District of Alaska

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was indicted for one count of conspiracy to defraud the government with respect to tax claims, 12 counts mail fraud, and five counts aggravated identity theft.

John Richard Koesterman, 49, of Anchorage, Alaska, was arraigned on June 11, 2013, in Anchorage after having been indicted by a federal grand jury on April 16, 2013.  Koesterman plead not guilty at his arraignment and is currently scheduled for trial beginning August 19, 2013.

According to filings with the court, between July 2009 and May 2011, Koesterman and others conspired to defraud the United States by filing false tax returns in order to obtain fraudulent tax refunds. The conspirators obtained the names and identifying information of people, many of whom were inmates at correctional facilities, without the knowledge of these individuals.  Using this information, the conspirators would prepare and file false income tax returns that reported fictitious wage and withholding information.  Some of the returns also reported false dependent information.  Each fraudulently filed false return claimed that the taxpayer was due a refund of thousands of dollars.  The returns were mailed to the IRS from Anchorage, Alaska, and from Denver and Colorado Springs, Colorado.  A total of 55 false returns claiming $275,127 in fraudulent refunds were filed. These returns used the identifying information of 28 people.

According to the indictment, the false returns used the conspirator’s personal addresses and Treasury checks were mailed to these addresses.  In the case of direct deposits, refunds went into accounts held in the name of a conspirator.  In order to cash checks, in some instances, conspirators forged Power of Attorney documents.  A total of $95,568 was fraudulently obtained from the U.S. Treasury as a result of the scheme.

The identity theft charges of the indictment are the result of Koesterman using, without lawful authority and in relation to mail fraud, the means of identification of three individuals used on false income tax returns.

Koesterman’s indictment contains a forfeiture allegation which stipulates that, upon conviction, Koesterman must forfeit $5,787.75 in currency seized from a bank account and $13,751 seized from a residence.

According to Assistant U.S. Attorney Retta-Rae Randall, if convicted, Koesterman faces up to 20 years in prison and a $250,000 fine.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.

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

The Internal Revenue Service, Criminal Division, led the investigation of this case.

Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that a Togiak, Alaska,  resident was sentenced yesterday for his actions arising from the illegal take of a walrus on Round Island in May 2011.

Sixty M. Arkanakyak, 49, was sentenced by U.S. District Court Judge Sharon L. Gleason to a term of 30 months prison and three years supervised release.  According to Assistant U.S. Attorney Steven E. Skrocki, who prosecuted the case, Arkanakyak, along with co-defendant Jessie Anariak, were indicted in December 2012.  The indictment alleged that on May 9, 2011, Arkanakyak and co-defendant Anariak departed from the village of Togiak, Alaska, in a Lund skiff.  After leaving Togiak, the men beached the skiff on Round Island, an island located within the Walrus Islands State Game Sanctuary and accessible to the public only by permit. 

The defendant admitted that while on the beach, Arkanakyak and Anariak approached a herd of walrus which were hauled out on the beach.  Arkanakyak admitted that both men, armed with .12 gauge shotguns, began shooting walrus and wounded approximately five.  The herd stampeded and four wounded walrus escaped into the sea.  Arkanakyak and Anariak then corralled one walrus against a cliff on the beach and shot it in the head with their shotguns until it died.  According to Arkanakyak, the men then hacked the tusks off the walrus’s skull and returned to their skiff without taking any of the meat or anything else from the dead walrus.  Arkanakyak and Anariak then departed Round Island, taking the tusks with them and leaving the walrus on the beach to waste in violation of the Marine Mammal Protection Act.

In February 2013, Arkanakyak plead guilty to illegally taking of a walrus from Round Island, as well as being a felon in possession of a firearm.  Jessie Anariak’s case remains pending.

U.S. Fish & Wildlife Service Special Agent in Charge, Stanley Pruszenski stated, “The U.S. Fish and Wildlife Service takes the wasteful killing of walrus solely for their tusks very seriously.  This sentence reflects the seriousness of the offense.  We hope this sentence deters others from similar acts of wastefulness.”

Ms. Loeffler commends the U.S. Fish and Wildlife Service Office of Law Enforcement, Refuge Law Enforcement and Alaska Wildlife Troopers who investigated this case.

Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that a Nenana, Alaska, resident was sentenced for violating federal wildlife laws, including the Lacey Act, the Marine Mammal Protection Act and the Migratory Bird Treaty Act. 

Miles W. Martin, 61, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline to six months in prison.  He pled guilty in March 2013, to four counts of a twenty-eight count indictment which charged Martin with wildlife trafficking involving the illegal sale of migratory birds, smuggling of wildlife, illegal sale of marine mammal parts and conspiracy

Along with his prison sentence, Martin’s sentence banned him from selling wildlife parts for life, required him to relinquish to the United States more than 900 pounds of wildlife parts including lion, bear, walrus ivory, parts of seal, polar bear parts, and elephant ivory, and to pay a fine of $6,500.  He also received three years supervised release following his prison term.

Martin admitted to being involved in a lengthy and long term walrus ivory smuggling conspiracy, as well as to being involved in the smuggling of wildlife parts world-wide, and to the illegal sale of migratory bird parts.

Regarding his involvement in illegal walrus ivory sales, Martin admitted that from at least February 2010 and continuing up to March 9, 2011, he conspired with others to illegally purchase walrus tusks and walrus parts for illegal resale, transport, and export from the United States.  Between July 2010 and March 2011, Martin’s two co-conspirators traveled to Savoonga, Alaska, and purchased walrus tusks and parts taken from animals recently killed and tagged by individuals in Savoonga.  The co-conspirators transported the walrus tusks and parts to their home in Glennallen, Alaska, and then transported some of those tusks and parts to Nenana, Alaska and Fairbanks where they transferred them to Martin.  In August 2010, and as part of the conspiracy, Martin paid $2,138 for the airline tickets and gave $1,000 cash to the co-conspirators for their trip.  Approximately 275 pounds of walrus tusks were purchased on that trip.  In exchange for financing that trip, Martin received raw walrus tusks from the co-conspirators, and later illegally sold some of those tusks.

Martin illegally purchased at least 26 walrus tusks from the two co-conspirators who provided Martin with bogus “gift” letters, attempting to disguise Martin’s illegal purchase of the walrus ivory.  Martin and the other co-conspirators also attempted to dye the walrus tusks to make the tusks look like fossil ivory in an effort to conceal the illegality of the walrus tusk purchases and sales.  Martin’s plea agreement also detailed the sale of a walrus head (with tusks) to a customer in Argentina, and the smuggling of the walrus head out of the United States without the proper customs permits. 
He also admitted the illegal sale of marine mammal parts to an undercover agent including: 20 seal claws; one polar bear tooth; one tooth offered for sale as a whale tooth which was a tooth of a seal or sea lion; polar bear teeth; fur; and various migratory bird parts.

            Martin further admitted that in August 2010, he knowingly exported walrus ivory from Alaska to a customer in Denmark contrary to federal law, including the Convention on International Trade in Endangered Species and the Endangered Species Act.  Martin on numerous occasions between May 2009 and April 2011, unlawfully sold and exported wildlife such as wolf, lion, lynx, and walrus parts, to customers outside the United States including the Czech Republic, United Kingdom, Italy, Australia, Belgium, Argentina, Denmark, Japan, Canada, Finland, Norway, Brazil, and Germany.  Between May 2009 and April 2011, Martin exported at least 30 packages of wildlife parts without obtaining an export license, an International Trade in Endangered Species export permit or the necessary wildlife export documentation.  

Between February 2007 and November 2012, Martin illegally purchased, sold, and exported wildlife parts and engaged in approximately 225 transactions totaling approximately $58,000.

As noted in his sentence, Martin relinquished to the U.S. Fish and Wildlife Service more than 900 pounds of wildlife parts kept in his home.  These parts included walrus parts, seal teeth, bear parts, bird parts, whale parts, and walrus ivory tusk tags from recently killed walrus,  Some of the ivory tusk tags were still attached to small chunks of ivory, some of which had been dyed in order to make the raw ivory appear to be fossilized ivory and thus not prohibited for sale by the Marine Mammal Protection Act.  

In court, Martin stated that his access to the internet facilitated his illegal wildlife trafficking and that he was out of the wildlife business for the rest of his life.

Karen Loeffler, United States Attorney for Alaska, noted that protection of our spectacular and special Alaskan wildlife and enforcement of the laws that govern and protect access to these animals is an important priority for law enforcement.

Stan Pruszenski of the U.S. Fish and Wildlife Service Office of Law Enforcement said, “Significant wildlife violations require significant punishment.  This sentence will serve to deter others similarly inclined.” 

Ms. Loeffler commends the U.S. Fish and Wildlife Service Office of Law Enforcement for the investigation of this case and the assistance provided from the Alaska Wildlife Troopers and the National Park Service.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that an Anchorage man was sentenced for uttering and possessing counterfeited securities, unlawful production of false identification documents, unlawful possession of five or more false identification documents, illegal transactions with an access device, possession of stolen mail, and being a felon in possession of a weapon.

Michael Duane Rogers, 43, of Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon Gleason to 54 months in prison.  Rogers was ordered to pay $142,855.06 in restitution.

According to Assistant U.S. Attorney Retta Randall, who prosecuted the case, the indictment indicated that beginning in late 2007 and continuing through 2009, Rogers engaged in the unlawful production of counterfeit checks and false identification documents, specifically United States military identification cards and Alaska State driver’s licenses.  By using the false identification documents, Rogers defrauded several area businesses by purchasing merchandise and services with the counterfeit checks.  He also defrauded businesses by using stolen checks and stolen access devices.   The indictment further indicated that Rogers also possessed mail stolen from the United States mail.  A previously convicted felon, Rogers was also charged with being in possession of a firearm illegally.

Judge Gleason discussed the egregiousness of Rogers’s acts and the impact on his 188 victims.  The financial harm was significant in itself, but many of his victims, who lived paycheck to paycheck, were harmed by the resulting over-draft fees and late payment fees which impacted not only their bank accounts, but potentially their credit ratings.  

 Ms. Loeffler commends the Anchorage Police Department and the United States Postal Inspection Service for the investigation of this case.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Kodiak man and a woman from Corpus Christi, Texas, were sentenced for their role in embezzling over half a million dollars from Trident Seafoods. 

Valerie Olivares, 35 of Corpus Christi, Texas, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline, to eight months prison for her role in aiding Isairis Wolfe in embezzling $45,000 from Trident Seafoods.

Jeremy Smith, 31 of Kodiak, Alaska, was also sentenced today by Judge Beistline to 28 months prison for his role in aiding Wolfe in embezzling $128,400 from Trident Seafoods.   

According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, from January 2008, and continuing until August 2010, the lead defendant Isairis Wolfe used her position as the book keeper for Trident Seafoods in Kodiak, Alaska, to write Trident checks to four of her personal associates: Anne Wilson; Jeremy Smith; Valerie Olivares; and Jamie Fathke.  Wolfe, using her check writing authority at Trident, drafted approximately 52 checks on a Trident account for approximately $500,000, and made them payable to her personal associates Wilson, Smith, Olivares, and Fathke, as well as to Wilson's minor son L.E. The checks were negotiated by Wolfe and her associates and they shared the proceeds. Wolfe concealed the fraud by creating fraudulent accounting records so that the payments appeared to be legitimate.

