District of Alaska

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Martin Ray Lewis, 49, of Anchorage, was sentenced by Chief U.S. District Judge Timothy M. Burgess to serve 96 months in prison for his role in a drug trafficking and money laundering conspiracy, followed by five years of supervised release.  Lewis was also sentenced to 70 months in prison for being a felon in possession of firearms, followed by three years of supervised release.  Both sentences are to be served concurrently.

On July 26, 2013, Lewis received a package that contained 110 grams of methamphetamine at a private mail box in Anchorage registered to him and another person.  A previous package sent to the same mailbox contained 190 grams of heroin.  Both of these packages were sent from California.  Lewis' residence was searched by law enforcement immediately after he returned with the package and law enforcement found evidence of drug trafficking including packaging used in drug sales, smaller quantities of packaged methamphetamine, digital scales, and several drug smoking devices.  Law enforcement also found six firearms.  Lewis has a previous felony conviction that was punishable by more than one year imprisonment.  

U.S. Attorney Loeffler commends the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigations, the Department of Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, for the successful investigation and prosecution of this case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Shanice Mano, 23, of Anchorage, Alaska, was arrested on July 25, 2016, and was arraigned yesterday in federal court on a criminal complaint charging her with bank embezzlement.  The complaint alleges that she had embezzled over $100,000 from her former employer, Credit Union 1.

According to the complaint, Mano was a teller at Credit Union 1 when she accessed customer accounts without authority and transferred money to accounts that she had control over and from which she was able to make withdrawals. 

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 FBI conducted the investigation leading to the arrest. 

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 guilty beyond a reasonable doubt. 

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Assistant U.S. Attorney, Bryan Schroder has been appointed to the position of First Assistant U.S. Attorney (FAUSA) and Criminal Chief for the United States Attorney’s Office, District of Alaska.  Mr. Schroder replaces FAUSA Kevin Feldis, who has taken the position as the Resident Legal Advisor for the Department of Justice, Office of Professional Development and Training (OPDAT), for Jakarta, Indonesia.  Mr. Feldis will be working with the United States Embassy in Jakarta on a temporary detail and will remain as a member of the United States Attorney’s office for Alaska.

Bryan Schroder has been an Assistant U.S. Attorney since 2005, and is a retired U.S. Coast Guard Captain.  He is a 1981 graduate of the U.S. Coast Guard Academy, and 1991 graduate of the University of Washington School of Law.  He served 24 years in the Coast Guard, initially in operational assignments in Seattle, Long Beach, California, and San Diego.  He then served as a judge advocate in Juneau, Anchorage, Miami, New York, and Colorado Springs.  As an Assistant U.S. Attorney, he has handled cases involving drugs, guns, violent crime, fisheries, environmental crime, tax violations, and fraud.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was sentenced by U.S. District Judge Sharon L. Gleason to 95 months in prison for bank robbery.

Wayne Michael Sexton, 45, of Wasilla, Alaska, was indicted by the grand jury in November 2015 for robbing Credit Union 1 located in the Midtown region of Anchorage, on Aug. 7, 2015.  Sexton, who has been in custody for the robbery since Nov. 9, 2015, has been detained in the Anchorage jail without bail. Sexton has a prior conviction for two bank robberies which he committed in 1999.

According to Assistant U.S. Attorney Steven Skrocki, Sexton carried and pointed a revolver at bank personnel, took over the entire bank lobby area, threatened and intimidated bank personnel and pilfered each teller station one at a time.  During the robbery, Sexton obtained more than $17,000 in cash. 

In sentencing Sexton to a term of 95 months, the court noted the impact of the crime on the victim tellers, Sexton’s display of a pistol during the robbery, the threat to the public and Sexton’s inability to avoid a life of crime.  Sexton told the court the robbery was “an act of a coward.” Sexton was also ordered by the court to pay $17,730 to Credit Union 1 in restitution.        

U.S. Attorney Loeffler commends the Federal Bureau of Investigation and the Alaska State Troopers for the investigation of this case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Ryan Lannen, 34, resident of Anchorage, Alaska, was sentenced yesterday by U.S. District Judge Sharon L. Gleason to 78 months in prison, to be followed by a 15-year term of supervised release, for two counts of distribution of child pornography.

According to court documents and arguments made during the sentencing hearing, in March 2015, Twitter, Inc. reported to the National Center for Missing and Exploited Children (NCMEC) that an individual located in Anchorage, Alaska, had sent child pornography through the Internet on four occasions between January and March 2015.  Anchorage Police Department (APD) identified the owner of the Twitter account as Lannen, an Airman at Joint Base Elmendorf Richardson (JBER), residing off post.  APD obtained a state search warrant for Lannen and his residence.  Located on Lannen’s phone were 29 images of child pornography.

Also located on the phone were multiple chats Lannen engaged in through the Kik Messenger application.  Many of these chats involved the discussion of sexual acts with minors, or child pornography.  During several of these chats, Lannen traded images of child pornography, including images of prepubescent minors as young as eight years old. 

On at least five other Kik instances, Lannen chatted with individuals who identified themselves as minors.  In four of these chats, Lannen said he was a 16-year-old girl, and attempted to obtain images from these other users.

Judge Gleason based her sentence in numerous factors, including the nature and circumstances of the defendant’s conduct, especially the impact the defendant’s crimes had on the minors depicted in the images that he traded.  Judge Gleason noted particularly the harm caused to victims by not only their initial abuse, but also the recurring harm caused because of the fact that “photos [of their abuse] are getting passed around all over the Internet and discussed[.]”  With her sentence of more than six years in prison , Judge Gleason also sought to “deter others from this criminal conduct.”

This case was investigated and prosecuted by the FBI Safe Streets Task Force, and the Alaska Internet Crimes Against Children (ICAC) Task Force.  The Alaska ICAC is a federally and state funded task force managed by the APD, comprised of agents from federal, military, state, and local agencies.  The purpose of the Alaska ICAC is to investigate online child exploitation crimes, including child pornography, enticement, and sex trafficking.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov, or contact the District of Alaska’s Project Safe Childhood Coordinator at (907) 271-5071.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that an Anchorage man was sentenced today in federal court to 21 months in prison for mail theft and credit card fraud. 

Evan Mullen, 28, resident of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason, who also ordered Mullen to pay full restitution. 

According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, that starting in December 2015, Mullen repeatedly stole mail from mailboxes of residents living in an Anchorage Hillside neighborhood.  Mullen was specifically looking for credit cards but he also stole packages from these mailboxes and threw other opened mail on the ground.  Mullen took the stolen credit cards and purchased gift cards and merchandise.  Mullen continued this conduct up until the day before his arrest in February 2016.  There were more than 10 victims of Mullen’s crimes including those who had their mail stolen and banks who absorbed the loss from the stolen credit cards.  Efforts by the victims in the Hillside neighborhood to identify Mullen were extremely valuable to law enforcement in the investigation and prosecution of this case. 

At sentencing, Judge Gleason noted the seriousness of the violation of the victims’ privacy when Mullen ransacked their private mail. 

U.S. Attorney Loeffler commends the U.S. Postal Inspection Service and the Anchorage Police Department for the investigation of this case. 

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was indicted in federal court on one count of committing a health care fraud scheme against the State of Alaska Medicaid program.

Mee Chong Collins, 70, a resident of Anchorage, was charged with executing a scheme involving the submission of numerous fraudulent timesheets beginning in February 2009 through June 2013, falsely claiming that her family members had provided personal care attendant services to four Medicaid recipients.  According to the indictment, the services were not provided.  It is further alleged that the fraudulent timesheets caused the payment of approximately $337,149.68 in Medicaid funds.

Medicaid is a joint federal and state program that covers health care expenses for low-income and disabled people.  Personal care attendants enable Medicaid recipients to remain in their homes, rather than move to an assisted living facility.

The investigation leading to the indictment in this case was conducted by federal and state agencies, including the Federal Bureau of Investigation, the United States Department of Health and Human Services – Office of Inspector General, the Department of Homeland Security, and the State of Alaska Medicaid Fraud Control Unit.

An arraignment date for the defendant has not been set yet by the court.

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 – U.S. Attorney Karen L. Loeffler announced today that Kasey Jo Martinez, 32, resident of Anchorage, Alaska, was sentenced yesterday by U.S. District Judge Sharon L. Gleason to 40 months in prison, to be followed by a three-year term of supervised release, for money laundering.

According to court documents and arguments made during the sentencing hearing, starting in the summer of 2014, law enforcement began investigating several individuals implicated in the distribution of methamphetamine and heroin throughout Southcentral Alaska.  As part of that investigation, law enforcement conducted surveillance at Fashion Nails, a nail salon owned by co-defendant Toa Danh “Tony” Ly.   Proceeds from the sale of methamphetamine and heroin were generally deposited into Wells Fargo bank accounts controlled by Ly.  These deposits were made by Martinez and others.  These deposits were frequently made at Wells Fargo branches in Alaska, and Ly often withdrew the money at branches in the Seattle, Washington area.

On Jan. 14, 2015, searches were done at seven locations connected to Ly’s drug distribution conspiracy.  Stopped in a Wells Fargo parking lot was co-conspirator Pao Lee; Martinez was in the vehicle with him.  In her possession was $2,000 in drug proceeds that she was planning on depositing into Ly’s bank account.

A review of financial records for one of Ly’s Wells Fargo accounts showed three additional deposits of drug proceeds by Martinez between Dec. 12, 2014, and Jan. 10, 2015, totaling $19,500.  In total, Martinez laundered or attempted to launder at least $21,500 in drug proceeds.

Including Martinez, at least seven other individuals have been implicated in this conspiracy.  In total, those individuals have deposited more than $350,000 in suspected drug proceeds into accounts controlled by Ly.

Judge Gleason based her sentence in numerous factors, including the nature and circumstances of the defendant’s conduct and the defendant’s history and characteristics.  Judge Gleason noted that while Martinez did not personally distribute drugs as part of the conspiracy, her role as a money launderer facilitated the distribution of methamphetamine and heroin in and around Anchorage.  “It is hard to separate one from another,” said Judge Gleason.  According to Judge Gleason, the defendant’s participation in the conspiracy impacted “mothers, daughters, fathers, and sons in the community” struggling with the issues brought about by illegal drugs.

Other defendants indicted as part of this investigation include:

• Toa Danh “Tony” Ly pleaded guilty to conspiracy to distribute controlled substances and money laundering conspiracy.Judgment and sentencing is set for Dec. 2, 2016.

• Pao Lee pleaded guilty to conspiracy to distribute controlled substances and distribution of controlled substances.Judgment and sentencing is set for Sept. 21, 2016.

• Renee Marie Davis pleaded guilty to conspiracy to distribute controlled substances.On Jan. 19, 2016, the court sentenced her to 72 months in prison.

• Robert Lee Rast pleaded guilty to conspiracy to distribute controlled substances. Judgment and sentencing is set for Nov. 1, 2016.

• Adam Michael Cornelison pleaded guilty to use of a firearm in furtherance of a drug trafficking offense.On Feb. 9, 2016, the court sentenced him to 60 months in prison.

• Murville Lavelle Lampkin and Tracey Elizabeth Trujillo are set for trial starting Oct. 18, 2016.

This case was investigated and prosecuted by the FBI Safe Streets Task Force, and Assistant U.S. Attorney Kyle Reardon.

WASHINGTON – The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a $425 million settlement with subsidiaries of Tesoro Corp., and Par Hawaii Refining that resolves alleged Clean Air Act violations and protects public health by reducing air pollution at six refineries. Under the settlement, the two companies will spend about $403 million to install and operate pollution control equipment, and Tesoro will spend about $12 million to fund environmental projects in local communities previously impacted by pollution. Tesoro will also pay a $10.45 million civil penalty. 

“This settlement, achieved in partnership with states, will benefit the air quality in communities across the Western United States,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “It uses cutting edge technology to address global environmental issues like climate change by controlling flaring and provides important reductions of harmful air pollution in communities facing environmental and health challenges.”

“The advanced technologies Tesoro and Par are required to implement are the future for protecting people from toxic air emissions,” said Assistant Administrator Cynthia Giles for EPA’s Enforcement and Compliance Assurance.  “This settlement puts new enforcement ideas to work that will dramatically cut pollution and protect communities.”  

Today’s settlement, a consent decree lodged in U.S. District Court for the Western District of Texas, includes provisions that resolves ongoing Clean Air Act violations at refineries in Kenai, Alaska; Martinez, California; Kapolei, Hawaii; Mandan, North Dakota; Salt Lake City, Utah; and Anacortes, Washington.  Of the $10.45 million civil penalty that Tesoro will pay, the United States will receive $8,050,000, and co-plaintiffs including the states of Alaska and Hawaii, and the Northwest Clean Air Agency will share $2.4 million.

