District of Alaska

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that two men have been charged with stealing 36 firearms from an Anchorage gun dealer, EDC Alaska, during a Sept. 7, 2017, burglary on Northern Lights Blvd. that was captured on multiple surveillance systems. 

 

Seth Kaufman, 31, and Christopher Kratsas-Derr, 27, are charged with theft of firearms from a licensed dealer.  Kaufman is also charged with possessing some of the stolen firearms a few days later, on Sept. 11, 2017.

 

A complaint filed in the case alleges that police received a report of a burglary of EDC Alaska at 6:51 AM on Sept. 7, 2017.  Thirty-six firearms had been stolen by two individuals who backed up a black pickup in front of the business, made entry, and left with three dozen guns.  Surveillance video showed that one of the burglars was wearing grey/black shoes with white trim, while the other wore grey sweatpants and brown ankle boots with white trim. 

 

EDC Alaska’s owners recalled a suspicious customer from days before.  After reviewing the video of that interaction, police were able to identify the suspicious customer as Kaufman. 

 

According to the complaint affidavit, police subsequently received a tip indicating that Kaufman and “Chris” committed the burglary, and that they had subsequently offered the guns for sale while staying at Microtel.  Review of prior arrest information revealed that Kaufman and Christopher Kratsas-Derr were arrested together for a different theft crime on June 2, 2017, yet neither was in custody during the Sept. 11, 2017, burglary of EDC Alaska.     

 

The complaints against Kaufman and Kratsas-Derr also note that on Sept. 11, 2017, APD officers made contact with Kaufman at Motel 6 in Anchorage.  Kaufman was apprehended after fleeing out the second story window of room 209.  Near that same window, law enforcement agents found four of the firearms stolen from EDC Alaska, along with grey/black shoes with white bottom trim.    

 

Law enforcement officers also reviewed surveillance footage from Microtel, which showed an individual wearing grey sweatpants and brown ankle boots with white trim.  That individual was subsequently identified as Christopher Kratsas-Derr.

 

Both Kaufman and Kratsas-Derr have been arrested and were initially charged with multiple crimes by the State of Alaska.  Kratsas-Derr’s arraignment on the federal indictment is set for 9:30 AM on Tuesday, Sept. 26, 2017, while Kaufman’s is set for 11:30 AM the same day. 

 

The law provides for a maximum sentence of 10 years in prison and a fine of up to $250,000 for the charges listed in the complaint.  Additionally, defendants can also be required to pay restitution to the victims in this case.  Under the federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants. 

 

The Anchorage Police Department (APD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation that led to the charges in this case. 

 

ATF advises that most of the firearms stolen from EDC Alaska have not been recovered.  Anyone with information regarding the whereabouts of the remaining firearms are encouraged to call 1-888-ATF-TIPS.

 

Charges contained in a complaint or indictment are merely allegations.  Every defendant is presumed innocent until proven guilty beyond a reasonable doubt. 

Juneau, Alaska – Acting U.S. Attorney Bryan Schroder announced today that on Friday, Sept. 22, 2017, a federal jury of six women and six men convicted a Juneau man of receipt of child pornography.

 

Jim Wayne Thornhill, 40, of Juneau, was found guilty after a three-day trial before Chief U.S. District Judge Timothy M. Burgess.  Sentencing has been scheduled for Nov. 30, 2017, in Juneau.  Thornhill faces a maximum penalty of no less than 15 years and up to 40 years in prison, a fine of $250,000, a five-year to life term of supervised release, and a $100 special assessment.  Thornhill is a convicted sex offender, who was convicted by the State of Alaska for sexual abuse of a minor in the second degree in 2007, where he had repeatedly sexually abused a child from the age of six to 11.  

 

According to the evidence presented at trial, the Federal Bureau of Investigation (FBI) received a report of harm forwarded from the National Center for Missing and Exploited Children (NCMEC) and the Internet Crimes Against Children (ICAC) to the Juneau Police Department.  The FBI subsequently identified Thornhill as a person of interest.  

 

On Oct. 7, 2015, Thornhill was contacted by the FBI and was interviewed, where he denied having a cell phone.  The FBI learned that Thornhill’s employer located a cell phone and handwritten lists with search terms and internet addresses that were associated with child pornography.  The FBI subsequently interviewed Thornhill again on Oct. 13, 2015, where he admitted to writing the handwritten lists of search terms, ownership of the cell phone, and accessing the Internet with the cell phone between September and November 2014.  He claimed he was looking for adult and child pornography that were “just naked kids.”   Based on this information, the FBI obtained a search warrant for Thornhill’s cell phone which revealed at least 100 images of child pornography that were downloaded between the dates of Nov. 3, 2014, through Dec. 25, 2014.  Many of the images were of young pre-pubescent children engaged in sexually explicit conduct, including images that depicted an adult male sexually assaulting a toddler.

 

The FBI investigated this case, with assistance from the Juneau Police Department.  Assistant U.S. Attorney Jack Schmidt, located in the Juneau Branch Office, prosecuted this case.

 

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood, U.S. Marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that a graduation ceremony was held today for Rashad Arnsworth, 38, of Anchorage, for his completion of the 18-month long federal reentry program, known as Alaska Hope Court.

 

The Hope Court was established in May 2015 through an order of the District Court of Alaska.  The Hope Court team members include the United States Attorney’s Office, the United States District Court, the Office of the Federal Defender, and the United States Probation Office. 

 

The Hope Court has received invaluable assistance from community partners including Partners for Progress, Partners Reentry Center, Cook Inlet Tribal Council, Alaska Native Justice Center and the Alaska Wellness Court Alumni Group, according to Chief U.S. Magistrate Judge Deborah M. Smith, presiding judge of the court.  Each of these organizations are essential to the success of the Hope Court participants, according to Judge Smith.

 

Mr. Arnsworth met the following graduation requirements of Hope Court, which are demanding and are aimed at building life skills:

 

• Complete Moral Reconation Therapy, an evidence-based program designed to build life skills and critical thinking;
• Obtain stable housing;
• Obtain and maintain stable employment, ideally employment that can lead to a career unless excused by Probation;
• Successfully complete any recommended substance abuse treatment;
• Successfully complete any recommended counseling;
• Complete approximately 60 hours of a volunteer project of their choice to “give back” to the community; and
• Complete at least 18 successful months in Hope Court with six months of continuous sobriety before graduation. 

 

Because Mr. Arnsworth successfully graduated from the program, the Hope Court team recommended to U.S. District Judge Sharon Gleason that Mr. Arnsworth receive a 15-month reduction in his period of supervised release.  Judge Gleason accepted the recommendation.

 

Judge Smith noted: "Mr. Arnsworth has turned his life around. He has successfully graduated and did it in record time. He has quietly set an example for others and always been willing to assist other court participants." Mr. Arnsworth was recently hired as a peer counselor with Cook Inlet Tribal Council.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Sylvia Toolie, 60, and her sister, Peggy Akeya, 57, of Savoonga, Alaska, were sentenced by Chief U.S. District Judge Timothy M. Burgess for embezzling funds from the Native Village of Savoonga (“Native Village of Savoonga” or “the Tribe”), which is located on St. Lawrence Island.

 

Toolie was sentenced yesterday to serve eight months in prison, followed by three years of supervised release. Akeya was sentenced on Tuesday, Sept. 12, to a term of five years’ probation, three months’ home confinement, and 120 hours of community service. Toolie and Akeya were ordered to pay restitution to the Native Village of Savoonga in the amounts of $69,563.07 and $14,855.81, respectively. Judge Burgess also ordered Akeya to record statements for a public service announcement to raise awareness of the consequences that follow from embezzling tribal government or other public funds.

Between April 2011 and May 2012, Toolie and Akeya stole from the Tribe using their positions of trust to do so. Toolie was a full-time salaried employee of Kawerak, Inc. (“Kawerak”) who was assigned to serve as the Native Village of Savoonga’s tribal coordinator. (Kawerak is a regional non-profit corporation that provides services to tribes in the Bering Straits region.) In her position, Toolie handled the day-to-day operations of the Tribe’s office and other duties, including grant reporting and managing accounts receivable, accounts payable, and payroll. She was also entrusted with ensuring that funds provided to the Tribe were used and accounted for properly. Absent Kawerak’s prior approval, Toolie was not permitted to be paid by the Tribe at all. Toolie nevertheless used her position of trust to obtain numerous unauthorized checks from the Tribe. In all, Toolie tried to fraudulently obtain roughly $83,000 of the Tribe’s funds, and actually pocketed $69,563.07.

Akeya used her position as Secretary and unofficial bookkeeper to sign numerous unauthorized checks to herself and others that were drawn on the Tribe’s bank accounts. Akeya tried to fraudulently obtain over $25,000 in funds, and actually obtained $14,655.96.

By approximately mid-November 2011, the Tribe had run out of money despite receiving considerable federal funding in 2011. When a large check that the Tribe issued was returned for insufficient funds, that creditor made inquiries, which ultimately led to the underlying investigation and proof that the Tribe’s funds had been misappropriated for years by Toolie, Akeya, and others. For example, the investigation revealed that the funds that Toolie and Akeya embezzled were supposed to pay for, among other things, repairs to homes and public buildings in Savoonga damaged during a severe December 2010 winter storm that prompted the State of Alaska to issue a disaster declaration. Due to the suspicious payments and the Tribe’s inability to account for millions of dollars in federal funding, the Department of the Interior, Bureau of Indian Affairs (BIA) has withheld funding from the Native Village of Savoonga since fiscal year 2012.

In sentencing Toolie, Judge Burgess underscored the “exponential impact” that these crimes had on Savoonga, and he was sentencing Toolie to serve eight months in prison in part to send a clear message that stealing tribal or public funds will be met with “significant [and] serious consequences that include going to jail.”

This case was investigated by the Federal Bureau of Investigation (FBI) and the United States Department of Housing and Urban Development, Office of Inspector General (HUD OIG).

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a Kenai man was sentenced in federal court in Anchorage for trafficking methamphetamine and possession of an illegal firearm while being a felon.

 

Richard Paul Morrison, 37, of Kenai, Alaska, was yesterday by Chief U.S. District Judge Timothy M. Burgess to serve 63 months in federal prison, followed by three years of supervised release.

 

According to Assistant U.S. Attorney Jonas Walker, Morrison was previously convicted of felony forgery in Oregon in 2000, and of a methamphetamine-related offense in Nebraska in 2004. In January 2016, a confidential informant bought methamphetamine from Morrison three times. Morrison was operating out of his garage in Kenai, where he kept a 12 gauge shotgun with its barrel sawed-off to be less than 18 inches long. Morrison admitted he kept it to protect the methamphetamine.

 

Morrison is also charged in state court with causing the death of a Soldotna man in December 2015 by unlawfully giving him methadone. The Kenai District Attorney’s Office is prosecuting Morrison regarding the methadone-related death. According to the plea agreement in the federal case, which was coordinated with the Kenai District Attorney’s Office, Morrison will plead guilty in the state case to criminally negligent homicide and receive a sentence of four years, which will be consecutive to his sentence in the federal case. According to Courtview, that case, 3KN-16-843CR, is scheduled for a change of plea hearing on Oct. 12, 2017.

 

Judge Burgess commented that Morrison committed a “very serious offense” and was a former drug dealer who “got back into it with a bang.” The court found that Morrison was “an absolute danger” to the community and that protecting the public was the most important sentencing factor.

 

This was a joint state and federal case. Morrison’s crimes were investigated by the Alaska State Troopers (AST), Alaska Bureau of Investigation and Statewide Drug Enforcement Unit, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The State of Alaska and the U.S. Attorney’s Office coordinated the joint prosecutions.

 

Acting U.S. Attorney Schroder thanks the Alaska Department of Public Safety and the Kenai District Attorney’s Office for their cooperation in this case.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a federal grand jury in Anchorage has returned a series of indictments charging individuals with fentanyl trafficking and other criminal offenses. Fentanyl, sometimes known on the street as “Grey Death,” is a powerful opioid that is up to 50 times more powerful than heroin. The Drug Enforcement Administration (DEA) has issued nationwide alerts on fentanyl as a threat to health and public safety, as well as to law enforcement officers, who were warned by DEA two months ago to take extreme precautions when handling fentanyl, because exposure to an amount equivalent to a few grains of sand can result in death.

