchorage for robbing two banks in February and March 2014.
Cameron Patrick Fergerson, age 25, from Anchorage, Alaska was sentenced on Thursday, July 10, 2014, by United States District Court Judge Sharon L. Gleason, at the United States District Courthouse in Anchorage. Fergerson received a sentence of 60 months in prison and 3 years of supervised release for his convictions of two counts of bank robbery.
On February 25, 2014, at the Credit Union 1 bank located on Abbot Road in Anchorage, Fergerson approached a bank teller and handed her a note demanding money. As the teller was counting out money, Fergerson snatched $1,600 from her and then ran out the door. On March 1, 2014, at the Alaska USA bank located on W. Dimond Blvd., Fergerson approached a bank teller and handed her a note demanding money. The bank teller handed Fergerson $2,078 that he then stuffed into his pockets before running out the door. During both robberies Fergerson was dressed in a similar fashion, wearing a black leather jacket with a hood pulled up, a baseball hat, and sunglasses.
Before imposing a sentence, Judge Gleason commented that the defendant has a long criminal history of theft related offenses and this was demonstrative of an individual that had shown a lack of respect for the law. Judge Gleason noted that it must have been a frightening experience for the bank tellers when the defendant approached them and handed them a note demanding money. Judge Gleason also commented about how the public needs to have confidence that when they go to or use financial institutions that there is a low likelihood of these types of crimes occurring.
Ms. Loeffler commended the Federal Bureau of Investigation and the Anchorage Police for the investigation leading to the successful prosecution of Mr. Fergerson.
Kodiak Man Sentenced to Four Consecutive Life Sentences for Murder of Coast Gaurd Employees in KodiakRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced that today, Chief District Court Judge Ralph Beistline sentenced James Michael Wells to four consecutive life sentences for the murders of U.S. Coast Guard Electrician’s Mate First Class James Hopkins and retired Chief Boatswain’s Mate Richard Belisle on April 12, 2012. Both Hopkins and Belisle, who was working a Coast Guard civilian employee, were murdered at U.S. Coast Guard Communications Station Kodiak.
Wells, 63, of Kodiak, was convicted after a 19-day jury trial on all six counts of the indictment: two counts murder in the first degree, in violation of 18 U.S.C. § 1111, one for each victim; two counts of murder of an officer or employee of the United States, a violation of 18 U.S.C. § 1114, one for each victim; and two counts of possession and use of a firearm in relation to a crime of violence, a violation of 18 U.S.C. § 924(c).
Wells was given one life sentence for the murder of Richard Belisle, counts 1 and 3 of the indictment, and a second consecutive life sentence for the murder of Petty Officer James Hopkins, counts 2 and 4 of the indictment. Wells was also given 2 additional consecutive life sentences, one for each victim, for using a firearm to commit the murders. There is no possibility of parole.
In a brief statement, Wells said that he was innocent, a claim rejected by Chief Judge Beistline: “There’s one thing I know, James Wells is a cold-blooded murderer. Any objective person would reach the same conclusion.” He found that Wells acted out of “anger, envy, and jealousy,” murdering his “competition” because he “could not compete” in the workplace anymore. He noted that Wells has showed no remorse, and that this level of “extreme criminal conduct” called for the maximum sentence.
Chief Judge Beistline also commented that the wives of both murdered men had attended the entire trial, and conducted themselves in a way that showed their strength of character.
Ms. Loeffler commended the strength and fortitude of the Belisle and Hopkins families throughout the investigation and the trial. She also commended the thoroughness and professionalism of the investigation, led by the Federal Bureau of Investigation, with support from the Coast Guard Investigative Service, and the Alaska State Troopers.
U.S. Attorney Karen L. Loeffler prosecuted the case along with Assistant U.S. Attorney Bryan Schroder, and Captain Kathleen A. Duignan, U.S. Coast Guard, who was appointed as a Special Assistant U.S. Attorney, with support from Assistant U.S. Attorney Bryan Wilson.Sacramento Man Sentenced to Prison for Drug ConspiracyRead the Press Release
Anchorage, Alaska-United States Attorney Karen L. Loeffler announced today, July 7, 2014, that John Joseph Brennan III, of Sacramento, California was sentenced in federal court in Anchorage for his role in a drug conspiracy to distribute and to possess with the intent to distribute oxycodone.
Brennan, 61, was sentenced to 68 months imprisonment and 3 years of supervised release by United States Chief District Judge Ralph R. Beistline, for his role in the drug conspiracy involving the distribution of oxycodone in Fairbanks and Juneau, Alaska between the dates of September 2008 to September 2010.
According to information presented to the court by Assistant United States Attorney Jack S. Schmidt, the defendant was a member of a large scale drug conspiracy where oxycodone was delivered to Fairbanks and Juneau, Alaska supplied by the defendant and others who were located in Sacramento, California through commercial package delivery services and drug couriers flying on commercial flights. Oxycodone was delivered to other members of the conspiracy in Fairbanks and Juneau for subsequent distribution and the other members of the conspiracy funneled drug proceeds back to other co-conspirators located in Sacramento, California via bank deposits, wire remittance services, or drug couriers. These drug proceeds were used to purchase additional oxycodone from Brennan, who acted as a source of supply for the conspiracy by obtaining oxycodone from physicians located in Sacramento, California and distributing the pills to other co-defendants, specifically Dante Whitley, Wilbert Barber, Deandre Dantzler, Michael Miller and Milan Thomas who distributed the pills in Alaska. Members of the conspiracy laundered the drug proceeds using bank transactions and wire transfers in order to conceal the nature of the drug proceeds, and structure deposited the drug proceeds in a manner to avoid federal reporting requirements.
Prior to imposing sentence, Judge Beistline indicated the extreme seriousness of the offense prior to imposing the defendant sentence and stated that “members of the community were sick and tired of what drugs do to their community,” and that deterrence of the defendant and others were important aspects in fashioning an appropriate sentence. Judge Beistline further stated Brennan had made a significant turnaround in his life after his contact with law enforcement by immediately seeking and successfully completing drug treatment and becoming a drug counselor to others while out on release awaiting sentencing, as reasons for the sentence he imposed.
Ms. Loeffler commended the Drug Enforcement Agency (DEA), Port of Seattle Police Department, and the Juneau Police Department-Drug Metro Unit for the investigation leading to the successful prosecution of the above listed defendants.Three California Men Sentenced for Leading a Large Scale Juneau Oxycodone Distribution and Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that three defendants in a multi-year, multi-agency investigation have been sentenced for their roles in a large-scale drug trafficking and money laundering conspiracy operating between California and Alaska. The defendants sentenced were:
- MILAN CAPRICE THOMAS, 43, of Sacramento, California, was sentenced to 105 months imprisonment and three years of supervised release on June 24, 2014. Thomas pled guilty in May 2012 to conspiracy to distribute and to possession with the intent to distribute oxycodone, and conspiracy to launder money.
- DEANDRE TYRON DANTZLER, 34, of Sacramento, California, was sentenced to 144 months imprisonment and five years supervised release on June 24, 2014. Dantzler pled guilty in July 2011 to conspiracy to distribute and to possession with the intent to distribute oxycodone.
- RICHARD MELVIN CORUM, 31, of Sacramento, California, was sentenced to 120 months imprisonment and six years supervised release on June 23, 2014. Corum was convicted at a jury trial on July 1, 2013, for conspiracy to distribute and to possession with the intent to distribute oxycodone, and witness tampering.