            During the three-year scheme, Smith negotiated 16 fraudulent checks, taking a break from the scheme only while he was incarcerated on unrelated weapons charges in 2009.  Olivares negotiated three fraudulent checks.  Smith and Olivares kept half of the money from the fraudulent checks and provided the remaining half to Wolfe. The scheme came to an end when Wolfe was fired from Trident Seafoods for performance related reasons and was no longer in a position to write the fraudulent checks.  The scheme was not discovered until after Wolfe was fired and a review of the books and records was conducted by Trident. 

            The leader of the scheme, Isairis Wolfe, is scheduled for sentencing on June 11, 2013.  Jamie Fathke was sentenced on January 9, 2013, to four months jail for her role in aiding Wolfe in embezzling $30,000 from Trident Seafoods.  Anne Wilson was sentenced on March 21, 2013, to 16 months prison for her role in aiding Wolfe in embezzling $289,000 from Trident Seafoods. 

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

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a local Juneau business owner was sentenced, May 31, 2013, in Juneau to federal prison for drug conspiracy.

Gema G.Thomas, 50, of Juneau, Alaska, was sentenced May 31, 2013, by U.S. District Court Judge Timothy M. Burgess to 42 months prison for her role in a drug trafficking conspiracy.  Her co-conspirator Darrell W. Dawson was previously sentenced to 170 months in January 2013, for his role in the drug trafficking conspiracy. 

According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation including the Drug Enforcement Administration, United States Postal Inspection Service, and the Juneau Police Department-Drug Metro Unit, which were investigating the importation of heroin into Juneau, Alaska, using United States Postal Service (USPS) Express Mail Parcels. 

In July 2012, Dawson and Thomas conspired to transport methamphetamine from the lower 48 to Juneau, Alaska.  Dawson provided Thomas $15,000 in drug proceeds for the purchase of six ounces of methamphetamine to be delivered to her business, Peer-Amid Beads, from her source of supply located in the lower 48 via USPS Express Mail.  Once received, Thomas then delivered the methamphetamine to Dawson who distributed the methamphetamine to others in the Juneau area and collected drug proceeds for future payment to Thomas for an additional six ounces of methamphetamine.

Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense and the need to deter the defendant and others as reasons for imposing the 42 month prison sentence.

Ms. Loeffler commended the Drug Enforcement Administration, United States Postal Inspection Service, and the Juneau Police Department - Drug Metro Unit for the investigation leading to the successful prosecution of Thomas and Dawson.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Juneau resident was sentenced in Juneau to federal prison for drug conspiracy.

Joshua River Riley, 37, of Juneau, Alaska, was sentenced May 31, 2013, by U.S. District Court Judge Timothy M. Burgess to 30 months prison for his role in a drug trafficking conspiracy.  Co-conspirator Bradley Arin Bethel subsequently pled guilty to his role in the drug trafficking conspiracy and is scheduled to be sentenced on August 26, 2013.

According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation including the Drug Enforcement Administration, Federal Bureau of Investigation, and the Juneau Police Department-Drug Metro Unit, which were investigating the importation of heroin into Juneau, Alaska. 

Between October 2012, and continuing through November 2012, Riley and his co-conspirator Bethel conspired to import heroin from Portland, Oregon, to Juneau, Alaska.  As part of the conspiracy, Riley contacted other co-conspirators in Oregon to supply heroin to Riley for subsequent distribution in Alaska.  Riley and Bethel provided the money to purchase the heroin and Bethel recruited a drug courier and arranged for the courier’s flight to Oregon to pick up the heroin with Riley who had traveled the previous day to Oregon.  Bethel provided the courier with a cell phone and programmed the number of Riley in the cell phone for the courier to get in contact with Riley in Oregon.  Riley and the courier met in Oregon and Riley provided 106.4 grams of heroin to the courier to transport back to Alaska via commercial air carrier for subsequent distribution.

Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense, the need to deter the defendant and others and to provide treatment in the most effective manner for the defendant as reasons for imposing the 30 month prison sentence.

            Ms. Loeffler commended the Drug Enforcement Administration, Federal Bureau of Investigation, and the Juneau Police Department - Drug Metro Unit for the investigation leading to the successful prosecution of Riley and Bethel.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a man from Fairbanks, Alaska, was sentenced in federal court in Anchorage for his role in an Anchorage and Fairbanks drug conspiracy. 

Jerry Wormley, 34, a/k/a, “Two-Tone,” was sentenced today by U.S. District Court Chief Judge Ralph R. Beistline.  Wormley received a sentence of 36 months prison, three years supervised release, and agreed to pay a $24,000 money judgment to the United States.  Wormley had previously pled guilty to an indictment charging him and his co-conspirators with one count of drug conspiracy.

According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, Wormley was a member of a drug trafficking organization in Anchorage and Fairbanks that between 2009 and February 2012, sold powder cocaine, marijuana, and oxycodone pills in Anchorage and Fairbanks.  Wormley sold cocaine in Fairbanks and he would purchase larger quantities of cocaine from other members of the conspiracy and then redistribute the cocaine in Fairbanks.  Wormley also acted as a courier for other members of the conspiracy, transporting cocaine from Anchorage to Fairbanks.

Wormley and other members of the conspiracy attempted to conceal their drug trafficking by claiming they were involved in a legitimate business, specifically that they were “artists,” employees, or promoters of concerts.  Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks.  Much of their music glorified the lifestyle of selling illegal narcotics and committing other crimes.  The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal narcotics.  Wormley had no record of serious or consistent employment since dropping out of high school in 1996, but claimed ownership of a fledgling music promotion company called JG Productions in Fairbanks.  This company had previously been a part of one minor concert promotion in Fairbanks, but it was clear Wormley’s sole source of income for many years was the distribution of cocaine in Fairbanks. 

Prior to imposing a sentence, Judge Beistline noted that selling drugs poisons the community and he characterized Wormley as a “nice guy drug dealer”.  Judge Beistline further acknowledged the community and family support Wormley had received prior to sentencing, but criticized the choices the defendant had made to distribute cocaine in the community.

Wormley was indicted along with 13 other members of the conspiracy located in Anchorage and Fairbanks.  Christopher Anderson was previously sentenced to 14 months prison on November 2, 2012, DeMarr Moultrie was sentenced to 40 months prison on May 1, 2013 and Jeraelyn Hill was sentenced to 66 months prison on May 28, 2013.  Donnell Johnson, Joshua Mustovich, Mihla Hall, Antonio Fleming, Dalon Johnson, Tevoris Carter, Rock Phelps, Emma Shine, and Brent Gunnels have pleaded guilty for their roles in connection with the conspiracy and await sentencing.  Terrance Fleming has a pending trial scheduled in August 2013.

            Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Postal Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of Wormley.

Anchorage, Alaska- U.S. Attorney Karen L. Loeffler announced today that a man from Wasilla, Alaska, was sentenced in federal court in Anchorage yesterday for drug conspiracy and being a felon in possession of a firearm. 

Kevin Ricker, 49, from Wasilla, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon L. Gleason.  Ricker received a sentence of 48 months in prison and five years of supervised release after having previously pled guilty to an indictment charging him with one count of drug conspiracy and one count of felon in possession of a firearm.

According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, in July 2012, Ricker facilitated the distribution of 15.7 grams of actual methamphetamine in exchange for $2,900.00.  Later in July 2012, Ricker planned to facilitate another similar sale of methamphetamine but was apprehended by law enforcement.  On July 31, 2012, while engaged in the drug conspiracy, Ricker was in possession of a Ruger .40 caliber revolver and he had previously been convicted of several crimes punishable by more than one year imprisonment. 

Ricker’s co-defendant in the indictment, Albert Maifea, was sentenced by Judge Gleason earlier in May 2013, to 84 months prison and five years supervised release for his role in the drug distribution conspiracy.

            Ms. Loeffler commended the Alaska State Troopers, the Anchorage Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Ricker.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a California resident was sentenced in Anchorage to federal prison for drug conspiracy.

Charles M. Ferris, 61, of Sacramento, California, was sentenced yesterday by U.S. District Court Judge Timothy M. Burgess to 48 months prison for his role in a drug trafficking conspiracy.

According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation including the Drug Enforcement Administration, Port of Seattle Police Department and the Juneau Police Department-Drug Metro Unit, which were investigating the importation of oxycodone into Juneau, Alaska.  In July 2010, Ferris and others conspired to import oxycodone from Sacramento, California, to Juneau, Alaska.  On July 4, 2010, Ferris sent a drug courier carrying over 500 80mg oxycodone pills to Juneau on a commercial airline.

Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense and the need to deter the defendant and others as reasons for imposing the 48 month prison sentence.

            Ms. Loeffler commended the Drug Enforcement Administration, Port of Seattle Police Department and the Juneau Police Department - Drug Metro Unit for the investigation leading to the successful prosecution of Ferris.

Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that two Fairbanks residents were charged with nine counts of wire fraud and three counts of theft from a local government receiving federal funds.  The offenses charged occurred from December, 2009, through November, 2012. 

The two defendants named in this indictment are Alfred R. “Bear” Ketzler, Jr. 57, and Alfred McQuestion Fabian, 62.  The indictment charges that Ketzler was employed by the City of Tanana as the City Manager and was responsible for managing the City’s property, including federal excess and surplus property the City obtained from the federal government.  In this position, Ketzler was responsible to allocate surplus federal property to the City of Tanana where needed.  Fabian was employed by the City of Tanana as an expeditor who was responsible for storing and transporting the City’s property, including that received from the federal government. 

The indictment alleges a scheme between Ketzler and Fabian whereby Ketzler would acquire surplus federal property that was stored at several different locations without notifying the Mayor of Tanana or the City Council for the City of Tanana of the federal excess and surplus property obtained on behalf of the City of Tanana.  It is further alleged, that as part of the scheme, Ketzler, who conducted the majority of the business for the City of Tanana from his residence and his office in Fairbanks, did not provide adequate paperwork to the Mayor of Tanana or the City Council for the City of Tanana regarding federal excess and surplus property he obtained on behalf of the City of Tanana.  It is alleged that Fabian, for his part, would transport federal excess and surplus property obtained on behalf of the City of Tanana to storage locations in and around Fairbanks, Alaska, including his own residence.

According to the indictment, after acquiring the surplus property, Ketzler, in coordination with Fabian, would sell the City of Tanana’s federal excess property to individuals and businesses in Alaska for personal gain.  As charged in the indictment, the property illegally sold by Ketzler and Fabian included heavy equipment such as trucks, fork lifts, bull dozers, and other industrial equipment.  The indictment alleges that in most instances, Ketzler had the purchasers write their checks to Ketzler personally.  Upon receiving the checks, Ketzler would then deposit the checks into his personal bank accounts. 

The indictment also alleges that part of the scheme involved Ketzler lying to other possible purchasers of surplus federal property.  As alleged in the indictment, Ketzler lied and misrepresented information to purchasers of the federal excess property.  For example, Ketzler told purchasers that the property belonged to the City of Tanana and that he was selling the property on behalf of the City of Tanana. 

The indictment alleges that Ketzler would deposit the proceeds from the sale of the City of Tanana’s property into one of his personal bank accounts, and would then write a check to Fabian or transferred money into one of Fabian’s personal bank accounts.

It was also a part of the scheme, as listed in the indictment, that Fabian converted some of the City of Tanana’s federal excess property for his own personal use and that both he and Ketzler sold the City of Tanana’s federal excess property through third-parties. 

As a result of the scheme, it is alleged that Ketzler and Fabian received at least approximately $122,100 in illegally obtained payments for the sales of the City of Tanana’s property and $3,650 in property converted to their personal use, for property which had an acquisition value to the United States of approximately $984,390.