 

In the recently indicted cases, Sergio Jauna Devoe, 27, of Anchorage, was charged with possession with the intent to distribute quantities of methamphetamine and fentanyl, on or about May 5, 2017. Devoe was also charged with possession of a firearm in furtherance of a drug trafficking crime. If convicted, Devoe faces a mandatory minimum ten-year sentence, with a maximum of life imprisonment.

 

Misty G. Thomas, 25, of Anchorage, was charged with possession with the intent to distribute quantities of methamphetamine and fentanyl, on or about Oct. 6, Oct. 7, and Nov. 9, 2016. If convicted, Thomas faces a mandatory minimum of five years in prison, and a maximum sentence of 40 years in prison. Thomas was also charged in a separate indictment for fraudulent activity in connection with identification documents. According to the indictment, on or about Feb. 18, 2017, Thomas knowingly posed as “E.B.” to a Fred Meyer employee, a licensed dealer of firearms, and used E.B.’s identification to falsely purchase three firearms. If convicted, Thomas faces a maximum of ten years in prison on the firearm charges, as well as a mandatory consecutive two-year sentence based on the theft of “E.B.’s” identity to purchase the firearms.

 

Finally, Charles Jeffery Mosley, Jr., 36, of Anchorage, was charged with possession with the intent to distribute over 100 grams of heroin, on or about July 12, 2017. Mosley was also charged for being a felon in possession of a firearm, and for possession of a firearm in furtherance of a drug trafficking crime. Mosley faces a mandatory minimum ten-year sentence.

 

Acting U.S. Attorney Bryan Schroder stated, “For Americans under the age of 50, drug overdoses are the leading cause of death. The trafficking of fentanyl can only worsen this tragedy. We are thankful to be able to work collaboratively with our state and local partners – not just in prosecuting the traffickers of opioids, but also in finding solutions to this epidemic. These solutions include prevention and education efforts, as well as task forces that include medical and health professionals.”

 

These cases are being handled by Special Assistant U.S. Attorney James Stinson, who is an Anchorage municipal prosecutor. Since 2007, the Municipality of Anchorage has assigned prosecutors to the U.S. Attorney’s Office to work on cases that have direct impact on the safety of Anchorage residents, such as drugs, guns, and violent crime. The Anchorage District Attorney’s Office also participated in the prosecution and referral of the cases, which were investigated by the Anchorage Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

 

An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that Philip Drake Kneeland, 34, d/b/a Tobacco Distress, Inc., at mile 91.5 of the Sterling Highway in Soldotna, Alaska, was sentenced to 70 months in prison for distributing Spice and possessing a firearm in furtherance of Spice trafficking.

 

In addition to his prison sentence, Chief U.S. District Judge Timothy M. Burgess ordered Kneeland to forfeit to the United States approximately $75,400.00, a 2014 GMC truck, and 4 firearms. The Spice distributed by Kneeland contained “cannibimimetic agents,” including compounds JWH-18 and JWH-073, in violation of federal controlled substances law. Judge Burgess also ordered that Kneeland perform 200 hours of community service upon his release from prison, because Kneeland’s sales triggered an epidemic of Spice-related law enforcement responses on the Kenai Peninsula, including emergency room visits, suspected suicides and DUIs, severely impacting the community. The Court heard testimony from a local resident and local law enforcement that the Spice epidemic on the Kenai Peninsula has essentially disappeared since Kneeland’s arrest.

 

Kneeland pled guilty on March 6, 2017, to possession of synthetic cannabimimetic agents with intent to distribute and possession of a firearm during and in relation to a drug trafficking crime, stemming from a search of Tobacco Distress on Oct. 31, 2015.

 

As widely reported in the summer of 2015, Anchorage experienced an explosion of Spice overdose emergency calls which strained first responders and claimed many victims. In the fall of 2015, Kenai Peninsula residents openly protested Kneeland’s Spice sales outside the Tobacco Distress premises, carrying signs saying “SPICE KILLS.”

 

As explained by the Indictment in the case, “Spice” is a generic term for smokeable synthetic cannibinoids, which are manufactured by dissolving psychotropic drugs, compounds such as JWH-18 and JWH-073, in acetone and spraying it on plant material.

 

Acting U.S. Attorney Schroder complimented the investigation of the case, which was conducted by DEA, the Internal Revenue Service Criminal Investigation (IRS-CI), the Kenai Police Department, and the Alaska State Troopers Statewide Drug Enforcement Unit based on the Kenai Peninsula.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Jafari Lewis-Daniel, 22, and his brother, Jarron Lewis-Daniel, 23, of Anchorage, were sentenced yesterday by U.S. District Judge Timothy M. Burgess for their roles in an armored car robbery in December 2014.

 

Jafari Lewis-Daniel pleaded guilty to aiding and abetting a bank robbery, and was sentenced yesterday to serve 69 months in prison followed by three years of supervised release. Jarron Lewis-Daniel pleaded guilty to misprision of a felony, and was sentenced yesterday to serve 18 months in prison, followed by one year of supervised release.

 

In mid-December 2015, Jafari Lewis-Daniel met with at least two individuals and learned of a plan to rob an armored car. He allowed his white Impala to be used during the robbery, which occurred on Dec. 23, 2015. At least three individuals drove in his white Impala to a Wells Fargo Bank in Anchorage. After the armored car arrived at the bank to deliver money, two men jumped out of Jafari Lewis-Daniel’s vehicle and approached the armored car drivers. One of the robbers pointed a gun at the armored car driver while a second person grabbed a bag of money that was being delivered to the bank. At least one other individual drove away from the bank in Jafari Lewis-Daniel’s vehicle. total, the robbers stole over $230,000. Following the robbery, Jafari Lewis-Daniel and Jarron Lewis-Daniel met with others involved in the robbery and received a cut of the stolen money.

 

Federal Bureau of Investigation (FBI) special agents and Anchorage Police Department (APD) detectives analyzed security video from Wells Fargo to identify Jafari Lewis-Daniel’s Impala. Additional investigation identified multiple cash purchases made by the brothers. These included two vehicles and a motorcycle. The brothers also purchased multiple electronic devices, televisions, and jewelry.

 

Law enforcement officials executed a search of the apartment the brothers shared in January 2015. During the search, FBI agents found a gun and $18,400 in a duffel bag outside Jafari Lewis-Daniel’s bedroom window. Jafari Lewis-Daniel threw this money out the window when he heard police knocking at his door. In Jarron Lewis-Daniel’s room was $26,000 and a gun. In a third bedroom was nearly $50,000 in loose cash.

 

In pronouncing the sentences, Judge Burgess emphasized the serious of the crime. “This was a serious crime…this was a robbery of an armored car with armed guards. This could have been disastrous,” said Judge Burgess. Judge Burgess also described the impact this crime had on the victims. “This was a life changing event for the people who had guns stuck in their faces,” said Judge Burgess. “[The victims] can’t do the job they did before because they worry they might end up dead. This has real consequences,” said Judge Burgess. Judge Burgess acknowledged that there remained significant questions surrounding the defendants’ involvement in the robbery, including the identity of the other individuals involved.

This case was the product of an investigation by the FBI and APD. Assistant U.S. Attorney Kyle Reardon prosecuted the case.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that four individuals associated with drug trafficking in Kodiak have been indicted by a federal grand jury for various drug trafficking and related crimes:

 

• Christopher Arndt, 38, is currently charged with distribution of methamphetamine, drug conspiracy, and money laundering conspiracy, and was arrested in Kodiak on Aug. 18, 2017;

• Santos Lopez, 41, is currently charged with distribution of methamphetamine, and was arrested in Kodiak on Aug. 23, 2017;

• Leigh Ann Massengill, 42, is currently charged with distribution of methamphetamine, drug conspiracy, and money laundering conspiracy, and was arrested in Anchorage on Aug. 30, 2017;

• James Gerrity, 30, is currently charged with drug conspiracy and remains at large.

 

In connection with this investigation, a federal grand jury has previously indicted four other individuals for drug trafficking and firearms crimes from Kodiak:

 

• Ann L. Vega, 40, is currently charged with possession of methamphetamine and heroin with intent to distribute;

• Nathan Gambrell, 44, is currently charged with felon in possession of firearms;

• Jose Alberto "Bird" Rodriguez, 30, is currently charged with attempted possession of methamphetamine with intent to distribute, and possession of methamphetamine with intent to distribute;

• Wahyu "Kodiak Mike" Sanjoyo, 36, is currently charged with possession with intent to distribute methamphetamine, heroin, and cocaine, distribution of methamphetamine, and possession of firearms in furtherance of a drug trafficking crime.

 

The Federal Bureau of Investigation, Coast Guard Investigative Service, Internal Revenue Service-Criminal Investigation, Alaska State Troopers, Kodiak Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives have been working together to investigate these matters and to combat drug trafficking and violent crime in Kodiak.

 

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, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a federal grand jury in Anchorage has returned an indictment charging Jeffrey Harris, 44, from Poulsbo, WA, Dale Lackner, 72, from Haines, AK, and Casey Richardson, 47, from Huson, MT, with conspiring to provide illegal hunts for Dall Sheep, creating false records, and making false statements to federal agents in order to conceal the illegality of the hunts. Charges were also filed for illegally baiting game, and using xylitol, a substance toxic to wolves and coyotes, for predator control. All of the hunts occurred at the Ptarmigan Lake Lodge in Wrangell-St. Elias National Park and Preserve.

 

According to the indictment, Ptarmigan Lake Lodge (PLL) was permitted to operate as a concessionaire to provide sport hunting guide services within Wrangell-St. Elias National Park and Preserve. The indictment alleges that, during the 2014 and 2015 hunting seasons, out-of-state hunters illegally hunted and killed Dall Sheep at PLL without being accompanied by a registered guide. Harris and Richardson, not Alaska residents nor registered guides, are charged with illegally hunting themselves and conducting many of the illegal hunts. Lackner, a registered guide in 2015, conspired with Richardson to conduct an illegal hunt. The indictment further alleges that Harris and Lackner created false State of Alaska hunt records claiming the hunts were conducted with registered guides. Harris later made false statements to law enforcement during the investigation into the illegal activities at PLL.

 

In addition, the indictment alleges that Harris also engaged in illegal predator control by establishing bait piles. Richardson and Harris then used xylitol, an artificial sweetener in many food products, but deadly to canines and birds, on the bait piles to kill wolves and coyotes; such conduct is prohibited on a national preserve.

 

The law provides for a maximum sentence of five years in prison, and a $250,000 fine, or both. Under federal sentencing statutes, the actual sentences imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.

 

It is lawful to hunt in a federal preserve if in compliance with federal and state laws.

 

The U.S. Fish and Wildlife Service, the National Park Service, the State of Alaska Wildlife Troopers, and the Montana Department of Fish, Wildlife and Parks conducted the investigation leading to the indictment in the case.

 

An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that six Anchorage residents were charged in a 29-count indictment alleging that the six conspired to obtain checks stolen from the mail and vehicle break-ins, and then they negotiated the stolen checks at different banks and stores in Anchorage.

 

Sara James, 30, Jonathan James, 34, David Gonzales, 36, Brandon Madrid, 28, Braden Asbury, 20, and Karri Embach, 34, all of Anchorage, were charged in a 29-count indictment that includes charges of conspiracy, bank fraud, possession of stolen mail, aggravated identity theft, and passing counterfeit money.

 

According to Assistant U.S. Attorney Aunnie Steward, who presented the case to the grand jury, from August 2016 to May 2017, Sara James and Jonathan James conspired together with Gonzales, Madrid, Asbury, and Embach to negotiate checks stolen from the mail and from vehicle break-ins that were falsely altered. Most of the stolen checks were falsely altered to make the payee a separate stolen identity that was used by the defendants to negotiate the stolen checks. The defendants negotiated the stolen and falsely altered checks at banks and stores throughout Anchorage. Sara James and Jonathan James also passed counterfeit money to make a purchase on Craig’s List.

 

Sara James and Jonathan James are scheduled to appear in court today on the charges, at 1:00 p.m. and 1:30 p.m., respectively. Gonzales, Madrid, Asbury and Embach remain fugitives at this time.

 

The law provides for a maximum sentence of 30 years in prison and a fine of $1 million or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

 

The Anchorage Police Department and the United States Postal Inspection Service conducted the investigation leading to the indictment in this case, with assistance from the Palmer Police Department, investigators from the State of Alaska Department of Revenue, and the Anchorage District Attorney’s Office.