According to filings with the court, Thomas, Dantzler and Corum were high-level members of a drug trafficking conspiracy who acquired large amounts of oxycodone from suppliers in the lower 48 states. In 2007, Thomas and Dantzler began transporting oxycodone on their person to Juneau, Alaska, using commercial air travel, and travelled back body-carrying drug proceeds. The pair later used drug couriers to carry drugs on commercial aircraft to Alaska and drug proceeds back to California. Thomas and Dantzler would arrange flights for couriers who would import the oxycodone to other members of the conspiracy in Juneau for subsequent sale. Thomas and Dantzler later used bank accounts and wire remittance companies to transfer drug proceeds from Alaska to California. Thomas and Dantzler used dozens of people in the procurement, transport, and sale of tens of thousands of oxycodone pills in the Juneau area and Thomas laundered over $1.5 million in drug proceeds through his bank account and that of another co-conspirator.
Corum joined the conspiracy in early 2011 as a source of supply. Due to heavy law enforcement interdiction efforts, Corum was later brought in by Thomas to be an equal member in the conspiracy. Corum recruited drug couriers to travel to Alaska for the conspiracy and had the couriers reside in the community, while receiving packages containing oxycodone via package delivery services in order to avoid detection.
On March 2, 2012, Corum was arrested for his role in the drug conspiracy. Corum made numerous threats to potential witnesses against him while awaiting trial. He said, “Everyone that is going to testify against me will disappear.” Corum later assaulted an individual who was cooperating with law-enforcement and was scheduled to testify at Corum’s trial. He was also convicted by the jury of a charge relating to this assault.
In sentencing the defendants, United States District Court Judge Timothy M. Burgess repeatedly emphasized the seriousness of the offense due to the human wreckage caused by the defendants’ distribution of a highly addictive narcotic, and noted the need to protect the public and to deter the defendants and others from committing these types of crimes in the future.
“This multimillion dollar enterprise submerged Juneau in a sea of addiction,” said DEA Special Agent in Charge Matthew G. Barnes. “The nationwide prescription drug and heroin epidemic is fueled by organizations just like this. The success of this investigation is attributed to the ongoing partnership between DEA and our federal, state, and local law enforcement partners.”
“Large-scale narcotic trafficking operations infect our communities with crime and destroy the lives of people caught up in using the poison they peddle,” said Kenneth J. Hines, Special Agent in Charge of Internal Revenue Service, Criminal Investigation, in Seattle. “Drug crimes leave a paper trail and I am pleased that the IRS partners with the interdiction efforts of the DEA and local law enforcement to dismantle these organizations.”
Ms. Loeffler commends the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, Port of Seattle Police Department, and the Juneau Police Department - Drug Metro Unit, for the investigation leading to the successful prosecution and dismantlement of this large criminal organization.
Petersburg Man Pleads Guilty in Federal Court to Distribution, Receipt, and Possession of Child PornographyRead the Press Release
Anchorage, Alaska-United States Attorney Karen L. Loeffler announced today that Tye Leif Petersen, 46, a resident of Petersburg, Alaska, pled guilty in federal court to distribution, receipt, and possession of child pornography.
According to the facts presented in court by Assistant U.S. Attorney Jack S. Schmidt, on July 29, 2013, the Federal Bureau of Investigation in Juneau received information from a related federal investigation in the Eastern District of Tennessee investigating the distribution, receipt, and possession of child pornography. The investigation identified an email account belonging to defendant Tye Leif Petersen. This email account contained six videos of child pornography. The Internet Protocol (IP) address indicated that Petersen lived in Petersburg, Alaska, and had used this account to access child pornography. Further investigation revealed that Petersen received and possessed 22 videos and 291 photos of child pornography from an individual in the Eastern District of Tennessee. A search warrant was obtained for Petersen’s home where FBI agents recovered 11 CD-ROM’s, five thumb drives, three detached hard drives, and one Apple Desktop computer which all contained images of child pornography and contained an additional 37 videos of child pornography. Petersen identified an additional email account that showed activity of Petersen’s distribution of child pornography.
Judge Timothy M. Burgess, who took Petersen’s plea, scheduled sentencing for November 11, 2014, at 11:00 a.m. The law provides for a mandatory minimum sentence of five years on the distribution and receipt charges, and each charge carries a maximum sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense(s) and the criminal history, if any, of the defendant.
Ms. Loeffler commends the agents of the Federal Bureau of Investigation who conducted the investigation that led to the prosecution of Petersen.
Long Time Fugitive Arrested for Identity TheftRead the Press Release
United States Attorney Karen L. Loeffler, announced the arrest of Joseph Keenan May, 60, on identity theft charges. May, of Eagle River and Houston, Alaska, has been wanted for capital sexual battery in Brandenton, Florida, since 1991. He has been 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 indictment charges 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 is also charged with aggravated identity theft. May faces up to 12 years in prison on the federal charges in Alaska. He potentially faces the death penalty in Florida.
May was arrested by an FBI tactical team at a home in Eagle River in the early morning hours of Friday, June 20. May will be arraigned before a federal judge in Anchorage at 2:30 p.m. on Friday.
Ms. Loeffler commends the efforts of the Social Security Administration, Office of the Inspector General, and the Federal Bureau of Investigation (FBI), Anchorage Division for conducting the investigation that led to the Alaska indictment 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 Sheriff’s Office.
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 Man Indicted by Federal Grand Jury for Theft of Labor Union FundsRead the Press Release
Anchorage, Alaska- A Juneau man was indicted by a federal grand jury in Anchorage for embezzlement of labor union assets.
United States Attorney Karen L. Loeffler announced that Jonathan H. Smith, 42, of Juneau, Alaska, was charged in a one-count indictment that between April 16, 2007 and May 8, 2012, while acting as a Financial Secretary employee and officer of LU 2247, did embezzle and unlawfully convert to his use money, funds, property and other assets of LU 2247 totaling approximately $40,000.00.
The defendant was arraigned before Magistrate Judge Leslie C. Longenbaugh on June 19, 2014, and was ordered released with conditions pending trial. Trial is currently scheduled for August 24, 2014.
According to Assistant U.S. Attorney Jack Schmidt, Smith faces a maximum sentence of five years of imprisonment, a $250,000 fine, and up to 3 years of supervised release for the embezzlement of labor union funds. The actual sentence of the defendant will depend on the actual circumstances of the case and the criminal history, if any, of the defendant.
The case was investigated by special agents of Department of Labor.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.
Sex Offender Sentenced to 26 Years for Child Sexual ExploitationRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Connecticut man was sentenced in federal court in Anchorage for advertising and distributing child pornography in Alaska. Michael J. Carroll, 59, was sentenced to 26 years in prison, followed by lifetime supervised release. Carroll, using social networking tools and emails, advertised that he was seeking and offering to exchange, distribute and receive child pornography, and actually distributed child pornography to an email group of 48 users.
Carroll, from Milford, Connecticut, was sentenced today by Chief United States District Court Judge Ralph R. Beistline, to 312 months (26 years) in prison. Chief Judge Beistline also sentenced Carroll to serve a lifetime term of supervised release, with specific conditions to register as a sex offender, to have no unsupervised contact with any person under the age of 18, and to participate in sex offender assessment and treatment.
According to Assistant U.S. Attorney Kimberly Sayers-Fay, Carroll was convicted in Federal court in Anchorage on February 6, 2014, after a four-day jury trial, for one count of Advertising Child Pornography and two counts of Distributing Child Pornography. Trial evidence demonstrated that in late 2011, Carroll offered to trade sexually explicit images of children with other users involved in an international email group that an undercover agent in Alaska had infiltrated. Carroll also distributed close to 100 sexually explicit images on two occasions to the approximately fifty persons in this same email group, including the Alaskan undercover agent. The sexually explicit images of children that Carroll distributed involved victims ranging from elementary school-aged children to toddlers and infants. Other offenders in the same email group were previously prosecuted in Alaska.