The maximum penalty for wire fraud is 30 years imprisonment with a $250,000 fine.  The maximum penalty for theft from a local government receiving federal funds is 10 years imprisonment with a $250,000 fine.  An arraignment date has not been set.

The investigation has identified numerous sales of federal surplus property by Alfred Ketzler and Alfred Fabian.  Some of these sales are believed to have been authorized by the City of Tanana and some of these sales are alleged to have occurred without proper authority.  The FBI and Office of Inspector General believe that the sellers represented these sales as legitimate and they do not intend to seize the sold property and they do not consider the buyers to be suspects.  The FBI and Office of Inspector General would like to speak to anyone who purchased equipment from Ketzler or Fabian to assist the City of Tanana and the Office of Inspector General in identifying all the sales that have occurred.  Please call the FBI at (907) 452-3250 or (907) 276-4441 and ask to speak to Special Agent Sutherland if you have information about a sale or purchase of this federal surplus property.

Ms. Loeffler commends the Federal Bureau of Investigation and the Office of Inspector General, 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 – Acting U.S. Attorney Kevin Feldis announced today that a resident of Montrose, Colorado, was indicted by a federal grand jury in Anchorage on one count of making false statements to the United States and one count of perjury.  Both charges are felonies. 

According to the indictment, James Paul Hunt, 61, recently applied to be a third-party custodian for his son, who was charged with distribution of child pornography.  Hunt submitted a U.S.  Probation/Pretrial Services Application for Third-Party Custody, which he signed under penalty of perjury, to the U.S. Probation/ Pretrial Services Office.  The application asked whether Hunt had “Ever been cited, arrested, charged with or convicted of any crime.”  It is alleged that in response, Hunt knowingly failed to disclose that in 1987, he was charged and pled guilty to Sexual Assault on a Child (Position of Trust) in Colorado. 

The indictment further alleges that at a bail hearing for Hunt’s son on November 26, 2012, an Assistant U.S. Attorney questioned Hunt about whether there were “any other instances” or “police contacts” that Hunt had failed to mention on the application to be a third party custodian.   Hunt falsely responded and did not disclose the Sexual Assault charge or his guilty plea. 

Assistant U.S. Attorney Kimberly Sayers-Fay, who presented the case to the grand jury, advised that each of the felony counts carries a maximum sentence of five years’ imprisonment, a $250,000 fine, one year supervised release and a mandatory special assessment of $100 per count. 

Homeland Security Investigations conducted the investigation that led 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 Feldis announced today that a man from Anchorage was sentenced in federal court for his role in an Anchorage and Fairbanks drug conspiracy. 

Jeraelyn Hill a/k/a, “Dreadhead,” a/k/a, “Coo Rae,” a/k/a, “Coo,” a/k/a, “Rae”, 25, from Anchorage, Alaska, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline.  Hill received a sentence of 66 months in prison and three years of supervised release.  Hill had previously pled guilty to an indictment charging him and his co-conspirators with one count of drug conspiracy.

According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, Hill was a member of a drug trafficking organization in Anchorage and Fairbanks that between 2009 and February 2012, sold powder cocaine, marijuana, and oxycodone pills in Anchorage and Fairbanks.  Hill sold cocaine in the Anchorage community.  When Hill’s house was searched in March 2011, law enforcement also found $37,000 in cash wrapped in $1,000 bundles in his bedroom, $2,000 in loose money in a bedroom dresser, and 7 grams of cocaine in the kitchen.  Further investigation revealed that Hill had been flushing cocaine down the toilet just prior to law enforcement making entry into his house.

Hill and other members of the conspiracy attempted to conceal their drug trafficking by claiming they were involved in a legitimate business and were “artists,” employees, or promoters of an Anchorage recording label and rap and hip hop performance group known as “Out Da Cutt” or “ODC” Entertainment and “UNDB” (Up North ‘D’ or Dope Boys).  Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks.  Much of their music glorified the lifestyle of selling illegal drugs and committing other crimes.  The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal drugs.

Prior to imposing sentence, Judge Beistline stated that selling drugs poisons the community, he   characterized Hill as a “professional drug dealer” and referenced Hill as a member of a “drug dealing group of singers.”  

Hill was indicted along with 13 other members of the conspiracy which included Christopher Anderson who was previously sentenced to 14 months prison on November 2, 2012, and DeMarr Moultrie who was sentenced to 40 months prison on May 1, 2013.  Donnell Johnson, Joshua Mustovich, Mihla Hall, Antonio Fleming, Dalon Johnson, Tevoris Carter, Rock Phelps, Jerry Wormley, Emma Shine, and Brent Gunnels have all pled guilty for their roles in connection with this conspiracy and await sentencing. Terrance Fleming has a pending trial scheduled in August 2013.

 “The distribution and use of cocaine and other drugs continues to be a problem that we must recognize and address throughout our communities.  As a result of the coordinated efforts of law enforcement throughout the state, this drug conspiracy has been put to an end, and the sentence imposed by the court reflects the seriousness of the matter,” stated Mr. Feldis.

            Mr. Feldis commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Postal Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of Hill.

Anchorage, Alaska – Acting U.S. Attorney Kevin Feldis announced today that an Anchorage man has been indicted for being a felon in possession of a firearm. 

James Laneal Lee, III, 36, of Wasilla, Alaska, is the sole defendant named in the one-count indictment for illegal possession of firearms on or about August 10, 2011.  The indictment alleges that Lee possessed two separate handguns, a .44 caliber revolver and a .45 caliber pistol.  As a convicted felon, Lee is prohibited from possessing firearms.

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

“Convicted felons are prohibited from possessing firearms under federal law. Enforcement of that law keeps firearms out of the hands of criminals and keeps our community safer,” stated Mr. Feldis.

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

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

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Canadian man was sentenced in U. S. District Court in Fairbanks, Alaska, for the sale of two unlawfully taken and possessed Dall sheep.

Patrick J. Downey, 67, of Turner Valley, Alberta, Canada, pled guilty in May 2012, and was sentenced May 10, 2013, by U.S. District Judge Ralph R. Beistline after admitting that he guided two hunts that resulted in taking under-sized Dall sheep.  Downey was sentenced to pay a $20,000 fine, was placed on probation for five years, during which Downey may not hunt or guide in the United States.  The charges arose from Downey’s service as a licensed Alaska assistant guide in the Arctic National Wildlife Refuge (ANWR) in 2008 and 2009.  For approximately twenty years, Downey had guided hunters in the Brooks Range while employed by Master Guide-Outfitter Joe Hendricks, co-owner of Fair Chase Hunts (FCH).

According to Assistant U. S. Attorney Stephen Cooper, who prosecuted the case, the facts Downey admitted to in court showed that in 2008, he guided client Thomas McGann of Longmont, Colorado, who shot a Dall sheep mistakenly believing it was of legal size.  To obscure the fact that one horn of the Dall sheep was less than the legal minimum full curl, Master Guide Joe Hendricks and Downey altered the horn by hammering it with a rock.  The horns passed the required Fish and Game inspection in Fairbanks, but after further investigation by the U.S. Fish and Wildlife Service, agents seized the horns from McGann. 

Similarly, in August 2009, Downey’s client Delbert Oney of Lockwood, Missouri, mistakenly shot a ram with under-length horns.  Downey and Oney then altered the tips of both horns by hammering them on a rock to conceal their sub-legal size.  The horns failed state inspection and were seized.

For his part in these and other guiding offenses, Hendricks was sentenced in U. S. District Court in Fairbanks in August 2012 to pay a fine of $125,000 and was restricted from hunting and guiding for five years.  Hunting clients McGann and Oney were sentenced in February and April 2013, for transporting their unlawfully-taken Dall sheep and each paid a fine of $10,000, was restricted from hunting for one year and forfeited their sheep.  

To date, this investigation led by the U.S. Fish and Wildlife Service, Office of Law Enforcement, has resulted in the convictions of nearly a dozen FCH guides, employees and clients.  Registered guide Christopher Cassidy, co-owner of FCH, pled guilty in June 2011, to two felonies and eleven misdemeanors for guiding hunts that involved failing to salvage all edible meat of a Dall sheep, possessing an untagged grizzly bear, and guiding outside Cassidy’s authorized guide use area in ANWR.

Ms. Loeffler commends the United States Fish & Wildlife Service, Office of Law Enforcement for Northern Alaska, Arctic National Wildlife Refuge staff, and Alaska Wildlife Troopers for the investigation of this case.

Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that a resident of Anchorage was sentenced in federal court in Anchorage for possession of controlled substances with intent to distribute and being a felon in possession of a firearm. 

Paul Baldwin, 22, from Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Timothy M. Burgess.  Baldwin received a sentence of 84 months prison and three years of supervised release.  Baldwin had previously pled guilty to an indictment charging him with one count of possession of controlled substances with intent to distribute and one count of felon in possession of a firearm and ammunition.

According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, in November 2012, while driving toward Fairbanks, Baldwin was pulled over by the Alaska State Troopers (AST) for speeding near Talkeetna, Alaska.  During a search of the vehicle, the AST found crack cocaine, several grams of powder cocaine, heroin, and several ounces of marijuana in the trunk of the vehicle.  The AST also found a loaded .40 caliber pistol inside of a duffle bag.  Baldwin had two prior convictions that were punishable by a prison term exceeding one year.  The defendant was travelling to Fairbanks to sell the illegal drugs found in the vehicle and it is well known that retail prices for illegal drugs are significantly higher in Fairbanks than in Anchorage.

Prior to imposing a sentence, Judge Burgess said that he was concerned for the safety of the community and that Baldwin put himself, his passenger, and the people he was selling drugs to at risk with his behavior.  Judge Burgess also stated that Baldwin was a “young man”, and that if he did not choose a different path after he was released from prison, that he would likely end up spending the rest of his life in prison.

            Ms. Loeffler commended the Alaska State Troopers, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Baldwin.

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a man from Anchorage, Alaska, was sentenced in federal court for drug conspiracy and distribution of a controlled substance. 

Albert Maifea, 36, was sentenced yesterday by U.S. District Court Judge Sharon L. Gleason.  Maifea received a sentence of 84 months prison and five years of supervised release.  Maifea had previously pled guilty to an indictment charging him with one count of drug conspiracy and one count of distribution of a controlled substance.

According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, in July 2012, Maifea distributed 15.7 grams of actual methamphetamine in exchange for $2,900.00.  Maifea was in possession of a firearm during the methamphetamine transaction.  Later in July 2012, after another sale of methamphetamine by Maifea, law enforcement attempted to apprehend him and Maifea attempted to flee from law enforcement while driving through a busy intersection in Anchorage.  His dangerous driving caused several traffic collisions before he was arrested by law enforcement. 

Prior to imposing the sentence, Judge Gleason said that the defendant created a risk to the public by fleeing from law enforcement and there was a need to protect the public from future crimes committed by the defendant.  Judge Gleason found that Maifea’s drug offense was aggravated due to his carrying a firearm during the transaction and the collisions he caused while attempting to flee.

Ms. Loeffler commended the Alaska State Troopers, the Anchorage Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Maifea.

Anchorage, Alaska-B U.S. Attorney Karen L. Loeffler announced today that a man from Colorado was sentenced in federal court in Fairbanks for his role in a Fairbanks drug conspiracy. 

