District of Alaska

An Alaskan physician was sentenced to 20 years in prison and a lifetime term of supervised release for receiving and distributing child pornography, 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.

Dr. Greg Alan Salard, 54, of Wrangell, Alaska, was found guilty on July 28, 2015, after a six-day trial before Chief U.S. District Judge Timothy M. Burgess of the District of Alaska, who also sentenced Salard late yesterday and ordered him to pay a $25,000 fine. 

According to evidence presented at trial, between June and October 2014, an Internet Protocol address linked to Salard was used to share known child sexual exploitation files and a laptop computer seized from Salard’s home contained peer to peer software that was used to share one of the images identified during the investigation.  A forensic examination of the laptop uncovered evidence of hundreds of child sexual exploitation files, that multiple searches had been run on the laptop for a term associated with child sexual exploitation and that child sexual exploitation videos had been viewed on the computer.  The evidence also revealed that a program designed to erase or “wipe” computer files had been used multiple times, including on the morning the search warrant was executed.

The FBI investigated the case, with assistance from the U.S. Forest Service; the Petersburg, Alaska, Police Department; the Wrangell Police Department; and the Juneau, Alaska, Police Department.  Assistant U.S. Attorney Kyle Reardon of the District of Alaska and Trial Attorney Leslie Williams Fisher 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 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.

Juneau, Alaska –U.S. Attorney Karen L. Loeffler announced today that a joint United States-Canadian wildlife investigation has concluded in the United States after the convictions of two Canadian hunters for violations of the Lacey act for the illegal take and export of wildlife. 

Kelly D. Murray, 51, and Jason J. Clemett, 42, were sentenced by Chief U.S. District Judge Timothy M. Burgess to probation and to pay fines of $5,000 and $10,000, respectively.

According to Assistant U.S. Attorney Jack S. Schmidt, who handled the sentencing hearings, the violations arose around guided hunts that occurred between May 2010 and October 2011 in the Haines, Alaska area.  The charges against Murray resulted from an illegal brown bear hunt that occurred in May 2011.  Murray had assisted in that illegal harvest by skinning an illegally killed bear.  The charges against Clemett resulted from an illegal hunt of a mountain goat that occurred in October 2011, led by the same guide.  The hunter failed to salvage all of the meat from his mountain goat and falsified the underlying hunt records required by Alaska State law.  The hunter gave the illegally taken mountain goat to his friend Clemett who failed to declare the export of the goat prior to taking the mountain goat back to Canada in his private jet.  The mountain goat was transported to Canada and delivered to the hunter.

The convictions are a result of a joint United States-Canadian investigation involving prosecutions in Alberta, and Yukon Territory Canada, with violations under Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (WAPPRIITA). 

Ms. Loeffler commends the U.S. Fish and Wildlife Service, Alaska Wildlife Troopers, Environment Canada, Yukon Conservation Officer Service, Alberta Fish and Game, Parks Canada, British Columbia Conservation Officer Service, and the Public Prosecution Service of Canada for the international cooperation extended in the investigation of these cases.

Juneau, Alaska – An Alaskan physician was sentenced today to 20 years in prison for receiving and distributing child pornography, a lifetime term of supervised release, and a $25,000 fine, announced U.S. Attorney Karen. L. Loeffler.

Greg Alan Salard, 54, of Wrangell, Alaska, was found guilty on July 28, 2015, after a six-day trial before Chief U.S. District Judge Timothy M. Burgess.

According to evidence presented at trial, between June and October 2014, during an FBI investigation concerning the trading of child pornography using peer-to-peer (P2P) software, investigators discovered that an Internet Protocol (IP) address linked to Salard was used on multiple occasions to share files of known child pornography.  The evidence also showed that a laptop computer subsequently seized from Salard’s home contained the same P2P software used to share one of the images identified during the investigation.

Testimony regarding a forensic examination of the laptop demonstrated that the computer contained the child pornography video identified by investigators, as well as evidence of hundreds of other files of child pornography; the jury reviewed the contents of eleven of those files.  The testimony also showed that multiple searches had been run on the laptop for a term associated with child pornography, and videos of child pornography had been viewed on the computer.  Finally, the evidence introduced at trial revealed that a program designed to erase or “wipe” computer files had been used multiple times, including on the morning the search warrant was executed.

At sentencing, Judge Burgess focused on the defendant’s “extremely serious conduct,” and the “thoughtful, deliberate, and sophisticated way in which he obtained the material.”  Judge Burgess noted that Salard “was sophisticated enough to put [his child pornography] into files no one searching for it would know were child pornography…he was sophisticated enough to alter the default features of [the file-sharing program.  That was not an unintentional step…and only adds to the seriousness.”

Judge Burgess noted that the defendant had not appeared to come to terms with the fact that he had committed a crime and that there was no acknowledgement of guilt.  There is no first step toward rehabilitation.  Judge Burgess expressed concern with the fact that there was “nothing” to assure him that the defendant will not engage in child exploitation crimes in the future.

Finally, Judge Burgess also stated that the many letters of support submitted on behalf of the defendant did not capture his true nature.  “I think Dr. Salard is a sophisticated and manipulative person who was able to compartmentalize his life and deceive others,” said Judge Burgess.  “There is a dark and sinister side to his personality that let him get involved in this type of behavior and hide it from others.”

The FBI investigated the case, with assistance from the U.S. Forest Service; the Petersburg, Alaska, Police Department; the Wrangell, Alaska, Police Department; and the Juneau, Alaska, Police Department.  The case was prosecuted by Assistant U.S. Attorney Kyle Reardon of the District of Alaska, and Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section.

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.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Fairbanks woman was sentenced on Friday, February 5, 2016, in federal court in Fairbanks after being found guilty of converting federal government and tribal funds to her own use.

JoAnn Polston, 60, of Fairbanks, Alaska, was sentenced by U.S. District Judge Ralph R. Beistline to three years’ probation with special conditions including 90 days home confinement and cooperation with representatives of the Healy Lake Tribe concerning whereabouts and disposition of tribal funds, and payment of restitution of $4,577.61 to the Bureau of Indian Affairs and $102,860.20 to the Healy Lake Tribe.  Polston had pled guilty in September 2015. 

Assistant U.S. Attorney Yvonne Lamoureux, who prosecuted the case, noted that according to filings with the court, between 2009 and 2012, Polston knowingly converted to her own use money belonging to the Bureau of Indian Affairs and the Healy Lake Tribe.  Specifically, Polston, as the First Chief and Tribal Administrator for the Healy Lake Tribe, abused her position of trust to write herself checks and transfer money from the Tribe’s bank accounts to her personal bank account.  Polston also submitted and received per diem payments from the BIA in the amount of $4,577.61 to which she was not entitled because Polston had previously paid herself per diem payments from the Healy Lake Tribe’s bank accounts for the same trips.  Between August 2009 and May 2012, Polston knowingly converted the Tribe’s money to her own use by writing herself checks and transferring money into her account in the amount of at least $10,914.20.  Between May 2009 and June 2013, Polston also paid herself $91,946.00 without backup documentation, above and beyond her salary payments or other authorized payments. 

In sentencing Polston, Judge Beistline noted that misuse of federal funds jeopardizes other native and rural communities that receive federal funds.

“The results of this prosecution reflect the Department of Interior Office of Inspector General’s commitment to pursue fraud involving the Department’s programs and its commitment to its trust responsibility to Native Americans,” said U.S. Department of the Interior Office of Inspector General Special Agent in Charge David House.  “Public corruption in Native American communities is especially egregious because it usually comes at the expense of vital tribal programs intended for the benefit of the entire tribal community.”

Ms. Loeffler commends the Federal Bureau of Investigation and the Department of the Interior Office of Inspector General for conducting the investigation leading to the successful prosecution of Polston.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Las Vegas man has been sentenced by U.S. District Judge Sharon Gleason to serve 36 months in prison for using his employment at McCarran International Airport to aid drug traffickers in sneaking large quantities of cocaine past security and onto Alaska-bound flights.  

Bryan M. Bledsoe, of Las Vegas, previously pled guilty to conspiring with others to distribute cocaine.  As part of his guilty plea, Bledsoe, an airline employee, admitted that he personally took bags full of cocaine through the secure area of McCarran International Airport and then delivered the drugs to co-conspirators who then transported the drugs to Anchorage for distribution.  Overall, Bledsoe admitted being involved in the shipment of between five and fifteen kilograms of cocaine during the pendency of the conspiracy.

According to Assistant U.S. Attorney Stephanie C. Courter, who handled the sentencing hearing, the conspiracy began as early as 2012 and continued until June 2014.  During that time, conspirators worked to import multiple kilograms of cocaine into Alaska from Las Vegas for distribution.  After the drugs were sold, the conspirators then secreted more than one million dollars in cash proceeds out of Alaska and back to the Lower 48.

Bledsoe, an airline employee working at the airport, was recruited by conspirators to help them bypass security with the cocaine.  On a regular basis, co-conspirators provided Bledsoe with bags containing multiple kilograms of cocaine.  Bledsoe then used his airport employee credentials to bring the drugs into the airport without having to pass through security screening.  Once in the secure area of the airport, Bledsoe then returned the un-scanned bags of cocaine to his co-conspirators who then boarded Alaska-bound flights to deliver the drugs. 

On June 1, 2014, investigators actually observed Bledsoe and his co-conspirators in action.  On that day, co-defendant Dewane Blue gave Bledsoe a bag containing ten kilograms of cocaine.  Bledsoe then carried the drugs past security checkpoints and returned them to Blue.  Blue then gave the drugs to a third co-conspirator, Daren Cole, who was scheduled to travel to Anchorage that afternoon.  Before Cole boarded his flight, however, his carry-on was seized and agents recovered approximately ten kilograms of cocaine from inside.

During the sentencing hearing, Judge Gleason focused on the fact that Bledsoe had used his job as an airline employee to help perpetrate the drug trafficking scheme.  She noted the seriousness of the offense and the need for the public to be protected, particularly when flying.  She also focused on the need to deter others in the future from using their security clearances at airports to help commit crimes.

Bledsoe is the latest 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; and

• Antonio Beckwith:previously sentenced to 24 months in prison           

Two other defendants, including the leader of the conspiracy, are set to be sentenced in the coming months.

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.

Juneau, Alaska-U.S. Attorney Karen L. Loeffler announced today that a former Juneau resident pled guilty to charges related to a Jan. 15, 2015, unauthorized burning of timber and failure to maintain control of a fire located within the Tongass National Forest. 

John H. Shryne, 31, of Olympia, Washington, was arraigned and pled guilty before U.S. Magistrate Judge Leslie C. Longenbaugh on the charges of unauthorized burning of timber and failing to maintain control of a non-prescribed fire, contained in a two-count information.  Judge Longenbaugh subsequently sentenced Shryne to pay a $2,400 fine and placed him on one year of probation.

Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, indicated that United States Forest Service (USFS) Law Enforcement had been investigating a number of tree pitch fires occurring on local hiking trails within the Juneau area.  On Jan. 15, 2015, Shryne was observed by a USFS Law Enforcement Officer conducting surveillance, entering and subsequently leaving the Tolch Rock Trail within the Tongass National Forest.  After observing Shryne and another individual leaving the area, the USFS officer entered the trail and observed a tree on fire approximately 100 yards from the trailhead and a few feet from off the trail.  The fire was extinguished and evidence at the scene was collected.  On Feb. 13, 2015, Shryne was interviewed by USFS Law Enforcement and admitted he had set the fire at the Tolch Rock Trail on USFS land and admitted to setting several other fires on other trails located within the City and Borough of Juneau.

During sentencing, Judge Longenbaugh noted the seriousness of the offense, as well as the need to address the defendant’s serious substance abuse and mental health issues.  Judge Longenbaugh also ordered the defendant to obtain a substance abuse and mental health evaluation and follow their recommendations, as well as, monthly drug testing. 

The USFS Law Enforcement conducted the investigation leading to the conviction in this case.

Fairbanks, Alaska — U.S. Attorney Karen L. Loeffler announced today that a North Pole man was sentenced in federal court in Fairbanks for one count of trafficking methamphetamine and heroin, and one count of possessing a firearm in furtherance of a drug trafficking crime.  

Ray Don Groskreutz, 39, of North Pole, Alaska, was sentenced today by U.S. District Judge Ralph R. Beistline, to thirteen years in prison, to be followed by four years of supervised release.

