District of Alaska
Press releases recorded for this federal judicial district.
Kodiak Fish Processor Pleads Guilty to Illegal Dumping of Ammonia and Ordered to Pay $205,000 in Criminal PenaltiesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that North Pacific Seafoods pled guilty in U.S. District Court in Anchorage to a charge of illegal dumping of ammonia into the Kodiak city sewer.
North Pacific Seafoods is a Seattle, Washington corporation, which is a subsidiary of Marubeni, a Japanese corporation. North Pacific Seafoods owns five seafood processing facilities throughout Alaska, including Alaska Pacific Seafoods, located in Kodiak, Alaska. North Pacific Seafoods pled guilty to one count of violating the Clean Water Act for illegal dumping of ammonia from its facility, Alaska Pacific Seafoods, into the Kodiak city sewer.
North Pacific Seafoods was sentenced today by Chief United States District Court Judge Ralph R. Beistline, to three years of probation, and $205,000 in criminal penalties, $55,000 of which is to be directed to the City of Kodiak for hazardous waste response training and equipment for sewer and fire department employees. The terms of probation ordered by Judge Beistline also require that North Pacific Seafoods comply with an Environmental Compliance Plan that includes, among other things, training for all employees at all five facilities in Alaska regarding proper handling of hazardous wastes and specifically ammonia.
According to Assistant U.S. Attorney Andrea “Aunnie” Steward, on November 29, 2011, North Pacific Seafoods’ employees at its Alaska Pacific Seafoods facility dumped approximately 40 pounds of ammonia waste from its refrigeration system into the Kodiak city sewer. The ammonia odor was detected by employees at the sewage plant for Kodiak. The Kodiak Fire Department was asked to help locate the source of the ammonia. The chief engineer for the Alaska Pacific Seafoods facility at first denied discharging the ammonia when asked about the ammonia odor. Sewer employees then traced the discharge back to the Alaska Pacific Seafoods facility, at which time the chief engineer admitted to the discharge. The discharge of the ammonia by the Alaska Pacific Seafoods facility wiped out the secondary treatment at the sewer system and caused the sewer system to violate its Clean Water Act permit.
A joint investigation by the federal Environmental Protection Agency and the Alaska Department of Environmental Conservation determined that the facility had been discharging ammonia into the St. Paul Harbor before and after the sewer incident in violation of its Clean Water Act permit. North Pacific Seafoods disputes the illegality of the ammonia discharges into St. Paul Harbor that occurred prior to the entry of its guilty plea but agrees that in the future such discharges will be prohibited.
The chief engineer that directed the discharge at the Alaska Pacific Seafoods facility, Bill Long, is scheduled to be arraigned in state court on Friday, March 14, 2014, at 9:30 a.m., on a charge of violating the permit regulated by the Alaska Department of Environmental Conservation.
“This result demonstrates how the longstanding federal-state partnership works to protect the public health, safety and environment of Alaska. It further sends a message that fish processors and other companies that handle hazardous wastes must be vigilant in their efforts to meet regulatory requirements,” said U.S. Attorney Karen Loeffler.
“By the company’s own admission, North Pacific Seafoods’ employees negligently discharged enough anhydrous ammonia – a potentially lethal chemical – to knock out Kodiak’s wastewater treatment plant, forcing it to violate its federal Clean Water Act permit and potentially endangering plant workers. Seafood processors should know that cutting corners and illegally discharging ammonia puts their facility, their workers, and the community at risk,” said Tyler Amon, Special Agent-in-Charge of EPA Criminal Investigation Division in the Pacific Northwest.
“The State, in partnership with its federal counterparts, takes seriously the enforcement and protection of Alaska’s waters and lands. Corporations like North Pacific Seafoods and their employees must be held accountable for their actions when they violate state and federal law. The State will criminally prosecute those who endanger the health of Alaska’s citizens and pollute our environment,” said Carole A. Holley, Assistant Attorney General, Alaska Office of Special Prosecutions and Appeals.
Ms. Loeffler commends the United States Environmental Protection Agency Criminal Investigation Division and the Alaska Department of Environmental Conservation for the investigation of this case.
Ketchikan Man Convicted of Assault on a Federal OfficerRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that on March 6, 2014, a jury of eight men and four women found Jon William Munhoven guilty of assault on a federal officer.
Munhoven, 56, was tried before U.S. District Court Judge Timothy M. Burgess in Juneau, Alaska.
According to Assistant U.S. Attorney Jack S. Schmidt and Special Assistant U.S. Attorney Lieutenant Commander Stanley P. Fields, who jointly prosecuted the case, the evidence presented at trial established that on September 2, 2013, the United States Coast Guard at Coast Guard Station Ketchikan dispatched six personnel in a 25-foot Response Boat Small (RBS) in response to a call for help from a mariner who had been assaulted on his vessel. After travelling through thick fog, the RBS crew arrived at the vessel and contacted the mariner who had called for help, as well as a female passenger and Jon William Munhoven. The mariner had a bloody nose and described being hit by Munhoven. Munhoven was irate and hostile when the Coast Guard Boarding Team initially contacted him and they ordered him to disembark the mariner’s vessel.Munhoven was placed in handcuffs and sat on the aft deck box of the RBS. Munhoven refused to listen to directions from the U.S. Coast Guard Boarding Team, and then started to actively resist the Coast Guard personnel. The Boarding Team placed Munhoven on the back deck in order to control his movements and for his own safety and the safety of the crew. During this time, Munhoven intentionally kicked one of the U.S. Coast Guard Boarding Team members in the face with a shod foot, using it as a dangerous weapon and causing bodily injury to the Coast Guard crew member.
Judge Burgess scheduled sentencing for June 23, 2013, at 3:30 p.m. in Juneau. The law provides for a sentence of up to 20 years imprisonment, a fine of $250,000, and three years of supervised release.
Ms. Loeffler commended the United States Coast Guard 17th District Legal Office, United States Coast Guard Investigative Service (USCGIS), and the Ketchikan Police Department for the investigation leading to the prosecution of Munhoven.
Wasilla Man Indicted for Sexual Exploitation of ChildrenRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was arraigned in Federal Court in Anchorage before Magistrate Judge John D. Roberts on two counts of sexual exploitation of children: advertising and distributing child pornography.
Daniel Clinton Piaskowski, a 33-year-old man from Wasilla, Alaska, was indicted by a federal grand jury, and arrested on a warrant on February 21, 2014. The indictment comes after an investigation led by the Federal Bureau of Investigation.
The FBI’s investigation of Piaskowski is ongoing, and the FBI is seeking to determine if Piaskowski had inappropriate contact with children. Anyone with relevant information is asked to contact the FBI's Anchorage Field Office at (907) 276-4441.
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 6 Years for Child Sexual ExploitationRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Oregon man was sentenced in federal court in Anchorage for transporting child pornography from Alaska to Canada. Aaron Bruno Finn, was sentenced to 6 years in prison, followed by 15 years of supervised release.
Finn, age 57, was a commercial truck driver, and transported over 600 images of child pornography on digital materials he carried in his truck while driving from Alaska to Oregon. He was stopped at the Canadian Border, and was arrested for importing child pornography into Canada. Finn was sentenced to serve 2 years in prison in Canada before being turned over to American authorities.
United States District Court Judge Sharon L. Gleason sentenced Finn to 72 months (6 years) in prison, after considering the 2 years of imprisonment he had already served in Canada. Judge Gleason also sentenced Finn to serve 15 years 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. Finn’s truck was also administratively forfeited by Homeland Security Investigations when it was released by Canadian authorities.
The sexually explicit images of children depicted children as young as 2 years old. At sentencing on February 20, 2014, Judge Gleason stated, “This is not a victimless crime.” “It troubles me that I didn’t hear (from Mr. Finn) an understanding of how these children are being victimized.” “…for gratification of adults.”
Over 600 images of child pornography were found on Finn’s laptop computers. Several child victims who were identified in those images submitted letters describing the serious harms they had suffered as a result of being sexually exploited. Judge Gleason acknowledged those harms and the seriousness of child pornography crimes when she sentenced Finn to the 6-year prison sentence, and 15 years of supervised release.
Ms. Loeffler commends Homeland Security Investigations (HSI) for their extensive investigation of this case, and acknowledges HSI’s persistent dedication to rescuing child victims from sexual exploitation, and pursuing the sexual predators that harm children.
Fairbanks Man Sentenced to 18 Years Imprisonment for His Role in Large Scale Drug Trafficking ConspiracyRead 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 his role in an Anchorage and Fairbanks drug conspiracy.
Donnel Johnson, a/k/a, “Creep,” age 31, from Fairbanks, Alaska, was sentenced on Friday, February 21, 2014, by United States District Court Chief Judge Ralph R. Beistline. Johnson received a sentence of 216 months in prison and 5 years of supervised release on charges related to a drug conspiracy. Johnson was also ordered to forfeit vehicles and jewelry derived from drug trafficking.
Johnson was a key member of a drug trafficking conspiracy in which he and his accomplices attempted to conceal their drug trafficking by claiming they were involved in legitimate businesses, specifically that they were “artists,” employees, or promoters of an Anchorage recording label and rap and hip hop performance group known as “Out Da Cutt” or “ODC” Entertainment and “UNDB” (Up North ‘D’ or Dope Boys). Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks. Much of their music glorified the lifestyle of selling illegal narcotics and committing other crimes. The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal narcotics. Johnson held himself out as a record producer for the record label and recording group.
Johnson was the Fairbanks supervisor of the distribution of cocaine during the conspiracy. In fact, according to sources, Johnson was the largest distributor of cocaine in Fairbanks during the course of the conspiracy. Johnson would obtain cocaine from other members of the conspiracy in Anchorage, then he or others would deliver the cocaine to Fairbanks for distribution. According to court filings, in November 2012, the United States Postal Service intercepted ten kilograms of cocaine bound for two different Anchorage addresses. During the delivery of one of the packages, Johnson was observed in a vehicle conducting counter-surveillance in the area. In January 2012, while on a routine personal errand, an APD detective assigned to the DEA Task Force noticed the same vehicle at a Fred Meyer’s parking lot. As he watched the vehicle, Johnson arrived and placed a large duffel bag in the vehicle. The vehicle was then pulled over by Anchorage Police officers, and 12 kilograms of cocaine was found in the duffel bag. This cocaine was bound for Fairbanks, to be distributed by Johnson and his accomplices. The seizures resulted in numerous search warrants in Fairbanks and Anchorage. To date, 23 people have been charged in connection with the investigation.
Before imposing a sentence, Chief Judge Beistline told Johnson that a serious sentence was warranted, because “for at least the last three to five years, you were pouring cocaine into the Fairbanks community.”
Johnson was the latest to be sentenced in connection with the investigation. Previously, on November 2, 2012, Chief Judge Beistline sentenced Christopher Anderson to 14 months imprisonment. DeMarr Moultrie was sentenced to 40 months imprisonment on May 1, 2013. Jeraelyn Hill was sentenced to 66 months imprisonment on May 28, 2013. Jerry Wormley was sentenced to 36 months imprisonment on May 31, 2013. Rock Phelps II was sentenced to 18 months imprisonment on June 14, 2013. Brent Gunnels was sentenced to 6 months imprisonment on August 2, 2013. Mihla Hall was sentenced to 28 months imprisonment on August 21, 2013. Joshua Mustovich was sentenced to 87 months imprisonment on September 6, 2013. Dalon Johnson was sentenced to 92 months imprisonment on September 24, 2013. Antonio Fleming was sentenced to 70 months imprisonment on January 14, 2014. Tevoris Carter, Emma Shine, and Terrance Fleming have plead guilty for their roles in connection with the conspiracy and await sentencing.
Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of Mr. Johnson.
Anchorage Drug Trafficker Sentenced to 138 Months in PrisonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Micah Sean Ramirez, a resident of Anchorage, has been sentenced in federal court in Anchorage to 138 months in prison for his convictions of the crimes of possession of a controlled substance with intent to distribute, and felon in possession of a firearm.
United States District Court Judge Sharon L. Gleason imposed the sentence on 39 year-old Ramirez.
According to information presented to the court by Special Assistant United States Attorney Erin Bradley, who prosecuted the case, Ramirez sold 13.4 grams of methamphetamine to an undercover law enforcement officer. At the time of the sale, Ramirez had a loaded pistol on his lap and a stolen Glock handgun in the back of the vehicle. Ramirez has a prior felony conviction for Assault in the Third Degree, which prohibits him from possessing firearms. In addition to the methamphetamine that he actually sold, Ramirez also had 44.8 grams of pure methamphetamine stored in a pocket behind the front passenger seat.
Prior to imposing sentence, Judge Gleason 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.