Mario Gutierrez, 40, from Northglenn, Colorado, was sentenced today by U.S. District Court Chief Judge Ralph R. Beistline.  Gutierrez received a sentence of 186 months prison and three years of supervised release.  Gutierrez had previously pled guilty to an indictment charging him with one count of drug conspiracy and one count of money laundering.

According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, between August 2009 and November 2011, Gutierrez sent methamphetamine from the Denver, Colorado, area to a co- conspirator located in Fairbanks.  The co-conspirator would pay for the methamphetamine by depositing cash into Gutierrez’s Wells Fargo bank account at bank branches in Fairbanks, and Gutierrez would withdraw the money in Colorado.  Between July 2009 and August 2010, $347,000 in cash had been deposited into Gutierrez’s Wells Fargo bank account at bank branches in Fairbanks.

Prior to imposing the sentence, Judge Biestline said this was a large scale methamphetamine distribution scheme perpetrated on the Fairbanks community.  

In October 2012, Gutierrez’ co-conspirator Jess Baird of Fairbanks was sentenced in Fairbanks by Judge Beistline to 91 months prison and three years of supervised release for his role in the money laundering and drug trafficking conspiracy.

“The sentencing’s of Mario Gutierrez and his associate, Jess Baird, should let criminals who traffic methamphetamines in our communities know that their prison sentences will reflect the harm they inflict,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in Alaska. “The people of Fairbanks should know that the IRS remains committed to the federal law enforcement team fighting the scourge that is meth.”

            Ms. Loeffler commended the Internal Revenue Service Criminal Investigation Division, the Drug Enforcement Administration, the United States Postal Service, the North Pole and Fairbanks Police Departments, and Alaska State Troopers for the investigation leading to the successful prosecution of Gutierrez.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a resident of Anchorage has been sentenced in federal court in Anchorage for his conviction of felon in possession of a firearm. 

U.S. District Court Judge Sharon L. Gleason imposed a 37 month prison sentence on Miguel Carl Myers, 27. 

According to information presented to the court by Special Assistant U.S. Attorney Erin White Bradley, who prosecuted the case, Myers possessed a loaded Smith & Wesson .40 caliber pistol in April 2012.  While in possession of the firearm, Myers pointed the weapon at another individual in an effort to demand payment for a heroin transaction.  Myers then took several credit cards and an identification card belonging to the other individual.  Myers currently has pending charges in state court for robbery in the first degree, assault in the third degree, misconduct involving weapons in the third degree, theft in the second degree, and making a false report.  On December 9, 2011, Myers was convicted in state court of the felony offense of second degree theft.              

Prior to imposing sentence, Judge Gleason noted a need to deter the defendant from further criminal conduct, along with a need to avoid disparity in sentencing.  Of particular concern to the court, was the defendant’s history of multiple domestic violence assaults within the City of Anchorage.  In prior state cases, Myers has strangled and assaulted women who were the mothers of his children.  Myers has admitted to a prior affiliation with the Latin Kings street gang in the State of Arizona.                

Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alaska State Troopers for the investigation of this case.  SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases. 

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that on April 16, 2013, a federal Grand Jury in Alaska returned a 36-count indictment against 11 individuals for their involvement in a drug conspiracy involving the distribution of heroin and methamphetamine in Alaska and the Eastern District of California, along with money laundering, and conspiracy to launder proceeds of the unlawful distribution of controlled substances.

This case is related to the recently announced, “Operation Gideon IV”, a Bureau of Alcohol, Tobacco, Firearms and Explosives multi-layered initiative designed to target and remove violent criminals who illegally traffic and possess firearms and to dismantle criminal organizations operating in Stockton, California.
Those indicted include:

• Phillip Dixon Jr., AKA “Cheddar”, 28, of Manteca, CA;
• George Little, AKA “Nino”, 23, of Stockton, CA;
• Gloria Sarinana, 27, of Stockton, CA;
• Justin Fisher, 28, of Stockton, CA;
• Kyle Wislon, 24, of Chugiak, AK;
• Marcos Diaz, 25, of Stockton, CA;
• Norris Drummond, JR., 21, of Stockton, CA;
• Cesar Serna, 23, of Stockton, CA;
• Anthony Mixon, AKA “Ray”, 19, of Stockton, CA; and,
• Harry Hawkins III, AKA “Paulie”, 33, of Stockton, CA.

Special Agents of Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS Criminal Investigation, the Drug Enforcement Agency, Homeland Security Investigations, and the California Highway Patrol have arrested Dixon, Little, Hawkins, Sarinana, Fisher, and Wilson. Wilson and Little were in Anchorage, Alaska. The other four defendants currently in custody were arrested in Stockton, California.

According to the indictment, between April 2012 and April 2013, Dixon, Diaz, Hawkins, Mixon, Serna, Little, Drummond, and Wilson, distributed heroin in Alaska.  Between November 2012 and March 2013, Dixon, Drummond, and Little distributed methamphetamine in Alaska. In December 2012, Dixon distributed methamphetamine in Alaska and in the Eastern District of California.

The indictment further alleges that Dixon, Fisher, Sarinana, Serna, Diaz, Mixon, and Drummond conspired with one another 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.

The case is being investigated under the purview of the Organized Crime and Drug Enforcement Task Force which is made up of personnel from the U.S. Attorney’s Office, Federal Bureau of Investigation, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Internal Revenue Service–Criminal Investigation, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard, and the Anchorage Police Department.

According to Assistant U.S. Attorney Stephan Collins, Lead Organized Crime and Drug Enforcement Task Force Attorney for the District of Alaska, who presented the case to the grand jury, if convicted, the defendants face a mandatory minimum sentence of ten years prison for the drug conspiracy charge and a potential maximum of life imprisonment and a maximum sentence of 20 years imprisonment for the money laundering charges. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.

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

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a man from Anchorage, Alaska, was sentenced in federal court in Anchorage for his role in an Anchorage and Fairbanks drug conspiracy. 

DeMar Moultrie, a/k/a, “Duckmane,” a/k/a, “All Day,” 25, from Anchorage, Alaska, was sentenced yesterday by U.S. District Court Chief Judge Ralph R. Beistline.  Moultrie received a sentence of 40 months in prison and three years of supervised release.  Moultrie had previously pled guilty to an indictment charging him and his co-conspirators with one count of drug conspiracy.

According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, Moultrie was a member of a drug trafficking organization in Anchorage and Fairbanks, that between 2009 and February 2012, sold powder cocaine, marijuana, and oxycodone pills in both cities.  When Moultrie’s house was searched, law enforcement found cocaine, a stolen firearm, $1,300.00 in cash, and other items consistent with drug trafficking.  Two weeks after a co-conspirator was arrested in connection with several kilograms of cocaine, Moultrie was one of four co-conspirators that left Anchorage on a private flight chartered to Seattle.  Moultrie did not return to Alaska until after his arrest in Rochester, New York, in August 2012. 

Moultrie and other members of the conspiracy attempted to conceal their drug trafficking by claiming they were involved in a legitimate business working as “artists,” employees, or promoters of an Anchorage recording label and rap and hip hop performance group known as “Out Da Cutt” or “ODC” Entertainment and “UNDB” (Up North ‘D’ or Dope Boys).  Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks.  Much of their music glorified the lifestyle of selling illegal narcotics and committing other crimes.  The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal narcotics.

Prior to imposing a sentence, Judge Beistline informed the defendant that the community was tired of drug dealers preying on the weak and vulnerable in the community.  Judge Beistline stated that typical citizens do not have stolen firearms and other items consistent with drug trafficking in their homes and do not fly on private chartered flights to Seattle.  

Moultrie was indicted along with 13 other members of this conspiracy.  Christopher Anderson was previously sentenced to 14 months prison on November 2, 2012.  Donnell Johnson, Joshua Mustovich, Mihla Hall, Antonio Fleming, Dalon Johnson, Tevoris Carter, Jeraelyn Hill, Rock Phelps, Jerry Wormley, Emma Shine, and Brent Gunnels have pled guilty for their roles in connection with the conspiracy and await sentencing.  Terrance Fleming has a pending trial scheduled in August 2013.

Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of Moultrie.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a St. Louis man was sentenced in federal court in Anchorage for distributing child pornography.

Leland Paster, 29, from St. Louis, Missouri, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline to 10 and a half years in prison to be followed by 15 years of supervised release.

According to Assistant U.S. Attorney Kyle G. French, who prosecuted the case, Paster used an Internet email account to amass and trade a collection of over 1,000 images and 50 videos depicting children being sexually abused.  The depictions included toddlers and bondage/torture.  Paster’s collection also reflects the international scope of child sex abuse that feeds the demand created by Paster and others who collect and trade child pornography.  Paster’s collection included 600 images and he possessed 23 videos involving many known child pornography series depicting the same victims.  These  materials contained at least 16 identified child victims who were abused in Switzerland, Germany, France, Belgium, the United Kingdom, the Netherlands, Italy, the Republic of Moldova, the Ukraine, Canada, Denmark, Sweden, Austria, Brazil, and the United States.

            Judge Beistline emphasized during sentencing that child pornography is “not a victimless crime” and characterized Paster’s conduct as helping to satisfy a market for the depictions. 

“The possession, receipt, transportation, and distribution of child pornography perpetuates the harm to victims depicted in the images and fuels a market, thereby leading to further production of images” stated Ms. Loeffler.   Ms. Loeffler further stated that “Paster’s participation in email child pornography groups, for example, involves membership and informal communications which inevitably and disturbingly encourages child sex sexual abuse by other individuals.”

AUSA French further stated that every internet user can help combat the problem by choosing to report child pornography related links, emails, media, and other materials.  This effort may possibly rescue a child.If anyone encounters child pornography online, you can report its location to your Internet service provider, local or state law enforcement, the FBI or Department of Homeland Security office.  It may also be reported online via the National Center for Missing and Exploited Children’s (NCMEC) website at cybertipline.com.  NCMEC will forward your report to the appropriate investigative agency for follow-up.

Ms. Loeffler commends the Department of Homeland Security Investigations for the investigation of this case.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that an Anchorage resident pled guilty yesterday in federal court to an indictment charging one count of felon in possession of firearms. 

Alondo Mark Modeste, 29, entered his guilty plea before U.S. District Court Judge Timothy M. Burgess.  

In connection with the guilty plea, Special Assistant U.S. Attorney Erin White Bradley, advised the court that Modeste possessed firearms in April 2012, and while fleeing from law enforcement, Modeste jumped out of a hotel window at the Merrill Field Inn.  As he went out the window, Modeste threw a Smith & Wesson .357 caliber revolver he possessed into a snow bank.  Law enforcement also found a Taurus 45 caliber revolver underneath the driver’s seat of a Buick Sedan that Modeste had been driving prior to entering the room at the Merrill Field Inn.  Modeste has a 2005 felony conviction for manslaughter arising from a case in the Superior Court for the State of Alaska, Third Judicial District.  Modeste also has other criminal convictions on his record involving illegal controlled substances, guns and violence.       

Judge Burgess scheduled a sentencing hearing for Modeste on July 22, 2013.  The law provides for a maximum sentence of 10 years in prison, a fine of $250,000, or both.  Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history of the defendant.        

Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department for the investigation of this case.  SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a resident of Anchorage has been sentenced in federal court in Anchorage for his conviction of possession of controlled substances with intent to distribute. 

Tristan Jamal Grant, 27, was sentenced today by U.S. District Court Judge Sharon L. Gleason to 47 months’ prison.  