According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, Groskreutz was apprehended on July 27, 2015, after the Alaska State Troopers (AST) conducted a welfare check at the Fairbanks hotel where Groskreutz was staying.  AST confirmed Groskreutz was on court-ordered release in connection with three separate state criminal cases.  When AST encountered him, Groskreutz admitted he had been “shooting up” earlier that day, and agreed to be searched:  Groskreutz had a loaded .380 caliber handgun on his hip, along with nearly $6,000 in cash and a Taser in his front pants pocket.  Further investigation revealed that Groskreutz’s backpack – which AST found in his room – contained over 200 grams of methamphetamine, 71.1 grams of heroin, $11,000 cash, a drug ledger, a digital scale, and numerous small unused plastic baggies, and drug paraphernalia.  Groskreutz’s van, parked at the hotel, contained another 14 firearms and numerous rounds of ammunition, which he has agreed to forfeit and which he admitted were proceeds of and/or facilitated his drug trafficking crime.   

As part of his plea deal with the United States, Groskreutz has agreed to resolve all of his numerous pending state criminal matters.  For instance, as detailed in his plea agreement, Groskreutz has agreed to plead guilty to one count of misconduct involving weapons in the third degree as charged in State of Alaska v. Groskreutz, No. 4FA-12-01406CR (i.e., a crime that arose on June 9, 2011), and to one count of burglary in the second degree as charged in State of Alaska v. Groskreutz, No. 4FA-14-03341CR (i.e., a crime that arose in June 2014).

During the sentencing hearing, Judge Beistline noted that the defendant had been “on a crime spree for the last three years” related to guns and drugs.

“This prosecution represents our continuing efforts, working cooperatively with our State and local partners to focus on our mission to protect public safety by working to reduce the damaging effects of drug trafficking and weapons,” said U.S. Attorney Loeffler. 

“This habitual offender no longer poses a threat to the residents of Fairbanks,” added DEA Special Agent in Charge Keith Weis, who commended the participating agencies’ efforts and the court’s sentencing.

U.S. Attorney Loeffler commended the U.S. Drug Enforcement Administration (DEA) and the Alaska State Troopers Fairbanks Statewide Drug Enforcement Unit for their investigation of this case, as well as the Fairbanks District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) for their assistance in this matter.

Fairbanks, Alaska — U.S. Attorney Karen L. Loeffler announced today that a North Pole man was sentenced in federal court in Fairbanks for one count of presenting a false application for a United States Passport.  

Bryan Edward Tucker, 41, of North Pole, Alaska, was sentenced today by U.S. District Judge Ralph R. Beistline, to eight months in prison, to be followed by one years of supervised release.

According to Assistant U.S. Attorney Andrea W. Hattan, who prosecuted the case, Tucker presented a fraudulent application for a United States passport at the United States Post Office on Barnette Street in downtown Fairbanks.  In doing so, Tucker used his brother’s name and identification information, and presented an Alaska driver’s license bearing his photograph but issued in his brother’s name, as well as a copy of his brother’s birth certificate.  Tucker certified, under penalty of perjury, that his passport application was true and correct, and that the documents he had presented were not false. 

Further investigation revealed that Tucker had been using his brother’s identity for nearly a year to obtain identification documents that were necessary to obtain an Alaska commercial driver’s license (CDL).  Tucker admitted that he did so because he knew that Alaska law prohibited him from obtaining a CDL in his own name due to his prior Alaska convictions for driving under the influence of alcohol in 2012 and 2014, respectively.  Before getting caught, Tucker obtained the following documents in his brother’s name:  social security card, a medical examiner’s certificate from Alaska Occupational Health, and two standard Alaska driver’s licenses issued in his brother’s name.

During the sentencing hearing, Judge Beistline expressed the seriousness of the crime and the need to deter “at a time when the integrity of a passport is especially important.”

“Lying about your identify in order to obtain official documents has serious implications,” said Kevin Feldis, First Assistant U.S. Attorney.  “Trying to obtain a passport with your photograph in someone else’s name, for whatever reason, is a serious crime.  In this case, the defendant was trying to hide prior crimes that were directly relevant to whether or not he was qualified and had earned the right to obtain a commercial driver’s license.  I commend the investigators who handled this case.”

U.S. Attorney Loeffler commended the U.S. Department of State Diplomatic Security Service and the Alaska State Troopers for their investigation of this case, as well as the United States Marshals Service for their assistance in this matter.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Theodore Westlake, 19, of Noorvik, Alaska, was sentenced today by U.S. District Judge Sharon L. Gleason to seven months in prison for his burglary of a United States Post Office in the village of Noorvik.  Westlake was also ordered to pay full restitution.

According to Assistant U.S. Attorney Aunnie Steward who prosecuted the case, Westlake and two others, forcibly entered the Noorvik Post Office, rifled mail, and attempted to drill into a safe looking for cash. Westlake’s burglary was interrupted when the Village Public Safety Officer responded to the scene.  Over $3,000 in damage was done by the forced entry and attempt to drill into the safe. 

The important role the U.S. Post Office plays in a community such as Noorvik was noted by Judge Gleason in her sentencing comments. 

“Postal Inspectors worked closely with the U.S. Attorney’s Office and the Alaska State Troopers on this investigation and will continue efforts in support of the Postal Inspection Service mission to vigorously protect the U.S. Mail and U.S. Postal Service employees and customers against all forms of criminal attack and misuse,” said Seattle Division Inspector in Charge, Anthony Galetti of the U.S. Postal Inspection Service.

U.S. Attorney Loeffler commends the United States Postal Inspection Service and the Alaska State Troopers for the investigation of this case.

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that four men have been indicted by a federal grand jury in Anchorage for conspiracy to defraud the government with respect to claims related to a prisoner tax fraud scheme. 

The four defendants named in the indictment are Jesse Scott Wilson, 41, William Wesley Hines, aka Speedy, 54, Jason Donald Schmidlkofer, 34, and Nick Lewis Thurmond, 30.  Wilson, Hines, and Schmidlkofer are residents of Alaska.  Thurmond is currently a resident of Colorado.   

According to the indictment, between 2008 and 2012, the defendants joined in a conspiracy to file false tax returns and obtain tax refunds from the United States Treasury to which the defendants knew they were not entitled.  The defendants obtained the names and social security numbers of individuals, many of whom were inmates at correctional facilities.  The defendants prepared false individual income tax returns claiming false wages and withholding amounts listed on the tax returns for which there were no Forms W-2 issued.  Each return claimed that the taxpayer was owed thousands of dollars in refunds to which they were not entitled.  The conspirators forged the individuals’ signatures on the tax returns and used their own personal addresses and fake addresses on the tax returns.  The conspirators mailed the false income tax returns to the Internal Revenue Service.  During the course of the conspiracy, the conspirators prepared and submitted by mail approximately 375 false tax returns using the names and social security numbers of approximately 185 individuals for approximately $580,912 in fraudulent refund claims, and illegally obtained approximately $380,605 in fraudulent refund claims paid by the United States Treasury. 

If convicted, the defendants face a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.

U.S. Attorney Loeffler commends the Internal Revenue Service – Criminal Investigation for the investigation of this case.

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

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that, on Jan. 21, 2016, an Anchorage man was sentenced by Chief U.S. District Judge Timothy M. Burgess to serve 46 months in prison for possessing firearms as a convicted felon.  

Christopher Haynes, 26, of Anchorage, Alaska, previously pled guilty to jointly possessing several firearms at the scene of a “home invasion” shooting on Jan. 27, 2015.   Haynes, a felon, was prohibited from possessing firearms at the time of the incident. 

According to Assistant U.S. Attorney Frank V. Russo, who handled the sentencing hearing, the Anchorage Police Department was called to the scene of a “home-invasion” shooting on Jan. 26, 2015, at an apartment in Anchorage.  The defendant was present at the address, along with his girlfriend, his brother Christian Haynes, his brother’s fiancée, Krystal Hawk, and several children.   Christian Haynes and Krystal Hawk died from gunshot wounds inflicted by the assailants, who fired into the apartment after forcing in the door, which had been barricaded.  The defendant, his girlfriend, and the children escaped injury.  When officers searched the residence, they seized five firearms, including three 9 mm pistols and two assault rifles.  One of the firearms was found in the defendant’s bedroom.  

The double murder was the last in a string of three shootings that began on Jan. 24, 2015, with a home invasion of Christian Haynes’ residence located on Reka Drive in Anchorage.  During that shooting, assailants forced their way into the residence, fired numerous shots, and kicked a six-year old child in the face.  Later that same evening, a “drive-by” shooting took place on San Roberto Avenue in Anchorage, in an apparent retaliation for the first shooting.  In that shooting, a little girl in an adjacent apartment was grazed by a bullet.  A vehicle matching the description of Christian Haynes’ truck was seen leaving the area.  Ballistic evidence recovered at that scene matched two of the firearms recovered from the defendant’s residence, where Christian Haynes went to stay after his house was attacked. 

Currently, Michael Reynold is under indictment by the State of Alaska for the murders of Christian Haynes and Krystal Hawk.  Reynold is charged in a related case in federal court, which alleges that he and 11 other co-defendants are part of the “Fairview MOB,” which is affiliated with the Bloods street gang.   The FBI and Anchorage Police Department continue to investigate both the activities of the Fairview MOB and the homicides and related shootings.  Anyone with information on these cases can call the FBI at (907) 276-4441 or Crime Stoppers at 561-STOP. 

During Christopher Haynes’ sentencing hearing, Judge Burgess noted that the defendant had in some respects been punished already due to the death of his family members; however, he acknowledged the “atypical” nature of the case, given the deaths and string of shootings.  Judge Burgess noted the consequences of this case are the very reasons that felons are prohibited from possessing firearms in the first place:  because when felons possess firearms “bad things can happen.”  Because of the seriousness of the offense, Judge Burgess imposed the 46-month sentence instead of the two-year sentence requested by the defendant. 

In announcing the sentence, U.S. Attorney Loeffler commended the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Anchorage Police Department (APD), who investigated the case, as well as the U.S. Attorney’s Office partnership with the Municipality of Anchorage, which has assigned a prosecutor to the U.S. Attorney’s Office to address gang crimes.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Anchorage resident Zachary Ensman was sentenced to two and a half years in prison for conspiring to cash checks stolen from the mail and from vehicle break-ins, and taken during home burglaries.  Ensman also used stolen identities to cash the stolen checks and to fraudulently open bank accounts to use for negotiating stolen checks.  The loss from the conspiracy was over $40,000.  

Zachary Ensman, 31, of Anchorage, Alaska, was sentenced today by U.S. District Judge Sharon L. Gleason to two and a half years in prison on nine counts that included charges of conspiracy, bank fraud, possession of stolen mail, and aggravated identity theft.  Judge Gleason ordered Ensman to pay full restitution to the victims.

According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, Ensman conspired with Kelci Neal to use stolen checks and stolen identities at banks and businesses in Anchorage from October 2014 to August 2015, to obtain over $47,000. 

In imposing the sentence, Judge Gleason noted the impact to the individuals whose checks and identities were stolen and the banks that were defrauded. 

Kevin Feldis, First Assistant U.S. Attorney, emphasized that “Ensman was part of a criminal conspiracy that harmed numerous people in our community.  Not only were checks stolen, and cars and homes invaded, but people’s personal identities were stolen and misused.  The impact of this crime is far greater than just the 40,000 dollars in falsified checks that were forged and cashed.  Sixteen individuals had checks stolen, four had their identities stolen, and seven banks were defrauded.  The United States Attorney’s Office places a priority on prosecuting these crimes and seeking compensation for the victims.”

“Postal Inspectors worked closely with the U.S. Attorney’s Office, Anchorage Police Department, and fraud investigators from numerous banking institutions on this investigation,” 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 and customers against all forms of criminal attack and misuse.”

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

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Texas man has been sentenced by U.S. District Judge Ralph R. Beistline to serve 84 months in prison for his role in a conspiracy to sell large quantities of heroin and methamphetamine to Alaska-based drug dealers.  

Omar Alejandro Alfaro, 37, of Texas, previously pled guilty to conspiring with others to distribute heroin and methamphetamine.  As part of his guilty plea, Alfaro admitted that he personally delivered large quantities of drugs to Alaska-based co-conspirators who then transported the drugs to Anchorage for distribution.  Alfaro admitted working with co-conspirators both in the United States and in Mexico.