At trial, Carroll argued that remote control of his computer via “hacking” explained both the presence of hundreds of images and videos of child pornography on his multiple computers, as well as the distribution of child pornography from his Yahoo! email address. Carroll testified that he was a highly skilled computer technician with a very sophisticated network, and that despite this, hackers were able to cause his email to send messages reflecting the Internet Protocol (IP) address assigned to his home, and were also able to populate his computer system with sexually explicit images of children organized in a plethora of conspicuously named folders. Carroll likened his experience to that of Target, the retailer whose data was harvested by hackers. In convicting the defendant, the jury rejected the assertion that someone else was responsible for these crimes.
In sentencing Carroll, Chief Judge Beistline noted that Carroll was a “sociopathic pedophile, a pathological liar and a narcissist” with a “lifelong history” of abusing vulnerable victims. The Court also remarked that the victims Carroll viewed are real children with hopes and dreams. They are innocents, susceptible to manipulation, whose lives are scarred forever by these crimes. As Chief Judge Beistline observed, “Children are messages we send to a world we will not see.”
In imposing his sentence, Chief Judge Beistline observed that Carroll lied to the jury during the trial, oblivious to the fact that his testimony was ludicrous. The judge noted that the trial and presentence investigation revealed Carroll’s true character and a string of past abuses. The court also considered that Carroll had no ability to admit his crimes and had no remorse for them, leading Chief Judge Beistline to conclude that rehabilitation for Carroll was unlikely. Finally, Chief Judge Beistline disabused Carroll of his notion that he had a First Amendment right to review child pornography to satiate his “curiosity.”
In addition to the 100 images he emailed to 48 people, Carroll’s multiple computers contained about 2000 images and 340 videos of child pornography. A dozen child victims were identified in those images, and eleven victims submitted letters describing the serious harms they had suffered as the result of being sexually exploited. Chief Judge Beistline acknowledged those harms and the seriousness of child pornography crimes when he sentenced Carroll to the 26 year prison sentence, followed by supervised release for the rest of Carroll’s life.
Commenting on the sentence, United States Attorney Karen L. Loeffler stated, “Protecting our children from predators such as Mr. Carroll is a priority mission. Every child depicted in these media had their childhood stolen and is victimized by every repeated viewing by those who would exploit children for personal benefit. Modern communications add much benefit to many facets of our daily personal and professional lives, but we will continue to work tirelessly with our law enforcement agencies as well as private and public partners in fighting against these pernicious crimes.
Ms. Loeffler commends Homeland Security Investigations in Alaska and Connecticut, the Alaska Bureau of Investigation and the Anchorage Police Department for their extensive investigation of this case, and acknowledges their persistent dedication to rescuing child victims from sexual exploitation, and pursuing the sexual predators who harm children.Anchorage Gang Member Sentenced to 19 Years for Carjacking, EscapeRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced that a gang member with a long criminal record of violence was sentenced today to federal prison for escape and carjacking.
United States District Court Judge Sharon L. Gleason sentenced Andrea Lavelle Vickers, 25, to serve 19 yearsin prison. Vickers, of Anchorage, pled guilty to criminal charges stemming from his escape from a halfway house where he was finishing a federal prison sentence stemming from a firearms charge, and a subsequent high-speed chase by Anchorage Police officers in the early morning hours of January 11, 2014.
According to documents and testimony provided in court, Vickers escaped from the Cordova Center halfway house in Anchorage on January 4, 2014.
On January 11, Vickers abducted his former girlfriend and her infant child, forcibly taking her car in the process. Vickers threatened to throw the child out the window, and take the 19-year-old victim to the valley, where he planned to kill her and burn her body. Vickers obtained a can of gasoline and 72 rolls of toilet paper to accomplish the burning.
The victim convinced Vickers to let her drop off the baby with a friend, and she asked the friend to call 911 and report the kidnapping. Anchorage Police spotted the car, and Vickers fled at high speed because he knew he was wanted on the escape charge. Running red lights and speeding at 80-85 mph on the Glenn Highway, Vickers then exited the highway at Boniface Parkway, ran the red light and crashed into another vehicle occupied by two women. The kidnap victim and the other two women were injured, and Vickers fled on foot. He was arrested nearby after a foot pursuit by APD officers.
In imposing the sentence, Judge Gleason found that Vickers had used death threats and force, that he chose vulnerable victims, that he recklessly endangered others during flight, that he caused bodily injury to the victim, and that he obstructed justice. Evidence presented in court showed that despite no-contact orders from a state judge and two federal judges, Vickers repeatedly called the victim from jail to threaten or otherwise persuade her to drop charges against him and change her story.
Court papers show that Vickers, although only 25, already has a long, violent criminal record, including numerous crimes involving firearms and prior threats to victims. According to testimony provided in a prior federal court sentencing, Vickers has admitted being a member of at least two Anchorage street gangs, and has numerous gang tattoos.
Vickers still faces state criminal charges stemming from the pursuit and crash on January 11.
United States Attorney Karen Loeffler stated, “Mr. Vickers, though young, is and was a violent gang member who preyed on the community through violence and intimidation as reflected in the very significant sentence imposed by Judge Gleason. I am proud of our partnership between our hard working federal, state and local law enforcement agencies and our continued joint commitment to enhancing the safety of our communities through prosecution of dangerous individuals such as Mr. Vickers.”
Ms. Loeffler commends the U.S. Marshals Service and the Anchorage Police Department for the investigation leading to the convictions in this case. The U.S. Attorney’s Office worked closely with and received substantial assistance from the Violent Crime Unit of the Anchorage District Attorney’s Office in the investigation and prosecution of Vickers, and Ms. Loeffler extends her thanks to Deputy District Attorney Gustaf Olson, the chief of that unit.City of Tanana Employees Sentenced to Prison for Wire Fraud and TheftRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two Fairbanks men were sentenced on Friday, June 6, 2014, in federal court in Fairbanks after being found guilty of wire fraud and theft from a local government receiving federal funds.
Alfred Richard Ketzler, Jr., also known as “Bear” Ketzler, 57, of Fairbanks, Alaska, was sentenced to 16 months in prison to be followed by two years of supervised release by Chief U.S. District Court Judge Ralph R. Beistline. Ketzler pled guilty in March 2014. Ketzler has already paid restitution to the City of Tanana in the amount of $116,500.Alfred McQuestion Fabian, 62, of Fairbanks, Alaska, was sentenced to six months in prison to be followed by two years of supervised release by Chief U.S. District Court Judge Ralph R. Beistline. Fabian pled guilty in March 2014.
Assistant U.S. Attorney Yvonne Lamoureux, who prosecuted the case, noted that according to filings with the court, Ketzler and Fabian participated in a three-year scheme to defraud and obtain money and property by means of materially false and fraudulent pretenses and representations. Specifically, Ketzler, as the City Manager for the City of Tanana, and Fabian, as the expediter for the City of Tanana, abused their positions of trust to obtain excess federal property through the Federal Personal Property Utilization Program and illegally sell the property for personal gain and convert the property for personal use. Between December 2009 and November 2012, Ketzler and Fabian received at least $122,000 in illegally obtained payments for the sales of about 11 pieces of equipment, including trucks, fork lifts, and other heavy industrial equipment. They deposited the money from the illegal sales of the property into their personal bank accounts.
In sentencing Ketzler, Judge Beistline noted the need for the sentence to deter not only the defendant but also other people from abusing their positions of trust. Judge Beistline also noted that the purpose of the Federal Personal Property Utilization Program was not to enrich city managers or individuals, and that the victims of the defendants’ crimes include the Federal Personal Property Utilization Program, the other native and rural communities that could have benefited from the Program, and taxpayers.