Ms. Loeffler commends the Federal Bureau of Investigation’s Safe Streets Task Force and the Anchorage Police Department for the investigation leading to the convictions 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.Anchorage Drug Trafficker Receives Ten Year SentenceRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Albert Diaz Gumataotao, III, a resident of Anchorage, has been sentenced in federal court in Anchorage to 120 months in prison for his conviction of the crime of drug trafficking conspiracy.
United States District Court Judge Sharon L. Gleason imposed the sentence on 24 year-old Gumataotao.
According to information presented to the court by Special Assistant United States Attorney Erin White Bradley, who prosecuted the case, Gumataotao and his co-defendant, David Alan Gonzales, accepted delivery of a package containing 52 grams of pure methamphetamine. Co-defendant Gonzales is pending trial in this matter.
Prior to imposing sentence, Judge Gleason noted the serious nature of the offense, the defendant’s history and the need to protect the public.
Ms. Loeffler commends the United States Postal Inspection Service 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.
Disbarred Attorney Sentenced to 64 Months in Federal Prison for Defrauding Elderly Woman's EstateRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a former California lawyer, now disbarred, was sentenced in federal court in Anchorage yesterday for fraud.
Philip Eric Myers, 61, of Santa Barbara, California, was sentenced to 64 months in prison by Chief United States District Court Judge Ralph R. Beistline for stealing over one million dollars from an elderly woman’s estate. Meyers pled guilty on September 20, 2013, to one count of mail fraud and two counts of wire fraud.
According to Assistant U.S. Attorney Retta Randall, who prosecuted the case, Myers, an estate and trust attorney from California, along with co-defendant Brian Ben-Israel, a registered nurse residing in Anchorage and working at Meridian Psychiatric Consulting Group, met and befriended Mrs. Juanita Gielarowski. During the period of 2005 through 2008, Ben-Israel became a health care provider and “financial advisor” to Mrs. Gielarowksi and her daughter, Linda Stowers. Myers enabled Ben-Israel to gain control over assets of the Juanita V. Gielarowski Revocable Trust by creating a new trust where Ben-Israel was appointed a co-trustee. Ben-Israel and Myers, using their professional relationship with and influence over Mrs. Gielarowski, then diverted for their own personal benefit over two million dollars from the Gielarowski Trust, monies intended for her long-term care. Ultimately Myers and Ben-Israel depleted the Gielarowski Estate and properties owned by the Estate were lost due to foreclosure, causing Mrs. Gielarowski to be moved from her long established home to a state funded elder care facility where she died in July 2010.
At the time of sentencing in the federal case, Myers had been convicted in three separate cases of Theft from Elder or Dependent Adult in the State of California. In each of those cases he had embezzled money from Trusts he had established for his elderly clients. Myers was disbarred from the practice of law by the State of California on February 11, 2013.
In sentencing the defendant, Judge Beistline noted that Myers had a history of exploiting others and that his exploitation of the attorney/client relationship with a vulnerable victim, especially when a fiduciary duty was involved, was extremely serious. The goal of society is “to protect our elderly and our vulnerable,” and Myers has seriously “impacted” society’s view of the legal profession.
Myers was also ordered to pay restitution in the amount of $1,081,000.
Deirdre L. Fike, Special Agent in Charge of the FBI in Alaska, said, “The sentencing of Philip Eric Myers is the culmination of a cooperative effort involving the FBI, the IRS, Anchorage Police, the State of Alaska’s Elder Fraud Unit, and the U.S. Attorney’s Office. This investigation demonstrates the FBI’s ongoing commitment to protecting Americans, particularly the elderly, from the type of fraud committed by Myers and his co-defendant Brian Amiel Ben Israel.”
Ms. Loeffler commends the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, and the Anchorage Police Department for the investigation of this case. Ms. Loeffler also commends the State of Alaska Office of Elder Fraud & Assistance who provided assistance in this investigation.Former Postal Service Employee Sentenced to Nine Years for Drug Conspiracy and Possessing Stolen MailRead the Press Release
Anchorage, Alaska-United States Attorney Karen L. Loeffler announced that a Wasilla woman was sentenced yesterday by U.S. District Court Judge Sharon Gleason to nine years in federal prison for her role in a drug conspiracy as well as for possession of stolen mail.
Brenda Sue Cox, 53, of Wasilla, Alaska, previously pled guilty to conspiring with others to distribute large amounts of methamphetamine and heroin. Cox, a former contract employee with the United States Postal Service, also admitted to being in possession of mail that she had removed from her postal route. In addition to her prison sentence, Cox will pay $1,949.92 in restitution to the individuals and businesses whose mail she had in her possession at the time of her arrest.
In sentencing Cox, Judge Gleason noted that Cox’s drug trafficking appeared to be motivated by greed and stressed that she found the nature and circumstances of Cox’s offenses troubling. Judge Gleason also emphasized the need for deterrence in these types of cases.
Responding to the sentence, Inspector in Charge of the Seattle Division of the United States Postal Inspection Service, Bradley Kleinknecht, stated that, “The United States Postal Inspection Service is committed to ensuring that the United States mail remains one of the most trusted forms of communication in the world, and that the theft of the United States mail will be prosecuted to the fullest extent of the law.”
Kleinknecht went on to state that “United States Postal Inspectors are also committed to identifying mail containing drugs, while ensuring that drug traffickers know that the United States mail is no safe haven for them. This sentence sends a strong message to anyone who misuses the United States mail in any way; you will be caught and you will be prosecuted.”
In announcing the sentencing, U.S. Attorney Loeffler praised the United States Postal Inspection Service and the Alaska State Troopers, who conducted the investigation in this case.
Wasilla Man Sentenced for Fraud in Scheme to Unlawfully Obtain Social Security Retirement BenefitsRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that William S. Stemmons, 31, of Wasilla, was sentenced to five years of probation for committing fraud against the Social Security Administration.
Chief United States District Court Judge Ralph R. Beistline imposed the sentence on February 4, ordering Stemmons to serve four months of home confinement and imposing restitution in the amount of $57,991.40. Stemmons was indicted in Denver, Colorado, in June 2013 on charges that he committed wire fraud, made false statements, and engaged in aggravated identity theft as part of a scheme to fraudulently obtain social security retirement benefits in his father’s name.
The case was transferred from Colorado to Alaska with the agreement of the United States Attorney’s Offices and the United States District Courts in both states. On November 20, 2013, Stemmons pled guilty to one count of wire fraud, admitting that between 2006 and 2010 he fraudulently obtained retirement benefits in the name of his father, who was then living outside the United States and had not applied for the payments. The scheme was discovered when Stemmons’ father did apply for retirement benefits, triggering the investigation that identified Stemmons’ thefts.
According to the sentencing memorandum filed by the prosecution, Stemmons was working in law enforcement and as a military security guard during the period that he was defrauding the United States.
The case was investigated by the Social Security Administration, Office of the Inspector General, Office of Investigations, in Denver and Seattle, and was prosecuted jointly by the United States Attorney’s Offices for the Districts of Alaska and Colorado.
Jury Returns Guilty Verdict Against Connecticut Man for Advertising and Distributing Child PornographyRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced that a Connecticut man was convicted in federal court in Anchorage on Thursday, February 6, 2014, for one count of Advertising Child Pornography and two counts of Distributing Child Pornography.
According to Assistant U.S. Attorney Kimberly Sayers-Fay, who prosecuted the case at trial, Michael J. Carroll, 59, a resident of Milford, Connecticut, was convicted by a jury of one count of Advertising Child Pornography and two counts of Distribution of 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 in age from infancy to prepubesence. Other offenders in the same email group were previously prosecuted in Alaska.
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.
Chief U.S. District Court Judge Ralph R. Beistline scheduled Carroll’s sentencing for April 23, 2014. Carroll faces a mandatory minimum sentence of fifteen years’ imprisonment for advertising child pornography, and a maximum of thirty years’ imprisonment. For the distribution counts, Carroll faces a mandatory minimum sentence of five years. Carroll may also be fined up to $250,000 for each count, and faces a minimum of five years of supervised release.
Ms. Loeffler commends Homeland Security Investigations in Alaska and Connecticut, the Alaska Bureau of Investigation and the Anchorage Police Department for the investigation that culminated in Carroll’s convictions.
Felon Who Possessed Multiple Firearms Sentenced to 37 MonthsRead the Press Release
Anchorage, Alaska-United States Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court to 37 months in prison for being a felon in possession of firearms.
Patrick Leu Tauanuu, 38, of Anchorage, Alaska, was sentenced to the prison term by Chief United States District Court Judge Ralph R. Beistline for possessing two short barrel shotguns after having been convicted of a felony offense. Upon being released from prison, Tauanuu will be on supervised release for three years.
In sentencing Tauanuu, Judge Beistline commented on the seriousness of Tauanuu’s crime, noting that Tauanuu’s actions and those like it endanger the whole community.
According to Assistant United States Attorney Stephanie C. Courter, who prosecuted the case, Tauanuu previously pled guilty to illegally possessing two short barrel firearms. Specifically, Tauanuu admitted possessing a 12 gauge shotgun and a .410 gauge shotgun, both of which had barrels of less than 18 inches. Tauanuu also admitted that he had positioned one of the shotguns for protection. Tauanuu’s possession of the firearms was prohibited due to his prior felony conviction for assault in the third degree.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department for their investigation of this case.
Juneau Man Sentenced to 60 Months in Drug ConspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Juneau resident was sentenced in Juneau to federal prison for drug conspiracy.
Bradley Arin Bethel, 26, of Juneau, Alaska, was sentenced January 22, 2014, by U.S. District Court Judge Timothy M. Burgess to 60 months in prison for his role in a drug trafficking conspiracy. Co-conspirator Joshua River Riley was sentenced for his role in the drug trafficking conspiracy on May 31, 2013 and received a 30 month prison sentence.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation including the Drug Enforcement Administration, Federal Bureau of Investigation, and the Juneau Police Department-Drug Metro Unit, as they investigated the importation of heroin into Juneau, Alaska.
Between October 2012, and continuing through November 2012, Bethel and his co-conspirator Riley conspired to import heroin from Portland, Oregon, to Juneau, Alaska. As part of the conspiracy, Riley contacted other co-conspirators in Oregon to supply heroin to him for subsequent distribution in Alaska. Riley and Bethel provided the money to purchase the heroin and Bethel recruited a drug courier and arranged for the courier’s flight to Oregon to pick up the heroin with Riley, who had traveled the previous day to Oregon. Bethel provided the courier with a cell phone and programmed the number for Riley in the cell phone for the courier to get in contact with Riley in Oregon. Riley and the courier met in Oregon and Riley provided 106.4 grams of heroin to the courier to transport back to Alaska via commercial air carrier for subsequent distribution.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense, the need to deter the defendant and others and to provide treatment in the most effective manner for the defendant as reasons for imposing the 60 month prison sentence.
Ms. Loeffler commended the Drug Enforcement Administration, Federal Bureau of Investigation, and the Juneau Police Department - Drug Metro Unit for the investigation leading to the successful prosecution of Riley and Bethel.Valdez Man Sentenced for Failure to File an Income Tax Return That Should Have Included Income He Received from Funds His Sister Stole from the Native Village of TatitlekRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Valdez man was sentenced in federal court in Anchorage for willful failure to file an income tax return.
James Kramer, 48 of Valdez, Alaska was sentenced today by United States District Court Judge Sharon L. Gleason, to 8 months in prison and a $2,000 fine.
According to Assistant U.S. Attorney Aunnie Steward, Kramer’s sister Lori “Sue” Clum (formerly Johnson) was elected as President of the Native Village of Tatitlek, a federally recognized tribe, in October 2007. Clum was voted out of office in April 2008. Clum refused to accept the results of the election and maintained control of the tribal bank accounts for another year during which she misapplied $112,000 of tribal funds for her personal benefit. Clum gave $20,000 of the funds she misapplied to her brother James Kramer. When asked what he did with the $20,000 cash Kramer indicated he “squandered it partying.”
Kramer earned a total of $127,800 in income for 2009 including the $20,000 he received from his sister knowing she had misapplied the funds from the Native Village of Tatitlek. Kramer willfully failed to file a tax return for any of the income he earned in 2009, and he also willfully failed to file tax returns for 2008, and 2010.
“Kramer personally benefited from stolen funds belonging to the Tatitlek Tribe,” said Kenneth J. Hines, Special Agent in Charge of the IRS Criminal Investigation for Alaska. “These precious funds were meant to provide a stable government and community for the Tatitlek people not to line the pockets of fraudsters. When you steal from your community law enforcement will be quick to respond and bring the full weight of the American justice system with it.”
Judge Gleason noted that Kramer’s failure to pay taxes on income that included criminal proceeds is a more serious offense than just failing to pay taxes.
