District of Alaska

Anchorage, Alaska- U.S. Attorney Karen L. Loeffler announced that a Colorado man was sentenced today in the U.S. District Court in Fairbanks for transporting an unlawfully taken Dall sheep.

Thomas M. McGann, 58, of Longmont, Colorado, pled guilty today and was sentenced by U.S. Magistrate Judge Scott A. Oravec in Fairbanks on a charge that he transported a Dall sheep he had killed illegally.  The court ordered McGann to pay a $10,000 fine, forfeit the sheep, and not engage in hunting for one year.  McGann admitted that he shot an under-sized sheep in the Arctic National Wildlife Refuge (ANWR) in 2008 and transported it to Fairbanks for the required state inspection of the horns, knowing the sheep was unlawful and that one of its horns had been altered to make the kill appear legal.  

According to Assistant U.S. Attorney Stephen Cooper, who prosecuted the case, McGann’s Plea Agreement included the facts he admitted to in support of the charges.  These facts showed that McGann’s guide advised McGann to shoot the sheep while mistakenly believing it was of legal size.  After the kill, they saw that one horn was broken and the other unbroken horn was less than the required minimum of one full curl in length.  McGann’s master guide-outfitter, Joe Hendricks, altered the unbroken horn by hammering it with a rock to obscure the fact that it was less than the legal minimum size. 

McGann, knowing that this alteration had been done, transported the sheep to Fairbanks and presented it for the required Fish and Game inspection.  The sheep passed inspection. McGann later denied he knew the horn had been altered, but other evidence showed he was aware of the illegal alteration before he presented the horns for inspection. 

McGann later admitted he knew that the horn had been altered before the inspection.  McGann acknowledged that Master Guide Joe Hendricks advised him to destroy any kill site photos to conceal the alteration of the horn.  McGann declined to destroy his photos, which showed the sheep before Hendricks broke the horn, and showed the sheep was undersize.  For his part in this and other guiding offenses, Hendricks was sentenced in U.S. District Court in Fairbanks on August 24, 2012, to pay a fine of $125,000 and was restricted from hunting and guiding for five years.  The assistant guide who called the shot is also under indictment on allegations that he played a part in these and other offenses in ANWR.

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

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Kyle Hansen, 25, of Palmer, Alaska, was charged by a federal criminal complaint in Anchorage on charges of assault on a Federal Officer, destruction of government property, and illegally entering a military property.
The three count complaint named Hansen as the sole defendant.
According to the criminal complaint, in the early morning hours of January 19, 2013, Hansen illegally drove a pick-up truck through the Boniface gate at Joint Base Elmendorf-Richardson.
He then tried to exit Joint Base Elmendorf-Richardson through the gate at Government Hill and when that exit was blocked, he then turned around to attempt an exit through the Boniface gate. The charging documents allege that while in Joint Base Elmendorf-Richardson, Hansen struck one Air Force law enforcement officer and a law enforcement vehicle with his vehicle and then crashed through the closed Boniface gate causing significant damage to the gate.
The Air Force Office of Special Investigations conducted the investigation leading to the criminal charges in this case.
A complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that James Leroy Jensen, 59, and Robin L. Jensen, 60, residents of Cordova, Alaska, were sentenced for willfully violating federal income tax laws.

James Jensen had previously pled guilty to evading taxes associated with his 1994 through 1997 income tax returns and was sentenced by U.S. District Court Judge Timothy M. Burgess to 3 years in prison, a $25,000 fine, and 600 hours of community service. Robin Jensen previously pleaded guilty to filing a false 2000 income tax return, and was sentenced by Judge Burgess to 2 years in prison, a $10,000 fine, and 200 hours of community service. 

The Jensen's were also ordered to pay $311,605.65 in restitution to the U.S. Treasury and to file 2006-2009 tax returns as a condition of their supervised release.  The IRS has already levied and recovered $294,537.28 in back taxes that were being held on their behalf by the Exxon Qualified Trust Fund.

According to their plea agreements, James Jensen is a commercial fisherman and Robin Jensen ran a cabin rental business in Cordova.  After the IRS audited their 1994-1997 tax returns, the Jensen’s owed over $100,000 in additional taxes and they began to challenge the jurisdiction of the IRS, and the authority of the federal government to tax them.