 

An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a federal grand jury in Anchorage has returned an indictment charging Timmy Lloyd Inga, 55, of Anchorage, with being a prohibited person in possession of a firearm and ammunition. Inga was previously convicted of a misdemeanor domestic assault charge in 2015 and he is therefore prohibited under federal law from possessing a firearm or ammunition.

 

According to the indictment, on or about June 28, 2017, Inga was found to be in possession of two SKS type 7.62x39mm semi-automatic rifles as well as ammunition. If convicted, Inga faces a statutory maximum of ten years in prison.

 

According to the FBI, there were 42 domestic violence homicides in Alaska from 2003 to 2012. Of those homicides, 50 percent were committed with guns. Of the 103 female homicide victims in Alaska from 2003 to 2012, 27 were killed as a result of a domestic violence incident. Data gathered from the FBI’s Supplementary Homicide Report for 2014 indicates that 91 percent of female homicide victims from that year knew their assailant. Of those women, 40 percent were wives, girlfriends, ex-wives or common-law wives.

 

This indictment was the result of a close partnership between the Municipal Prosecutor’s Office, the U.S. Attorney’s Office, the Anchorage Police Department (APD), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). This case is being handled by Special Assistant U.S. Attorney James Stinson, who is an Anchorage municipal prosecutor. Since 2007, the Municipality of Anchorage has assigned prosecutors to the U.S. Attorney’s Office to work on cases that have direct impact on the safety of Anchorage residents, such as drugs, guns, and violent crime. The Municipal Prosecutor’s Office handled Inga’s underlying domestic violence case, and, upon learning of the firearm case, forwarded it to the U.S. Attorney’s Office for prosecution.

 

An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Sterling Bolima, 43, of Seattle, Washington, was sentenced yesterday by U.S. District Judge Timothy M. Burgess to 18 months in prison, to be followed by a five-year term of supervised release, for failing to register as a sex offender.

 

According to documents filed in this case and arguments made at yesterday’s sentencing, Bolima was convicted in 1998 by the State of Alaska for Sexual Abuse of a Minor. As a result of this conviction, the defendant was required to register as a sex offender in Alaska and any other location in which he lived, worked, or attended school.

 

Between 1998 and 2011, while living in Juneau and Nome, the defendant failed to register on three separate occasions. In 2012, Bolima flew to Seattle and took up residence in Washington State. The defendant failed to update Alaskan authorities with his new address, nor did he register with Washington officials upon his arrival. The defendant lived in an unregistered status until August 2016, when he was indicted by a federal Grand Jury and arrested by United States Marshals.

 

In pronouncing his sentence, Judge Burgess sought to “provide some sort of deterrence to criminal conduct.” According to Judge Burgess, “[this sentence is intended to] make sure Mr. Bolima understands what he has to do as far as registration goes. And to understand that there are serious consequences if he doesn’t.” Judge Burgess warned the defendant about the failure to register in the future. “If you don’t, you’re going to spend a lot more time in jail,” said Judge Burgess.

The case was the product of an investigation by the United States Marshal’s Service. Assistant U.S. Attorney Kyle Reardon prosecuted the case.

This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska and ask to speak with the PSC coordinator.

Fairbanks, Alaska – Acting U.S. Attorney Bryan Schroder announced today that Stephen Wyzatecki, 25, formerly an Airman stationed at Eielson Air Force Base, was sentenced today by U.S. District Judge Ralph R. Beistline to 38 months in prison, to be followed by an eight-year term of supervised release, for possessing child pornography.

 

According to documents filed in this case and arguments made at today’s sentencing, on four occasions between November 2015 and April 2016, law enforcement agents identified the defendant’s computer offering files of child pornography through the internet. Law enforcement agents searched the defendant’s residence on Eielson Air Force Base on Oct. 12, 2016. Located on the defendant’s computer were 895 images and 69 videos of child pornography. Among the files possessed by the defendant were videos of prepubescent girls being sexually assaulted, and pictures of the genitalia of children as young as five years old.

 

When questioned by law enforcement agents, the defendant admitted to searching for and downloading child pornography. The defendant admitted that his use of the file-sharing network to download images of child pornography had been ongoing for approximately one year, that he viewed images weekly, and that the last time he had viewed child pornography was two days before the search.

 

In pronouncing his sentence, Judge Beistline commented that the images downloaded by the defendant were “graphic and involved numerous young girls” being filmed while they were being sexually assaulted. Judge Beistline noted that every time an image is viewed, the victim shown in that image is “re-victimized.” With his sentence, Judge Beistline sought to protect the children who are molested in order to feed the online marketplace of child pornography. “In Alaska, and throughout the country,” said Judge Beistline, “we just want to protect our children.”

The case was the product of an investigation by the Federal Bureau of Investigation’s Safe Streets/Crimes Against Children/Human Trafficking Task Force. The task force marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims. Assistant U.S. Attorney Kyle Reardon prosecuted the case.

This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood (PSC) initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe internet use,

thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska and ask to speak with the PSC coordinator.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that a Utah man was arrested on a criminal complaint charging him with the murder of his wife onboard the cruise ship Emerald Princess in Southeast Alaska. At the time of the crime, the Emerald Princess was in U.S. Territorial Waters, subjecting the case to federal jurisdiction.

 

Kenneth Ray Manzanares, 39, of Santa Clara, Utah, was charged by criminal complaint with the murder of his wife, K.M. According to the criminal complaint, on July 25, 2017, Emerald Princess Security and Medical personnel responded to an incident in the cabin occupied by Kenneth and K.M. K.M. was found in the cabin, deceased, and had a severe head wound.

 

According to the complaint, prior to security officers arriving to the cabin, one of the witnesses, D.H., observed Manzanares grab K.M.’s body and drag her toward the balcony. D.H. then grabbed the ankles of K.M.’s body and pulled her back into the cabin. Soon after, Emerald Princess security entered the cabin and restrained and secured Manzanares.

 

Manzanares was detained by Security Officers at the scene, and was arrested yesterday, July 26, 2017. Manzanares is scheduled to make his initial appearance in federal court in Anchorage today, via video conference from Juneau, July 27, at 2:00 PM before U.S. Magistrate Judge Kevin F. McCoy.

 

The charges in the criminal complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Anchorage, Alaska - Acting U.S. Attorney Bryan Schroder announced today that the group responsible for ATM thefts at several local banks pleaded guilty yesterday in U.S. District Court in Anchorage.

 

Adrian Cheyne Turnbow, 26, of Anchorage, pleaded guilty to an Indictment charging him with possession of stolen bank property. As part of his plea, Turnbow admitted his involvement in four separate Automated Teller Machine (ATM) thefts from banks in Anchorage where he used front end loaders stolen from local construction sites to remove the ATMs from the banks. Turnbow was involved in thefts or attempted thefts that occurred on December 25, 2016, February 6, March 1, and March 6, 2017.

 

Cristi Cozzetti, 28, Jerd Thacker, 28, and Jordan Cook, 29, all from Anchorage, pleaded guilty to an Indictment charging them with possession of stolen bank property. As part of their plea, the group admitted they possessed an ATM on March 1, 2017, and attempted to open it after it had been stolen from an Anchorage bank by Turnbow.

 

Chief U.S. District Judge Timothy M. Burgess scheduled all of the co-defendants’ sentencing hearings for Oct. 6, 2017. Turnbow, Cozzetti, Thacker, and Cook have been in federal custody since their arrest in March 2017.

 

Each defendant faces a maximum term of imprisonment of 10 years, and a potential fine of up to $250,000.

 

Acting U.S. Attorney Schroder commended the diligent and hard work of the Federal Bureau of Investigation, and the Anchorage Police Department for the investigation leading to the successful prosecution of Turnbow, Cozzetti, Thacker, and Cook.

An Alaskan couple was charged in federal court in Juneau, Alaska today with four counts of willful failure to pay their individual income taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg and Acting U.S. Attorney Bryan Schroder for the District of Alaska.

 

According to the Information, Archie W. Demmert III and Roseann L. Demmert earned income from commercial fishing. The Information alleges that Archie Demmert owned Vetta Bay LLC, which owned the Demmerts’ fishing vessel, the Emerald Beauty. The Information further charges that the Demmerts have a long history of not paying their taxes to the Internal Revenue Service (IRS). It alleges that the Demmerts did not pay their taxes for 13 separate tax years, for which they owed over $400,000, excluding penalties and interest.

 

The Demmerts arraignment has not been scheduled yet. They face a statutory maximum sentence of one year in prison on each separate count, as well as a period of supervised release, restitution and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schroder recognized special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Andrea Steward and Trial Attorney Lori Hendrickson of the Tax Division, who are prosecuting this case.

 

An Information is merely an accusation, and a defendant is presumed innocent unless proven guilty.

 

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that an Alaskan couple was charged in federal court in Juneau, Alaska, today with four counts of willful failure to pay their individual income taxes.

 

According to the Information, Archie W. Demmert III and Roseann L. Demmert, of Klawock, Alaska, earned income from commercial fishing. The Information alleges that Archie Demmert owned Vetta Bay LLC, which owned the Demmerts’ fishing vessel, the Emerald Beauty. The Information further charges that the Demmerts have a long history of not paying their taxes to the Internal Revenue Service (IRS). It alleges that the Demmerts did not pay their taxes for 13 separate tax years, for which they owed over $400,000, excluding penalties and interest.

 

The Demmerts face a statutory maximum sentence of one year in prison on each separate count, as well as a period of supervised release, restitution and monetary penalties.

 

Acting U.S. Attorney Schroder recognized special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Andrea Steward and Trial Attorney Lori Hendrickson of the Tax Division, who are prosecuting this case.

 

An Information is merely an accusation, and a defendant is presumed innocent unless proven guilty.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Bernard Yamura White, 36, of Anchorage was sentenced yesterday to 15 years in federal prison for charges of drug trafficking, money laundering, and firearms offenses. White, a third-time felony drug offender, also received a consecutive three-year sentence for violating his prior terms of supervised release by committing the charged crimes. Senior U.S. District Judge Ralph R. Beistline imposed the 18-year sentence on White.

 

On Aug. 22, 2016, White attempted to ship a parcel containing $59,610 in drug proceeds from Anchorage to an address in California. On Jan. 12, 2017, White attempted to ship another parcel containing $30,980 in drug proceeds from Anchorage to another address in California.

 

On Feb. 8, 2017, White was contacted at a traffic stop by law enforcement officers in Anchorage and was found in possession of 118 grams of heroin, 59 grams of powder cocaine, and 35 grams of crack cocaine. White’s residence was searched later that day, and law enforcement officers found 786 grams of methamphetamine, 1318 grams of heroin, 176 grams of cocaine, and 837 grams of marijuana. In addition, the officers found 11 firearms, including rifles, semi-automatic pistols, and shotguns. White is a felon and prohibited from possession of firearms due to his two prior federal drug trafficking felonies.

 

At White’s sentencing hearing, a former neighbor of White’s asked to speak with the court, and expressed concern for the community that White had been convicted of three drug trafficking offenses and after significant time in prison still continued to engage in the same dangerous conduct.

 

Before imposing a sentence, Judge Beistline, who had sentenced White on one of his prior convictions, recounted White’s history with the court. Judge Beistline referenced the current opioid epidemic in Alaska, and the number of drug overdose deaths caused by drug traffickers like White, who was motivated by profiting off other’s addictions. Judge Beistline compared drug traffickers like White to domestic terrorists: “We must protect our community from those that want to destroy us.” Among the many things Judge Beistline took into account when fashioning White’s sentence was his conclusion that White was a danger to the community.

 

Acting U.S. Attorney Schroder commended the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation Division, Bureau of Alcohol, Tobacco, and Explosives, and the Anchorage Police Department for the investigation leading to the successful prosecution of Mr. White.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a Juneau man was sentenced to federal prison for the distribution of child pornography.

 

Gilberto Valadez-Garcia, 40, a citizen of Mexico, was sentenced by Chief U.S. District Judge Timothy M. Burgess. Valadez-Garcia was sentenced to five years imprisonment for a single count of distribution of child pornography. Upon the completion of his prison term, Valadez-Garcia must complete a 20-year term of supervised release.

