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Former officer of the law convicted in defrauding ConocoPhillips of millions

Suzanne Downing
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Former officer of the law convicted in defrauding ConocoPhillips of millions

A former Anchorage Police Department officer was convicted of 24 criminal counts on Thursday for his participation in a scheme to defraud a corporation of millions of dollars.

According to court documents and evidence presented at trial, Nathan Michael Keays, 44, was friends with a ConocoPhillips employee, Forrest Wright, 44.

The two conspired to use Keays’s side business, which was Eco Edge Armoring LLC, to defraud ConocoPhillips by approving contracts for goods and services that were never provided. Over the course of the scheme, Keays and Wright obtained more than $3 million from fraudulent bills for foam insulation. Wright had pleaded guilty in 2021 and is scheduled to be sentenced in May.

The scheme started in 2019 when Wright was a senior drilling and wells planner with ConocoPhillips, with responsibility for ordering materials and labor for drilling and wells projects. Wright had the authority to approve material and labor orders for up to $1 million and was trusted to recommend vendors for supplies.

Keays conspired with Wright to craft fraudulent emails and alter the Eco Edge Armoring LLC website to present the company as a major oil and gas services enterprise, when in fact, it had no employees and no ability to provide goods or services in the oil industry.

Wright sent emails from his personal account to Keays’s personal account with instructions to send technical emails to Wright’s business account to establish Eco Edge Armoring LLC as an approved vendor. Wright would then forward these emails to other personnel within ConocoPhillips to ensure Keays’s company was approved as a frequently used vendor.

After achieving the approved vendor status, Keays submitted fraudulent invoices totaling over $3.2 million for materials that did not exist and labor that was never performed.

Keays also submitted fraudulent timesheets in the name of nonexistent employees to make it appear that work had actually been performed. Wright used his position in the company to direct personnel to approve the payment of invoices by falsely representing that the nonexistent materials were delivered and accounted for and that the work outlined in the invoices was performed.

Keays received $3,087,720 in electronic payments from ConocoPhillips for the fraudulent material and labor through a bank account for Eco Edge Armoring LLC and split the proceeds with Wright by issuing checks to Spectrum Consulting, a shell entity created by Wright.

In total, Keays personally received more than $1.4 million. Keays used his proceeds of the scheme for personal expenses, including paying off loans, purchasing real estate and buying cryptocurrency.  

Keays was convicted of one count of conspiracy to commit wire fraud, 11 counts of wire fraud, one count of conspiracy to commit money laundering and 11 counts of money laundering.

“This successful conviction represents closure in a complex white-collar crime case and demonstrates that no one is above the law,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “To anyone thinking of committing a financial crime, know that my office, in collaboration with our law enforcement partners across the state, will work vigorously to find you and prosecute you to the furthest extent of the law.”

Senate Democrats plan to dismiss impeachment of Homeland Security Secretary Mayorkas

Suzanne Downing
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Senate Democrats plan to dismiss impeachment of Homeland Security Secretary Mayorkas

While Alaska Sen. Lisa Murkowski thought it proper to vote to convict President Donald Trump during his impeachment after he was no longer president, she now says that the impeachment of Homeland Security Secretary Alejandro Mayorkas is a waste of time.

“I am more than a little bit frustrated that we’re going to be taking up an impeachment process that most everybody understands is really nothing more than a messaging effort,” she told reporters.

Republicans are advising that Senate Democrats plan to dismiss the charges against Mayorkas. In February the U.S. House voted to impeach him for failing to secure the southern border with Mexico. More than 7.2 million illegal immigrants have entered the country during the Biden Administration — an amount greater than the population of 36 states

The House was originally expected to deliver impeachment charges this week. Then, Senate Majority Leader Chuck Schumer changed the Senate schedule and publicly called the impeachment a sham that he will table with the help of his fellow Democrats.

When the Senate held a trial after Trump left office, 44 Republican senators voted it was unconstitutional for the Senate to try a president after he left office. Murkowski voted with the Democrats, however, to impeach a private citizen.

Mayorkas stands accused of failing to uphold his oath to defend and secure the United States, instead presiding over a lax border security regime that has allowed millions of illegal aliens to enter the country. Critics argue that Mayorkas has deliberately neglected his duty to maintain operational control of the border, as mandated by the Secure Fence Act of 2006, resulting in an influx of illegal immigration and drug smuggling, including deadly narcotics like fentanyl.