Once the companies install the pollution controls required by the settlement, annual emissions reductions at the six refineries will total an estimated 773 tons of sulfur dioxide, 407 tons of nitrogen oxides, 1,140 tons of volatile organic compounds, 27 tons of hazardous air pollutants, 20 tons of hydrogen sulfide and the equivalent of 47,034 tons of carbon dioxide, which is a greenhouse gas.  A large number of the emissions reductions will occur in areas with impaired air quality and protect populations at risk for respiratory illnesses.  In particular, this settlement will reduce greenhouse gas emissions from flaring at the subject refineries by over 60 percent.

The settlement addresses a range of alleged leak detection and repair and flaring violations under the Clean Air Act at all six refineries as well as violations of the Act’s Prevention of Significant Deterioration, Non-Attainment New Source Review, New Source Performance Standards and National Emission Standards for Hazardous Air Pollutants at certain refineries.  The settlement also addresses various violations of state clean air laws, programs and permits.

Refineries process crude oil into products like gasoline, diesel fuel, kerosene, jet fuel, asphalt and liquefied petroleum gas and emit pollutants from a number of different sources.  At the refineries subject to this settlement, fluid catalytic cracking units, sulfuric acid plants, heaters, boilers and sulfur recovery units, are substantial emitters of nitrogen oxides (NOx) and sulfur dioxide (SO2).  Flaring results in emissions of SO2, greenhouse gases and toxic air pollutants, including volatile organic compounds (VOCs) and hazardous air pollutants.  Fugitive emissions of VOCs result from leaking valves and pumps and can result in numerous health effects, including eye, nose and throat irritation, headaches, loss of coordination, nausea and damage to liver, kidney and the central nervous system, among other effects.

Leaks, flares, and excess emissions from refineries emit hazardous air pollutants, or air toxics, that are known or suspected to cause cancer, birth defects, and seriously impact the environment.  SO2 and NOx have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze.  Refineries also emit greenhouse gases that contribute to climate change, as well as fugitive VOCs.

The settlement incorporates the latest technological approaches to reducing flaring and making the flaring that does occur as efficient as possible.  And in addition to installing pollution control equipment, the settlement requires Tesoro to use a series of state-of-the-art Next Generation Compliance tools to monitor pollution.  Tesoro will use infrared gas-imaging cameras at four refineries to supplement the company’s enhanced leak detection and repair program.  These cameras are able to locate fugitive VOC emissions that may not be otherwise detected and to address these fugitive emissions and in doing so protect refinery employees from them.  Tesoro will also pay for third-party auditing of compliance with the enhanced leak detection and repair requirements at all six facilities.  EPA’s Next Generation Compliance strategy works to advance the use of state-of-the-art technology to identify and reduce pollution.

Under the settlement, Tesoro will also spend about $12.2 million to fund three pollution mitigation projects.  In addition to installing infrared cameras, Tesoro will install ultra-low NOx burners on a furnace at its Salt Lake City refinery.  Tesoro estimates that the cost of this mitigation project is $10.8 million and is expected to result in significant quantifiable reductions in NOX emissions.  Tesoro will also contribute $1 million to fund the replacement of old diesel school buses in Contra Costa County, California, with new compressed natural gas (CNG) school buses. Replacing existing school buses that run on diesel with vehicles that are powered by CNG decreases emissions of NOX, SO2, PM, greenhouse gases and other air pollutants.

This settlement is part of EPA’s National Enforcement Initiative to control harmful emissions from large sources of pollution, which includes refineries, under the Clean Air Act’s Prevention of Significant Deterioration requirements.  The total combined SO2 and NOx emission reductions secured from all settlements under this initiative will exceed 2 million tons each year once all the required pollution controls have been installed and implemented.

Tesoro Corp., is headquartered in San Antonio, Texas, and its subsidiaries, Tesoro Alaska Company LLC, Tesoro Logistics L.P. and Tesoro Refining & Marketing Company LLC operate five of the refineries covered by this settlement.  Par Pacific Holdings, Inc., formerly known as Par Petroleum Corp. and a parent corporation of Par Hawaii Refining, purchased the Kapolei refinery from Tesoro in 2013.

There will be a 30 day public comment period on the consent decree lodged today.  Information on how to comment on the consent decree will be available in the Federal Register and on the Department of Justice’s website: www.justice.gov/enrd/consent-decrees.

For more information on the settlement or to read the consent decree, go to https://www.epa.gov/enforcement/tesoro-and-par-clean-air-act-settlement

Fairbanks, Alaska – A Fort Wainwright Army sergeant pleaded guilty today to conspiracy to receive bribes and defraud the United States in connection with a scheme to steal fuel at a forward operating base (FOB) in Afghanistan. 

U.S. Attorney Karen L. Loeffler of the District of Alaska, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Marlin L. Ritzman of the FBI’s Anchorage, Alaska, Division and Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.

Sheldon J. Morgan, 36, pleaded guilty in Fairbanks, Alaska, before U.S. District Judge Ralph R. Beistline to a one-count information charging him with conspiracy to receive bribes and defraud the United States.  Sentencing is scheduled for Oct. 21, 2016.

According to admissions made as part of this plea agreement, from May 2010 until May 2011, Morgan, then a specialist in the U.S. Army, was deployed at FOB Fenty, near Jalalabad, Afghanistan.  FOB Fenty served as a hub for distribution of fuel to nearby military bases.  Morgan’s duties included assisting in overseeing the distribution of fuel to the bases.

Morgan also admitted that on two separate occasions in December 2010, he arranged for a translator employed by an Afghan trucking company to steal 5,000 gallons of fuel.  The translator promised Morgan $5,000 per truckload and wired the money to an account outside of the United States that Morgan had his wife open in her name.  Morgan admitted that he and his wife used the money for their personal benefit.  The conspiracy caused approximately $37,300 in loss to the U.S. government.

This is the eighth guilty plea for similar fuel theft/bribery schemes at FOB Fenty for U.S. military members and their associates who were assigned to the base between June 2009 and April 2012.

The FBI and SIGAR investigated the case.  Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Cooper of the District of Alaska are prosecuting the case.

A Fort Wainwright Army sergeant pleaded guilty today to conspiracy to receive bribes and defraud the United States in connection with a scheme to steal fuel at a forward operating base (FOB) in Afghanistan. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Karen L. Loeffler of the District of Alaska, Special Agent in Charge Marlin L. Ritzman of the FBI’s Anchorage, Alaska, Division and Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.

Sheldon J. Morgan, 36, pleaded guilty in Fairbanks, Alaska, before U.S. District Judge Ralph R. Beistline of the District of Alaska to a one-count information charging him with conspiracy to receive bribes and defraud the United States.  Sentencing is scheduled for Oct. 21, 2016.

According to admissions made as part of this plea agreement, from May 2010 until May 2011, Morgan, then a specialist in the U.S. Army, was deployed at FOB Fenty, near Jalalabad, Afghanistan.  FOB Fenty served as a hub for distribution of fuel to nearby military bases.  Morgan’s duties included assisting in overseeing the distribution of fuel to the bases, he admitted. 

Morgan also admitted that on two separate occasions in December 2010, he arranged for a translator employed by an Afghan trucking company to steal 5,000 gallons of fuel.  The translator promised Morgan $5,000 per truckload and wired the money to an account outside of the United States that Morgan had his wife open in her name, according to the plea agreement.  Morgan admitted that he and his wife used the money for their personal benefit.  The conspiracy caused approximately $37,300 in loss to the U.S. government.

This is the eighth guilty plea for similar fuel theft/bribery schemes at FOB Fenty for U.S. military members and their associates who were assigned to the base between June 2009 and April 2012.

The FBI and SIGAR investigated the case.  Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Cooper of the District of Alaska are prosecuting the case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Anchorage resident Antonio D. Washington, 56, was sentenced today in U.S. District Court in Anchorage to 162 months in federal prison for his conviction for distributing methamphetamine.

Washington was indicted by a federal grand jury in December 2015 for distributing methamphetamine on four different occasions in 2015.  Washington pled guilty to one count of the indictment in March 2016, and faced a mandatory minimum sentence of 120 months (10 years) due to the amount of methamphetamine he distributed.

In sentencing Washington to 162 months, U.S. District Judge Sharon L. Gleason cited Washington’s long criminal history – with much of it involving crimes of violence – as the primary reason for the lengthy sentence.  Judge Gleason stated that the need to protect the public from further crimes by Washington justified the sentence of 162 months.

The Federal Bureau of Investigation Safe Streets Task Force conducted the investigation leading to the indictment and conviction in this case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Billy Ray Lang, Jr. 29, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason to serve 46 months in prison for his role in a drug trafficking and money laundering conspiracy, followed by five years of supervised release. 

Lang, Jr.'s role in the conspiracy was to purchase heroin in California and ship it to his co-conspirators in Alaska.  Co-conspirators would send Lang, Jr. money orders and cash via the U.S. Postal Office, as well as make deposits into his bank account.  Lang, Jr. would use this money to pay for additional narcotics in California.  The money orders and bank deposits were used to conceal the proceeds of the sale of the narcotics in Alaska.

Lang, Jr.'s co-conspirators Billy Ray Lang, Sr., 62, and Tynisha Jean Merriouns, 34, were previously sentenced for their roles in this conspiracy.  In November 2015, Billy Ray Lang, Sr. was sentenced to seven years in prison and Tynisha Merriouns was sentenced to four years in prison.  They were also required to forfeit $40,000 in cash and Postal Money orders seized by investigators during a search of their home.

U.S. Attorney Loeffler commends the Anchorage Police Department, the Drug Enforcement Administration, and the Internal Revenue Service Criminal Investigations for the successful investigation and prosecution of this case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Petersburg man was indicted for the transportation and possession of child pornography.

Marvin Mitchell Jackson, 28, a resident of Petersburg, Alaska, was arraigned today before U.S. Magistrate Judge Leslie C. Longenbaugh on the charges of transporting and possessing child pornography.  Jackson pled not guilty to the charges and was ordered detained pending trial.

Assistant U.S. Attorney Jack S. Schmidt, who is prosecuting the case, informed the court that Jackson was contacted Jan. 18, 2016, during an unrelated investigation.  Jackson was traveling from Washington to Petersburg, Alaska, on a commercial air carrier; his cell phone was seized and subsequently searched pursuant to a search warrant as part of that investigation.  During the search, a number of images of child pornography were discovered.  Law enforcement obtained additional search warrants and discovered hundreds of images of prepubescent children engaged in sexually explicit conduct, including images of known identifiable children obtained from Facebook and other media that had been modified by the defendant to depict the children in those images engaging in sexual explicit conduct.  Many of the images were modified by the defendant to depict prepubescent children engaged in sexual explicit conduct, including text stating sexual abuse fantasies related to those children.

Jackson faces a mandatory minimum sentence of five years for the transportation of child pornography and faces a potential maximum sentence on each charge of 20 years in prison, and a $250,000 fine, or both.  Jackson also faces up to life on supervised release.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.  Magistrate Judge Longenbaugh set a trial date for August 1, 2016, and ordered Jackson detained pending trial.  The defendant is currently awaiting sentencing on the related drug charges in state court.

The charges against Jackson are the result of an investigation conducted by the Federal Bureau of Investigation (FBI) and the Petersburg Police Department.  If the public has any further information, questions, or concerns about the activities of Jackson please contact the FBI at (907) 265-8254.

This case is being brought as part of Project Safe Childhood.  In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov

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

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Egegik man has been charged with possessing with the intent to distribute over 500 grams or more of methamphetamine.

Jason Corey Vincent Alto, 20, of Egegik, Alaska, was charged with possessing nearly three pounds of methamphetamine while traveling on the Alaska Marine Highway System M/V Kennicott.  Alto was traveling from Washington to Whittier, Alaska, when he was contacted in Ketchikan and a search of his luggage revealed methamphetamine.  Alto was subsequently arrested on State charges and is currently in custody in Ketchikan.

According to Assistant U.S. Attorney Jack S. Schmidt, who presented the case to the grand jury, the law provides for a mandatory minimum sentence of 10 years to a maximum of up to life in prison, a fine of up to $10,000,000.

The United States Coast Guard Investigative Service and the Alaska State Troopers Drug Unit conducted the investigation leading to the indictment in this case.

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

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman has been charged in a 20-count indictment alleging that she devised a scheme to defraud the state of Alaska Medicaid Program of over $239,000.00.

