The body of a 30-year-old Anchorage man missing since October has been found in a Palmer lake.
Alaska State Troopers say the body has been tentatively identified as that of Shannon Lovell, who was last seen at around midnight Oct. 15 leaving a Palmer home on foot.
Final identification awaits forensic tests but a tattoo on the body and clothing match a description of Lovell.
The body was found Friday night in a lake near Palmer's Lakeshore Loop.
Troopers say an autopsy detected no foul play in the man's death.
Tentative ID Made on Body Found in Palmer Lake
Governor Writes Letter to UA over Sports Leadership
The public backlash surrounding the University of Alaska sports leadership has made enough noise for Governor Sean Parnell to pen a letter to UA President Pat Gamble.
The Governor's office confirmed Tuesday that Parnell wrote a letter to Gamble dated May 23 and copies were also sent to the UA Board of Regents and the University of Alaska Anchorage Chancellor Tom Case.
"Recent substantial press coverage and public contacts with our office regarding University of Alaska athletics compel me to write," Gov. Parnell wrote in the letter. "These communications are about much more than the search for a hockey coach, and date back several years, encompassing numerous UA sport teams. I have waited for action from the University's leadership; however to date no decision appear to have been made nor communicated publicly."
Parnell's letter ends with a strong plea to make changes and "stand for accountability, integrity, and professionalism."
On Monday, Don Winchester and Steve Nerland, longtime supporters of UAA sports, announced their support for Dr. Cobb by forming a new group called "Stand Up for UAA Athletics." In April, the Alaska State Hockey Association and the UAA Hockey Alumni issued votes of no confidence for Dr. Cobb. Nerland hinted at the Governor's letter in a brief media event Monday afternoon.
"Over these last four or five days, culminating in some things this weekend, we felt we needed to speak out," Nerland, with Stand Up for UAA Athletics, said. "If other folks are like minded and want to address that to the statewide administration, we would appreciate that."
"It doesn't matter if they are playing tiddly winks, he's going to be competitive - that probably upsets some people," Winchester, with Stand Up for UAA Athletics, said.
UAA Chancellor Tom Case said in a Tuesday afternoon email that he regrets the statement made by the group.
"The comments made yesterday by the newly-formed 'Stand up for UAA Athletics Group' do not represent my views nor the views of the UAA administration," Case said. "While I understand that support was intended, parochialism founded on baseless fear is the enemy of UAA's success."
Recent allegations were made by a former player that former UAA hockey coach Dave Shyiak struck a player with his hockey stick during a practice in 2011. Shyiak coached the Seawolves for the last eight years and finished this past season with a record of four wins, 25 losses, and seven draws.
A revised UAA hockey coach search committee will unveil a new list of finalists later in the week.
Governor Parnell's letter can be read below:
Governor Parnell Letter to UA President Pat Gamble
Contact Neil Torquiano
German Hikers Airlifted From 'Into the Wild' Bus
Alaska State Troopers say they sent a helicopter to rescue three hikers stranded near a bus on the Stampede Trail made famous by the book and movie, "Into the Wild."
The helicopter Monday picked up 21-year-old Florian Gerner, 20-year-old Roger Karl and 19-year-old Eric Schlegel.
The German hikers say there were able to cross the Savage River on their way in but that high water prevented them from returning.
The Fairbanks Daily News-Miner reports a Healy man met the hikers last week and called troopers to say they were overdue.
"Into the Wild" tells the story of Chris McCandless, who hiked to the bus in April 1992 with little food and equipment and starved to death after about four months.
Victim's Sister Takes the Stand in Jones-Nelson and Harris Trial
On Tuesday, jurors heard testimonies from two women who were romantically involved with the defendant of the Jones-Nelson and Harris case. Trial began with testimony from Katina Mitchell, who dated both the victim, Devante Jordan, and the man on trial for his death, Marquinn Jones-Nelson.
Attorneys for Jones-Nelson did not deny that their client shot Jordan, but instead are trying to prove it wasn't planned.
When Mitchell took the stand, defense attorney Jon-Marc Petersen asked her about the demeanor of Jones-Nelson following the shooting.
Mitchell said, "He was saying sorry, just for the fact that he knew what Devante meant to me not necessarily being remorseful."
The prosecution is arguing that Jones-Nelson did not shoot Jordan in self-defense, but because Jordan was rumored to be a snitch. The prosecution called Jordan's sister to the stand following Mitchell.