According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, the conspiracy began in January 2013 and continued until October 2014.  During that time, conspirators imported a total of 12 kilograms of heroin and two pounds of methamphetamine into the United States from Mexico. 

As part of his guilty plea, Alfaro admitted personally delivering both heroin and methamphetamine on multiple occasions.  In March 2014, for example, Alfaro delivered approximately one kilogram of heroin to an undercover DEA agent posing as an Alaska-based drug dealer.  Several months later, in June 2014, Alfaro again delivered drugs to the undercover agent – this time, he delivered approximately 2.5 kilograms of heroin and 866 grams of actual methamphetamine.  During the exchange, the undercover agent provided Alfaro with an Alaska themed t-shirt that had been requested by Alfaro’s Mexico-based co-conspirator.

During the sentencing hearing, Judge Beistline noted the devastating consequences that heroin and methamphetamine have on individuals and was particularly concerned about the significant quantity of drugs for which Alfaro was personally responsible.  In sentencing Alfaro, Judge Beistline also emphasized the need for deterrence and the need to reinforce societal norms.

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;
• 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; 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.

Fairbanks, Alaska — Stephen Michael St. Hilaire, 28, a soldier stationed at Ft. Wainwright, Alaska, was sentenced today by U.S. District Judge Ralph R. Beistline to 72 months in prison to be followed by a 15-year term of supervised release for possession of child pornography, U.S. Attorney Karen L. Loeffler announced.

According to documents filed in the case, St. Hilaire was identified by law enforcement using an Internet file-sharing network to trade images of child pornography.  A search of St. Hilaire’s computer located in his barracks room at Ft. Wainwright found hundreds of files of child pornography, including images and videos of toddlers and infants being sexually molested by adult males.

At sentencing, Judge Beistline emphasized the fact that while the defendant’s activities may have occurred online, his crime involved images and videos of actual victims of molestation.  “The problem is, when you are viewing these kinds of things, [you are] viewing real people,” said Judge Beistline, “[t]hat victimization stays with them their entire life.”  Judge Beistline also noted that his sentence was intended to “discourage people from looking at this stuff, so there is no market [for it].”  “We as a society are trying to protect young children,” said Judge Beistline.

This case was investigated by the FBI, with assistance from the United States Army, Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Kyle Reardon.

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.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that, on Monday, Phillip Dixon, Jr., a/k/a “Cheddar,” 28, of Manteca, CA, was sentenced to 180 months in prison, followed by five years of supervised release.  Dixon pleaded guilty on April 16, 2015, to conspiracy to distribute methamphetamine and heroin and conspiracy to launder money.  As part of his plea, he further agreed to forfeit a 2009 Impala, a 2003 Land Rover, $3,400 in currency seized from a Wells Fargo account used to launder money, and $25,000 seized from a safe deposit box.

Dixon was the leader of a drug trafficking organization that sold drugs in Alaska, but whose members were for the most part from the Stockton, California area.  The members of the conspiracy would take turns traveling between California and Alaska to sell their drugs and then would send their drug proceeds back to California via bank deposits and wire transfers.

The investigation revealed that the organization used firearms to enforce their drug trade and to protect their drug trafficking proceeds.  During this investigation firearms were seized from members of this violent organization.

According to court documents, Dixon served a previous prison term for felony drug trafficking and related firearm offenses.  Upon his release, he organized the current group, most of whom were from California.  Many of the co-defendants Dixon recruited had no previous criminal history, but entered this conspiracy willingly.  Between April 2012 and April 2013, Dixon’s criminal enterprise distributed methamphetamine and heroin throughout Alaska.  The conspirators used some of the proceeds of the sale of the drugs to fund their transportation and other operating expenses of the organization.

Furthermore, Dixon 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, and that they in fact laundered money in connection with transfers of money from Alaska to the Eastern District of California, knowing that the money represented the proceeds of drug sales.  Dixon 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, Dixon instructed members of the group to send drug sale proceeds via money orders.

Those others indicted and sentenced include:

• George Little, a/k/a “Nino,” 23, of Stockton, CA; 108 months in prison;
• Gloria Sarinana, 27, of Stockton, CA; five years of probation;
• Fausto Hernandez, a/k/a “Jimmy,” 31; of Stockton, CA; 18 months in prison;
• Shaquille Marquis Anderson, a/k/a “Calvin,” 23; of Stockton, CA; 18 months in prison;
• Justin Fisher, 28, of Stockton, CA; 12 months in prison;
• Kyle Wilson, 24, of Chugiak, Alaska; 11 months in prison;
• Marcos Diaz, 25, of Stockton, CA; 30 months in prison;
• Norris Drummond, Jr., 21, of Stockton, CA; 30 months in prison;
• Cesar Serna, 23, of Stockton, CA; 44 months in prison;
• Anthony Mixon, a/k/a “Ray,” 19, of Stockton, CA;  24 months in prison; and
• Harry Hawkins, III, a/k/a “Paulie,” 33, of Stockton, CA; 33 months in prison.

“Drug trafficking is a nasty business that erodes the safety of our community and destroys families and lives,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation.  “But we know the dealers responsible for this trail of tears don’t care about those repercussions; they’re only in it for the money, and that’s where we come in.  IRS-CI is uniquely positioned to track down the money trail criminals like Dixon leave behind, and we are pleased to add our expertise to that of our law enforcement partners to bring this career offender to justice.”

This case was investigated and prosecuted under the purview of the Organized Crime and Drug Enforcement Task Force, which is made up of personnel from the U.S. Attorney=s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue ServiceBCriminal Investigations, and Department of Homeland Security.

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a California man has been sentenced by U.S. District Judge Sharon Gleason to serve 75 months in prison for his role in a conspiracy to sell large quantities of cocaine and methamphetamine to Alaska-based drug dealers.  

Tomas Gutierrez Ayala of California previously pled guilty to conspiring with others to distribute methamphetamine and cocaine.  As part of his guilty plea, Ayala admitted that he was personally responsible for the distribution or attempted distribution of ten pounds of methamphetamine.  Ayala further admitted that he had been involved in several other previous methamphetamine and cocaine sales.   Upon being released from prison, Ayala will be on supervised release for five years.

According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, the conspiracy began in February 2013 and continued until Ayala was indicted in October 2014.  Ayala’s involvement came to the attention of law enforcement in July 2013 when ten pounds of methamphetamine was found in his garage in close proximity to mail bearing his name.  Ayala had received the drugs from co-conspirators in Mexico and admitted intending to sell them to an Alaska-based co-conspirator who planned to mail them back to Anchorage for distribution.  Law enforcement ultimately seized the methamphetamine before the deal could occur. 

As part of his guilty plea, Ayala admitted that, during his involvement in the conspiracy, he had distributed both methamphetamine and cocaine to an Alaska-based co-conspirator on multiple occasions.  At sentencing, the parties discussed the harm that methamphetamine causes in our community, noting that the ten pounds of methamphetamine seized from Ayala in July 2013 equated to more than 33,000 individual doses of the drug.

During the sentencing hearing, Judge Gleason found it significant that Ayala had intended to sell the drugs not in his home state of California but instead chose to ensure their delivery to Alaska where profits are higher.  She also raised concerns about the large quantity of methamphetamine at issue, calling Ayala’s crime a serious offense from which the public needs to be protected.  In pronouncing sentence, Judge Gleason also emphasized the importance of handing down sentences that deter future criminal conduct. 

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;

• 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; and

• Geronimo Arellano Velarde, of California, previously sentenced to 120 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 that a father and son from Wrangell, Alaska, were sentenced yesterday in Juneau federal court on charges related to violations of the Lacey Act while fishing for halibut in the Gulf of Alaska.

Charles “Chuck” J. Petticrew Sr., 70, and Charles “Jeff” J. Petticrew Jr., 42, residents of Wrangell, Alaska, were previously charged with violating the federal Lacey Act.  Both defendants admitted their crimes and pled guilty in October before Chief U.S. District Judge Timothy M. Burgess.

According to Assistant U. S. Attorney Jack S. Schmidt, Between June 28, 2010, and continuing until May 20, 2013, Petticrew Sr. and Petticrew Jr. conspired to falsify fishing locations on Alaska Department of Fish and Game (ADF&G) Longline Fishery Logbook entries, IFQ landing permits, and ADF&G Halibut Tickets indicating that they fished in Management Area 3A, when in fact, they had only fished Management Area 2C.  The defendants had illegally caught halibut in Management Area 2C valued over $23,000 and falsified Individual Fishing Quota (IFQ) records.  Petticrew Sr. pled guilty to a single felony count of conspiracy to falsify (IFQ) records and was sentenced to pay a $90,000 fine and placed on probation for five years.  Petticrew Jr. pled guilty to a single misdemeanor count for violating the Lacey Act by falsifying IFQ records and was sentenced to pay a $10,000 fine and placed on probation for five years.  Both defendants agreed to install and pay for a Vessel Monitoring System (VMS) for the vessel used by the defendants or any other vessel who is fishing on behalf of the family corporation.  

Prior to imposing the sentences, Judge Burgess stated the seriousness of the crime, deterrence of the defendant and others, as well as the need to protect Alaska fishery resources.

The National Oceanic and Atmospheric Administration, Office of Law Enforcement, Alaska Enforcement Division conducted the investigation leading to the charges in this case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a former Ketchikan resident was sentenced to 10 years in prison for drug trafficking. 

Alexander Barcena Singson, 62, a former resident of Ketchikan, Alaska, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess in Anchorage to 10 years in prison followed by a five year term of supervised release.  On April 6, 2015, Singson pled guilty to a single drug trafficking conspiracy count.

According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, beginning on or about October 19, 2011, and continuing until September 26, 2012, Singson and others transported methamphetamine from Las Vegas, Nevada, to Ketchikan, Alaska.  Members of the conspiracy utilized the United States Postal Service (USPS) and commercial package delivery services to transport the drugs to Ketchikan where it would be distributed to others.  Co-conspirators then took those drug proceeds on their persons using commercial airlines, used wire transfers and personal accounts of Singson and others to pay for more methamphetamine for subsequent distribution.  During the investigation, law enforcement seized a number of parcels and packages that contained a total of 383 grams of actual methamphetamine.

In sentencing Singson, Judge Burgess noted the seriousness of the crime and the need to protect the public as the reasons for the sentence he imposed.

U.S. Attorney Loeffler commended the U.S. Postal Inspection Service, the DEA, the FBI, the Port of Seattle Police Department, and the Ketchikan Police Department – Drug Unit who conducted the investigation leading to the successful prosecution in this case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was sentenced in federal court in Anchorage for three counts of defrauding an elderly woman of over $70,000. 

Susanna Difranco, 53, of Anchorage, Alaska, was sentenced today by U.S. District Judge Timothy M. Burgess to a year in prison and six months in a halfway house.

According to Assistant U.S. Attorney Aunnie Steward, Difranco obtained financial information of an elderly woman who is a widow and has dementia, and used that information to get online access to the victim’s bank account and obtain a debit card on the victim’s bank account.  Difranco also changed the address of the victim’s mail to her own so she would receive all of the victim’s mail.  In so doing, Difranco was able to steal over $70,000 of the victim’s money in little over a month.  When the bank questioned Difranco about the money she was withdrawing from the victim’s account, Difranco provided a notarized statement to the bank in which she lied and said she was keeping the money in a safe deposit box on behalf of the victim when, in fact, Difranco had spent all of the money on online shopping, paying her own credit card bill, and booking herself a trip to Las Vegas, among other things.

Judge Burgess said that as a teacher Ms. Difranco had done a lot of good, but that she also had a dark side that allowed her to take advantage of the victim in this case.  Judge Burgess noted that, in addition to this case, Ms. Difranco did not have a good track record because the state had issued two protective orders against her from defrauding her elderly parents. 

“The sentence reflects our commitment along with that of our state and local partners to protect vulnerable victims and pursue those that would prey on them,” said U.S. Attorney Loeffler.

“Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement in Anchorage and the surrounding area on this investigation,” said Seattle Division Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service.  “We take crimes against the elderly and crimes committed by people in a position of trust very seriously and will continue to vigorously protect the U.S. Mail and customers against all forms of criminal attack and misuse.”