 According to information presented to the court by Special Assistant U.S. Attorney Erin White Bradley, who prosecuted the defendant at trial, in November 2011, Grant possessed a total of 1.7 grams of crack cocaine, packaged in thirteen individual bindles.  Law enforcement discovered the crack cocaine while executing an arrest warrant for Grant stemming from two unrelated cases charged by the State of Alaska.  At the time of Grant’s arrest, he also possessed over one thousand dollars in cash and a type of digital scale commonly used to weigh illegal controlled substances.  When the U.S. Marshals Service Fugitive Task Force found Grant, he was driving a white Cadillac, which was registered to Grant and another individual.  Members of the Task Force observed a Heckler and Koch .40 caliber handgun partially exposed underneath the driver’s seat where Grant had been sitting.  The firearm was loaded with ten rounds of ammunition.  In November 2012, a jury convicted Grant of possessing the crack cocaine with intent to distribute. 

At sentencing, Judge Gleason found that Grant was likely aware of the presence of the firearm, which resulted in a sentencing enhancement.  Judge Gleason also found a sentencing enhancement for obstructing justice, as Grant attempted to influence a witness prior to trial and presented perjured testimony while under oath.  Grant has other felony convictions for robbery, misconduct involving a controlled substance and assault in the third degree for causing fear of injury with a weapon.           

Prior to imposing sentence, Judge Gleason noted a need to deter the defendant from further criminal conduct, as well as a need to protect the public from drug trafficking.                      

Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department for the investigation of this case.  SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.  Assistant U.S. Attorneys’ Stephanie Carowan Courter and Kimberly Sayers-Fay participated in the sentencing phase of this case. 

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage resident pled guilty yesterday in federal court to charges of possession of a controlled substance with intent to distribute and felon in possession of firearms. 
           
Nancie Caridad Modeste, 27, entered her guilty plea before U.S. District Court Judge Sharon L. Gleason.  In connection with the guilty plea, Special Assistant U.S. Attorney Erin White Bradley, advised the court that Modeste and her co-defendant, Ashley Helene Hilton, possessed firearms in September 2012.  Both defendants have prior felony convictions.  Modeste was convicted of felony tampering with evidence in 2005, and Hilton was convicted of second degree felony robbery that same year.  Modeste admitted to possessing three semi-automatic pistols, while her co-defendant admitted to possessing only one of the pistols.  In addition to the firearms, Modeste also possessed 85 grams of crack cocaine, which she intended to sell to others.  On March 8, 2013, Hilton entered a plea of guilty to the charge of felon in possession of a firearm.

Modeste is scheduled to be sentenced by Judge Gleason on July 1, 2013, and Hilton’s sentencing is set for May 17, 2013.  For Modeste, the law provides for a mandatory minimum sentence of five years in prison, a potential maximum sentence of 40 years, a potential fine of five million dollars, or both. 

Hilton faces a maximum sentence of 10 years in prison, a fine of $250,000, or both.  Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history of the defendants.                   

Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation of this case.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage resident who had been indicted  for three separate instances of wire fraud in connection with an insurance scam  was sentenced Tuesday in federal court in Anchorage.

Rustem Mukhametshin, 26, was sentenced by U.S. District Court Judge Timothy Burgess, to 12 months in prison, to be followed by three years of supervised release and to make restitution payments totaling more than $70,000.  Mukhametshin, who is a citizen of Russia, plead guilty in January 2013, and is scheduled to be deported from the United States at the conclusion of his prison sentence. 

According to Assistant U.S. Attorney Bryan Schroder, who prosecuted the case, Mukhametshin was a principle figure in a unique and extensive scheme to defraud insurance companies for tens of thousands of dollars. Mukhametshin exploited a weakness in the practices of the insurance companies since they generally do not inspect vehicles when they issue an insurance policy. The companies assume that the vehicle being insured is of a reasonable condition, making its value consistent with other cars of the same make, model, production year, and mileage.  Mukhametshin exploited that practice by buying damaged cars at rates well below the standard value, and then staging accidents with the damaged cars he purchased. The difference between the low value of the damaged cars and the value of an undamaged standard vehicle of similar model, year, mileage, was then taken as profit.  Mukhametshin staged four of these accidents and only stopped the criminal activity after the insurance company refused to pay. 

Assistant U.S. Attorney Bryan Schroder further stated that Mukhametshin’s scheme was even more extensive because confederates of the defendant were staging similar fraudulent “accidents.”  The loss amount directly attributable to the defendant’s actions was $70,656.70.

Ms. Loeffler commends the Federal Bureau of Investigation for the investigation on this case.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Palmer, Alaska, man was sentenced in federal court in Anchorage to 96 months in prison for one count of possessing methamphetamine with intent to distribute and one count of felon in possession of a firearm and ammunition.

Brandon Wayne Moen (a.k.a. “Scooter”), 28, from Palmer, Alaska, was sentenced today by U.S.   District Court Judge Timothy M. Burgess, to 96 months’ prison and 5 years’ supervised release.

According to Assistant U.S. Attorney Kyle G. French, who prosecuted the case, Alaska State Troopers arrested Moen in June 2012, for an outstanding State of Alaska arrest warrant issued based on allegations of a felony probation violation.  When the Troopers placed Moen under arrest, they discovered a loaded Ruger .380 caliber semi-automatic pistol and $2,599 in United States currency in Moen’s attire.

Troopers impounded the vehicle Moen was in at the time of his arrest and a drug detection dog subsequently alerted to the odor of controlled substances in Moens’ vehicle.  A search warrant was obtained and the Troopers found and seized various items from the vehicle, including methamphetamine, a bulletproof vest, syringes, hundreds of unused gram-sized baggies used for distributing narcotics, four grams of heroin, a digital scale, a pistol magazine, ammunition, and a tattoo gun.  DEA laboratory testing determined that the methamphetamine he possessed was 99.4% pure.

According to an April 6, 2008, Central Illinois sports article, Moen was an elite athlete whose talent could not be “fully appreciated by a review of his stellar times and margins of victory.”  Moen’s long-term goal was to break the 1:05:00 half marathon mark and qualify for the 2012 Olympic Trial Marathon.  Moen was piling up marathon victories at that time and running 80 to 90 miles a week.

His counsel, Assistant Federal Defender Jamie McGrady, said Moen turned to drug use and became addicted after the tragic suicide of his bother.  Ms. McGrady observed and stated in a court filing that “Mr. Moen can serve as a cautionary tale to others in prison and working on sobriety – his was a rare talent, and it was wasted because of his drug abuse.”  At sentencing, Ms. McGrady also noted that Moen’s arrest probably saved his life.

In sentencing Moen, Judge Burgess emphasized that this was an opportunity for Moen to retake control of his life. 

“Although Mr. Moen has a chance to rebuild his life,” U.S. Attorney Loeffler notes, “the destruction and waste of enormous talent caused by using drugs is sad and cannot be undone.  While our entire community as a whole suffers from the corrosive harm caused by illegal narcotics, Mr. Moen is yet another reminder that the harm and resulting consequences occur at a very tangible individual and personal level.”

Ms. Loeffler commends the Alaska State Troopers and especially the Trooper’s Mat-Su Drug Unit, the ATF and the DEA who conducted the investigation leading to the successful prosecution of Moen.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a cocaine trafficker who had been indicted for involvement in two separate cases for sending cocaine to Alaska in recent years was sentenced yesterday in federal court in Anchorage.

Derneval Rodnell Dimmer, 36, was sentenced yesterday by U.S. District Court Judge Timothy Burgess, to 228 months in prison, to be followed by ten years of supervised release.  Dimmer, who used a host of aliases including “Jabba,” “Pedro Dimmer,” “Ronnell Dimmer,” and “Pedro Wood,” has at times lived in Anchorage, but more recently resided in Las Vegas and the Los Angeles area.   

According to Assistant U.S. Attorney Kimberly Sayers-Fay, who prosecuted the cases, Dimmer’s drug trafficking crimes are among the most serious encountered in Alaska.  In his plea agreement, Dimmer admitted that he has been engaged in shipping cocaine to Alaska since at least 2009.  As part of that conspiracy, in September 2009, Dimmer dispatched three individuals to Anchorage with eleven kilograms of cocaine concealed in their checked luggage. All three were prosecuted, but Dimmer’s responsibility as the drug source did not become clear until his fingerprints were later discovered on one of the cocaine-laden boxes.  For his actions culminating in the 2009 interception of the eleven kilograms of cocaine, Dimmer pled guilty to one count of conspiring to distribute cocaine.   

While federal agents were endeavoring to find and arrest him on the 2009 case, Dimmer shipped additional kilograms of cocaine to Alaska.  In early May 2012, Dimmer shipped two separate packages containing a total of approximately 8.5 kilograms of cocaine from Burbank, California, to Alaska.  Law enforcement intercepted one of those packages, removed the cocaine, and subsequently delivered the altered contents to the target who turned out to be Dimmer’s cousin, Quincy Hernandez, who resided in Alaska.  After performing the “controlled delivery” of the sham package to an Anchorage residence, law enforcement found the second box of cocaine that Dimmer had sent to Hernandez from Burbank.  Dimmer concealed the kilograms of cocaine sent from Burbank in rather unique retro-looking Crosley Stereo “5 in 1” sound systems that contained kilograms of cocaine.  For these subsequent actions, Dimmer pled guilty to one count in a distinct case of conspiring to distribute cocaine.  Hernandez pled guilty to conspiring to distribute cocaine and his sentencing is pending.    

In sentencing Dimmer to nineteen years in prison and ten years of supervised release, Judge Burgess noted Dimmer’s prior criminal history, which included a shooting and a domestic violence conviction, as well as Dimmer’s admission that he obstructed justice by attempting to influence the testimony of witnesses.  Judge Burgess emphasized that the sentence imposed, including the ten-year period of supervised release that will follow the nineteen-year prison term, was designed to provide long-term protection of the public.  

Ms. Loeffler commends the Drug Enforcement Administration for the investigation of this case, with which the Federal Bureau of Investigation’s Safe Streets Task Force also assisted.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that six individuals have been arrested on charges of conspiracy to commit international money laundering and structuring financial transactions.  

On April 2, 2013, Special Agents of the IRS Criminal Investigation Division, the Drug Enforcement Administration, and Homeland Security Investigations arrested five people in Alaska and one in Florida. Those arrested included Claritza Natera, 44, Joel Paredes Henriquez, 32, Nerido Paredes Henriquez, 38, Alberto Acosta, 32, and Carlita Acosta, 34, of Anchorage, Alaska, and Concepcion Egea, 56, of Orlando, Florida. 

According to the indictment, between approximately January 2010 and December 2011, the defendants conspired with one another and with unindicted co-conspirators Randin Paredes Henriquez and Joel Santana-Pierna, who were previously indicted in another case, to transfer large sums of money from Alaska to the Dominican Republic. The money was the proceeds of a larger conspiracy allegedly perpetrated by Santana-Pierna and others to distribute cocaine.  The alleged co-conspirators noted in the indictment, wired more than $175,000 in illegally obtained funds from Alaska to the Dominican Republic over a two year period.  Additionally, in December 2011, Claritza Natera and others transported $55,720 in cash on board a plane from Alaska to Philadelphia, Pennsylvania, in an attempt to then escort the funds to the Dominican Republic.

The indictment further alleges that each of the conspirators attempted to evade federal financial transaction reporting requirements by making multiple deposits to their bank accounts that were below the reporting threshold. These deposits were often made within hours or even minutes of one another.  Under federal law, a Currency Transaction Report must be filed with the IRS by a financial institution for any currency transaction over $10,000, and it is illegal to structure transactions in order to avoid this filing requirement.

