District of Alaska
Press releases recorded for this federal judicial district.
Michigan Man sentenced to over 10 years in prison for distributing Child PornographyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Michigan man was sentenced in federal court in Anchorage for distributing child pornography.
Mark Harry Smith, 41, from Saginaw, Michigan, was sentenced Friday, September 27, 2013, by U.S. District Court Judge Sharron Gleason, to 126 months in prison.
According to Assistant U.S. Attorney Kyle G. French, Smith possessed and exchanged via email accounts hundreds of videos and images depicting children being sexually abused, including infants and toddlers. Smith’s collection reflected the international scope of child sex abuse that feeds the demand created by Smith and others who collect and trade child pornography – identified victims were abused in Switzerland, Germany, France, Belgium, the United Kingdom, the Netherlands, Italy, the Republic of Moldova, the Ukraine, Canada, Denmark, Sweden, Australia, Brazil, Paraguay, Russia, Ireland, Norway, and the United States (28 states).
At Smith’s sentencing, Judge Gleason noted the seriousness of the offenses, the ongoing harm to the victimized children, and the need to protect the public from this kind of conduct. After serving his 126 months in prison, Judge Gleason ordered Smith to serve 15 years of supervised release, perform 600 hours of community service, and be required to comply with special conditions, including participating in sex offender assessment and treatment, and registering as a sex offender.
U.S. Attorney Karen Loeffler stated that “The possession, receipt, transportation, and distribution of child pornography perpetuates the harm to victims depicted in the images, validates and normalizes the sexual exploitation of children, and fuels a market, thereby leading to further production of images. “Smith’s participation in email child pornography groups, for example, involves membership and informal communications which inherently validate, normalize, and encourage child sex sexual abuse by other individuals.”
AUSA Kyle French added that “Despite tremendous effort expended across numerous fronts, in the age of the Internet, we are losing the war to protect children from sexual exploitation. The volume and market for child pornography continues to exponentially grow while its victims are becoming younger and more sadistically abused. It is becoming common to discover child pornography collections which include videos and images of infants and toddlers being sexually abused.”
Every Internet user can help combat the problem by choosing to report child pornography related links, emails, media, and other materials. Most important, by simply taking the time to report, you may rescue a child from ongoing sexual abuse. If you encounter child pornography online, you can report its location to your Internet service provider, local or state law enforcement, the FBI or Department of Homeland Security office, or online via the National Center for Missing and Exploited Children’s (NCMEC) website at cybertipline.com. NCMEC will forward your report to the appropriate investigative agency for follow-up.
This case was initiated as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse which was launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood combines federal, state and local resources to better identify, apprehend and prosecute individuals, who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Ms. Loeffler commends Immigration and Customs Enforcement’s Homeland Security Investigations for the investigation of this case.
Fairbanks Women sentenced in drug and money laundering conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two women from Fairbanks, Alaska, were sentenced in federal court in Fairbanks for their role in a Fairbanks drug and money laundering conspiracy.
Fabienne Clerc, 22, and Cynthia “Cindy” Hawks, 45, from Fairbanks, Alaska, were sentenced today by Chief U.S. District Court Judge Ralph R. Beistline. Clerc was sentenced to 24 months in prison and 3 years of supervised release. Clerc had previously pled guilty to count two of an indictment charging her with money laundering conspiracy. Hawks received a sentence of 32 months in prison and 3 years of supervised release. Hawks had previously pled guilty to counts one and two in an indictment charging her with drug and money laundering conspiracy.
Clerc is the girlfriend of her co-defendant, Nathan Jackson, and Hawks is Nathan Jackson’s mother.
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 conducted 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.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, 2001 Toyota 4-Runner, two 2003 Sea-Doo Personal Watercraft, and an accompanying trailer. As part of their sentence, Clerc and Hawks forfeited any ownership interest they may have had in these items.
Nathan Jackson has pled guilty in this drug and money laundering conspiracy and is scheduled to be sentenced in November 2013, for his role in the conspiracy. Hailey Jelinek, Jackson’s sister, has pled guilty in this money laundering conspiracy and is scheduled to be sentenced in October 2013, for her role in the conspiracy.
Ms. Loeffler commended the Internal Revenue Service Criminal Investigation Division, the Drug Enforcement Administration, and the Alaska State Troopers for the investigation leading to the successful prosecutions of Clerc and Hawks.
Anchorage Man sentenced to 92 months in prison for drug 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.
Dalon Johnson, a/k/a, “Day Day,” 36, from Anchorage, Alaska, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline. Johnson received a sentence of 92 months in prison, and 5 years of supervised release. Johnson had previously pleaded guilty to count one of an indictment charging him with drug conspiracy.
Johnson was a member of a drug trafficking conspiracy where 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” 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 and Johnson held himself out as the group’s “manager.”
Johnson has a prior federal drug trafficking conviction, and prior to imposing a sentence, Judge Beistline questioned the defendant about his chances for rehabilitation. He was asked this since he had previously been sentenced for a similar crime and after he was released from prison, he immediately returned to making the same lifestyle choices. Judge Beistline remarked that drug addiction damages families in our communities, and that Johnson was “passing poison to people for personal gain.”
Johnson was a member of a wide ranging conspiracy along with 13 co-conspirators located in Anchorage and Fairbanks. Eight defendants have already been sentenced. Donnell Johnson, Antonio Fleming, Tevoris Carter, Emma Shine, and Terrance Fleming have pled 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 Johnson.
Anchorage Man sentenced to 144 months in prison for conspiracy to distribute methamphetamineRead the Press Release
Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court to 144 months in prison after pleading guilty to conspiracy to distribute methamphetamine.
Boaphan Sengchareun, a/k/a “Kun,” 36, of Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon Gleason to 144 months in prison, to be followed by a five year term of supervised release. Sengchareun previously pled guilty to conspiracy to distribute methamphetamine.
According to Assistant U.S. Attorney Stephanie Courter, who prosecuted the case, Sengchareun 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. Prior to joining the conspiracy, Sengchareun also sold drugs on his own, selling nearly 14 grams of methamphetamine in three separate transactions in 2011.
In sentencing Sengchareun, Judge Gleason noted that methamphetamine is an exceedingly debilitating drug that harms too many people in our community. Judge Gleason also noted the importance of deterrence in these cases, as well as the need to protect the public from people who sell dangerous drugs like methamphetamine.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation for their investigation of this case.
Registered Nurse and Disbarred Attorney admit stealing over Two Million Dollars from Elderly Woman's EstateRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that registered nurse, Brian Ben-Israel, and disbarred California attorney Philip Eric Myers, have pled guilty to mail fraud and wire fraud charges.
Ben-Israel, 53, formerly of Anchorage, Alaska, pled guilty to mail fraud, wire fraud and filing a false tax return on September 16, 2013. Philip Eric Myers, 61, of Santa Barbara, California, pled guilty to mail fraud and wire fraud charges on September 20, 2013. Both Myers and Ben-Israel admitted to Chief U.S District Court Judge Ralph R. Beistline that they devised a scheme to obtain in excess of $2 million dollars between May 2007 and August 2009 from the trusts of Juanita Gielarowski, now deceased.
According to court documents, Ben-Israel was a registered nurse residing in Anchorage and working at Meridian Psychiatric Consulting Group. Myers was an attorney licensed in the State of California and was versed in trust and estate matters. In 2004, Ben-Israel was a business partner and friend of Myers.Ben-Israel met and befriended Ms. Juanita Gielarowski and her daughter, Linda Stowers, who were both patients of Meridian Psychiatric Consulting Group. Ben-Israel became a health care provider and “financial advisor” to both. Ben-Israel introduced Myers to Stowers and Gielarowski.
Ms. Gielarowski was the trustee of the Juanita V. Gielarowski Revocable Trust. This trust was established for the purpose of conserving and using the assets for the benefit and care of Ms. Gielarowski. In May 2007, Ms. Gielarowski’s medical condition had severely deteriorated. Knowing of Ms. Gielarowski’s deteriorating condition, Ben-Israel worked with Myers to obtain control over assets of the Juanita V. Gielarowski Revocable Trust by creating a new trust. The effect of this action was to give Ben-Israel access to and control of the assets of the Juanita V. Gielarowski Revocable Trust. Subsequently, Ben-Israel and Myers diverted over two million dollars to the personal benefit of Ben-Israel and Myers.
The actions of Ben-Israel and Myers completely depleted the Juanita Gielarowski estate by August 2009, and caused Ms. Gielarowski to be moved from her long established home to a state funded elder care facility where she died in July 2010.
Ben-Israel is scheduled to be sentenced on December 19, 2013, and Myers is scheduled to be sentenced on January 17, 2014.
The United States is seeking forfeiture and restitution against Ben-Israel; Myers has agreed to forfeiture and restitution in the amount of $1,081,000.
Ms. Loeffler commends the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division 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.Anchorage Physician indicted for wire fraudRead the Press Release
Anchorage, Alaska - Acting U.S. Attorney Kevin Feldis announced today that an Anchorage physician was indicted by a federal grand jury in Anchorage, Alaska, on wire fraud charges.
Dr. Michael Brandner, 64, of Anchorage, Alaska, was charged with seven counts of wire fraud for engaging in a scheme to defraud his wife and the Alaska State Courts. The indictment alleges that Brandner transferred over $4,000,000 out of the United States to Panama in 2007 and 2008 as part of this scheme. The indictment charges that Brandner provided false documents to the court to support his claims that the money had been loaned to a foreign entity and was unavailable to be disbursed as part of divorce proceedings. In 2011, Brandner secretly returned the money to the United States, then totaling $4,656,061.85, in the name of a shell corporation. This money was seized in Irvine, California, and is the subject of civil forfeiture proceedings in federal court in Los Angeles.
Assistant U.S. Attorney Bryan Schroder, who presented the case to the grand jury, indicated that Brandner faces a maximum sentence of 20 years in prison, and a $250,000 fine. The indictment also includes a criminal forfeiture provision. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon a number of factors, including the seriousness of the offense and the prior criminal history of the defendant.
The Internal Revenue Service, Criminal Investigations Division, and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation leading to the indictment in this case. The U.S. Attorney's Office for the District of Alaska is partnering with the Department of Justice Tax Division in the prosecution of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Anchorage Felon sentenced to 150 months in prison for gun and drug possession and assaulting a Federal AgentRead the Press Release
Anchorage, Alaska -Acting U.S. Attorney Kevin Feldis announced today that an Anchorage man was sentenced in an Anchorage federal court after pleading guilty to multiple counts of weapons possession, one count of possession of cocaine, and one count of assaulting a federal law enforcement officer.
Lamar Joseph Facine, 30, of Anchorage, Alaska, was sentenced yesterday by Chief U.S. District Court Judge Ralph R. Beistline to 150 months in prison, to be followed by a three year term of supervised release. Facine, already a convicted felon, previously pled guilty to two counts of being a felon in possession of a firearm as well as one count of cocaine possession and one count of assaulting a federal agent.
According to Assistant U.S. Attorney Stephanie Courter, who prosecuted the case, Facine admitted to possessing three separate firearms – two handguns and a shotgun – after having previously been convicted of two counts of felony drug distribution. He also possessed a bag containing powder cocaine, additional rounds of ammunition, and other items of drug paraphernalia. When Facine was confronted by law enforcement in October 2012, he immediately began to fight the officers, ultimately striking one agent in the face.
In announcing the sentence, Judge Beistline noted that Facine was clearly dangerous and had earned the punishment ordered by the court. Judge Beistline also noted that Facine’s actions demonstrated a lack of respect for law enforcement and for those in positions of authority; therefore, it was important to fashion a sentence that focused on deterrence and protection of the public.
Mr. Feldis commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives as well as the United States Probation and Pretrial Services Office for their investigation of this case.
Anchorage Man sentenced to 120 months in prison for conspiracy to distribute methamphetamine and possession of heroin in prisonRead the Press Release
Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court to 120 months in prison after pleading guilty to conspiracy to distribute methamphetamine and possessing heroin while in prison.
Michael Dean Miller, 31, of Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon Gleason to 120 months in prison, to be followed by a five year term of supervised release. Miller previously pled guilty to conspiracy to distribute methamphetamine.