U.S. Attorney Karen L. Loeffler commends the United States Postal Inspection Service, and the Anchorage Police Department, with assistance from the Alaska Office of Elder Fraud and Assistance, for the investigation of this case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that after a nine-day trial, a federal jury found Darren K. Byler, 55, resident of Kodiak, Alaska, guilty of violating the Refuse Act and Making False Statements.  The jury found his wife, Kimberly Riedel-Byler not guilty of the same charges.

According to the evidence at trial, Kimberly Riedel-Byler and Darren K. Byler were the owners of the Wild Alaskan, a floating strip club anchored in Kodiak Harbor between June 2014 and November 2014.  On the Wild Alaskan was a customer bathroom for patrons and an employee bathroom for dancers and other staff.  During its operation, more than 1,000 customers visited the Wild Alaskan.  Also present on the vessel during some or all of that time were the Bylers, their six-year-old daughter, a nanny, and between three and six dancers.

Sewage from both bathrooms was piped to flow directly overboard into the waters of Kodiak Harbor.  Evidence establishing this fact included the absence of any storage facilities on board the Wild Alaskan capable of containing sewage.  In addition, video evidence from early November 2014, showed no systems on board the vessel capable of storing and properly disposing of sewage.  Finally, during a search of the vessel on December 9, 2014, law enforcement found no storage tanks, hoses, pumps, or bladders on board the vessel to indicate the proper storage and disposal of sewage.  In addition, expert testimony established that marine growth present on the customer bathroom discharge pipe could only have established itself in the spring and summer of 2014.

When asked to produce documentation about his sewage disposal from the Wild Alaskan, Darren Byler gave the United States Coast Guard Marine Safety Detachment Kodiak a false ship’s log.  In the log the defendant claimed to have disposed of 1,500 gallons of raw sewage from the Wild Alaskan at the Pier 2 sewage disposal facility in Kodiak Harbor on July 29 and 30, 2014.  The defendant also claimed to have disposed of five additional 800 gallon loads of sewage in September and October 2014, by transporting it in his landing craft, the Gulf Coast Responder, and dumping it at sea beyond 3 nautical miles.

Multiple witnesses testified to not seeing Darren Byler at Pier 2 off-loading sewage at any time on either July 29 or July 30, 2014.  The only witness who saw Byler at the facility testified that his vessel was away from the pier, and that there was no equipment in the vessel that could be used to carry or pump sewage.  When inspected by Harbor Master employees, the Pier 2 sewage pipe was dry with no evidence of having ever been used.

In addition, flight records and video evidence introduced at trial showed the defendant was not present in Kodiak, Alaska, on two of the days he claimed to have traveled off-shore to dump sewage.  Rather, on those days the defendant was at his home in a remote area of Kodiak Island.  On a third day, the defendant was present in Anchorage for most of the day, arriving in Kodiak in the late afternoon.  Cell phone messages from that day show that the defendant did not leave the Wild Alaskan after his arrival back into Kodiak.

The case was the product of an investigation by multiple United States Coast Guard units and law enforcement agencies, to include the United States Coast Guard Investigative Service, the United States Coast Guard Marine Safety Detachment Kodiak, the FBI, and the Kodiak Police Department.  Assistant U.S. Attorney Kyle Reardon and Special Assistant U.S. Attorney Lt. Cmdr. William George prosecuted the case.

Darren Byler is scheduled to be sentenced by U.S. District Court Judge Sharon L. Gleason on March 28, 2016.

The maximum statutory penalty for a violation of the Refuse Act, 33 U.S.C. §§ 407 and 411, is not less than 30 days and up to one year imprisonment, fine of up to $25,000 for each day of a violation, a one-year term of supervised release, and a $25 special assessment.  The maximum statutory penalty for a violation of 18 U.S.C. § 1001, False Statements, is up to five years imprisonment, a fine of up to $250,000, a two-year term of supervised release, and a $100 special assessment.  Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was charged with embezzling and misusing funds belonging to Alaska Railroad Workers Union Local 183.  Jeffrey Davies was the President of the Union between 2011 and 2014.  The federal indictment alleges that Davies stole more than $100,000 in union funds in the form of cash withdrawals, checks and by paying for personal expenses with a union debit card.  

Davies, 41, was indicted by a federal grand jury of one count of embezzling labor union assets.  The case will be set for arraignment in federal court in the coming weeks.  According to First Assistant U.S. Attorney, Kevin R. Feldis, the maximum penalties for this offense include up to five years in prison and a $250,000 fine.  

Mr. Feldis noted that “the charges in this case are a good reminder to all organizations that they should have processes in place to safeguard against potential theft and misuse of funds, including performing regular internal audits and requiring multiple officials to be involved in financial oversight.  I commend the FBI and the U.S. Department of Labor for their investigation of this case.” 

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

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that David Wayne Henry was indicted by a federal grand jury in Anchorage for unlawful production of false identification documents which appeared to be issued under the authority of the United States.

Henry, 41, of Kenai, Alaska, is the sole defendant named in the one-count indictment, together with one forfeiture allegation.

According to the indictment, Henry illegally produced numerous false identification documents which appeared to be issued by federal agencies.  The fake IDs reflected Henry’s photo, but the names and personnel identifiers of other individuals.  Some of the fake IDs were also in Henry’s own name.  They consisted of ID cards for the FBI, the CIA, the Department of Defense, the U.S. Marine Corps, and the Department of Veterans Affairs. 

Assistant U.S. Attorney Yvonne Lamoureux, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of up to 15 years in prison, a fine of up to $250,000, or both.  In addition, the forfeiture allegation seeks forfeiture of the following property: 30 common access cards with microchips, 500 common access cards without microchips, hologram stickers, notary seals, laminating materials, printers, laminator, and electronic media.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

“Creating false identification documents is a serious crime all by itself, but making false law enforcement and official government identifications raises the potential for harm to another level” said Kevin R. Feldis, First Assistant U.S. Attorney and Criminal Division Chief for the District of Alaska. “The FBI responded quickly to seize the fake ID cards and will continue to investigate this case.”

The FBI 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 25-count indictment was unsealed alleging 12 defendants are part of a local Anchorage gang that engaged in drug trafficking, firearms possession, and money laundering crimes.  The indictment further alleges that the gang members were affiliated with the Campanella Piru Park Bloods in Compton, California, and that they used firearms to protect the gang, as well as its Fairview “turf.”  It is the first indictment in Alaska that alleges the presence of a nationally recognized street gang. 

The indictment alleges that members of the “Fairview MOB” would obtain controlled substances in the Los Angeles area and distribute them in Alaska.  The drugs being sold included heroin, cocaine and crack.  The indictment further alleges several members of the “Fairview MOB” are affiliated with “All Da Time Ent.,” “Zaya’s First Class Entertainment,” and/or “YNE,” entities that purport to produce, perform and promote rap artists and music.  Videos and photographs on social media websites show various members taking part in the conspiracy’s activities, such as gun violence and drug trafficking.  It is alleged that the conspiracy’s illegal activities attempt to give credibility to the members rap music endeavors.

Indicted were the following individuals:

Isaiah Holloway a/k/a “Z,” 26, from Anchorage, Alaska; Lamont Moore, a/k/a “Moose,” 36, and Dearon Walton a/k/a “Mitch,” 25, both originally from Los Angeles; Ishmael Holloway a/k/a “Ish,” 23; Dorian Topps a/k/a “Fairview Money,” 22; Michael Reynold a/k/a “Boogie,” 23; Felton Reynold Jr. a/k/a “Fairview Jun,” 27; Christopher Meeks a/k/a “Thugga,” 22; Malia Green, 21; Delano Williams a/k/a “D,” 25; and Karl Maddox, Jr. a/k/a “P,” 25, all from Anchorage, Alaska.

According to the indictment, the conspiracy’s activities date back to at least 2012, when several conspirators were stopped by police and found to be in possession of firearms.  The indictment alleges that various gang members were involved in 18 separate drug sales as well as numerous instances of illegal firearms possession and use.  In one incident, alleged to have occurred on May 18, 2015, the indictment states that Isaiah Holloway and Lamont Moore possessed a firearm, which Moore used to shoot a rival gang member because the victim was in “Bloods” territory in the Fairview neighborhood of Anchorage.  The indictment alleges that this conduct is consistent with the methods of the gang members “to promote the reputation of the ‘Fairview MOB,’ as well as to protect and defend its members and ‘turf’ from other gangs and threats.  The members of the conspiracy engaged in drug trafficking, money laundering, and firearms possession and use, among other crimes.  The purpose of these crimes was to promote the continued existence of the ‘Fairview MOB’ by supporting its members financially, which the members called ‘get[ting] money.’”

Several of the members of the gang have been charged in Alaska State court with crimes including murders, assaults, and firearms possession and use.  State and federal authorities have been coordinating their investigations of the defendants since January, when there were several shootings and murders in Anchorage.  The Anchorage Police Department devoted extra resources to investigate the uptick in violence, which was believed to have been drug-related.  Later, the FBI’s Safe Streets Task Force continued the investigation.  The FBI Anchorage Safe Streets Task Force is made up [of] FBI Special Agents, Anchorage Police Department Officers, U.S. Coast Guard Investigative Services Agents, Internal Revenue Service investigators, U.S. Postal Service Inspectors and the Bureau of Alcohol, Tobacco, Firearms and Explosives special agents. 

First Assistant U.S. Attorney Kevin R. Feldis praised the investigation leading to these arrests, and stated, “Our community must not fall victim to gang violence.  In this case, federal, state and local law enforcement worked together to investigate, disrupt and arrest those alleged to be responsible for an ongoing series of dangerous crimes.  The federal indictment sends a strong message that those who traffic and sell drugs, illegally possess guns, and engage in violent criminal acts in our neighborhoods will be held accountable.”   Mr. Feldis also thanked the Anchorage District Attorney’s Office for its cooperation, as well as the Municipality of Anchorage.  The Municipality has partnered with the U.S. Attorney’s Office since 2007 to address gang crimes by supplying prosecutorial resources to the U.S. Attorney’s Office, and an Anchorage municipal prosecutor assisted in the investigation and the indictment of the Fairview MOB. 

On Wednesday morning, members of the FBI Safe Streets Task Force, assisted by the DEA, ATF, IRS, APD, AST, and U.S. Marshals Service, executed a number of arrest warrants and served search warrants at six different locations.   Agents seized large amounts of cash, guns, drugs, and evidence of gang membership during the search warrants. 

Ten of the twelve defendants are currently in custody and are awaiting court appearances before a United States Magistrate Judge.   Delano Williams, a/k/a “D,” of Anchorage, and Dearon Walton, a/k/a “Mitch,” of Los Angeles, are not yet in custody.   Anyone having information about their whereabouts can call FBI Anchorage Division at 907-276-4441 or Crime Stoppers at 561-STOP to provide information. 

“We were able to get a lot of dangerous people off the street today,” said FBI Special Agent in Charge, Deirdre Fike.  “And that’s a testament to the dedication of our Safe Streets Task Force members.” 

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 December 8, 2015, Michael Anthony Welker, 52, Shane Christopher Widmyer, 34, David Alan Vest, 39, all residents of Ketchikan, Alaska, pled guilty in federal court in Juneau to violating the Lacey Act by illegally transporting halibut that was caught for subsistence and sport purposes.

Each defendant pled guilty to a single count of a Lacey Act violation before United States Magistrate Judge Leslie Longenbaugh.

According to the information presented to the court by Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, Donald Ray Thornlow, 66, the former owner and operator of the former Narrows Inn and Restaurant in Ketchikan, Alaska, took part in a continuing scheme of knowingly purchasing subsistence and sport caught halibut for resale in his restaurant, a violation of federal regulations.  Defendants Welker, Widmyer, and Vest illegally harvested halibut for a commercial purpose using sport fishing licenses and subsistence halibut permits.  The defendants subsequently transported the illegally caught halibut and sold it to Thornlow who then sold the fish in his restaurant.  The defendants were not allowed to catch halibut for a commercial purpose because none of the defendants possessed a valid Individual Fishing Quota (IFQ) permit.  The defendants each admitted to transporting a portion of the 997 pounds of illegally-caught halibut sold by Thornlow in his restaurant from January 2012 to December 2013.  Under the terms of the plea agreement, Vest will pay a $5,000 fine, Welker and Widmyer will pay a $3,500 fine and all defendants will be sentenced to a term of probation for three years.  Thornlow was previously sentenced to a one year term of probation starting on October 19, 2015, and ordered to pay a $5,000 fine.