In 2001, the IRS recorded a Notice of Federal Tax Lien of $201,029 against the Jensen’s for tax years 1994 through 1997. The Jensen’s appealed the IRS collection process and went to tax court in 2003. At a hearing, the presiding judge said that James Jensen’s arguments about his tax liability were “frivolous gibberish.”  The judge denied the appeal and fined James Jensen an additional $10,000.

Instead of complying with the tax laws, the Jensen’s created several entities including a trust in Nevada and two “corporation soles” in Utah, one of which named James Jensen as “overseer.”  These nominee entities were used to take title to assets that belonged to the Jensen’s, and thereby, open bank accounts for the Jensen’s to conceal income, including over a million dollars accredited to James Jensen’s fishing income between 2004 and 2007.   James Jensen used money from these accounts to purchase at least $100,000 in gold coins and pay off a timeshare condominium in Kahana Beach, Hawaii.

In addition, according to the plea agreement, James Jensen tried to thwart IRS collection efforts by mailing a false document called a “Bill of Exchange” to the Secretary of the U.S. Treasury. This document purported to be a payment of $339,888.81 that would eliminate his tax debt for 1994 through 1997. James Jensen also attempted to use these same false documents to have IRS liens removed from his funds in the Exxon Qualified Settlement Fund.  Both of these attempts failed.

The Jensen’s also filed false tax returns from 1998-2003, claiming they had no taxable income because their earnings were not taxable under the discredited “claim of right” theory.  Finally, the Jensen’s failed to file tax returns from 2004-2007, based on claims that the corporation sole entities they created in Utah, “Rhema Foundation” and “Eyak River Ministries”, were exempt from filing tax returns or paying taxes for religious reasons.

The government’s sentencing memorandum concerning Robin L. Jensen argues that she colluded with her husband to conceal assets from IRS collection efforts and that, rather than fulfilling their tax obligations, the Jensen’s “flooded” the IRS with frivolous literature and for 14 years and used a complex series of schemes to avoid paying their taxes.

During the sentencing hearing, Judge Burgess described the Jensen's tax evasion schemes as "sophisticated, well thought-out, and relentless."  The judge also recognized that the Jensen's, like other tax evaders, still took advantage of all the benefits that the government provides, even without paying their share.

U.S. Attorney Karen Loeffler noted that paying taxes on income is a necessary part of citizenship, and those that simply refuse, for no good reason; to pay their proper share will be justly and properly prosecuted for their wilful crimes.

The case was investigated by the Internal Revenue Service – Criminal Investigation Division and was jointly prosecuted by Assistant U.S. Attorney Bryan Schroder of the U.S. Attorney’s Office for the District of Alaska and Ignacio Perez de la Cruz of the Department of Justice Tax Division.

U.S. Attorney Karen L. Loeffler announced today that Isaac Amparo-Vazquez, 30, also known as David Feliciano-Sanchez and Jesus Angel Quinones-Ortiz, of the Dominican Republic, was sentenced in federal court Friday for his role in drug and tax fraud conspiracies.  Amparo-Vazquez, was sentenced by United States District Court Judge Timothy M. Burgess to 57 months in prison to be followed by 4 years of supervised release.
           
According to court documents, Amparo-Vazquez conspired to import over two kilograms of cocaine into Alaska.  Amparo-Vazquez also conspired to use stolen Puerto Rican identities to file tax returns and obtain fraudulent income tax refunds.  Amparo-Vazquez admitted to making false applications to the Alaska DMV to obtain identification documents in other names.   

In sentencing Amparo-Vazquez, Judge Burgess characterized the defendant’s crimes as “unconscionable.”  The judge noted that not only did Amparo-Vazquez enter the United States illegally, but upon doing so, he helped import more than two kilograms of cocaine into Alaska.  Then, as Judge Burgess stated, the defendant proceeded “to add insult to injury” by conspiring to “rip off” the United States Treasury for substantial sums of money.  The United States estimates that the total loss intended by members of the conspiracy exceeded $25 million.  Amparo-Vazquez was found personally responsible for cashing two Treasury checks totaling just over $11,000.

            Court documents indicate that, between January 2010 and March 2012, Amparo-Vazquez and other co-conspirators defrauded the United States by filing false tax returns and claiming millions of dollars in tax refunds to which they were not entitled.  To accomplish their tax refund scheme, the conspirators obtained the names and social security numbers of individuals from the Commonwealth of Puerto Rico.  They then fabricated individual income tax returns in those names claiming that they were owed thousands of dollars in refunds to which they were not entitled.