Mi Ran Yu, 40, of Anchorage was charged with a scheme to defraud by intentionally misrepresenting the health condition of her parents in order for them to receive “personal care assistant” benefits from the state of Alaska Medicaid Program.  Personal care assistant benefits are available to those persons who qualify to receive them, such as the disabled elderly and the blind, and are designed to allow a person to receive assistance so that they can remain in their home rather than be placed in a skilled care setting.  The indictment alleges that Yu herself received approval to provide personal care assistant services for her parents when she knew that they did not qualify for the Medicaid benefits.  The indictment also alleges that through physical surveillance, it was documented that her parents’ health conditions had been greatly exaggerated as they were observed and videotaped riding bicycles, lifting heavy bags of potting soil, and walking significant distances unaided by another person or a device such as a walker or a cane.  In addition, it is alleged that the surveillance documented that Yu had billed Medicaid for personal care assistant services which she had not provided to her parents.

According to Assistant U.S. Attorney Joseph Bottini, who presented the case to the grand jury, the law provides for a maximum sentence of 20 years in prison, and a fine of $250,000.00.  Restitution is also typically sought in such cases.

The State of Alaska Medicaid Fraud Control Unit and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.

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

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Guy Christopher Mannino, 57, of Fairbanks, was sentenced today in Anchorage to 17 years in federal prison for his convictions for soliciting the murders of a witness and two federal law enforcement agents.

Mannino, a former chiropractor who practiced for several years in Fairbanks, was indicted by a federal grand jury in July 2015 for soliciting several murders while he was in custody at the Fairbanks Correctional Center on an earlier federal prosecution.  Mannino had been indicted by another federal grand jury in August 2013 for a number of felony charges related to the unlawful possession and transfer of prohibited weapons, including a machinegun and silencers.  While in custody on that case, Mannino solicited another prisoner to murder the principal witness against him, as well as some of the federal law enforcement agents who had been involved in the investigation of the first case.

Mannino proceeded to trial on the murder solicitation charges in February 2016 in Fairbanks, and, following a four-day jury trial, he was found guilty on three of the five counts charged.  As a result of those convictions, Mannino faced a statutory maximum sentence of 20 years on each of the counts of conviction.

In imposing the 17-year sentence on Mannino, Senior U.S. District Judge Ralph R. Beistline noted that Mannino had engaged in extremely dangerous conduct in soliciting the murders, and that the trial jury concluded that he intended that these murders actually occur, rather than his conduct simply being “jail house talk” between inmates as Mannino had contended.

The Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Alaska State Troopers (AST) conducted the investigation leading to the indictment and convictions in this case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage husband and wife were indicted by a federal grand jury on 14 charges of wire fraud and a scheme to defraud.  In a separate indictment, the husband was charged with narcotics and firearms crimes.  

Arnold Wesley Flowers II, 41, and Miranda May Flowers, 31, were the named defendants in the wire fraud indictment.  Arnold Wesley Flowers II was named as a sole defendant in the narcotics and firearm indictment.

On January 19, 2016, Arnold Wesley Flowers II and Miranda May Flowers reported that their residence had been burglarized.  On January 22, 2016, they contacted State Farm Insurance and filed a claim for $82,000 worth of damages to their residence and stolen electronics, jewelry, and clothing.  During the month of January the Flowers contacted State Farm Insurance by telephone and email regarding the value of the items allegedly taken during the burglary and damage done to their residence.  On March 29, during a search of a storage unit associated with the Flowers, law enforcement found many of the items the Flowers claimed had been stolen during the January 19 burglary.  The investigation revealed that the Flowers had transported the items to the storage unit on January 17, 2016, prior to reporting the burglary at their residence.    

During a search of the Flowers’ residence on March 29, 2016, Arnold Wesley Flowers II was found in possession of cocaine and firearms.  Mr. Flowers has prior convictions for crimes punishable by more than one year imprisonment.

The Federal Bureau of Investigation, Anchorage Police Department, and the State of Alaska Division of Insurance conducted the investigation leading to the indictment in this case.

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

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that two Anchorage residents were charged in a 22-count indictment alleging that the two conspired to obtain checks stolen from vehicle break-ins–including stealing checks from vehicles being serviced at local automotive mechanics, and checks obtained from burglaries, and mail theft.  The charged individuals then negotiated the stolen checks at different banks and grocery stores in Anchorage. 

Victoria Kosetatino, 24, and Jeremy Tamapolu, 31, both of Anchorage, were charged in a 22-count indictment that includes charges of conspiracy, bank fraud, possession of stolen mail, and aggravated identity theft. 

According to Assistant U.S. Attorney Aunnie Steward, who presented the case to the grand jury, Kosetatino and Tamapolu conspired together to use stolen checks at banks and grocery stores in Anchorage from December 2015, through at least April 2016, to obtain over $9,500. 

Kosetatino appeared in court today on the charges.  Tamapolu’s whereabouts are unknown.  Anyone with information regarding the location of Jeremy Tamapolu please contact the U.S. Postal Inspection Service in Anchorage at 907-261-6321.  See the photos at the end of this release. 

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 United States Postal Inspection Service and the Anchorage Police Department conducted the investigation leading to the indictment in this case.

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

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a former Anchorage resident and former municipal prosecutor was sentenced to 160 months in prison for perpetrating a massive wire fraud and money laundering scheme encompassing $52 million.  This is the largest wire fraud and money laundering conviction by amount ever prosecuted in Alaska.  

Mark Avery, 57, who last resided in San Francisco, California, was sentenced today by U.S. District Judge Ralph R. Beistline.  In addition to the prison term, Avery was also ordered to serve five years of supervised release, pay a $100,000 fine, and pay restitution to the May Smith Trust in the amount of $45,925,737.57.  Avery was convicted on Feb. 29, 2016, following a two-week jury trial, of three counts of wire fraud, six counts of money laundering, one count of bank fraud, and one count of making false statements to a bank. 

Avery was indicted by a federal grand jury in Anchorage in 2013.  The indictment alleged that he defrauded the May Wong Smith and the May Smith Trust, of over $52 million dollars.  Avery was, at the time, a trustee of the trust and used his influence to obtain access to $52 million of trust assets, all of which he expended in a period of six months.  The jury’s verdict found that, in 2005 and 2006, Avery siphoned over $31 million of trust assets in a wire fraud scheme that defrauded the May Smith Trust. 

Avery was re-charged after the Ninth Circuit Court of Appeals reversed Avery’s conviction on similar charges for honest services wire fraud in 2013 based on a Supreme Court decision that found the theory of honest services fraud under which Avery was previously convicted unconstitutional.  The revised indictment filed against Avery charged that Avery engaged in a scheme to defraud the trust and May Wong Smith.  Avery served as a trustee and lawyer to the May Smith Trust from early 2002, and received yearly compensation in the amount of $600,000 in trustee fees for his fiduciary role.  Avery was also owner/operator of Avery and Associates, L.L.C., Security Aviation, Inc., and Regional Protective Services, L.L.C.  Avery’s companies, many of which were created after receipt of trust funds, were engaged in air charter services, aeromedical evacuation, legal services, development of real property, and court imposed electronic monitoring. 

During the trial, the jury heard that May Wong Smith was born in China in 1922 and, shortly after World War II, married Stanley Smith, a citizen of Australia.  Stanley Smith amassed millions of dollars from post-war business investments and became a quiet benefactor of various charitable organizations.  Stanley Smith died in 1968 and May Wong Smith never remarried.    

In the early 1980s, May Wong Smith began to show signs of dementia and her mental condition began to deteriorate to the point where she was not capable of living without assisted care.  The May Smith Trust was established on October 10, 1982, to provide for May Wong Smith’s support and maintenance during her life and certain charitable purposes after her death.  Due to her mental condition, she had full time live-in care, who were hand-picked by Avery, from at least 1991 until her death in Nassau, Bahamas, on July 15, 2006.  In spite of her compromised mental capacity, she remained a trustee until her death in July 2006.

The indictment alleged that Avery engaged in a scheme wherein he pledged assets of the May Smith Trust as collateral to secure a $52 million loan for himself.  The jury’s verdicts found that Avery defrauded May Wong Smith and the May Smith Trust by using the $52 million loan funds for his personal use and to invest in various businesses without any indicia of normal business practices.  The money was obtained and spent with no written business plan, no controls over how the money was to be spent, no repayment terms, no promissory note and none of the common safeguards of commercial investments.   At trial the evidence showed that Avery exhausted the $52 million he obtained from the trust in six months using the funds for various purchases including two World War II era fighters, a P-51D Mustang, and an F4U-4 Corsair, other antique aircraft, real estate, a personal mortgage payoff, a 47' Carver Yacht, and a 37' heavy-duty patrol boat.  

Avery was also convicted of bank fraud and making false statements to Wells Fargo Bank in October 2006 in connection with a $500,000 line of credit.  Avery failed to list the $52 million dollar debt when applying for the loan, which, if listed, would have been material in Wells Fargo’s decision in evaluating the loan.

“Today’s sentencing brings to a close a lengthy investigation of one of the largest fraud cases perpetrated in Alaska,” said U.S. Attorney Loeffler.  “Mr. Avery’s conduct involved a massive breach of fiduciary obligations and just convictions for someone who used his access to these huge funds to defy the wishes and bequests of the Smiths and spend their trust funds on personal debts, whims, wishes and pie in the sky ventures unsupported by any business planning.  I commend the dedication of the IRS, FBI and prosecutors in this office who picked up this investigation and brought it forward to today’s result.”

“IRS Criminal Investigation is uniquely trained to follow the money in sophisticated and complex financial crimes such as the one perpetrated by Mark Avery.  We will continue to partner with the FBI and DOJ in defense of those victimized by white collar crime,” stated Special Agent in Charge Teri Alexander.‎

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an indictment has been returned charging a Palmer couple with multiple drug and gun felonies, including one count of maintaining a drug house where a teenager overdosed and died earlier this year. 

Tod James Rodolph, 40, and Jessica Elizabeth Hopkins, 35, are both named in the five-count indictment.  The first count charges the couple with conspiring with each other and others to distribute both heroin and methamphetamine.  They are also charged with using their Palmer home to both use and distribute drugs.  Finally, the couple is charged with possessing several firearms in furtherance of their drug crimes.

The indictment separately charges Rodolph with possessing both heroin and methamphetamine with the intent to distribute it and with being a convicted felon in possession of four firearms.  It is alleged that, over the course of 2015 and early 2016, Rodolph traveled from Alaska to the area of Seattle, Washington, approximately 20 times to purchase large quantities of heroin and methamphetamine.  He then traveled back to Alaska where he sold the drugs for profit.

The indictment stems from an investigation launched by the Drug Enforcement Administration (DEA) and the Alaska State Troopers (AST) into the death of A.F., a teenager who attended a party at Rodolph and Hopkins’ residence, consumed drugs, and later died.  According to the indictment, Rodolph and Hopkins’ drug trafficking activities created an environment in which their teenage daughter and her friends were able to consume illegal drugs at their Palmer residence.  The indictment goes on to allege that, in the early morning hours of January 10, 2016, A.F. consumed drugs at the house and began having a negative reaction.  When Rodolph learned of the teenager’s condition, he failed to call 911 and instead instructed another teenager to drive A.F. to the hospital.  A.F. later died of what the medical examiner determined to be the acute toxic effects of methamphetamine.  

Assistant U.S. Attorney Stephanie C. Courter, who presented the case to the grand jury, indicated that both Rodolph and Hopkins face a mandatory minimum penalty of 5 years up to 40 years in prison for their involvement in a drug conspiracy, plus an additional five years on the gun charge.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendants. 

The charges against Rodolph and Hopkins are the latest in the ongoing efforts of federal and state law enforcement to combat the increasing prevalence of heroin and methamphetamine in our community.  The DEA and the AST, as well as the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) all contributed to the investigation leading to the indictment in this case.

Rodolph and Hopkins will be arraigned in federal court in the coming days.  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 – U.S. Attorney Karen L. Loeffler announced that an Anchorage man pled guilty yesterday in federal court to mail theft and credit card fraud.

Evan Mullen, 28, of Anchorage, pled guilty in front of U.S. District Judge Sharon L. Gleason. 

According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, Mullen pled guilty to the following facts:  Starting in December 2015, Mullen stole mail from mailboxes of residents living in an Anchorage Hillside neighborhood.  Mullen was specifically looking for credit cards, but Mullen also stole packages from these mailboxes.  Mullen took the stolen credit cards and purchased gift cards and merchandise.  Mullen continued this conduct up until the day before his arrest in February 2016.  There were more than 10 victims of Mullen’s crimes including those who had their mail stolen and banks who absorbed the loss from the stolen credit cards.  Mullen used the stolen credit cards to obtain and attempt to obtain approximately $10,000 in cash and merchandise.  Mullen has agreed to pay full restitution.   

Mullen faces a maximum of fifteen years in prison and a $250,000 fine.  Sentencing is scheduled for July 21, 2016. 

“Postal Inspectors worked closely with the U.S. Attorney’s Office, Anchorage Police Department, and proactive citizens to swiftly handle the reported mail theft on Hillside,” said Seattle Division Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service.  “We take mail theft and identity theft very seriously and will continue working aggressively to investigate these crimes.”