 

Assistant U. S. Attorney Jack S. Schmidt, who prosecuted the case, informed the court that Valadez-Garcia became the subject of a federal investigation after federal law enforcement officials had downloaded child pornography from Valadez-Garcia through the use of a peer to peer (P2P) file sharing program. Agents downloaded 12 videos from the defendant containing images of prepubescent minors engaged in sexually explicit conduct. Agents executed a search warrant at the defendant’s employer, as Valadez-Garcia was actively downloading images of child pornography using the employer’s internet service. A subsequent search of Valadez-Garcia’s computer revealed 69 images and 47 videos of minors engaged in sexually explicit conduct. In an interview, Valadez-Garcia admitted to downloading the images and videos located on his computer and admitted to using a P2P program that distributed the images to others. Valadez-Garcia further admitted that he knew it was illegal to view, possess, and distribute child pornography, but that he did not expect that it would be investigated.

 

The charges against Valadez-Garcia are the result of an investigation conducted by the Federal Bureau of Investigation (FBI).

 

This prosecution is part of the Department of Justice ongoing Project Safe Child (PSC) initiative. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, identify and rescue victims and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that Brandon Johnson, 37, was sentenced by Senior U.S. District Judge Ralph R. Beistline to serve 90 months in prison, followed by three years of supervised release, for his role in a drug trafficking conspiracy that brought controlled substances, including heroin and methamphetamine, into Alaska.

 

Brandon Johnson was indicted with multiple co-conspirators including Hakim Giddins, Shakin Giddins, Markin Giddins, Tara McNutt, Kourtney Davis, and Briana Herndon. According to court documents, from 2014 to 2016, McNutt, Davis, and Herndon opened various mailboxes with Alaska addresses for the purpose of receiving heroin from California. This heroin was received and distributed in Alaska by Hakim Giddins and his co-conspirators. Brandon Johnson himself possessed heroin for distribution. As part of this case, Brandon Johnson also pled guilty to being a felon in possession of a firearm.

 

During this same time frame, Brandon Johnson and others also entered into an agreement to launder the proceeds obtained from the distribution of drugs brought into Alaska by the conspiracy. The cash proceeds from the sale of these drugs was laundered by making deposits into bank accounts located in Alaska in other people’s names. This money was then withdrawn in California. Cash was also shipped in bulk from Alaska to California. Hakim Giddins directed Brandon Johnson and others to make bank deposits on his behalf with money that he knew had come from drug trafficking. Hakim Giddins believed that by having the deposit made that way it would conceal his connection to the money as well as to the true source of the money.

 

Brandon Johnson is a twice-convicted felon who came to Alaska from California. In California he was convicted of burglary and imposed a suspended sentence. Shortly thereafter Johnson committed another burglary and was convicted and received a nine year sentence. Johnson later moved to Nevada where he committed another felony grand larceny and burglary.

 

Multiple conspirators were indicted for criminal conduct related to this drug conspiracy. The following defendants have pleaded guilty to criminal charges and have been sentenced to the following prison terms in the past three month:

 

• Brandon Johnson, sentenced to 90 months in prison on July 24, 2017

• Hakim Giddins, sentenced to 16 years in prison on May 24, 2017

• Shakin Giddins, sentenced to 6 years in prison on May 25, 2017

• Markin Giddins, sentenced to 5 years in prison on May 16, 2017

• Tara McNutt, sentenced to 42 months in prison on June 8, 2017

• Kourtney Davis, sentenced to 18 months in prison on May 16, 2017

• Briana Herndon, sentenced to 9 months in prison on May 24, 2017

 

The Alaska case was prosecuted by Assistant U.S. Attorney Stephan A. Collins of the U.S. Attorney’s Office for the District of Alaska, and was investigated by the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), and the Anchorage Police Department (APD).

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that two Port Graham, Alaska, residents have been federally charged related to their causing the United States Coast Guard to attempt to save life and property when no help was needed.

 

Ryan Riley Meganack, aka: “Unga,” 34, and his girlfriend, Ivy Rose Rodriguez, 25, both of Port Graham, Alaska, were charged with conspiracy and false distress. Meganack was also charged with felon in possession of a firearm. Meganack, a long-time commercial fisherman and a boat captain, was scheduled to plead guilty on Dec. 5, 2016, in a separate case (State of Alaska v. Meganack, 3AN-15-00683CR), and understood that at the time he pled guilty in that matter he would go to prison. To avoid that consequence, Meganack attempted to fake his own death and enlisted the help of his girlfriend, Rodriguez.

 

In furtherance of the conspiracy, on Nov. 29, 2016, Meganack piloted his fishing vessel to an island near Port Graham and abandoned his skiff in a manner that made it appear that he had gone missing after a boating accident or had otherwise died. Meganack then returned to Port Graham, picked up Rodriguez, and the two traveled in Meganack’s fishing vessel to a tidal lagoon where they secured the vessel, and returned to Port Graham on land. Meganack went to a makeshift campsite near Port Graham, and Rodriguez went to a residence where she was staying. In the early morning hours of Nov. 30, 2016, Rodriguez reported to a member of Meganack’s family that Meganack had left in his skiff, the skiff “wasn’t running right,” and indicated that Meganack had been drinking and had more alcohol with him. The Indictment alleges that Meganack and Rodriguez agreed that Rodriguez would tell Meganack’s family that Meganack was missing, knowing that Meganack’s family would report him missing and that a search for Meganack would commence.

 

Between Nov. 30, 2016, and Dec. 2, 2016, Meganack and Rodriguez caused a search and rescue operation to be launched for Meganack. The weather conditions during the search were poor, with snow, high winds, and low visibility at times in the Port Graham area. Meganack was, in actuality, safe in a makeshift campsite near Port Graham that he made for carrying out their plan.

 

Federal, state, and local authorities, as well Port Graham residents, participated in the search for Meganack. Helicopters from United States Coast Guard Air Station Kodiak, Coast Guard Cutter Naushon, and Coast Guard command center personnel participated in the operation. The Coast Guard alone expended approximately $310,897.50 in resources during the search for Meganack.

 

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, Alaska – Acting U.S. Attorney Bryan Schroder announced that Floyd Jay Mann, Jr., 55, of Puyallup, Washington, pleaded guilty in Anchorage yesterday to all counts charged against him, to include 11 counts of wire fraud and 8 counts of money laundering, regarding a scheme to defraud Alaskans out of approximately $2.7 million. His wife, Cheryl Mann, 52, also of Puyallup, was convicted in Seattle on Friday, July 7, 2017, of one count of social security fraud.

 

According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case against Floyd Mann in the District of Alaska, Floyd Mann defrauded several Alaska residents of approximately $2.7 million by falsely leading the victims to believe that he was the recipient of a multimillion-dollar settlement from a class-action lawsuit with a pharmaceutical company. Mann told victims that if they helped to pay Mann’s medical bills and other lawsuit-related expenses, the victims would be paid back plus a substantial return on their money, but only after Mann’s multimillion-dollar settlement was released by the court. In fact, Mann did not use the victim’s money to pay medical bills. There was no lawsuit settlement, and Mann used the money he obtained from the victims to gamble at a casino, collecting over $1 million in jackpots while receiving need-based social security benefits.

 

According to Special Assistant U.S. Attorney Benjamin Diggs, who prosecuted the case against Floyd Mann’s wife, Cheryl Mann, in the Western District of Washington, during the course of Floyd Mann’s scheme, he and his wife Cheryl Mann and their son collected approximately $81,000 in need-based Supplemental Security Income benefits. Cheryl Mann was the designated payee for Floyd Mann and their son and responsible for reporting any changes in the household income or assets. During this time, Cheryl Mann won approximately $125,000 by gambling at a casino. That income, as well as the funds obtained by her husband, disqualified the Manns from the public assistance they received. At her sentencing on July 7, 2017, Cheryl Mann was ordered to pay $81,000 in restitution and serve three years of probation.

 

Floyd Mann is scheduled to be sentenced on Dec. 11, 2017, in Anchorage.

 

For Floyd Mann’s charges, the law provides for a maximum sentence of 20 years in prison and a $500,000 fine or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

 

The IRS Criminal Investigations, FBI, and Social Security Office of Inspector General, conducted the investigation in this case.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Danny R. Q. Wong was sentenced in federal court in Anchorage today to serve a term of 15 months in prison for distributing opium. Wong, 58, of Anchorage, was indicted last year for conspiring with three other persons to distribute opium. In three separate transactions, Wong sold a total of 1 and ¼ kilograms of opium to another individual for a total of $60,000. Two of the three remaining defendants in the case are awaiting trial, and the third is a fugitive.

 

In sentencing Wong to serve 15 months in prison, Chief U.S. District Judge Timothy M. Burgess noted that a significant amount of opium had been involved in the case, but also noted that at age 58, this was the first criminal conviction sustained by Wong who had otherwise lead a productive life as the owner of a metal recycling business in Anchorage.

 

Acting U.S. Attorney Schroder commends the Federal Bureau of Investigation Safe Streets Task Force for the investigation of this case.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that the former President of the Alaska Railroad Workers Union was sentenced in federal court in Anchorage today to serve one year and a day in federal prison for embezzling approximately $92,000 in union funds.

 

Jeffrey W. Davies, 43, of Wasilla, served as the President of the union between 2006 and 2014. According to Assistant U.S. Attorney Joseph Bottini, Davies began embezzling union money in 2011 and continued to steal or misapply union funds for his personal benefit until 2014 when the embezzlement was discovered. Following an investigation by the Federal Bureau of Investigation, it was determined that Davies had embezzled over $90,000 of union money in a three-year period of time. Davies was charged last year with felony embezzlement, and plead guilty in May of last year to stealing the funds.

 

In sentencing Davies to just over a year in federal prison, U.S. District Judge Sharon L. Gleason rejected Davies’ request that he be sentenced to a term of probation, noting that the embezzlement had taken place over a long period of time, and that Davies had grossly abused his position of trust with his fellow union members. Judge Gleason also ordered Davies to pay restitution to the Alaska Railroad Workers Union in the amount of $92,766.00, and directed that he pay a first installment of $3,000.00 of that amount by the end of this week, with payments of $1,500.00 per month thereafter. Following service of his jail sentence, Davies will be on supervised release for a period of three years and his compliance with paying the ordered restitution will be monitored by the United States Probation Office in Anchorage.

 

Mr. Schroder commends the Federal Bureau of Investigation for the investigation of this case, and also commends the assistance provided by the present management of the Alaska Railroad Worker’s Union.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Coriana Ifopo, 54, of American Samoa, was arrested today in Honolulu, Hawaii, and has been charged with 28 counts of making false claims to a government agency.

 

According to Assistant U.S. Attorney Aunnie Steward, who presented the case to the grand jury, Ifopo filed tax returns on behalf of over 200 other individuals living in American Samoa. Ifopo falsely claimed that they lived in the United States, including Alaska, and falsely claimed that they were owed refunds when they were not. The false claims included listing false dependents, false withholdings, and claiming earned income credits when they were not applicable.

 

The law provides for a maximum sentence of five years in prison for each count and a $250,000 fine or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

 

The Department of Treasury, Internal Revenue Service, Criminal Investigation Division conducted the investigation leading to the indictment in the case.

 

An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that an Anchorage man was sentenced yesterday to 41 months in federal prison for assaulting a Deputy U.S. Marshal with a deadly and dangerous weapon while the Deputy was engaged in his official duties.

 

Leigaga Selau Amituanai, aka: “G,” 27, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason to 41 months, followed by three years of supervised release and 120 hours of community service. On Feb. 14, 2017, Amituanai pled guilty to Count 1 of the Superseding Indictment, which charged him with assault on a federal officer with a dangerous and deadly weapon.

 

According to court documents filed in this case, on the morning of Feb. 11, 2016, the Deputy U.S. Marshal was on duty, conducting surveillance in an unmarked United States Marshals Service (USMS) vehicle in a business parking lot near Mountain View Drive and North Park Street in Anchorage. Shortly before 10:30 a.m., Amituanai and co-defendant Sulu Faamolemole, aka “Chase,” pulled into the parking lot driving a stolen brown Toyota pickup truck. After spotting the Deputy U.S. Marshal’s vehicle and noting its darkly tinted windows and the fact it was running, they slowly approached his vehicle, staring and gesturing aggressively at the Deputy.

 

When the pickup truck crossed directly in front of the Deputy U.S. Marshal’s vehicle, Amituanai pulled out a sawed-off shotgun and pointed it at the Deputy to intimidate him, all while maintaining eye contact with the Deputy. Amituanai and Faamolemole passed the Deputy, and turned west onto Mountain View Drive.