According to documents filed by the United States, Amparo-Vazquez convinced certain of his friends and acquaintances to give him their addresses so that U.S. Treasury checks could be sent to the Anchorage area.  Amparo-Vazquez also admitted that he obtained false identification documents from the Alaska DMV and then used these false identification documents to open a bank account, into which account he ultimately deposited a U.S. Treasury check with false endorsements.  On those documents, he admittedly made false claims that he was a U.S. citizen, when in fact he was a Dominican citizen illegally in the United States.

Finally, Amparo-Vazquez admitted that, between December 31, 2011 and January 8, 2012, he conspired with his brother and others to arrange for two kilograms of cocaine to be shipped to Alaska for distribution.  Amparo-Vazquez made telephone calls to discuss the prices to be paid for these two kilograms of cocaine.

“This sentencing is a testament to the results that can be obtained through the collaborative efforts of local, state, and federal law enforcement agencies,” said Tamera D. Cantu, Assistant Special Agent in Charge for the Internal Revenue Service-Criminal Investigation in Alaska. “IRS-CI and our partner agencies will continue to work vigorously to combat tax refund fraud.  This sentence should serve as a deterrent to those that contemplate similar fraudulent actions.”

The case is being jointly prosecuted by Assistant U.S. Attorneys Thomas C. Bradley, James Barkeley, and Stephanie C. Courter of the U. S. Attorney’s Office for the District of Alaska.  The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the U.S. Postal Inspection Service (USPIS), the U.S. State Department’s Diplomatic Security Service, and the Drug Enforcement Administration (DEA).  Additional assistance was provided by the Tax Division of the United States Department of Justice as well as the U.S. Attorney’s Offices for the District of New Jersey, the Eastern District of Pennsylvania, and the Southern District of New York.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that two Southeast Alaska residents, Raymond P. Chatham, 65, of Edna Bay, Alaska, and Joshua Wodyga, 31, of Ketchikan; Alaska, and two Southcentral Alaska residents, John K. Boone, 55, of Valdez, Alaska, and David K. Johnson, 53, of Anchorage, Alaska, were charged with crimes under the Marine Mammal Protection Act.

            Raymond Chatham was charged with illegally transporting 87 dead sea otters and illegal possession of marine mammal parts; in this case, 14 sea otter skulls arising from activities in 2008.  Joshua Wodyga, was also charged with one count of illegally selling a sea otter hide. In other filings, John K. Boone was charged with illegally selling two sea otter hides, while David K. Johnson was charged with one illegal sale of a sea otter hide and one count of illegally selling an unhandicrafted walrus tusk.  These charges also arose from activities undertaken in 2008.

            The charges arose from Operation Enhydra, an investigation conducted by the U.S. Fish and Wildlife Service into the illegal selling of marine mammal parts. Since the investigation ended, 5 individuals have pled guilty and have been sentenced for the illegal take and sale of sea otters, sea otter parts, Steller’s Sea Lion parts, and spotted seal skin parts being sold for commercial gain.

            The United States Fish and Wildlife Service, Office of Law Enforcement (USFWS-OLE) led the investigation that led to the prosecution of these individuals and the investigation benefitted significantly from the support of Alaska Wildlife Troopers, NOAA Fisheries’ Office of Law Enforcement, U. S. Forest Service, Immigration and Customs Enforcement, U.S. Marshals Service, the State of Alaska Attorney General’s Office, the Alaska Bureau of Alcohol and Drug Enforcement, and the U. S. Attorney’s Office.

Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court in Anchorage for twelve counts of false statements to a credit union. 

Lee E. Baker, Jr., 57, from Anchorage, Alaska, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline, to 36 months in prison.

According to Assistant U.S. Attorney Retta Randall, who prosecuted the case, Baker made false statements to Denali Alaskan Federal Credit Union (DAFCU) while drawing down the proceeds of a $9.2 million construction loan obtained for a proposed 85 unit apartment project, “Bryn Mawr,” located on Northern Lights Boulevard in Anchorage.  Baker, as President of Discovery Construction, Inc., submitted 12 draw requests certifying each time that certain work had been completed on the Bryn Mawr project, when actually, very little work had been done and the total amount Baker verified as completed was false. The Bryn Mawr project was never completed. As a result of his false statements, approximately $4.3 million was disbursed to Baker by DAFCU before he defaulted on the loan.