According to Assistant U.S. Attorneys Stephanie Courter and Thomas Bradley, who presented the case to the grand jury, the conspiracy charge is punishable by up to 20 years in prison as well as a $500,000 fine, and each individual structuring charge carries a maximum penalty of 10 years in prison as well as a fine.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.  

The case was investigated under the purview of the Organized Crime and Drug Enforcement Task Force, which is made up of personnel from the U.S. Attorney’s Office, Federal Bureau of Investigation, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Internal Revenue Service–Criminal Investigation, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard, and the Anchorage Police Department.

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 three Anchorage men were arraigned on charges involving an alleged drug trafficking conspiracy, distribution of controlled substances, attempt to possess with intent to distribute heroin, and possession of a firearm in furtherance of drug trafficking. 

Jared Thomas Bowers, 23, Christopher Thomas Mejia, 24, and Rhadames Marmolejos Jr., 20, entered not guilty pleas to the eleven-count indictment.        

The indictment charges all three defendants with participating in a conspiracy to distribute heroin.  Mejia and Bowers face additional charges for possession of a firearm in furtherance of a drug trafficking crime and Marmolejos Jr. has been charged with eight counts of distribution of a controlled substance. 

Special Assistant United States Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a mandatory minimum sentence of ten years in prison, with a potential life sentence for a conviction of drug trafficking conspiracy.  Each defendant also faces a potential fine of up to ten million dollars.  Possession of a firearm in furtherance of drug trafficking carries a mandatory minimum sentence of five years in prison with a potential life sentence, and a fine of up to $250,000.  The remaining charges in the indictment carry maximum sentences of twenty years in prison and fines of up to one million dollars.  Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the individual defendants.   

Ms. Loeffler commends the Drug Enforcement Administration for the investigation of this case.  All defendants remain incarcerated pending trial in this case. 

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

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was arrested today on allegations that she misapplied over $200,000 of funds from the Native Village of Tatitlek for her personal use.  Charges include that a $20,000 cash withdrawal of Tatitlek funds that she is alleged to have provided to her brother was also improperly misapplied.

On March 21, 2013, Lori “Sue” Johnson, 45 (married name now Lori Clum) of Anchorage, Alaska, was named in a four-count indictment with three counts of Theft from an Indian Tribal Organization.  Johnson’s brother, James Kramer, 47, of Valdez, Alaska, was named in one count of the indictment for Theft from an Indian Tribal Organization. 

The indictment alleges that Lori Johnson was voted out of office as President of the Native Village of Tatitlek in April 2008, but refused to acknowledge the election ousting her and maintained control over the village bank accounts until April 2009.  During this time, it is alleged that she paid herself duplicate paychecks, took significant cash withdrawals, and wrote checks to herself totaling over $200,000.  This amount included a $28,750 cash withdrawal she deposited into her personal bank account; a check for $19,500 that she wrote to herself and deposited into her personal bank account; and a $20,000 cash withdrawal that she gave to her brother James Kramer that he used for personal expenses. 

The Native Village of Tatitlek receives the majority of its funding from federal sources including the Bureau of Indian Affairs, the U.S. Environmental Protection Agency, and the Department of Health and Human Services..

Assistant United States Attorney Aunnie Steward, who presented the case to the grand jury, indicated that the law provides for a maximum sentence of 5 years in prison, a fine of $250,000, or both on each count.  Under the federal sentencing statutes, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants. 

The FBI, and the U.S. Environmental Protection Agency Office of Inspector General with assistance from the IRS Criminal Investigations Division, conducted the investigation leading to the indictment in this case.

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that two Anchorage residents were sentenced on five counts of wire fraud and one count of filing a false income tax return.

Lori Wiley-Drones, 57, and Edward Drones, 62, were each sentenced today by U.S. District Court Judge Sharon L. Gleason, to 46 months in prison, to be followed by three years’ supervised release.  The court ordered the defendants to pay a total of $829,417.74 in restitution to the victim.  

According to Assistant U.S. Attorney Kim Sayers-Fay, who prosecuted the case, in 1996 the Drones became foster parents to a child who had experienced abuse.  The Drones later adopted this child and then filed a lawsuit on his behalf charging the State of Alaska with failure to protect.  The lawsuit resulted in establishment of a trust fund of over $830,000 for the child.  

According to information presented in court, in March 2009, after the child’s professional trustee declined Lori Wiley-Drones’ demand that the child purchase the family’s home, the Drones began arranging the removal of the professional conservator in favor of Edward Drones, who falsely stated that he had not filed for bankruptcy in the past ten years.  When Edward Drones assumed control of the child’s trust fund in December 2009, he assured the state court that he understood his obligation to keep the child’s property separate from his own and never to use the child’s property for his own benefit.  However, upon gaining control of the trust account, Edward Drones immediately shared this control with his wife.  The defendants admitted that over the next ten months, Lori Wiley-Drones and Edward Drones spent virtually all of the trust money.  In one instance, Lori Wiley-Drones bought and renovated a house in Washington with the child’s trust money.  The Drones used over $125,000 to pay credit card bills, $67,088 to purchase cars, and $38,000 to purchase jewelry.  By December 2010, only $15.05 remained in the child’s trust account.  The Drones filed a false income tax return by failing to report any of the more than $700,000 in misappropriated funds as income in 2010.  

In sentencing the Drones, Judge Gleason observed that by decimating their adoptive son’s trust fund, the Drones destroyed his ability to trust people, which was an attribute all the more precious because of the trauma he had endured in early life.  The judge noted that the sentence she imposed reflected that this fraud was particularly damaging:  the victim’s biological father compromised his childhood, and then the Drones compromised his future – and for things like Coach Purses, fine jewelry, clothes and cars. 

“This type of fraud is as damaging as it is heartbreaking. The sentence reflects the need to protect those who are our most vulnerable individuals and deter those who would trade on and take advantage of that vulnerability”, stated U.S. Attorney Karen L. Loeffler.

Kenneth J. Hines, Special Agent in Charge of the IRS Criminal Investigation Division in the Pacific Northwest, indicated he was pleased with the 46-month sentences for Edward and Lori Wiley-Drones and stated, “Being a parent is one of the most important things we will have the pleasure of doing in our lifetime.  So when greed clouds people’s judgment to the point where they cause harm to their children, as a law enforcement officer it’s my duty and responsibility to vigorously pursue the investigation.  This sentencing proves that in our community, crimes against the vulnerable will not go unpunished.”

Ms. Loeffler commends the Internal Revenue Service, Criminal Investigation Division for the investigation of this case.

Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court in Anchorage for fraudulently obtaining over $300,000 from Alaska victims.                                                  

Donald Lee Smith, 61, of Anchorage, was sentenced to just over three years in prison today by Senior
U.S. District Court Judge H. Russell Holland, who imposed a term of 37 months in prison, followed by a three year term of supervised release.  Smith was ordered to pay $316,150.58 in restitution, with credit for $25,000 in payments made at the time of sentencing.  Two of the victims addressed the court, discussing the financial and emotional impact they suffered because of Smith’s crimes. 

Smith pled guilty on August 6, 2012, to engaging in an investment fraud scheme and that he fraudulently obtained over $300,000 from victims in Alaska during 2007 and 2008.  Smith pled guilty to one count of wire fraud and one count of money laundering in connection with the scheme.  Smith admitted that he obtained over $300,000 from the victims by making intentionally false representations about investment opportunities.  Smith admitted that he obtained the funds from his investors and lenders without telling them that he was using a substantial portion of their money to gamble in casinos rather than invest in properties.  According to the admissions made in court, the victims transferred funds from Anchorage to Oklahoma, which the defendant then withdrew and transferred money to other accounts, knowing the money was criminally derived.

Smith was indicted by a federal grand jury in December 2011 and was originally charged with 12 counts of mail, wire fraud and one count of money laundering.  Smith lived in Alaska when the scheme began, but then moved to Oklahoma, according to court documents. 

“Defendant Smith took advantage of the trust of his victims. The three year sentence imposed demonstrates the seriousness of his criminal conduct.  We will continue to work with our law enforcement partners to protect victims of financial fraud and rigorously prosecute those who seek to steal the savings of others through fraudulent schemes” stated U.S. Attorney Karen L. Loeffler. 

“I hope that today’s sentence serves to bring some closure to those victims defrauded by Mr. Smith, “said FBI Acting Special Agent in Charge Kevin C. Donovan. “On behalf of the FBI, I would like to thank the U.S. Attorney’s Office and IRS-Criminal Investigation for their unwavering commitment to this investigation and prosecution. Working together, we will continue to pursue those who misrepresent themselves or their intention to defraud innocent victims.”

 Ms. Loeffler commends the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division for the investigation of this case.

Anchorage, Alaska- U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court in Anchorage for being a felon in possession of a firearm.

Kenneth Joel Ball, 27, of Anchorage, Alaska, was sentenced today by U.S. States District Court Judge Sharon L. Gleason, to 41 months in prison, followed by a three year term of supervised release. The Court did not order Mr. Ball to pay a fine.

According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, Mr. Ball was found in possession of a Kel-Tec, Model P-11, 9mm pistol on May 31, 2012, in Anchorage.  Mr. Ball’s possession of a firearm was prohibited due to his prior felony convictions, including state theft and narcotics charges.

            Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department for their investigation of this case.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a woman from Houston, Alaska, was sentenced in federal court in Anchorage for preparing false tax returns for drug dealers. 

Rebecca Renee Powell, 38, was sentenced today by U.S. District Court Judge Timothy M. Burgess, to ten months in prison, followed by one year of supervised release.

According to Assistant U.S. Attorneys Stephanie Courter and Thomas Bradley, who prosecuted the case, Powell, the owner of Alaska Contractors Bookkeeping Service, a bookkeeping, payroll, and tax service business in Wasilla, Alaska, admitted that she prepared false U.S. individual income tax returns for multiple individuals whose income was primarily derived from the sale of illegal narcotics.  She prepared several of these returns knowing that they omitted substantial gross receipts derived from marijuana sales.  Because Powell omitted the illegal drug sales, the individuals filing these returns falsely claimed and received the Earned Income Credit for tax years 2003 through 2007.

Powell also admitted to preparing returns in which she actively concealed the source of her client’s drug income and that she acted to conceal the source of these funds by creating the appearance that a legitimate business had generated this income. Powell admitted that she created false bills of sale and other documents in order to substantiate the fabricated figures on the return.  She also chose names at random from the telephone book to use as “customers” on these documents, and used the internet to research prices and other information so that the documents would be comparable to those sold in her client’s legitimate business.

Court documents reveal that Powell admitted to preparing two false income tax returns for an undercover agent of the Internal Revenue Service in March 2009.  On the returns, Powell admitted that she fabricated income and expenses.  She also offered to create false invoices and other documents to substantiate the fabricated figures in order to make the undercover agent’s purported drug income appear to come from a legitimate source.

In sentencing Powell to a prison term, Judge Burgess also ordered Powell to pay $13,910 in restitution to the United States Treasury and further ordered that she not prepare tax returns during the period of her supervised release. 

United States Attorney Karen Loeffler noted, “The collection and payment of taxes is a necessary and central part of the United States governmental system.  It is a system that depends on honesty and voluntary compliance for the most part.  In working with the IRS criminal investigators we will continue to vigorously prosecute those who chose to cheat and defraud the government”.         