Shaneka Jordan said "just about everybody" was calling her brother a snitch. Jordan said the reason people thought her brother was a snitch is because a six-hour interrogation audio tape of her brother was circulating through her group of friends. She said the audio tape included questioning about the Desiree Douglass shooting in 2009.
Jordan also spoke about the last time she ever saw her brother alive.
"He gives me a kiss on my forehead and [Devante Jordan] kisses his son on his forehead and he says I love you, I'll be back. And he left. That's the last time I seen him," said Shaneka Jordan.
Jordan explained that she was romantically involved with Parrish Harris for about three years but the relationship ended after her brother's death. During court the prosecution asked her to identify a gun that she says Harris showed her just hours before her brother was killed.
The defense for Harris said her response to some questions Tuesday were different from what she told a grand jury one year ago.
Both the prosecution and defense took issue with discrepancies in witness testimony Tuesday. The trial is expected to last until the first week of June.
Contact Mallory Peebles
Suspect Arrested After Four-Story Fall at Anchorage Hotel
A man sustained minor injuries when he tried to escape Anchorage police Monday by crawling through a fourth-story window of the Extended Stay Deluxe Hotel in Downtown Anchorage.
According to APD spokeswoman Dani Myren, the man - later identified as Kevin Fisher, 20 - attempted to flee by dangling a bedsheet out the window and rappelling to the ground. Fisher told police he was trying to distract officers from at least one of three other people who were holed up inside the hotel room, but ended up falling instead.
Police arrived at the hotel, at 108 E. 8th Ave., at about 6:30 a.m. Monday after receiving an anonymous tip that a man sought by authorities on existing warrants was using a room at the hotel as a hideout, unbeknownst to hotel owners.
Upon arrival police identified the vehicle of the man in question - Ricky Amosa Siasaga Lokeni, 28 - parked in the hotel parking lot.
Fisher's plan didn't go exactly as according to plan, Myren explained.
"He was hoping he could distract officers so Ricky could get away," Myren said.
When police found the hotel room Lokeni was occupying, they also discovered the door was blocked by one of the reclining chairs within the room. Myren said Lokeni - 6-feet-tall, weighing approximately 250 pounds - had found an interesting spot to evade police.
"They found Ricky hiding inside the cabinet underneath a sink," Myren said.
In addition to Fisher and Lokeni, two women were discovered in the middle of the hotel room hiding underneath a blanket. Roxanne Manglona, 27, and Lila Analisa Mua'ava, 30, were also arrested.
All four suspects were arrested on second-degree trespassing and third-degree theft charges. Fisher and Lokeni were also charged with resisting arrest and hindering a police investigation.
Contractor Says Kulluk Tow Line OK Before Grounding
An employee of a Royal Dutch Shell PLC contractor says towing equipment appeared to be in order before a Shell drilling barge left an Aleutians Island port last December.
William Hebert of Delmar Systems, Inc. testified Tuesday before a Coast Guard investigation panel investigating the grounding of the 266-foot diameter Kulluk.
The floating rig broke free from towing lines and ran aground Dec. 31 off an island near Kodiak.
A key piece of the tow system, a metal shackle, was not recovered.
Hebert says he was in Seattle last summer when the shackle was installed before the Kulluk's trip north.
He says he saw it again in December in Dutch Harbor after the Kulluk's return from the Beaufort Sea and the shackle showed no sign of deformity.
Man from United Kingdom Falls Overboard, Dies in Rafting Trip near Hope
Officials with a Chickaloon-based rafting company say a man died after a rafting trip near Hope Monday, during which he fell overboard and was medevaced to Anchorage.
Nova River Runners owner Chuck Spaulding says Steven Morton fell into the water while he was on a half-day run of the company's Six Mile Creek rafting trip, which began at 9 a.m. Monday.
"We had to perform a rescue to get him out," Spaulding said. "We had to perform CPR on him."
According to Spaulding, Morton was subsequently medevaced to Providence Alaska Medical Center. Providence officials say hospital records Tuesday afternoon list Morton as deceased, but couldn't provide details on how he died.
Spaulding says guides are still being interviewed about the circumstances of Morton's death, but initial uncertainties about the details are similar to those in the company's only other fatality -- the death of Anchorage doctor Gary Archer, 60, whose raft overturned June 28, 1997 on Six Mile Creek.
"People aspirate water, maybe they had a heart attack when they fell in -- we just don't know," Spaulding said.