Judge Beistline, after imposing sentence, stated, “Ultimately the success of the banking industry and the construction industry depends on integrity.”  Judge Beistline went on to acknowledge that the construction industry in Alaska faces challenges, but insisted that, “When facing challenges, the highroad must be taken.”  He further indicated that fundamental principles of honesty and integrity are necessary to deal with problems before others get hurt and that the community cannot tolerate this kind of deception.  Giving Discovery Construction credit for work completed on the Byrn Mawr project, Baker was ordered to pay $3 million in restitution.  

United States Attorney Karen Loeffler noted, “Financial crimes such as those committed by Baker create significant and lasting harms on the community as well as the businesses affected.  The Alaska federal law enforcement community is dedicated to working together to investigate and prosecute these serious crimes.”
FBI Special Agent in Charge, Mary Rook, stated, “The FBI will continue to work with our law enforcement partners to address significant financial crimes which impact a wide range of individuals, businesses, and industries.  As is frequently the case, the impact of this crime was more widespread than just those immediately identified as victims, as the losses sustained by Denali Alaskan Federal Credit Union were also felt by its members.”

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, Brenna Sue Hauenstein of Columbus, Ohio, was sentenced in federal court in Juneau for her role in a drug and money-laundering conspiracy.

            Hauenstein, 31, was sentenced by United States District Court Judge Timothy M. Burgess to 24 months in prison and 3 years of supervised release.

            According to information presented to the court by Assistant U.S. Attorney Jack S. Schmidt, the defendant was a member of a large scale drug conspiracy operation where oxycodone was delivered to Juneau, Alaska, from sources located in Sacramento, California, through commercial package delivery services and drug couriers flying on commercial flights.  Oxycodone was delivered to other members of the conspiracy in Juneau for subsequent distribution and drug proceeds were sent back to other co-conspirators located in Sacramento, California, via bank deposits, wire remittance services, or drug couriers.  Hauenstein had lived in Juneau, Alaska, between January 2010 and June 2010, during which time she distributed oxycodone and laundered drug proceeds through local banks with the intent to conceal and disguise the nature, location, source, ownership, and control of the drug proceeds.

            Prior to imposing sentence, Judge Burgess indicated the extreme seriousness of the offense and the substantial need to deter the defendant and others from engaging in such criminal behavior.

            Ms. Loeffler commended the Drug Enforcement Agency (DEA), Internal Revenue Service Criminal Investigations, Port of Seattle Police Department, and the Juneau Police Department-Drug Metro Unit for the investigation leading to the successful prosecution of the above listed defendants.

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

            U.S. District Court Judge Timothy M. Burgess sentenced Juneau resident Darrell W. Dawson, 44, to 170 months in prison, for his role in a drug trafficking conspiracy.  There is no parole in the federal system.

            According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation involving the Federal Bureau of Investigation, United States Postal Inspection Service and Juneau Police Department - Drug Metro Unit involving the importation of methamphetamine into Juneau, Alaska, using a United States Postal Service USPS Express Mail parcel.  In July 2012, Darrell W. Dawson and Gema G. Thomas conspired to transport methamphetamine from the lower 48 to Juneau, Alaska.  Dawson provided Thomas $15,000.00 in drug proceeds for six ounces of methamphetamine. Thomas arranged for and paid for the delivery of six ounces of methamphetamine to be delivered to her business, Peer-Amid Beads, from her source of supply in the lower 48 via USPS Express Mail.  Once received, Thomas 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.  Thomas is scheduled to be sentence on March 8, 2013, for her role in the drug conspiracy.

              Prior to imposing sentence, Judge Burgess stated the serious of the offense, deterrence of the defendant and others, the protection of the public, and rehabilitation of the defendant related to his criminal history as reasons that supported the imposition of the above sentence. 

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

Fairbanks, Alaska -U.S. Attorney Karen L. Loeffler announced today that a Fairbanks man was sentenced in federal court in Fairbanks for two counts of drug trafficking.

Johnathon Butterfield, 23, of Fairbanks, Alaska, also recently of Tucson, Arizona, was sentenced by Chief United States District Court Judge Ralph R. Beistline to 37 months in prison, to be followed by four years of supervised release.

According to Assistant U.S. Attorney Stephen Cooper, who prosecuted the case, Butterfield was one of several persons involved in a cooperative venture to manufacture marijuana and to possess the drug with intent to distribute.  Butterfield pled guilty to conspiracy and also to one count of manufacturing the drug. 