Judge Gleason also sentenced Miller to a concurrent 18 month prison term for his possession of contraband in prison. According to court documents, Miller was found in possession of heroin after being arrested in April 2013.
According to Assistant U.S. Attorney Stephanie Courter, who prosecuted the case, Miller 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. Additionally, Miller sold drugs on his own, a fact that he admitted to as part of his guilty plea.
In sentencing Miller, Judge Gleason noted that selling methamphetamine is a serious offense and that an individual who sells methamphetamine is harming many people in our community. Judge Gleason also noted that deterrence was important in these cases, as was the need to protect the public from people who sell dangerous drugs like methamphetamine.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigation of this case.Fairbanks Man sentenced to 87 months in prison for drug trafficking conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a man from Fairbanks, Alaska, was sentenced in federal court in Anchorage for his role in an Anchorage and Fairbanks drug conspiracy.
Joshua Mustovich, 31, from Fairbanks, Alaska, was sentenced on September 6, 2013, by U.S. District Court Chief Judge Ralph R. Beistline. Mustovich received a sentence of 87 months in prison and 5 years of supervised release. Mustovich had previously pled guilty to count one of an indictment charging him with drug conspiracy.
According to Assistant U.S. Attorney’s Frank Russo and Kelly Cavanaugh, who prosecuted the case, in January 2012, Mustovich provided a duffle bag with $250,000 in cash, that he had received from Donnell Johnson, to a co-conspirator in Fairbanks, Alaska. That co-conspirator then drove to Anchorage and met up with Johnson, who exchanged the bag with money for another duffle bag full of 12 kilograms of cocaine. Mustovich was set to receive the 12 kilograms of cocaine in Fairbanks, but it was intercepted by law enforcement before the cocaine arrived in Fairbanks. Law enforcement then contacted and arrested Mustovich at the area in Fairbanks where he was scheduled to pick up the delivery of cocaine.
Mustovich was a member of a drug trafficking conspiracy where some of 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” 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.
Prior to imposing the sentence, Judge Beistline informed the defendant that the sentence was designed to punish him for engaging in such a crime and to impart to him respect for the law.
Mustovich was a member of a wide ranging conspiracy along with 13 co-conspirators located in Anchorage and Fairbanks. Donnell Johnson, Antonio Fleming, Dalon Johnson, Tevoris Carter, Emma Shine, and Terrance Fleming have pled 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 Mustovich.
Anchorage Men indicted in Federal Drug Trafficking ConspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two defendants were arraigned this week in Anchorage on charges involving a drug trafficking conspiracy and possession of methamphetamine with intent to distribute. Albert Diaz Gumataotao, III, 24, of Anchorage, Alaska, and David Alan Gonzales, 54, of Anchorage, Alaska, are charged in the two-count indictment. According to information presented to the court, Gumataotao and Gonzales allegedly possessed 52 grams of pure methamphetamine on March 28, 2013.Special Assistant U.S. Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of life in prison, a fine of ten million dollars, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Ms. Loeffler commends the U.S. Postal Inspection Service and the Anchorage Police Department for the investigation of this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Four Indicted for Drug Conspiracy, Kidnapping involving sexual torture, and using firearms in furtherance of these crimesRead the Press Release
ANCHORAGE, AK – United States Attorney Karen L. Loeffler announced today, August 30, 2013, that four Anchorage men have been indicted for drug conspiracy, kidnapping, and using firearms in furtherance of these crimes. The men are: Stuart T. Seugasala, a/k/a "Tone", age 38; Phosavan Khamnivong, a/k/a "P.K.", age 33, Timothy Miller, a/k/a "Lil' Tone", age 25, and Anaoi Sialofi, a/k/a "A-loc", age 25. The indictment also charges Stacy F. Laulu, age 31, of Anchorage, with violating the Health Insurance Portability and Accountability Act of 1996 (HIPAA) by disclosing protected health information to another for malicious harm.
The indictment alleges that Seugasala, Khamnivong, Miller, and Sialofi participated in a conspiracy to distribute more than 500 grams of methamphetamine, as well as heroin, cocaine, and crack cocaine. The indictment goes on to allege that Seugasala organized "home invasions" (which he called "missions") of other drug trafffickers in order to obtain controlled substances for distribution and/or drug proceeds. According to the indictment, Miller and Sialofi would sometimes accompany Seugasala on these "missions".
The indictment describes one such alleged mission that occurred in March 2013. In essence, it describes how Seugasala directed Miller to prepare for a “mission” against “Victim A” in retribution for Victim A's failure to pay a drug debt to Seugasala and Khamnivong. It further alleges that Seugasala met with Victims A and B and escorted them to Miller's apartment. Seugasala, Khamnivong, Miller, and Sialofi held Victim A and “Victim B” at gunpoint, bound them with duct tape, and proceeded to beat them. It is further alleged that Seugasala sexually assaulted Victim A with a hot curling iron, causing serious physical injury to Victim A that required hospitalization. During the assault, the indictment alleges that Seugasala directed Miller to take a video of part of the sexual assault on Victim A using Miller's cellular telephone, so that it could be shown to others who owed them drug debts. After the assault on Victim A, the indictment alleges that Seugasala also sexually assaulted Victim B with the curling iron.
Days later, the indictment alleges that Seugasala shot another person, identified as “Victim C”. Seugasala then contacted an employee of an Anchorage medical center, later identified as Stacy Laulu, for information on Victims A and C. The indictment alleges that Laulu provided confidential patient information about the injuries and treatments of Victims A and C to Seugasala.
These actions form the basis for two charges of violations of HIPAA against Ms. Laulu. The indictment also demands criminal forfeiture of property, including two Cadillacs, an Infiniti, and five firearms.Seugasala and Miller are in federal custody on other charges, and there arraignments will be set by the court. Sialofi was arrested yesterday, and will be arraigned today. Khamnivong is not yet in custody. Information on his whereabouts can be provided to DEA (907-271-5033) or FBI (907-276-4441). A photo of Khamnivong is attached.
U.S. Attorney Karen Loeffler stated, “Unfortunately, violence often goes hand-in- hand with drug trafficking. We are dedicated to working with our law enforcement partners to bring the most violent drug traffickers to justice, so they can neither harm the community nor potential victims of their brutal attacks.”
The Drug Enforcement Administration, the Federal Bureau of Investigation’s Safe Streets Task Force, the Anchorage Police Department’s Special Assignment, Sex Crimes, and Vice Units, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives participated in the investigation that led to the indictments. These agencies were assisted by the Valdez Police Department, the Alaska State Troopers, and the United States Postal Inspection Service. The case is being prosecuted by the United States Attorney’s Office, in coordination with the Anchorage District Attorney’s Office.
The maximum penalties for the drug conspiracy charge include a minimum of 10 years in prison and maximum of life in prison, a $10 million fine, and at least five years of supervised release. The kidnapping charges carry potential life sentences, and the firearms charges carry mandatory minimum consecutive sentences of five and 25 years, respectively. Finally, the HIPAA violation carries a maximum sentence of 10 years in prison, a $250,000 fine, and three years of supervised release.The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Anchorage Man sentenced to 37 months in prison for running investment fraud schemeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court today for running an investment fraud scheme which targeted small investors in Anchorage in 2011 and 2012.
Floyd LeRoy Lee, Jr., 32, of Anchorage, Alaska, was sentenced by U.S. District Judge Sharon Gleason to 37 months in prison following his conviction for one count of securities fraud, and one count of mail fraud.
According to Assistant U.S. Attorney Joseph Bottini, who prosecuted the case, Lee set up an investment company – Platinum Investments, Inc. – in Anchorage in October 2010. Lee, assisted by his co-defendant in the case, Mary Elizabeth Transki, then solicited investors with the promise of high-yield returns in a brief amount of time. Between September 2011, and March 2012, Lee and Transki took in approximately $63,000 in investment funds. After receiving the money, Lee and Transki did not invest it as promised and instead used the funds for their own personal use and benefit.
Lee and Transki were indicted by a federal grand jury in April 2013 for one count each of securities fraud related to the investment fraud scheme. Lee was also indicted for one count of mail fraud. Transki and Lee each pled guilty in June of this year to the securities fraud charge, and Lee additionally pled guilty to the mail fraud count. On August 19, 2013, Transki was sentenced to 21 months in prison for her role in the fraud scheme.
In sentencing Lee to 37 months in prison, Judge Gleason noted that Lee and Transki had preyed on small investors who are the type of individuals least able to absorb the loss of investment funds.
Ms. Loeffler commends the Federal Bureau of Investigation for their investigation of this case.
Anchorage Felon sentenced to 105 months in prison for drug charges and illegal possession of 17 firearmsRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced yesterday in federal court to 105 months in prison after pleading guilty to drug and gun charges.
Gus Brant Doulgerakis, 36, of Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Timothy M. Burgess to 105 months in prison, to be followed by a five year term of supervised release. Doulgerakis previously pled guilty to possession with the intent to distribute both heroin and cocaine and to possessing firearms in furtherance of drug trafficking.
According to Assistant U.S. Attorney Stephanie Courter, who prosecuted the case, Doulgerakis possessed 17 separate firearms as well as other weapons and multiple items of drug paraphernalia, including scales, thousands of dollars in cash, a money counter, and multiple cellular telephones. His home was also replete with items related to the movie Scarface, a film that glorifies drug trafficking and the use of violence in support of that drug trafficking.
In sentencing Doulgerakis, Judge Burgess emphasized the seriousness of the offenses, noting that there was no doubt in his mind that Doulgerakis was engaged in extremely dangerous illegal activity. Judge Burgess also noted the effect of crimes like drug dealing on members of the community.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department for their investigation of this case.
Two Anchorage Men indicted on multiple drug charges including conspiring to distribute drugs that resulted in death of a minorRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two Anchorage residents are charged with participating in a drug trafficking conspiracy that resulted in the death of a minor, as well as distributing heroin that resulted in the same death.
Sean Michael Warner, 28, and Max Raymond Jewett, 36, were indicted by a federal grand jury in Anchorage. Both Warner and Jewett are charged with participating in a drug trafficking conspiracy that resulted in the death of a minor, as well as distributing heroin that resulted in the same death. In addition, Warner was also indicted for distributing a controlled substance to underage individuals, distributing drugs within 1000 feet of an elementary school, and maintaining drug-involved premises within 1000 feet of a school and playground.
According to the indictment presented to the court, by December 23, 2011, Warner and Jewett were conspiring together and with others to distribute controlled substances, including the controlled substance that caused serious bodily injury and death to a minor. Warner and Jewett are both alleged to have distributed the heroin that caused the death of the same minor.
In addition, the indictment alleges that in the days prior to the drug-related death of the one minor, Warner distributed heroin to a different minor. Additionally, the indictment alleges that in late 2011, Warner’s residence was a drug-involved premises located within 1000 feet of both a playground and Turnagain Elementary School. Also during that time, Warner distributed methamphetamine and heroin in close proximity to both Turnagain Elementary and a playground.
Assistant U.S Attorney Kimberly Sayers-Fay and Special Assistant U.S. Attorney Regan Williams, a state district attorney, presented the case to the grand jury. The federal indictment parallels a state manslaughter indictment of Warner returned in January 2012, and reflects a joint determination by the State of Alaska and the U.S. Attorney’s Office that federal prosecution was appropriate in this case. Sayers-Fay, a federal prosecutor, and Williams, a state prosecutor, will cooperate in the prosecution of this case in federal court.
Assistant U.S. Attorney Sayers-Fay advised that the two counts on which both Warner and Jewett were indicted carry a maximum penalty of life imprisonment, accompanied by up to a lifetime of supervised release, and a $1 million fine. The charges of drug distribution resulting in death and conspiring to distribute drugs resulting in death each carry a mandatory minimum sentence of 20 years’ imprisonment.
The charges against Warner of engaging in the alleged distribution of drugs to underage individuals, distributing drugs near a school and playground, and maintaining drug-involved premises near a school and playground, carry maximum penalties of 40 years’ in prison and lifetime supervised release, and maximum fines ranging from $1 million to $2 million.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Anchorage Man sentenced to 60 months in prison for felon in possession of firearm convictionRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a man from Anchorage was sentenced in federal court in Anchorage for one count of being a felon in possession of a firearm.