According to Spaulding, water levels along the creek have been elevated by recent snowmelt which has led to flooding in other areas of the state, including the Yukon River. A gauging station on the creek read 10.6 to 10.7 feet of water Monday night, versus typical levels of 9 to 11 feet of water; Nova employees typically suspend trips on the creek when water levels reach 11 to 11.2 feet.
"We're still kind of in shock right now," Spaulding said. "We've put a hold on the trips (along Six Mile Creek) for a few days."
Spaulding says changing weather conditions, such as lower temperatures or increased cloud cover, may reduce snowmelt and in turn let water levels on the creek fall in the near future.
An audio report, taken from the top of Denali, posted by the company "Mountain Trip' says Morton summited Denali just a few days before the accident on May 23rd. Morton was from the United Kingdom.
AST spokesperson Beth Ipsen says a trooper familiar with the incident wasn't immediately available for details Tuesday afternoon.
Editor's Note: KTUU's Rebecca Palsha provided additional details on Morton's climbing background.
Contact Chris Klint
Group Gives Alaska C-plus on Bridges
The American Society of Civil Engineers also says 12.5 percent are considered functionally obsolete. APRN reports those bridges might be in good shape but don't meet contemporary engineering standards.
Patrick Natale is executive director of the organization. He says Alaska gets a C-plus on his group's infrastructure report card.
Jeremy Woodrow, a spokesman for the state transportation department, says that grade is fair. He says infrastructure across the country is aging. He says the department inspects each bridge in Alaska every two years to determine which need the most attention. Those bridges are judged on a scale of zero to nine, with anything below a seven getting attention or shut down.
Joe Miller Officially Challenging Incumbent Sen. Mark Begich
Former Republican Senate candidate Joe Miller has thrown his hat into the ring against Democratic incumbent Senator Mark Begich.
Miller filed paperwork with the Federal Election Commission earlier this month.
In his statement of candidacy, Miller listed "Citizens for Joe Miller" as his principal campaign committee.
Sen. Begich filed for re-election last summer.
Lt. Governor Mead Treadwell has not filed any paperwork to officially run as of May 28, but he has launched an exploratory committee looking into a potential run.
In April, Miller launched an exploratory committee for the 2014 election. In 2010, he won the Primary, however lost to Sen. Lisa Murkowski who won the General election via write-in votes.
Editor's Note: KTUU's Neil Torquiano contributed to this story.
Contact Clinton Bennett
Family Members of Victims Fill Courtroom to See Accused Murderer
Jerry Active, 24, attempted to shield his face at his arraignment on Sunday and this afternoon, he waived his right to appear at his pre-indictment hearing.
The hearing lasted less than a minute Tuesday afternoon and the judge scheduled Active's next hearing for Wednesday, June 5 at 2:30 p.m.
Since 2003, Active has appeared in court for number run-ins with the law, including more than 10-alcohol related charges, trespassing, and assault. In 2010, he registered as a sex offender in Alaska.
According to the Department of Corrections, 95% of all inmates will at some point be released back to the community.
Despite the charges and the DOC's repeated attempts to revoke his probation, the court ordered his release because he had served his time.
"He had to be released, there was nothing we could do to keep him in custody," said Ron Taylor, Deputy Commissioner, Department of Corrections. "Obviously when the court gives a sentence, the person has to serve that sentence, and when they're done they're released to the community."
Active's family declined Channel 2 News' request for an interview, but one family member told us in an e-mail that Jerry would not have committed any such crimes if it had not been for alcohol. They wrote, "he was really drunk and doesn't remember anything about the crimes."
According to officials, it took only 12-hours from the time Active was released last Saturday before he was back behind bars accused of murder.
Contact Blake Essig
Man Who Tried to Open Exit Door Mid-Flight Appeared in Court Today
An Arizona man who caused an in-flight disturbance during an Alaska Airlines flight Monday appeared in court today.
Alexander Herrera, 23, attempted to open an emergency exit during a flight from Anchorage to Portland.
According to the criminal complaint, Herrera began acting strange during the flight and asked the woman sitting next to him, "What would you do if I open the exit door?"
Passengers managed to stop him and restrained him to a chair with shoelaces and seat belt extenders. Herrera told investigators that he is bipolar and had not been taking his medication.
Herrera did not enter a plea, he remains in an Oregon jail pending a hearing.
Contact Jessica Ridgway
No Injuries Reported from Midtown Multiplex Fire
The Anchorage Fire Department responded to a structure fire on the 900 block of E. 45th Court shortly before 5:45 a.m. Wednesday.