Ms. Loeffler commends the FBI, IRS Criminal Investigations, and EPA Office of Inspector General, with assistance from the Valdez Police Department, for the investigation of this case.Southeast Heli-Ski Company Enters Guilty PleaRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a commercially guided helicopter-skiing operation SOUTHEAST BACKCOUNTRY ADVENTURES (“SEABA”) located in Haines, Alaska, pled guilty in federal court in Anchorage to one count of trespassing on land managed by the Bureau of Land Management. The guilty plea was entered by part-owner Beb Anderson.
SEABA, a Haines, Alaska heli-ski operation pled guilty in Anchorage in U.S. District Court in front of Judge Timothy Burgess today to one count of Trespassing on BLM-managed land for operating heli-skiing in a closed area without a permit. According to pleadings filed by Assistant U.S. Attorney Aunnie Steward with the Court:
From 2002 to 2006, SEABA had an Special Recreation Permit (“SRP”) for a helicopter-skiing operation on certain BLM managed lands south of the Tsirku River and bordering Glacier Bay National Park near Haines, Alaska. In 2006, SEABA allowed this SRP to expire. Following the expiration of SEABA’s permit, BLM closed these lands to new heli-ski permitting pending an environmental study to determine the impacts of increasing the amount of permitted heli-ski operations. SEABA applied for a new permit for these closed areas in 2011. SEABA was informed of the closure and did not obtain a permit.
On March 3, 2013, a fatality occurred on BLM-managed land during a commercial heli-ski operation conducted by SEABA. A SEABA guide directed the helicopter pilot to land on BLM-managed land to ski a run on BLM-managed land. This land was within the closed area and SEABA did not have a permit to operate there. This ski run had also been utilized numerous times in 2012 by SEABA without a permit. In fact, SEABA had named the run for one of SEABA’s frequent customers. SEABA had included a map with this run in its application for the 2011 permit that was not approved.On the day of the fatality, March 3, 2013, the SEABA helicopter landed on the ridge top where the ski run starts on BLM-managed land. After the SEABA group exited the helicopter a cornice gave way under the weight of the group. One of the members of the group was killed in the fall that resulted from the cornice collapse. SEABA was not permitted for use on this ski run on BLM-managed land, and SEABA knew it was a violation of law to operate on this location without a permit.
Following this fatality, BLM initiated an investigation that involved interviews of SEABA employees, a review of SEABA’s flight following logs, maps, and GPS flight data collected by SEABA in accordance with its Haines Borough permit. This investigation revealed that despite knowing that SEABA was not permitted for helicopter-skiing on BLM-managed lands in this area, SEABA illegally operated commercially on BLM-managed lands on approximately 54 days in 2012 and 2013 out of 78 total days of heli-ski operations in these two seasons. Based on a percentage of SEABA’s gross revenue and the percentage of time SEABA operated commercially on BLM-managed lands in 2012 and 2013, SEABA would have owed a minimum of $11,556 in user fees to BLM that would have been charged if the area had been open to use.
The parties have agreed to recommend to the court that SEABA be sentenced to pay restitution in the amount of $11,556; pay a $10,000 fine; and serve a two-year term of probation during which time they have to make available the GPS data for the company operations to BLM. Sentencing has been scheduled for April 17, 2014.
Ms. Loeffler commends the BLM Office of Law Enforcement and Security for the investigation of this case with assistance from the Alaska State Troopers and the Haines Borough.
Fairbanks Man Sentenced to 77 Months in Federal Prison for Murder-For-Hire SchemeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Fairbanks man has been sentenced in federal court for two counts of using interstate commerce facilities in furtherance of a murder-for-hire scheme. Eric Donald Grabber, age 57, was sentenced today by Chief United States District Court Judge Ralph R. Beistline, to 77 months in prison for his involvement in efforts to have a man in Indiana murdered.
According to Assistant U.S. Attorney Joseph Bottini, who prosecuted the case, Grabber was indicted by a federal grand jury in January of 2013 for causing another individual to travel in interstate commerce from Alaska to Indiana in furtherance of the scheme, and for making an interstate telephone call for the same purpose. The investigation in this case established that Grabber sought to hire a hit man in Fairbanks to murder Indiana resident George Cole. The individual recruited by Grabber went to the Federal Bureau of Investigation resident office in Fairbanks and reported the plot to agents. This individual thereafter cooperated in the investigation and recorded conversations with Grabber detailing the plot to murder Cole.
During the investigation, Grabber paid this individual a $20,000 deposit on the agreed murder price of $40,000, and had the individual travel from Fairbanks to Indiana in what Grabber believed was an effort to locate and murder Cole. When the individual advised Grabber that he had been unable to locate the intended victim, Grabber called Cole from Alaska in an effort to ascertain his whereabouts. The investigation revealed that the motive for the murder was Grabber’s belief that Cole had cheated him out of a financial investment. Grabber also held a life insurance policy on Cole for which Grabber was the beneficiary. Grabber pled guilty in August, 2013 to both counts of the indictment.
In sentencing Grabber, Chief Judge Beistline commented that this case presented a bizarre set of circumstances in that other than his involvement this case, Grabber had been a law abiding citizen and a successful businessman. Judge Beistline also noted that Cole, the intended murder victim, is a lifelong friend of Grabber, and that Cole had actually travelled to Fairbanks to speak at the sentencing hearing on Grabber’s behalf. While addressing the court at sentencing, Grabber turned to his intended victim and said “George, I did pay a confidential informant money to murder you”.
Ms. Loeffler commends the Federal Bureau of Investigation, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Alaska State Troopers for the investigation of this case.
Togiak Area Man Sentenced to Prison for Wasting Walrus, Illegally Transporting Tusks and Firearms ViolationsRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that Togiak area resident Jessie Anariak, age 50, was sentenced by the Hon. Sharon L. Gleason, United States District Court Judge, to a term of 15 months imprisonment for his actions arising from the illegal take of a walrus on Round Island in May, 2011.
Anariak, along with codefendant Sixty Arkanakyak, was indicted in December, 2012. The indictment alleged that on May 9, 2011, Anariak and Arkanakyak, departed from the village of Togiak, Alaska in a Lund skiff. After leaving Togiak, the men are alleged to have motored to and beached the skiff on Round Island, an island located within the Walrus Islands State Game Sanctuary and accessible to the public only by permit. In December, 2012, Arkanakyak plead guilty to the illegal taking of a walrus from Round Island, as well as being a felon in possession of a firearm. He was later sentenced in August, 2013, by the Hon. Sharon L. Gleason to a term of 30 months imprisonment.
The U.S. Fish and Wildlife Service Office of Law Enforcement, and Refuge Law Enforcement investigated this case with the assistance of the Alaska Wildlife Troopers.
The indictment alleges that while on the beach, Arkanakyak and Anariak approached a herd of walrus which were hauled out on the beach. Both men, armed with .12 gauge shotguns, began shooting walrus and wounded approximately five. The herd stampeded and four wounded walrus escaped into the sea. Arkanakyak and Anariak then corralled one walrus against a cliff on the beach and shot it in the head with their shotguns until it died. The men then hacked the tusks off the walrus’s skull and returned to their skiff without taking any of the meat or anything else from the killed walrus. Arkanakyak and Anariak then departed Round Island, taking the tusks with them and leaving the walrus on the beach to waste in violation of the Lacey Act, the Marine Mammal Protection Act and the Conspiracy statute. At sentencing, Anariak received credit for time already served in federal and state custody, which amounted to over a year.Anchorage Man Sentenced to 70 Months for Narcotics TraffickingRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court in Anchorage for his role in an Anchorage and Fairbanks drug conspiracy.
Antonio Fleming, a/k/a, “Wookie,” age 35, from Anchorage, Alaska was sentenced on Tuesday, January 14, 2014, by United States District Court Chief Judge Ralph R. Beistline. Fleming received a sentence of 52 months in prison and 5 years of supervised release on charges related to a drug conspiracy. During the course of the drug conspiracy, Fleming was also on Federal Supervised Release from a prior drug conspiracy for which he was sentenced to 120 months in November 2002. As a result of his new conviction, Fleming had 18 months imposed for the probation violation to be served consecutive to the 52 months, for a total of 70 months imprisonment.
Fleming was a member of a drug trafficking conspiracy during which he and his co-conspirators attempted to conceal their drug trafficking by claiming they were involved in a legitimate business, specifically that they were “artists,” employees, or promoters of an Anchorage recording label and rap and hip hop performance group known as “Out Da Cutt” (ODC) Entertainment and “Up North ‘D’” or “Dope Boys” (UNDB). Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks. Much of their music glorified the lifestyle of selling illegal narcotics and committing other crimes. The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal narcotics. Fleming held himself out as a business manager of the record label and recording group. During the course of the conspiracy, Fleming was mainly responsible for collecting drug debts.
Fleming has a prior federal drug trafficking conspiracy conviction. Before imposing a sentence, Judge Beistline chastised the defendant for returning to the same criminal lifestyle so soon after being released from a lengthy prison sentence for a similar crime. Judge Beistline characterized the defendant as an "enforcer" during the drug conspiracy, and informed the defendant that he was being sentenced so that others would be deterred in the future and to re-affirm societal norms.
Fleming was a member of a wide ranging conspiracy along with 13 co-conspirators located in Anchorage and Fairbanks. Christopher Anderson was previously sentenced to 14 months imprisonment on November 2, 2012. DeMarr Moultrie was sentenced to 40 months imprisonment on May 1, 2013. Jeraelyn Hill was sentenced to 66 months imprisonment on May 28, 2013. Jerry Wormley was sentenced to 36 months imprisonment on May 31, 2013. Rock Phelps II was sentenced to 18 months imprisonment on June 14, 2013. Brent Gunnels was sentenced to 6 months on August 2, 2013. Mihla Hall was sentenced to 28 months on August 21, 2013. Joshua Mustovich was sentenced to 87 months on September
6, 2013. Dalon Johnson was sentenced to 92 months on September 24, 2013. Donnell Johnson, Tevoris Carter, Emma Shine, and Terrance Fleming have plead guilty for their roles in connection with the conspiracy and await sentencing.Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Postal Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of Mr. Fleming.
Tennessee Men Plead Guilty to Illegally Trafficking Narwhal TuskRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today two plea agreements in a multi-national conspiracy to illegally import and sell narwhal tusks.
Jay G. Conrad, of Lakeland, Tennessee, pleaded guilty in the District of Maine to conspiring to illegally import and traffic narwhal tusks, conspiring to launder money, and illegally trafficking narwhal tusks, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division. A plea agreement was also unsealed in which Eddie T. Dunn, of Eads, Tennessee, pleaded guilty in the District of Alaska to conspiring to illegally traffic, and trafficking, narwhal tusks.
According to the plea agreements, beginning in approximately 2003, Dunn and Conrad partnered to buy more than 100 narwhal tusks from a Canadian resident. Each knew the tusks were illegally imported from Canada into Maine. After receiving the tusks in Tennessee, Dunn and Conrad marketed and sold the tusks using a combination of internet sales via the “Ebay” auction website and direct sales to known buyers and collectors of ivory. Buyers were located throughout the United States, including in Alaska and Washington. Throughout the conspiracy, Dunn and Conrad made payments to the Canadian supplier for the narwhal tusks by sending the payment to a mailing address in Bangor, Maine, or directly to the supplier in Canada. The payments allowed the Canadian supplier to purchase and re-supply Dunn and Conrad with more narwhal tusks that they could then resell. Dunn sold approximately $1.1 million worth of narwhal tusks and Conrad sold between $400,000 and $1 million worth of narwhal tusks as members of the conspiracy.“This investigation uncovered and dismantled a wildlife trafficking network that spanned from New Brunswick to Tennessee and reached as far as Alaska,” said Karen Loeffler, U.S. Attorney for the District of Alaska. “The results reached demonstrate the close cooperation between the United States and Canada and their law enforcement officers whose duty it is to investigate, stop and deter those who illegally target diminishing wildlife resources and do so for commercial gain.”
“In this conspiracy, Dunn and Conrad flouted U.S. law and international agreements that protect marine mammals like the narwhal from commercial exploitation,” said Acting Assistant Attorney General Dreher. “If left unchecked, this illegal trade has the potential to irreparably harm the species. The Justice Department will continue to investigate and prosecute wildlife traffickers in order to protect these species for future generations to enjoy.”
“The cooperation between Service and NOAA investigators and between the United States and Canada that led to these prosecutions reflects the type of partnerships needed to protect narwhals and other species worldwide from wildlife trafficking,” said William C. Woody, Assistant Director for Law Enforcement for the U.S. Fish and Wildlife Service. “NOAA OLE takes the unlawful importation of protected marine mammals very seriously,” said NOAA-Office of Law Enforcement Special Agent in Charge Logan Gregory. “NOAA OLE will continue to investigate those who unlawfully import marine mammal products and profit from marine protected species such as the narwhal.”