Menes Weightman, 34, from Anchorage, Alaska, was sentenced August 23, 2013, by U.S. District Court Judge Sharon L. Gleason to 60 months in prison and 3 years of supervised release. Weightman had previously pled guilty to count one of an indictment charging him with being a felon in possession of a firearm.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, in December 2012, Anchorage Police responded to a residence in Anchorage to investigate a report of an individual being threatened with a firearm. Weightman was contacted at the residence and was found in possession of a stolen sawed off shotgun, a .38 caliber revolver, and ammunition. Weightman has 3 prior felony convictions punishable by more than one year imprisonment, and is prohibited under federal law from possessing guns.
Prior to imposing a sentence, Judge Gleason informed Weightman that she hoped this sentence would deter him from committing similar crimes in the future and that this would protect the public from Weightman’s criminal behavior while he is in prison.
Ms. Loeffler commended the Anchorage Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Weightman.Tennessee Man sentenced to 10 and a half years in prison for distribution of Child PornographyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Tennessee man was sentenced in federal court in Anchorage for two counts of distributing child pornography.
Matthew Bren Goodlett, 33, of Knoxville, Tennessee, was sentenced yesterday by Chief U.S. District Court Judge Ralph R. Beistline, to 126 months in prison, followed by 20 years of supervised release, for distributing sexually explicit images of children. Goodlett emailed the materials to an email account in Alaska in January 2012.
According to Assistant U.S. Attorney Audrey J. Renschen, over 3,500 images and 150 videos of children being sexually exploited were involved, including images of children under age 12, and “material that portrays sadistic or masochistic conduct or other depictions of violence.”
At Goodlett’s sentencing, Judge Beistline noted the seriousness of the offenses, the ongoing harm to the victimized children, and the need to deter this kind of conduct. After serving his 10 years and 6 months in prison, Judge Beistline stated Goodlett must serve 20 years of supervised release and be required to comply with special conditions, including participating in sex offender assessment and treatment, and registering as a sex offender.
This case was initiated as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse which was launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood combines federal, state and local resources to better identify, apprehend and prosecute individuals, who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Ms. Loeffler commends Immigration and Customs Enforcement’s Homeland Security Investigations for their investigation of this case.
Grand Jury Indicts Former CEO/Owner of Valley Dairy for fraud related to State of Alaska Loans and USDA Grant FundsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Wasilla woman has been indicted by a federal grand jury in Anchorage for defrauding the State of Alaska and for making false statements to the U.S. Department of Agriculture.
The six-count indictment named Karen B. Olson, 57, of Wasilla, Alaska, as the sole defendant.
The indictment alleges this offense occurred in connection with the construction and management of Valley Dairy, Inc., doing business as Matanuska Creamery, in Palmer, Alaska. Olson is also charged with concealing the criminal conduct of Kyle E. Beus, the former President and co-owner of the Dairy, who was indicted in December 2012, and is currently awaiting trial.
According to the indictment presented to the grand jury, Olson, in September 2008, as an investor and the CEO of Valley Dairy, executed a scheme beginning in September 2008 and continuing through December 2008, to illegally obtain a $430,000 loan from the State of Alaska, Division of Agriculture, in order to conceal the true nature of Valley Dairy finances and the losses to the Dairy caused by the alleged illegal activity of Beus, the former co-owner and President of Valley Dairy.
Beus is alleged to have executed a scheme beginning in December 2007, and continuing through March 2008, to obtain money from the U.S. Department of Agriculture by submitting false documents in order to draw down the proceeds of two federal grants totaling $643,000 awarded by the USDA to support a milk, ice cream and cheese manufacturing facility in Alaska; Beus then allegedly converted part of the funds to his personal use.
Olson is also charged with submitting false statements to the USDA Rural Development to convince it to allow the State of Alaska to take a first lien position on equipment purchased with the proceeds of the USDA Valley Dairy grants.
Assistant U.S. Attorney Retta Randall, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 30 years in prison, a fine of $1 million dollars, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.The U.S. Department of Agriculture, Office of Inspector General- Investigations and the Federal Bureau of Investigation 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.California Man Sentenced to 10 years in prison for distribution of child pornographyRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a California man was sentenced in federal court in Anchorage for three counts of distributing child pornography.
Douglas Earl Blakeley, 36, from Riverside, California, was sentenced on August 12, 2013, by U.S. District Court Judge Timothy M. Burgess to 120 months in prison, followed by 20 years of supervised release, for distributing sexually explicit videos and images of children. Blakeley emailed the materials to an email account in Alaska between September 2011 and May 2012.
According to Assistant U.S. Attorney Audrey J. Renschen, over 2,000 images and 72 videos of children being sexually exploited were involved, including images of children under age 12, and “material that portrays sadistic or masochistic conduct or other depictions of violence.”
At Blakeley’s sentencing, Judge Burgess noted the seriousness of his offense, the need to deter this kind of conduct, and the need to protect the public. Judge Burgess also addressed the need for treatment, and the need to avoid sentencing disparities among similarly situated defendants. After serving his 10 years in prison, Blakeley must serve 20 years of supervised release and will be required to comply with special conditions including participating in sex offender assessment and treatment, and registering as a sex offender.
This case was initiated as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse which was launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood combines federal, state and local resources to better identify, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Ms. Loeffler commends Immigration and Customs Enforcement’s Homeland Security Investigations for their investigation of this case.
inmate sentenced to nine 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 that an Anchorage man was sentenced today to a total of nine years in prison for conspiracy to defraud the government and aggravated identity theft.
Steven James McComb, 47, of Anchorage, Alaska, was sentenced today by U.S. District Court Chief Judge Ralph R. Beistline to 84 months in prison for conspiracy to defraud the government with respect to claims and mail fraud, and a consecutive sentence of 24 months prison for aggravated identity theft. McComb pled guilty to these offenses in June 2013. In addition to his prison sentence, a monetary judgment of $110,698 was entered against McComb and an Order of Forfeiture was entered for $23,160 which had been seized from U.S. Bank in April 2011. McComb was also ordered to pay restitution in the amount of $110,698.
According to filings with the court, while McComb was a State prisoner he participated in a conspiracy to obtain tax refunds by filing fraudulent income tax returns. Between January 2010 and January 2012, McComb and co-conspirators prepared and submitted approximately 100 false tax returns claiming refunds of over $210,000.
Court documents revealed that McComb obtained the names and social security numbers of individuals, many of whom were fellow inmates at State correctional facilities. McComb then provided that information to other co-conspirators outside of the prison system to prepare 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 him.
McComb and co-conspirators Helen Delores Maloney, Paulando Ramone Williams, and Michael Lee Sexton were all 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:
- 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;
- Williams pled guilty to conspiracy to defraud the government with respect to claims, mail fraud, and aggravated identity theft on August 21, 2013, and is scheduled to be sentenced on November 4, 2013; and
- Sexton is pending arraignment and trial.
“Committing tax fraud and identity theft while in prison is a recipe for disaster,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “This sentence shows that tax crimes are a serious matter that could result in years behind bars.”Ms. Loeffler commends the Internal Revenue Service, Criminal Investigation for conducting the investigation leading to successful prosecution of McComb.
Leader of Anchorage Drug Conspiracy and Rap Label pleads guilty to drug charges in cocaine importation conspiracyRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that the leader of a drug conspiracy pled guilty in federal court. The 13 other co-conspirators have previously pled guilty to federal drug charges or have been sentenced for their roles in the conspiracy.
Terrance Fleming a/k/a, “Baydilla,” 32, of Anchorage, Alaska, pled guilty today in Anchorage to Count 1 of the Indictment, drug conspiracy, admitting that he imported between 50 and 150 kilograms of cocaine to Alaska between 2009 and 2012. In a plea agreement filed with the court, Fleming admitted that he was the leader and organizer of the conspiracy, and that he imported the cocaine from Nevada and Washington to be distributed in Anchorage and Fairbanks.
Chief U.S. District Court Judge Ralph R. Beistline scheduled Fleming’s sentencing for November 2013. Fleming has been in federal custody since his arrest in an Atlanta, Georgia suburb in August 2012.
Fleming was the owner and operator of a local rap and hip hop recording label in Anchorage known as “Out Da Cutt” or “ODC” Entertainment and the leader of a rap and hip hop group known as “UNDB” (Up North ‘D’ or Dope Boys). Fleming and other members of the conspiracy attempted to conceal their drug trafficking by claiming they were involved in a legitimate business, specifically, that they were “artists,” employees, or promoters of this Anchorage recording label and members of the rap and hip hop performance group. 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. As part of his plea agreement with the government, Fleming agreed to forfeit expensive vehicles, cash, and jewelry, including necklaces with pendants displaying the words “King of Alaska, AJC” and “Baydilla”. The seized jewelry alone has been appraised at more than $200,000.
Fleming was indicted along with 13 other members of the conspiracy located in Anchorage and Fairbanks. Christopher Anderson was previously sentenced to 14 months in prison on November 2, 2012. DeMarr Moultrie was sentenced to 40 months in prison on May 1, 2013. Jeraelyn Hill was sentenced to 66 months in prison on May 28, 2013. Jerry Wormley was sentenced to 36 months in prison on May 31, 2013. Rock Phelps II was sentenced to 18 months in prison on June 14, 2013. Brent Gunnels was sentenced to 6 months in prison on August 2, 2013. Mihla Hall was sentenced to 28 months in prison on August 21, 2013.
Donnell Johnson, Joshua Mustovich, Antonio Fleming, Dalon Johnson, Tevoris Carter, and Emma Shine, have all pled guilty for their roles in connection with the conspiracy and await sentencing.
Fleming faces a maximum sentence of life imprisonment on the drug conspiracy.
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 FlemingFairbanks Man Sentenced to one year prison term for drug conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Fairbanks man was sentenced in federal court in Fairbanks, Alaska, for three counts of conspiracy and selling illegal drugs.
Steven Jacob Johnson, 26, of Fairbanks, Alaska, was sentenced on August 16, 2013, by Chief U.S. District Judge Ralph R. Beistline in Fairbanks, based on Johnson’s guilty pleas to charges that he conspired to distribute, and did distribute, illegal drugs in the Fairbanks area. He distributed the illegal chemical substances, 2C-E and 2C-I, which was sold as “ecstasy”. The court sentenced Johnson to a one year prison term and he was credited the ten months’ in prison he already served. His sentence also included 54 additional days of electronically monitored home confinement and three years of supervised release. The charges arose from Johnson’s selling the drugs on two occasions in 2012 to an undercover informant and Johnson’s negotiation of a third sale.
According to Assistant U.S. Attorney Stephen Cooper, who prosecuted the case, the facts Johnson admitted to in court showed that Johnson first sold 300 pills for $9 per pill, and was paid $2,700 in cash. Johnson’s second sale was for 800 pills he sold at $10 each for a total of $8,000. He negotiated a third sale of 900 pills. Each of these sales was filmed and recorded. Johnson conducted the sales for his partner who he said had manufactured the pills and he was observed giving most of the cash to his partner. 2C-E and 2C-I are phenethylamines that have chemical and pharmacological properties akin to LSD, ecstasy and other hallucinogenic drugs.
The co-defendant Jackson Drew pled guilty to conspiracy, distribution and possession with intent to distribute drugs. Drew is scheduled to be sentenced in Fairbanks on September 27, 2013.
Ms. Loeffler commends the U.S. Drug Enforcement Administration for the investigation of this case.Anchorage Woman sentenced to 21 months in prison for role in Investment Fraud SchemeRead the Press Release
Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman has been sentenced in federal court in Anchorage for her role in an investment fraud scheme which targeted small investors in Anchorage in 2011 and 2012.
Mary Elizabeth Transki, 26, from Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon Gleason to 21 months in prison following her conviction for one count of securities fraud.
According to Assistant U.S. Attorney Joseph Bottini, who prosecuted the case, Transki’s co-defendant in the case, Floyd Leroy Lee, Jr., set up an investment company – Platinum Investments, Inc. – in Anchorage in October of 2010. Lee, assisted by Transki, subsequently solicited investors with the promise of high-yield returns in a brief amount of time. Between September 2011 and March 2012, Lee and Transki took in approximately $62,000 in investment funds. After receiving the money, Lee and Transki did not invest it as promised and instead used the funds for their own personal use and benefit.