Kevin Feldis, First Assistant U.S. Attorney, stated that “The United States Attorney’s Office is dedicated to prosecuting those who steal from federal programs. All citizens are victims when someone steals federal property or fraudulently abuses federal programs for their own personal gain.”
“This federal excess property was supposed to benefit the City of Tanana, Alaska, not be illegally sold by city officials for personal profit,” said U.S. General Services Administration Acting Inspector General Robert C. Erickson.
Ms. Loeffler commends the Federal Bureau of Investigation and the General Services Administration Office of Inspector General for conducting the investigation leading to the successful prosecution of Ketzler and Fabian.Anchorage Man Faces Federal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that a local man was arraigned in federal court in Anchorage on two counts of possession of controlled substances with intent to distribute.
Amos Lee Blakeney, 47, was charged in a two-count indictment.
According to the information presented to the court, Blakeney possessed both heroin and cocaine with the intent to distribute the substances to other individuals. The indictment also seeks forfeiture of over six thousand nine hundred dollars seized during the course of this investigation.
Special Assistant U. S. Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation Safe Streets Task Force and the Anchorage Police Department conducted the investigation leading to the indictment in this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Wasilla Resident Pleads Guilty to Possessing Unregistered Silencer and Killing a Moose in Denali National ParkRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Wasilla resident James C. Riggs plead guilty before U.S. District Court Judge Sharon L. Gleason to possessing an unregistered silencer and for killing a bull moose in Denali National Park in 2012.
The plea arises from charges filed against Riggs, 58, by a federal grand jury, for illegally possessing an unregistered .22 caliber silencer. In a separate matter, Riggs and three other Southcentral Alaska men were charged by the United States Attorney’s Office with a violation of the Lacey Act and other crimes in connection with the take and possession of two bull moose which were illegally taken in Denali National Park in September 2012. As part of his plea agreement, Riggs plead guilty to both charges.
According to Assistant U.S. Attorney Steven Skrocki, the silencer was discovered in Riggs’ home in November 2012, while it was being searched in connection with the Denali moose hunt.
In December 2013, Anchorage residents Charlie W. Hart, 55, and Deric C. Hart, 33, and Homer resident Michael J. Barth, plead guilty to the illegal take and transportation of bull moose from within Denali National Park. In connection with their guilty pleas, all three men were sentenced by U.S. Magistrate Judge Deborah M. Smith, to a term of probation for two years, the payment of $15,000 in restitution to Denali National Park for the two moose illegally taken, a $2500 fine, no hunting for one year, and forfeiture of moose antlers and moose meat as well as one firearm used in the illegal take of a moose.
According to Assistant U.S. Attorney Steven Skrocki, in September 2012, Charles Hart sought, through a third party, permission to moose hunt on a private in-holding of land in the Kantishna area of Denali National Park. Based on Charles Hart’s request, the third-party contacted a landowner who granted permission to Charlie Hart’s party to hunt the inholding on the express condition that only one bull moose be taken, and that the hunt occur within the confines of the private inholding.
In September 2012, Charlie Hart, Derek Hart, James Riggs and another individual traveled the Denali National Park Road to the Kantishna area of Denali National Park to the private inholding. The hunting party obtained appropriate Denali Park Road permits prior to traveling.
During the hunt, all members of the hunt party hunted for bull moose outside the confines of the private inholding and in Denali National Park. While doing so, the party used electronic moose cow calls and hunted the lands well outside the boundary of the inholding, including the mountainsides above the inholding. Using an electronic cow call for hunting is illegal under state law.
On September 3, 2012, Deric Hart, in the company of Michael Barth and another individual, hunted for bull moose outside of the inholding. While hunting outside the property, the group spotted a bull moose a short distance outside the property boundary and/or adjacent to the boundary line, which Deric Hart killed. Thereafter, the hunt party dragged the unlawfully hunted and killed bull moose onto the private inholding by ATV. The bull moose was thereafter field dressed and the antlers removed from the skull. The bull moose’s antlers measured approximately 64 inches.
Two days later, on September 5, 2012, Michael Barth and Derek Hart continued to hunt moose in Denali National Park. On that day, James Riggs was hunting moose outside of the inholding and on another landowner’s property who did not give permission for his land to be hunted. During that day, Riggs shot and killed a bull moose in Denali National Park. Subsequent to killing the bull, Riggs permitted Barth to tag the moose as if he, Barth, had shot and killed the moose. After shooting the second moose, the party illegally used ATV’s and a utility task vehicle (UTV) in a closed off-road vehicle (ORV) area to drag the moose from the location where it fell, in Denali National Park, approximately another one-half mile back to the inholding property for field dressing. The second moose’s antlers measured 65 inches. The following day, the hunt party loaded the meat and antlers of the two unlawfully killed moose into vehicles and transported them to Anchorage. On the way out of Denali National Park, the party was stopped by the National Park Service and questioned. During the questioning, the hunting party lied to a National Park Ranger about the location of the kills, the rifles used to kill the moose and that Barth killed one of the moose when in fact the second moose was killed by James Riggs.
Ms. Loeffler commends the National Park Service, the United States Fish and Wildlife Service, the Bureau of Land Management, the Bureau of Alcohol, Tobacco and Firearms, and the Alaska Wildlife Troopers for their work in the investigation of this case. Sentencing has been set for August 11, 2014.
Anchorage Couple Sentenced for Christmas Mail TheftsRead the Press Release
Anchorage, Alaska – United States Attorney Karen Loeffler announced that James Joseph Baehm, Jr., 47, and Melody Baehm, 41, of Anchorage, were sentenced today for their involvement in stealing mail just before Christmas 2013. The Baehms were arrested in the early morning hours of December 22, 2013, in the Upper Hillside area of South Anchorage, where they had been stealing mail from residential mailboxes. Further investigation revealed that they had also stolen mail a week earlier, and had cashed stolen checks amounting to approximately $2000. The United States Postal Inspection Service identified between 80 and 100 victims whose mail was taken by the Baehms, and either recovered from their vehicle or found dumped in trash bins.
U.S. District Court Judge Timothy M. Burgess sentenced each defendant to a five-year term of probationary supervision. Each defendant must spend six months in community confinement, either in a halfway house or in a residential drug treatment facility. The court found that each defendant has a serious heroin addiction that must be addressed if they are to successfully re-enter the community, and ordered them each to submit to an evaluation to determine the extent of their substance abuse problems. Judge Burgess also imposed the requirement that each defendant devote at least 40 hours per week to employment, seeking employment, or job training. He also ordered them to each perform 400 hours of community service and ordered them to pay $1850 in restitution to Alaska USA Federal Credit Union to pay back the money they stole by forging the stolen checks.
The defendants have been in federal custody since their arrest on December 22, 2013, having served five months in jail. Each faces several pending felony and misdemeanor state theft charges, as well as probation violations on prior state property crimes.
Ms. Loeffler thanks the United States Postal Inspection Service and the Anchorage Police Department for their work in solving this case.
Fairbanks Man Indicted for Making False Statements in Connection with February, 1978 Bombing of Trans Alaska PipelineRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Fairbanks man has been indicted by a federal grand jury for three counts of making false statements to the Federal Bureau of Investigation in connection with a recent renewed investigation of a bombing attack on the Trans Alaska Pipeline which took place in mid-February of 1978. The indictment alleges that PHILLIP MARTIN OLSON, age 61 of Fairbanks, made admissions to the FBI last fall and earlier this year concerning his own involvement in the 1978 pipeline attack, but falsely implicated another individual in carrying out the bombing with him.