U.S. Attorney Loeffler commends the U.S. Postal Inspection Service and the Anchorage Police Department for the investigation of this case.  Neighborhood residents assisted in the investigation, providing tips and information helpful to identifying Mullen as the thief. 

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that the U.S. Attorney’s Office will hold a special event at the Henry House in Anchorage on Wednesday, April 27, as part of National Reentry Week.  As part of the Obama Administration’s commitment to strengthening the criminal justice system, the Department of Justice designated the week of April 24-30, 2016, as National Reentry Week.

Housing is a key challenge that returning citizens face when they are released from prison back to their communities in Alaska.  Henry House provides safe, alcohol and drug free, transitional housing to reentrants and others in downtown Anchorage.  This will be a volunteer project at Henry House to assist with basic maintenance projects to brighten Henry House’s common areas.  The U.S. Attorney’s Office has also invited the United States District Court, the United States Probation Office, and the Federal Public Defenders to participate.

Each year, more than 600,000 citizens nationwide return to our neighborhoods after serving time in federal and state prisons.  Another 11.4 million individuals cycle through local jails.  And nearly one in three Americans of working age have had some sort of encounter with the criminal justice system — mostly for relatively minor, non-violent offenses, and sometimes from decades in the past.  In Alaska, there were 12,590 citizens released from state custody and 182 released from federal custody in 2015.  The long-term impact of a criminal record prevents many people from obtaining housing, employment, higher education, and credit — and these barriers affect returning individuals even if they have turned their lives around and are unlikely to reoffend. 

As part of National Reentry Week, Attorney General Loretta E. Lynch Monday in Philadelphia announced the “Roadmap to Reentry,” the Department’s comprehensive vision to reduce recidivism through reentry reforms at the Federal Bureau of Prisons (BOP).  These efforts will help those who have paid their debt to society prepare for substantive opportunities beyond the prison gates, promote family unity, contribute to the health of our economy, advance public safety and sustain the strength of our communities. 

The principles outlined in the “Roadmap to Reentry” are aligned with the work of the Federal Interagency Reentry Council which has been working since its creation five years ago to reduce recidivism and improve housing, employment, education, health, and child welfare outcomes.

As part of the national effort to increase awareness about these challenges, the Attorney General also sent a letter to governors with a request to permit citizens returning to their communities to exchange their Bureau of Prisons inmate identification card and authenticated release documentation for state identification, or for these documents to satisfy the primary identification document requirement for state-issued identification.  Without government-issued identification, men and women leaving correctional facilities face extreme challenges securing employment and housing, registering for school, opening bank accounts as well as accessing other benefits, such as health care, that are critical to successful reintegration.

“In Alaska, we face similar challenges for our population attempting to return to our communities,” said U.S. Attorney Loeffler.  “Housing, access to health care, and jobs are key components to successful reentry.  In order to aid in successful transitions with the extra goal of increasing public safety and reducing recidivist crime, we need to step up our public, private partnerships and come up with creative solutions to address some of these needs.”

“Too often, justice-involved individuals who have paid their debt to society confront daunting obstacles to good jobs, decent housing, adequate health care, quality education, and even the right to vote,” said Attorney General Lynch.  “National Reentry Week highlights the many ways that the Department of Justice – and the entire Obama Administration – is working to tear down the barriers that stand between returning citizens and a meaningful second chance – leading to brighter futures, stronger communities, and a more just and equal nation for all.”

Leadership from across the Administration will be traveling around the country to make policy announcements in support of National Reentry Week.  They will also be encouraging federal partners and grantees to work closely with stakeholders like federal defenders, legal aid providers and other partners across the country to increase the impact of these efforts.  National Reentry Week events are being planned in all 50 states, the District of Columbia, Puerto Rico and the Virgin Islands.  U.S. Attorney’s Offices alone are hosting over 200 events and BOP facilities are holding over 370 events.

Additional Resources:

National Reentry Week Webpage

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Tok man has been indicted by a federal grand jury in Anchorage for possessing firearms as a convicted felon.  

Floyd Julius Stuck, 48, of Tok, Alaska, was charged in a one count indictment. 

The indictment alleges that Stuck illegally possessed six firearms on February 2, 2016, and notes that a total of 31 firearms were seized from Stuck’s property on February 2, 2016.  Stuck is a four-time felon, whose felony convictions date as far back as 1991 when he was convicted of burglary in the second degree.   

 Assistant U.S. Attorney Andrea W. Hattan, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both, for the charged offense.  Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. 

The United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service, both branches of the Department of Justice, and the Alaska State Troopers conducted the investigation leading to the indictment in this case. 

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

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Juneau man was indicted yesterday for the receipt of child pornography.

Jim Wayne Thornhill, 38, of Juneau, Alaska was indicted on a single count for receipt of child pornography between the dates of November 3, 2014 and December 25, 2014.  Thornhill is currently incarcerated for violating his conditions of state probation related to a prior sexual abuse of a minor conviction.  

Assistant U. S. Attorney Jack S. Schmidt, who is prosecuting the case, indicated that Thornhill faces a mandatory minimum sentence of 15 years and a potential maximum sentence of 40 years in prison, and a $250,000 fine, or both.  Thornhill also faces a minimum of five years up to life on supervised release. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. 

The charges against Thronhill are the result of an investigation conducted by the Federal Bureau of Investigation (FBI).  If the public has any further information, questions, or concerns about the activities of Thornhill please contact the FBI at (907) 265-8254.

This case is being brought as part of Project Safe Childhood.  In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov

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

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage man has been sentenced by Chief U.S. District Judge Timothy M. Burgess to serve 84 months in prison for his role in a conspiracy to launder hundreds of thousands of dollars earned from the sale of large quantities of heroin and cocaine by local drug dealers.   

David Edward Frazier, of Anchorage, previously pled guilty to conspiring with others launder the proceeds of drug trafficking.  As part of his guilty plea, Frazier admitted that he sold nearly three kilograms of heroin and ten kilograms of cocaine and then delivered the cash from those sales back to his supplier in order to continue their drug trafficking operation. 

Following his release from prison, Frazier will be on supervised for three years.  As part of the sentence, Judge Burgess entered a money judgment against Frazier for $743,000 – the total amount of drug money laundered during the conspiracy.

According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, the conspiracy began in March 2013 and continued until June 2013.  During that time, Frazier acquired drugs, mainly heroin and cocaine, from a local drug supplier and then worked with a partner to sell the drugs to others.  Frazier was “fronted” the drugs by his source, meaning that he obtained the drugs essentially “on credit.”  He then sold the drugs and returned the cash proceeds to his supplier in order to continue their drug enterprise.  Over the course of just three months in 2013, Frazier and his partner acquired nearly three kilograms of heroin and more than ten kilograms of cocaine from their supplier.  The wholesale value of the drugs sold exceeded $660,000, with the conspirators earning an additional $80,000 in profit.    

During the sentencing hearing, Judge Burgess called Frazier’s actions extremely serious, noting that Frazier sold nearly $250,000 worth of heroin and cocaine each month for three months.  Judge Burgess also found Frazier’s criminal history to be significant, pointing out that Frazier’s record included at least 15 adult criminal convictions. 

The sentencing hearing is related to a string of indictments returned in late 2014 and early 2015 as part of ongoing efforts to dismantle and prosecute several large scale drug trafficking rings with ties to Alaska, California, Texas, Arizona, and Mexico.  To date, the following individuals have been sentenced as part of these efforts:

• Timothy Alex, an Anchorage drug distributor, previously sentenced to 108 months in prison;
• Daniel Harris, an Anchorage drug distributor, previously sentenced to 135 months in prison;
• Jose Ramon Canales, of Texas, previously sentenced to 70 months in prison for laundering drug money out of the United States and into Mexico;
• Omar Alejandro Alfaro, of Texas, previously sentenced to 84 months in prison for drug trafficking;
• Genaro Gutierrez-Reyes, of California, previously sentenced to 18 months in prison for laundering drug money out of the United States and into Mexico;
• Jorge Armando Zaragoza-Soto, of Mexico, previously sentenced to 96 months in prison for drug trafficking;
• Geronimo Arellano Velarde, of California, previously sentenced to 120 months in prison for drug trafficking;
• Jasmin Sanchez, of California, previously sentenced to 60 months in prison for drug trafficking; and
• Tomas Gutierrez Ayala, of California, previously sentenced to 75 months in prison for drug trafficking.

Several other defendants are set to be sentenced in the coming months for their roles in trafficking heroin, cocaine, and methamphetamine to Alaska and then transporting the cash proceeds of their trafficking activities back to Mexico.

This and the related cases were investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF).  In announcing the sentence, U.S. Attorney Loeffler praised the work of the law enforcement agencies involved, including the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Anchorage Police Department (APD), the Alaska State Troopers (AST), and the Anchorage Airport Police Department.  Additional assistance was provided by the U.S. Attorney’s Offices for the Western District of Texas, the Eastern and Central Districts of California, and the District of Arizona, as well as federal agents in all three states.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today Gilbert Valadez-Garcia, a Mexican citizen working in Juneau, was indicted for the distribution of child pornography.

Gilberto Valadez-Garcia, 39, a citizen of Mexico, was arraigned today before U.S. Chief Magistrate Judge Deborah M. Smith on the sole charge of distribution of child pornography.  Valadez-Garcia pled not guilty to the charge and was ordered detained pending trial.

Assistant U. S. Attorney Jack S. Schmidt, who is prosecuting the case, indicated that Valadez-Garcia faces a mandatory minimum sentence of five years and a potential maximum sentence of 20 years in prison, and a $250,000 fine, or both if convicted.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.  Trial was scheduled for June 20, 2016.

The charges against Valadez-Garcia are the result of an investigation conducted by the Federal Bureau of Investigation (FBI).  If the public has any further information, questions, or concerns about the activities of Valadez-Garcia please contact the FBI at (907) 265-8254.

This case is being brought as part of Project Safe Childhood.  In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov

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

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage man has been sentenced by U.S. District Judge Ralph R. Beistline to serve 126 months in prison for his role in robbing a local business with a stolen assault rifle.   

Miguel J. Batista, 28, previously pled guilty to interference with commerce by robbery and to brandishing and carrying a firearm during a crime of violence.  As part of his guilty plea, Batista admitted that he twice stole assault rifles from the Eagle River Walmart, ultimately stealing nine total rifles.  He then used one of those assault rifles to rob Party Time Liquor Store in Anchorage.

According to Special Assistant U.S. Attorney Erin Bennett, who prosecuted the case, Batista pointed the assault rifle at several people inside the store and made a cashier give him the money from the registers.  After leaving the store, he went around to the back of the building and pointed the gun at another employee.  He made the employee hand over his cell phone and car keys and then drove away in the employee’s car.

During the sentencing hearing, the government noted that Batista had a great impact on this community by unleashing a number of assault rifles, stealing from businesses, and terrifying six individuals by pointing his assault rifle at them.

Judge Beistline stated that Batista had made his own problems the problems of this community. He also noted the terrible impact that Batista had on the life of the cashier by robbing her at gunpoint.  In pronouncing the sentence, Judge Beistline focused on the seriousness of the offenses but also spoke of the need for people like Batista – an admitted drug user – to get treatment for their addiction.

U.S. Attorney Loeffler commended the work of the Bureau of Alcohol, Tobacco, and Firearms (ATF) and the Anchorage Police Department (APD), who investigated the case.  Since 2007, the Municipality of Anchorage has partnered with the U.S. Attorney’s Office to address drug and violent crime issues within the city.  Ms. Bennett is a municipal prosecutor assigned to prosecute drug and violent crime cases in federal court.

Anchorage, Alaska – U.S. Attorney for the District of Alaska, Karen L. Loeffler, and Acting Assistant Attorney General of the Justice Department’s Tax Division, Caroline D. Ciraolo announced today that an Anchorage plastic surgeon was sentenced to 48 months in prison for wire fraud and tax evasion.

Dr. Michael D. Brandner, 67, of Anchorage, Alaska, was convicted by a federal jury in November 2015 of four counts of wire fraud and three counts of tax evasion.  The charges arose from a scheme to conceal over $5 million of assets in secret bank accounts in Panama and Costa Rica from the Internal Revenue Service (IRS) and Dr. Brandner’s wife.  According to the indictment and evidence introduced at trial, shortly after his wife filed for divorce in late 2007, Dr. Brandner collected millions of dollars in marital assets and secretly drove from Tacoma, Washington, to Costa Rica in Central America.  In Costa Rica, he opened two bank accounts into which he deposited over $350,000 in cash and hid a thousand ounces of gold in a safe deposit box.  He then traveled to Panama where he opened an account under the name of a sham corporation and deposited $4.6 million into the account in 2008.