Lee and Transki were indicted by a federal grand jury in April 2013 for one count each of securities fraud related to the investment fraud scheme. Lee was also indicted for one count of mail fraud. Transki and Lee each pled guilty in June 2013 to the securities fraud charge, and Lee additionally pled guilty to the mail fraud count. Floyd Leroy Lee, Jr. is scheduled for sentencing on August 30, 2013 in Anchorage, Alaska.
In sentencing Transki to 21 months in prison, Judge Gleason noted that Transki’s role in the fraud scheme had been greater than simply a ministerial role as Transki had maintained. Judge Gleason also noted that Lee and Transki had preyed on small investors who are the type of individuals least able to absorb the loss of investment funds.
Ms. Loeffler commends the Federal Bureau of Investigation for their investigation of this caseWasilla Ring Leader of drug conspicacy pleads guilty to drug charges in 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 South-central Alaska residents pled guilty in federal court. The six other co-conspirators have previously pled guilty to federal drug charges stemming from a conspiracy to possess and distribute methylone.
Methylone, a Schedule I controlled substance; a/k/a “Molly,” “M1”and “rolls,” is a synthetic drug similar to MDMA (a/k/a “ecstasy”) 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.”
Robin Gattis, 20, of Wasilla, Alaska, pled guilty today in Anchorage to Count 1 of the Indictment, drug conspiracy, admitting that he imported approximately three kilograms of methylone between October 2011 and July 2012. 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 MGS, who died of a methylone overdose in April 2012 in Anchorage. Chief U.S. District Court Judge Ralph R. Beistline scheduled Gattis’ sentencing for November 6, 2013. Gattis has been in federal custody since his arrest on July 31, 2012.
All of the defendants, Robin Gattis, Chad Cameron, 18, of Palmer, Alaska; Stephen Kimbrell, 20, of Soldotna, Alaska; Kevin Rupp, 21, of Anchorage, Alaska; Shane O’Hare, 23, of Wasilla, Alaska; Bren Marx, 20, of Palmer, Alaska; and Haylee Hays, 19, of Anchorage, Alaska, have pled guilty to charges stemming from their agreement to import methylone from China to Alaska and distribute it between September 2011 and July 2012. The seven defendants were indicted by a federal grand jury in December 2012.
In January 2013, Haylee Hays pled guilty to international money laundering as charged in Count 21 of the Indictment. Hays admitted that she wired money to China to pay for a methylone shipment in July 2012. Hays is scheduled for sentencing in January 2014.
In January 2013, Bren Marx pled guilty to Count 3 of the Indictment, admitting that he attempted to possess methylone in February 2012. Marx was living with Gattis and Rupp in Wasilla when U.S. Customs intercepted a package containing 22 grams of methylone that was being shipped from China to Gattis. Marx and Gattis were arrested after the package was delivered, and Marx was found to be in possession of additional methylone from a prior shipment. Marx was sentenced to five years of probation in April 2013.
Stephen Kimbrell pled guilty to two counts of the indictment in February 2013 and admitted that he attempted to possess 850 grams of methylone in July 2012. Gattis, Kimbrell, Hays, and others had wired money to China to pay for an 850 gram package of methylone. Kimbrell also pled guilty to international money laundering, admitting that he wired money to China to help pay for the drugs. He is scheduled for sentencing in August 2013.
Shane O’Hare pled guilty to possession of methylone with intent to distribute in February 2013, admitting that he repeatedly allowed Robin Gattis to ship drugs from China to O’Hare’s mailbox at the UPS Store in Wasilla. O’Hare admitted that he received multiple packages that he knew contained methylone, and delivered them to Gattis for further distribution. He is scheduled to be sentenced in January 2014.
Chad Cameron pled guilty in March 2013 to one count of attempted possession of a controlled substance. Cameron Admitted driving Gattis to Kenai on July 30, 2012, to pick up the package containing 850 grams of methylone that had been shipped to Stephen Kimbrell. The package had been intercepted by U.S. Customs, and Gattis, Cameron, and Kimbrell were arrested. Cameron also admitted wiring money to China at Gattis’ direction to pay for methylone on two occasions. On one of those occasions, Cameron was under 18 years of age. Cameron is scheduled for sentencing in August 2013.
Kevin Rupp pled guilty in March 2013 to one count, admitting that he knowingly possessed methylone with the intent to distribute. Rupp admitted that he drove Gattis to Wasilla in April 2012 to pick up a package containing methylone from O’Hare. He also admitted to transporting Gattis and the drugs back to Anchorage to the condo he shared with MGS. Rupp was also present in February 2012 when a package of methylone was delivered to the house he shared with Gattis and Marx in Wasilla. Rupp is scheduled for sentencing in August 2013.
According to the indictment, after MGS died in April 2012, Gattis emailed the supplier in China, advising them of MGS death and asked them for a refund. However, the indictment alleges that less than a month later, Gattis was ordering more methylone from the same supplier. A federal investigation began after the death of MGS in April 2012, and culminated when two more packages were intercepted in June and July 2012.
Gattis and the other defendants each face up to 20 years of imprisonment on the drug conspiracy, possession, and money laundering charges.
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.
Anchorage Drug Dealers conviceted by Jury of drug conspiracy and weapons chargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two Anchorage men were convicted of federal drug and weapons charges last week.
Christopher Thomas Mejia, 24, and Jared Thomas Bowers, 23, both of Anchorage, Alaska, were tried before Chief U.S. District Court Judge Ralph R. Beistline in Anchorage, Alaska.
A federal jury of seven men and five women found Mejia and Bowers guilty of a drug trafficking conspiracy, attempted possession of heroin with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime.
According to Special Assistant U.S. Attorney Erin 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. In February 2013, the United States Postal Service intercepted a package containing approximately two pounds of heroin. The 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. Mejia and Bowers are in custody pending sentencing.
Judge Beistline scheduled sentencing for Mejia on October 15, 2013, at 9:00 a.m. Bowers is scheduled to be sentenced on October 16, 2013, at 10:00 a.m. Marmolejos, who pled guilty to drug trafficking conspiracy in a separate proceeding, is scheduled to be sentenced on October 3, 2013, at 10:00 a.m. Based on the charges of conviction, Mejia and Bowers face mandatory minimum sentences of ten years in prison, a fine of five million dollars, or both. Marmolejos faces a mandatory minimum sentence of five years in prison, a fine of five million dollars, or both.
Ms. Loeffler commends the Drug Enforcement Administration, the Alaska State Troopers and the United States Postal Service for the investigation leading to the successful prosecution of Mejia, Bowers and Marmolejos. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office who is funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.Fairbanks Man sentenced to 6 months in prison for tampering with evidenceRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Fairbanks resident was sentenced in federal court in Fairbanks, Alaska, for his role in a conspiracy to tamper with evidence regarding a drug case.
Brent Gunnels, a/k/a, “BG,” 32, from Fairbanks, Alaska, was sentenced today by U.S. District Court Chief Judge Ralph R. Beistline to 6 months in prison and 2 years of supervised release. Gunnels had previously pled guilty to an indictment charging him and his co-conspirators with one count of conspiracy to tamper with evidence.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, Gunnels was a friend of Donnell Johnson. Johnson was arrested for his involvement with a drug conspiracy in January 2012, and he directed Gunnels and others to break into his home located in North Pole, Alaska and remove several incriminating items. On January 28, 2012, Gunnels and others went to Johnson’s residence in North Pole and removed several items from the residence including a drug ledger, a digital scale, and a firearm. Gunnels and the others broke into the home and removed the items before federal law enforcement agents were able to serve a federal search warrant at the residence.
Johnson and his co-defendants are members of a drug trafficking conspiracy that attempted to conceal their drug trafficking by claiming they were involved in a legitimate business and were “artists,” employees, or promoters of an Anchorage recording label and rap and hip hop performance group. 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.
There was no evidence that Gunnels was involved in Johnson’s drug trafficking conspiracy other
than his removal of items from Johnsons residence in January 2012.Prior to imposing a sentence, Judge Beistline informed the defendant that drug traffickers were poisoning the community, that he had made a choice to interfere with law enforcement and that he chose to help out those trafficking drugs rather than assist law enforcement.
Gunnels was indicted along with 13 other members of the conspiracy located in Anchorage and Fairbanks. Christopher Anderson was previously sentenced to 14 months in prison on November 2, 2012; DeMarr Moultrie was sentenced to 40 months in prison on May 1, 2013; Jeraelyn Hill was sentenced to 66 months in prison on May 28, 2013; Jerry Wormley was sentenced to 36 months in prison on May 31, 2013 and Rock Phelps II was sentenced to 18 months in prison on June 14, 2013. Donnell Johnson, Joshua Mustovich, Mihla Hall, Antonio Fleming, Dalon Johnson, Tevoris Carter, and Emma Shine, have plead guilty for their roles in connection with the conspiracy and await sentencing. Terrance Fleming has a pending trial scheduled in August 2013.
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 Gunnels11 indicted for conspiring to distribute controlled substance in AlaskaRead the Press Release
Indictments charge a source of supply for “Up North ‘D’ Boys” rap group,
as well residents of Fairbanks, Anchorage, and the States of Washington,
California and Florida with drug and money laundering offensesAnchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today, July 25, 2013, that the grand jury has returned two additional drug conspiracy indictments stemming from the same investigation that resulted in charges against numerous members of an Anchorage based rap group back in August of 2012. That indictment alleged a conspiracy to distribute over 50 kilograms of cocaine in Anchorage and Fairbanks. All but the alleged ringleader, Terrance S. Fleming, a/k/a “Baydilla”, have since pled guilty. Fleming currently has a trial scheduled to begin next month.
One of the new indictments, Case Number 3:13-cr-00079-RRB charges a conspiracy to distribute over five kilograms of cocaine, over one kilogram of heroin, ten pounds of methamphetamine, and a quantity of oxycodone, as well as a conspiracy to launder the proceeds of drug trafficking. It charges the following individuals:1. Steven N. Taylor, a/k/a “Louis V.”, a/k/a “Nicky”, 42, of Seattle, WA;
2. James Brown, Sr., A/k/a “Unc”, 65, of Washington;
3. Leonard D. Charles, 39, of Washington;
4. Shawn Cortez Cloyd, a/k/a “Cc”, a/k/a “Rider”, 42, of Anchorage;
5. Timothy W. Northcutt, a/k/a “O.G.” a/k/a “Butch”, 62, of Anchorage;
6. Etienne Q. Devoe, a/k/a “Tin”, a/k/a “Tien”, 40, of Fairbanks;
7. Joshua J. Haynes, a/k/a “Lil’ J”, 34, of Florida (formerly of Fairbanks)
8. Gabrielle P. Haynes, 29, of Fairbanks; and
9. Joseph E. Irving, 54, of Washington.The indictment alleges that Taylor, who was assisted by Brown and Charles, shipped drugs to Alaska from Washington State. Among the drugs alleged to have been shipped by Taylor were approximately ten kilograms of cocaine in November 2011. The Fleming indictment alleges that Fleming and his associate, Donnell Johnson, were the intended recipients of the package.
Those kilograms, along with another five kilograms of cocaine allegedly sent by Taylor to St. Louis, Missouri, were intercepted by the United States Postal Inspection Service, Seattle Division, which joined forces with the Drug Enforcement Administration, the Federal Bureau of Investigation’s Safe Streets Task Force, the Anchorage Police Department’s Special Assignment and Vice Units, and the Internal Revenue Service’s Criminal Investigative Division during the investigation.
In addition, the indictment alleges that Cloyd, Northcutt, Devoe, J. Haynes, and G. Haynes would receive drugs for distribution in both Anchorage and Fairbanks. The indictment alleges that Taylor shipped over 20 parcels of drugs to Alaska, beginning in at least 2009. The indictment provides insight into the drug trafficking business in Alaska, as it alleges that conspirators discussed how heroin and methamphetamine were the most profitable drugs to sell in Alaska, as well as the status of various drug debts owed to Taylor and Brown. The indictment states that Brown told Taylor that Cloyd needed to be “taken care of” and “blasted” for his inability to pay a $29,000 drug debt owed to Brown and Taylor. Finally, the indictment further alleges that drug proceeds were then laundered through bank accounts and financial wire services with the assistance of Taylor, Charles, Northcutt, Devoe, and Irving.Taylor was arrested in Seattle on July 10 and was arraigned on the indictment yesterday in Anchorage. Brown, Charles, and Irving were also arrested in Washington between July 23 and 24. Northcutt was arrested in Anchorage on July 24, and was arraigned on the indictment today. Police are currently seeking the whereabouts of Devoe, Joshua Haynes, and Gabrielle Haynes. Any information on their location can be reported to the DEA at (907) 271-5033.