A narwhal is a medium-sized whale with an extremely long tusk that projects from its upper left jaw. Narwhals are marine mammals protected by the Marine Mammal Protection Act and are listed on Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). It is illegal to import parts of marine mammals into the United States without the requisite permits/certifications, and without declaring the merchandise at the time of importation to U.S. Customs and the U.S. Fish and Wildlife Service. Narwhal tusks are commonly collected for display purposes and can fetch large sums of money.
Dunn is scheduled to be sentenced by Chief U.S. District Judge Ralph R. Beistline in the District of Alaska on March 20, 2014. The maximum penalty Dunn faces for conspiring to illegally traffic, and trafficking narwhal tusks is five years of incarceration and a fine of $250,000. The maximum penalty Conrad faces for conspiring to illegally import and illegally traffic narwhal tusks, conspiring to commit money laundering crimes and illegally trafficking narwhal tusks is twenty years of incarceration and a fine of $250,000.
The trial of co-defendant Andrew J. Zarauskas is set to begin in Bangor, Maine, on February 4, 2014. Co-defendant Gregory R. Logan is pending extradition from Canada to the District of Maine.
These cases are part of Operation Nanook, a multi-agency effort to detect, deter and prosecute those engaged in the unlawful trafficking of narwhal tusks. The cases were investigated by agents from National Oceanic and Atmospheric Administration - Office of Law Enforcement and the U.S. Fish and Wildlife Service - Office of Law Enforcement, with extensive support and collaboration from Environment Canada - Wildlife Enforcement. The cases are being prosecuted by Trial Attorney Todd S. Mikolop of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Steven E. Skrocki of the District of Alaska.Drug Trafficker Sentenced to 14 Years in Prison for Methamphetamine DistributionRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that San Chiam Saechao of Anchorage was sentenced by U.S. District Court Judge Sharon Gleason to 168 months in prison for his role in possessing with intent to distribute more than two kilograms of methamphetamine.
San Chiam Saechao previously pled guilty to possession with the intent to distribute large quantities of methamphetamine. In addition to his prison sentence, Saechao was ordered to forfeit approximately $8,900 in cash and two vehicles that he obtained as a result of his drug trafficking activities.
In sentencing Saechao, Judge Gleason emphasized the magnitude of the defendant’s crime, noting that methamphetamine “is a drug that is eating away at the soul of our community.” She also found it concerning that Saechao appeared to be trafficking in his home while multiple young children were present.
According to court documents, Saechao distributed methamphetamine over the course of many months, beginning as early as September 2012. His trafficking activities culminated in January 2013, when he received a package that had contained more than 1.8 kilograms of actual methamphetamine. At the time, he also had multiple firearms in his possession.
The case was jointly prosecuted by Assistant U.S. Attorneys Stephan Collins and Stephanie Courter. The case was investigated by the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigation (HSI), the Anchorage Police Department (APD), the Alaska State Troopers (AST), and the Drug Enforcement Administration (DEA).
Former President of Tatitlek Native Village Sentenced to 18 Months for Misapplication of Tribal FundsRead the Press Release
Lori “Sue” Clum (formerly Johnson), 46, of Anchorage, Alaska, was sentenced today by United States District Court Judge Sharon L. Gleason, to 18 months in prison.
According to Assistant U.S. Attorney Aunnie Steward, Clum was elected as President of the Native Village of Tatitlek, a federally recognized tribe, in October 2007. Clum was voted out of office in April 2008 but refused to accept the results of this election and maintained control of the tribal bank accounts for another year, during which time she misapplied $112,000 of tribal funds for her personal benefit. Clum used the money to gamble, pay personal debts, and purchase a four wheeler among other things. Clum finally relinquished control of the tribal bank accounts after she was arrested for illegal drug possession in March 2009.
In a separate but related matter, Clum confessed judgment in a civil case brought by the Native Village of Tatitlek for a total of $150,000 that she misapplied, which amount included disputed payroll for Clum. Clum was arrested on January 13, 2013, on state charges that she was selling drugs and alcohol in Tatitlek. These charges are still pending.
At sentencing, Judge Gleason noted the importance of deterring this type of conduct in remote communities with fragile economies where fraud like this has an enormous impact, as well as the emotional impact on a small community.
Clum’s brother, James Kramer of Valdez, Alaska, is scheduled for sentencing on January 22, 2014, for his role in accepting $20,000 from Clum. Kramer accepted the money knowing he was not entitled to it, and he failed to file a tax return to include this money as well as other income he had received in 2009.
Ms. Loeffler commends the FBI, IRS Criminal Investigations, and EPA Office of Inspector General, with assistance from the Valdez Police Department, for the investigation of this case.
Two Fairbanks Men Plead Guilty to Illegal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that two Fairbanks men entered pleas of guilty in federal court today in Fairbanks, for two counts of trafficking in narcotics.
Andrew Paul Newman, 51, and Jason Carl Heim, 36, both of Fairbanks, Alaska, pleaded guilty today before Chief United States District Judge Ralph R. Beistline, to charges that they conspired to violate federal drug trafficking laws, and possessed more than 50 grams of actual 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, the two men cooperated in shipping into Alaska for resale a parcel containing seven ounces of 71% pure methamphetamine. When the parcel came through the U.S. Post Office in August 2013, Postal Inspectors suspected it contained illegal drugs. They obtained a search warrant from the court, followed the parcel when it was delivered, and arrested both Newman and Heim as they were in the act of opening the parcel in a secluded wooded area near North Pole. Electronic mail and postal records showed the parcel was the latest in a series of shipments of methamphetamine that Newman and Heim received by mail from an unidentified source in California between April and August. According to law enforcement investigators in the case, the total value of the seized drugs alone exceeds $40,000 or $80,000 if the drugs were diluted before resale. The value of the additional drugs Newman and Heim had shipped into Alaska between April and August would be several times this amount.
The judge set sentencing proceedings for April 4, 2014, in Fairbanks. Newman and Heim were ordered detained in custody pending the sentencing.
Ms. Loeffler commends the U.S. Postal Inspectors, the Bureau of Alcohol, Tobacco and Firearms, and the Alaska State Drug Enforcement Unit for the investigation of this case.
Defendants sentenced in $25 Million Tax Fraud and Drug ConspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Joel Santana-Pierna and Abel Santana-Pierna, citizens of the Dominican Republic residing in Alaska, were sentenced to 135 months and 72 months imprisonment, respectively, for their roles in masterminding and perpetrating large drug trafficking and tax fraud conspiracies.
Joel Santana-Pierna pled guilty to conspiracy to distribute cocaine and conspiracy to defraud the government with respect to claims on May 2, 2013. His brother, Abel Santana-Pierna, pled to the same charges on July 23, 2013. In addition to their prison sentences, the Santana-Pierna brothers were ordered to pay restitution to the Internal Revenue Service in the amount of $559,755. Both brothers also agreed to forfeit to the United States approximately $130,000 obtained as part of their drug trafficking activities.
In sentencing the Santana-Pierna brothers, U.S. District Court Judge Timothy M. Burgess repeatedly emphasized the seriousness of the offenses committed by both men and noted the need to protect the public while also deterring others from committing these types of crimes in the future.
According to court documents, from January 2010 to March 2012, Joel Santana-Pierna led his conspirators, including his brother Abel Santana-Pierna and others, in distributing cocaine in the Anchorage area. He also arranged to import over two kilograms of cocaine into Alaska for distribution. In addition to their cocaine smuggling scheme, the Santana-Pierna brothers conspired to use stolen Puerto Rican identities to file false income tax returns and obtain large income tax refunds to which they were not entitled.
Conspirators in the income tax fraud scheme obtained the identities of more than 3,000 individuals, including names and social security numbers. Most of these stolen identities were from citizens of Puerto Rico. Using this stolen information, the brothers and their co-conspirators completed false returns and submitted them to the IRS. Altogether, the United States estimates that the total loss intended by members of the conspiracy exceeded $25 million.
“The sheer greed of these drug traffickers is clear; they wreaked havoc on the innocent to bolster their personal wealth,” said Drug Enforcement Administration Special Agent in Charge Matthew G. Barnes. “This is an example of the multiple layers of criminal activity involved in a drug investigation. The extraordinary coordination between the law enforcement community has put these criminals where they belong.”
“The Santana-Piernas’ multi-layered identity theft and fraud scheme to divert taxpayer dollars from the U.S. Treasury to themselves victimized many innocent people, and today’s sentence is an appropriate outcome,” said Richard Weber, Chief of Internal Revenue Service Criminal Investigation. “Investigating tax return fraud through identity theft remains a top priority for criminal investigators of the Internal Revenue Service, and we will relentlessly pursue those who choose to defraud the government and disrupt the lives of innocent taxpayers.”Ten other individuals were also indicted as part of the drug trafficking and fraud conspiracies.
For his role in the conspiracy, co-defendant Isaac Amparo-Vazquez was sentenced on February 1, 2013, to 57 months in prison. Another co-defendant, Misael Polanco-Villa, who was instrumental in the drug trafficking conspiracy, was sentenced to 46 months in prison. Two former Wells Fargo Bank employees, Melissa Duran-Muniz and Hilda Josephine Hernandez McMullen, have also been sentenced. Multiple other co-conspirators await sentencing. One remains a fugitive.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 Drug Enforcement Administration (DEA), 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), and the U.S. State Department’s Diplomatic Security Service. 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.
Prison inmate sentenced to 9 additional years in prison for filing false tax refund claims and aggravated identity theftRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that John Richard Koesterman, 49, currently an inmate in Federal prison, was sentenced to an additional 9 years in prison on December 27, 2013. Koesterman is serving a 15-year sentence on a federal drug conspiracy conviction, and today received an additional 9-year sentence, 84 months for conspiracy to defraud the government with respect to claims and mail fraud, and a consecutive sentence of 24 months for aggravated identity theft, to be followed by three years’ supervised release. After Koesterman completes the 15-year sentence, he will begin to serve the 9-year sentence imposed today. Koesterman pled guilty on September 16, 2013. In addition to his prison sentence, Koesterman was ordered to forfeit $19,538.75 which was seized by law enforcement, and to pay restitution in the amount of $95,568.
According to filings with the court, while Koesterman was a State of Alaska inmate, he directed others in a conspiracy to defraud the United States by filing false tax returns in order to obtain fraudulent tax refunds. Between July 2009 and May 2011, Koesterman and his co-conspirators prepared and submitted approximately 55 false tax returns claiming refunds of over $275,000. Koesterman and his co-conspirators illegally obtained over $95,000 in fraudulent refund claims paid by the United States Treasury.
Court documents revealed that Koesterman obtained the names and social security numbers of individuals, many of whom were inmates with Koesterman. Koesterman then used that information to prepare and file false individual income tax returns. Koesterman also provided that information to other co-conspirators to prepare and file false tax returns. Most of the false tax returns claimed exemptions for dependents who were not known to or supported by the individual whose name and social security number was used for the false tax return. Koesterman authorized the co-conspirators to retain a portion of the money from the refunds, and directed them to mail portions of the refunds to other co-conspirators to hold the money for him.
In sentencing the defendant, United States District Court Judge Timothy M. Burgess stated that “taxpayers have to foot the bill for making good on the loss.”
“John Koesterman and his conspirators unlawfully manipulated the tax code for their own personal gain, reaping thousands of dollars in fraudulently procured tax refunds,” said Teri Alexander, Special Agent in Charge of Internal Revenue Service Criminal Investigations in the Pacific Northwest. “Today’s sentences signal that IRS Criminal Investigations will bring to justice those who abuse the tax system and attempt to swindle the honest tax paying public.”
s. Loeffler commends the Internal Revenue Service Criminal Investigations for conducting the investigation leading to the successful prosecution of Koesterman.
Registered Nurse sentenced to 5 1/2 years in prison for stealing millions from Elderly Patient's EstateRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a former Anchorage registered nurse was sentenced in federal court in Anchorage yesterday for fraud and filing a false tax return.
Brian Amiel Ben-Israel, 54, of Atlanta, Georgia, was sentenced to 66 months in prison by Chief United States District Court Judge Ralph R. Beistline for stealing over two million dollars from an elderly woman’s estate. Ben-Israel pled guilty on September 16, 2013, to one count each of mail fraud, wire fraud and filing a false tax return. A separate hearing will be held on February 18, 2014 to determine how much he must pay in restitution.
According to Assistant U.S. Attorney Retta Rae Randall, who prosecuted the case, Ben-Israel was a registered nurse residing in Anchorage and working at Meridian Psychiatric Consulting Group when he met and befriended Ms. Juanita Gielarowski. During the period of 2005 through 2008, Ben-Israel became a health care provider and “financial advisor” to Gielarowksi and her daughter, Linda Stowers. Ben-Israel gained control over assets of the Juanita V. Gielarowski Revocable Trust by creating a new trust with the assistance of co-defendant, Philip Eric Myers, a former attorney. Once Ben-Israel and Myers gained control of the Trust, they diverted over two million dollars from Gielarowski’s Trust, intended to be used for her care and benefit, to their own personal benefit.