 

When APD officers and the Deputy U.S. Marshal tried to pull over Amituanai and Faamolemole in the Red Apple parking lot a short time later, Amituanai and Faamolemole attempted to elude officers, driving down an embankment onto the Glenn Highway exit ramp at Bragaw Street before leading law enforcement on a high speed chase down Bragaw Street and into a residential neighborhood. A sawed-off shotgun was found next to Amituanai’s seat. In addition, multiple shotgun shells, a loaded pistol, burglary tools, multiple sets of car keys, and other evidence of criminal activity were recovered from the vehicle. The investigation revealed that Amituanai was encountered by the Anchorage Police Department twice in stolen vehicles the month prior to assaulting the Deputy on Feb. 11, 2016.

 

In sentencing Amituanai, Judge Gleason stated the defendant’s crime was one “that, as a community, we cannot . . . tolerate.” Judge Gleason specifically found that Amituanai believed that the person in the Deputy’s unmarked vehicle was likely a law enforcement officer, and that fact made his crime even more serious. The Judge also found that in early 2016 Amituanai was “out of control in terms of criminal behavior,” noting the defendant was arrested in a stolen vehicle, with a sawed-off shotgun, and burglary tools.

 

“Protection of law enforcement officers as they diligently perform their duties is an essential responsibility of the Department of Justice,” said Acting U.S. Attorney Schroder. “Every day, all across the country, law enforcement officers put their lives on the line to protect the citizens of this nation from violent crime. We will continue to hold responsible those who threaten our law enforcement professionals.”

 

“It is not within a law enforcement officer’s routine duties to be threatened with lethal force, nor should it ever be,” said Robert Heun, United States Marshal for the District of Alaska. “While it happens all too often, it must never be considered the norm or simply a part of the job. Such assaults are not only upon the individual officer, but upon the greater law abiding citizenry that he or she represents.”

 

Faamolemole is scheduled to be sentenced on July 10, 2017, at 10:00 a.m. before Judge Gleason in Courtroom 3.

 

The United States Marshal Service (USMS), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Anchorage Police Department (APD) conducted the investigation in this case.

WASHINGTON – On Friday, June 16, 2017, 179 members of the Department of Justice, including a team from Alaska, were recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 33rd Director’s Awards Ceremony in Washington D.C. The Alaskans were recognized for “Superior Performance as a Litigative Team” in the prosecution of Mark Avery in 2016. The team included Steven Skrocki, Bryan Schroder, Chloe Martin, Monica Valenzuela, and Kathryn Richards of the U.S. Attorney’s Office; Kirk Oberlander and Holly Steeves of the Federal Bureau of Investigation; and Patrick Matthew of the Internal Revenue Service-Criminal Investigations.

 

The District of Alaska was one of 35 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

 

In his prepared remarks, Deputy Attorney General Rosenstein told the awardees: “These 179 award recipients embody the best of the Department of Justice.… Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.”

 

The litigation team of agents, prosecutors and support staff from the District of Alaska was recognized for their exceptional work in the prosecution of Mark Avery for a $52 million wire fraud and money laundering scheme, the largest fraud by dollar amount in Alaskan history. Avery defrauded a private trust set up to take care of an elderly woman who, at the time, was suffering advanced dementia. Avery was convicted at trial in February 2016, and was sentenced to serve over 13 years in prison and pay over $45 million dollars in restitution.

 

Acting U.S. Attorney Bryan Schroder recognized that: “The most effective way of protecting the people of Alaska is for law enforcement agencies to work together. Federal law enforcement agencies, along with our state and local partners, work together every day to help make our state a safer place. I am proud that the Department of Justice has recognized the outstanding team effort in U.S. v. Avery.”

 

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that an Anchorage man was sentenced to 5 years in federal prison for conspiring to traffic methamphetamine from California to Alaska by mail, for further distribution in Utqiaġvik (formerly Barrow), Anchorage, and elsewhere within the State of Alaska.

 

Maurice Abad Malabed, aka “Moe,” 48, of Anchorage, was sentenced yesterday by U.S. District Judge Sharon L. Gleason, to 5 years in federal prison, followed by 4 years of supervised release. On

March 7, 2017, Malabed pled guilty to one count of drug conspiracy.

 

According to court documents filed in this case, on Nov. 29, 2016, Malabed contacted an individual about trafficking drugs to Utqiaġvik, who, unbeknownst to Malabed, was a North Slope Borough Police Department confidential source (CS). Thereafter, per Malabed’s request, the CS provided Malabed with $3,000 to obtain approximately four ounces of methamphetamine from Malabed’s supplier in California. On Dec. 7, 2016, Malabed gave the CS a United Parcel Service (UPS) tracking number for the package containing the drugs. Using the tracking number that Malabed provided, law enforcement agents seized the package at a UPS facility in Anchorage. The mailing label on the package indicated that it was shipped from California to co-defendant David Christensen’s address in Anchorage. Law enforcement obtained a search warrant for the package, which contained approximately 163.7 grams of methamphetamine, which is equivalent to roughly 1,637 hits or doses. The investigation revealed that Malabed recruited co-defendant David Christensen to receive and then help distribute the drugs.

 

At sentencing, Judge Gleason noted the seriousness of the offense, specifically that Malabed’s offense was “targeted” at smuggling methamphetamine to the small community of Utqiaġvik (formerly Barrow), where the impact of 163 grams of methamphetamine “is so much greater than [the same quantity] in a community the size of [Anchorage].”

 

Christensen is scheduled to be sentenced on July 26, 2017, at 1:30 P.M.

 

Acting U.S. Attorney Schroder commended the Drug Enforcement Administration, the Alaska State Troopers Statewide Drug Enforcement Unit, and the North Slope Borough Police Department who conducted the investigation, which led to the successful prosecution of this case.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today significant sentences in a recent drug ring case. Hakim Giddins, 36, was sentenced by Senior U.S. District Judge Ralph R. Beistline to serve 16 years in prison, followed by five years of supervised release, for his role in a drug trafficking conspiracy that brought controlled substances, including heroin and methamphetamine, into Alaska. On Feb. 14, 2017, Hakim Giddins pled guilty to drug conspiracy and money laundering, and was sentenced on May 24, 2017.

 

Hakim Giddins was indicted with multiple co-conspirators including Shakin Giddins, Markin Giddins, Tara McNutt, Kourtney Davis, and Briana Herndon. According to court documents, from 2014 to 2016, McNutt, Davis, and Herndon opened various mailboxes with Alaska addresses for the purpose of receiving heroin from California. This heroin was received and distributed in Alaska by Hakim Giddins and his co-conspirators. Hakim Giddins himself possessed and distributed heroin, and he knew or reasonably foresaw that the distribution of 1000 grams or more of heroin had been the central object of the agreement. As part of this case, Shakin Giddins pled guilty to drug conspiracy and money laundering, and Markin Giddins pled guilty to being a felon in possession of a firearm.

 

During this same time frame, Hakim Giddins and others also entered into an agreement to launder the proceeds obtained from the distribution of drugs brought into Alaska by the conspiracy. The cash proceeds from the sale of these drugs was laundered by making deposits into bank accounts located in Alaska in other people’s names. This money was then withdrawn in California. Cash was also shipped in bulk from Alaska to California. Hakim Giddins directed others to make bank deposits in his behalf with money that he knew had come from drug trafficking. Hakim Giddins believed that by having the deposit made that way it would conceal his connection to the money as well as to the true source of the money.

 

Hakim Giddins has been a lifelong criminal, with court documents indicating his criminal activity began as early as age 12. In this current case, while he was incarcerated, he supervised the activities of his co-defendants. Furthermore, he intimidated a witness with violence if the witness proceeded to provide testimony against his brother Markin, a co-defendant in this case.

 

Multiple conspirators were indicted for criminal conduct related to this drug conspiracy. The following defendants have pleaded guilty to criminal charges and have been sentenced to the following prison terms in the past month:

 

• Hakim Giddins, sentenced to 16 years in prison on May 24, 2017

• Shakin Giddins, sentenced to 6 years in prison on May 25, 2017

• Markin Giddins, sentenced to 5 years in prison on May 16, 2017

• Tara McNutt, sentenced to 42 months in prison on June 8, 2017

• Kourtney Davis, sentenced to 18 months in prison on May 16, 2017

• Briana Herndon, sentenced to 9 months in prison on May 24, 2017

 

The Alaska case was prosecuted by Assistant U.S. Attorney Stephan A. Collins of the U.S. Attorney’s Office for the District of Alaska, and was investigated by the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), and the Federal Bureau of Investigation (FBI).

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a man from Washington state was sentenced in federal court in Anchorage for being a felon in possession of a firearm.

 

Jesse Robert Smith, 35, from Sedro-Wooley, Washington, was sentenced by Chief U.S. District Judge Timothy M. Burgess to seven years in prison to be followed by three years of supervised release.

 

On July 13, 2016, Wasilla Police contacted Smith while he was passed out in the driver's seat of a running vehicle at the Wasilla Fred Meyer parking lot. During the contact, Smith was in possession of a Taurus .32 caliber pistol, 330 grams of heroin, and $20,990 in U.S. currency. At the time, Smith had previously been convicted of conspiracy to distribute cocaine, and was prohibited from possession of firearms or ammunition.

 

Before imposing a sentence, Judge Burgess commented that Smith had an "ugly" criminal history. Smith has a lengthy criminal history that includes five prior felony convictions, two for drug distribution, two for drug possession, and one for possession of stolen property.

 

Acting U.S. Attorney Schroder commended the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wasilla Police Department, and the Alaska State Troopers for the investigation leading to the successful prosecution of this case.

 

Fairbanks, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a four-time convicted felon was sentenced to 64 months in federal prison for illegally possessing 32 firearms, some of which were stolen, and possessed in connection to drug distribution in Tok, Alaska.

 

Floyd Julius Stuck, 49, of Tok, Alaska, was sentenced today by Senior U.S. District Judge Ralph R. Beistline, to 64 months, three years of supervised release, and 80 hours of community service. On March 3, 2017, Stuck pled guilty in federal court for being a felon in possession of firearms, and agreed to forfeit all rights to firearms and ammunition named in the forfeiture allegation.

 

According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, the Alaska State Troopers (AST) obtained a search warrant on Feb. 2, 2016, for Stuck’s property in Tok after numerous reports of drug trafficking and other criminal activity. AST found and seized approximately 32 firearms (three of which proved to be stolen), ammunition, as well as numerous additional items of stolen property at Stuck’s Tok residence.

 

Reported to be the “biggest drug pusher” or dealer in Tok, evidence that Stuck was trafficking methamphetamine, heroin, prescription opiates, and marijuana was also seized from his home, along with evidence that Stuck was selling the drug paraphernalia needed to use those drugs. The investigation further revealed that Stuck accepted stolen firearms and other stolen property as payment for the drugs he was selling. In addition to Stuck’s federal firearms charge, he is also facing pending state drug charges arising from the same search warrant.

 

At sentencing, Judge Beistline noted that Stuck had “come to Tok to avoid the law” and “set up [a] criminal lifestyle” in that small Interior community. Judge Beistline underscored that it is important “to get the word out” that criminal conduct like Stuck’s will not be tolerated.

 

Acting U.S. Attorney Schroder commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) who conducted the investigation, as well as AST for their substantial assistance, leading to the successful prosecution of this case.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that an Anchorage man was found guilty yesterday of attempting to pass a counterfeit $100 bill at the Anchorage International Airport. Abdikhaliq Hussein, 28, of Anchorage, was convicted by Chief U.S. District Judge Timothy M. Burgess after a two-day bench trial. Sentencing is scheduled for Aug. 8, 2017. The maximum potential penalty is 20 years imprisonment and a fine of $250,000.

 

According to Assistant U.S. Attorney Jonas Walker, Hussein went to the Anchorage International Airport on Jan. 14, 2017, and made a reservation for a one-way trip to San Francisco. In attempting to pay for the ticket, Hussein handed seven counterfeit $100 bills to an airline employee. The employee immediately noticed that the bills were counterfeit due to their texture and appearance, including Chinese text in bright pink and red on both sides of the bills. The Chinese text translates as “training coupon, sample, for practice only, no circulation.”