Moreover, Mayorkas is accused of violating the Immigration and Nationality Act by implementing policies such as catch and release, which allow illegal aliens to enter the United States without proper documentation. House impeachment documents argue that these actions not only undermine national security but also contravene the law, leading to an increased risk of criminal activity and terrorism.

Furthermore, Mayorkas faces allegations related to the handling of Covid-19 at the border. Despite the Centers for Disease Control and Prevention’s order to prevent the introduction of potentially contagious individuals into the United States, Mayorkas stands accused of failing to enforce this order effectively. Impeachment articles assert that his refusal to expel aliens under Title 42 of the Public Health Service Act has led to the spread of Covid-19 within border communities and beyond, posing unnecessary risks to public health and straining local resources.

House passes operating budget early, with Permanent Fund dividend at $2,273

Suzanne Downing
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House passes operating budget early, with Permanent Fund dividend at $2,273

The Alaska House of Representatives passed the Operating and Mental Health budgets, HB 268 and HB 270 on Thursday, with unanimous support from House Majority members. The vote was 23-17. The consolidated efforts in HB 268 and HB 270, total $12.3 billion from all fund sources, including state and federal, plus Permanent Fund earnings.

HB 268, the state’s operating budget, contains these highlights:

  • Education: Substantial additional one-time funding of $174.6 million, equivalent to a $680 BSA increase, reaffirms our commitment to education. The budget also contains significant investments in K-3 education assistance, career and technical education initiatives, Head Start, and the READS act.  School bond debt reimbursement is also fully funded at $44.9 million.
  • Public Safety: An infusion of $3.5 million for 10 additional VPSO positions and strategic investments in crime investigation and domestic violence prevention underscores the House’s commitment to safeguarding communities.
  • Statehood Defense: Bolstering resources to safeguard Alaska’s sovereignty, including additional funding for litigation and support for natural resources specialists, reaffirms state commitment to protecting our state’s interests.
  • Permanent Fund Dividend: Honoring the lawful commitment to Alaskans, the House’s version of the bill contains a $2,273 PFD, which would represent the third largest dividend in Alaska’s history.

Immediately, Senate Majority Leader Cathy Giessel slammed the budget, saying on social media that there will be cuts, and she indicated the cuts would come from the dividend.

“The Senate gets the Operating Budget next and we will, of course, rein in the spending. Our Bipartisan Coalition Majority is committed to not spend beyond available revenue, not spending from savings, and to allocate an affordable dividend.” That means the Senate is dedicated to not following Alaska Statute and the formula laid out in law. The Senate majority is dominated by Democrats.

Last year, the Senate held the budget until the last minute and then forced it back to the House with no time to respond, requiring a special session. Political observers will be keeping a close eye on Senate hostilities this year to see if the pattern repeats.

Senate tactic fails to deliver budget, and special session starts Thursday

Girl returns to school where gang violated her, as crowd gathers at doorway to show support

Suzanne Downing
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Girl returns to school where gang violated her, as crowd gathers at doorway to show support

The 14-year-old student at Clark Middle School in Anchorage, having been savagely beaten by a violent gang of students in late March, finally returned to school Thursday. She was accompanied by a crowd of well-wishers led by Bob Lester, cohost of the KWHL morning show “Bob and Brock.”

Peyton Guthrie mustered all the poise of an adult when she arrived at the school at around 8 a.m. Thursday and approached the crowd of 20 people who had come to support her. A small group of police officers stood nearby, while Lester interviewed Peyton and her mother, Natasha Guthrie.

“In response to the harrowing incident, Bob Lester and Brock Lindow of Alaska’s Morning Show took initiative, rallying concerned members of the community to accompany the victimized student back to school on Thursday morning. This collective gesture aims not only to demonstrate unity but also to offer emotional solace to the affected family as the girl bravely returns to the unsettling atmosphere of her educational environment,” KWHL.com wrote about the return of Peyton to her school.

Natasha Guthrie said, “Thank you so much everybody for being here, it really means a lot.” Guthrie has been on a mission to raise awareness about bullying and violence in Anchorage schools, and she is fighting for safety campuses so other students don’t endure the savage beating her daughter went through.

Community rallies around girl who was brutally beaten by gang at Clark Middle School; radio hosts will walk her back to school Thursday
Watch video: Clark Middle School student savagely attacked by student gang during gym class

New video: Fight Club’s school principal gets big award, but had ignored safety pleas from parent

Denali Commission to be led by leftist former head of AFN

Suzanne Downing
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Denali Commission to be led by leftist former head of AFN

U.S. Senators Lisa Murkowski and Dan Sullivan, and Rep. Mary Peltola have passed along their recommendation for Julie Kitka to serve as the Denali Commission Federal Co-Chair. If approved, Kitka would replace Jocelyn Fenton who started serving in the role of Interim Federal Co-Chair on March 6, 2024.