On February 15, 1978, a pilot flying over the pipeline north of Fairbanks, Alaska spotted what appeared to be a large plume of crude oil jetting from the pipeline at approximately mile 454.5. An investigation established that an explosive device had been placed on the pipeline and successfully detonated, resulting in a large breach. Approximately 12,000 to 14,000 barrels of crude oil was ejected from the pipeline and onto the surrounding terrain before the spill was stopped. After an investigation by the state and federal law enforcement agencies, no one was charged with carrying out the 1978 bombing attack.
The indictment alleges that more than 35 years later – in November of 2013 – the Federal Bureau of Investigation was notified that OLSON had been making recent statements admitting that he had carried out the 1978 pipeline bombing. A renewed joint investigation by the FBI and the Alaska State Troopers commenced, which included multiple interviews of OLSON, and others. The indictment alleges that when interviewed on three occasions, OLSON admitted that he had carried out the 1978 attack, but falsely implicated another individual in carrying out the bombing with him.
OLSON was arrested in Fairbanks by the FBI and the Alaska State Troopers this morning, and was arraigned at 3:00 p.m. this afternoon before U.S. Magistrate Judge Scott A. Oravec. OLSON was ordered temporarily detained pending a detention hearing to be held before Judge Oravec next week.
Assistant United States Attorney Joseph Bottini, who presented the case to the grand jury, indicated that the law provides for a sentence of up to five years, as well as a fine of $250,000 and up to 5 years of supervised release following service of a prison sentence for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation and the Alaska State Troopers conducted the investigation leading to the indictment in this case. Alyeska Pipeline Services Company provided significant cooperation to the investigating agencies.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Anchorage Woman Arraigned on Identity Theft, Passport, PFD and Benefits FraudRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Maualuga Leaana, 43, of Anchorage was arraigned on federal charges that she committed identity theft and falsely claimed U.S. citizenship to obtain various federal and state benefits. The Indictment, which was returned by the federal grand jury in April, charges Leaana with one count of passport fraud, nine counts of making false claims of U.S. citizenship, and one count of aggravated identity theft. The Indictment alleges that Leaana is a citizen of Samoa, formerly known as Western Samoa. Citizens of Samoa are not U.S. citizens, in comparison to those born in American Samoa, who do hold U.S. nationality by birth.
Leaana is charged with applying for and obtaining a U.S. passport in the name of her sister. She is also charged with falsely claiming U.S. citizenship on various applications for benefits, including Alaska Permanent Fund Dividends, unemployment compensation, and subsidized housing, as well as obtaining identification from the Alaska Division of Motor Vehicles. The Indictment alleges that she obtained over $14,000 in PFDs between 2003 and 2013, and that she also unlawfully obtained over $17,000 in unemployment benefits. The defendant faces a maximum prison term of ten years for passport fraud, with an additional two years consecutive for identity theft. Each of the false claims of citizenship charges carries a maximum term of five years of imprisonment. Each of the 12 counts carries a maximum fine of $250,000. Restitution to the State of Alaska can be ordered by the court in addition to any fines or other penalties.
The case was investigated by the U.S. Department of State, Diplomatic Security Service; the Social Security Administration, Office of the Inspector General, Office of Investigations; the Department of Homeland Security, Homeland Security Investigations, Immigration and Customs Enforcement; the Alaska Department of Revenue, Criminal Investigations Unit, and the Alaska Department of Labor and Workforce Development.
Fairbanks Man Convicted of Possession of Cocaine with Intent to DistributeRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today, that on Thursday, May 1, 2014, after a short trial, and deliberating for under 3 hours, a jury of 10 women and 2 men, found Etienne Devoe, of Fairbanks, Alaska, guilty of possession of cocaine with the intent to distribute.
Devoe, 41, was tried before United States District Court Chief Judge Ralph R. Beistline in Fairbanks.
Devoe was convicted of one count of possession of cocaine with intent to deliver, a violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C). Devoe was charged by indictment in February 2014, regarding an incident that occurred in Fairbanks in February 2012.
Assistant U.S. Attorney Kelly Cavanaugh prosecuted the case.
In Fairbanks, Alaska, on February 1, 2012, at around 6:00 a.m., law enforcement executed a federal search warrant on a residence in connection with a separate federal indictment regarding a Fairbanks drug conspiracy. Though not named as a co-conspirator in that drug conspiracy, Devoe was found in the residence along with two other individuals. Devoe was in possession of six ounces of powder cocaine and a small quantity of crack cocaine that he intended to distribute. The illegal narcotics in Devoe's possession were found inside of a duffle bag in the room where Devoe had been sleeping when law enforcement agents executed the search warrant. Law enforcement also found $2,240 in currency in the pocket of a pair of pants found in the duffle bag, as well as Devoe's wallet and identification. A gym membership form that had been filled out by Devoe was also in the duffle bag. The money was bundled in two $1,000 quantities and one $240 quantity, and wrapped with rubberbands. This is how drug distributors carry their money. In February 2012, six ounces of cocaine had a street value in Fairbanks of roughly $1,700 per ounce or $10,000 total.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Alaska State Troopers, the Fairbanks Police, the University of Fairbanks Police, and the U.S. Marshal Service for the investigation leading to the successful prosecution of Mr. Devoe.
Devoe is currently awaiting trial in a separate matter, a federal drug conspiracy scheduled for trial in Anchorage on August 11, 2014.Kodiak Man Convicted for Murder of Coast Guard Employees in KodiakRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced that today, after deliberating for 6 hours, a jury of 6 women and 6 men, found James Michael Wells guilty of the murders of U.S. Coast Guard Electrician’s Mate First Class James Hopkins and retired Chief Boatswain’s Mate Richard Belisle on April 12, 2012. Both Hopkins and Belisle, who was working as a Coast Guard civilian employee, were murdered at U.S. Coast Guard Communications Station Kodiak.
Wells, 62, of Kodiak, was tried before Chief District Court Judge Ralph R. Beistline in Anchorage.
Wells was arrested on February 15, 2013 under a federal arrest warrant based on a criminal complaint, and was indicted on February 19, 2013. Wells was convicted on all six counts of the indictment: two counts of murder in the first degree, in violation of 18 U.S.C. § 1111, one for each victim; two counts of murder of an officer or employee of the United States, a violation of 18 U.S.C. § 1114, one for each victim; and two counts of possession and use of a firearm in relation to a crime of violence, a violation of 18 U.S.C. § 924(c).
U.S. Attorney Karen L. Loeffler prosecuted the case along with Assistant U.S. Attorney Bryan Schroder, and Captain Kathleen A. Duignan, U.S. Coast Guard, who was appointed as a Special Assistant U.S. Attorney, with support from Assistant U.S. Attorney Bryan Wilson.
According to Ms. Loeffler, the evidence established that on April 12, 2012, at approximately 7:15 a.m., U.S. Coast Guard Petty Officer First Class James Hopkins and U.S. Coast Guard civilian employee Richard Belisle were shot and killed while working at their duty stations in the Rigger Shop at U.S. Coast Guard Communications Station Kodiak. First responders noted no evidence of a break-in or robbery and both men appeared to be victims of a targeted killing.
A third employee in the Rigger Shop, James Wells, was not present and had left two phone messages stating he was running late due to a flat tire. U.S. Coast Guard (USCG) security video captured a small blue SUV entering the back of the Rigger Shop parking lot just before the murders and leaving just afterwards. Later that day, investigators discovered a blue car consistent with the car in the video in the parking lot of the Kodiak Airport. The car was owned by James Wells and had been left there by Wells’ wife, who was in Anchorage.
Additional USCG security video showed James Wells passing the Main Gate at Base Kodiak at 6:48 a.m. in his white truck on his way toward the Kodiak Airport, and returning back toward his residence at 7:22 a.m.