Ben-Israel and co-defendant Myers persuaded Gielarowski and Stowers, in December 2007, to invest more than one million dollars in Myers’ company, Typhoon Security Technology, Inc. Myers, the CEO of Typhoon, claimed the company would be one of the top three global leaders in explosives and weapons detection technology. Myers was the CEO of Typhoon. Ben-Israel had a contract with Typhoon to sell private placement investments on commission. However, Typhoon was suspended by the State of California in September 2007 and could no longer lawfully conduct business. The Estate lost all of its investment money.
Ben-Israel charmed and manipulated Gielarowski and Stowers; he allowed Stowers to pretend that they were husband and wife. As Stowers’ nurse, he encouraged her to take care of her health, getting gastric bypass surgery and plastic surgery. Ben-Israel enjoyed the plane trips such treatments required and he indulged in plastic surgery himself, paid for by the Gielarowski Estate. As a “financial advisor” he questioned how the Gielarowski Estate and assets were being invested, preying on Stowers and her mother’s financial concerns for her long-term care.
Ultimately Ben-Israel became a trustee of the Estate and gained access to the bank accounts of the Estate, transferring much of the funds to his personal bank account, using the money to pay for extensive travel and purchasing real estate, including a five-acre property located at 133 Kaiwiki, Hilo, Hawaii, for $750,000. Ben-Israel made a down payment of $476,500 with money from the Gielarowski Estate as well as the proceeds from the sale of his Hawaii condo. The home was titled only in Ben-Israel’s name.
Ben-Israel extensively remodeled this home with Gielarowski Estate funds, claiming the estate would be the retirement villa for Gielarowski and Stowers. Stowers did stay at the house while recovering from her surgeries; Gielarowski was morbidly obese and bedridden, unable to travel. A lift was used to remove her from her bed and into a wheelchair. In July 2009, this “4 acre tropical jungle paradise” was advertised as “The Garden of Eden … for the clothing challenged or clothing optional minded Gay Male community.” Ben-Israel is gay.
Ben-Israel gave substantial amounts of money from the Estate to partners and friends, claiming the money was an inheritance from a wealthy grandfather.
The tax charge is based upon income payments made to Ben-Israel by the Estate for nursing care that he did not report to his employer, Meridian, or to the IRS. He also failed to report the Typhoon commissions he received and the theft income he obtained.
The actions of Ben-Israel and Myers completely depleted the Juanita Gielarowski estate by August 2009, and caused Gielarowski to be moved from her long established home to a state funded elder care facility where she died in July 2010.
In sentencing the defendant, Judge Beistline stated that Ms. Gielarowski “was the ultimate in vulnerable victims.” “A fiduciary duty is a serious duty. If we cannot protect our elderly and our vulnerable, what kind of society are we? We need to protect the vulnerable.” When determining the length of the sentence, Judge Beistline asserted that the punishment had “to sting” and send a message to those whose jobs are to protect the elderly.
Tamera Cant, Assistant Special Agent in Charge for IRS Criminal Investigation in the Pacific Northwest, said, “The IRS enforces the nation’s tax laws, but we also take particular interest in cases where someone has taken what belongs to others. We are dedicated to working with our law enforcement partners to investigate scams that exploit the innocent.”
Deirdre L. Fike, Special Agent in Charge of the FBI in Alaska, said, “The crimes committed by Brian Amiel Ben-Israel are particularly reprehensible because he used his position as a nurse to steal funds intended to provide for the care of an elderly woman. This investigation is an example of the FBI’s ongoing commitment to protect Alaskans, especially the elderly, from fraud.”
Co-defendant Myers pled guilty on September 20, 2013, and has agreed to forfeiture and restitution in the amount of $1,081,000. Myers’ sentencing is scheduled for January 17, 2014, before Chief Judge Beistline.Ms. Loeffler commends the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, and the Anchorage Police Department for the investigation of this case. Ms. Loeffler also commends the State of Alaska Office of Elder Fraud & Assistance who provided assistance in this investigation.
Georgia Aircraft Restorer settles dispute with Federal Authorities over removing rare aircraft parts from Alaska Public LandRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an aircraft restoration company based in Douglas, Georgia, reached a settlement agreement for unauthorized use of public lands in Alaska.
B-25 Group, LLC, a commercial aircraft restoration company, led by Aircraft Restoration Specialist Edward Thomas Reilly Jr. has paid the U.S. Bureau of Land Management (BLM) $55,000 to conclude a five year investigation surrounding the unauthorized removal of parts from a historic F-82 crash site located south of Fairbanks, Alaska.
The F-82, serial number 46-497, took off with two other F-82 aircraft from Ladd Air Force Base (AFB) (currently U.S Army Garrison Fort Wainwright) on January 16, 1950, for local practice of aerial interceptions. During the flight 46-497 crashed on the Tanana Flats near Fairbanks, killing both military service members on-board.
During July 2008, salvagers affiliated with B-25 Group located and removed parts from the crash site without authorization from BLM, the agency that manages federally owned lands. B-25 Group initially asserted the parts had been lawfully acquired from a salvage yard in Fairbanks. Although the U.S. Air Force had formally abandoned ownership of the remains of all USAF aircraft which had crashed prior to November 1961, Air Force and public land policy requires salvagers to obtain permission and coordinate salvage plans with the owner of the land. In the case of this F-82 aircraft, the land owner is the U.S. Department of the Interior, Bureau of Land Management.
The settlement agreement provides BLM with $50,000 for archeological work in recovering the remainder of this historic aircraft. B-25 Group has also agreed to provide patterns and specifications for the parts it recovered from 46-497 and built into its P-82 currently undergoing restoration.
Ms. Loeffler commends the U.S. Bureau of Land Management, Department of the Interior, for the investigation of this case. In addition to the BLM, the Federal Bureau of Investigation and U.S. Air Force Office of Special Investigations also are to be commended for their efforts associated with the investigation of this case.
According to Assistant U.S. Attorney Stephen Cooper, the additional $5,000 was assessed as a civil penalty and will be used by BLM to further its efforts to protect historic aviation properties in the State of Alaska.Mexican Citizen sentenced to 15 year in Federal Prison for Methamphetamine Trafficking in KetchikanRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Fernando Benitez-Moreno, a/k/a Cesar Benitez, Jr., a/k/a David Sanchez, a/k/a “Security”, a/k/a “Uncle Cesar”, a/k/a “Uncle Bob”, a citizen of Mexico who illegally returned to the United States after a prior conviction for drug trafficking, was sentenced in federal court in Ketchikan to 15 years of imprisonment on a sole count of methamphetamine conspiracy.
United States District Court Judge Timothy M. Burgess imposed the sentence on Benitez-Moreno, 49.
According to the information presented to the court by Assistant U.S. Attorney Jack S. Schmidt, Benitez-Moreno was a manager and organizer of a drug conspiracy that trafficked methamphetamine between Washington State and Ketchikan, Alaska. The conspiracy started on or about January 2007 and continued until November 2009, using drug couriers traveling on commercial aircraft to transport methamphetamine from Washington to Ketchikan, and then transporting drug profits back to Benitez-Moreno in Washington. Benitez-Moreno made frequent trips to Ketchikan in order to manage the distribution of methamphetamine and to collect drug profits from the conspiracy. Other members of the conspiracy were previously convicted and sentenced, including Ramon Hueso, Tova Weiss, Deeann M. Hanson, Brett D. Clearwater a/k/a “Chief”, Meghan S. Bird, Jolene J. Lapinski, Eulogio F. Seludo a/k/a “Louie”, Rodulfo L. Lastimoss, Michael T. Stanley, and Timothy Shull. Benitez-Moreno will be deported from the United States upon the completion of his sentence.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense, the importance of deterring the defendant and others similarly situated, the need to protect the public and to provide a just punishment for the offense, as the reasons that supported imposition of the sentence.
Ms. Loeffler commends the Drug Enforcement Administration and the Ketchikan Police Department for the investigation leading to the successful prosecution of Benitez-Moreno and his co-conspirators.
Codefendant in Methylone Distribution Case sentenced to one year in Federal PrisonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Chad Cameron, 19, of Wasilla, Alaska, was sentenced to one year in federal prison for his role in the methylone conspiracy that resulted in the April 2012 death of Matt Scott. Robin Gattis, 20, was sentenced to 16 years in prison earlier this month.
Cameron pled guilty in March 2013, admitting that he attempted to possess 850 grams of methylone that was shipped from China to Alaska in July 2012. In the plea agreement, Cameron also admitted that he had wired money to China to pay for drugs beginning in November 2011, when he was still a juvenile. Cameron also admitted wiring money to China in June 2012, after Scott’s death, to purchase more methylone. That shipment, addressed to Cameron, was intercepted by U.S. Customs in Chicago. Cameron was arrested along with Gattis and codefendant Stephen Kimbrell on the Kenai Peninsula in July 2012, after Customs intercepted another package addressed to Kimbrell in Soldotna.
Chief U.S. District Court Judge Ralph R. Beistline imposed the sentence. Chief Judge Beistline referred to designer drugs such as methylone as “an epidemic” in this community. Cameron told the judge that the drugs were his “escape” and said “I did it for fun.” Cameron said that he thought it was “no big deal” to sell the drugs, and that he expected at most a “slap on the wrist” if he were caught. In addition to Gattis, two other defendants have already been sentenced to terms of probation. Three remaining defendants are scheduled for sentencing in January.
Methylone, a Schedule I controlled substance, also popularly known as “Molly,” “M1,” “MDMC,” and “Rolls,” is a synthetic drug similar to ecstasy (“MDMA”), and is commonly imported from China via the internet for use in the U.S., particularly at clubs, parties and other social gatherings such as “raves.”
Ms. Loeffler commends Homeland Security Investigations, the Drug Enforcement Administration, the Anchorage Police Department, the United States Postal Inspection Service, and the Mat-Su Drug Unit for the investigation of this case.
Two admit to conspiracy for identity theft and wire fraud in connection with the filing of false income tax returnsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Lucille Stansberry, 40, of Anchorage, Alaska, and Joe Murl Douglas, Jr., 54, of Los Angeles, California, entered guilty pleas in federal court on Friday, December 13, 2013, before U.S. District Court Judge Timothy M. Burgess, to conspiracy to commit wire fraud in connection with filing false income tax returns, and aggravated identity theft.
Stansberry and Douglas admitted conspiring with two others to obtain identifying 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 identifying information and falsified documents were taken 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.
In order to increase the refunds claimed on the false returns, in some instances, stolen identifying information was used to claim dependent children on the false returns. The returns requested refunds totaling between $1,400 and $8,600. 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. Title to the Mercedes will be forfeited to the government and a money judgment of up to $102,313 – representing the total amount of money involved in the offenses alleged in the indictment – may be entered jointly and severally against convicted defendants.
Douglas and Stansberry will be sentenced on March 21, 2014.
Two other defendants were charged as co-conspirators in the case, Demetrick Ruffin, who is a fugitive, and Jameane Bolton-Williams, a/k/a Jameane Williams, who is scheduled for a court appearance on January 6, 2014.
According to Assistant U.S. Attorneys Retta Randall and Stephanie Courter, the defendants face up to 20 years in prison for the wire fraud, and a mandatory two-year consecutive sentence for the aggravated identity theft. The potential maximum fine is $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 of the defendant.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” stated Tamera Cantu, Assistant Special Agent in Charge of IRS Criminal Investigation. “Filing fraudulent tax returns in the names of other individuals may result in significant harm to those individuals whose identities were stolen, as well as a monetary loss against the U.S. Treasury.”
Ms. Loeffler commends the IRS Criminal Investigation Division for the investigation of this case.
Hunters plead guilty to shooting two bull moose in Denali National ParkRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that three Southcentral men plead guilty and were sentenced for violating the Lacey Act in the illegal hunting, take and transport of two bull moose shot in Denali National Park in September, 2012.
On Monday, December 16, 2013, Anchorage residents, Charlie W. Hart, 55, and Deric C. Hart, 33, pled guilty to the illegal take and transportation of bull moose from within Denali National Park. Homer resident Michael J. Barth pled guilty last Friday, December 13th. In connection with their guilty pleas, all three men were sentenced before the Hon. Deborah M. Smith, United States Magistrate Judge, to a term of probation of 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 permission to moose hunt on a private in-holding of land in the Kantishna area of Denali National Park through a third party. 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 (1) bull moose be taken, and that the hunt occur within the confines of the private inholding.
Charlie Hart and Deric Hart admitted that in September 2012 they travelled with co-defendant James Riggs and another individual on 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 on Denali National Park property. 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 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”.