Prior to imposing the sentences, Magistrate Judge Longenbaugh indicated the seriousness of the offense and the need to deter the defendants and others, as well as the need to protect Alaska fishery resources.

The National Oceanic and Atmospheric Administration, Office of Law Enforcement, Alaska Enforcement Division conducted the investigation leading to the charges and conviction in this case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Jason L. Wood and Lawrence L. Niesen, both of Wasilla, Alaska, were sentenced in federal court for their roles in a bank robbery which occurred on April 23, 2014, at a Key Bank branch in Wasilla.  Wood, age 35, and Niesen, age 39, had earlier pleaded guilty to planning and then committing the unarmed robbery.   Wood, who actually entered the bank and demanded money from a teller, was sentenced to 36 months in federal prison.  Niesen, who acted as a “getaway” driver following the robbery, received 32 months in federal prison for his role.  Both men were also ordered to make restitution to Key Bank in the amount of $1,604.00.

In imposing the sentences on the two men, Chief United States District Court Judge Ralph R. Beistline noted that both men had significant heroin addiction problems which appeared to be the impetus for the robbery.  Referring to the prevalence of heroin addiction in the Anchorage and Mat-Su Valley areas as a “scourge”, Judge Beistline noted that drug addiction in general appears to be an increasing cause of these types of crimes.

Ms. Loeffler commends the Federal Bureau of Investigation and the Wasilla Police Department for the investigation of this case.

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Palmer man has been sentenced by United States District Court Judge Timothy M. Burgess to serve 16 months in prison for possessing a gun as a convicted felon.  

Jason Scott Freeland, 37, of Palmer, Alaska, previously pled guilty to possessing a loaded .45 caliber/.410 gauge Derringer pistol.  At the time that he possessed the firearm, Freeland had already amassed a felony record, including four convictions in 2001 for assault and misconduct involving a weapon.  He was therefore prohibited from possessing firearms at the time he was stopped by police.  Upon being released from prison, Freeland will be on supervised release for three years.

According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case along with Special Assistant United States Attorney Erin Bennett, Freeland was first encountered by police officers in the early morning hours of April 24, 2015.  At the time, Freeland was slumped over inside an SUV and appeared noticeably incoherent.  He had trouble locating the door handle of his vehicle, had difficulty producing his driver’s license, had slurred speech, and found it difficult to walk.   

When officers searched Freeland, they found a loaded pistol in his pants pocket along with a small amount of methamphetamine.  They also found a set of brass knuckles in another pants pocket.  Later blood tests revealed that Freeland was high on marijuana and methamphetamine. 

During the sentencing hearing, Judge Burgess raised concerns about Freeland’s past, calling the defendant dangerous and noting that he had to craft a sentence that protected the public from Freeland’s potentially violent behavior.  He also noted the seriousness of the offense and need for deterrence.  Freeland’s previous felony convictions stem from a 2001 incident in which Freeland fired a .45 caliber semi-automatic pistol at both a house and a vehicle that he knew had people inside.

In announcing the sentence, Ms. Loeffler commended the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Anchorage Police Department (APD), who investigated the case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a cable TV hunting show host and four other individuals charged in the investigation have pleaded guilty and have been sentenced in Anchorage United States District Court for their participation in a multi-year poaching operation on the Noatak National Preserve. 

On November 23, 2015, Syndicate TV show host Clark W. Dixon, 41, of Hazlehurst, Mississippi, pleaded guilty before the Hon. Ralph R. Beistline, Chief United States District Court Judge, to two felony violations of the Lacey Act for his role in the illegal take of a brown bear. The take involved a number of violations of hunting laws including same day airborne, hunting without proper non-resident tags and permits, and the illegal transporting and outfitting of non-resident hunters.  The charges involved actions from 2008 through 2014 in the Noatak National Preserve. 

Along with the agreement to plead guilty, Clark Dixon has also agreed to a sentence of 18 months in prison, a fine of $75,000, and forfeiture of 17 trophies including grizzly bear, Dall sheep and caribou, along with bows and several rifles used in the illegal take of game in Alaska.  As part of his plea of guilty, Clark Dixon agreed that in 2009 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 not to contest 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.  Clark Dixon’s sentencing has been set for February 12, 2016, in Anchorage.

Following Clark Dixon’s change of plea, his father, Charles W. 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 has forfeited his STOL Quest SQ-4 to the government as the aircraft was used to transport hunters, and illegally taken game in and out of the Preserve.

In other related cases, and on November 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 and on a hunt arranged by Clark Dixon.  Osborne killed the grizzly bear 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 $16,000.  Osborne was also required to forfeit a grizzly bear mount, bull moose mount, three caribou mounts and a .375 H and H rifle and scope used to commit the crimes.  Osborne is also required to issue a public service announcement to various hunting publications about his illegal acts. 

Fulton Wold, 41, of Nashville, Tennessee, also 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 received a sentence of two years probation, 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 November 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 $7,500 fine.

Footage from Osborne, Wold’s and Goza’s hunts were shown on Clark Dixon’s cable TV hunting show “The Syndicate.”

Citations from the National Park Service for conducting filming operations on the Noatak Preserve without a permit were also issued to The Outdoor Syndicate, LLC, in Reno, Nevada, its owner Michael P. Dianda, and an editing studio, Zap Lab, Ltd, in Reno, Nevada.  The citations were issued due to the failure of Clark Dixon and another professional videographer to acquire footage for and used on The Syndicate without first obtaining a permit to commercially film on the Preserve.  All have paid their fines in connection with the case.  Defendants Shannon Dale Hooks, 54, of Mendenhall, Mississippi, and Lance David Walker, 37, of Baton Rouge, Louisiana, have changes of plea set for December 3, 2015.  Defendant Randall Goza, 48, of Wasilla, Alaska, has entered a plea of not guilty and his case is set for trial.

Robert Viner has been cited in Mississippi by the investigation for the illegal transport of an unlawfully taken brown bear.  Viner has admitted guilt in connection with the charges, and has paid a $3250 fine.

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

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that two men have been sentenced by United States District Court Judge Sharon L. Gleason to serve 96 and 120 months in prison respectively for their roles in a conspiracy to sell large quantities of cocaine and methamphetamine to Alaska-based drug dealers. 

Jorge Armando Zaragoza-Soto, a citizen of Mexico, and Geronimo Arellano Velarde, a/k/a “Negro,” of California, both previously pled guilty to conspiring with others to distribute methamphetamine.  Zaragoza-Soto also pled guilty to conspiring to distribute cocaine.  Together, the two men were personally responsible for the distribution or attempted distribution of nine pounds of methamphetamine and five kilograms of cocaine to Alaska based co-conspirators.  Zaragoza-Soto separately admitted storing an additional ten pounds of methamphetamine on behalf of other California and Mexico-based drug dealers.   Upon being released from prison, both men will be on supervised release for five years.

According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, the conspiracy began in February 2013 and continued until both men were indicted in October 2014.  During the course of the conspiracy, both Zaragoza-Soto and Velarde engaged in multiple drug transactions. 

For example, in October 2013, after receiving cash from an Alaska-based co-conspirator, Zaragoza-Soto mailed five pounds of methamphetamine and five kilograms of cocaine from an address in Colton, California to an address in Anchorage.  The drugs were later seized by law enforcement, which found Zaragoza-Soto’s fingerprints on the inside of the materials used to package and ship the drugs.  Later, in July 2014, Velarde personally delivered an additional four pounds of methamphetamine to an undercover agent posing as an Alaska drug distributor.  In exchange for the drugs, Velarde accepted $20,000 in cash from the agent.

During the sentencing hearings, Judge Gleason raised concerns about the large quantity of methamphetamine and cocaine involved in the conspiracy, noting that crimes like this are ruining the lives of hundreds of families here in Alaska and wreaking havoc throughout our state.  Judge Gleason also emphasized the importance of handing down sentences that addressed the seriousness of the defendants’ offense, promoted respect for the law, and protected the community from future crimes committed by the men. 

The two sentencing hearings are 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; and

• Genaro Gutierrez-Reyes, of California, previously sentenced to 18 months in prison for laundering drug money out of the United States and into Mexico

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 that a Kodiak man was sentenced in federal court in Anchorage for one count of trafficking narcotics.  Teodoro Berdan, 55, of Kodiak, Alaska, had previously pled guilty on July 20, 2015, to one count of possession with intent to distribute over 100 grams of a mixture and substance containing methamphetamine.

Berdan was sentenced today by United States District Court Judge Sharon L. Gleason, to 60 months in prison.

According to Assistant U.S. Attorney Bryan Schroder, in early February 2015, the U.S. Postal Inspection Service intercepted a package addressed to Teodoro Berdan in Kodiak.  The package contained over 100 grams of methamphetamine.  The Postal Inspectors replaced the bulk of the methamphetamine with a small, representative sample of meth, and a larger amount of a sham substance.  The Postal Service then delivered the package to the residence in Kodiak where Berdan rented a room.  Soon after the package was delivered, Postal Inspectors, supported by FBI agents and officers from the Kodiak Police Department, entered Berdan’s room and discovered him hiding the now-open box of drugs.  Berdan later admitted he intended to distribute the drugs. 

Ms. Loeffler commends the U.S. Postal Inspection Service, the FBI, and the Kodiak Police Department for the investigation of this case.  Seattle Division Inspector in Charge, Anthony Galetti, of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement in Alaska and Guam on this investigation and will continue to vigorously protect the U.S. Mail and U.S. Postal Service employees and customers against all forms of criminal attack and misuse.”

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was indicted by a federal grand jury in Anchorage for bank robbery and using a firearm during a crime of violence in connection with the robbery of Credit Union 1 on August 7, 2015.

Wayne Michael Sexton, 45, of Wasilla, Alaska, was indicted by the grand jury on one count of bank robbery and one count of using a firearm during and in connection with a crime of violence.  Sexton, who has been in custody for the robbery since November 9, 2015, is currently detained in the Anchorage jail without bail.  Sexton has a prior conviction for the same crimes from 1999.

According to Assistant U.S. Attorney Steven E. Skrocki, Sexton was charged with robbing Credit Union 1, and during the robbery obtained more than $17,000 in bank funds.  During the robbery, Sexton carried and brandished a revolver, which he used to threaten and intimidate bank personnel thus leading to the weapons crime charge.

An arraignment date has not been set.

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

Ms. Loeffler commends the FBI for the investigation of this case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage couple was sentenced for drug distribution and money laundering by the United States District Court Judge Sharon L. Gleason.  The couple was indicted by the federal grand jury in Anchorage for drug distribution and money laundering of drug proceeds over a several year period.  A third defendant has recently been arrested in Oregon and remains in custody there.

The Anchorage couple, Billy Ray Lang, Sr., 62, and Tynisha Jean Merriouns, 34, were arrested in January last year after the federal grand jury returned a four count indictment charging them with conspiracy to distribute controlled substances, money laundering conspiracy, possession with intent to distribute and criminal forfeiture of $40,000 in cash seized by investigators during a search of their home.

Billy Ray Lang, Sr. was sentenced to seven years in prison and to forfeit $40,000 in cash.  Tynisha Merriouns was sentenced to four years in prison and was required to forfeit $40,000 in cash and Postal Money orders.  Both Lang, Sr., and Merriouns pled guilty to conspiring to distribute heroin and methamphetamine, and conspiracy to launder drug proceeds from that conspiracy from December 2013 through October 2014.  A third co-conspirator, Billy Ray Lang, Jr., has been arrested in connection with the indictment in the Lower 48 and is awaiting transport to Alaska to face the charges.          

Ms. Loeffler commends the Anchorage Police Department and the IRS for the investigation of this case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Pepe Anetipa has been sentenced by United States District Court Judge Sharon Gleason to serve 30 months in prison for filing false tax returns that cheated the United States Treasury out of more than $2 million.

Anetipa, originally of American Samoa and now a resident of Washington, previously pled guilty to 28 counts of making false, fictitious, and fraudulent claims against the government.  As part of her plea, Anetipa admitted filing false tax returns on behalf of residents of American Samoa claiming thousands of dollars in refunds to which they were not entitled. 