Cloyd was arrested in Anchorage on July 18 on a separate indictment (Case Number 3:13-cr-00077-TMB) stemming from the same investigation, charging him, along with Aaron Frazier, age 40, of San Diego, CA, and Alfred Frazier, age 42, also of San Diego, with conspiring to distribute heroin and cocaine in Alaska. Both Aaron and Alfred Frazier are also in custody on that indictment. Both Fraziers are prior Alaska residents.U.S. Attorney Loeffler stated, “These indictments send a clear message: there is no place for drug traffickers seeking to do business in Alaska. We have a well-coordinated multiagency team of law enforcement personnel dedicated to pursuing drug traffickers who deal, supply, and impact Alaskans and we will pursue them wherever they are located.”
Inspector in Charge of the Seattle Division of the U.S. Postal Inspection Service Bradley Kleinknecht added that “We are committed to identifying United States mail containing drugs, and our inspectors identified over 20 suspicious packages that were linked to this drug trafficking group. Inspectors are working every day to ensure that drug traffickers know that the United States mail is no safe haven for them.”
The investigative agencies mentioned above were supported by the Postal Inspection Service and DEA office in St. Louis, Missouri, the San Diego Police Department, the FBI’s Seattle District Office, and the Bureau of Alcohol, Firearms, Tobacco and Explosives. The maximum penalties for the drug conspiracy charge include a minimum of 10 years in prison and maximum of life in prison, a $10 million fine, and at least five years of supervised release. The money laundering conspiracy charge carries a maximum penalty of 20 years in prison, as well as a $500,000 fine. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.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.
Eight defendants indicted for defrauding the Municipality of Anchorage of cigarette tax revenueRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that eight defendants were indicted last week on charges of mail fraud, money laundering conspiracy, conspiracy to make false statements regarding the distribution of cigarettes and aggravated structuring currency transactions.
Michael Butler, 42, Sun Sims, 50, Kimberly Sims, 29, In Sook Baik, 28, Kyong Hee Kim, 55, Jae Ho Lee, 58, Jae Gak Lee, 60, and Jerry Lee, 58, were charged in a single 20-count indictment. The indictment also alleges forfeiture of funds totaling over $ 1 million dollars and seeks a money judgment in the amount of $3.6 million dollars.
According to lead Assistant U.S. Attorney Stephan A. Collins, the indictment explains that the Municipality of Anchorage imposes an excise tax upon each cigarette purchased within the municipality. The tax is approximately equal to $2.20 per pack of cigarettes. The Municipality provides for an exemption to this excise tax for cigarettes that merchants purchase within the municipality and that are then transported outside of the municipality for resale. The Kenai Peninsula Borough does not impose an excise tax upon cigarettes sold within the borough. Michael Butler and Sun Sims owned and operated Up In Smoke, a tobacco shop located within the Municipality of Anchorage. In addition to Up In Smoke, Butler and Sun Sims owned and operated Golden Eagle Tobacco and Longmere Lake Liquor, both located within the Kenai Peninsula Borough. The indictment alleges that in an effort to avoid paying the municipal cigarette excise tax, Butler and Sun Sims purchased cigarettes after falsely reporting that the majority of the cigarettes were intended for sale at either of their two tobacco stores within the Kenai Peninsula Borough, when in fact those cigarettes were being sold within the municipality.
In addition to selling cigarettes within their own smoke shops, Butler and Sims sold untaxed cigarettes to In Sook Baik, Kyong Hee Kim, Jae Ho Lee, Jae Gak Lee and Jerry Lee, who all operated smoke shops within the Municipality of Anchorage. Baik owned and operated the Arctic/Tudor Shell and Mountain View Shell, where she sold cigarettes. Kim owned and operated the Mini Stop Grocery. Jae Ho Lee owned and operated Cheap Smokes. Jae Gak Lee owned and operated Party Time Liquor. Jerry Lee owned and operated the Lucky Seven Foodmart.
The indictment alleges that between 2009, and continuing up until October 10, 2012, the defendants collectively ordered and purchased approximately 12,350,000 cigarettes, intended for resale within the Municipality of Anchorage through October 10, 2012.
By falsely representing that the ultimate destination for the sale of these cigarettes was outside of the Municipality of Anchorage, the defendants caused the Municipality to lose cigarette excise tax revenue in excess of $1,375,000. During the course of this scheme, Butler, Sun Sims and Kimberly Sims collected and received fees and costs for the wholesale cigarettes totaling approximately $3.6 million dollars from the other defendants.
The indictment also alleges that while participating in this scheme, In Sook Baik evaded financial reporting requirements by structuring deposits made to Northrim Bank and Wells Fargo Bank, N.A. Baik made these deposits between January 4 and July 17, 2012, and the deposits totaled over $225,000.
The United States District Court for the District of Alaska has summoned all of the defendants to appear for their respective arraignments on August 28 and 29, 2013.Assistant U.S. Attorney Stephan A. Collins and Special Assistant U.S. Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 20 years in prison for mail fraud, a fine of $250,000, or both. The law provides for a maximum total sentence of 20 years in prison for money laundering conspiracy, a fine of $500,000, or both. The law provides for a maximum total sentence of 5 years in prison for conspiracy to make false statements regarding the distribution of cigarettes, a fine of $250,000, or both. The law provides for a maximum total sentence of 10 years in prison for aggravated structuring currency transactions, a fine of $500,000, or both.
Ms. Loeffler commends the Internal Revenue Service, Criminal Investigation Division, the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Anchorage Police Department for the investigation of this case.
The case was investigated under the purview of the Organized Crime and Drug Enforcement Task Force, which is made up of personnel from the U.S. Attorney’s Office, Federal Bureau of Investigation, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Internal Revenue Service–Criminal Investigation, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard, and the Anchorage Police Department. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Anchorage Man sentenced to 60 months in prison for assault on a federal officerRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a man from Anchorage was sentenced here in federal court to prison for an assault on a Federal Officer.
Kyle Scott Hansen, 26, from Anchorage, Alaska, was sentenced on July 23, 2013, by U.S. District Court Judge Sharon L. Gleason to 60 months in prison and 3 years of supervised release. Hansen was also ordered to pay $78,310.44 to the Joint Base Elmendorf-Richardson for damage he caused. Hansen had previously pled guilty to count one of an indictment charging him with assault on a federal officer.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, just after midnight on January 19, 2013, Hansen drove a blue GMC pickup truck through the Boniface Gate of the Joint Base Elmendorf-Richardson (“JBER”). When Hansen drove onto JBER, he was unauthorized to be on the facility and drove through a closed lane at the gate. Once on JBER, Hansen ignored JBER security police attempts to conduct a traffic stop and continued driving through JBER at speeds up to 60 miles per hour. When Hansen reached the Government Hill Gate, he discovered it was closed and turned around and headed back towards the Boniface Gate and in the process of turning around, he damaged one security police vehicle.
Security police set up a roadblock in an attempt to stop Hansen and at the roadblock, Hansen drove his vehicle through an opening between a vehicle and a light pole. While driving through this opening, Hansen struck a Senior Airman’s service rifle that he was holding and the rifle then struck the Senior Airman in the throat and caused him to fall down an embankment. Hansen then continued through the now closed Boniface Gate causing significant damage to the gate. Hansen was contacted and arrested later in the day in Eagle River, Alaska. His vehicle was later recovered in the Airport Heights neighborhood of Anchorage on January 20, 2013. The investigation revealed that prior to entering JBER, Hansen had consumed Coricidin D, a cold and flu medicine that Hansen used as a replacement for illegal drugs and alcohol.
At the sentencing hearing, Judge Gleason was “troubled” by a “26 year old man who already has 4 prior convictions for driving under the influence of alcohol and one prior conviction for felony eluding”. The Judge echoed Mr. Cavanaugh’s comments that Hansen has been fortunate to have not seriously injured anyone as a result of his prior impaired driving offenses. Judge Gleason also noted that the prior sentences Hansen had received as a result of his prior alcohol/driving and felony eluding convictions, had not served sufficiently as a deterrent to future behavior, given that the incident at JBER happened so soon after he had been released from jail for his most recent conviction.
Judge Gleason recognized that “protection of the public” was one of her main sentencing goals and that, “when intoxicated; Hansen was a danger to the community and the public needs to be protected from him.”
Ms. Loeffler commended the United States Air Force Office of Special Investigations at JBER and the Anchorage Police Department for the investigation leading to the successful prosecution of Hansen.
former Department of Defense Auditor sentenced to two years probation and $5000 fineRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was sentenced in federal court in Anchorage for violating conflict of interest laws by representing a contractor on issues she previously handled for the government.
Jodi Ann Andres, 48, of Anchorage, Alaska, was sentenced July 22, 2013, by U.S. District Court Judge Sharon L. Gleason to two years’ probation and ordered to pay a $5000 fine.
According to Assistant U.S. Attorney Retta-Rae Randall, who prosecuted the case, and information presented in court, Andres was an auditor with the Department of Defense’s Defense Contract Audit Agency (DCAA) from January 2003 to September 2006. During that time, she was the primary auditor of cost proposals, labor rates and claims for the Missile Defense Agency. The Missile Defense Agency is responsible for developing, testing and fielding an integrated Ballistic Missile Defense System for the United States.
The Alaska Aerospace Corporation, formerly the Alaska Aerospace Development Corporation, was established in 1991 by the State of Alaska to develop a high technology aerospace industry in the state. Alaska Aerospace became a contractor for the Missile Defense Agency in 2003, when pursuant to a five year contract; Alaska Aerospace provided support for launches from the Kodiak Launch Complex in Kodiak, Alaska.
In September 2006, Andres left employment with the DCAA and began employment with Alaska Aerospace as its Controller. In July 2008 Andres represented Alaska Aerospace during communications and negotiations with the DCAA about the same Missile Defense Agency contract she had previously audited, with the intent to influence the DCAA about that contract, in violation of a lifetime restriction which barred such communications.
Ms. Loeffler commends the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, for the investigation of this case and the Defense Contract Audit Agency who referred the matter to the Office of Inspector General, Defense Criminal Investigative Service
International Wildlife Investigation results in charges against Alaskan Big Game Guide and Canadian Clients for wildlife crimesRead the Press Release
Anchorage, Alaska- Acting U.S. Attorney Kevin Feldis announced today that a joint United States and Canadian wildlife investigation has resulted in the filing of charges by the federal grand jury in Anchorage, Alaska, against an Alaskan big game guide, and three Canadian citizens.
The indictment by the grand jury charges John Katzeek, 64, of Haines, Alaska, who is employed as a big game guide in Alaska, with nine counts including conspiracy, the filing of false documents concealing the illegal nature of the guided hunts, take of wildlife, and smuggling. Also charged with Katzeek for conspiracy and filing false documents were Alberta, Canada, residents Brian Hicken, 54, Kenneth Cox, 49, and Tyler Antal, 22.
The guided hunts and the violations during these hunts occurred between October 2010 and November 2011, in the Haines, Alaska area. The indictment charges the unlawful take and transportation of Mountain goats in violation of numerous Alaska laws and the illegal export of the horns and hides from these goats to Canada by Katzeek, Cox, Hicken and Antal, all in violation of the federal Lacey Act.
The indictment also charges that Katzeek participated in the illegal import of trophy Dall sheep from Yukon, Canada into the United States. The indictment alleges that during December 2008 and through March 2009, Katzeek conspired with another individual to illegally import a trophy Dall sheep ram using false documents, and smuggling the sheep horns from Canada into the United States. During 2010, Katzeek personally imported a second trophy Dall sheep using false documents to facilitate the export of the horns from Canada into the United States.
The indictment is the result of an extensive joint United States and Canadian investigation. Starting in January 2013, Canada Crown prosecutors in Alberta, and Yukon Territory Canada, charged approximately 17 subjects with 55 violations under Wild Animal and Plant Protection and the Regulation of International and Interprovincial Trade Act (WAPPRIITA). These charges were in relation to the illegal guided hunts charged above and the illegal import of unlawful wildlife from the United States into Canada. The Canadian trials are scheduled to begin in the fall of 2013.