Two days later, on September 5, 2012, Michael Barth and Deric Hart continued to hunt moose on Denali National Park property. As part of his guilty plea, Michael Barth admitted that he was stalking a Moose on Denali National Park property and that co-defendant James Riggs shot and killed the moose and allowed Barth to tag the moose as if Barth had shot and killed it. After shooting the second moose, the party illegally used ATV’s and a UTV in a closed ORV area to drag the moose from the location where it fell, on Denali National Park property, approximately another ½ mile back to the inholding property for field dressing. The second moose’s antlers measured approximately 65”.
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 and other details of the kills.
Co-defendant James Riggs is scheduled to appear in court on January 6, 2014.
Ms. Loeffler commends the National Park Service and the United States Fish and Wildlife Service, and the Bureau of Land Management for their work in the investigation of this case.
Wasilla Conspiracy Leader sentenced for Designer Drug Case which resulted in deathRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that the leader of a drug conspiracy involving seven defendants was sentenced to 16 years in federal prison.
Robin Gattis, 20, of Wasilla, Alaska, pled guilty in August 2013 to drug conspiracy, admitting that he imported approximately three kilograms of methylone between October 2011 and July 2012 and distributed it in Alaska. In a plea agreement filed with the court, Gattis admitted that he was the leader and organizer of the conspiracy, that he directly imported the drugs from China, and that he repeatedly wired money to China or directed others to do so in order to pay for drugs. He also admitted that he engaged in drug dealing as a livelihood, that he knowingly used persons under age 18 to assist in the crime, that he distributed the drugs to persons under 18, and that he distributed methylone to Matt Scott, who died of a methylone overdose in April 2012 in Anchorage.
The six other co- conspirators have previously pled guilty to federal drug charges stemming from a conspiracy to possess and distribute methylone. Two have been sentenced, and four are awaiting sentencing.
Chief U.S. District Court Judge Ralph R. Beistline imposed the sentence today in Anchorage, Alaska. Gattis has been in federal custody since his arrest on July 31, 2012.U.S. Attorney Loeffler warned Alaskans that “People taking these drugs have absolutely no idea what they are ingesting. They are not made in a laboratory with standards and oversight. They are made by criminals, and there is no way to tell what is in the powder you’re putting in your body. A teenage party should not end with death and a grieving family. These club drugs are touted as safe, and they are not.”
“Designer drugs from China in the hands of young, enterprising drug dealers proved to be deadly in this case,” said Brad Bench, Special Agent in Charge of Homeland Security Investigations in Seattle, who oversees Alaska investigations. “International shipments are routinely inspected by U.S. Customs and Border Protection officers at sorting facilities around the country to detect illicit packages like the ones shipped to Gattis and his co-conspirators. HSI and its law enforcement partners are committed to pursuing those who use legitimate shipping channels to smuggle drugs into the U.S.”
“By the defendant’s own admission, he engaged in the trafficking of Methylone for a living and as a result a terrible and senseless tragedy has occurred,” said DEA Special Agent in Charge Matthew G. Barnes. “Synthetic drugs are insidious substances that are manufactured in clandestine laboratories and marketed to our youth all in the name of greed. We are grateful to our partners, Homeland Security Investigations, Anchorage Police Department, Alaska State Troopers, U.S. Postal Service and the United States Attorney’s Office for their persistence and dedication in obtaining justice.”
Methylone, a Schedule I controlled substance; also popularly known as “Molly,” “M1,” “MDMC,”and “rolls,” is a synthetic drug similar to ecstasy (“MDMA”), and is commonly imported from China via the internet for use in the U.S. particularly at clubs, parties and other social gatherings such as “raves.”
Ms. Loeffler commends Homeland Security Investigations, the Drug Enforcement Administration, the Anchorage Police Department, the United States Postal Inspection Service, and the Mat-Su Drug Unit for the investigation of this case.
Ketchikan Man arraigned in Federal Court for assault on a Federal OfficerRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Ketchikan man was arraigned yesterday in Juneau on one charge of assault on a federal officer.
Jon William Munhoven, 55, of Ketchikan, Alaska, also known as “John William Mundhoven,” appeared in court yesterday and pled not guilty to the charge.
According to the information presented to the court, Munhoven was contacted by the United States Coast Guard in response to a disturbance on a private vessel outside of Ketchikan, Alaska. Once contacted, USCG officers removed Munhoven from the vessel and onto a USCG patrol vessel. Munhoven was subsequently placed in restraints. The USCG secured the other vessel in order to tow the vessel into safe harbor. The indictment alleges that Munhoven was hostile and aggressive during the tow operation and was placed on the deck of the USCG boat for his safety and the safety of other personnel on the patrol vessel. Munhoven is charged with kicking a USCG officer in the face with a shod foot causing bodily injury to the officer.
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, 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 United States Coast Guard Investigative Service and the Ketchikan Police Department conducted the investigation leading to the indictment in this case. Munhoven remains incarcerated pending trial 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.
Emmonak Woman sentenced to prison for theft of cash from registered mailRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Emmonak woman who pled guilty was sentenced in federal court in Anchorage for four felony violations of theft of mail by an officer or employee of the U.S. Postal Service.
Sharon Andrews, 54, of Emmonak, Alaska, admitted to stealing nine registered mail packages containing a total of $174,000 in cash. Andrews was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline to 4 months in prison, three years of supervised release, and was ordered to repay $164,700 in restitution.
According to Assistant U.S. Attorney Bryan Schroder, who prosecuted the case, in 2010 Andrews was the Postmaster in Emmonak, Alaska. In May 2010, Andrews illegally took possession of three registered mail packages containing a total of $44,000 in cash. The packages were supposed to be forwarded to Kotlik, Alaska, but Andrews stole them instead. In September 2010, she illegally took possession of an additional registered mail package containing $25,000 in cash. That package was also addressed to Kotlik, Alaska. Finally, in October 2012, Andrews again illegally took possession of five additional packages containing a total of $93,100 in cash, also addressed to Kotlik.
Ms. Loeffler commends the U.S. Postal Service Office of Inspector General, and the U.S. Postal Inspection Service for the investigation of this case.
Two Michigan Hunters sentenced for illegally taking Grizzly Bear in closed season on Arctic National Wildlife RefugeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two Michigan residents were sentenced in U. S. District Court in Fairbanks for a 2009 unlawful taking of a grizzly bear during closed season, making false records to conceal the illegal kill, and transporting the bear parts out of Alaska.
Mark A. Peyerk, 40, of Mio, Michigan, and his mother, Charlotte M. Peyerk, 66, of Shelby Township, Michigan, pled guilty in September 2013 to charges of conspiracy to violate federal wildlife laws, taking grizzly bear out of season in the Arctic National Wildlife Refuge, and making a false record of wildlife shipped interstate. Both defendants were sentenced yesterday by U.S. Magistrate Judge Scott A. Oravec, in Fairbanks, Alaska. The court fined each defendant $20,000, ordered defendants M. Peyerk and C. Peyerk to pay $10,000 and $5,000 dollars respectively in community service payments to the National Fish and Wildlife Foundation, required each defendant to write a public letter of apology to Safari Club International for submitting the fraudulent entry of the illegally taken bear, and ordered forfeiture of the hunting rifle and the bear. The court also prohibited the defendants from hunting during Mark Peyerk’s 5-year and Charlotte Peyerk’s 4-year terms of probation.
In imposing sentence, Magistrate Judge Oravec commented that besides the illegal taking of wildlife, the more aggravated criminal conduct was the defendants’ multiple written false statements to cover up the illegal kill. According to Assistant U. S. Attorney Stephen Cooper, who prosecuted the case, Mark and Charlotte Peyerk admitted in their plea agreements that they and their assistant guides agreed they should take the bear the day before the season opened. The Peyerks’ cameras had the date indicator altered to make it appear the bear was killed on opening day. They also falsified the date of kill on a State of Alaska record and on a Safari Club International trophy entry form. Believing the false statements, Safari Club International awarded Charlotte Peyerk the “Diana Award” for “ethics in hunting.” The court ordered Ms. Peyerk to offer the return of the award to the Safari Club International.
This hunt was commercially guided by Fair Chase Hunts operated by Registered Guide Christopher Cassidy and Master Guide Joe Hendricks. Investigation of Fair Chase Hunts led to convictions of Cassidy, Hendricks and nearly a dozen other Fair Chase Hunts’ employees and clients for conduct described by Stan Pruszenski, Special Agent in Charge, U. S. Fish &Wildlife Service, Office of Law Enforcement in Alaska, as examples of “illegal commercialization of wildlife resources.”
Ms. Loeffler commends the United States Fish & Wildlife Service Office of Law Enforcement for Northern Alaska, Arctic National Wildlife Refuge officials, and the Alaska Wildlife Troopers for the investigation of this case.Petersburg Man indicted on distribution, receipt, and possession of child pornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Petersburg, Alaska, man was indicted for the distribution, receipt, and possession of child pornography.
A federal grand jury returned an indictment against Petersburg resident Tye Leif Petersen, 45, charging him with three counts: distribution, receipt, and possession of child pornography. Petersen was previously charged by criminal complaint on October 30, 2013, and was ordered detained pending trial.
Assistant U.S. Attorney Jack S. Schmidt, who is prosecuting the case, indicated that the law provides that a person convicted of distribution or receipt of child pornography faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 20 years, and a $250,000 fine. The charge of possession of child pornography carries a maximum sentence of 20 years and a $250,000 fine because the images depict children under the age of 12 years. 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 charges against Petersen are the result of an investigation conducted by the Federal Bureau of Investigation in cooperation with the Petersburg Police Department. If the public has any further information about the activities of Petersen please contact the Petersburg Police Department at (907) 772-3838.
This case is being pursued as part of Project Safe Childhood. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Wasilla Resident charged with possessing unregistered silencerRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Wasilla resident was charged with the illegal possession of an unregistered silencer.
Wasilla resident, James C. Riggs, 58, was charged by the federal grand jury with illegally possessing an unregistered .22 caliber silencer. In a separate matter, Riggs and three other South-central Alaska men were also charged by the United States Attorney 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 within Denali National Park in September 2012.
According to Assistant U.S. Attorney Steven Skrocki, who presented the case to the grand jury, the silencer was discovered in Riggs’ home while it was being searched in connection with the Denali moose hunt in September 2012.
Ms. Loeffler commends the National Park Service, the United States Fish and Wildlife Service, the Bureau of Land Management and the Bureau of Alcohol, Tobacco and Firearms and Explosives for their work in the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two men indicted for conspiracy to distribute methamphetamine and heroinRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two men have been indicted by a federal grand jury on charges that they conspired to distribute large quantities of methamphetamine and heroin.
Branden Lee Anastasio, 24, of Anchorage, Alaska, and Ernie Benny Juarez, Jr., 34, of Stockton, California, were named in both counts of the two-count indictment. The first count charges Anastasio and Juarez with conspiring to distribute and to possess with the intent to distribute 50 grams or more of actual methamphetamine and 100 grams or more of heroin. The second charges both men with actually possessing the narcotics with the intent to distribute them to others.
Assistant U.S. Attorney Stephanie Courter, who presented the case to the grand jury, indicated that both men face a ten-year mandatory minimum sentence on the methamphetamine charges, with a maximum sentence of up to life in prison. The law also provides for a fine of up to $10 million dollars. 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 United States Postal Inspection Service led the investigation that resulted in 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.
Two Alaska Men indicted for drug and gun crimes, including conspiracy to distribute heroinRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two men have been indicted by a federal grand jury on charges that they conspired to distribute large quantities of heroin. One was also indicted on related gun charges.
James Gwaltney and Baretta Faatafuga, both 37, and residents of the State of Alaska, were charged with conspiring to distribute and to possess with the intent to distribute 1 kilogram or more of heroin. They were also charged in a separate count with attempting to actually possess the narcotics with the intent to distribute them to others. Faatafuga, a convicted felon, also faces a charge of being a felon in unlawful possession of multiple firearms.
Assistant U.S. Attorney Stephanie Courter, who presented the case to the grand jury, indicated that both men face a ten-year mandatory minimum sentence on the drug charges, with a maximum sentence of up to life in prison. The law also provides for a fine of up to $10 million dollars. Faatafuga faces a separate sentence of up to 10 years in prison on the gun charge. 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 United States Postal Inspection Service, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that resulted in 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.
Four South-Central Hunters charged in taking two bull moose in Denali National ParkRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that four South-central men were charged by information with the illegal take, possession and transport of two bull moose taken in Denali National Park in September 2012.
Anchorage residents, Charlie W. Hart, 55, Deric C. Hart, 33, Wasilla resident, James C. Riggs, 58, and Homer resident, Michael C. Barth, 29, were all charged with a violation of the Lacey Act, and one count each of the unlawful take and unlawful possession of wildlife in a national park. In a separate case, James C. Riggs was also indicted for the illegal possession of an unregistered silencer which was found in his home during the investigation of this case.