Upon being released from prison, Anetipa will be on supervised release for three years.  As part of her sentence, she was ordered to pay restitution to the United States Treasury in the amount of $202,859 – the total amount of refunds corresponding to the counts of conviction.  The overall amount of money paid out by the Treasury as a result of Anetipa’s scheme, however, was much higher – approximately $2 million.  As part of her sentence, Anetipa will also have to complete 40 hours of community service, which Judge Gleason recommended she spend focusing on educating others in American Samoa about the illegality of tax schemes like hers.

According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, Anetipa’s fraud scheme began in 2010 when she began filing false 2009 tax returns with the Internal Revenue Service (IRS).  She filed on behalf of residents of American Samoa, all of whom were not required to file tax returns with the IRS but were instead required to file with the taxing authority in American Samoa.  On each return, she falsely claimed that the IRS had withheld federal taxes from her clients and thus were due a refund.

In approximately July 2011, Anetipa moved from American Samoa to Anchorage, Alaska.  Once in Alaska, she obtained a State of Alaska business license and opened a tax preparation business –Triple-H Tax and Services.  Through her business, Anetipa continued to file false tax returns for residents of American Samoa.

Anetipa’s scheme was multi-faceted, involving much more than simply filling out a Form 1040.  Before completing the returns themselves, Anetipa first took information from Forms W-2AS (forms specific to residents of American Samoa) and used it to create false Forms W-2 claiming her clients earned money outside of American Samoa.  Anetipa also changed the addresses on the Forms W-2 to either a Texas or an Alaska address instead of addresses in Pago Pago, American Samoa.  The altered Forms W-2 gave the tax returns the false appearance that the income was earned in the United States and that Anetipa’s clients had federal tax withholding paid into the tax system.  In fact, no one earned any income in the United States, and there had been absolutely no withholding. 

After creating the false Forms W-2, Anetipa then transferred the information onto tax returns on which she claimed her clients were owed significant refunds.  In order to increase the refunds, Anetipa also encouraged her clients to find dependents to include on their returns.  The addition of dependents allowed taxpayers to claim that they were entitled to the Earned Income Tax Credit (EITC) even though they were in fact entitled to $0 from the United States Treasury.  According to testimony and evidence received at sentencing, the IRS ultimately linked Anetipa to the preparation and filing of hundreds of false returns that resulted in the payment of approximately $2 million in false refunds.  For her efforts, Anetipa was either paid a flat fee of $500 per false return or, later in the scheme, began splitting the refunds between her clients’ bank accounts and her own accounts, sometimes taking thousands of dollars from a single refund.

In sentencing Anetipa, Judge Gleason focused on the seriousness of the offense and the need to promote respect for the law.  She also noted the significant amount of money involved – more than $2 million – and found that greed had at some point become a factor in Anetipa continuing her scheme.  Judge Gleason rejected Anetipa’s argument that the fact that some of the money went to people in need in American Samoa justified stealing from the Treasury.  Ultimately, in announcing the 30-month sentence, Judge Gleason found it important to deter others in the future from committing similar crimes, stating that one way to achieve deterrence is to sentence offenders in a way that sends a message that these types of crimes will not be tolerated.  

“By filing these bogus tax returns, Pepe Anetipa effectively stole from each and every honest taxpayer,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation.  “Tax refund fraud is our top priority.   IRS CI is duty bound to track down anyone who prepares or files a false tax return claiming a refund to which they are not due.”

The case was prosecuted by Assistant U.S. Attorneys Stephanie Courter and Thomas Bradley of the U.S. Attorney’s Office for the District of Alaska.  The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Dr. Michael Brandner, 67, of Anchorage, Alaska, was convicted today of four counts of wire fraud and three counts of tax evasion by a federal jury sitting in Anchorage, Alaska.

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 he earned on those accounts from the court in the divorce proceedings and from the Internal Revenue Service (IRS).  Dr. Brandner owed the IRS $600,000 in additional taxes for the 2008 through 2010 tax years.  He presented the divorce court with a fabricated promissory note to mislead the court into believing he had invested over $3 million in the foreign corporation.

In 2011, Dr. Brandner repatriated over $4.6 million once the divorce was final only to have the funds seized by agents from Homeland Security Investigations.  He then lied to federal agents about his control of the funds.

Sentencing is scheduled for March 7, 2016, before U.S. District Judge Sharon Gleason, who presided over the trial of the case.  Dr. Brandner faces a statutory maximum sentence of 95 years in prison and a fine of up to $1.75 million.

“Michael Brandner thought he could operate above the law, but through the dedicated ‎efforts of IRS Special Agents together with the Department of Justice, this verdict shows that the law caught up with him,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation. "Let this case serve as a warning that the use of offshore schemes and other tax scams to evade tax and other lawful obligations will not be tolerated."

‎Ms. Loeffler thanked the special agents of IRS-Criminal Investigation and Homeland Security Investigations who investigated the case, and Assistant U.S. Attorney Bryan Schroder of the District of Alaska and Trial Attorney Ignacio Perez de la Cruz of the Tax Division who prosecuted the case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Adam Michael Cornelison, 26, resident of Anchorage, Alaska, pleaded guilty on Thursday, October 29, 2015, to possession of a firearm in furtherance of a drug trafficking offense in violation of 18 U.S.C. § 924(c). 

According to the plea agreement filed in the case, on the evening of November 8, 2014, Cornelison went to Fashion Nails nail salon on Muldoon Road in Anchorage, Alaska, to meet with co-defendant Toa Danh “Tony” Ly.  Also present at the meeting were co-defendants Robert Rast and Rennie Marie Davis.  The defendant was inside the studio with Ly, Rast, and Davis for approximately 45 minutes.

After the meeting, the police followed Cornelison’s vehicle as he drove away from the nail salon. When police attempted to stop Cornelison, he fled, leading police for several miles through Anchorage.  At the end of the pursuit, Cornelison attempted to evade police by driving in the wrong direction and up onto the sidewalk.  He was ultimately forced to a stop after an Anchorage police officer drove her car into the front of Cornelison’s vehicle, pinning his car between the police cruiser and a retaining wall. 

Located in the rear passenger seat of Cornelison’s car was approximately one pound of marijuana.  Also located in the vehicle under the front passenger seat was a Glock .40 caliber handgun that had been previously stolen.

This case was the product of an investigation by the Anchorage Federal Bureau of Investigation’s Safe Streets Task Force.  Assistant U.S. Attorney Kyle Reardon is prosecuting the case.  The Anchorage FBI Safe Streets Task Force (SSTF) is currently tasked with identifying and targeting for prosecution the most egregious violent offenders as well as criminal enterprise groups responsible for drug trafficking, money laundering, alien smuggling, crimes of violence such as murder and aggravated assault, robbery, and violent street gangs acts, as well as to intensely focus on the apprehension of dangerous repeat violent offenders.  The Anchorage SSTF full-time participants include the Federal Bureau of Investigation (FBI), Anchorage Police Department (APD), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Coast Guard Investigative Services (CGIS), and the U.S. Postal Inspection Service (USPIS) who were all active participants in the case matter.  In addition, the SSTF initiative is employed throughout Alaska with participants from the Kodiak Police Department, Kenai Police Department, Juneau Police Department, and Ketchikan Police Department.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a drug dealer and leader of a mail theft ring in Anchorage was sentenced on 16 counts of fraud, drug distribution, and being a felon in possession of a firearm. 

Jonathan Ortiz Escalante, aka “Superman,” 45, of Anchorage, Alaska, was sentenced today by Chief United States District Court Judge Ralph R. Beistline to 14 years in prison. 

According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, Escalante aka “Superman” was the leader of a mail theft ring in Anchorage.  Escalante solicited addicts and homeless people to steal mail and break into vehicles to get checks and identification cards that he then altered and used to cash stolen and counterfeit checks.  Escalante also used stolen credit cards and forged counterfeit securities, as well as stolen vehicles to carry out his scheme.  Escalante distributed methamphetamine to addicts in exchange for stolen mail and cashing stolen checks.  Escalante sold large quantities of methamphetamine in Anchorage and possessed and fired two different Ruger 9mm pistols during the course of his scheme.  Escalante was prohibited from possessing a gun because of a prior felony conviction.  

Judge Beistline stated that the 14-year sentence was appropriate because the defendant had carried out a “decade of criminal activity” and the defendant’s drugs, guns and fraud were a “danger to the community.” 

Four of Escalante’s co-conspirators that he recruited to steal mail and cash stolen checks have been convicted and sentenced including Neasha Moore, John Brittain, Ralph Oliver and Denae Sullivan.

Ms. Loeffler commends the U.S. Postal Inspection Service, the ATF, the FBI Safe Streets Task Force and APD for the investigation of this case.

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a father and son from Wrangell, Alaska were arraigned and pled guilty in Juneau federal court to charges related to violations of the Lacey Act while fishing for halibut in the Gulf of Alaska.

Charles “Chuck” J. Petticrew Sr., 70, and Charles “Jeff” J. Petticrew Jr., 42, residents of Wrangell, Alaska, were charged by information with offenses related to Lacey Act violations.  Both defendants appeared before United States District Court Judge Timothy M. Burgess who took the defendant’s guilty pleas.  Between June 28, 2010, and continuing until May 20, 2013, Petticrew Sr. and Petticrew Jr. conspired to falsify fishing locations on Alaska Department of Fish and Game (ADF&G) Longline Fishery Logbook entries, IFQ landing permits, and ADF&G Halibut Tickets indicating that they fished in Management Area 3A, when in fact, they had only fished Management Area 2C.  Petticrew Sr., pled guilty to a single felony count of conspiracy to falsify Individual Fishing Quota (IFQ) records.  Petticrew Jr., plead guilty to a single misdemeanor count for violating the Lacey Act by falsifying IFQ records during the same time period.  Judge Burgess set sentencing for both defendants on January 4, 2016.

Assistant U.S. Attorney Jack S. Schmidt, who is prosecuting the case, indicated that the law provides for a maximum sentence of five years in prison, a fine up to $250,000, or both, for the charges related to Petticrew Sr. and a year in prison, a fine up to $100,000, or both, for the charges related Petticrew Jr.

Both defendants have signed plea agreements with the government, in which the government and the defendants agree to jointly recommend to the court that Petticrew Sr. pay a fine of $90,000 and Petticrew Jr. will pay a fine of $10,000, for a total combined fine of $100,000 to pay.  The agreement further recommends that Petticrew Sr. and Jr. be placed on probation for a period of five years and during their probation period, both agree to install and pay for a Vessel Monitoring System (VMS) for the vessel used by the defendants or any other vessel who is fishing on behalf of the family corporation.  The recommendation is subject to the approval of the court at sentencing.

The National Oceanic and Atmospheric Administration, Office of Law Enforcement, Alaska Enforcement Division conducted the investigation leading to the charges in this case.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that the former Finance Director of the Alaska Inter-Tribal Council (“AITC”), a non-profit organization which advocates in support of tribal governments throughout Alaska, was sentenced in federal court in Anchorage to five years of probation, with a requirement that he serve 120 days of community confinement, for his theft of funds belonging to the organization.  Thomas R. Purcell, 52, of Anchorage, who served as the Finance Director of AITC from January 2008 until February 2009, admitted to stealing or misappropriating approximately $22,270 in AITC funds while he served in that capacity.  Purcell was also ordered to pay $22,270 to AITC in restitution, and was fined an additional $15,000 by United States District Judge Sharon L. Gleason. 

According to Assistant U.S. Attorney Joseph Bottini, AITC received substantial federal funding in 2008 and 2009 – including a federal grant from the United States Environmental Protection Agency of in excess of a million dollars.  As the Finance Director, Purcell was responsible for managing all of AITC=s financial accounts, including account reconciliation, and payroll operations.  The investigation established that Purcell was able to steal the funds through an unauthorized salary increase.

Purcell was indicted by a federal grand jury in August 2013 together with co-defendant Steven Osborne, the former Executive Director of AITC.   Purcell pled guilty in April 2015 to one count of Theft from an Organization Receiving Federal Funds.  Osborne also pled guilty to one count of stealing approximately $145,000 from AITC, and on October 22, 2015, he was sentenced to 21 months in prison by United States District Judge Sharon L. Gleason.  Purcell, who had cooperated with the government during the investigation and subsequent prosecution, received a reduced sentence in recognition of his cooperation. 