In entering the sentence, Judge Beistline found that Butterfield had participated in cultivating more than five hundred marijuana plants in order to produce the marijuana intended for sale.  The court also found that he had possessed hand guns and ammunition in connection with his commercial operation.

Ms. Loeffler commends the Drug Enforcement Administration and the Alaska Statewide Drug Enforcement Unit for the investigation of this case.

Fairbanks, Alaska- U.S. Attorney Karen L. Loeffler announced today that a Fairbanks man was sentenced in federal court in Fairbanks on January 24, 2013, for three counts of drug trafficking and one count of possessing a firearm in furtherance of the drug trafficking crimes.

Floyd Everett Harshman, 54, of Fairbanks, Alaska, was sentenced by Chief United States District Court Judge Ralph R. Beistline to 120 months in prison, to be followed by five years of supervised release.

According to Assistant U.S. Attorney Stephen Cooper, Harshman supervised several persons in a cooperative venture to manufacture marijuana and to possess with intent to distribute.  Harshman pled guilty to conspiracy and two counts of manufacturing the drug at different locations in the Fairbanks area, and also to one count of possessing a firearm in furtherance of the drug trafficking crimes.

In entering the sentence, Judge Beistline found that Harshman had supervised the cultivation of more than one thousand marijuana plants in order to produce the marijuana intended for sale.  The court also found that he had possessed hand guns and ammunition in connection with his commercial operation.

Ms. Loeffler commends the Drug Enforcement Administration and the Alaska Statewide Drug Enforcement Unit for the investigation of this case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Gary and Marladeen Jokela of Valdez, Alaska, were sentenced for willfully evading Gary Jokela’s tax liabilities for more than a decade.  U.S. District Court Judge H. Russel Holland sentenced Gary Jokela to one year in federal prison.  Marladeen Jokela was sentenced to six months in federal prison, followed by six months of home confinement. 

            According to court filings, the Jokelas last filed a tax return in 1984.  Meanwhile, Gary Jokela had outstanding tax liabilities that had not been paid since at least 1998.  The Internal Revenue Service previously assessed taxes against Mr. Jokela and sent him numerous notices that the Service intended to levy his wages and bank accounts.  When the Jokelas received these notices, both Gary and Marladeen began cashing Gary’s paychecks rather than depositing them to their joint bank account.  In total, Gary cashed more than $170,000 of his paychecks.

            Around the same time, Mrs. Jokela opened a separate bank account in her own name. Neither Gary Jokela's name nor his social security number were associated with this new account. During several of the years at issue in the case, Mrs. Jokela deposited more than $112,000 into her separate account. 

            The Jokelas also made sure that no taxes were withheld from Gary’s wages.  In 2004, Gary submitted an IRS Form W-4 on which he claimed to be “exempt” from federal income tax withholding.  When the IRS subsequently attempted to levy Gary’s wages directly from his employer, both of the Jokelas convinced the office’s bookkeeper not to honor the IRS notices.

The Jokelas admitted that they consistently failed to make any payments to the IRS between 1998 and 2008, they continually spent income on other personal items, including a motor home, a timeshare, and vacations.  Between 2002 and 2008, the couple made more than $150,000 in credit card purchases, including vacations to Mexico and Hawaii; more than $30,000 on a motor home; and of more than $35,000 on other personal vehicles.  Likewise, between 1998 and 2008, the Jokelas made $15,000 in payments on a timeshare in Florida.

            In addition to their prison sentences, the judge ordered the Jokelas to pay restitution in the amount of $51,889, with the express understanding that the IRS will seek interest and penalties on top of that amount.  Judge Holland described the Jokelas’ conduct as “a blatant case of tax evasion” and said that their actions showed a “total lack of respect” for their obligations as citizens, despite their apparent willingness to accept both direct and indirect government benefits.  The judge warned that tax evasion schemes that seem “too good to be true” almost always are.

            The case was investigated by the Internal Revenue Service–Criminal Investigation, and is being jointly prosecuted by Assistant United States Attorneys Thomas C. Bradley and Stephanie C. Courter of the United States Attorney’s Office for the District of Alaska.

Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that a man from Las Vegas was sentenced in federal court in Anchorage for one count of Interstate Travel to Promote Prostitution.  Brandon Michael Gadson traveled to Anchorage in July of 2010, with three women, the youngest of whom was 19 years old, and another man for the purpose of trafficking the women on the internet.  After arriving, Gadson paid for the hotel rooms for two of the women, and his credit card was used to post explicit advertisements on the internet that the women were available for commercial sex acts.  The Vice Squad of the Anchorage Police Department conducted a “sting” operation and Detectives with that unit arrested the three women in less than an hour from the start of the operation. When arrested, Gadson had approximately $10,000 in his pocket, but the three women had only insignificant amounts of cash in their possession.

Gadson, 32, of Las Vegas, Nevada, was sentenced January 18, 2013, by United States District Court Judge Sharon M. Gleason, to 18 months in prison, to be followed by three years of supervised release.  During his period of supervised release, Gadson is restricted from use of the internet without his probation officer’s permission.  The sentence imposed was in accordance with the United States Sentencing Guidelines for this crime.

According to Assistant U.S. Attorney Daniel R. Cooper, Jr., Gadson appeared in at least three videos published on YouTube, all of which lyricized the degradation of women through sex trafficking, and promoted the exploitation of women through physical force.  In his sentencing remarks, Cooper noted the Alaska State Legislature’s recent recognition that prostitution is in reality sex trafficking.

In imposing sentence, Judge Gleason termed Gadson’s conduct demeaning to women, and called his crime reprehensible.  Judge Gleason found that Gadson was a long time trafficker, essentially living off of women, and so proud of his conduct that he had the word “Pimp” tattooed on the side of his neck.  Judge Gleason noted that the tattoos and videos in which Gadson appears are despicable ways to project his sense of self to his family and children.  Judge Gleason also said that Gadson’s conduct towards the women he had trafficked, and the videos in which he appeared, were despicable, as was his living off them.  Moreover, Judge Gleason found that the assaultive behavior described in the police reports with respect to Jane Doe 1 was egregious. 

U.S. Attorney Loeffler stated: “The United States Attorney’s Office, in conjunction with the Anchorage Vice Squad and the Federal Bureau of Investigations’ Innocence Lost Task Force, has prioritized the investigation and prosecution of sex trafficking, with particular emphasis on trafficking and exploitation of children and Native Alaskans.  We will work with our State, Local and Federal partners to continuously and systematically attack this most exploitive of crimes.”

Ms. Loeffler commends the Vice Squad of the Anchorage Police Department for the investigation of this case, with the support of the Federal Bureau of Investigations’ Innocence Lost Task Force.

Fairbanks, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Arizona man was sentenced in federal court in Fairbanks, Alaska, on Friday, January 18, for two counts of drug trafficking.

Nathanael Harshman, 20, formerly of Fairbanks, Alaska, and recently from Tucson, Arizona, was sentenced by Chief United States District Court Judge Ralph R. Beistline to 60 months in prison, to be followed by four years of supervised release.

According to Assistant U.S. Attorney Stephen Cooper, who prosecuted the case, Harshman was one of several persons involved in a cooperative venture to manufacture marijuana and to possess it with intent to distribute by selling.  Harshman pled guilty to conspiracy and also to one count of manufacturing the drug. 

In entering the sentence, the judge found that Harshman had participated in cultivating more than one thousand marijuana plants in order to produce the marijuana intended for sale.  The court also found that he had possessed hand guns and ammunition in connection with this commercial operation.

Ms. Loeffler commends the Drug Enforcement Administration and the Alaska Statewide Drug Enforcement Unit for the investigation of this case.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Sherman Roger Alexander, 58, a resident of Ketchikan, Alaska, pled guilty and was sentenced to three violations of the Marine Mammal Protection Act for his role in the illegal taking of 87 sea otters, the failure to tag the hides as required, and for the illegal selling of marine mammal parts.  Alexander was the fourth individual to be convicted and sentenced as a result of U.S. Fish and Wildlife undercover investigation into the illegal taking and selling of sea otters in Southeast Alaska.

            As part of the proceedings in court, Alexander pled guilty to three charges involving the illegal take, sale and recording of unlawfully taken sea otters.  Between April 23, 2008, and May 4, 2008, Alexander hunted sea otters with another person using that individual’s boat.  The boat owner/driver herded sea otters to Alexander and, after the otters were killed assisted Alexander with their transport.  Eighty-seven sea otters were killed during these hunts and Alexander unlawfully gave 14 sea otter skulls to the boat owner/driver after the hunts. Only Alaska Natives are allowed to take marine mammals and the charged hunting practice used by Alexander was illegal.  As to the other violations, Alexander failed to record any of the 87 otters he killed, as required by the law.  The approximate value of the illegally taken pelts is $30,000.  As to the third count, Alexander admitted to selling a sea otter blanket from an illegally taken sea otter to an individual who was not an Alaska Native.  The blanket also contained marine mammal parts that are illegal to sell to a non-Alaska native.