The maximum penalty for conspiracy and violating the Lacey Act is 5 years imprisonment and a $250,000 fine. The maximum penalty for smuggling is 30 years in prison with a $250,000 fine. An arraignment date has not been set.
Mr. Feldis commends the U.S. Fish and Wildlife Service, Alaska Wildlife Troopers, Environment Canada, Yukon Conservation Officer Service, Alberta Fish and Game, Parks Canada, British Columbia Conservation Officer Service, and the Public Prosecution Service of Canada for the international cooperation extended in the investigation of these cases.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Former Contract Employee with Postal Service indicted fro drug conspiracy and possessing stolen mailRead the Press Release
Anchorage, Alaska-Acting U.S. Attorney Kevin R. Feldis announced today that a Wasilla woman was indicted by a federal grand jury in Anchorage, Alaska, on drug charges as well as a charge of possession of stolen mail.
Brenda Sue Cox, 52, of Wasilla, Alaska, is the sole defendant named in two separate indictments. The first charges her with conspiracy to distribute large amounts of methamphetamine and heroin as well as related drug crimes. The second indictment charges Cox, a former contract employee with the United States Postal Service, with possession of stolen mail. Both indictments stem from law enforcement actions in October 2012. The indictment alleges that Cox was found to be in possession of heroin and methamphetamine as well as multiple pieces of stolen mail.
Assistant U.S. Attorney Stephanie Courter, who presented the case to the grand jury, indicated that Cox faces a ten-year mandatory minimum sentence on the drug charges, while the law provides for a maximum total sentence of up to five years in prison and a $250,000 fine for possessing the stolen mail. 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 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.
28 month prison sentence for Anchorage Woman for role in prison tax refund conspiraciesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage resident was sentenced to prison for convictions of conspiracy to defraud the government and mail fraud.
Helen Delores Maloney, 45, of Anchorage, Alaska, was sentenced to 28 months in prison on July 2, 2013. Maloney pled guilty in April 2013 to conspiracy to defraud the government regarding false income tax refund claims and mail fraud. In addition to her prison sentence, a money judgment of $17,719 was entered against Maloney. She was also ordered to forfeit $23,160 seized from a residence and to pay restitution of $95,568.
According to court documents, Maloney was involved with two conspiracies between July 2009 and January 2012. The objective of both conspiracies was to obtain refunds by filing fraudulent income tax returns. Both schemes involved co-conspirators and victims who were inmates at correctional facilities.
Court documents revealed that the first conspiracy Maloney was involved in occurred between July 2009 and May 2011, when Maloney, co-conspirator John Koesterman, and others, prepared and submitted approximately 55 false tax returns claiming refunds of over $275,000. Koesterman was later indicted.
Court documents further indicate that the second conspiracy occurred between July 2010 and January 2012, when Maloney and co-conspirators Steven James McComb, Michael Lee Sexton, and Paulando Ramone Williams prepared and submitted approximately 21 false tax returns claiming refunds of over $51,000. Maloney submitted change of address forms for 20 victims of the scheme for whom her co-conspirators then submitted false tax returns, causing tax refund checks and other IRS correspondence to be mailed to her residence.
Maloney, McComb, Williams, and 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 plead guilty to conspiracy to defraud the government with respect to claims, mail fraud, and aggravated identity theft on June 6, 2013, and is scheduled to be sentenced on August 22, 2013;
- Williams is scheduled to go to trial on September 23, 2013;
- Koesterman is scheduled to go to trial on August 19, 2013;
- Sexton is a fugitive.
Regarding Koesterman, Williams, and Sexton, an indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Ms. Loeffler commends the Internal Revenue Service-Criminal Investigation Division, for conducting the investigation leading to Maloney’s successful prosecution.
California Oxycodone Dealer convicted for drug conspiracy and witness tamperingRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that on July 1, 2013, after deliberating for four hours, a jury of four men and eight women found a California gang member guilty of drug conspiracy and witness tampering.
Richard Melvin Corum, a/k/a “Little Man,” 30, a resident of Sacramento, California, was tried before U.S. District Court Judge Timothy M. Burgess in Juneau, Alaska.
According to Assistant U.S. Attorney’s James Barkeley and Jack Schmidt, who prosecuted the case, the evidence presented at trial established Corum was a source of supply of oxycodone since April 2010 through January 2011, for a large scale drug conspiracy which operated between California and Alaska. Corum, a reported member of the criminal street gang “Bloods,” supplied oxycodone pills to the drug trafficking conspiracy, who would then utilize drug couriers to transport the pills to Juneau, Alaska, for subsequent distribution. In November 2010, due to heavy law enforcement interdiction at the Seattle-Tacoma airport of drug couriers, Corum and other members of the conspiracy decided to utilize commercial package delivery services instead of drug couriers in order to evade law enforcement detection.In November 2010, Corum recruited his cousin and his girlfriend to fly to Juneau to distribute pills for the conspiracy. In early December 2010, Corum’s cousin flew to Juneau to receive packages of oxycodone for subsequent sale in the Juneau area. Members of the conspiracy in California then received the pills obtained by Corum and shipped the pills to Corum’s cousin. Corum and other members of the conspiracy would direct Corum’s cousin to local dealers in the Juneau area to distribute the pills and collect drug proceeds. Corum’s cousin then took the drug proceeds and deposited them into the new bank account of Arianna Dixon, Corum’s girlfriend, which had been opened days before Corum’s cousin travelled to Juneau as a member of the conspiracy.
Corum was indicted for drug conspiracy on February 21, 2012, and arrested by law enforcement on March 2, 2012. During this time, other members of the conspiracy had been previously arrested and prosecuted for their roles in the drug conspiracy. As a result, a number of individuals were witnesses to Corum’s involvement in the drug conspiracy and agreed to testify against him. Corum was scheduled for trial in Anchorage in June 2012, for drug conspiracy, and then learned of the identities of those who were going to testify against him through the discovery process. On June 24, 2012, Corum assaulted one of the witnesses against him at the Anchorage Jail Center with the intent to prevent the witness from testifying against him. The incident was captured on video.
Judge Burgess has scheduled sentencing for October 17, 2013, in Juneau. The law provides for a sentence up to 30 years on each count, a fine of $2,000,000 and a mandatory minimum of 6 years to life of supervised release on the drug conspiracy count and a fine of $250,000 and up to five years of supervised release on the witness tampering charge.Ms. Loeffler commended the Drug Enforcement Administration’s D-22 High Intensity Drug Trafficking Area Task Force; Internal Revenue Service – Criminal Investigations; The State of Alaska Criminal Laboratory; Port of Seattle Police Department; and the Juneau Police Department - Drug Metro Unit for the successful investigation leading to the prosecution of Corum.
Anchorage Woman sentenced to 95 months in prison for drug and gun crimesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a resident of Anchorage has been sentenced in federal court in Anchorage for her conviction of possession of a controlled substance with intent to distribute and felon in possession of firearms.
Nancie Caridad Modeste, 27, from Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon L. Gleason to 95 months in prison.
According to information presented to the court by Special Assistant U.S. Attorney Erin White Bradley, who prosecuted the case, Modeste possessed over 100 grams of crack cocaine and over 12 grams of powder cocaine on September 5, 2012. At the time of her arrest, Modeste was in a vehicle with a large amount of crack cocaine located in a box beneath her driver’s seat. Law enforcement found Modeste’s fingerprints on the box and they found a scale commonly used to weigh drugs for sale inside of the box. Law enforcement also found three semi-automatic firearms inside of the vehicle’s center console. Modeste admitted to possessing the illegal controlled substances, and the firearms. She further admitted to selling crack cocaine. Modeste has a prior conviction for felony evidence tampering dating back to 2005.
Prior to imposing sentence, Judge Gleason noted the serious nature of the offense, along with Modeste’s history of serious crimes. Judge Gleason also noted a need to protect the public and to deter this type of criminal behavior.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alaska State Troopers for the investigation of 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.
Fairbanks Man sentenced to prison for drug dealingRead the Press Release
Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that a Fairbanks man was sentenced in U.S. District Court in Fairbanks, for conspiracy and aiding the distribution of drugs.
William E. Kaiser, Jr., 52, of Fairbanks, Alaska, was sentenced in Fairbanks on June 21, 2013, by Chief U.S. District Court Judge Ralph R. Beistline, after Kaiser pled guilty to charges that he conspired to distribute marijuana in the Fairbanks area and that he aided others in distributing the drug. Judge Beistline sentenced Kaiser to 40 months in prison. The charges arose from the 2012 seizure of a shipment of $40,000 in cash, which Kaiser had sent to his supplier in Oregon in payment for drugs that the supplier had shipped to Fairbanks.
According to Assistant U.S. Attorney Stephen Cooper, who prosecuted the case, the facts Kaiser admitted to in court showed that he had an ongoing agreement for the Oregon supplier to ship marijuana to Kaiser or his associates in Fairbanks for $2,500 per pound. Kaiser sent payments to the supplier in the form of cash proceeds of the sales. This conspiracy lasted from mid-2011 and until June 2012, and resulted in well over a dozen shipments totaling between 130 and 175 pounds of marijuana.
In 2001, Kaiser had previously been convicted in federal court in Fairbanks of cultivating over 380 marijuana plants and possessing a firearm in furtherance of drug trafficking. He was sentenced to 10 years in prison, and was on supervised release from that sentence when he committed the current offenses. Kaiser now faces additional proceedings for violating his supervised release by committing these offenses.
Ms. Loeffler commends the Drug Enforcement Administration and the Medford, Oregon, Police Department for the investigation of this case.
Sacramento Woman sentenced to 38 months in prison for role in drug trafficking and money laundering conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Sacramento woman was sentenced in Juneau to federal prison for drug trafficking and money laundering conspiracy.
Jennifer McGrath, 26, of Sacramento, California, was sentenced June 26, 2013, by U.S. District Court Judge Timothy M. Burgess to 38 months in prison for her role in a drug trafficking and money laundering conspiracy.
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, Internal Revenue Service-Criminal Investigations, Port of Seattle Police Department, and the Juneau Police Department-Drug Metro Unit, which were investigating the importation of oxycodone and money laundering offenses in Alaska.Between January 2009, and continuing through July 2010, McGrath was involved in a large scale drug trafficking conspiracy transporting oxycodone from California for later sale in Juneau, Alaska. As part of the conspiracy, McGrath made multiple airline trips from California to Juneau carrying the oxycodone pills on her person. McGrath distributed the pills to local dealers and collected the drug proceeds. McGrath either laundered the drug proceeds using commercial wire transfers or body carried drug proceeds back to California for members of the conspiracy. During the course of the conspiracy, McGrath transported approximately 1500 pills of oxycodone and laundered over $14,000 in drug proceeds. On July 22, 2010, McGrath was contacted by law enforcement at the Seattle-Tacoma (SEA-TAC) Airport where she was scheduled to fly from Juneau to California while in possession of approximately $7,000 in cash, which was seized by law enforcement.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense and the need to deter the defendant. He also emphasized the need to protect the public from further crimes of the defendant, to provide treatment in the most effective manner, and to avoid unwarranted sentencing disparities as reasons for imposing the 38 month prison sentence.
Ms. Loeffler commended the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Port of Seattle Police Department, and the Juneau Police Department-Drug Metro Unit for the investigation leading to the successful prosecution of McGrath.
Leaders of scheme to embezzle from Trident Seafoods sentenced to 46 months in prisonRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that a Kodiak woman was sentenced for her role in embezzling $493,060 from Trident Seafoods.
Isairis Wolfe, 33, of Kodiak, Alaska, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline, to 46 months in prison and to pay full restitution.
According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, from January 2008, and continuing until August 2010, Wolfe used her position as the book keeper for Trident Seafoods in Kodiak, to write Trident checks to four of her personal associates Anne Wilson, Jeremy Smith, Valerie Olivares, and Jamie Fathke. Wolfe, using her check writing authority at Trident, drafted approximately 52 checks on a Trident Seafoods account for approximately $500,000, and made them payable to her personal associates Wilson, Smith, Olivares, and Fathke, as well as to Wilson's minor son L.E. The checks were negotiated by Wolfe and her associates and they shared the proceeds. Wolfe concealed the fraud by creating fraudulent accounting records so that the payments appeared to be legitimate.