"Dishonest tax return preparers who abuse their position and file false returns or help others conceal ill-gotten gains from criminal activity run the risk of prosecution. Anyone contemplating manipulation of the integrity of our tax system for personal gain should consider that they may one day find themselves before a judge answering for those actions," said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation Division in Alaska.

Ms. Loeffler commends the IRS Criminal Investigation Division and the Drug Enforcement Administration for the investigation of this case.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a former employee of Wells Fargo Bank was indicted on charges of negotiating forged U.S. Treasury checks on two separate occasions. 

Melissa Licelot Duran-Muniz, 24, of Anchorage, is the sole defendant named in the two-count indictment.  The indictment charges that on April 18 and April 22, 2011, Duran-Muniz used her position to assist others in depositing or cashing two forged U.S. Treasury checks in the amounts of $6,776 and $7,702 respectively. 

According to Assistant U.S. Attorneys Thomas Bradley and Stephanie Courter, who presented the case to the grand jury, this indictment is related to an indictment returned in July 2011 charging multiple defendants with conspiring to defraud the United States by filing false tax returns and negotiating fraudulently obtained tax refund checks.  Defendants in that case used bank employees like Duran-Muniz to further their scheme.

The law provides for a maximum sentence on each count of up to 10 years in prison, a fine of up to $250,000, or both.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant. 

The case was investigated under the purview of the Organized Crime Drug Enforcement Task Force, which is made up of personnel from the U.S. Attorney’s Office, Federal Bureau of Investigation, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Internal Revenue Service–Criminal Investigation, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard and the Anchorage Police Department.

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 Washington woman was sentenced for her role in embezzling $289,000 from Trident Seafoods. 

Anne Wilson, 31 of Kent, Washington, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline, to 16 months in prison. 

According to Assistant U.S. Attorney Aunnie Steward, from January 2008, and continuing until August 2010, the lead defendant Isairis Wolfe, used her position as the book keeper for Trident Seafoods in Kodiak, to write Trident Seafoods checks to four of her personal associates Anne Wilson, Jeremy Smith, Valerie Olivares, and Jamie Fathke.  Wolfe, using her check writing authority at Trident Seafoods, drafted approximately 52 checks on a Trident Seafoods account for approximately $500,000, and made them payable to her personal associates Wilson, Smith, Olivares, and Fathke, as well as to Wilson's minor son L.E. The checks were negotiated by Wolfe and her associates and they shared the proceeds. Wolfe concealed the fraud by creating fraudulent accounting records so that the payments appeared to be legitimate.

Wilson and Wolfe met while working together at Trident Seafoods.  Wilson was fired from Trident Seafoods but stayed in touch with Wolfe.  Wilson approached Wolfe for a loan of a few hundred dollars and instead of granting a loan, Wolfe asked Wilson to join the scheme to defraud Trident Seafoods which she agreed to.  Over a two and a half year period, Wilson negotiated 28 fraudulent checks that were made out to both her and her minor son that totaled $289,660.  Wilson kept half of the money from the fraudulent checks and provided the remaining half to Wolfe.  Wilson admitted that she wired some of the money from the fraudulent scheme to the father of her children who was in Mexico, knowing that he was a fugitive for a murder charge in Texas. 

Wilson said that she knew that what she was doing was wrong but that did not stop her participation in the scheme.  The scheme only stopped when Wolfe was fired from Trident Seafoods for performance related reasons and was no longer in a position to write the fraudulent checks.  The scheme was discovered when an audit of the books and records was conducted by Trident Seafoods.  Wilson admitted in court that she obtained United States citizenship while the scheme was ongoing but before it was discovered by Trident Seafoods. 

Wolfe is scheduled for sentencing on May 22, 2013.  Olivares and Smith are scheduled for sentencing on June 4, 2013.  Fathke was sentenced on January 9, 2013, to 4 months jail for her role in embezzling $30,000 from Trident Seafoods.

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

Anchorage, Alaska – U.S. Attorney Karen Loeffler announced today that a Ketchikan resident was sentenced in Juneau to federal prison for drug conspiracy.
           
Travis E. Straight, 38, was sentenced today by U.S. District Court Judge Timothy M. Burgess to 36 months in prison for his role in a drug trafficking conspiracy. 
           
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation including the DEA, Port of Seattle Police Department and the Ketchikan Police Department involving the importation of heroin into Ketchikan, Alaska, using commercial package delivery services.  In May 2012, Straight arranged with co-conspirators in Washington to use a commercial package delivery service to send 405 grams of heroin to Ketchikan, Alaska, for subsequent distribution. Straight paid for the drugs using drug proceeds and admitted the heroin was intended to be sold to others.
           
Since May 2012, Straight has been incarcerated on related state drug charges to which he also pled guilty.  In the State case, Straight received a sentence of three years in prison with one year suspended. 

Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense, the importance of deterrence regarding the defendant and others, the need for protection of the public, and rehabilitation of the defendant in light of his criminal history, as reasons that supported the imposition of the above sentence. 

Ms. Loeffler commended the Drug Enforcement Administration, Port of Seattle Police Department, and the Ketchikan Police Department for the investigation leading to the successful prosecution of Travis E. Straight.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Bethel man pled guilty and was sentenced in federal court in Anchorage for illegally making and printing an imitation official insignia of the United States Fish & Wildlife Service. 

On March 8, 2013, John Jens Owens, 50, of Bethel, Alaska, was sentenced by United States Magistrate Court Judge Deborah Smith.  The court ordered Owens to pay a fine of $500, was placed on one year probation, and was ordered to make and print an announcement in the Delta Discovery and Tundra Drums acknowledging his wrongdoing.

Owens’ plea agreement included the facts he admitted to in support of the charges:  In May 2010, Owens read an article in the Delta Discovery paper written by a Fish & Wildlife Service refuge officer for the Yukon Delta National Wildlife Refuge.  The next day, Owens copied the official seal of the Department of the Interior United States Fish & Wildlife Service from the U.S. Fish & Wildlife Service website.  After Owens made the imitation of the official seal, he affixed it, without permission, as letterhead to a letter he drafted. 

Owens drafted the letter in order to make it appear that it was written by and came from the U.S. Fish & Wildlife Service, Office of Law Enforcement in the Yukon Delta National Wildlife Refuge.  Owens disseminated false information in the letter.  None of the representations in the letter originated or were approved by the U.S. Fish & Wildlife Service.  Owens then printed the false letter and mailed it to numerous villages in and around the Yukon Delta National Wildlife Refuge.  Owens printed and mailed this fraudulent letter, on official-looking letterhead, in order to get people angry at the U.S. Fish & Wildlife Service.

Yukon Delta National Wildlife Refuge Management personnel were pleased to see resolution to this case, and said they make it a priority to maintain the integrity of information delivered to the public, including information regarding waterfowl management regulations.

Ms. Loeffler commended the United States Fish & Wildlife Service for the investigation that led to the successful prosecution of Owens.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was arraigned on one charge of felon in possession of a firearm. 

            Alando Mark Modeste, 29, also known as “Simba,” pled not guilty to the charge of felon in possession of a firearm. 

According to the information presented to the court, Modeste was found in the possession of a Smith & Wesson revolver and a Taurus, Model 455 Tracker revolver on April 8, 2012.  It is alleged that Modeste has been a felon since July 25, 2005, having been convicted of manslaughter in the Superior Court for the State of Alaska, Third Judicial District.  

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

            The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.  Modeste remains incarcerated pending trial in this case.   

An indictment is only a charge and is not evidence of guilty.  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 February 28, 2013, four residents of Fairbanks, Alaska, were arrested.  These individuals were indicted by a federal grand jury in Anchorage on February 20, 2013, on charges of conspiracy to distribute and possess with intent to distribute heroin and oxycodone pills in Fairbanks, as well as conspiracy to launder proceeds of unlawful distribution of controlled substances.  The indictment alleges that the conspiracy began in September 2010 and continued through October 2012.

            The indictment names Nathan Jackson, 26, Cynthia Hawks, 44, Fabienne Clerc, 22, Hailey Jelinek, 20 and Misty McDonald 25, as defendants.  Jackson, Hawks, Clerc, and Jelinek were all arrested on February 28, 2013, McDonald remains at large.

            The law provides for a maximum sentence of 20 years in prison, a fine of $1,000,000.00, or both.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.

Ms. Loeffler commends the Internal Revenue Service – Criminal Investigation Division, the Alaska State Troopers, the Drug Enforcement Administration and the North Pole Police Department 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 today that Anchorage resident Kenneth Browning, 60, was charged with wire fraud, theft of honest services, money laundering, and false tax returns.  The same indictment also charges Anchorage resident Jerald Briske, 74, with 22 counts of wire fraud. The offenses charged occurred from May, 2008, through April, 2010. 

According to the indictment, Browning was employed as a Federal Property Allocation Officer with the State of Alaska, Department of Administration, Division of General Services, Property Management Office. In this position, Browning was responsible for allocating surplus federal property to qualified state recipients. Briske was a corporate officer for Coast Line Enterprises Inc., a used equipment selling, salvage and mining business run by Briske and located in Anchorage, Alaska.

The indictment alleges a scheme between Browning and Briske whereby Browning would illegally divert surplus federal property intended for qualified state agencies or non-profits to Briske, knowing that Briske was not qualified to receive the property.  Briske, in coordination with Browning, would then sell the fraudulently obtained surplus federal property to other businesspeople in Alaska and elsewhere, and both Briske and Browning would share the illegally obtained proceeds derived from this scheme. 

The indictment alleges that Browning and Briske conducted 22 separate transactions as part of the scheme to defraud.  As a result of the scheme, Browning received approximately $140,150 in illegally obtained payments from Briske. It is alleged that Briske obtained approximately $220,870 worth of property to which neither he nor Coast Line Enterprises Inc., were entitled.

Browning is also charged with 22 counts of theft of honest services fraud for defrauding the state of Alaska.  He is also charged with one count of money laundering by using proceeds of the scheme to purchase a 2004 Ford Mustang convertible.  Browning is also charged with four counts of filing false tax returns for failing to report income from the scheme on his tax returns.  

The maximum penalty for both wire fraud and theft of honest services is 30 years imprisonment with a $250,000 fine.  The maximum penalty for money laundering is 10 years imprisonment with a $250,000 fine.  Filing false tax returns carries a three year term of imprisonment and a fine of $100,000.   An arraignment date has been set for March 27th, 2013.

Ms. Loeffler commends the Internal Revenue Service and the Federal Bureau of 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 today that a registered nurse, formerly of Anchorage, and a recently disbarred California attorney were indicted by the federal grand jury in Anchorage, Alaska, of devising a scheme to obtain in excess of $2 million between May 2007 and August 2009 from the Trusts of Juanita Gielarwoski, now deceased.

Brian Ben-Israel, 53, of Duluth, Ga., and Philip Eric Myers, 60, of Santa Barbara, Calif., were charged by the federal grand jury with one count of mail fraud and three counts of wire fraud.  Ben-Israel was also charged with three counts of filing false tax returns. 

According to the indictment, in 2006, Ben-Israel was a registered nurse residing in Anchorage and working at Meridian Psychiatric Consulting Group.  Ben-Israel met and befriended Gielarowski and her daughter who were both patients of Meridian Psychiatric Consulting Group; Ben-Israel became a health care provider and “financial advisor” to both. Myers, an attorney licensed at the time in the State of California was versed in trust and estate matters.  From at least 2004, Ben-Israel was a business partner and friend of Myers; Ben-Israel introduced Myers to Gielarowski and her daughter. 