 

Two airline employees explained to Hussein that the bills were not valid United States currency. The employees tested the fake funds with a counterfeit-detection marker and showed Hussein the resulting dark mark. After the airline employees explained to Hussein that the bills were false, Hussein tried to use an identical counterfeit $100 bill to pay for $7 worth of drinks and snacks from Starbucks located in the terminal. Police contacted Hussein shortly thereafter and found that the total amount of counterfeit currency he possessed was $11,220. At trial, Hussein testified that he found the money in a plastic bag along an Anchorage street and believed it was real. However, Judge Burgess found that Hussein was deliberately indifferent to the money being counterfeit and that he intended to deceive the Starbucks employee.

 

Acting U.S. Attorney Schroder commends the Anchorage International Airport Police and Fire Department, the Anchorage Police Department, the Federal Bureau of Investigation, the Secret Service, and the Department of Homeland Security for their cooperation in investigating this offense.

 

The U.S. Attorney’s Office cautions the community that federal law prohibits spending counterfeit currency as if it were authentic, even by a person who did not print it. A photo of the counterfeit $100 is attached.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that an Oregon woman has been charged with four counts of embezzlement.

 

Delia Commander, 63, of Oregon, is charged in a four-count indictment with embezzling approximately $300,000 from the Skagway Traditional Council, which is a federally recognized tribal organization.

 

According to Assistant U.S. Attorney Aunnie Steward, who presented the case against Delia Commander to the grand jury, from at least 2010 to 2014, the defendant embezzled approximately $300,000 from the Skagway Traditional Council. During that time, Commander was the Tribal Administrator. Commander embezzled the money by using the tribal credit card to make unauthorized cash advances at casinos and other locations, and by making unauthorized purchases with tribal funds. The purchases included paying for personal travel, online university courses, personal vehicle maintenance, and personal shopping, among other things.

 

The law provides for a maximum sentence of 10 years in prison and a $250,000 fine or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

 

The Department of Interior Office of Inspector General, assisted by the FBI, conducted the investigation leading to the indictment in the case.

 

An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilty beyond a reasonable doubt.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that an Anchorage man was sentenced yesterday in federal court for possession of child pornography and failure to register as a sex offender.

 

Andrew Weed, 48, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason, to 10 years in prison. Judge Gleason sentenced Weed to a combined sentence of 10 years imprisonment, and lifetime Supervised Release for his convictions on crimes of Child Sexual Exploitation-Possession of Child Pornography, and Failure to Register as a Sex Offender.

 

According to Assistant U.S. Attorney Audrey J. Renschen, Weed was previously convicted in Anchorage federal court in 2004, as a sex offender. At that time, Weed was convicted of 18 federal child sexual exploitation crimes, including advertising, transporting, and possessing child pornography. Weed was again caught with child pornography in 2016 that he downloaded at work, and saved at his residence.

 

FBI Special Agents and APD law enforcement searched Weed’s residence on May 31, 2016, pursuant to a federal search warrant, and found over 106,000 images of child pornography on his computer. After briefly talking to law enforcement that day, outside his residence, Weed fled Anchorage, and thereafter failed to report to work with his employer, and failed to return to his residence. Under federal law, sex offenders are required to notify the State of Alaska Sex Offender Registry within 24 hours of any change of address. Despite knowing about that requirement, Weed failed to report where he moved after leaving his Anchorage residence.

 

The U.S. Marshals Service (USMS) located Weed in Valdez, Alaska, more than two months later. Deputy Marshals arrested him on Aug. 2, 2016, on a federal warrant for failing to update his sex offender registration as required under federal and state law. Weed was then subsequently indicted on child pornography charges, and remained incarcerated after his arrest through his sentencing.

 

At the sentencing hearing, Judge Gleason noted that Weed’s child pornography crime was a serious one, with a huge amount of images involved [more than 106,000 images].

 

This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood (PSC) initiative – launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with federal, state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.

 

Acting U.S. Attorney Schroder commends the FBI, APD, and the USMS for their investigation of this case.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that an Anchorage woman has been sentenced to 54 months on one count of Bank Fraud and one count of Aggravated Identity Theft.

 

Kara Hayden, Jr., 50, of Anchorage, was sentenced by U.S. District Court Judge Sharon L. Gleason.

 

According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, from at least October 2014 to December 2015, Hayden applied for seventeen credit cards using the names, social security numbers, and dates of birth of nine different victims without their knowledge or authorization. Several of the victims had purchased veteran’s funeral benefits from Hayden. Hayden then used their personal information obtained during that process to fraudulently apply for credit cards. Hayden obtained approximately $14,500 in cash and retail goods prior to the discovery of her scheme.

 

A pleading filed with the court indicated that Hayden had also worked as an agent selling identity theft protection for nine years and was uniquely aware of the adverse consequences associated with identity theft. See Hayden’s LinkedIn profile below:

 

Judge Gleason noted that the defendant’s crimes were particularly serious because she targeted veterans who have served our country.

 

Acting U.S. Attorney Bryan Schroder commends the U.S. Postal Inspection Service, assisted by the Alaska State Insurance Division, for the investigation in this case.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a criminal defense attorney and her client have been charged for allegedly smuggling drugs into the State of Alaska Department of Corrections (DOC) Anchorage Correctional Complex (ACC) for distribution to inmates.

 

Kit Lee Karjala, 54, a criminal defense attorney in Anchorage, and her client, Christopher Brandon Miller, aka “Mellow,” 33, who is currently an inmate at ACC, have both been named in a criminal complaint that charges each of them with three federal crimes: (1) drug conspiracy; (2) distribution of, and possession with intent to distribute, controlled substances; and (3) providing and possessing contraband in a prison.

 

According to the affidavit filed in support of the criminal complaint, beginning as early as June 2016 and no later than December 2016, and continuing until the present, Karjala allegedly passed drugs to co-conspirator inmates, including Miller, during in-person attorney-client visits. Karjala represented Miller, but was not counsel of record for the other inmates with whom she allegedly conspired. Because Karjala represented to DOC that these meetings were allegedly professional visits, DOC permitted her to meet with Miller and the other co-conspirator inmates in a room with no physical barriers separating them. More specifically, after Karjala handed a package of drugs to the co-conspirator inmate during the visit, the inmate would hide the drugs inside his body, while Karjala attempted to shield the inmate from the view of DOC security cameras and/or personnel. When the inmate and Karjala concluded their meeting, the inmate transported the drugs inside his body back to his jail cell. The inmate later distributed the drugs to other ACC inmates for profit.

 

For example, as further detailed in the complaint, on May 2, 2017, Karjala requested a professional visit with Miller. During the meeting, Karjala allegedly passed drugs to Miller, who in turn hid them in his body. Per DOC procedure, Miller was subjected to dry-cell protocol from May 2 until May 5, 2017, during which Miller excreted multiple foreign objects, including a mixture and substance containing a distributable quantity of heroin, as well as suspected Suboxone strips.

 

The complaint details financial deposits between inmates that support the allegations of drug distribution, as well as transfers of money to accounts associated with Karjala from a co-conspirator inmate whom Karjala did not represent.

 

Karjala was arrested yesterday, May 10; Miller is in state custody. Karjala is scheduled to appear in federal court today at 11:00 AM before U.S. Magistrate Judge Kevin F. McCoy to face these charges.

 

The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 or both for the most serious charges alleged in the complaint. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.

 

The Federal Bureau of Investigation (FBI) and the Alaska State Troopers (AST) conducted the investigation, with substantial assistance from DOC, leading to the charges in this case.

 

“It is the responsibility of law enforcement to protect the public from drug traffickers, regardless of their stated profession. Drugs in the prison system endanger the welfare of not only inmates, many of whom are already struggling with drug addiction, but also jail personnel,” said Acting U.S. Attorney Bryan Schroder. “We will continue to work with the FBI, the Alaska State Troopers, and the Department of Corrections to investigate and prosecute people who endanger the welfare of our community and have a corruptive effect on our criminal justice system.”

 

“These arrests are a culmination of the working relationship between the FBI, the Alaska State Troopers, and the Department of Corrections,” said FBI Special Agent in Charge Marlin Ritzman. “The Bureau, AST, and DOC are dedicated to eradicating any illegal activity that takes place within our jurisdiction.”

 

Charges contained in a criminal complaint are merely allegations, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Fairbanks, Alaska – Acting U.S. Attorney Bryan Schroder announced that, on Friday, April 28, 2017, Bobby Dewayne Thompson, II, 43, of Anchorage, was sentenced by U.S. Senior District Judge Ralph R. Beistline to 110 months in prison, followed by three years of supervised release, for being a felon in possession of a firearm.

 

On Feb. 7, 2017, following a federal trial in Fairbanks, a jury found Thompson guilty of being a felon in possession of a firearm. Thompson has an extensive criminal history including three prior felonies and possessed this firearm in furtherance of a drug trafficking offense.

 

According to court documents, on March 22, 2016, Thompson was riding as a passenger in a vehicle which was stopped by Alaska State Troopers (AST) in Fairbanks. Thompson gave several false names and dates of birth in order to avoid service of his four outstanding arrest warrants. Under his seat was a loaded, stolen, .38 caliber revolver. Despite having no known employment, Thompson was found with $796.00 cash and 3.16 grams of cocaine. A subsequent search of his phone uncovered further evidence of drug trafficking including receiving a text message with a bank account number from Taming Ting – a drug trafficker who was subsequently indicted federally for trafficking methamphetamine. The entire circumstances of this case show the firearm was not just illegally possessed by Thompson, but was possessed in order to further the distribution of narcotics while in Fairbanks.

 

As detailed in the sentencing hearing, Thompson has an extensive criminal history dating back 25 years including: 8 assaults, 3 failure to appears, 4 driving while license suspended, 1 misdemeanor drug offense, 1 federal drug offense (sentenced to 10 years in prison), an escape from custody, and 17 petitions to revoke probation.

 

At the sentencing hearing, Judge Beistline noted the evidence showed the gun was possessed in furtherance of drug activity and the sentence was necessary to protect the public.

 

Acting U.S. Attorney Schroder commended the AST and the Bureau of Alcohol, Tobacco, and Firearms (ATF) for the investigation leading to the successful prosecution of this case.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that an Anchorage man has been sentenced in federal court for conspiring to import methamphetamine from California to Alaska. Today, U.S. District Judge Sharon L. Gleason sentenced Alfa Souvandara, 42, of Anchorage, to serve 10 years in prison, following his guilty plea on Feb. 16, 2017.

 

According to Assistant U.S. Attorney Jonas Walker, Souvandara was the Anchorage connection for a co-conspirator who sent methamphetamine from California in September 2015. Employees of the shipping company noticed the package due to several suspicious characteristics, opened it, found the methamphetamine, and reported it to law enforcement. Later, during the execution of a search warrant, law enforcement found a loaded gun, drug paraphernalia, and cash in Souvandara’s home. Based on data from the United States Sentencing Guideline Commission, the government estimates that the package contained enough methamphetamine for approximately 352,000 typical illegal doses.

 

At sentencing, Judge Gleason referred to methamphetamine as a “horribly dangerous poison” that Congress has criminalized to protect the public. The co-conspirator’s sentencing is expected to occur later this year.

 

The Drug Enforcement Administration and the Alaska Department of Public Safety conducted the investigation leading to the successful prosecution of this case.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that a Palmer couple, who were engaged in an extensive conspiracy to bring narcotics from the lower 48 and distribute them in the Mat-Su Valley, was sentenced to prison yesterday for drug trafficking.

 

U.S. District Judge Sharon L. Gleason sentenced Tod James Rodolph, 41, to serve 12 years in prison and Jessica Elizabeth Hopkins, 36, to serve 78 months in prison. It was also ordered that Rodolph pay a $30,000 fine. Rodolph previously pled guilty to one count of conspiracy to distribute, possess with intent to distribute, and one count of possession of firearms in furtherance of drug trafficking crimes. Hopkins previously pled guilty to one count of conspiracy to distribute, possess with intent to distribute.

 

According to court documents, an investigation was launched by the Drug Enforcement Administration (DEA) and the Alaska State Troopers (AST) on Jan. 10, 2016, when a 17-year-old male, identified as A.F., died of a methamphetamine overdose while consuming narcotics at the home of Rodolph and Hopkins. The investigation revealed that, on Jan. 9, 2016, a group of teenagers and young adults were consuming narcotics in the couple’s garage when A.F. began getting sick and displaying symptoms of an overdose. After being woken up by the teens, Rodolph did not make any efforts to call for medical help nor did he drive A.F. to the hospital due to unwanted police contact. By the time A.F. arrived to the hospital, he was already deceased.