According to AFD spokesperson Al Tamagni, 12 fire trucks arrived at the sixplex; only one unit was damaged. Smoke was visible outside the structure, but flames were not.
Tamagni said the Battalion Chief at the scene described the fire as a "minor fire."
The fire was under control by 6:07 a.m. with no injuries reported.
Contact Jessica Ridgway
Trooper Officials Believe Soldotna Homicide/Suicide Driven by Domestic Violence
An elderly man and woman found dead in an apparent murder suicide Tuesday evening in Soldotna have been identified.
On Wednesday, Alaska State Troopers identified the deceased as 69-year-old Earl Moore and 66-year-old Lynda Moore, both of Soldotna.
According to the Associated Press, AST officials have identified the Moores as a recently divorced couple, leading investigators to believe the homicide/suicide may have been motivated by domestic violence.
Around 5:22 p.m. Tuesday, AST began investigating two people found dead near one of the person's home in the Skyline neighborhood.
Troopers wrote, "initial indications are that these persons are known to one another, and this event appears to possibly be a domestic violence homicide, immediately followed by a suicide."
The Alaska Bureau of Investigation will continue the investigation. Next of kin have been notified.
Channel 2's Jessica Ridgway contributed to an update of this story.
Contact Neil Torquiano
Overturned Big Rig Stalls Southbound Traffic on C Street
An overturned one-ton truck and trailer has stalled traffic in the southbound direction of C Street between 76th Avenue and Dimond Boulevard.
The accident occurred just before 2 p.m. Wednesday.
It's unclear what caused the truck to overturn; however, comments from officers indicate one of the truck's axles may have broken, said Anchorage Police Department spokeswoman Dani Myren. The accident caused the truck's load of building supplies to spill into southbound lanes of traffic, Myren said.
A community service officer is on the scene assisting drivers and rerouting southbound traffic west to 76th Ave and then south to Arctic Blvd.
APD dispatchers say C Street was reopened to traffic at about 4:30 p.m. Wednesday.
No injuries were reported, and no collateral damage appears to have occurred.
UAA Releases Athletic Director Cobb
University of Anchorage Alaska Athletic Director Steve Cobb has been asked to step down from his post, effective immediately.
The sudden news was made public in a press release published at about 2:18 p.m. Wednesday. The statement alludes to Cobb's inability to "bring all elements of the public together in support of UAA, and that criticism of (Cobb) has become a distraction from the great work that UAA does every day," despite his remarkable achievements.
In recent weeks Cobb has become a lightning rod over his handling of allegations that Seawolves hockey coach Dave Shyiak struck a player with a hockey stick during a 2011 practice, as well as the off-again, on-again search for Shyiak's replacement.
That criticism apparently reached a head Tuesday, when Gov. Sean Parnell sent University of Alaska President Pat Gamble a letter saying concerns over UA's sports leadership -- including no-confidence votes by hockey and alumni groups -- "compel me to write." Parnell told Gamble he had waited for UA leaders to demand changes, but had yet to see any changes made or announced.
Senior associate athletic director Tim McDiffett will serve as interim athletic director as a search committee is formed to find a replacement for Cobb. Another supplemental search committee for the next hockey coach continues its work to announce finalists soon.
The news has sent shockwaves online as well as through organizations for and against Cobb and his work at UAA.
"We are sad to hear that Dr. Steve Cobb will no longer be the UAA athletic director," wrote Standup for UAA Athletics spokesman Don Winchester in an emailed response. "Under his leadership, UAA teams and individual student athletes set historic all-time highs with 27 championships won."
"Apparently those achievements were not important to the UA Statewide Administration in Fairbanks," Winchester added.
Regarding the investigation into Shyiak, Chancellor Tom Case said: "I am particularly pleased that there was no evidence of intimidation of players and that the investigation confirmed that AD Cobb did in fact conduct a good faith review of the allegations at the time."
"In hindsight, it may have been more appropriate to have simply referred the matter to police at the time. However, Dr. Cobb concluded that the allegation was overstated, as has proven to be the case," Case said. "Nevertheless, UAA takes seriously the need for students and student-athletes to feel safe at UAA and we will redouble our efforts to ensure that all students and employees understand reporting procedures for safety-related issues."
Reporter Chris Klint contributed to this story.
State Reviewing Case Files of Accused Murderer
The Department of Law says it's reviewing the former case files of a man charged in the deaths of two Anchorage residents over the weekend.