Dr. Brandner concealed both the existence of the bank accounts and the interest income he earned on those accounts from the court in the divorce proceedings and from the IRS.  Dr. Brandner owed the IRS $500,000 in additional taxes for the 2008 through the 2010 tax years.  In 2011, Dr. Brandner repatriated over $4.6 million once the divorce was final only to have the funds seized by U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) special agents.  He then lied to federal agents about his control of the funds.

In addition to the prison term, U.S. District Judge Sharon L. Gleason ordered Dr. Brandner to serve two years of supervised release and pay $25,922.95 toward the costs of prosecution.  The judge will also consider the government’s request for restitution for Dr. Brandner’s ex-wife.

“Tax evasion and financial crimes undermine the system of laws that govern this country and demean the vast majority of citizens that pay their taxes and deal honestly and openly with the rules governing a whole array of judicial procedures,” said U.S. Attorney Loeffler.  “I appreciate the hard work of the investigators and prosecutors who put the case together and presented it to the jury resulting in these verdicts.”

“Tax evasion knows no geographic bounds,” said Acting Assistant Attorney General Ciraolo.  “This case demonstrates that there is no longer any country where it is safe for a defendant like Dr. Brandner to hide money from the government.  The Department of Justice, along with its law enforcement partners, will continue to aggressively pursue individuals who conceal assets and income abroad in an effort to evade our nation’s tax laws.” 

"Unchecked greed causes financial ruin to those left in its wake and creates an uneven playing field for those who would circumvent the law.  Our mission at IRS-CI is to be that check to the fraudulently greedy," stated Special Agent in Charge Teri Alexander of IRS-Criminal Investigation.  "Michael Brandner effectively stole from the US treasury and attempted to hide assets and money from the courts in an attempt to skirt the tax laws.  We are grateful that the Department of Justice partnered with us to bring Brandner to justice and protect the integrity of our nation's tax system."

U.S. Attorney Loeffler and Acting Assistant Attorney General Ciraolo commend the special agents of IRS-Criminal Investigation and HSI, who investigated the case, as well as prosecutors, Assistant U.S. Attorney Bryan Schroder, and Trial Attorney Ignacio Perez de la Cruz of the Tax Division.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that James Slade, of Calgary, Canada, was sentenced to 12 months in prison for violating the federal Clean Water Act.  Slade was convicted of two Clean Water Act crimes for discharging polluted wastewater into the Salmon River as a result of his operation of the Platinum Creek Mine located in western Alaska.  Slade was ordered to serve a one-year term of supervision after he is released from prison.  The Court concluded he did not have the ability to pay a fine.

Evidence at trial showed that the polluted discharges from the mine were hundreds of times over the legal limits set in the National Pollution Discharge Elimination System water quality permit issued for the mine.  The Clean Water Act violations occurred during the 2010 and 2011 mining seasons, and were shown to be repetitive and ongoing.  At the sentencing hearing, the United States presented evidence from a contaminants biologist who took samples of the turbid wastewater being discharged from the mine into the Salmon River in September 2011.  Laboratory analysis conducted on the samples showed that the wastewater from the mine contained toxic levels of metals, including aluminum and copper that can be deadly to fish and aquatic life in the river. 

Prior to imposing the sentence, U.S. District Judge Sharon L. Gleason noted that Slade made a choice to continue the mining production going even after the turbidity levels in the river were off the charts. 

The Salmon River is located in Western Alaska, running past the Platinum Creek Mine and emptying into Kuskokwim Bay.  It passes through the Togiak National Wildlife Refuge before entering the bay, and all five species of Alaska Salmon spawn in the river.  Evidence admitted at trial showed a flow of up to 1200 gallons per minute of wastewater was discharged from the mine’s processing plant into one or more settling ponds that were not lined, and that did not contain the wastewater.  Instead, the wastewater flowed out of the ponds and into the Salmon River, turning it from crystal clear to dirty brown.  More than one million gallons of wastewater was therefore discharged each day the plant operated.

“The public must be able to rely upon companies and their executive to follow the laws that our nation has adopted to protect our rivers and oceans from harmful pollution,” said First Assistant U.S. Attorney Kevin Feldis.  “Mr. Slade and XS Platinum did not follow these laws.  Mr. Slade placed profits above the environment and above the law for his own self-interest.  The mine operators said they were going to do one thing when they submitted their Mine Plan of Operations, and they ended up doing something very different that polluted a Salmon River in Alaska.  Mr. Slade was the Chief Operating Officer and the man in charge at the mine.  His sentence reflects the seriousness of the crime as demonstrated by all the evidence that was gathered thanks to the good work of the EPA, BLM, and all their state and federal partners.”

“Illegal pollution from industrial operations like mining can severely impact the health of Alaska waterways and fish species, like Pacific salmon,” said Ted Owens, Assistant Special Agent in Charge for the U.S. Environmental Protection Agency.  “This sentence of incarceration shows that EPA is serious about holding people who knowingly break our critically important clean water laws to account.”

Slade was the Chief Operating Officer for XS Platinum, the company that owned the mining claims, and he is the third manager or senior executive of that company to be convicted in this case.  Robert Pate, who was employed as the mine manager previously pled guilty to violating the Clean Water Act, along with James Staeheli, the prior processing plant manager, who also pled guilty to a Clean Water Act crime.  All three individuals worked for the now defunct XS Platinum, Inc.   That company was registered in name only in Delaware, and was 100 percent owned by an offshore company.  Two other senior executives from XS Platinum, both Australian citizens, were also indicted but have refused to return to the United States to stand trial on the charges.

First Assistant U.S. Attorney Kevin Feldis prosecuted the case along with Senior Trial Attorney Chris Costantini from the Department of Justice’s Environmental Crimes Section.  The investigation was conducted by the U.S. Department of Interior Bureau of Land Management Office of Law Enforcement and Security and the U.S. Environmental Protection Agency Criminal Investigation Division.

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage man has been sentenced by Chief U.S. District Judge Timothy M. Burgess to serve 50 months in prison for his role in importing large quantities of methamphetamine into Anchorage from California.   

Tori Dean LaFountain, 29, previously pled guilty to attempting to possess 270 grams of methamphetamine.  As part of his guilty plea, LaFountain admitted that he was working with others to traffic methamphetamine.  Specifically, he admitted that his role was to pick up packages of drugs when they arrived in Anchorage from California and then ensure that the packages were given to his associates for distribution. 

According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, LaFountain came to the attention of law enforcement in July 2015 after a box carrying 270 grams of methamphetamine was inadvertently delivered to the wrong address.  After realizing the mistake, LaFountain went to the home hoping to retrieve the drugs.  However, the homeowner had already called law enforcement about the incident.

During the sentencing hearing, the government noted that the methamphetamine LaFountain had attempted to retrieve had a street value of approximately $10,600.  The government also noted that LaFountain had admitted to receiving three previous boxes of methamphetamine prior to being apprehended in July.

During the sentencing hearing, Judge Burgess characterized LaFountain as an important cog in the wheel that is drug distribution and remarked that LaFountain played an essential role in getting drugs to Alaska.  Judge Burgess also stated that drug trafficking like LaFountain’s is “incredibly, inherently dangerous.”  In pronouncing the sentence, Judge Burgess focused on the seriousness of the offense but also spoke about the need for people like LaFountain – an admitted drug user – to get treatment for their addiction.

U.S. Attorney Loeffler commended the work of the Drug Enforcement Administration (DEA), the Anchorage Police Department (APD), and the United States Postal Inspection Service (USPIS), who investigated the case.

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced that on Friday, March 25, a Las Vegas man was sentenced by United States District Court Judge Sharon Gleason to serve 16 years in prison for supplying large quantities of cocaine to Alaska and Michigan over the past five years; he was also fined $40,000, and required to forfeit expensive vehicles and over $700,000 in drug proceeds.    

Clarence Anthony Hatton, a/k/a “C-Money,” 47, of Las Vegas, previously pled guilty to conspiring with others to distribute cocaine, as well as to launder the proceeds of cocaine trafficking.  As part of his guilty plea, Hatton admitted that he conspired to distribute over 50 kilograms of cocaine to both Alaska and Michigan over a three year period, and that he received payment in cash through mail and parcel services.   Hatton, who lived in Las Vegas, would obtain large quantities of cocaine from California, where he was from.  He then paid employees at Las Vegas McCarran International Airport to take the cocaine into the employee entrance at the airport so that it was not subjected to normal security.  The employee would then meet with a traveler to Alaska (or Michigan) in the men’s bathroom in the secure area of the terminal and transfer the cocaine.    Typically, ten kilograms were sent at a time, approximately twice a month. 

According to Deputy Criminal Chief Frank Russo, who handled the sentencing hearing, the testimony at sentencing indicated that over 250 kilograms of cocaine were sent to Alaska in this manner, and over 100 kilograms of cocaine were sent to Michigan using the same scheme.  The evidence submitted to the Court also showed that Hatton had been sending cocaine to Alaska for the past 20 years, and had amassed great wealth in doing so.  Within the government’s sentencing memo, Russo pointed out that Hatton was dealing cocaine at the kilogram level back in 1996, and was identified as a source of supply in at least four other major cases prosecuted in Alaska.   However, evidence was insufficient to charge Hatton until the current case, which proved what witnesses had been saying about Hatton all along:  that he was the organizer of the most prolific cocaine trafficking network ever to be prosecuted in Alaska.           

Russo stated that Hatton ran his drug organization as a business, thousands of miles removed from the human misery that his product was causing in Alaska.   The sentencing memo alleged that Hatton built comfortable houses in Las Vegas, purchased expensive cars, was a high roller in casinos, and provided for his family on the profits that were mailed back to Las Vegas:  “Prior to his incarceration, [Hatton] likely never thought about the fact that each individual twenty dollar bill in a postal box overflowing with them had a story of despair behind it.”

Hatton was required to forfeit the seized proceeds of his drug trafficking activity, over $620,000 in cash and a Mercedes Benz valued at over $80,000.  Hatton forfeited an additional $88,700 in cash just prior to sentencing, and Judge Gleason imposed an additional $40,000 fine.   Judge Gleason found that Hatton was the leader of the drug conspiracy, and cited the need to deter others from believing that they could profit from trafficking drugs in Alaska as one of the reasons for the sentence imposed. 

United States Attorney Karen Loeffler cited the significance of the case from a public safety perspective, not only protecting Alaska’s residents from drug trafficking but also securing the airports:  “This case demonstrated that there is a loophole in airport security when it comes to allowing employees unscreened access.  It is a loophole that must be scrutinized by all airports.”

Hatton is the latest and most significant in a string of sentencing hearings related to this drug trafficking scheme.  To date, the following individuals have been sentenced as part of this case:

• Daren Cole:previously sentenced to 64 months in prison;

• Michael Langdon: previously sentenced to 60 months in prison;

• Antonio Beckwith:previously sentenced to 24 months in prison; and

• Bryan Bledsoe, previously sentenced to 36 months in prison.

This case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF).  In announcing the sentence, U.S. Attorney Loeffler praised the work of the law enforcement agencies involved, including the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), and the U.S. Postal Inspection Service (USPIS).  These agencies were assisted by the FBI Anchorage Safe Streets Task Force, the Anchorage Police Department, the Las Vegas Metropolitan Police Department, the Henderson Police Department, the North Las Vegas Police Department and the Clark County Department of Aviation.

Ketchikan, Alaska-U.S. Attorney Karen L. Loeffler announced today that, on March 24, 2016, a resident of Ketchikan was sentenced in federal court in Ketchikan for distribution of child pornography.

Don Arthur Henderson, 37, of Ketchikan, Alaska, was sentenced by U.S. District Chief Judge Timothy M. Burgess to serve five years in prison, to be followed by a 20 year term of supervised release, for a single count of distribution of sexually explicit images and videos of children.  Many of the images were prepubescent children engaged in sexually explicit conduct.  Henderson was also ordered to pay restitution of $5,000 to the victims of the offense. 

According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, Henderson, who had no criminal record, was identified in February 2015 by the FBI in Juneau as an individual who was distributing known images of child pornography to the internet using a peer to peer (P2P) program.  Henderson had made available and distributed five known images of child pornography on the Internet using his P2P program.  Further investigation revealed that Henderson had the five images of child pornography he made available on the Internet located on his personal computer for a total of 716 images and nine videos containing images of children engaged in sexually explicit conduct, including images depicting prepubescent children and sadistic and masochistic conduct.  

In ordering Henderson’s sentence, Chief Judge Burgess noted the seriousness of the underlying offense of distributing child pornography and that Henderson’s actions “perpetuate the sexual exploitation of children.”  Chief Judge Burgess also noted the need to protect the public, the need to deter the defendant and others, as well as, treating the defendant in the most effective manner as reasons for the sentence imposed in this case.