Wolfe indicated at sentencing that her methamphetamine habit clouded her judgment and contributed to her poor choices in undertaking the scheme.
Information presented at sentencing indicated that Wolfe spent the money she embezzled on diamond jewelry, a new truck, and an addition to her house, among other things.
Judge Beistline noted that Wolfe’s scheme was motivated by greed, showed a lack of concern for her co-defendants, and abused the trust of her employer.
Deirdre Fike, Special Agent in Charge of the FBI in Alaska stated, “Ms. Wolfe’s fraudulent activities significantly impacted Trident Seafood’s operations. I would like to thank the Kodiak Police Department for their assistance in this investigation.”
Ms. Loeffler commends the FBI for the investigation of this case.
Commercial fisherman charged with making false records and statements to cover up illegal fishing in AlaskaRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a State of Washington resident was indicted by the federal grand jury in Anchorage, Alaska, for making false records under federal fish and wildlife laws, and making false material statements to a federal government agency.
According to the indictment, Steven Carr, 54, fishing out of Kodiak, Alaska, was the owner and operator of the Fishing Vessel (F/V) SEA MAC. In 2008, Carr held permits allowing him to participate in the entry-level Rockfish Pilot Program. In early July 2008, Carr made four voyages where he fished in Federal Statistical Area 630, which was unavailable to him. The indictment alleges that in order to cover up his illegal fishing, he stated in his Daily Fishing Logs that he fished in Area 640, which was further away from his homeport in Kodiak.
During those four voyages, Carr caught 761,421 pounds of Pacific Ocean Perch, which he sold for over $120,000.
The maximum penalty for violating the Lacey Act, which makes it illegal to make a false record related to fish, wildlife or plants valued over $350.00 and transported in interstate or foreign commerce is up to five years in prison and a $250,000 fine. The maximum penalty for making a material false statement to a government agency is also up to five years in prison and a $250,000 fine.
Ms. Loeffler commends the National Oceanic and Atmospheric Administration, Office of Law Enforcement, for the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Convicted felon receives three year sentence for firearm possessionRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a resident of Anchorage has been sentenced in federal court in Anchorage for her conviction of felon in possession of a firearm.
Ashley Helene Hilton, 26, from Anchorage, Alaska, was sentenced on June 14, 2013, by U.S. District Court Judge Sharon L. Gleason to 36 months in prison.
According to information presented to the court by Special Assistant U.S. Attorney Erin White Bradley, who prosecuted the case, Hilton possessed a loaded Witness .45 caliber semi-automatic pistol on September 5, 2012. A latent print on the magazine inside of the firearm matched that of the defendant. Hilton was not legally permitted to possess the firearm, as she has a felony conviction for second degree robbery from 2005. In this present case, Hilton was with her co-defendant, Nancie Caridad Modeste, who was in the possession of 85 grams of crack cocaine and was arrested on drug charges. Modeste has pled guilty to possession of a controlled substance with intent to distribute and felon in possession of firearms, and her sentencing hearing is set for July 1, 2013.
Prior to imposing sentence, Judge Gleason noted the serious nature of the offense, along with a need to deter criminal conduct, protect the public and promote respect for the law.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alaska State Troopers for the investigation of 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 Man sentenced to 18 months in prison for drug conpiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a man from Anchorage was sentenced in federal court in Anchorage for his role in an Anchorage and Fairbanks drug conspiracy.
Rock E. Phelps II, 26, a/k/a, “Skitzo Scoe,” from Anchorage, Alaska, was sentenced today by U.S. District Court Chief Judge Ralph R. Beistline. Phelps received a sentence of 18 months in prison and 3 years of supervised release. Phelps had previously pled guilty to an indictment charging him and his co- conspirators with one count of drug conspiracy.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, Phelps was a member of a drug trafficking organization in Anchorage and Fairbanks that between 2009 and February 2012, sold powder cocaine, marijuana, and oxycodone pills in Anchorage and Fairbanks. Phelps sold cocaine in Anchorage. On four occasions in February 2011, Phelps sold cocaine to a confidential informant; he possessed 70 grams of cocaine in his residence that he intended to distribute, and possessed a firearm. Phelps also facilitated the sale of cocaine between another individual and his co-conspirator DeMarr Moultrie.
Phelps and other members of the conspiracy attempted to conceal their drug trafficking by claiming they were involved in a legitimate business, specifically that they were “artists,” employees, or promoters of concerts. 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. Phelps had no record of serious or consistent employment since dropping out of high school in 2005, and only received minor, nominal payments for work as a rap recording and performance artist. The main source of his income since dropping out of high school was from the distribution of illegal narcotics in Anchorage.
Prior to imposing a sentence, Judge Beistline informed the defendant he had to take responsibility for his own actions and he needed to find some better individuals to associate with in the future.
Phelps was indicted along with 13 other members of the conspiracy located in Anchorage and Fairbanks. Christopher Anderson was previously sentenced to 14 months prison on November 2, 2012; DeMarr Moultrie was sentenced to 40 months prison on May 1, 2013; Jeraelyn Hill was sentenced to 66 months prison on May 28, 2013; and Jerry Wormley was sentenced to 36 months prison on May 31, 2013.
Donnell Johnson, Joshua Mustovich, Mihla Hall, Antonio Fleming, Dalon Johnson, Tevoris Carter, Emma Shine, and Brent Gunnels have pled guilty for their roles in connection with the conspiracy and await sentencing. Terrance Fleming has a pending trial scheduled for August 2013.
Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Postal Inspection Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of Phelps.
Illegal alien convicted of unlawful reentry identity theft and firearms possessionRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a citizen of the Dominican Republic was convicted by a federal jury of 12 criminal offenses.
Javier Martinez, 48, was convicted of 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, 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. Martinez faces first degree murder charges in state court in connection with the shooting.
The defendant testified, 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.
Martinez faces up to 20 years of imprisonment on the reentry charge because he was deported following a felony drug trafficking conviction. He faces up to ten years on the firearms charge, five years on each of the false claim of citizenship charges, and a mandatory consecutive two years prison for the identity theft charges. Chief U.S. District Judge Ralph R. Beistline set the sentencing for August 27, 2013.
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and by officers of the Anchorage Police Department.Sex offender sentenced to 15 years prison for child sexual exploitationRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Washington man was sentenced in federal court in Anchorage for advertising child pornography in Alaska.
Matthew Edward Shubart, 33, from Yakima, Washington, was sentenced yesterday by U.S. District Court Judge Timothy M. Burgess to 15 years in prison. Judge Burgess also ordered that upon release from prison Shubart will serve a lifetime term of supervised release, with specific conditions to register as a sex offender, to have no unsupervised contact with any person under the age of 18, and to participate in sex offender assessment and treatment.
According to Assistant U.S. Attorney Audrey Renschen, who prosecuted the case, Shubart used social networking and emails to advertise that he was seeking and offering to exchange, distribute and receive child pornography. Shubart admitted in his plea agreement that in 2012, he socially networked with a group of 109 members of an emailing group who traded child pornography. Shubart further admitted that on January 25, 2012, he emailed seven pictures of child pornography to an Alaska resident. Before sending the images to Alaska, Shubart remarked in his email, “I have some hidden camera pics....got lucky and got a cutie....wanna see? they were done by me, not off the internet....”
Over 800 images of child pornography were found on Shubart’s computer and email account. Several child victims who were identified in those images submitted letters describing the serious harms they had suffered as the result of being sexually exploited. Judge Burgess acknowledged those harms and the seriousness of child pornography crimes when he sentenced Shubart to the 15 year prison sentence and the supervised release for the rest of his life.
Ms. Loeffler commends Homeland Security Investigations for their extensive investigation of this case, and acknowledges the agencies persistent dedication to rescuing child victims from sexual exploitation, and pursuing the sexual predators that harm children.
Prison inmate arraigned for charges related to alleged false tax refund claims of over $275,000Read the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was indicted for one count of conspiracy to defraud the government with respect to tax claims, 12 counts mail fraud, and five counts aggravated identity theft.
John Richard Koesterman, 49, of Anchorage, Alaska, was arraigned on June 11, 2013, in Anchorage after having been indicted by a federal grand jury on April 16, 2013. Koesterman plead not guilty at his arraignment and is currently scheduled for trial beginning August 19, 2013.
According to filings with the court, between July 2009 and May 2011, Koesterman and others conspired to defraud the United States by filing false tax returns in order to obtain fraudulent tax refunds. The conspirators obtained the names and identifying information of people, many of whom were inmates at correctional facilities, without the knowledge of these individuals. Using this information, the conspirators would prepare and file false income tax returns that reported fictitious wage and withholding information. Some of the returns also reported false dependent information. Each fraudulently filed false return claimed that the taxpayer was due a refund of thousands of dollars. The returns were mailed to the IRS from Anchorage, Alaska, and from Denver and Colorado Springs, Colorado. A total of 55 false returns claiming $275,127 in fraudulent refunds were filed. These returns used the identifying information of 28 people.According to the indictment, the false returns used the conspirator’s personal addresses and Treasury checks were mailed to these addresses. In the case of direct deposits, refunds went into accounts held in the name of a conspirator. In order to cash checks, in some instances, conspirators forged Power of Attorney documents. A total of $95,568 was fraudulently obtained from the U.S. Treasury as a result of the scheme.
The identity theft charges of the indictment are the result of Koesterman using, without lawful authority and in relation to mail fraud, the means of identification of three individuals used on false income tax returns.
Koesterman’s indictment contains a forfeiture allegation which stipulates that, upon conviction, Koesterman must forfeit $5,787.75 in currency seized from a bank account and $13,751 seized from a residence.
According to Assistant U.S. Attorney Retta-Rae Randall, if convicted, Koesterman faces up to 20 years in prison and a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
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.
The Internal Revenue Service, Criminal Division, led the investigation of this case.
Togiak Man sentenced to prison for wasting Walrus and firearms violationRead the Press Release
Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that a Togiak, Alaska, resident was sentenced yesterday for his actions arising from the illegal take of a walrus on Round Island in May 2011.
Sixty M. Arkanakyak, 49, was sentenced by U.S. District Court Judge Sharon L. Gleason to a term of 30 months prison and three years supervised release. According to Assistant U.S. Attorney Steven E. Skrocki, who prosecuted the case, Arkanakyak, along with co-defendant Jessie Anariak, were indicted in December 2012. The indictment alleged that on May 9, 2011, Arkanakyak and co-defendant Anariak departed from the village of Togiak, Alaska, in a Lund skiff. After leaving Togiak, the men beached the skiff on Round Island, an island located within the Walrus Islands State Game Sanctuary and accessible to the public only by permit.
The defendant admitted that while on the beach, Arkanakyak and Anariak approached a herd of walrus which were hauled out on the beach. Arkanakyak admitted that 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. According to Arkanakyak, 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 dead 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 Marine Mammal Protection Act.In February 2013, Arkanakyak plead guilty to illegally taking of a walrus from Round Island, as well as being a felon in possession of a firearm. Jessie Anariak’s case remains pending.
U.S. Fish & Wildlife Service Special Agent in Charge, Stanley Pruszenski stated, “The U.S. Fish and Wildlife Service takes the wasteful killing of walrus solely for their tusks very seriously. This sentence reflects the seriousness of the offense. We hope this sentence deters others from similar acts of wastefulness.”
Ms. Loeffler commends the U.S. Fish and Wildlife Service Office of Law Enforcement, Refuge Law Enforcement and Alaska Wildlife Troopers who investigated this case.Nenana Man sentenced to six months in prison for illegal wildlife traffickingRead the Press Release
Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that a Nenana, Alaska, resident was sentenced for violating federal wildlife laws, including the Lacey Act, the Marine Mammal Protection Act and the Migratory Bird Treaty Act.
Miles W. Martin, 61, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline to six months in prison. He pled guilty in March 2013, to four counts of a twenty-eight count indictment which charged Martin with wildlife trafficking involving the illegal sale of migratory birds, smuggling of wildlife, illegal sale of marine mammal parts and conspiracy
Along with his prison sentence, Martin’s sentence banned him from selling wildlife parts for life, required him to relinquish to the United States more than 900 pounds of wildlife parts including lion, bear, walrus ivory, parts of seal, polar bear parts, and elephant ivory, and to pay a fine of $6,500. He also received three years supervised release following his prison term.