On Wednesday, three Democratic state legislators sent a letter to Alaska's attorney general, asking that he investigate the circumstances surrounding the Jerry Andrew Active's release from prison in an earlier case.
State corrections records show Active was released hours before the Anchorage couple was slain. Active faces charges including murder and sexual abuse of a minor in connection with the incident Saturday in Anchorage.
The Anchorage Daily News reported Active was convicted in 2010 on charges of attempted sexual abuse of a minor and trespassing. He was released in 2011 and put on probation.
A corrections spokeswoman told the paper Active violated his probation repeatedly.
New Seward Work on Schedule after Bridge Delays
State officials say summer construction work on the New Seward Highway near its intersection with Tudor Road remains on schedule, despite delays imposed by bridge components that failed tests last year.
According to Tim Croghan, a regional construction engineer with the Alaska Department of Transportation and Public Facilities, traffic diversions related to the project should end in a matter of months.
"We're expecting to be in our final configuration by the end of this construction season," Croghan said.
The project, intended to expand and update the busy New Seward corridor south of 36th Avenue, was meant to be completed by last winter. Associated bridge work was held up last fall by the discovery that bearing pads upon which the spans are meant to rest were faulty, causing the project to be delayed through winter with several speed reductions and traffic diversions implemented in the area.
Croghan says the bridging issues weren't limited to the New Seward project in which the general contractor, Quality Asphalt Paving, had relied on two separate suppliers for bearing pads.
"It's my understanding that all the bridges we built statewide last year had problems getting bearing pads to meet specifications," Croghan said. "It's not uncommon to have one issue on one project, but it's kind of unusual to have manufacturers -- to have issues with both of them."
Croghan says the state hasn't seen significant overages beyond the project's $39.4 million bid cost, because the New Seward contract requires QAP to absorb losses from causes like the bearing-pad issue.
Michael San Angelo, DOTPF's statewide materials engineer, says the pads -- 1-foot-tall pieces of synthetic rubber, with alternating layers of rubber and reinforcing steel plates -- had failed cold-weather shear tests in which they were frozen at 40 degrees below zero for 28 days, then subjected to stress both frozen and at 78 degrees. The pads are supposed to retain flexibility throughout the test, but weren't doing so.
San Angelo said a single bearing-pad supplier, which he declined to name, had provided faulty pads meant for five Alaska bridges in four separate projects.
Hiring or firing individual suppliers is a decision left to general contractors, and San Angelo says that one contractor affected by similar issues had to ask a supplier to provide four or five different bearing pads before a version passed DOTPF inspection.
"We weren't necessarily happy about that," San Angelo said. "But on the fifth time, we were successful."
While DOTPF employs in-state inspectors for materials finished on-site like coatings and welding, San Angelo says the department also contracts with Outside consulting firms to inspect project materials at their manufacturers' plants. As the New Seward case shows, it's a move that can save money ahead of tightly scheduled construction work.
"Through our inspectors and our testing program, we caught these bearing pads before they were installed -- before they were shipped," San Angelo said. "Although this one caused a delay, we prevented substandard materials from being used in our project."
San Angelo says the bearing pads cost tens of thousands of dollars, but are a relatively inexpensive part of a bridge over its 70-year lifespan.
"These things will last as long as the bridge -- if they're made right," San Angelo said.
Costs to remove pads for replacement after they're encased in concrete and installed can run into the millions of dollars. San Angelo says the procedure also incurs the risk of concrete cracking during repair work.
According to San Angelo, it's up to QAP and its suppliers to determine the materials issues involved in the New Seward pads' failure.
"What it really is, is there's rubber that didn't perform as well as it should," San Angelo said. "We really don't know why, because there's proprietary chemistry involved."
While San Angelo regrets the delays in the New Seward project and the resulting inconvenience to motorists, he says the state's highest priority is making sure the work done on it is solid.
"We want to have quality and safety -- because nothing else is worth doing in our business," San Angelo said. "If we don't have quality and safety, we might as well turn off the lights and go home."
QAP referred a request for comment to spokesperson Christine Ortega, who didn't immediately return a message left Wednesday afternoon.
Croghan, the construction engineer, says final elements of the New Seward work like landscaping should be completed by June 2014.
Contact Chris Klint
Port MacKenzie Rail Extension Project Begins
Workers are plowing a 32-mile swath through rugged Alaska wilderness outside Big Lake. The site will eventually be a foundation for an Alaska Railroad extension between the main line in Houston and Port MacKenzie.