Ms. Loeffler commends the agents of the Federal Bureau of Investigation who conducted the investigation that led to the prosecution of Henderson.

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

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Joseph Cecil, aka “Kevin Dupree,” 53, of Sacramento, California, was sentenced to 10 years in prison, followed by five years of supervised release.  Cecil pleaded guilty on December 22, 2015, to conspiracy to distribute methamphetamine and heroin and conspiracy to launder money.  His co-conspirator, Stacy Johnson also pleaded guilty to conspiracy to launder money and awaits sentencing on May 31, 2016.

According to court documents, Cecil has a long history of violating the laws related to illegal drug possession, trafficking, and money laundering. 

Between January 2013 and January 2015, Cecil entered into an agreement with Johnson and others to distribute methamphetamine and heroin throughout Alaska.  Cecil orchestrated a system wherein the drugs were sent to Alaska from California.  Cecil himself then took possession of these drugs with the intent to distribute them in Alaska communities.

Furthermore, Cecil conspired with the others to launder the proceeds of the drug sales in an attempt to conceal and disguise the nature, source, ownership, and control of the funds.  Cecil, Johnson, and others laundered money knowing that the money represented the proceeds of drug sales.  Cecil arranged for his co-defendants to use a series of bank accounts to move money made from the sale of heroin and methamphetamine.  Proceeds were deposited in Alaska and withdrawn in California.  In other instances, Cecil instructed members of the group to send drug sale proceeds via Western Union and Money Gram wire transfers.  Thousands of dollars were transferred from Alaska to California using these methods of money transfer.  This money laundering activity also further supported the distribution of heroin and methamphetamine in Alaska.

The case was prosecuted by Assistant U.S. Attorney Stephan Collins, Lead Organized Crime and Drug Enforcement Task Force Attorney for the District of Alaska.  The case was investigated by the Organized Crime Drug Enforcement Task Force which includes the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service Criminal Investigation (IRS-CI), and Homeland Security Investigations (HSI).

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced Thursday for attempting to sexually exploit children in Cambodia over the course of four years and attempting to arrange a child sex tourism trip for himself and others to Cambodia.

During yesterday’s all day sentencing hearing, Jason Jayavarman, 46, was fined $50,000, sentenced to 18 years in prison and ordered to submit to supervised release for life by U.S. District Judge Sharon L. Gleason.  Jayavarman was convicted in March 2015 of attempted sexual exploitation of a child for the purpose of producing child pornography, and of attempted travel with the intent to aid and abet others to engage in illicit sexual conduct in a foreign place.

The evidence presented at trial established that over the course of 12 trips to Cambodia between 2010 and his arrest in 2013, Jayavarman produced multiple videos of himself engaging in sexual acts with an individual who he believed to be a child.  Jayavarman then transported the recordings back to the United States. 

According to trial evidence, Jayavarman also planned a trip for himself and others to Cambodia for the purpose of engaging in sexual activity with children as young as 12 years old.  Trial evidence demonstrated that Jayavarman explained to one of the other potential travelers – who was an undercover FBI agent – how to groom a child for sex, avoid law enforcement detection and record high quality “mementos” of the sexual abuse. 

Jayavarman’s child exploitation activities came to light following a concerned citizen’s anonymous tip to Crime Stoppers.

The FBI and the Anchorage Police Department investigated the case.  Assistant U.S. Attorney Audrey J. Renschen and Trial Attorney Ravi Sinha of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.

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

An Anchorage, Alaska, man was sentenced for attempting to sexually exploit children in Cambodia over the course of four years and attempting to arrange a child sex tourism trip for himself and others to Cambodia, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Karen L. Loeffler of the District of Alaska. 

Jason Jayavarman, 45, was sentenced yesterday to serve 216 months in prison and a lifetime term of supervised release by U.S. District Judge Sharon L. Gleason of the District of Alaska for his March 2015 conviction of attempted sexual exploitation of children and attempted travel with the intent to engage in illicit sexual conduct in a foreign place.

The evidence presented at trial established that over the course of 12 trips to Cambodia between 2010 and his arrest in 2013, Jayavarman produced multiple videos of himself engaging in sexual acts with an individual who he believed to be a child.  Jayavarman then transported the recordings back to the United States. 

According to trial evidence, Jayavarman also planned a trip for himself and others to Cambodia for the purpose of engaging in sexual activity with children as young as 12 years old.  Trial evidence demonstrated that Jayavarman explained to one of the other potential travelers – who was an undercover FBI agent – how to groom a child for sex, avoid law enforcement detection and record high quality “mementos” of the sexual abuse. 

Jayavarman’s child exploitation activities came to light following a concerned citizen’s anonymous tip to Crime Stoppers.

The FBI and the Anchorage Police Department investigated the case.  Trial Attorney Ravi Sinha of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Audrey J. Renschen of the District of Alaska prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a federal grand jury returned an indictment against two Soldotna men, charging them with trafficking in synthetic cannabinoids, informally known as “spice.”  The two men are also charged with firearms offenses, in connection with Spice trafficking.

Philip Drake Kneeland, 33, of Soldotna, Alaska, allegedly doing business as Tobacco Distress, Inc., and William Donald Vincent Dooley, 27, of Soldotna, Alaska, are named in the indictment.

According to the indictment, in 2015, law enforcement authorities searched the premises of Tobacco Distress, located at Mile 91.5 of the Sterling Highway, Soldotna, and Kneeland’s Soldotna residence, seizing spice containing illegal “cannabimimetic agents,” including synthetic cannabinoids such as JWH-018, JWH-073, JWH-250 and others packaged as “Judgment Day,” “Armageddon,” “Big Bang,” “California Dreams” and other spice “brands” with flavor labels such as “Mango,” “Grape,” and “Cotton Candy.”

Spice consists of plant material laced with psychotropic drugs.  Usually marketed in flashy foil packaging, spice is falsely sold as “herbal incense,” “potpourri,” and mislabeled as “not intended for human consumption.”  The indictment alleges that using spice has caused escalating and frequent emergency room visits nationwide, for agitation, anxiety, nausea, vomiting, tachycardia, hypertension, seizures, and hallucinations.

Kneeland is named in five counts, and if convicted could face up to 20 years in prison on the three spice charges, and an additional mandatory minimum 30 years on firearms charges, consecutive to any sentence imposed for the drug charges.  Dooley is named in three counts, and if convicted could face up to 20 years on the spice charges, and an additional mandatory five years in prison on a firearms charge. The indictment also seeks the forfeiture of real property, more than $75,000.00 in currency, several firearms and a 2014 GMC Sierra pickup truck.

U.S. Attorney Loeffler commends the Kenai Police Department, the Alaska State Troopers, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation preceding the indictment.

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 – U.S. Attorney Karen L. Loeffler announced today that, on March 16, 2016, two Kodiak brothers were indicted separately by a federal grand jury, for federal firearm and drug trafficking crimes.  

Mark Benton, 49, of Kodiak, Alaska, was named as the sole defendant in an indictment charging him for being a felon in possession of ammunition, for an incident that occurred in Kodiak on January 8, 2016.

David Benton, 55, also from Kodiak, was named as the sole defendant in a separate indictment charging him with being in possession of a controlled substance with the intent to distribute, for an incident that occurred in Kodiak on January 26, 2016.

These charges stem from incidents previously charged by the State of Alaska.  Mark Benton is currently charged by the State of Alaska in case 3KO-16-00009 CR with kidnapping, assault, and misconduct involving weapons.  David Benton is currently charged by the State of Alaska in case 3KO-16-00033 CR with misconduct involving controlled substances.

The Alaska State Troopers and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the indictment in this case.

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

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Fairbanks man has been indicted by a federal grand jury in Anchorage for possessing firearms as a convicted felon.  

J Cobb Whitmore, 37, of Fairbanks, Alaska, was charged in a one count indictment. 

The indictment alleges that Whitmore B a two-time felon B illegally possessed two firearms on November 19, 2015.  Whitmore was convicted of felony assault in 2000 and, again, in 2015 by the State of Alaska’s Fourth Judicial District, Superior Court, based in Fairbanks.

Assistant U.S. Attorney Andrea Hattan, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both, for the charged offense.  Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. 

The United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service, both branches of the Department of Justice, and the Alaska State Troopers conducted the investigation leading to the indictment in this case. 

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

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a jury has found a Mississippi man guilty of two drug trafficking crimes based on his efforts to distribute methamphetamine and crack cocaine in late 2013.

Charlie B. Lewis, III, a/k/a “Little Chuck,” a/k/a “LC,” 28, originally of Grenada, Mississippi, was convicted by the jury of being a member of a drug trafficking conspiracy whose aim was to distribute methamphetamine and crack cocaine in Anchorage.  The jury also convicted Lewis of actually selling methamphetamine on September 25, 2013.  The jury acquitted Lewis on a related firearms count.

According to Assistant U.S. Attorneys Stephanie C. Courter and Timothy D. Edmonds, who prosecuted the case, the evidence at trial showed that Lewis relocated to Anchorage several years ago and began dealing illegal drugs shortly thereafter.  Specifically, between September and December 2013, Lewis worked with several different people in order to sell methamphetamine and crack cocaine.

On September 25, 2013, Lewis and his co-defendant, Michael Ewing, sold methamphetamine to a confidential informant working for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).  Audio recordings played at trial captured Lewis arranging the deal, quoting the prices for the methamphetamine, and, ultimately, taking $800 in cash from the informant.

Lewis later sold crack cocaine as part of a separate undercover operation conducted by the Anchorage Police Department (APD).  Text messages shown at trial documented Lewis arranging the deal.  During the execution of a search warrant at Lewis’ residence following the deal, APD officers also recovered all of the indicia of drug trafficking activity – cocaine, crack cocaine, scales, baggies, cash, multiple cell phones, and a loaded 9mm handgun.   Officers found the money used to purchase the crack cocaine in Lewis’s pants pocket.

U.S. District Judge Ralph R. Beistline presided over the trial.  Judge Beistline scheduled Lewis’s sentencing for 9:00 a.m. on June 27, 2016.  Lewis faces a mandatory minimum sentence of five years on the counts of conviction and a statutory maximum sentence of up to 40 years.  Lewis’s co-defendant, Michael Ewing, previously pled guilty in the case and is set to be sentenced on April 6, 2016.

In announcing the sentence, U.S. Attorney Loeffler praised the work of the ATF, APD, and Homeland Security Investigations, whose investigative efforts led to Lewis’s conviction.

Juneau, Alaska – U.S. Attorney Karen L. Loeffler announced today that an investigation conducted by the United States Fish and Wildlife Service (USFWS) has resulted in the filing of charges against four Southeast Alaska business owners and an employee for violations of the Indian Arts and Crafts Act (IACA).

The United States filed charges against Juneau resident and business operator Vinod “Vinny” L. Sippy, 38, d.b.a. Diamond Island, Icy Strait, and Gemstone Heaven; Juneau resident and business operator Norma M. Carandang, 60, d.b.a. Northstar Gift Shop; Puerto Rican resident and Ketchikan business owner Gabriel T. Karim, 33, d.b.a. Alaskan Heritage; Skagway resident and business owner Rosemary V. Libert, 56, d.b.a. Lynch and Kennedy Dry Goods, Inc.; and Libert’s seasonal employee, a resident of Huntington Beach, California, Judy M. Gengler, 65, for the illegal misrepresentation of bone art carvings as made by Alaska Natives or Indians, when in fact they were made by local non-native carvers. 

The charges were filed as a result of an investigation conducted by USFWS based on complaints by summer tourists who were told that bone carvings that they purchased from Alaska shops in Southeast Alaska were authentic bone carvings made by Alaska Natives or Indians, when they were not.  As a result of these complaints, the USFWS started an investigation looking into local Southeast businesses misrepresenting non-native bone carvings as made by Alaska Natives or Indians in May 2014.  

The maximum penalty for violating the IACA as charged is one year in prison and $100,000 fine.  Arraignment dates have not been set.

Ms. Loeffler commends the USFWS for their investigation of these cases with the assistance of Indian Arts and Crafts Board in Washington D.C. and the Alaska Attorney General’s Office – Consumer Protection Unit.

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

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a former Anchorage resident and former municipal prosecutor Mark J. Avery was convicted of three counts of wire fraud, six counts of money laundering, one count of bank fraud, and one count of making false statements to a bank after a two week trial before U.S. District Judge Ralph R. Beistline.

Avery, 57, of San Francisco, California, was indicted by a federal grand jury in Anchorage in 2013 alleging he defrauded May Wong Smith and the May Smith Trust, of over $52 million dollars.  Avery was, at the time, a trustee of the trust and used his influence to obtain access to $52 million of trust assets, all of which he expended in a period of six months.  The jury’s verdict found that, in 2005 and 2006, Avery committed over $31 million in wire fraud related to the scheme to defraud the May Smith Trust.  The verdicts involve the largest money laundering convictions by amount ever prosecuted in Alaska.