 

Law enforcement then began investigating Rodolph and Hopkins under suspicion they were distributing narcotics out of their residence. While evidence did not indicate that Rodolph or Hopkins supplied the methamphetamine that ultimately lead to A.F.’s death, Rodolph was eventually found with large amounts of heroin and methamphetamine and admitted to taking numerous flights to Washington state to buy narcotics and bring them back to Alaska. Rodolph admitted that he had taken approximately 20 trips to Seattle and would return with 2-5 ounces of heroin each time. He further admitted to selling the drugs from his residence and that he kept firearms in order to protect himself from being robbed. Hopkins admitted to having full knowledge of the drug trafficking and stated she helped facilitate drug transactions.

 

Over the course of the conspiracy between January 2015 and March 24, 2016, Rodolph brought in at least 2,080 grams of heroin valued at $624,000.

 

A search warrant of the residence revealed numerous items of drug paraphernalia, heroin, methamphetamine, scales, and firearms – all which were in plain view and accessible to their 15-year-old daughter.

 

Acting U.S. Attorney Schroder commended the DEA and AST for the investigation leading to the successful prosecution of this case.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Michael Thomas McTigue, 33, resident of Wasilla, Alaska, was sentenced yesterday by U.S. District Judge Sharon L. Gleason to two years in prison, to be followed by a one-year term of supervised release, for making threats online and extorting money in return.

 

According to documents filed in this case, the defendant trolled women he met online through the Meetme.com and Kik Messenger applications. In several instances, the defendant formed online romantic relationships with women, and received sexually explicit photographs from them. On at least one occasion, the defendant then took the photographs that he received and threatened to publish them unless the victim worked for him as a prostitute and sent to him some of the money that she earned. The defendant went so far as to post online prostitution advertisements for the victim. In response to this threat, the victim complied, sending the defendant more than $1,000.

 

During the investigation, the Federal Bureau of Investigation (FBI) located two other women who had sent money to the defendant. In addition, the FBI located three other women for whom the defendant has posted online prostitution advertisements.

The case was the product of an investigation by the FBI’s Safe Streets/Crimes Against Children/Human Trafficking Task Force. The task force marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims. Assistant U.S. Attorney Kyle Reardon prosecuted the case.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a former Alaska Department of Corrections employee was sentenced to eight months in federal prison for his role in smuggling drugs into Goose Creek Correctional Center (GCCC) in Wasilla, Alaska.

Adam Jason Spindler, 33, of Wasilla, a former Corrections Officer at GCCC, was sentenced today by U.S. District Judge Sharon L. Gleason, to eight months in federal prison, three years of supervised release, forfeiture of his 2011 pickup truck, a $1,400 fine, and 120 hours of community service. On

Aug. 29, 2016, Spindler pled guilty to one count of drug conspiracy and one count of possession of controlled substances with the intent to distribute.

According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, between at least March 30, 2016, and May 23, 2016, Spindler agreed on multiple occasions to smuggle drugs into GCCC for several different GCCC inmates housed in the section of GCCC that Spindler was responsible for guarding as a Corrections Officer. More specifically, Spindler met with several inmates’ respective drug associates at locations outside of GCCC to obtain drugs, and then smuggled those drugs into GCCC and delivered them to the particular inmate for whom Spindler had obtained and smuggled the drugs. Spindler got the drugs into the prison by hiding them when he reported for work. As a Corrections Officer, Spindler had to pass through a metal detector but was not routinely subjected to pat-down or further searches when he entered GCCC. To coordinate these drug trafficking schemes, Spindler obtained contact information for each co-conspirator inmate’s drug courier(s) from the applicable inmate, and then communicated with the drug courier via telephone and text message to arrange meetings outside of GCCC to obtain the drugs.

One of the drug schemes that Spindler was involved in was his May 2016 conspiracy with inmate Edward Wayne George, aka “Bigs,” and George’s girlfriend, Taylor Hunter, to smuggle drugs into GCCC for distribution to other inmates. George was a GCCC inmate who was housed in the same section of GCCC where Spindler worked as a Corrections Officer. Spindler got Hunter’s contact information from George and from there, Spindler and Hunter coordinated the drug delivery directly. Between May 5 and May 25, 2016, Spindler had contact with Hunter approximately 35 times.

On May 23, 2016, as law enforcement officers looked on, Spindler, who was dressed in his Alaska Department of Corrections uniform, met Hunter at a McDonald’s restaurant in Wasilla to retrieve the drugs that Spindler planned to smuggle to George. Hunter then got into Spindler’s truck and she handed Spindler a plastic baggie containing heroin and marijuana. Spindler then drove from the McDonald’s directly to GCCC. Spindler entered GCCC to begin his shift and was detained and subsequently arrested by the Federal Bureau of Investigation (FBI).

Spindler admitted that he was paid approximately $1,400 altogether for smuggling drugs into GCCC, but made it clear that he was doing it for the “excitement” not the money.

At sentencing, Judge Gleason noted the seriousness of Spindler’s crimes and recognized “the enormous” and multi-faceted impact that introducing drugs into a prison environment has to GCCC inmates, GCCC personnel, and public trust. In addition, the Judge specifically noted the need for the sentence imposed to deter others by sending the “message that this conduct cannot be tolerated,” particularly by a Corrections Officer like Spindler who “betrayed public trust.” Judge Gleason also noted that Spindler’s crimes were not a “one time event or one time error in judgment,” but spanned two months, and were perpetrated in “a prison environment.” The Judge specifically noted being “troubled” by Spindler being corrupted by the lure of, in his words, “excitement.”

Edward Wayne George, 27, was previously sentenced on April 6, 2017, to 33 months in prison, followed by three years of supervised release, for his role in the conspiracy. At his sentencing, Judge Gleason noted that the offense endangered not just the other GCCC inmates but, importantly, GCCC employees, “who leave their families every day” to work within the state’s largest prison.

Taylor Hunter, 20, is scheduled to be sentenced on May 17, 2017, at 1:30 P.M.

“The vast majority of government employees work hard every day to serve the people of the nation and our state,” said Acting U.S. Attorney Schroder. “However, when one of them becomes corrupt, it is necessary to hold them accountable.”

“Over the past year, we’ve developed strong working relationships, especially with the Department of Corrections to identify possible cases of corruption within our prisons,” said FBI Special Agent in Charge, Marlin Ritzman. “This case is just the beginning of our collaboration with DOC. FBI Anchorage is committed to rooting out corruption at whatever level it exists.”

Acting U.S. Attorney Schroder commended the FBI who conducted the investigation, as well as the Alaska Department of Corrections for their substantial assistance, leading to the successful prosecution of this case.

Fairbanks, Alaska – Acting U.S. Attorney Bryan Schroder and U.S. Fish and Wildlife Service Special Agent in Charge, Ryan Noel, announced today that four Point Hope residents were sentenced in Fairbanks by Senior U.S. District Judge Ralph R. Beistline for charges stemming from their involvement in the illegal taking and waste of walruses near Cape Lisburne, Alaska, in September 2015. In issuing the sentences, the court accepted the concurrent sentencing recommendations of the tribal government of the Native Village of Point Hope, the U.S. Attorney’s Office, the defendants, and the U.S. Fish and Wildlife Service.

 

Adam T. Sage, 24, Michael R. Tuzroyluk Jr., 21, Guy S. Tuzroyluk, 27, and Jacob Lane, 24, residents of Point Hope, Alaska, pleaded guilty in federal court in Fairbanks for violations of the Marine Mammal Protection Act related to the illegal take of walrus. The charges arose from two hunting trips the men made to Cape Lisburne, Alaska, in 2015, where several hundred to a thousand or more walruses were hauled out on the beach. During the trips, some of the men shot several walruses and salvaged only the ivory tusks, leaving the entire carcass of each animal to waste. On each occasion, their actions caused the herd to stampede, which killed or injured up to two dozen or more additional walruses, half of them calves. All of the walruses killed in the stampedes were left to waste.

 

As part of a plea agreement, the defendants were sentenced to a three-year term of probation. The Council of the Native Village of Point Hope recommended special terms of probation to be imposed. The U.S. Attorney’s Office and each of the four defendants jointly agreed to those terms. The District Court accepted them and sentenced each defendant to three years’ probation, including these conditions:

 

• Pay $1000 restitution to be used for walrus conservation projects on Alaskan National Wildlife Refuges;

• Perform 500 hours of community service in Point Hope;

• Publicly apologize for their offenses to the Native Village of Point Hope Council and the Point Hope whaling captains;

• Make 12 public presentations in Point Hope and other coastal villages on hunting ethics and the legal duty to salvage in full any animal taken;

• No hunting of walrus for one year;

• Hunt for the subsistence needs of Point Hope elders during probation.

 

“The probationary sentence in this case, specifically the jointly recommended special conditions of probation, represent a unique and culturally informed resolution to serious marine mammal violations,” said Acting U.S. Attorney Schroder. “It is appropriate to work with the Native Village of Point Hope and its Council to further the goals of resource protection on which the applicable laws are grounded.”

 

"The U.S. Fish and Wildlife Service commends its law enforcement and conservation partners in aiding with this logistically difficult and after the fact investigation and prosecution. The village of Point Hope has a long tradition of subsistence hunting and fishing and occupies an important and central leadership role in the stewardship of Pacific walrus in Alaska,” said U.S. Fish and Wildlife Service Special Agent in Charge, Ryan Noel. “We are pleased with the sentence developed by the U.S. Attorney's Office and the representatives of Point Hope and are hopeful that it will enhance public awareness of the sensitivity of walrus haul-outs and the taking of walrus in violation of the law.”

 

This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement for Northern Alaska, with assistance from the U.S. Fish & Wildlife Service Marine Mammals Management Office, the North Slope Borough Police Department, the North Slope Borough Department of Wildlife Management, the Department of the Interior Office of Inspector General Digital Forensic Lab, and the Alaska Sea Life Center in Seward, Alaska.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Scott Hartvig McDowell, 49, of Anchorage, was sentenced yesterday by U.S. District Judge Sharon L. Gleason to serve four years in prison for his conviction for bank robbery, followed by three years of supervised release. McDowell was also ordered to pay $2,700 in restitution.

 

On Aug. 2, 2016, McDowell walked into Alaska USA Federal Credit Union located at 777 Juneau Street in Anchorage and presented a note to the teller asking her to empty the cash drawer. McDowell asked for $50 and $100 bills. The teller gave him approximately $2,700 in U.S. currency. McDowell was apprehended several days later by law enforcement.

 

Judge Gleason reflected on McDowell's history of thefts and robberies, and noted, "As a society, this type of conduct is something that we cannot have." She also observed that bank robberies are terrifying experiences for the tellers and customers who are only there to work and conduct legitimate transactions.

 

Assistant U.S. Attorney Kelly Cavanaugh prosecuted this case for the United States.

 

Acting U.S. Attorney Schroder commends the Federal Bureau of Investigation and the Anchorage Police Department for the successful investigation and prosecution of this case.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Jason Paul Bryant-Wilde, 44, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason to serve five years in prison for his conviction for possession of heroin with intent to distribute, followed by four years of supervised release.

 

On Aug. 25, 2016, Bryant-Wilde was confronted in the parking lot of Natural Pantry by a loss prevention officer. Bryant-Wilde had walked out with over $200 of grocery items that he did not pay for, and after a brief altercation in the parking lot, he was detained by the loss prevention officer. The loss prevention officer searched Bryant-Wilde while waiting for the Anchorage Police to arrive. Bryant-Wilde had over 100 grams of heroin in his possession that he intended to distribute. This amount of heroin has a street value of approximately $30,000.

 

Assistant U.S. Attorney Kelly Cavanaugh prosecuted this case for the United States.

 

Acting U.S. Attorney Schroder commends the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Anchorage Police Department, and the loss prevention team at Natural Pantry for the successful investigation and prosecution of this case.

Juneau, Alaska – Acting U.S. Attorney Bryan Schroder announced today that, yesterday, a Juneau man was arrested on a federal complaint and arraigned in federal court in Juneau for one count of production of child pornography, one count of enticement of a minor using the internet, and one count each of receipt and possession of child pornography.