According to Assistant U.S. Attorney Steven Skrocki, who presented the case to the grand jury, the four men illegally hunted for Bull Moose on Denali National Park and from September 3, 2012 through September 7, 2012, and during that time illegally killed two Bull Moose on Denali Park property.
Ms. Loeffler commends the National Park Service, the United States Fish and Wildlife Service, and the Bureau of Land Management for their work in the investigation of this case.
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.
Kodiak Fisherman sentenced for felony violation of the Lacey ActRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a resident of the state of Washington who fishes out of Kodiak was sentenced in federal court in Anchorage for four felony violations of the Lacey Act.
Steven Carr, 54, who resides in Anacortes, Washington, but fished out of Kodiak, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon L. Gleason, to 5 years’ probation.
Carr, at the time of the offense, was the owner and operator of the fishing vessel (F/V) Sea Mac, and caught Rockfish, primarily Pacific Ocean Perch (POP), in one regulatory area that was not available to him, and reported the catch as coming from another area.
According to Assistant U.S. Attorney Bryan Schroder, who prosecuted the case, in July 2008, Carr made 4 trips on the F/V Sea Mac to catch Rockfish. Carr had participated in a special program called the Rockfish Pilot Program (RPP), which was designed to encourage smaller processors to participate in the Rockfish fishery. When the RPP processors were accepting fish, participating fishermen were allowed to catch Rockfish in areas closer to Kodiak, as long as they delivered those fish to participating processors. In July 2008, none of the participating RPP processors were taking Rockfish, so CARR was not authorized to fish in the closed areas. During each of the four trips, Carr fished in the closed areas, but
falsely reported to the government that his catch was from an area farther from Kodiak. During the four trips in July 2008, the value of the Rockfish (including POP) caught by CARR was worth approximately $146,000. CARR made three similar trips in July 2007, catching approximately $125,000 of Rockfish (including POP).“Fisheries laws protect an important natural resource that belongs to all the people of the United States. Enforcement of fisheries laws is necessary to protect those resources for future generations,” stated U.S. Attorney Karen Loeffler.
Ms. Loeffler commends the National Oceanic and Atmospheric Administration, Office of Law Enforcement, Alaska Enforcement Division/Kodiak office, for the investigation of this case.
Prison inmate sentenced to five and a half years in prison for filing false tax refund claims and aggravated identity theftRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced today in federal court after being found guilty of conspiracy to defraud the government and aggravated identity theft.
Paulando Ramone Williams, 48, of Anchorage, Alaska, was sentenced today to five and half years in prison by Chief U.S. District Court Judge Ralph R. Beistline. Williams received a sentence of 42 months for conspiracy to defraud the government with respect to false refund claims and mail fraud and a consecutive sentence of 24 months for aggravated identity theft to be followed by three years of supervised release. Williams had pled guilty in August 2013. In addition to his prison sentence, a money judgment of $108,003 was entered against Williams. The Court also forfeited $23,160 seized from U.S. Bank in April 2011 and ordered Williams to pay restitution in the amount of $108,003.Assistant U.S. Attorney Yvonne Lamoureux, who prosecuted the case, noted that according to filings with the court, Williams participated in a conspiracy to obtain tax refunds by filing fraudulent income tax returns. Between April 2010 and January 2012, Williams and co-conspirators prepared and submitted to the IRS approximately 67 false tax returns claiming refunds of over $150,000.
Court documents also revealed that Williams and co-defendant Steve McComb, both prison inmates, obtained the names and social security numbers of individuals, many of whom were also inmates at correctional facilities to use in their scheme. Williams and McComb then provided that information to other co-conspirators to prepare and file false individual income tax returns. McComb authorized the co-conspirators to retain a portion of the money from the refunds, and directed them to wire or mail the remainder of the refunds to other co-conspirators or to hold the money for McComb. Recorded jail calls between the co-conspirators about the scheme included statements by McComb to another co-conspirator to make sure that Williams got his cut or portion of the proceeds.
Williams and co-conspirators Steve McComb, Helen Delores Maloney, and Michael Lee Sexton were indicted by a federal grand jury in February 2013 for conspiracy to defraud the government with respect to false claims, mail fraud, and aggravated identity theft. Their current status is as follows:
- McComb pled guilty to conspiracy to defraud the government with respect to claims, mail fraud, and aggravated identity theft in June 2013 and was sentenced to 9 years in prison on August 22, 2013;
- Maloney pled guilty to conspiracy to defraud the government with respect to claims and mail fraud in April 2013 and was sentenced to 28 months in prison on July 2, 2013; and
- Sexton has pled not guilty to the charges and is awaiting trial scheduled for December 9, 2013.
Ms. Loeffler commends the Internal Revenue Service, Criminal Investigation Division for conducting the investigation leading to the successful prosecution of Williams.
Fairbanks Brother and Sister sentenced in drug and money laundering conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a brother and sister from Fairbanks, Alaska, were sentenced in federal court in Fairbanks for their role in a Fairbanks drug and money laundering conspirary.
Nathan Jackson, 27, and his sister, Hailey Jelinek, 20, from Fairbanks, Alaska, were sentenced today by Chief U.S. District Court Judge Ralph R. Beistline. Jackson was sentenced to 123 months in prison and three years of supervised release. He had previously pleaded guilty to both counts of an indictment charging him with drug conspiracy and money laundering conspiracy. Jelinek was sentenced to six months in prison and three years of supervised release. She had previously pleaded guilty to count two of an indictment charging her with money laundering conspiracy.
Nathan Jackson and Hailey Jelinek are brother and sister, the children of their co-defendant, Cynthia "Cindy" Hawks. Jackson and his family, as well as his girlfriend, Fabienne Clerc, were all members of a conspiracy to sell heroin in Fairbanks and to conceal the profits and proceeds of the sale of heroin.
Jackson and his mother, Hawks, sold heroin in Fairbanks. Clerc accompanied Jackson on heroin sales in Fairbanks and conducted financial transactions with drug proceeds on Jackson’s behalf in order to
conceal the nature, location, source, or ownership of the drug proceeds. Hawks also conducted financial transactions with drug proceeds on Jackson’s behalf in order to conceal the nature, location, source, or ownership of the drug proceeds. Hawks also accompanied Jackson on trips to Arizona and California when he would purchase drugs to import to Fairbanks. Jelinek conducted financial transactions for Jackson to conceal the true source of the heroin proceeds.During the investigation, law enforcement officers seized over $350,000 in cash proceeds from Jackson and his co-conspirators, as well as a 1995 Chevrolet Tahoe, a 2001 Toyota 4-Runner, two 2003 Sea-Doo Personal Watercraft, and an accompanying trailer. As part of their sentence, Jackson and Jelinek forfeited any ownership interest they may have had in these items.
Judge Beistline found that a sentencing enhancement was appropriate for Jackson since he was the leader of the conspiracy.
In September 2013, Clerc and Hawks were sentenced for their roles in the conspiracy. Clerc received a sentence of 24 months in prison and three years of supervised release and Hawks received a sentence of 32 months in prison and three years of supervised release.
Ms. Loeffler commended the Internal Revenue Service Criminal Investigation Division, the Drug Enforcement Administration, the Alaska State Troopers, and the North Pole Police Department for the investigation leading to the successful prosecutions of Jackson, Jelinek, Hawks, and Clerc.Anchorage Man sentenced to 180 months in prison for conspiracy to ditribute methamphetamine and gun chargesRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court after pleading guilty to conspiracy to distribute methamphetamine and possessing a firearm in furtherance of a drug crime.
Jason Gerald Woods, 36, of Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon Gleason to 180 months in prison, to be followed by a five year term of supervised release. Woods previously pled guilty to conspiring to distribute methamphetamine with two other individuals and to possessing a gun in furtherance of his drug trafficking activities.
According to Assistant U.S. Attorney Stephanie Courter, who prosecuted the case, Woods worked with two other individuals to sell more than forty grams of actual methamphetamine over an estimated six month period in 2012. The conspiracy culminated in a deal where the conspirators attempted to trade methamphetamine for fully automatic weapons. During that deal, Woods was armed with a loaded 9mm handgun. In addition to the drug trafficking he engaged in as part of the conspiracy, Woods also sold drugs on his own, selling approximately 146 grams of methamphetamine to an undercover law enforcement officer.
In sentencing Woods, Judge Gleason noted the seriousness of the offense and the need to protect the community from those who engage in the selling of this destructive drug.
Judge Gleason previously sentenced Woods’ co-defendants, Michael Dean Miller and Boaphan Sengchareun, to 120 and 144 months in prison, respectively, for their roles in the conspiracy.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigation of this case in the successful prosecution of Woods.
Petersburg Man arraigned on distribution, receipt, and Possession of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Petersburg man was arraigned today on a criminal complaint filed in the U.S. District Court in Juneau, Alaska, for the distribution, receipt, and possession of child pornography.
Tye Leif Petersen, 45, of Petersburg, Alaska, was arraigned today before U. S. Magistrate Judge Leslie C. Longenbaugh, in a three-count criminal complaint charging a count each of distribution, receipt, and possession of child pornography. Petersen was ordered detained pending trial.
Assistant U. S. Attorney Jack S. Schmidt, who is prosecuting the case, indicated that the law provides those convicted of distribution or receipt of child pornography, a mandatory minimum sentence of five years and a potential maximum sentence of 20 years in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum sentence of 10 years, however, the maximum sentence increases to 20 years and $250,000 fine, if the images depict children under the age of 12 years. 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 charges against Petersen are the result of an investigation conducted by the Federal Bureau of Investigation in cooperation with the Petersburg Police Department. If the public has any further
information, questions, or concerns about the activities of Petersen, please contact the Petersburg Police Department at (907) 772-3838.A criminal complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
International Wildlife Investigation results in conviction of Haines Big Game Guide for illegal take, false labeling and illegal importation of wildlifeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Haines, Alaska, resident was sentenced in federal court in Juneau on five felony Lacey Act counts involving illegal take of wildlife, false labeling, and illegal importation of wildlife.
Ronald L. Martin, 72, of Haines, Alaska, a big game guide in Haines for over 30 years, pled guilty and was sentenced yesterday before U.S. District Court Judge Timothy M. Burgess, after admitting to multiple illegal hunts, falsification of numerous documents related to those illegal hunts and the importation of illegal wildlife from Canada into the United States. Martin was sentenced to pay a $40,000 fine and was placed on probation for four years. During the term of probation, Martin cannot hunt in the United States and is banned from hunting anywhere in the world for two years. Additionally, the plea agreement bars Martin from providing any guiding related services as part of his federal probation conditions. Martin was also ordered to forfeit all illegal wildlife seized in the investigation and a 27’ enclosed trailer used in illegally importing wildlife into the U.S.
Prior to the defendant’s plea in federal court, Martin had pled and was sentenced in Alaska State court on one count of guiding clients for brown bear over bait, and one count of guiding clients over an unregistered bear bait site. As part of that State conviction, Martin was fined $40,000 with $30,000 suspended, and forfeited the following items to the State of Alaska: a PA-18 Piper Supercub airplane, a F250 Ford pickup truck, a Honda ATV – Foreman, and a Kimber .338 Caliber rifle with a Leopold Scope. Martin’s hunting license was also revoked until May 2016 and he is prohibited from guiding, outfitting, or transporting hunters, to include not accompanying or assisting hunters in the field. Martin is further prohibited from acting as consultant, expediting, booking, or renting hunting equipment, and cannot apply for a hunting license until 2018. Martin was also required to surrender his guide license for life.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the federal case, the case arose from a joint United States-Canadian wildlife investigation called “Operation Bruin.” The investigation documented 10 illegal brown bear hunts, three illegal black bear hunts, and four illegal mountain goat hunts totaling a value of approximately $189,000. The violations which occurred during the hunts involved Martin allowing his Canadian and U.S. clients to take brown bears over bait, hunting without the required licenses or tags, and the failure to have a licensed guide with the non-resident alien clients during guided hunts.
The investigation revealed that Martin’s clients and Martin would file false documents to conceal the illegal nature of the guided hunts and would then smuggle the wildlife from the U.S. to Canada, all of which violated the Lacey Act and Canada’s Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (WAPPRIITA). The investigation showed the violations occurred between May 2002 through November 2011, in and around the Haines, Alaska area.
The investigation also documented that Martin illegally imported Dall sheep from Yukon, Canada, into the U.S. during the fall of 2011 by failing to obtain a Yukon Wildlife Export permit and illegally smuggled the sheep horns from Canada into the U.S. by concealing the horns and meat in his trailer.
Recently in Operation Bruin, Haines big game guide John Katzeek and three of his Canadian clients were indicted in U.S. District Court for the District of Alaska. The four individuals were charged with Lacey Act, conspiracy and smuggling violations related to the illegal take, commercialization and smuggling of Alaska big game animals.