The jury did not reach verdicts on one count of wire fraud and three counts of money laundering. The jury acquitted Avery of one count of wire fraud.

Avery was re-charged after the Ninth Circuit Court of Appeals reversed Avery’s conviction on similar charges for honest services wire fraud in 2013 based on a Supreme Court decision that found the theory of honest services fraud under which Avery was previously convicted unconstitutional.  The revised indictment filed against Avery, a trustee and lawyer to the May Smith Trust, charged that Avery engaged in a scheme to defraud the trust and May Wong Smith.  Avery held those positions from early 2002, and received yearly compensation in the amount of $600,000 in trustee fees for his role as trustee and fiduciary to these trusts.  Avery was also owner/operator of Avery and Associates, L.L.C., Security Aviation, Inc., and Regional Protective Services, L.L.C.  Avery’s companies, many of which were created after receipt of trust funds, were engaged in air charter services, aeromedical evacuation, legal services, development of real property, and court imposed electronic monitoring. 

During the trial, the jury heard that May Wong Smith was born in China in 1922 and shortly after World War II married Stanley Smith, a citizen of Australia.  Stanley Smith amassed millions of dollars from post-war business investments and became a quiet benefactor of various charitable organizations.  Stanley Smith died in 1968 and May Wong Smith never remarried.

The May Smith Trust was established on October 10, 1982, to provide for May Wong Smith’s support and maintenance during her life and certain charitable purposes after her death.

In the early 1980s, May Wong Smith began to show signs of dementia.  From that time, her mental condition began to deteriorate to the point where she was not capable of living without assisted care.  Due to her mental condition she had full time live-in care from at least 1991 until her death in Nassau, Bahamas, on July 15, 2006.  In spite of her compromised mental capacity, she remained a trustee until her death in July 2006.

The indictment alleged that Avery engaged in a scheme that involved pledged assets of the May Smith Trust as collateral for a $52 million dollar loan made to Avery.  The jury’s verdicts found that Avery defrauded May Wong Smith and the May Smith Trust by using the $52 million loan funds for his personal use and to invest in various businesses without any indicia of normal business practices in that the money was obtained and spent with no written business plan, no controls over how the money was to be spent, no repayment terms, no promissory note and none of the common safeguards of commercial investments.   At trial the evidence showed that Avery ran through all $52 million he obtained from the trust in six months using the funds for various purchases including two World War II era fighters, a P-51D Mustang, and an F4U-4 Corsair, other antique aircraft, real estate, a personal mortgage payoff, a 47' Carver Yacht, and a 37' heavy-duty patrol boat.

Avery also was convicted of bank fraud and making false statements to a bank in connection with a $500,000 line of credit made to Wells Fargo in October 2006.  Avery failed to list the $52 million dollar debt when applying for the loan, which, if listed, would have been material in Wells Fargo’s decision in evaluating the loan.

Sentencing is set for May 17, 2016.  Avery remains released on bail pending sentencing.

The IRS-Criminal Investigation and the FBI conducted the investigation leading to the indictment and conviction in this case.  U.S. Attorney Loeffler commended the FBI and IRS for their dedication and exemplary efforts in the prosecution and conviction of Avery.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler today presented a check for $1,110,559 to Anchorage Mayor Ethan Berkowitz in a ceremony held at the United States Attorney’s Office.  The check represents proceeds of the forfeiture of funds obtained through seizure warrants executed in the investigation of six individuals for various crimes arising out of a scheme to defraud the Municipality of Anchorage (MOA) of cigarette taxes owed for sales within the MOA.  Pursuant to plea agreements with two of the defendants the monies were forfeited to the United States Treasury.  Then through a restoration request, the Attorney General restored the approximately 1.1 million dollars to the Municipality as payment of restitution ordered at sentencing. 

Previously, on March 18, 2015, U.S. District Judge Sharon L. Gleason ordered Michael Butler, 44, along with Sun Sims, 52, Kyong Hee Kim, 57, Jae Ho Lee, 60, Jae Gak Lee, 62, and Jerry Lee, 60, to pay a total of $2,007, 250, plus interest, in restitution to the Municipality of Anchorage following their convictions on charges that they were participants in a conspiracy to defraud the MOA by evading the payment of cigarette excise tax.  The conspirators were indicted on July 18, 2013, on charges including mail fraud, conspiracy to commit money laundering, and conspiracy to make false statements regarding the distribution of cigarettes.  Kyong Hee Kim, Sun Sims, Kimberly Sims, Jae Ho Lee, Jae Gak Lee, and Jerry Lee previously pleaded guilty in U.S. District Court for their roles in the conspiracy and other criminal violations.  Michael Butler was convicted at trial in November 2014.

According to the court documents, Michael Butler and Sun Sims operated and managed Up in Smoke, located in the MOA, and Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, both located outside the MOA.  Because they owned Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, Butler and Sims could legitimately purchase MOA excise tax exempt cigarettes from tobacco wholesale distributors located in the MOA, but only if those cigarettes were actually transported outside of the MOA and offered for sale at those two stores.  However, cigarettes that they purchased within the MOA and intended to sell at Up in Smoke or distribute to others within the MOA were not excise tax exempt.

Between 2009 and October 10, 2012, Michael Butler and Sun Sims used their Golden Eagle Tobacco and Longmere Lake Grocery and Liquor store accounts with tobacco wholesale distributors within the MOA to purchase excise tax exempt cigarettes that they intended to sell and distribute within the MOA.  Thus, they avoided paying the MOA excise tax and increased their own profits.

The other co-conspirators paid a fee to Michael Butler and Sun Sims for the purchase of excise tax exempt cigarettes.  They paid this fee for the tax exempt cigarette in an effort to avoid paying the tax owed to the MOA.  Butler and Sims would collect payment from Kyong Hee Kim and other retailers.  They would then convert the money collected into cashier’s checks that appeared to be purchased by either Golden Eagle Tobacco or Longmere Lake Grocery and Liquor.  They then used these cashier’s checks to purchase more tax exempt cigarettes, which they then delivered to the following retail stores within the MOA:

• Up in Smoke, owned and operated by Michael Butler and Sun Sims and managed by Kimberly Sims

• Mini Stop, owned and operated by Kyong Hee Kim

• Party Time Liquor, owned and operated by Jae Gak Lee

• Cheap Smokes,  owned and operated by Jae Ho Lee

• Lucky Seven Foodmart, owned and operated by Jerry Lee

The defendants received the following sentences:

• Michael Butler sentenced on 3/13/15 to 36 months incarceration, 3 years supervised release.

• Sun Sims sentenced on 2/4/15 to 34 months incarceration, 3 years supervised release, $18,000 fine. 

• Jae Gak Lee sentenced on 2/2/15 to 16 months incarceration, 3 years supervised release, $100,000 fine.

• Jae Ho Lee, sentenced on 1/21/15 to 16 months incarceration, 3 years supervised release. 

• Kimberly Crandell, sentenced on 1/21/15 to 3 years’ probation, $1,500 fine. 

• Jerry Lee, sentenced on 1/20/15 to 9 months incarceration, 3 years supervised release.

• Kyong Hee Kim sentenced 12/4/14 to 5 years’ probation.

Assistant U.S. Attorney Stephan A. Collins of the U.S. Attorney’s Office, District of Alaska, prosecuted the case.  The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), Alcohol Tobacco and Firearms (ATF), and the Anchorage Police Department.

Juneau, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Juneau man was indicted for the distribution of child pornography.

Steven Raymond Foster, 45, of Juneau, Alaska, was arraigned today before U.S. Magistrate Judge Leslie C. Longenbaugh on the sole charge of distribution of child pornography.  Foster pled not guilty to the charge and was ordered detained pending trial.

Assistant U.S. Attorney Jack S. Schmidt, who is prosecuting the case, indicated that Foster faces a mandatory minimum sentence of five years and a potential maximum sentence of 20 years in prison, and a $250,000 fine, or both.  Foster also faces up to life on supervised release.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.  Judge Longenbaugh set a trial date for May 3, 2016.

The charges against Foster are the result of an investigation conducted by the Federal Bureau of Investigation (FBI).  If the public has any further information, questions, or concerns about the activities of Foster please contact the FBI at (907) 265-8254.

This case is being brought as part of Project Safe Childhood.  In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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

Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that a Wasilla woman was indicted by a federal grand jury in Anchorage for presenting false claims for federal grant funds to the United States Department of Agriculture.

Crystal Jean Boze, aka “Crystal Jean Hazlitt,” 33, of Wasilla, Alaska, is the sole defendant named in the one-count indictment. 

According to the indictment, Boze illegally presented three false claims for federal grant funds to two agencies of the United States Department of Agriculture (USDA).  Boze’s company, Green Winter Farms LLC (a farming company located in Palmer, Alaska), was awarded a $72,103 grant by the USDA Natural Resources Conservation Service in 2012, and a $49,689 grant by USDA Rural Development in 2013.  Among other things, the grants required Boze’s company to seek payment of USDA grant funds on a reimbursement basis only and to certify that each claim for reimbursement was accurate. 

The indictment charges that three times between Feb. 1, 2013, and June 9, 2013, Boze, acting on behalf of her company, knowingly made and presented false and fraudulent claims to USDA seeking payment of USDA grant funds.  Boze also knowingly presented false and fraudulent purchase invoices supporting documentation for each claim.   

Assistant U.S. Attorney Andrea Hattan, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both, for the charged offense.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. 

The Federal Bureau of Investigation (FBI) and the United States Department of Agriculture Office of the Inspector General (USDA OIG) conducted the investigation leading to the indictment in this case. 

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

Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that a Wasilla man was indicted by a federal grand jury in Anchorage for possession of stolen firearms, being a felon in possession of a firearm, possession of stolen mail, possession and use of access devices obtained from the stolen mail, fraud, and Aggravated Identity Theft.   

Timothy Wayne Taylor, a door to door meat salesman, age 36, of Wasilla, Alaska, was charged in a six-count indictment.

The indictment alleges that between Feb. 24, 2015, through March 11, 2015, Taylor was in possession of 24 stolen firearms and also charges Taylor with being a felon in possession of firearms.  From May 2014 until March 11, 2015, Taylor was in possession of approximately 1600 pieces of stolen mail addressed to approximately 800 individuals and businesses from the Wasilla, Palmer, Houston, and Chugiak, Alaska, areas.  Debit cards, credit cards, credit card checks, PIN numbers and other access devices were found in Taylor’s possession.  The indictment also alleges that Taylor fraudulently negotiated stolen credit card checks and stolen bank checks from the stolen mail at a local business, obtaining more than $6000.  As a result of those transactions, Taylor was also charged with Aggravated Identity Theft.  

Mr. Feldis commended the United States Postal Inspection Service, the Alaska State Troopers, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, for the investigation of this case.

"Postal Inspectors worked closely with the U.S. Attorney's Office and the Alaska State Troopers," said Seattle Division Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service. "We take mail theft and subsequent use of stolen mail to commit identity theft very seriously and will continue to vigorously protect the U.S. Mail."

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 Kevin R. Feldis announced today that two Anchorage men were indicted by a federal grand jury in Anchorage for assaulting a Deputy United States Marshal with a deadly and dangerous weapon while he was engaged in his official duties.

The two defendants named in the indictment are Leigaga Selau Amituanai, aka “G,” 26, and Sulu Faamolemole, aka “Chase,” 26, both of Anchorage.  According to the indictment, Amituanai and Faamolemole assaulted a United States Marshal on Feb. 11, 2016. 

According to the criminal complaint filed in federal court late last week, the Deputy United States Marshal was conducting surveillance the morning of Feb. 11, 2016, near Mountain View Drive and North Park Street in Anchorage, when Amituanai pointed a sawed-off shotgun directly at the Deputy United States Marshal from a vehicle that Faamolemole was driving.  When Anchorage Police Department officers and the Deputy United States Marshal tried to pull over Amituanai and Faamolemole 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 being apprehended.  A sawed-off shot gun, a loaded pistol, and ammunition were recovered from the vehicle.

Assistant U.S. Attorney Andrea Hattan, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both, for the charged offense.  Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants. 

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

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

Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that an indictment has been returned charging a Palmer man with multiple drug felonies, including one count of distributing heroin that led to the death of a young man who used the heroin. 

Hiram Luis Ducasse, Jr., 26, is the only defendant named in the three-count indictment.  The first count charges Ducasse with conspiring with others to distribute heroin.  The second and third counts both charge Ducasse with actually distributing heroin or otherwise possessing heroin with the intent to distribute it.  The second count specifically charges Ducasse with distributing the heroin that resulted in the death of another individual, listed in the indictment as M.C.