The afternoon of the murders, Wells was interviewed and stated that he had left for work in his truck that morning, but discovered a low tire after passing the Base Main Gate near the Kodiak Airport and went back home to change it. Wells had a tire with a nail in it in the bed of his truck and produced it for investigators.
The day after the murders, Mrs. Wells returned to Kodiak from Anchorage. Investigators then learned that the blue car she had left at the airport parking lot had been moved from where she originally parked it when she left for her trip.
In a second interview, James Wells told investigators that he only took a couple of minutes to inspect the low tire at the airport. However, when asked about the 34 minute time gap shown by the Main Gate video, Wells stated “I don’t have a reasonable explanation for it.” Investigators determined that the times on the videos and voice mail messages matched almost exactly to the time it would have taken Wells to drive his white truck from his residence to the airport, change into his wife’s blue car, drive to the Rigger Shop, murder both men, come back to the airport, change back to his truck and return home.
The murder weapon, a .44 revolver, was never found. The evidence at trial showed that, a number of years prior to the murders, Wells had taken a similar weapon from an acquaintance’s gun safe and never returned it.
Judge Beistline scheduled sentencing for July 8, 2014. The law provides for a mandatory sentence of life in prison. Wells will remain in custody pending sentencing.
Ms. Loeffler stated that, “This was a long road to justice for the families of Richard Belisle and James Hopkins, the United States Coast Guard community and the citizens of Kodiak. The guilty verdicts were the result of the superb investigative effort of the FBI and Coast Guard Investigative Service, and I am very proud of the work of the members of the United States Attorney’s Office for the District of Alaska, and our Special Assistant U.S. Attorney from the U.S. Coast Guard Judge Advocate General who, with professionalism and dedication, worked to present that investigation to the jury and convict the man responsible for brutally murdering two innocent men while they were at work serving their country and their community.”
Deirdre L. Fike, Special Agent in Charge of the FBI in Alaska said, “The FBI would like to thank the Alaska State Troopers, Coast Guard Investigative Service, and the U.S. Attorney’s Office for their partnership and cooperation on this case. We are pleased that the lengthy and meticulous investigation of this brutal crime has resulted in the conviction of the person responsible. We continue to express our condolences to the Hopkins and Belisle families.”
Ms. Loeffler notes that the conviction comes after an extensive investigation led by the FBI, with support from the U.S. Coast Guard Investigative Service, and the Alaska State Troopers.
“We commend the Department of Justice and our partner law enforcement agencies for ensuring justice was served and James Wells was held accountable for these murders,” said Vice Adm. Charles W. Ray, Commander, Coast Guard Pacific Area. “We hope this verdict brings closure to this chapter of tragedy in the lives of the Belisle and Hopkins families, our Coast Guard men and women, and the people of Kodiak.”Cantwell Man Pleads Guilty to Illegal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that a Cantwell man entered pleas of guilty in federal court today in Anchorage, for two counts of trafficking in narcotics.
Randall Dion Frank, 52, of Cantwell, Alaska, pleaded guilty today before Chief United States District Judge Ralph R. Beistline, to charges that he conspired to violate federal drug trafficking laws, and attempted to possess methamphetamine with the intent to distribute it.
According to the facts presented in court by Assistant U. S. Attorney Stephen Cooper to support the guilty pleas, last September Frank and accomplice Russell Miller received a parcel containing about one pound of 99% pure methamphetamine for redistribution to others in Alaska. Drug Enforcement Administration agents had information that the parcel contained illegal drugs. They obtained a search warrant from the court, followed the parcel when it was delivered, and arrested both Frank and Miller at Miller’s residence in Cantwell as they were in the act of opening the parcel. Investigation revealed that the parcel was the latest in a series of shipments of methamphetamine that Miller received from sources in Arizona during several months before their arrest. Miller shared portions of these shipments with Frank. According to law enforcement investigators in the case, the total value of the seized drugs alone exceeds $50,000, or $100,000 if the drugs were diluted before resale. The value of the additional drugs shipped into Alaska before the arrest would be several times this amount.
The judge set sentencing proceedings for July 23, 2014 at 9:00 a.m., in Anchorage. Frank and Miller have been ordered detained in custody pending the sentencing.
Ms. Loeffler commends the agents of the Drug Enforcement Administration the State of Alaska Drug Task Force officers cooperating with DEA, for the investigation of this case.
Three Counterfeiters ChargedRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that two individuals from Chugiak, Alaska, and a third from Anchorage, Alaska, have been charged in two separate indictments with multiple counts of passing counterfeit money. Two of the defendants are also charged with conspiring to make and pass counterfeit money.
Eugene David Downey, Jr., 42, of Anchorage, Alaska, is charged in a four-count indictment as the sole defendant passing counterfeit money at several stores in the Anchorage area.
Matthew Lee Daley, 28, of Chugiak, Alaska, is charged in a seven-count indictment together with Christa Louise Speiser, 30, also of Chugiak, who is charged in four of the seven counts with making and passing counterfeit money in the Eagle River area, and also for conspiring together to do so.
According to the indictment, between August and November 2013, Downey passed several counterfeit $50 bills at stores in the Anchorage area.
The indictment against Daley and Speiser charges that on November 7, 2013, the two passed several counterfeit $100 bills at stores in the Eagle River area. Daley and Speiser are charged with making the counterfeit money using a computer and laptop at their residence, and conspiring to make and pass counterfeit money.
In both cases the counterfeit money was made of genuine Federal Reserve Notes, $1 and $5 bills, that were bleached and reprinted with $50 and $100 bills. The cases do not appear to be related.
Downey is currently in state custody. Daley was arrested on these charges on Friday, and an arrest warrant has been issued for Speiser.
“Each year hundreds of counterfeit bills are passed in Anchorage causing financial hardship to those who unwittingly accept them as payment. Counterfeiting is a serious crime, and it is important that we deter those who would consider creating or using fake currency,” stated Kevin Feldis, Chief of the Criminal Division at the U.S. Attorney’s Office.
The law provides for a maximum total sentence of 20 years in prison and a fine of $250,000 or both, according to Aunnie Steward, Assistant U.S. Attorney, who presented the case to the grand jury. 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 Secret Service and the Anchorage Police Department conducted the investigation leading to the indictments in these cases.Fairbanks Moose Hunter Sentenced for Federal ViolationRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Fairbanks resident was sentenced in United States Magistrate’s Court in Fairbanks, for charges stemming from his involvement in the illegal taking of a moose and the subsequent shipping of the moose antlers out of Alaska.
Leslie P. Zerbe, 67, of Fairbanks, Alaska, pled guilty to the charge of Interstate Transport of Unlawfully Taken and Possessed Wildlife, a misdemeanor violation of the Lacey Act. Sentence was entered the same day, requiring Zerbe pay a $10,000 fine. The court also ordered Zerbe not to hunt for a period of two years, and not to be with anyone who is hunting or to support or assist anyone hunting during that period.
According to the plea agreement, Zerbe and a friend from Michigan hunted and took a moose in the Ferry Trail Management Area of Game Management Unit 20A in 2009. Alaska law prohibits taking a moose in that area unless the antlers are at least 50 inches wide or, regardless of width, have at least four brow tines on one side. The moose taken by Zerbe and the Michigan hunter had antlers just over 42 inches wide with only three brow tines on each side, and was therefore illegal under state law. Zerbe was aware of the restriction. He acknowledged he had previously hunted in that area for several years and had a wilderness cabin less than two miles from the kill site. Because the kill violated state law, Zerbe violated federal law by shipping the antlers of the moose from Alaska to the friend in Michigan.