            Alexander received a sentence of 6 months home confinement, and was ordered to pay a fine of $10,000, forfeit 144 sea otter hides and serve probation for a period of one year.  During that one year period, Alexander is not allowed to hunt, nor partake in any business involving sea otters.  The United States agreed with the court that Alexander could teach tanning and other skills to other members of the Haida/Tlingit community during his term of probation or home confinement.

            Alexander was the fourth individual sentenced in the U.S. Fish and Wildlife Service’s undercover operation into the illegal take of sea otters.  In 2009, Christopher R. Rowland, a non-Alaska Native and resident of Craig, Alaska, was sentenced to 37 months in prison, a fine of $5,000 and 3 years of supervised release as a result of his conviction in federal court on felony charges of violating the Lacey Act and the Marine Mammal Protection Act, among other crimes.

            At the time of Rowland’s sentencing, the United States Attorney’s office advised the court that Rowland was extensively engaged in the illegal hunting, killing, and export of sea otters, sea lions and harbor seals and the illegal sale of their pelts.  As explained to the court, the investigation started as a response to a concerned citizen’s tip that non-Alaska Natives were illegally killing sea otters for their pelts.  IN following leads subsequent to this tip, the investigation developed into a two-year undercover operation into the illegal killing and commercialization, by non-Alaska Natives and Alaska Natives alike, of sea otters, seals, and sea lions, and all of which are protected by the Marine Mammal Protection Act.  During the undercover investigation, agents documented the activities of Rowland, Alexander, Michael Smith and Douglas Smith in the illegal take of sea otters, the illegal sale of their pelts, and the failure to record and report harvest data as required by the Marine Mammal Protection Act as well as the sale of animal parts from animals protected by the Endangered Species Act.

The undercover operation revealed that Rowland conducted frequent and well-planned hunting trips to harvest sea otters and sell their pelts on a commercial scale and without regard to the consequences of his illegal activities.  Rowland informed agents that he researched the regulations and laws governing sea otters by anonymously contacting various government agencies, including the U.S. Fish and Wildlife Service, for information on marine mammal rules and regulations.  Thus armed with regulatory and legal information, Rowland gained a clear understanding on how best to conceal his crimes, and was able to put that understanding into practice.  Rowland also took the additional steps to maximize his hunting time at sea by studying the work of biologists and other population distribution studies of sea otter populations in Southeast Alaska. From these habitat and population studies, Rowland learned of the best sea otter rafting and congregation areas where the mammals would present a larger concentration of targets.

In April, 2010, that Douglas Linn Smith, a resident of Craig, Alaska, was sentenced to one year in federal prison after pleading guilty to two felony charges of conspiracy to violate the Lacey Act and a single violation of the Lacey Act.  In connection with his guilty plea and sentencing, Assistant U.S. Attorney Steve Skrocki advised the court that Smith, who is not an Alaska Native, was involved in a conspiracy to illegally take, transport, sell, and attempt to sell illegally killed sea otters on the open market via the internet. He also pled guilty to the sale of parts of a Steller’s Sea Lion, an marine mammal listed as threatened in Southeast Alaska by the Endangered Species Act.

            In July, 2011, Sitka resident, Michael E. Smith, 36, was sentenced by the Honorable Leslie Longenbaugh, United States Magistrate Judge for the District of Alaska, to six months imprisonment for illegally selling two tanned sea otter pelts to an undercover officer in violation of the Lacey Act.

            Smith, an Alaska Native, illegally sold two whole sea otter pelts to a non-Alaska Native undercover agent for $800 in violation of the Marine Mammal Protection Act. The tanned pelts were then shipped outside of Alaska to the undercover agent in violation of the Lacey Act.  As part of his sentence of six months imprisonment, Smith was placed on a one year term of supervised release and during that time cannot hunt, or in any way participate in the take, sale or manufacture of marine mammals or marine mammal products.  Smith was also required to forfeit a firearm used in connection with the offense.