The indictment stems from an investigation launched by the Drug Enforcement Administration (DEA) and the Alaska State Troopers (AST) after M.C.’s death in December 2015.  It is related to two other indictments also issued by the federal grand jury today charging five other individuals from Wasilla, Palmer, and California with drug trafficking and related gun crimes. 

Assistant U.S. Attorney Stephanie C. Courter, who presented the case to the grand jury, indicated that Ducasse faces a mandatory minimum penalty of 20 years in prison for the heroin distribution that led to M.C.’s death.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant. 

The charges against Ducasse and the related indictments are the latest in the ongoing efforts of federal and state law enforcement to combat the increasing prevalence of heroin in our community.  According to a February 2015 publication issued by the National Institute on Drug Abuse (NIDA), overdose deaths from heroin abuse have more than doubled since 2010.  The Centers for Disease Control (CDC) found that, in 2013 alone, drug overdose was the leading cause of injury death.  That year, overdoses caused more deaths than motor vehicle traffic accidents and firearms.  Similarly, according to the DEA, of the approximately 47,055 unintentional drug overdose deaths that occurred in the United States in 2014, 61 percent of those (28,647) were caused by prescription painkillers and heroin.

“Sadly, heroin use and distribution is on the rise throughout the country and in Alaska with often tragic consequences; this is one such tragic case,” said Acting U.S. Attorney Feldis.  “As a community we must all play a role in combatting the use and distribution of illegal drugs and the addiction, crime and destruction that can too often result.”

“Nationwide, a drug overdose occurs every 12 minutes in which a life is taken by anonymous predators, however today, this heroin dealer is named and will face full accountability,”  said DEA Special Agent in Charge Keith Weis.

“Drug and alcohol addiction continues to destroy Alaskans’ lives and we are committed to being part of the solution,” said AST Captain Jeff Laughlin.  “By working together with local, state and federal partners, those who are trafficking illicit drugs and contributing to the destruction of our neighbors’ lives will be relentlessly pursued and held accountable.  Addiction is a disease, and those who contribute to this illness are put on notice that they will be held responsible, as evidenced by this indictment.”

Ducasse will be arraigned in federal court in the coming days.  The DEA and AST conducted the investigation leading to the indictment in this case. 

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

Anchorage, Alaska –U.S. Attorney Karen L. Loeffler announced that, on Feb. 12, 2016,  a Las Vegas man was sentenced by U.S. District Judge Sharon L. Gleason to 13 years in prison for his participation in a drug trafficking conspiracy involving methamphetamine and a related money laundering conspiracy.

Billy “Red Dollaz” Cooks, 38, of Las Vegas, Nevada, previously pled guilty to conspiring with his co-defendant and girlfriend, E’lala Frank, also of Las Vegas, and others to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine.  Cooks also pled guilty to conspiring with Frank to launder the illicit proceeds from his drug trafficking activity.

According to Assistant U.S. Attorney Timothy D. Edmonds, who handled the sentencing hearing, United States Postal Inspectors in Anchorage intercepted a suspicious package sent from Las Vegas to an address in Anchorage on Jan. 22, 2014.  Once a drug detecting canine positively indicated for the presence of controlled substances inside the package, Inspectors obtained a search warrant for the parcel. Inside, Inspectors found what was ultimately determined to be 443.5 grams of methamphetamine.  At that time, Inspectors removed the methamphetamine from the package, replaced it with an imitation substance, and prepared to deliver the package to the recipient address.

The next day, on Jan. 23, 2014, in a joint operation between the Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), and United States Postal Inspection Service (USPIS), investigators conducted surveillance at the parcel’s recipient address, as an undercover Inspector delivered the package to the residence. The package was accepted at the door by a man identified as Dawud Johnson of Anchorage.  Shortly after receiving the package, Johnson departed the residence in a vehicle and was followed by investigators.  Minutes later, investigators observed Johnson throw the package out of the window of his vehicle.  Johnson was arrested shortly thereafter at a nearby shopping center.

A subsequent review of Johnson’s telephone records revealed communication between Johnson and “Red Dollaz” in the days leading up to the shipment of the package of methamphetamine from Las Vegas to Johnson in Anchorage.  Further investigation confirmed that “Red Dollaz” was Billy Cooks.  Review of Johnson’s phone records also uncovered communication between Johnson and Cooks regarding a bank transaction involving a Wells Fargo bank account in Frank’s name.  Investigator’s review of these records, as well as banking information for Frank’s account, indicated that Johnson deposited cash into the account that was subsequently withdrawn at an ATM in Henderson, Nevada, near Las Vegas.  Continued investigation into banking records, bank security footage, and security footage from the United States Postal Service confirmed that Frank had mailed the package of methamphetamine on Cooks’ behalf and that Cooks, Johnson, and Frank had moved various amounts of money through Frank’s bank account.

Johnson previously received a sentence of 15 years in prison for his participation in this scheme.

In sentencing Cooks, Judge Gleason commented that she felt Cooks’ drug trafficking activity was primarily motivated not by the defendant’s own addiction, as the defendant suggested, but by greed. Judge Gleason also reflected for some time about the extremely damaging effects of methamphetamine on the Anchorage community, characterizing the defendant’s drug trafficking offense as a particularly troubling one.  Judge Gleason also held Cooks responsible for getting Frank involved in facilitating the laundering of his drug trafficking proceeds.  

“Trafficking in methamphetamine is not a victimless crime,” said First Assistant U.S. Attorney Kevin R. Feldis. “Meth can be highly addictive and highly damaging to the human brain.  Nobody should be allowed to profit by doing harm to others and to the community, and their sentence reflects that fact.”

In announcing the sentence, U.S. Attorney Loeffler commended the work of the DEA, IRS, and USPIS, who jointly investigated the case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a cable TV hunting show host was sentenced in Anchorage United States District Court to 16 months imprisonment for his role as a leader and guide in a multi-year poaching operation on the Noatak National Preserve.

On Feb. 11, 2016, Syndicate TV hunting show host Clark Dixon, 41, of Hazlehurst, Mississippi, was sentenced to 16 months in federal prison by U.S. District Judge Ralph R. Beistline, for two felony violations of the Lacey Act.  As part of his plea agreement with the United States, Clark Dixon admitted to large scale violations of federal and state hunting laws including hunting and taking game same day airborne, hunting big game as a nonresident without a guide, hunting without the proper non-resident tags and permits, and the illegal transporting and outfitting of non-resident hunters in the illegal pursuit and take of game on the Noatak Preserve from 2008 through 2013.

As part of the plea agreement and sentence, Judge Beistline ordered that Clark Dixon pay a fine of $75,000, and forfeit 17 animals killed and turned into trophies while falsely claiming to be a resident of the state of Alaska.  These included a grizzly bear, Dall sheep, moose and caribou, along with bows and several rifles used in the illegal take of game. 

As part of his plea of guilty, Clark Dixon agreed that in 2010 he assisted Clarence Michael Osborne in the illegal take of a grizzly bear, by hunting same day airborne, without a guide or proper permits.  The agreement also states that Clark Dixon falsified a hunt record claiming the bear was killed by his father, Charles Dixon.  The plea agreement also covers the allegation that at the time the violations were committed, Clark Dixon illegally claimed Alaska residency status while being a resident of the state of Mississippi.  The charges against Clark Dixon reflect that he lied about his residency status in order to take advantage of Alaska resident hunting privileges, thus nullifying all of his Alaska hunts which resulted in the forfeiture of the 17 trophies and firearms.  Clark Dixon also agreed to the forfeiture of a STOL Quest SQ-4 aircraft used by his father, Charles Dixon, which was instrumental in assisting Clark Dixon in transporting and outfitting non-resident hunters in the illegal take of game.  That aircraft has since been forfeited to the United States.

In November 2015, Charles Dixon, 70, also pleaded guilty to two violations of the Lacey Act for illegally flying a non-resident hunter, Clarence Michael Osborne, into their camp on the Noatak National Preserve to hunt grizzly bear, caribou and moose.  During the hunt, Osborne killed a grizzly bear without a guide and without the appropriate non-resident permits.  After the hunt, Charles Dixon claimed to have killed Osborne’s bear as his own on state hunt records.  As part of his plea and sentence imposed by the court, Charles Dixon was sentenced to pay a fine of $15,000 and to pay $10,000 in restitution to the Noatak Preserve with those funds directed toward the removal of their illegal camp materials from the Preserve.  In addition, Charles Dixon forfeited his STOL Quest SQ-4 aircraft, valued at $200,000, as the aircraft served as the primary means of unlawfully transporting hunters, and illegally taken game, in and out of the Preserve.

In other related cases, and on Nov. 13, 2015, Clarence Michael Osborne, 53, of Madison, Mississippi, pleaded guilty to a violation of the Lacey Act for killing a grizzly bear in the Preserve while hunting with Clark Dixon.  Osborne killed the grizzly bear without a guide as required by Alaska law, and without the proper permits, or tags, and the same day he was airborne.  Osborne also pleaded guilty to killing a bull moose without a permit from the Preserve.  As part of his plea and sentence, Osborne was sentenced to five years of probation, with a condition that he not hunt anywhere in the world.  Osborne was sentenced by Judge Beistline under a plea agreement and was sentenced to pay a fine of $65,000, and to pay restitution to the Noatak Preserve for the illegally taken game in the amount of $19,500.  Osborne was also required to forfeit a grizzly bear mount, bull moose mount, three caribou mounts and a .375 H&H rifle and scope used to commit the crimes. 

Fulton Wold, 41, of Nashville, Tennessee, pleaded guilty and was sentenced pursuant to a plea agreement on November 13, 2015.  As part of this agreement and sentence, Wold agreed to plead guilty to the illegal take of a caribou on a hunt orchestrated by Clark Dixon in September 2009 in which Wold did not have the proper permits or non-resident tags.  As part of his sentence, Wold was placed on two years of probation, paid a fine of $7,500, and was ordered to pay $1,000 in restitution to the Noatak Preserve.  Wold was also required to forfeit a bull moose and caribou mount as both were killed illegally.

On Nov. 6, 2015, Terry Goza, 71, of Hazlehurst, Mississippi, pleaded guilty to taking a Dall sheep ram, same day airborne, in the Noatak preserve while hunting with Clark Dixon and others.  Goza was sentenced to a term of probation and the payment of a $5,000 fine.  Footage from Osborne, Wold’s and Goza’s hunts were shown on Clark Dixon’s cable TV hunting show “The Syndicate.”

Defendant Shannon Dale Hooks, 54, of Mendenhall, Mississippi, and Lance David Walker, 37, of Baton Rouge, Louisiana, plead guilty and were sentenced by Judge Beistline on Dec. 3, 2015.  Hooks was sentenced to three years probation and Walker was sentenced to four years probation, both with a worldwide hunting prohibition.  Hooks and Walker were also ordered to pay a fine of $5,000 and restitution in the amount of $10,000 for the unlawfully taken wildlife

Defendant Randolph Goza, 48, of Wasilla, Alaska, pleaded guilty to assisting in the same day airborne take of a Dall sheep.  Goza was sentenced on Dec. 28, 2015, by Judge Beistline.  As part of his plea agreement, Goza was sentenced to a term of five years probation that carried a worldwide hunting prohibition as a condition.  Goza was ordered to pay a fine of $25,000 and restitution in the amount of $12,000 for the unlawfully taken Dall sheep.

Robert Viner, 49, of Ridgeland, Mississippi, was cited by investigators for the illegal transport of an unlawfully taken brown bear.  Viner has admitted guilt in connection with the charges, and has paid a $3,250 fine.

The National Park Service cited The Outdoor Syndicate, LLC, in Reno, Nevada, its owner Michael P. Dianda, and a production company, Zap Lab, Ltd, in Reno, Nevada, for commercial filming on the Preserve without a permit.  Clark Dixon and another professional videographer acquired footage of hunts which were aired on The Syndicate.  These groups have all paid their fines in connection with this case.

In summary, the joint U.S. Fish and Wildlife Office of Law Enforcement and National Park Service’s Operation Syndicate resulted in nine federal convictions, with total fines imposed in the amount of $208,250.00.  Restitution to the Noatak Preserve for the animals illegally killed by Clark Dixon and his associates was ordered by the court in the amount of $62,500.00.  Charles Dixon’s STOL Quest SQ-4 aircraft, valued at $200,000, was forfeited to the United States under the Lacey Act, and 28 illegally killed wildlife trophies along with various firearms used in the offense were also forfeited to the government.

“You were leading some of these people you hunted with in the wrong direction,” said Judge Beistline.  “You were a skilled hunter, who knew the rules and regulations and you violated the law on television; you’ve been hunting illegally for eight years and claimed to be an Alaska resident when you weren’t.”

Ms. Loeffler commends the work of the U.S. Fish and Wildlife Service, Office of Law Enforcement and the National Park Service who jointly investigated this case in Alaska and elsewhere.