The investigation was initiated by the Alaska State Troopers in 2009, but later referred to the United States Fish and Wildlife Service due to the federal violations. Federal agents obtained the antlers and also located the kill site where they collected additional evidence conclusively linking the antlers to that site.
“The Fish and Wildlife Service is committed to protecting America’s wildlife resources. The sentence imposed by the court sends a message that such violations of wildlife law will be not be tolerated,” said Ryan Noel, the acting Special Agent in Charge of the United States Fish and Wildlife Law Enforcement Office for Alaska.
“Federal law enforcement works closely with state authorities to protect and preserve the wildlife resources of Alaska. The evidence in this case showed that the defendant violated federal law when he shipped the antlers of an under-sized and illegally hunted moose to Michigan,” said Kevin Feldis, Chief of the Criminal Division at the U.S. Attorney’s Office.
Ms. Loeffler commends the United States Fish and Wildlife Service, Office of Law Enforcement for their efforts in this case.
Man Pleads Guilty to Interfering with Flight CrewRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that Nobuya Michael Ochinero pleaded guilty to one count of interfering with a flight crew.
On February 10, 2014, Ochinero, 38, was traveling on a flight from Tokyo, Japan to New York when he became intoxicated. When flight attendants refused to serve Ochinero additional alcohol, he became upset and yelled obscenities at the flight crew. He also became combative during the flight, pushing flight attendants, spitting on passengers, and throwing objects. His actions ultimately caused the flight to be diverted to the Ted Stevens Anchorage International Airport.
Assistant United States Attorney Stephanie Courter, who is prosecuting the case, indicated that, as part of his plea, Ochinero agreed to pay restitution to the airline. The law provides for a maximum total sentence of up to twenty years in prison and a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
The Federal Bureau of Investigation and the Anchorage Airport Police Department led the investigation in the case.
Ochinero is scheduled to be sentenced on July 7, 2014 before United States District Court Judge Sharon Gleason.
Anchorage Man Indicted by Federal Grand Jury for Wire Fraud Theft of Government Funds, Federal Employees' Compensation Act Fraud, and Social Security FraudRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Amancio Zamora Agcaoili, Jr. was indicted by a federal grand jury in Anchorage for wire fraud, theft of government funds, Federal Employees’ Compensation Act fraud, and social security fraud.
Agcaoili, 56, is the sole defendant named in the 18-count indictment, together with two forfeiture allegations.According to the indictment, between at least on or about February 12, 2009 and continuing thereafter until the present, Agcaoili, a United States Postal Service employee, devised and participated in a scheme to defraud the Department of Labor Office of Workers’ Compensation Program and the Social Security Administration Disability Insurance Benefits program of funds totaling at least $334,000. Agcaoili is alleged to have been receiving both federal workers’ compensation and federal social security disability payments by engaging in a scheme to defraud the federal government about the nature and extent of his injury and about the other work he was performing and income he was receiving.
The indictment alleges that despite Agcaoili’s disability claims, Agcaoili went dipnetting and fishing on multiple occasions every summer between 2009 and 2013. In addition, the indictment alleges that Agcaoili lied to the federal government on his annual forms when Agcaoili indicated that he did not perform any work between at least February 2009 and continuing until the present, when he was working and receiving income for performing services such as preparing immigration paperwork and tax returns. In addition, the indictment alleges that Agcaoili concealed and failed to disclose to the Social Security Administration that he was receiving workers’ compensation payments in order to continue receiving social security disability payments to which he was not entitled.
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 20 years in prison, a fine of up to $25,000, 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 defendant.
“Each time someone intentionally defrauds the United States in order to receive federal benefits, such as workers’ compensation and disability payments, it undermines the integrity of those federal programs, and harms all law abiding citizens. We are committed to investigating fraud involving federal programs, and to prosecuting theft of government funds in all its forms,” said Kevin Feldis, First Assistant United States Attorney and Criminal Division Chief for the District of Alaska.
The United States Postal Service Office of the Inspector General and the Social Security Administration Office of the Inspector General conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Soldotna Resident Indicted on Tax ChargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that James R. Back, 59, of Soldotna, Alaska, was indicted for filing false tax returns for 2006, 2007 and 2008, and willfully failing to file tax returns from 2009 through 2012. Back was arrested at the Ted Stevens Anchorage International Airport on Monday, April 7, 2014. On Tuesday, April 8, Back was arraigned before United States Magistrate Judge John D. Roberts. Chief United States District Court Judge Ralph R. Beistline has been assigned to the case for trial.
Back did not enter a plea, and did not decide whether or not to represent himself or retain legal counsel. Back was released pending trial under the supervision of the United States Probation and Pretrial Services Office on a $10,000 unsecured bond, and ordered to return to court on Friday, April 11, for the entry of pleas and the decision on representation.
According to the indictment, Back was employed as a pipeline technician for Alyeska Pipeline Service Company. However, in 2007 Back sent the IRS a false “Substitute for Form W-2, Wage and Tax Statement, Form 4852,” claiming that his wages were not income. The indictment alleges that Back filed tax returns for 2006, 2007, and 2008 that falsely reported to the IRS that he earned no income during those years, when in fact he had earnings that totaled nearly $400,000. Moreover, Back claimed on these false returns that he was owed refunds totaling $110,111.
The indictment further alleges that in 2008 Back provided a fictitious document entitled “Form
W-0” to his employer, asserting that his wages from the company were not “federally privileged.” In 2011, Back sent his employer a document purporting to “revoke” his Employee’s Withholding Allowance Certificate. Back willfully did not file tax returns for the years 2009, 2010, 2011 and 2012, even though his total earnings during these years exceeded $500,000.“Our tax system is predicated on the truthfulness of the individual taxpayer but some use fraud and trickery to cheat all of us,” said Kenneth Hines, Seattle Field Office Special Agent in Charge, IRS Criminal Investigation. “IRS special agents are doing their job to ensure the honest taxpayers do not have to pick up the tab for those who chose not to comply with our laws by filing false or frivolous tax returns.”
Back faces up to three years in federal prison and a maximum $250,000 fine on each of the three false return charges, and up to a year in prison and a $100,000 fine for each of the four failure-to-file charges. In addition, costs of prosecution are mandated by law in criminal tax cases.
The case is being investigated by special agents with IRS Criminal Investigation. The prosecution is being handled by Assistant U.S. Attorney Thomas Bradley of the U.S. Attorney’s Office in Anchorage, Alaska.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.Jury Convicts Palmer Man of Third Marijuana Grow and Forfeits the House That Concealed ItRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that on April 3, 2014, an Anchorage jury convicted a Palmer man of one count of manufacturing marijuana. The jury also returned a verdict forfeiting Dodds’ residence to the government because it facilitated his marijuana grow operation.
According to Assistant U.S. Attorneys Kim Sayers-Fay and Stephanie Courter, who prosecuted the case, Loren Kent Dodds, 48, of Palmer, Alaska, was convicted of a one count of manufacturing marijuana. Trial evidence demonstrated that Dodds made the lower level of his Palmer residence into a sophisticated hydroponic grow equipped with motorized lights and myriad timers, which were all powered by stolen electricity.
Dodds was convicted of having a marijuana grow in the same residence twice before, in 2008 and 1994. Dodds was still on probation for his 2008 marijuana cultivation and power theft convictions when police discovered the 2013 grow in the same residence. Dodds’ 2013 grow was his largest yet, with over 600 plants, ranging from starters to “mother plants” that were over seven feet tall. Dodds’ third marijuana grow came to law enforcement’s attention after a young boy who was living at Dodds’ residence asked a relative for a knife so he could help Dodds cut the stinky “lettuce.”