Two individuals associated with AITC addressed the court at Purcell’s sentencing and noted that as a result of the thefts committed by Osborne and Purcell, AITC became ineligible for further federal funding because the organization was considered “high risk”.  Without federal funding, AITC was basically rendered a defunct organization, and it remains so today.

Ms. Loeffler commends the U.S. Environmental Protection Agency, Office of Inspector General and the Federal Bureau of Investigation for the investigation of this case.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that the former Executive Director of the Alaska Inter-Tribal Council (“AITC”), a non-profit organization that advocates in support of tribal governments throughout Alaska, was sentenced in federal court in Anchorage to 21 months in prison for his theft of funds belonging to the organization.  Steven D. Osborne, 44, of Fairbanks, Alaska, who served as the Executive Director of AITC from December 2007 until February 2008, admitted to stealing approximately $145,000 in AITC funds while he served in that capacity.

According to Assistant U.S. Attorney Joseph Bottini, AITC received substantial federal funding in 2008 and 2009 – including a federal grant from the United States Environmental Protection Agency of in excess of a million dollars.  As the Executive Director, Osborne had access to AITC bank accounts and credit and debit cards issued to him by the organization.  The investigation established that Osborne was able to steal the funds through a number of different ways, including cash withdrawals, checks written to himself, credit and debit card transactions, and the submission of false time cards.

Osborne was indicted by a federal grand jury in August 2013, and pled guilty in April 2015 to one count of Theft from an Organization Receiving Federal Funds.  Several individuals associated with AITC addressed the court at sentencing and noted that as a result of Osborne’s thefts, AITC became ineligible for further federal funding because the organization was considered “high risk”.  Without federal funding, AITC was basically rendered a defunct organization, and it remains so today.

In imposing the 21 month sentence, United States District Judge Sharon L. Gleason noted the catastrophic results which Osborne’s actions caused to AITC.  In addition to the prison sentence, Osborne was directed to pay $145,000 in restitution to AITC, and was further directed to forfeit the same amount of money.

Ms. Loeffler commends the U.S. Environmental Protection Agency, Office of Inspector General and the Federal Bureau of Investigation for the investigation of this case.

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage man, Timothy George Alex, has been sentenced by United States District Judge Sharon Gleason to serve 108 months in prison for his role in a conspiracy to sell large quantities of cocaine and heroin.  Upon being released from prison, Alex will be on supervised release for five years.

Timothy George Alex, 52, of Anchorage, Alaska, previously pled guilty to conspiring with others to distribute both cocaine and heroin.  As part of his plea, Alex admitted that he worked with his co-conspirators to sell both cocaine and heroin for profit. 

According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, Alex and his partner sold cocaine and heroin on behalf of a local Anchorage drug supplier.  They routinely acquired the drugs from their supplier “on credit” and then later repaid their source using cash earned from the sale of the drugs.  During the course of the conspiracy, Alex was linked to the sale of approximately four kilograms of cocaine and nearly a kilogram of heroin. 

Alex was also linked to large amounts of cash earned from the sale of drugs – more than $80,000 in total – that he either paid or attempted to pay back to his drug supplier.  During the pendency of the investigation, law enforcement seized these funds, and, as part of his guilty plea, Alex agreed to forfeit them to the United States.

During the sentencing hearing, Judge Gleason noted that Alex’s drug trafficking involved a significant quantity of cocaine as well as a sizeable amount of heroin.  She also found it troubling that Alex had engaged in this drug trafficking conspiracy just months after being released from custody for a previous drug trafficking crime.   In announcing the sentence, Judge Gleason specifically focused on the need to promote respect for the law and the need to protect the community.

Alex’s sentencing 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.  An Anchorage drug distributor, Daniel Harris, was sentenced in July 2015 to serve 135 months in prison for related drug, guns, and money laundering crimes.   A Texas man, Jose Ramon Canales, was previously sentenced to serve 70 months in prison for his efforts to launder drug proceeds out of the United States and into Mexico.  Canales’ co-defendant, Genaro Gutierrez-Reyes, was sentenced to 18 months for his participation in the international scheme.  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 that an Anchorage man was sentenced in federal court in Anchorage for selling cocaine and crack.

Darryl Dewayne Mitchell, 31, of Anchorage, Alaska, was sentenced today in Anchorage by U.S. District Judge Timothy M. Burgess.  Mitchell received a sentence of 60 months of imprisonment followed by a five year term of supervised release.  On July 30, 2015, Mitchell pled guilty to five counts of distributing controlled substances – namely, cocaine and crack.

According to Special Assistant U.S. Attorney Erin Bennett, in January and February 2015, Mitchell sold cocaine and cocaine base to an undercover Anchorage Police Department detective five times.  Mitchell ultimately sold a total of 91.27 grams of crack and 1.76 grams of cocaine.  When law enforcement officers arrested Mitchell, they seized $4,516 in U.S. currency as well as a Cadillac and a firearm.  These items derived from the sale of narcotics and Mitchell forfeited them to the United States as part of his plea.

In sentencing Mitchell, Judge Burgess noted the seriousness of the crimes, the need to deter future criminal conduct by Mitchell and others, and the need to protect the public as reasons for the sentence he imposed.

Ms. Loeffler commends the Anchorage Police Department and the Department of Homeland Security who conducted the investigation leading to the successful prosecution in this case.  Special Assistant U.S. Attorney Bennett is a prosecutor in the U.S. Attorney’s Office who is funded by the Municipality of Anchorage to prosecute violent crime and drug cases.

Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that an Anchorage man has been sentenced by United States District Judge Timothy M. Burgess to serve 120 months in prison for selling crack cocaine while in possession of a firearm.

Larry Aron Meeks, Jr., 25, of Anchorage, Alaska, previously pled guilty to conspiring with others to sell significant quantities of crack cocaine for profit.  As part of his plea, Meeks admitted selling crack cocaine on multiple occasions.  He also admitted that, on one such occasion, he possessed a firearm in support of his drug business.  Upon being released from prison, Meeks will be on supervised release for five years.

According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, in 2014 Meeks sold crack cocaine to a confidential informant who was working for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  First, in April 2014, Meeks sold the informant 13.1 grams of crack cocaine.  Approximately one month later, Meeks again sold crack cocaine to the informant, this time selling him 44.8 grams of crack cocaine in exchange for $3,750 in cash.  During that deal, Meeks had a .40 caliber handgun strategically placed on top of the refrigerator in his kitchen where the deal took place.

Finally, in June 2014, during the execution of search warrants at Meeks’ residence, Meeks was found in possession of still more drugs, drug paraphernalia, and multiple firearms.  Meeks had two guns in his bedroom next to more than $4,500 in cash.  Agents recovered additional firearms in other locations, – one of which was loaded with a round in the chamber, digital scales, multiple cell phones, and a Coca-Cola bottle that had been modified to contain a hidden compartment.  Inside the bottle, Meeks had stored bags of crack cocaine and heroin.

During the sentencing hearing, Judge Burgess focused on the seriousness of Meeks’ offenses as well as the need to protect the public from future crimes and the importance of deterring others from committing similar crimes.

In announcing the sentence, U.S. Attorney Loeffler praised the work of the law enforcement agencies involved in investigating the case, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), and Homeland Security Investigations (HSI).

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was indicted by a federal grand jury on four charges of bank robbery.

Gregory L. Cannon, 48, of Anchorage, Alaska, was named as the sole defendant in the Indictment.

Cannon was charged with the robbery of Northrim Bank on September 19, 2015, an attempted bank robbery of First National Bank on September 23, 2015, the robbery of a different branch of Northirm Bank on September 23, 2015 and the robbery of Credit Union 1 on September 28, 2015.

The FBI 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 Michigan man was sentenced in Federal Court in Anchorage for making numerous false statements, identity theft and engaging in a scheme to operate fake charitable organizations.

Alan Michael Bartlett, 46, of Owosso, Michigan, was sentenced by Chief United States District Judge Ralph R. Beistline to 13 years in prison and five years of supervised release for two counts of mail fraud, 20 counts of bank fraud, five counts of wire fraud, five counts of false statements to the U.S. Postal Service, and five counts of aggravated identity theft.  Bartlett was convicted by a jury on July 27, 2015.  

According to Assistant U.S. Attorney Retta Randall, who prosecuted the case, and the evidence presented at trial, Bartlett had established two businesses, United States Disabled Veterans, LLC, and United States Handicapped-Disadvantaged Services, LLC, whose alleged mission was “to help provide real jobs for disabled & disadvantaged Americans.” The companies claimed to sell products for donations, the orders for which would “provide jobs for the handicapped.”  There were no “jobs,” and the donations received did not go to veterans or the disabled and disadvantaged.  Instead, these companies were used by Bartlett between December 2009 and December 2012, in a scheme to defraud individuals and financial institutions in Alaska and elsewhere, and obtain additional monies belonging to individual donors.

The evidence at trial showed that Bartlett solicited donations through telemarketing calls and through the mailing of brochures from his companies. Upon the receipt of small donations by check, Bartlett created counterfeit demand drafts using information printed on the solicited checks, including the financial institution name, financial institution routing number, and associated customer account number. He then negotiated the counterfeit demand drafts via fraudulent electronic payment transactions for his personal financial gain and benefit - investing in his E*Trade accounts, paying credit card bills, paying for Verizon Wireless telephone service, and paying on his defaulted student loan with the United States Department of Education.  He also submitted forged power of attorney forms with falsified notary seals to the financial institutions in an effort to get transactions that had been reversed by the financial institution for fraud, credited back to him.

Bartlett used personal identifying information obtained from people who sent donations thinking they were giving to charitable organizations, to submit false change of address requests to the United

States Postal Service.  He forged the signatures on the change of address requests and listed the street address of his residence in Owosso, MI, as the forwarding address. As a result, he received investment and financial information which should have gone directly to donors/victims.

Using the fabricated persona of a municipal law enforcement detective, Bartlett contacted one victim by telephone to dissuade the victim from reporting or providing additional information about Bartlett’s scheme to law enforcement.

Bartlett learned about the telemarketing business and obtained donor call lists when employed by telemarketing companies in Arizona in 2008; those companies were shut down in 2009 by the Federal Trade Commission for making false representations that they were charities and that donations/purchases would go to help handicapped or disabled people

Prior to imposing sentence, Judge Beistline stated that Bartlett was “truly a danger to the community.”  Bartlett preyed on “the innocent, the elderly, and the ill, and showed no remorse.”  Bartlett had attempted to obtain the pension benefits of an elderly man with Alzheimer’s and to access a bank account of another with dementia. 

Ms. Loeffler commends the U.S. Postal Inspection Service for the investigation of this case.  Anthony Galetti, Inspector in Charge of the U.S. Postal Inspection Service stated, “Today’s sentencing shows that any criminals who use the U.S. Mail to commit fraud will be caught and prosecuted.  All of our fraud cases are important; however, instances like this case when the fraudster chose victims who are elderly are a priority for Postal Inspectors.”

Anchorage, Alaska - United States Attorney Karen Loeffler announced today that on October 19, 2015, Donald Ray Thornlow, a former resident of Ketchikan, Alaska, pled guilty in federal court in Juneau to violating the Lacey Act by commercially purchasing halibut that was caught for subsistence and sport purposes.

Thornlow, 66, pled guilty to a single count of a Lacey Act violation before United States Magistrate Judge Leslie Longenbaugh.

According to the information presented to the court by Assistant United States Attorney Jack S. Schmidt, who prosecuted the case, from January 2012 to about December 2013, Thornlow, the owner and operator of the former Narrows Inn and Restaurant in Ketchikan, Alaska, took part in a continuing scheme of purchasing subsistence and sport caught halibut for resale in his restaurant, a violation of federal regulations. Thornlow pled guilty to purchasing at least 997 pounds of illegally-caught halibut from three sources. Thornlow paid the three fishermen significantly less than he would have paid for legally-harvested halibut.  Under the terms of the plea agreement, Thornlow will pay a $5,000 fine and be placed on probation for one year.

Prior to imposing sentence, Magistrate Judge Longenbaugh highlighted the seriousness of the offense and the need to deter the defendant and others, as well as the need to protect Alaska fishery resources as the reasons for imposing the sentence.

The National Oceanic and Atmospheric Administration, Office of Law Enforcement, Alaska Enforcement Division conducted the investigation leading to the charges in this case.

Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that Daniel Alan Brown, 34, of Anchorage, Alaska, was sentenced today by United States District Judge Sharon L. Gleason to 15 years in prison, to be followed by a lifetime period of supervised release, for distribution of child pornography in violation of 18 U.S.C. § 2252(a)(2). 

According to court documents and arguments made during today’s sentencing hearing, starting in 2006, the defendant began working as a substitute teacher for the Anchorage School District.  In 2010, the defendant started working as a teacher’s assistant at Huffman Elementary. 

After purchasing a computer in 2005 and starting work in the schools in 2006, the defendant began collecting images of child pornography online.  In July 2014, the defendant began trading images with an undercover police detective in New Zealand.  Based on a lead from the New Zealand Police Department, law enforcement obtained a search warrant for the defendant’s residence in November 2014.

The defendant’s computer was seized and searched.  Located on the computer were more than 40,000 images and videos of child pornography.  Many of these images and videos showed prepubescent males being sexually abused.  Also located on the defendant’s computer were non-pornographic images of Anchorage-area children that he had recovered from various sources, to include publicly-available Facebook posts.  In some instances, the defendant used these non-pornographic images as an avatar for file-sharing accounts through which he traded child pornography.  At other times, the defendant posted these non-pornographic photographs on the file-sharing site and sought comments about the images from other traders of child pornography.  These comments frequently included graphic descriptions of various sexual acts the defendant and others sought to perform on the children depicted in the pictures.

At sentencing, Judge Gleason read and considered victim impact statements from some of the children depicted in the pornographic images traded by the defendant.  According to one victim, the defendant’s trading of his images continued the victim’s “shame…by spreading the pictures and videos [of his abuse] to hundreds of thousands of people on the internet.”  Another victim wrote “[i]f you are looking at me, or any other child for that matter, then you are hurting every one that you look at.  Anyone who looks at those horrible pictures of me or other children are abusing us.” 

Parents of some of the children depicted in the non-pornographic images possessed by the defendant also spoke to the court prior to sentencing.  In those statements, victims addressed the impact the defendant’s conduct had on the minors shown in the photographs and their families, as well as the school at which he worked.  According to one mother, their life “has been irrevocably changed because [the defendant] used his position to do things to children.”  Other parents wrote about how they “failed” their children because they were unable to protect them from the defendant, and that the impact of the defendant’s violation of their trust is that they “question everyone’s motives…don’t relax…and live in a tense world wondering who else wants to bring harm to [their] children.”  According to the school’s former principal, the defendant’s crimes and its impact on the school and local community were the most “emotional, personal, and devastating” thing he had experienced in nearly 30 years in public education.

Judge Gleason based her sentence on numerous factors, including the nature and circumstances of the defendant’s conduct and the defendant’s history and characteristics.  Judge Gleason noted the emotional statements provided by the local parents, and reminded the defendant that the “horror in the lives of the victims of the [child pornographic] images the defendant possessed” was many times worse.  Judge Gleason also remarked on the statement the defendant made to the court and his victims, noting that he focused almost the entirety of his statement on himself.  Judge Gleason found the defendant to be someone “very self-absorbed and focused on his [own] satisfaction.”  “[T]o gain gratification looking at pictures of children being tortured is not the type of thing someone with compassion and empathy would have,” said Judge Gleason.

This case was investigated and prosecuted by the FBI, the New Zealand Police Department, and Assistant U.S. Attorney Kyle Reardon.

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 today that James Slade, 57, of Calgary, Canada, was convicted after a two week jury trial of two counts of violating the Federal Clean Water Act by polluting the Salmon River with turbid wastewater from the Platinum Creek Mine he was in charge of operating.  A sentencing hearing is scheduled for November 12, 2015, and Mr. Slade was ordered to surrender his Canadian passport and remain in the United States pending his sentencing.

Evidence was presented at trial that the discharges from the mine were hundreds of times over the legal limits set in the National Pollution Discharge Elimination System (NPDES) water quality permit issued for the mine.  The jury deliberated for two days before convicting the defendant of two misdemeanor Clean Water Act crimes for discharging polluted wastewater during the 2010 and 2011 mining seasons in violation of the NPDES permit.  The jury was deadlocked and could not reach a decision on several felony violations, and found the defendant not guilty on other charges, including finding him not guilty of making a false annual report to the Alaska Department of Conservation that was submitted by another senior manager.  That manager, Robert Pate, has previously pleaded guilty to making that false statement.

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 at trial was that 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.

First Assistant U.S. Attorney Kevin Feldis prosecuted the case with a Chris Costantini, as Senior Trial Attorney from the Department of Justice’s Environmental Crimes Section.  Mr. Feldis stated that “the state and federal agencies that have a role in permitting and approving mining in Alaska rely on those who operate mines, as they rely on any permitted business that operates in remote locations, to self-report when they violate the law.  That did not happen in this case.  The mine said it was going to do one thing when it submitted its Mine Plan of Operations, and it ended up doing something very different.  Federal Agents from the Bureau of Land Management and the Environmental Protection Agency conducted an excellent investigation in this case.  Mr. Slade and the company he worked for are no longer mining, and there is no longer any pollution entering the Salmon River.”

Mr. 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% 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.

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.  Mr. Slade faces maximum penalties of one year in jail and a $100,000 fine for each of the two counts of conviction.

Anchorage, Alaska – United States Attorney Karen L. Loeffler and Ryan Noel, Special Agent in Charge, U.S. Fish and Wildlife Service, Alaska Region, announced today that the U.S. Fish and Wildlife Service Office of Law Enforcement has determined that the deaths of some walruses at a haulout near Cape Lisburne, Alaska, were human caused.  The Service believes it has identified responsible individuals.  However, no charges have been filed to date and the investigation continues.  No further information concerning the investigation will be released at this time. 

The Service has coordinated closely with the Eskimo Walrus Commission and was assisted by the North Slope Borough Department of Wildlife Management and the Alaska SeaLife Center on necropsies of the dead walruses. 

The Marine Mammal Protection Act permits the non-wasteful taking of marine mammals for subsistence and handicraft purposes by Alaska Natives living along the coast.  Anyone can collect bones, teeth, and ivory of dead walrus found on a beach, however, items must be registered with the Service within 30 days of collection. 

“We encourage and support all member communities from Barrow to Bristol Bay region to harvest walrus that is needed for food and creation of handicrafts in compliance with the Marine Mammal Protection Act,” said a written statement released by the Eskimo Walrus Commission to its members.  “EWC’s mission is to protect the walrus population and manage it sustainably for the benefit of our hunters and well into the future.” 

For more information regarding walrus and walrus research, visit: 

USFWS: http://www.fws.gov/alaska/fisheries/mmm/walrus/wmain.htm

USGS: http://alaska.usgs.gov/science/biology/walrus/index.html

For updates on NOAA’s aerial surveys of Arctic marine mammals, visit: 

http://www.afsc.noaa.gov/nmml/cetacean/bwasp/index.php

The U.S. Fish and Wildlife Service works with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people.  For more information, visit www.fws.gov, or connect with the U.S. Fish and Wildlife Service through any of these social media at http://www.fws.gov/home/socialmedia/index.html.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that DuWayne LeDoux, 55, of Kodiak, Alaska, pleaded guilty yesterday, October 1, 2015, in U.S. District Court, Sacramento, California, to possession with intent to distribute methamphetamine and conspiracy to structure cash deposits. 

According to court documents, LeDoux enlisted Sacramento resident Jennifer MacDougal to obtain and ship methamphetamine and crack cocaine to LeDoux at various addresses in Kodiak and under various names, so that LeDoux could sell the drugs. LeDoux paid for the drugs by depositing cash into a Wells Fargo account held by MacDougal in amounts designed to avoid bank reporting requirements.

Co-defendant MacDougal pleaded guilty in November 2012 and is currently serving a five-year sentence.

LeDoux is scheduled to be sentenced by United States District Judge Troy L. Nunley on January 7, 2016. LeDoux faces a maximum statutory penalty of 40 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the Drug Enforcement Administration and the Internal Revenue Service’s Financial Crimes Task Force, Sacramento, California offices. 

Ms. Loeffler thanks the investigative and prosecution team from Eastern California for helping decrease the flow of narcotics to rural Alaska.  This case was prosecuted by the U.S. Attorney’s Office for the Eastern District of California.

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that two Ketchikan residents were sentenced in federal court in Juneau for trafficking methamphetamine and heroin. 

Robert Duane Moriarty, 36, and Sara Skan, 35, of Ketchikan, Alaska, were sentenced today in Juneau by U.S. District Court Judge Timothy M. Burgess.  Moriarity received a sentence of 60 months of imprisonment followed by a five year term of supervised release, and Skan received 18 months of imprisonment followed by a three year term of supervised release.  On July 21, 2015, Moriarty and Skan pled guilty to a drug trafficking conspiracy charge involving methamphetamine and heroin.

According to Assistant U.S. Attorney Jack Schmidt, beginning in September 2014, Moriarty and Skan began trafficking methamphetamine and heroin in Ketchikan.  During the course of the conspiracy, the defendants travelled to the Lower 48 with drug proceeds to purchase narcotics and transport those narcotics on their person back to Ketchikan for subsequent distribution.  Based on a tip, law enforcement was notified that on January 25, 2015, Moriarty and Skan were scheduled to fly to Seattle, Washington, with drug proceeds to purchase narcotics.  On January 27, 2015, Moriarty and Skan were both contacted upon arriving back at the Ketchikan airport where they were searched pursuant to a search warrant.  During the search, law enforcement found approximately 141 grams of methamphetamine, 121 grams of heroin, and drug proceeds.  Law enforcement seized a total of $1,009 in U.S. currency that was obtained from the sale of narcotics and subsequently abandoned to the United States as part of the defendants’ pleas.

In sentencing Moriarty and Skan, Judge Burgess noted the seriousness of the crime, the extraordinary impact drug trafficking has in a small community, the criminal histories of the defendants, and the deterrence of the defendants and others as the reasons for the sentences he imposed.

Ms. Loeffler commends the Drug Enforcement Administration, Ketchikan Police Department, and the Port of Seattle Police Department who conducted the investigation leading to the successful prosecution in this case.

Anchorage, Alaska – United States Attorney Karen L. Loeffler and Ryan Noel, Special Agent in Charge, U.S. Fish and Wildlife Service, Alaska Region, provide the following information on the incident involving walrus deaths near Cape Lisburne, Alaska.  On September 16, 2015, the U.S. Fish and Wildlife Service, Alaska Region, received a report that approximately 25 walrus, including calves, had been killed on the coast of Alaska, near Cape Lisburne, and that some were missing tusks.  We followed up on this initial report on September 18, and opened an investigation.  To protect the integrity of the investigation we are no longer able to comment on this incident. 

The taking of marine mammals is prohibited by the Marine Mammal Protection act, with certain exceptions, including the non-wasteful take for subsistence purposes by Alaska Natives living along the coast.  Pacific Walruses make up an important part of the diet of many coastal Alaska Natives.  Tusks, bones, and hides are used to make authentic Native Alaskan handicrafts, as well as many of the items necessary to continue a subsistence way of life.  For example, walrus hides are occasionally used for covers for wooden boat frames and tusks were traditionally used for harpoon points, fish hooks and knives. 

The U.S. Fish and Wildlife Service, Marine Mammals Management office works closely with Tribal governments and Alaska Native organizations, such as the Eskimo Walrus and Qayassiq Walrus Commissions.  Together we co-manage the Pacific walrus population and ensure that it remains a functioning component of the arctic ecosystem and a sustainable subsistence resource. 

If you are interested in learning more about walrus, please visit the U.S. Fish and Wildlife Services’ walrus page (http://www.fws.gov/alaska/fisheries/mmm/walrus/wmain.htm), and the U.S. Geological Survey’s web page (http://alaska.usgs.gov/science/biology/walrus/index.html). 

If someone suspects a federal violation that involves migratory birds, marine mammals, endangered species, or wildlife smuggling, they should report them directly and immediately to: the U.S Fish and Wildlife Service Office of Law Enforcement at http://www.fws.gov/le/contact-us.html, or call 1-844-FWS-TIPS (1-844-397-8477).  To report violations in Alaska, please call 1-844-491-3709, or email ak_le@fws.gov.