Martin admitted to being involved in a lengthy and long term walrus ivory smuggling conspiracy, as well as to being involved in the smuggling of wildlife parts world-wide, and to the illegal sale of migratory bird parts.
Regarding his involvement in illegal walrus ivory sales, Martin admitted that from at least February 2010 and continuing up to March 9, 2011, he conspired with others to illegally purchase walrus tusks and walrus parts for illegal resale, transport, and export from the United States. Between July 2010 and March 2011, Martin’s two co-conspirators traveled to Savoonga, Alaska, and purchased walrus tusks and parts taken from animals recently killed and tagged by individuals in Savoonga. The co-conspirators transported the walrus tusks and parts to their home in Glennallen, Alaska, and then transported some of those tusks and parts to Nenana, Alaska and Fairbanks where they transferred them to Martin. In August 2010, and as part of the conspiracy, Martin paid $2,138 for the airline tickets and gave $1,000 cash to the co-conspirators for their trip. Approximately 275 pounds of walrus tusks were purchased on that trip. In exchange for financing that trip, Martin received raw walrus tusks from the co-conspirators, and later illegally sold some of those tusks.
Martin illegally purchased at least 26 walrus tusks from the two co-conspirators who provided Martin with bogus “gift” letters, attempting to disguise Martin’s illegal purchase of the walrus ivory. Martin and the other co-conspirators also attempted to dye the walrus tusks to make the tusks look like fossil ivory in an effort to conceal the illegality of the walrus tusk purchases and sales. Martin’s plea agreement also detailed the sale of a walrus head (with tusks) to a customer in Argentina, and the smuggling of the walrus head out of the United States without the proper customs permits.
He also admitted the illegal sale of marine mammal parts to an undercover agent including: 20 seal claws; one polar bear tooth; one tooth offered for sale as a whale tooth which was a tooth of a seal or sea lion; polar bear teeth; fur; and various migratory bird parts.Martin further admitted that in August 2010, he knowingly exported walrus ivory from Alaska to a customer in Denmark contrary to federal law, including the Convention on International Trade in Endangered Species and the Endangered Species Act. Martin on numerous occasions between May 2009 and April 2011, unlawfully sold and exported wildlife such as wolf, lion, lynx, and walrus parts, to customers outside the United States including the Czech Republic, United Kingdom, Italy, Australia, Belgium, Argentina, Denmark, Japan, Canada, Finland, Norway, Brazil, and Germany. Between May 2009 and April 2011, Martin exported at least 30 packages of wildlife parts without obtaining an export license, an International Trade in Endangered Species export permit or the necessary wildlife export documentation.
Between February 2007 and November 2012, Martin illegally purchased, sold, and exported wildlife parts and engaged in approximately 225 transactions totaling approximately $58,000.
As noted in his sentence, Martin relinquished to the U.S. Fish and Wildlife Service more than 900 pounds of wildlife parts kept in his home. These parts included walrus parts, seal teeth, bear parts, bird parts, whale parts, and walrus ivory tusk tags from recently killed walrus, Some of the ivory tusk tags were still attached to small chunks of ivory, some of which had been dyed in order to make the raw ivory appear to be fossilized ivory and thus not prohibited for sale by the Marine Mammal Protection Act.
In court, Martin stated that his access to the internet facilitated his illegal wildlife trafficking and that he was out of the wildlife business for the rest of his life.
Karen Loeffler, United States Attorney for Alaska, noted that protection of our spectacular and special Alaskan wildlife and enforcement of the laws that govern and protect access to these animals is an important priority for law enforcement.
Stan Pruszenski of the U.S. Fish and Wildlife Service Office of Law Enforcement said, “Significant wildlife violations require significant punishment. This sentence will serve to deter others similarly inclined.”
Ms. Loeffler commends the U.S. Fish and Wildlife Service Office of Law Enforcement for the investigation of this case and the assistance provided from the Alaska Wildlife Troopers and the National Park Service.
Anchorage Man convicted of identity theft sentenced to 54 months in prisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that an Anchorage man was sentenced for uttering and possessing counterfeited securities, unlawful production of false identification documents, unlawful possession of five or more false identification documents, illegal transactions with an access device, possession of stolen mail, and being a felon in possession of a weapon.
Michael Duane Rogers, 43, of Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon Gleason to 54 months in prison. Rogers was ordered to pay $142,855.06 in restitution.
According to Assistant U.S. Attorney Retta Randall, who prosecuted the case, the indictment indicated that beginning in late 2007 and continuing through 2009, Rogers engaged in the unlawful production of counterfeit checks and false identification documents, specifically United States military identification cards and Alaska State driver’s licenses. By using the false identification documents, Rogers defrauded several area businesses by purchasing merchandise and services with the counterfeit checks. He also defrauded businesses by using stolen checks and stolen access devices. The indictment further indicated that Rogers also possessed mail stolen from the United States mail. A previously convicted felon, Rogers was also charged with being in possession of a firearm illegally.
Judge Gleason discussed the egregiousness of Rogers’s acts and the impact on his 188 victims. The financial harm was significant in itself, but many of his victims, who lived paycheck to paycheck, were harmed by the resulting over-draft fees and late payment fees which impacted not only their bank accounts, but potentially their credit ratings.Ms. Loeffler commends the Anchorage Police Department and the United States Postal Inspection Service for the investigation of this case.
Two of five co-defendants convicted of embezzling from Trident Seafoods sentenced to eight months and 28 months in prisonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Kodiak man and a woman from Corpus Christi, Texas, were sentenced for their role in embezzling over half a million dollars from Trident Seafoods.
Valerie Olivares, 35 of Corpus Christi, Texas, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline, to eight months prison for her role in aiding Isairis Wolfe in embezzling $45,000 from Trident Seafoods.
Jeremy Smith, 31 of Kodiak, Alaska, was also sentenced today by Judge Beistline to 28 months prison for his role in aiding Wolfe in embezzling $128,400 from Trident Seafoods.
According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, from January 2008, and continuing until August 2010, the lead defendant Isairis Wolfe used her position as the book keeper for Trident Seafoods in Kodiak, Alaska, to write Trident checks to four of her personal associates: Anne Wilson; Jeremy Smith; Valerie Olivares; and Jamie Fathke. Wolfe, using her check writing authority at Trident, drafted approximately 52 checks on a Trident account for approximately $500,000, and made them payable to her personal associates Wilson, Smith, Olivares, and Fathke, as well as to Wilson's minor son L.E. The checks were negotiated by Wolfe and her associates and they shared the proceeds. Wolfe concealed the fraud by creating fraudulent accounting records so that the payments appeared to be legitimate.
During the three-year scheme, Smith negotiated 16 fraudulent checks, taking a break from the scheme only while he was incarcerated on unrelated weapons charges in 2009. Olivares negotiated three fraudulent checks. Smith and Olivares kept half of the money from the fraudulent checks and provided the remaining half to Wolfe. The scheme came to an end when Wolfe was fired from Trident Seafoods for performance related reasons and was no longer in a position to write the fraudulent checks. The scheme was not discovered until after Wolfe was fired and a review of the books and records was conducted by Trident.
The leader of the scheme, Isairis Wolfe, is scheduled for sentencing on June 11, 2013. Jamie Fathke was sentenced on January 9, 2013, to four months jail for her role in aiding Wolfe in embezzling $30,000 from Trident Seafoods. Anne Wilson was sentenced on March 21, 2013, to 16 months prison for her role in aiding Wolfe in embezzling $289,000 from Trident Seafoods.
Ms. Loeffler commends the FBI for the investigation of this case.
Local Juneau Buisness Owner sentenced to 42 months in prison for her role in drug conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a local Juneau business owner was sentenced, May 31, 2013, in Juneau to federal prison for drug conspiracy.
Gema G.Thomas, 50, of Juneau, Alaska, was sentenced May 31, 2013, by U.S. District Court Judge Timothy M. Burgess to 42 months prison for her role in a drug trafficking conspiracy. Her co-conspirator Darrell W. Dawson was previously sentenced to 170 months in January 2013, for his role in the drug trafficking conspiracy.
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, United States Postal Inspection Service, and the Juneau Police Department-Drug Metro Unit, which were investigating the importation of heroin into Juneau, Alaska, using United States Postal Service (USPS) Express Mail Parcels.In July 2012, Dawson and Thomas conspired to transport methamphetamine from the lower 48 to Juneau, Alaska. Dawson provided Thomas $15,000 in drug proceeds for the purchase of six ounces of methamphetamine to be delivered to her business, Peer-Amid Beads, from her source of supply located in the lower 48 via USPS Express Mail. Once received, Thomas then delivered the methamphetamine to Dawson who distributed the methamphetamine to others in the Juneau area and collected drug proceeds for future payment to Thomas for an additional six ounces of methamphetamine.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense and the need to deter the defendant and others as reasons for imposing the 42 month prison sentence.
Ms. Loeffler commended the Drug Enforcement Administration, United States Postal Inspection Service, and the Juneau Police Department - Drug Metro Unit for the investigation leading to the successful prosecution of Thomas and Dawson.
Juneau Man sentenced to 30 months in prison and co-conspirator pleads guilty 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.
Joshua River Riley, 37, of Juneau, Alaska, was sentenced May 31, 2013, by U.S. District Court Judge Timothy M. Burgess to 30 months prison for his role in a drug trafficking conspiracy. Co-conspirator Bradley Arin Bethel subsequently pled guilty to his role in the drug trafficking conspiracy and is scheduled to be sentenced on August 26, 2013.
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, which were investigating the importation of heroin into Juneau, Alaska.Between October 2012, and continuing through November 2012, Riley and his co-conspirator Bethel 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 Riley 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 of 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 30 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.Fairbanks Man sentenced to 36 months prison in drug conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a man from Fairbanks, Alaska, was sentenced in federal court in Anchorage for his role in an Anchorage and Fairbanks drug conspiracy.
Jerry Wormley, 34, a/k/a, “Two-Tone,” was sentenced today by U.S. District Court Chief Judge Ralph R. Beistline. Wormley received a sentence of 36 months prison, three years supervised release, and agreed to pay a $24,000 money judgment to the United States. Wormley had previously pled guilty to an indictment charging him and his co-conspirators with one count of drug conspiracy.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, Wormley was a member of a drug trafficking organization in Anchorage and Fairbanks that between 2009 and February 2012, sold powder cocaine, marijuana, and oxycodone pills in Anchorage and Fairbanks. Wormley sold cocaine in Fairbanks and he would purchase larger quantities of cocaine from other members of the conspiracy and then redistribute the cocaine in Fairbanks. Wormley also acted as a courier for other members of the conspiracy, transporting cocaine from Anchorage to Fairbanks.
Wormley and other members of the conspiracy attempted to conceal their drug trafficking by claiming they were involved in a legitimate business, specifically that they were “artists,” employees, or promoters of concerts. 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. Wormley had no record of serious or consistent employment since dropping out of high school in 1996, but claimed ownership of a fledgling music promotion company called JG Productions in Fairbanks. This company had previously been a part of one minor concert promotion in Fairbanks, but it was clear Wormley’s sole source of income for many years was the distribution of cocaine in Fairbanks.
Prior to imposing a sentence, Judge Beistline noted that selling drugs poisons the community and he characterized Wormley as a “nice guy drug dealer”. Judge Beistline further acknowledged the community and family support Wormley had received prior to sentencing, but criticized the choices the defendant had made to distribute cocaine in the community.
Wormley was indicted along with 13 other members of the conspiracy located in Anchorage and Fairbanks. Christopher Anderson was previously sentenced to 14 months prison on November 2, 2012, DeMarr Moultrie was sentenced to 40 months prison on May 1, 2013 and Jeraelyn Hill was sentenced to 66 months prison on May 28, 2013. Donnell Johnson, Joshua Mustovich, Mihla Hall, Antonio Fleming, Dalon Johnson, Tevoris Carter, Rock Phelps, Emma Shine, and Brent Gunnels have pleaded guilty for their roles in connection with the conspiracy and await sentencing. Terrance Fleming has a pending trial scheduled in August 2013.
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 Wormley.