Starting in November 2012, Environment Canada and Canadian Crown prosecutors in Alberta, and Yukon Territory, Canada, charged approximately 17 subjects with 55 violations under the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act. These charges pertained to the illegal guided hunts noted previously, and the illegal import of unlawful wildlife from the U.S. into Canada.On March 22, 2013, Lyle Whitmarsh, a client of Martin, was convicted in Alberta provincial court of one count of illegally possessing and importing a brown bear into Canada. Whitmarsh was sentenced to pay a penalty of $4,000 for violating section 6(1) of the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act. In addition to the $4,000 penalty, Lyle Whitmarsh is prohibited for two years of importing wildlife into Canada and is also required to forfeit the brown bear hide and skull seized during the investigation. $3,600 of the penalty will go into the Environmental Damages Fund (EDF).
On October 16, 2013, John (Jack) Whitmarsh, brother of Lyle and a client of Martin’s, was also convicted in Canada of two counts of illegally possessing and importing into Canada a brown bear. John Whitmarsh was sentenced to pay a penalty of $15,000 for violating section 6(1) and 8(a) of the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act. In addition to the $15,000 penalty, John Whitmarsh is prohibited for two years of importing wildlife into Canada and traveling outside of Alberta and Canada for the purposes of hunting. He is also required to forfeit the brown bear hide and skull seized during the investigation. $13,500 of the penalty will go into the Environmental Damages Fund (EDF).
Some trial dates have been set for the remaining 15 Canadian defendants charged under Canadian law.
Stanley Pruszenski, the U.S. Fish & Wildlife Service Special Agent in Charge of the Alaska Region, congratulates all the agencies involved in the successful investigation and prosecution of the large scale abuses of U.S. and international wildlife law in this case. The Fish and Wildlife Service is committed to protecting America's wildlife resources that are at risk from illegal take, commercialization, and smuggling. This case is an excellent example of how these types of investigations and prosecutions can only be successfully accomplished with cooperation and close working relationships between our U.S. and international partners.Ms. Loeffler commends the U.S. Fish and Wildlife Service, Alaska Wildlife Troopers; Environment Canada Wildlife Enforcement Directorate; Yukon Conservation Officer Service; Alberta Fish and Wildlife; Parks Canada; British Columbia Conservation Officer Service and the Public Prosecution Service of Canada for their investigative work in the prosecution of Martin.
Anchorage Heroin Ring sentenced in Federal CourtRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Jared Thomas Bowers and Christopher Thomas Mejia, both residents of Anchorage, have been sentenced in federal court in Anchorage for their convictions of the crimes of drug trafficking conspiracy, attempted possession of heroin with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. A federal jury of seven men and five women returned guilty verdicts for Bowers and Mejia on July 29, 2013.
Last week, Chief U.S. District Court Judge Ralph R. Beistline imposed a sentence of 144 months on 23 year-old Bowers. Today, Judge Beistline sentenced 24 year-old Mejia to 181 months in prison. Judge Beisline sentenced Mejia to an additional 6 months imprisonment for violation of supervised release in a previous federal case for his 2007 conviction of felon in possession of a firearm.
According to information presented to the court by Special Assistant U.S. Attorney Erin White Bradley, who prosecuted the case, the evidence presented at trial established that Mejia and Bowers conspired to distribute approximately 97 grams of heroin. They supplied their co-defendant, Rhadames Marmolejos, Jr., with heroin on eight separate occasions, which Marmolejos then sold to an undercover agent working for the Drug Enforcement Administration. Trial testimony established that Bowers provided Marmolejos with heroin for seven of the drug deals. Mejia provided Marmolejos with heroin for one of the drug deals. On February 21, 2013, the United States Postal Service intercepted a package containing over one kilogram of heroin. Investigation revealed that Mejia intended to purchase one pound of that heroin for approximately $30,000. Law enforcement arrested Mejia and Bowers as the two waited in a vehicle to purchase the heroin. The two were in possession of approximately $27,000 in United States currency and a loaded .45 caliber semi-automatic pistol.
Prior to imposing sentence, Judge Beistline noted Bowers’ significant involvement in this drug trafficking conspiracy, as well as his management and supervision of co-defendant Marmolejos. In arriving at a sentence of 144 months, Judge Beistline emphasized the serious nature of the crime, as well as a need to deter further criminal activity. In sentencing Mejia, Judge Beistline noted a need to protect the community, in light of Mejia’s lengthy criminal history. Earlier this month, Marmolejos received a sentence of 84 months, after pleading guilty to the crime of drug trafficking conspiracy.
Ms. Loeffler commends the Drug Enforcement Administration and the United States Postal Inspection Service for the investigation leading to the convictions 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.
Juneau Man indicted by Federal Grand Jury for retaliation against a witnessRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Juneau man was indicted by a federal grand jury in Anchorage, Alaska, for retaliation against a witness.
Mason T. Baker, 21, of Juneau, Alaska, was arraigned yesterday before U.S. Magistrate Judge Leslie C. Longenbaugh, in a one-count indictment on the charge of retaliating against a witness. Baker pled not guilty and was ordered detained pending trial.
According to the indictment, on July 3, 2013, Baker assaulted Individual A causing him/her bodily injury, in order to retaliate against Individual A for providing testimony in the trial of United States v. Richard Corum.
Assistant U.S. Attorney Jack S. Schmidt, who is prosecuting this case, indicated that the law provides for a maximum total sentence of 30 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Drug Enforcement Administration and the Alaska State Troopers conducted the investigation leading to the indictment in this case
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Mark J. Avery indicted for $52 million dollar wire fraud and money laundering schemeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a former Anchorage resident was charged by a federal grand jury with 5 counts of wire fraud and 9 counts of money laundering.
Mark J. Avery, 54, of San Francisco, California, has been indicted by a federal grand jury in Anchorage alleging he defrauded May Wong Smith and May Smith Trust, a trust of which he was an appointed trustee, of over $52 million dollars for personal gain.
The Ninth Circuit Court of Appeals reversed Avery’s conviction on similar charges for honest services wire fraud earlier this year after the Supreme Court ruled that the theory of honest services fraud under which Avery was previously convicted was held unconstitutional. This indictment alleges that Avery, a trustee and lawyer to the May Smith Trust, engaged in a scheme to defraud the trust and May Wong Smith. Avery held those positions from early 2002 and received yearly compensation in the amount of $600,000 in trustee fees for his role as trustee and fiduciary to these trusts. Avery was also owner/operator of Avery and Associates, L.L.C., Security Aviation, Inc., and Regional Protective Services, L.L.C., located at 3230 C Street, Anchorage, Alaska. Avery’s companies, many of which were created after receipt of trust funds, were engaged in air charter services, aeromedical evacuation, legal services, development of real property, and court imposed electronic monitoring.
According to the indictment, May Wong Smith was born in China in 1922 and shortly after World War II; May Wong Smith married Stanley Smith, a citizen of Australia. Stanley Smith amassed millions of dollars from post-war business investments and became a quiet benefactor of various charitable organizations. Stanley Smith died in 1968 and May Wong Smith never remarried.
The May Smith Trust, the trust Avery is charged with defrauding, was established on October 10, 1982, to provide for May Wong Smiths support and maintenance during her life and certain charitable purposes after her death. May Wong Smith was a trustee of her own trust since inception.
In the early 1980's, May Wong Smith began to show signs of dementia. From that time, her mental condition began to deteriorate to the point where she was not capable of living without assisted care. Due to her mental condition she had full time live-in care from at least 1991 until her death in Nassau, Bahamas on July 15, 2006. In spite of her compromised mental capacity, she remained a trustee until her death in July 2006.
The Indictment alleges that Avery engaged in a scheme that involved pledged assets of the May Smith Trust as collateral for a $50 million dollar loan made to Avery.
Avery is charged with defrauding May Wong Smith and the May Smith Trust by using the $50 million loan funds for his personal use with no written business plan, and, among other things, no controls over how the money was to be spent or repaid. Avery is also charged with laundering the proceeds of the fraud funds obtained from the pledging of assets from the May Smith Trust not only to create and purchase businesses, but to pay off two home mortgages, personal debt, and to purchase property for his personal benefit. Some of the property included, real property, two World War II era fighters, a P-51D Mustang, and an F4U-4 Corsair. Other purchases included, other antique aircraft, a 47' Carver Yacht, a 37' heavy-duty patrol boat, all-terrain vehicles, motor homes and snow machines. Avery is charged with titling these assets either in his business or in his own name. The indictment further alleges that none of the assets or scheme resulted in any benefit to the May Smith Trust or May Wong Smith.
The Federal Bureau of Investigation, and the Internal Revenue Service, Criminal Investigation Division 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.
Illegal Alien sentenced to 65 years in prison for unlawful reentry, identity theft and firearms possessionRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Javier Martinez, a citizen of the Dominican Republic, was sentenced to 65 years in federal prison.
Javier Martinez, 48, was convicted by a jury in June 2013 of twelve criminal offenses, including one count of reentry after deportation, five counts of making false claims of United States citizenship, five counts of aggravated identity theft, and one count of possession of a firearm by an illegal alien.
According to Assistant U.S. Attorney Thomas C. Bradley, who prosecuted the case, Martinez was deported from Miami to the Dominican Republic in 1992, but later unlawfully returned to the United States. Evidence at trial matched the defendant’s fingerprints to those of the person removed in 1992. Martinez was also convicted of illegally using the name Victor Rodriguez Flores, a resident of Puerto Rico, to apply for an Alaska identification card and to obtain employment at Anchorage hotels including: the Sheraton; the Embassy Suites; the Quality Inn; and the Millennium Hotel. Evidence presented at trial showed that Martinez falsely claimed to be a U.S. citizen on application forms filed with the Alaska DMV and each of the hotels where he worked.
Martinez was also convicted of possession of a firearm, a Ruger .45 caliber semiautomatic pistol. Illegal aliens are prohibited from possessing firearms under federal law, as are convicted felons, drug addicts, and fugitives from justice. Witnesses testified at trial that Martinez brought the pistol to the Millennium Hotel on October 29, 2011, after having been fired from his job at the hotel, and used it to shoot Kerry Fadely, his former supervisor. The firearm was recovered at the scene along with a letter from Martinez explaining the reasons he was unhappy working at the hotel. The letter directed the Millennium Hotel to send his final paycheck to the Anchorage jail.
The defendant testified at the June trial, claiming that he was never actually deported from the United States in 1992, because after being placed on the flight by immigration officers, he went out the back of the plane and into the terminal. Two special agents from Homeland Security Investigations testified at trial that Martinez had admitted to them that he was deported in 1992. They also testified that when they asked Martinez about the firearm he left at the Millennium Hotel, he stated that it was easier to buy a gun in Anchorage than to buy a pack of cigarettes or a six pack of beer.
Chief U.S District Court Judge Ralph R. Beistline described the killing of Kerry Fadely as a “cowardly act” in imposing the maximum sentence available under the law.
Judge Beistline described Martinez as a person who cannot be deterred and cannot be rehabilitated, who had no “socially redeeming values” and was a “dangerous man” from whom the public needed protection. The judge also addressed Martinez’ extensive criminal record, which includes drug dealing and repeated assaults against women.
Martinez still faces first degree murder and other charges in Alaska State court in connection with the shooting.
Ms. Loeffler commends the Immigration and Customs Enforcement’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the officers of the Anchorage Police Department for the investigation leading to the conviction of Javier Martinez.
Anchorage Drug Dealer sentenced in Federal Court to 84 months in prisonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a resident of Anchorage has been sentenced in federal court for his conviction of drug trafficking conspiracy.
Rhadames Marmolejos, Jr., 21, of Anchorage, Alaska, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline to 84 months in prison.
According to information presented to the court by Special Assistant U.S. Attorney Erin White Bradley, who prosecuted the case, Marmolejos sold heroin on eight separate occasions to an undercover agent working for the DEA. Marmolejos obtained the drugs from his co-defendants, Christopher Thomas Mejia and Jared Thomas Bowers. The total amount of heroin involved in this drug trafficking conspiracy amounted to over 500 grams. At the time of his arrest, law enforcement discovered a Taurus Pro DS semiautomatic pistol, a Remington 870 Tactical 12-gauge shotgun, two drug scales with heroin residue, and assorted ammunition in Marmolejos’ apartment.
Prior to imposing sentence, Judge Beistline noted both Marmolejos’ youth and his assaultive criminal history involving firearms. In prior state cases, Marmolejos assaulted his victims while using both firearms and death threats. Marmolejos pled guilty to his offense, while his co-defendants were convicted at trial in August of this year. Mejia and Bowers will be sentenced later this month.
Ms. Loeffler commends the Drug Enforcement Administration and the United States Postal Inspection Service for the investigation leading to the convictions 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.