           
The United States Fish and Wildlife Service, Office of Law Enforcement (USFWS-OLE) led the investigation that led to the prosecution of these individuals and the investigation benefitted significantly from the support of Alaska Wildlife Troopers, NOAA Fisheries’ Office of Law Enforcement, U. S. Forest Service, Immigration and Customs Enforcement, U.S. Marshals Service, the State of Alaska Attorney General’s Office, the Alaska Bureau of Alcohol and Drug Enforcement, and the U. S. Attorney’s Office. 

Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that a Fairbanks area man has been indicted by the federal grand jury for two counts of using interstate commerce facilities with the intent that a murder for hire take place in either Indiana or Michigan. The indictment returned by the grand jury charges Fairbanks area resident Eric Donald Grabber, 55, with one count of causing another person to travel from Alaska to Indiana on December 29, 2012, with the intent that a contract murder of another individual take place in either Indiana or Michigan. The indictment charges Grabber with a second count of making a cellular telephone call on January 3, 2013, from Alaska to Michigan in furtherance of the murder for hire plot.

Assistant U.S. Attorney Joseph Bottini, who presented the case to the grand jury, indicated that the law provides for a sentence of up to ten years as well as a fine of up to $250,000.00.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. 

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

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

Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that a woman from Anchorage, Alaska was sentenced on Thursday, January 10, 2013, in federal court in Anchorage for her role in an Anchorage drug distribution conspiracy. 

Erica Tolliver, 35, from Anchorage, Alaska, was sentenced by United States District Court Judge Timothy M. Burgess to 84 months in prison and 3 years of supervised release for her role in a conspiracy to distribute crack cocaine in Anchorage.  Tolliver had previously plead guilty to an indictment charging her and her co-conspirator, Kelvin Washington, a/k/a, “Special K,” with one count of drug conspiracy.  Her co-conspirator, Kelvin Washington, a/k/a, “Special K,” was sentenced to 96 months in prison and 3 years of supervised release for his role in the conspiracy on November 20, 2012.

According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, Tolliver and Washington made several sales of crack cocaine out of their shared residence in an Anchorage apartment to a confidential informant working for the Anchorage Police.  Anchorage Police searched the apartment and found more crack and powder cocaine, as well as two firearms, and nearly $10,000 in cash.  Interspersed with the $10,000, Anchorage Police found money they had used to purchase the crack cocaine from the co-conspirators.  The total amount of cocaine that was recovered through controlled sales to a confidential informant and during the search of the apartment was 26 grams of crack cocaine and 68 grams of powder cocaine.

            Ms. Loeffler commended the Anchorage Police Department, Alaska State Troopers and Drug Enforcement Administration for the investigation leading to the successful prosecution of Tolliver.

Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that a Petersburg resident was sentenced in federal court in Juneau to 12 years in federal prison for the distribution, receipt, and possession of child pornography.

On January 7, 2015, Tye Leif Petersen, 46, a resident of Petersburg, Alaska, was sentenced by United States District Court Judge Timothy M. Burgess.  Upon completion of his prison term, Petersen must complete a 25 year term of supervised release.

Petersen was sentenced to 144 months (12 years) in prison for a count of distribution, receipt, and possession of sexual explicit images and videos of children.  Many of images were of prepubescent children engaged in sexually explicit conduct. The sentences are to run concurrently.

According to Assistant U. S. Attorney Jack S. Schmidt, Petersen, who had no criminal record, worked as the Director of Maintenance for the Petersburg School District.  Petersen had distributed, received, and possessed over 2,000 images and 39 videos that included children under the age of twelve and material depicting sadistic or masochistic conduct.  Petersen, in his position as Director of Maintenance, surreptitiously took pictures of children at the local high school and in the community of Petersburg.  Petersen also obtained additional images from electronic media in the school’s lost and found, and on school-issued computers where Petersen recovered images using a software recovery program to obtain deleted images from the computers.  Petersen then used those images to trade for child pornography on a Russian website that is solely used for the distribution and receipt of child pornography. 

In ordering Petersen’s sentence, Judge Burgess noted the seriousness of the underlying offense and that Petersen’s actions were a “betrayal of trust” and “a level of betrayal and breach of trust that goes beyond what happens in most cases.”  Judge Burgess further stated that the images the defendant took and used to trade for child pornography are “out there on the internet, forever.”  Judge Burgess further noted the need to deter the defendant and others, the need to protect the public from the defendant, and the need to provide treatment for the defendant as reasons for the sentence imposed.

Ms. Loeffler commends the Federal Bureau of Investigation and Petersburg Police Department joint investigation of this case.