Dodds denied responsibility for the marijuana grow, telling investigators that he lived in a ramshackle motorhome offsite rather than in his more than 3,000 square foot residence located on several acres. Dodds claimed to have rented the residence to a couple whose last name he did not know and whose telephone number he did not have.
U.S. District Court Judge Sharon Gleason scheduled Dodds’ sentencing for June 20, 2014. Dodds faces a mandatory minimum sentence of ten years’ imprisonment for his repeat offense, and up to a maximum of forty years’ imprisonment, to be followed by at least ten years of supervised release. Dodds may also be fined up to $5,000,000. Because the jury returned a verdict finding that Dodds used his Palmer, Alaska, residence to facilitate his marijuana grow, Dodds will forfeit that house and real property to the government. The jury could not reach a decision on whether Dodds’ adjoining property also facilitated his manufacturing operation.
Ms. Loeffler commends the Drug Enforcement Administration, the Alaska State Troopers, and the State Drug Enforcement Unit task force members from both Wasilla and Palmer Police Departments for the investigation that culminated in Dodds’ conviction and the related forfeiture.Multiple Defendants Sentenced for International Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska – United States Attorney Karen Loeffler announced that four defendants were sentenced in the past week for their roles in an international conspiracy to launder the proceeds of drug trafficking.
On Monday, March 31, 2014, United States District Judge Timothy M. Burgess sentenced Claritza Natera, 45, to serve 24 months in prison. Natera, of Anchorage, pled guilty to international money laundering, admitting that in 2010 and 2011 she repeatedly deposited currency that she knew to be the proceeds of drug trafficking into her bank account in Alaska and then immediately wired the funds to persons in the Dominican Republic. She admitted that she was paid cash for conducting these transactions by a person known to her to be a cocaine dealer and an illegal alien. The court also ordered Natera to forfeit $239,990 to the United States. This amount represents the funds involved in the money laundering conspiracy. The court ordered a money judgment in that amount to be entered against Natera.Also on Monday, March 31, 2014, Judge Burgess sentenced Joel Paredes Henriquez, 34, to four years of probation and ordered him to forfeit $25,500 to the United States. Joel Paredes Henriquez pled guilty to being a member of an international money laundering conspiracy, admitting that he deposited cash that he received from a man he knew to be an illegal alien and a cocaine dealer in Anchorage into his bank account, and wired the funds to the Dominican Republic. Joel Paredes Henriquez admitted that he wired over $25,000 between March 2010 and February 2011. In a plea agreement filed with the court, the defendant admitted that he knew or believed that the funds sent were the proceeds of or were intended to promote the importation and distribution of a controlled substance. It is a federal crime to transmit funds either domestically or internationally with such knowledge.
Nerido Paredes Henriquez, 38, of Anchorage, was also sentenced on Monday, March 31, 2014. Nerido, the brother of Joel, was sentenced to a three year term of probation and ordered to forfeit $15,400 to the United States. Nerido Paredes Henriquez pled guilty to one count of structuring financial transactions, admitting that he and others made several currency deposits at different bank branches to avoid the currency transaction reporting requirements of the Bank Secrecy Act. Federal law requires financial institutions to report currency transactions in excess of $10,000, and it is a federal crime to knowingly avoid those requirements.
Last Thursday, March 27, 2014, Judge Burgess sentenced Randin Paredes Henriquez, 36, to a term of time-served in jail. Randin Paredes Henriquez of Anchorage, the brother of Joel and Nerido Paredes Henriquez, pled guilty to one count of international money laundering. In December 2011, Randin flew from Anchorage to Philadelphia enroute to the Dominican Republic. Customs agents discovered that he was smuggling cash, which he admittedly knew to be the proceeds of cocaine trafficking in Alaska. Cash in the amount of $55,720 was seized and forfeited to the United States. Randin Paredes Henriquez had been in federal custody for approximately two years, since his return to Alaska from the Dominican Republic in March 2012. It is a federal crime to take more than $10,000 in currency or equivalents into or out of the United States without declaring the funds to Customs on arrival or departure.
Earlier last month, on March 14, 2014, Judge Burgess sentenced Concepcion Egea, 57, to four years of probation and fined her $5,000. Egea, of Florida, pled guilty to one count of structuring financial transactions to avoid the currency reporting requirements.
Evidence presented in court established that the defendants shared joint financial accounts, shared an address, and made multiple cash transactions in a single day or over several days at various branches to avoid suspicion. Most of the currency deposits were approximately $5000. The funds were almost always immediately wired to persons in the Dominican Republic. Randin, Joel, and Nerido Paredes Henriquez are lawful permanent residents of the United States, but remain citizens of the Dominican Republic. Concepcion Egea and Claritza Natera are naturalized U.S. citizens, and were formerly citizens of the Dominican Republic.
In a related case, United States v. Joel Santana Pierna, et al., numerous defendants were indicted in 2012 for drug trafficking, tax fraud, identity theft, passport fraud, making false claims of U.S. citizenship, bank fraud, and uttering forged U.S. Treasury checks. Seven defendants have been convicted in that case, including a former Wells Fargo Bank teller who helped facilitate the opening and use of bank accounts in fictitious names. Two defendants in the related indictment are in federal custody awaiting trial, and one remains a fugitive. Another former bank teller was charged and pled guilty in a separate case, admitting that she aided in the negotiation of forged Treasury checks.
“Joel Santana-Pierna ran a criminal enterprise that trafficked cocaine, stole the identities of honest citizens, and attempted to steal millions from the US Treasury by filing fraudulent tax returns. Santana-Pierna and the principle ringleaders of his organization already received stiff prison terms and penalties for their crimes,” said Assistant Special Agent in Charge Steve Bellis of IRS Criminal Investigation, Seattle Field Office. “The sentences handed down to Concepcion Egea, Randin Paredes Henriquez, Nerido Paredes Henriquez, Joel Paredes Henriquez, and Claritza Natera should serve as a warning to everyone that it does not pay to flirt with the criminal element. These otherwise law-abiding people got caught up in the money and lifestyle offered to them by Joel Santana-Pierna and his organization. That’s no excuse. Their actions made them criminal conspirators and now they too must pay their debt to society.”
Kevin Feldis, First Assistant U.S. Attorney, emphasized that “Drug dealers and other criminals seek to profit from their illegal activities. Those who facilitate and participate in these criminal activities by laundering drug money and other ill-gotten gain must likewise be held accountable.”
Ms. Loeffler commends the Internal Revenue Service, Criminal Investigation; Homeland Security Investigations, Immigration and Customs Enforcement; and Drug Enforcement Administration for the investigation leading to the convictions in this case.
Anchorage Felon Sentenced for Firearm PossessionRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that Alondo Mark Modeste, a resident of Anchorage, has been sentenced in federal court in Anchorage to 48 months in prison for his conviction of felon in possession of a firearm.
United States District Court Judge Timothy M. Burgess imposed the sentence on 30 year-old Modeste.
According to information presented to the court by Special Assistant United States Attorney Erin Bradley, who prosecuted the case, Modeste possessed a Smith & Wesson .357 caliber revolver and a Taurus 45 caliber revolver on April 18, 2012. Law enforcement discovered the firearms at the Merrill Field Inn. The Taurus revolver was found in Modeste’s vehicle, and the Smith & Wesson revolver was found in a snow bank outside of a window of the motel that Modeste had leapt from. In 2005, Modeste was convicted of manslaughter in the Superior Court for the State of Alaska, Third Judicial District. As a convicted felon, he was prohibited from possessing firearms.
Prior to imposing sentence, Judge Burgess noted the serious nature of the offense, the defendant’s history and the need to protect the public and to deter future crimes of this nature.
Mr. Feldis commends the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department for the investigation leading to the convictions in this case. Special Assistant U.S. Attorney Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.