Myers was the CEO of Typhoon Security Technology, Inc. located in California, which was formed in December 2001.  As described by Myers, Typhoon Security Technology, Inc.’s mission was to become one of the top three global leaders in explosives and weapons detection technology.  Ben-Israel had a contract with Typhoon Security Technology, Inc. to sell private placement investments for a 10% commission.  Typhoon Security Technology, Inc. was suspended by the State of California in September 2007 and could no longer lawfully conduct business.

The indictment alleges that beginning in 2007, Ben-Israel, using his influence over Gielarowski and acting with Myers, devised a scheme to obtain control over the assets of Gielarowski so that Ben-Israel became a named trustee of the estate and obtained signature authority on bank accounts.  It further alleges that Ben-Israel and Myers caused over two million dollars of monies and assets that were designated for the care and benefit of Gielarowski to be diverted to the personal benefit of Ben-Israel and Myers and also, to the benefit of their joint business venture Typhoon Security Technology, Inc., including a check for $1million secured as an investment in Typhoon Security Technology, Inc. in December 2007. 

The maximum penalty for the mail and wire counts is up to twenty years in prison and a $250,000 fine.  

Ms. Loeffler commends the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division and the Anchorage Police Department for the investigation of this case.

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 three men and a woman have been indicted by a federal grand jury in Anchorage, Alaska, on 46 counts of conspiracy to defraud the government, mail fraud, and aggravated identity theft related to a prisoner tax fraud scheme. 

The four defendants named in the indictment are Anchorage residents Steven McComb, 46, Michael Sexton, 42, Paulando Williams, 47, and Helen Maloney, 44.  McComb, Williams, and Maloney are scheduled to be arraigned in federal court today.  Sexton has not yet been arrested.

According to the indictment, between 2010 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, for which there were no W-2 Forms actually issued by employers.  Each return claimed that the taxpayer was owed thousands of dollars in refunds for which the defendants were not entitled.  The charges allege that the conspirators forged the individuals’ signatures on the false tax returns, used their own personal addresses on those forms and mailed the false income tax returns to the Internal Revenue Service. 

The conspiracy allegation includes that the conspirators prepared and submitted by mail approximately 100 false tax returns using the names and social security numbers of approximately 35 individuals seeking approximately $213,267 in fraudulent refund claims.  As a result of the fraud, the U.S. Treasury sent refunds of approximately $110,698 out of the $213,267 falsely claimed in their fraudulent tax returns. 

The statutory maximum penalty for conspiracy to defraud the government with respect to claims is 10 years’ imprisonment, 3 years’ supervised release, and a $250,000 fine. The statutory maximum penalty for mail fraud is 20 years’ imprisonment, 5 years’ supervised release, and a $250,000 fine.  The statutory penalty for aggravated identity theft is a mandatory consecutive sentence of 2 years’ imprisonment.  All four defendants are charged with a criminal forfeiture allegation for their interest in any property which constitutes or is derived from proceeds traceable to a violation of mail fraud or a money judgment not to exceed $110,698.

Ms. Loeffler commends the Internal Revenue Service – Criminal Investigation Division 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 today that an Anchorage woman was indicted by the federal grand jury in Anchorage, Alaska, for violating federal conflict of interest laws.   

According to the indictment Jodi Ann Andres, 48, of Anchorage, Alaska, was an auditor with the Department of Defense’s Defense Contract Audit Agency (“DCAA”) from January 2003 to September 2006.  During that time, she was the primary auditor of cost proposals, labor rates and claims for the Missile Defense Agency.  The Missile Defense Agency is responsible for developing, testing and fielding an integrated Ballistic Missile Defense System for the United States.

The Alaska Aerospace Corporation, formerly the Alaska Aerospace Development Corporation, was established in 1991 by the State of Alaska to develop a high technology aerospace industry in the state.  Alaska Aerospace became a contractor for the Missile Defense Agency in 2003 and under a five year contract, provided support for launches from the Kodiak Launch Complex in Kodiak, Alaska. 

In September 2006, Andres left employment with the DCAA and began employment with Alaska Aerospace as its Controller.  The indictment alleges that in July 2008, Andres represented Alaska Aerospace during communications and negotiations with the DCAA about the same Missile Defense Agency contract she had previously audited, with the intent to influence the DCAA about that contract, in violation of a lifetime restriction which barred such communications.

The maximum penalty for violating the conflict of interest statute, which imposes a permanent restriction against communicating on behalf of another on a matter in which the person participated personally and substantially as a government employee, is up to five years in prison and a $250,000 fine.  An arraignment date has been set for March 22, 2013.

Ms. Loeffler commends the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, 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 today that a Fairbanks man was indicted by the federal grand jury in Anchorage, Alaska, for bank robbery. 

Zack T. Rose, 22, of Fairbanks, Alaska, was charged by the federal grand jury with robbing the MAC Federal Credit Union, 10th Avenue branch, in Fairbanks on February 4, 2013.

The maximum penalty for robbery of a federal credit union is imprisonment for up to 20 years and a fine of $250,000.  Rose is currently in custody at the Fairbanks Correctional Center and no date has been set for the arraignment.

Ms. Loeffler commends the City of Fairbanks Police Department and the Federal Bureau of 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 B U.S. Attorney Karen L. Loeffler announced today that an Oregon resident was indicted by the federal grand jury sitting in Anchorage, Alaska, for flying without a valid airman’s certificate. The offenses charged occurred in Alaska from April 1, 2010, through June 10, 2010. 

Mark Alan McAlister, age 49, of Medford, Oregon was charged by the federal grand for flying a Piper Supercub, N226T, as a pilot in command when he lacked the necessary airman’s certificate authorizing him to serve in that capacity.

The maximum penalty for flying in command as a pilot without being certified is up to three years in prison and a $250,000 fine.  An arraignment date has not been set.

Ms. Loeffler commends the Federal Aviation Administration 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 today that Hilda Josephine Hernandez-McMullen, 47, of Anchorage, Alaska, pled guilty on Thursday to eight separate felony counts based on her role assisting others in opening bank accounts and fraudulently negotiating tax refund checks using stolen identities.

     Specifically, on February 21, 2013, Hernandez-McMullen pled guilty to seven counts of bank fraud for assisting others to open bank accounts in false names as well as one count of assisting an individual in negotiating a forged U.S. Treasury check.  She faces a maximum sentence of 30 years in prison for each bank account she helped open as well as a maximum sentence of 10 years in prison for her role in negotiating the forged U.S. Treasury check.  Sentencing is currently scheduled for June 10, 2013, before United States District Court Judge Timothy M. Burgess.

     Hernandez-McMullen was indicted in July 2012, along with 10 other defendants for her role in an alleged $25 million dollar tax fraud and identity theft scheme that used stolen Puerto Rican identities to file false tax returns and obtain fraudulent income tax refunds.

     According to her plea agreement, Hernandez-McMullen worked as a personal banker at Wells Fargo Bank in Anchorage between December 2008 and September 2010, and opened several bank accounts for defendants also charged in the scheme. Hernandez-McMullen opened the accounts despite knowing that the names and identifying information used to open them were false.

     Court documents state that these and other bank accounts were then used to negotiate income tax refund checks that defendants in this case were not entitled to receive and which were not in their names.

     Hernandez-McMullen admitted to assisting in the fraudulent negotiation of checks totaling $37,978.15.  She further admitted that she negotiated these checks despite the fact that they were issued to people who were not at the bank at the time the checks were being negotiated. 

     Trial for the remaining defendants in the case is scheduled for May 14, 2013, at 9:00 AM in Anchorage.

          The case is being prosecuted by Assistant U.S. Attorney James Barkeley, Thomas C. Bradley, and Stephanie C. Courter of the U. S. Attorney’s Office, District of Alaska. The 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, Federal Bureau of Investigation, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, ICE Homeland Security Investigations, Internal Revenue Service–Criminal Investigations, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard and the Anchorage Police Department.

     Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites, including the Federal Trade Commission, the Justice Department, the Social Security Administration, and the IRS.

Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that James Michael Wells, 61, of Kodiak was indicted by a federal grand jury for the murders of U.S. Coast Guard Electrician’s Mate First Class James Hopkins and retired Chief Boatswain’s Mate Richard Belisle.  Belisle, who was working as a Coast Guard civilian employee and Hopkins, were murdered at the U.S. Coast Guard Communications Station Kodiak on April 12, 2012. Wells’ is charged with four counts of premeditated murder and two counts of using a weapon in a crime of violence.  All counts relate to the two murders. 

Wells was arrested on February 15, 2013, under a federal arrest warrant based on a criminal complaint.  As charged each count carries a maximum penalty of life in prison. Anyone with knowledge of the facts or information concerning these events is urged to contact the FBI.

Ms. Loeffler notes that the indictment comes after an extensive investigation led by the Federal Bureau of Investigation and the Coast Guard Investigative Service, with support from the Alaska State Troopers.  

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 Homer charter boat captain was sentenced in federal court in Anchorage for one consolidated count of distributing drugs to underage individuals and one count of possession of child pornography. 

Randall Scott Hines, age 34, was sentenced by United States District Court Judge Timothy M. Burgess to ten years’ imprisonment, to be followed by ten years’ supervised release.  Following his release from federal custody, Hines must register as a sex offender for fifteen years.  

In imposing the ten-year sentence on Hines, Judge Burgess stated that the facts Hines admitted in the plea agreement “underscore just how serious this offense was.”  These facts included that between 2008 and 2011, Hines engaged in sexual relationships with a series of teenage girls in Homer.  Hines frequently supplied these same girls with methamphetamine or other drugs, often in conjunction with having sex with them.  Four of the six teenage girls with whom Hines had a sex and drug relationship were under the age of sixteen at the time and thus were under Alaska’s legal age of consent. 

According to Assistant U.S. Attorney Kim Sayers-Fay, who prosecuted the case, Hines ten year sentence and ten year period of supervised release reflects that his crimes involved a pattern of sexual abuse.  Hines also pled guilty to possessing a sexually explicit video clip of him engaged in sex conduct with one of the minor victims.  By virtue of that child pornography conviction, Hines will be required to register as a sex offender for fifteen years following his release from federal custody.   

During his sentencing remarks, Judge Burgess rejected the suggestion that Hines’ own methamphetamine addiction mitigated his culpability for his conduct.  Judge Burgess told Hines, “[T]he bottom line is, in those instances that were outlined and detailed in the plea agreement in this case, there was one adult in the room.  One adult.  And that was you!  You were the adult.  I don’t care if you were drunk.  I don’t care if you were on methamphetamine or oxycodone.  You were the adult in the room, and you didn’t act like the adult in the room”.  Adding, “I hope this is a cautionary tale.”    

Hines’ plea agreement required him to fund a $160,000 trust fund to help victims obtain drug treatment and counseling.  Judge Burgess noted this positive step, but observed that it would not make amends for the crimes, which had “significant and devastating effect on the victims and their families,” many of whom had sought restraining orders against Hines.  As one mother told the court, Hines’ “age and finesse” allowed him to manipulate young women who had “not yet developed the ability to discern or recognize the evilness of his ways.”   

Ms. Loeffler commends the persistence of the victims and their families in this case, as well as the work of the FBI and Anchorage Police Department Vice Unit as part of the Innocence Lost Task Force, whose combined efforts culminated in Hines’ convictions.