 

Scott Andrew Funk, 24, resident of Juneau, Alaska, was arrested yesterday by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) based on a four count criminal complaint charging him with production of child pornography, enticement of a minor using the internet, and receipt and possession of child pornography. If convicted of the production of child pornography, Funk is subject to a mandatory minimum of 15 years and up to a maximum of 30 years in prison; for enticement of a minor using the internet, Funk is subject to a mandatory minimum sentence of 10 years up to life imprisonment; for receipt of child pornography, Funk is subject to a mandatory minimum sentence of five years up to 20 years imprisonment; and Funk is subject to a maximum sentence of 10 years of imprisonment for possession of child pornography. A maximum fine of $250,000 applies to each count.

 

According to Assistant U.S. Attorney Jack S. Schmidt, who conducted the arraignment, Funk came to the attention of HSI when a parent in the lower 48 discovered electronic communications between Funk and the parent’s minor child. The investigation revealed Funk had communicated with the juvenile from early March to early April using internet-based phone applications and messaging services. Funk directed the minor to produce and send sexually explicit images to Funk, that he received using those internet-based applications and messaging services.

 

The Charges and resulting prosecution are part of the Department of Justice’s ongoing Project Safe Child (PSC) initiative and HSI’s initiative to combat child exploitation. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, identify and rescue victims and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.

 

Launched in 2003, HSI’s initiative to combat child exploitation has resulted in the arrest of more than 14,000 individuals for crimes against children, including the production and distribution of online child pornography, traveling overseas for sex with minors, and sex trafficking of children. For additional information about these investigations, download HSI’s smartphone app or visit the online suspect alerts page.

 

A complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a California man pleaded guilty in federal court in Anchorage to one count of conspiracy to commit wire fraud and one count of aggravated identity theft based upon a scheme to use the illegally obtained personal identity information of others to prepare false W-2’s and then file false individual income tax returns in order to get refunds due to others.

 

Demetrick Ruffin, 41, from Los Angeles, CA, pleaded guilty before Chief U.S. District Court Judge Timothy M. Burgess.

 

In connection with the guilty plea, Assistant U.S. Attorney Retta Randall advised the court that between January 2009 through March 2010, Ruffin conspired with others to obtain identity information, such as names, dates of birth, and social security numbers, which were then used to prepare false IRS W-2 Forms that contained fabricated wage and withholding amounts. The co-conspirators then took the identity information and falsified documents to tax return preparation services in Anchorage, Eagle River, and Palmer, Alaska, as well as in Los Angeles and Orange County, California, to have tax returns prepared and electronically submitted to the IRS.

 

The false returns requested refunds totaling between $1,400 and $8,600. In some instances, Ruffin and his co-conspirators used the stolen identity information to claim that the “taxpayers” had dependent children that they did not, in fact, have. By claiming additional dependents, the co-conspirators were able to increase the amount of refunds that the returns generated. In many cases, the defendants applied for refund anticipation loans and had the fraudulently obtained tax refunds loaded onto stored value cards allowing them instant access to the money even if the IRS later rejected the falsely filed returns.

 

Judge Burgess scheduled Ruffin’s sentencing for July 10, 2017, at 10:00 a.m. The law provides for a total of 20 years in prison, a fine of $250,000, or both, on the conspiracy charge. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any of the defendant. The crime of aggravated identity theft provides for a mandatory two-year sentence to be imposed consecutively to the sentence imposed on the conspiracy charge.

 

Ruffin is detained pending sentencing. A fugitive for three years, Ruffin was arrested in July 2016 by the U.S. Marshals.

 

By that time, Ruffin’s co-conspirators had been sentenced by Chief Judge Burgess. Jameane Bolton-Williams was sentenced to 82 months in prison and ordered to pay restitution in the amount of $91,927.65. Joe Douglas was sentenced to 57 months in prison and ordered to pay restitution in the amount of $43,043.55. Lucille Stansberry was sentenced to 36 months and one day in prison and ordered to pay restitution in the amount of $48,619.95.

 

“Identify theft related tax refund fraud is a top priority for the IRS. Together with the US Attorney’s Office, we are committed to fighting this growing epidemic,” said Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. “As damaging as it is to the government and our tax system when this type of crime is committed, we know identity theft is emotionally devastating to those victimized by this scourge. This plea today is a victory for every honest taxpaying American, but especially so for those directly impacted by this nefarious crime. During the closing days of this filing season, we warn everyone to be ever vigilant in safe-guarding their personal information.”

 

Acting U.S. Attorney Schroder commends the IRS Criminal Investigation for the investigation of this case.

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder today announced an extensive effort to disrupt and dismantle the Kelihos botnet – a global network of tens of thousands of infected computers under the control of a cybercriminal that was used to facilitate malicious activities including harvesting login credentials, distributing hundreds of millions of spam e-mails, and installing ransomware and other malicious software.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bryan Schroder for the District of Alaska, Assistant Director Scott Smith for the FBI’s Cyber Division and FBI Special Agent in Charge Marlin Ritzman of the Anchorage Division made the announcement.

 

"The operation announced today targeted an ongoing international scheme that was distributing hundreds of millions of fraudulent e-mails per year, intercepting the credentials to online and financial accounts belonging to thousands of Americans, and spreading ransomware throughout our networks. The ability of botnets like Kelihos to be weaponized quickly for vast and varied types of harms is a dangerous and deep threat to all Americans, driving at the core of how we communicate, network, earn a living, and live our everyday lives,” said Acting Assistant Attorney General Blanco. “Our success in disrupting the Kelihos botnet was the result of strong cooperation between private industry experts and law enforcement, and the use of innovative legal and technical tactics. The Department of Justice is committed to combatting cybercrime, no matter the size or sophistication of the scheme, and to punish those who are engaged in such crimes.”

 

“Cybercrime is a worldwide problem, but one that infects its victims directly through the computers and personal electronic devices that we use every day,” said Acting U.S. Attorney Schroder. “Protecting the American people from such a worldwide threat requires a broad-reaching response, and the dismantling of the Kelihos botnet was such an operation. We are lucky that we have talented FBI agents and federal prosecutors here in Alaska with the skillsets to help protect Alaskans from this insidious electronic disease.”

 

“On April 8, 2017, we started the extraordinary task of blocking malicious domains associated with the Kelihos botnet to prohibit further infections,” said FBI Special Agent in Charge Ritzman. “This case demonstrates the FBI’s commitment to finding and eradicating cyber threats no matter where they are in the world.”

 

Kelihos malware targeted computers running the Microsoft Windows operating system. Infected computers became part of a network of compromised computers known as a botnet and were controlled remotely through a decentralized command and control system. According to the civil complaint, Peter Yuryevich Levashov allegedly operated the Kelihos botnet since approximately 2010. The Kelihos malware harvested user credentials by searching infected computers for usernames and passwords and by intercepting network traffic. Levashov allegedly used the information gained from this credential harvesting operation to further his illegal spamming operation which he advertised on various online criminal forums. The Kelihos botnet generated and distributed enormous volumes of unsolicited spam e-mails advertising counterfeit drugs, deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes), work-at-home scams, and other frauds. Kelihos was also responsible for directly installing additional malware onto victims’ computers, including ransomware and malware that intercepts users’ bank account passwords.

 

As with other botnets, Kelihos is designed to operate automatically and undetected on victims’ computers, with the malicious code secretly sending requests for instructions to the botnet operator. In order to liberate the victim computers from the botnet, the United States obtained civil and criminal court orders in the District of Alaska. These orders authorized measures to neutralize the Kelihos botnet by (1) establishing substitute servers that receive the automated requests for instructions so that infected computers no longer communicate with the criminal operator and (2) blocking any commands sent from the criminal operator attempting to regain control of the infected computers.

 

In seeking authorization to disrupt and dismantle the Kelihos botnet, law enforcement obtained a warrant pursuant to recent amendments to Rule 41 of the Federal Rules of Criminal Procedure. A copy of this warrant along with the other court orders are produced below. The warrant obtained by the government authorizes law enforcement to redirect Kelihos-infected computers to a substitute server and to record the ternet Protocol addresses of those computers as they connect to the server. This will enable the government to provide the IP addresses of Kelihos victims to those who can assist with removing the Kelihos malware including internet service providers.

 

The efforts to disrupt and dismantle the Kelihos botnet were led by the FBI’s Anchorage Office and New Haven Office; Senior Counsel Ethan Arenson and Harold Chun, and Trial Attorney Frank Lin of the Computer Crime and Intellectual Property Section; and Assistant U.S. Attorneys Yvonne Lamoureux and Adam Alexander of the District of Alaska. Critical assistance was also provided by foreign partners, and invaluable technical assistance was provided by CrowdStrike and The Shadowserver Foundation in executing this operation.

 

The details contained in the civil complaint and related pleadings are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 

The Government has and will continue to share samples of the Kelihos malware with the internet security community so that antivirus vendors can update their programs to detect and remove Kelihos. A number of free and paid antivirus programs are already capable of detecting and removing Kelihos, including the Microsoft Safety Scanner, a free product.

 

The documents filed by the Government as well as the court orders entered in this case are available online at the following web address:

 

• Complaint
• Motion for TRO & Order to Show Cause
• Memorandum of Law in Support of TRO
• Declaration in Support of TRO
• TRO & Order to Show Cause
• Search Warrant
• Search Warrant Application & Affidavit
• PRTT Order
• PRTT Application

Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that Furie Operating Alaska LLC (“Furie”), a company whose focus is exploration and production of natural gas and oil in Cook Inlet, has agreed to pay $10 million to satisfy a civil penalty originally assessed against it by U.S. Customs and Border Protection (“CBP”) for violating the Jones Act. Furie was penalized when it transported the Spartan 151 jack-up drill rig from the Gulf of Mexico to Alaska in 2011 using a foreign flagged vessel without acquiring a waiver of the Jones Act from the Secretary of Homeland Security. This resolves a civil lawsuit filed by Furie in 2012 challenging the assessment of the civil penalty.

 

The Jones Act, passed in 1920, prohibits a foreign vessel from transporting merchandise between points in the United States. A violation of the Jones Act may result in the assessment of a civil penalty equal to the value of the merchandise. A waiver may be obtained, in limited circumstances, from the Secretary of the Department of Homeland Security when he or she believes it is in the interest of national defense, following a determination that there is no U.S. vessel available to engage in the transport. settlement in this case is the largest Jones Act penalty in the history of the Act.

 

Resolution of this case demonstrates that the Jones Act will be actively enforced and that an intentional violation will not be rewarded. The settlement also provides closure to Furie and is designed not to undermine its ability to bring natural gas to market in Southcentral Alaska.

 

Acting U.S. Attorney Schroder commends U.S. Customs and Border Protection, Office of General Counsel, for their active support and assistance leading to the settlement in this case.

Fairbanks, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a Fairbanks woman was sentenced in federal court in Fairbanks for one count of trafficking heroin and methamphetamine.

 

Maria Laren Henry, 31, of Fairbanks, Alaska, was sentenced on Friday by Senior U.S. District Judge Ralph R. Beistline, to 70 months in prison, to be followed by five years of supervised release.

 

According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, Henry’s drug trafficking came to authorities’ attention on July 12, 2016, after the defendant caused a single vehicle accident in Fairbanks, Alaska, at around 10 o’clock that Tuesday morning. The defendant, driving at a high rate of speed on Chena Pump Road, crossed the centerline and veered into oncoming traffic, nearly hitting three vehicles, and then crossed the adjoining bike path and struck several mailboxes. The defendant was transported by ambulance to Fairbanks Memorial Hospital for medical attention, where the defendant was found in possession of 27.5 grams of heroin and 21.5 grams of pure methamphetamine. Specifically, the heroin was inside a plastic container that the defendant was clutching in her hand and the methamphetamine was discovered inside her when medical professionals prepared her for surgery. Thereafter, the Alaska State Troopers Fairbanks Statewide Drug Enforcement Unit (AST SDEU) obtained a search warrant for the defendant’s impounded vehicle and found inside, among other things, a loaded .9mm handgun in the defendant’s jacket pocket, 100 clear plastic baggies resembling the baggie containing methamphetamine that was removed from the defendant’s body on July 12, a cell phone containing numerous incriminating text messages and other information, prescription pills belonging to a third party, as well as ample indicia of heroin and other drug use.

 

During the sentencing hearing, Judge Beistline noted the defendant’s extensive criminal history, including a prior drug offense involving the defendant trying to hit a cop with her car and several 2016 burglary charges that arose in the Fairbanks and North Pole area.

 

Acting U.S. Attorney Schroder also wishes to commend the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Alaska State Troopers Fairbanks Statewide Drug Enforcement Unit for their investigation of this case.