The purpose of the $88 million project is to expedite the transport of minerals from the Interior to tidewater in Southcentral Alaska.
"Our state is young, we need investment in transportation infrastructure, and that's what this is," said Mat-Su Public Affairs Director Patty Sullivan. "Ports require roads, sea and rail to function properly."
Port MacKenzie is a deep-water port, with a draft dock of 60 feet at low tide that requires no dredging. It's an ideal shipping destination for valuable minerals such as copper, coal and limestone -- and the rail extension could shorten minerals' journey by up to 140 miles.
"There's this saying that minerals are transportation," Sullivan said. "You need low-cost transportation to make them profitable."
Work is taking place in six segments between the port and the original rail line. The tracks could be set down next summer and the project's completion date is expected in 2016.
"We're working in marine material, glacial marine material" said Bob Hanson, the project's manager. "It's mostly silts in this area right here, and all of this is going to be excavated another 20 or 30 feet to the track bed."
Borough officials say more money may be needed from the state Legislature as the rail extension moves forward.
Contact Adam Pinsker
Waters Continue to Rise in Galena Flooding
Floodwaters in the Yukon community of Galena forcing more residents from their homes as evacuations continued Wednesday. State emergency officials say more than 300 people have been evacuated out of Galena, or left on their own after historic flooding hit the community hard.
Wednesday afternoon, river forecasters with the National Weather Service said chunks of ice along a small portion of the ice jam that spans about 30-miles, broke free, and released some floodwaters. If the ice continues to deteriorate, says hydrologist Scott Lindsey, floodwaters in Galena could soon recede.
Old Town Galena has seen the worst of it. Officials say river ice has knocked some homes from their foundations and in some cases, the water level has risen past the first-floor windows or completely submerged buildings. According to the Alaska Division of Homeland Security and Emergency Management, the spring break-up flooding in Galena is "serious" and "widespread." However, officials will not be able to determine the the full extent of the flood damage until the waters recede.
"When that water recedes, then people will want to return back. That will be the time of uncertainty. Will the house they return to be habitable, how much damage is there, how much can be done through cleaning," says John Madden, director of the state's Division of Homeland Security and Emergency Management.
Kevin Ray, who moved to Galena four months ago, was one of the residents flown to Fairbanks on Monday, after the Alaska Air National Guard evacuated people. One day later, the mood at the Red Cross emergency shelter set up at University Community Presbyterian Church (one of two shelters in Fairbanks), is solemn. Ray says after a quick evacuation, the seriousness of what has happened to their community is sinking in.
"The reality of the situation is hitting," he said. "They start reflecting. They've lost their homes, their belongings, etc., and their town basically is gone."
Tanana Officials Charged in Nearly $1M Theft, Fraud
Tanana's city manager, as well as an expediter for the city, face wire-fraud and theft charges after they allegedly sold nearly $1 million in goods transferred to the city by the federal government for personal gain.
U.S. Attorney Karen Loeffler's office says Fairbanks men Alfred R. "Bear" Ketzler Jr., 57, and Alfred McQuestion Fabian, 62, committed the crimes described in an indictment -- nine counts of wire fraud and three counts of theft from a local government receiving federal funds -- over a nearly three-year period from December 2009 through November 2012.
An indictment in the case says Ketzler had authority as Tanana's city manager to allocate federal surplus goods granted to Tanana. Both Ketzler and Fabian allegedly transferred goods to locations in and around Fairbanks -- including Fabian's home -- without notifying Tanana's mayor or city council.
"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," prosecutors wrote. "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."
Ketzler is believed to have fraudulently told buyers he was selling the property on behalf of the City of Tanana. Ketzler allegedly deposited money from the sales in his personal accounts, then wrote Fabian checks or deposited money to one of his bank accounts.
"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," prosecutors wrote.
Loeffler's office says some of Ketzler's and Fabian's sales may have been authorized by Tanana officials, while others are suspect. Investigators also believe some of the property was sold through third parties.
"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," prosecutors wrote. "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."
Loeffler's office says the wire-fraud and theft charges each carry a maximum fine of $250,000, with a maximum of 30 years in prison per wire-fraud count and 10 years per theft count.
Anyone with information on federal surplus-goods sales related to the case is asked to call the FBI at 907-452-3250 or 907-276-4441, and ask to speak with Special Agent Sutherland.
No arraignment date had been set in the case as of Tuesday.
Contact Chris Klint