“Alaskans know what Julie Kitka can deliver when she’s taking the lead,” said Sen. Murkowski. “For 33 years, she served as the President of the Alaska Federation of Natives, successfully balancing the needs of a diverse group of tribes, village corporations, regional corporations, regional nonprofits and tribal consortiums, while advocating for Alaskan Natives on a local, state, and federal level. There is no one I can think who is more qualified to advocate for economic development in rural Alaska than Julie.”

“Julie Kitka has been a generational leader advancing the interests and improving the lives of Alaska Native people,” said Sen. Sullivan. “During her historic, 33-year tenure as President of the Alaska Federation of Natives, Julie elevated the voices of Alaska Native communities and tribes to the highest levels of our state and federal governments, and accomplished so much on behalf of tens of thousands of Alaskans. She also had an unwavering focus on connecting AFN to our Alaska-based military and veterans community that was another very impressive aspect of her tenure. Julie’s wealth of leadership experience and vast knowledge of rural Alaska uniquely qualify her to lead the Denali Commission and execute its important mission. I look forward to continuing to work with Julie in this new role to create opportunities for economic and infrastructure development in our rural communities.”

“Julie Kitka is a force of nature. Her work at the forefront of Alaska Native politics has inspired and motivated many across the state. I’ve known Julie for many years, and she has always spoken out for the issues Native and rural Alaskans face. As an organization dedicated to serving the needs of rural Alaskans, the Denali Commission needs a leader like Julie,” said Rep. Peltola. “I’m proud of the delegation’s selection, and I’m hopeful that we will see her approved and at work as soon as possible.”

Oops, she did it again: Peltola scrambles to take credit for a bill that passed without her support

The Denali Commission was established in 1998 by the late Sen. Ted Stevens to fund economic development and infrastructure in rural Alaska. The commission also serves as the lead agency to assist communities facing flooding, permafrost degradation threats and coastal erosion.

Under her leadership, AFN devolved into a leftist political organization to the point where it has become hostile territory for any Republican. AFN has become so radical that a number of Alaska Native corporations have left the organization in recent years, including Arctic Slope Regional Corporation, Doyon, Tlingit Haida Central Council, and the Aleut Corporation. ASRC is the state’s wealthiest private corporation, while Doyon is Alaska’s largest private landowner.

Kitka was the recipient of the 2022 Ecotrust Indigenous Leadership Awards for her “tireless commitment to ensuring and advancing the rights of Alaska Natives.” Ecotrust is based in Portland, Oregon.

Tlingit & Haida Central Council leaves AFN
AFN’s missing speakers and sponsors
Governor interrupted by loud protesters during AFN

Biden dismantles Second Amendment with ‘rule’ based on an anti-gun bill Murkowski voted for

Suzanne Downing
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Biden dismantles Second Amendment with ‘rule’ based on an anti-gun bill Murkowski voted for


Firearm dealers will be required by the Biden Administration to run background checks on buyers who purchase firearms from gun shows or other places that are not actual stores. The rule also applies to online sales and even between private persons.

The Biden Administration says it has the authority to expand this curtailment of constitutional rights because of the Bipartisan Safer Communities Act, which was supported and voted for by Alaska Sen. Lisa Murkowski. Sen. Dan Sullivan voted against it.

Murkowski votes to advance gun control, and Tshibaka blisters her as anti-Second Amendment

In response to the announcement, Senate Republicans will introduce a bill to repeal the Biden rule that was announced by the Department of Justice on Wednesday, which vastly expands required federal background checks. Republican Sens. John Cornyn of Texas and Thom Tillis of North Carolina will introduce legislation to repeal the rule.

The Biden rule says that “even a single firearm transaction may be sufficient to require a license, if there is other behavior to suggest commercial activity. For example, a person selling just one gun and then saying to others they are willing and able to purchase more firearms for resale may be required to obtain a license and run background checks,” according to the White House.

“This is going to keep guns out of the hands of domestic abusers and felons,” President Joe Biden said in a statement. “And my administration is going to continue to do everything we possibly can to save lives. Congress needs to finish the job and pass universal background checks legislation now.” 

Executors of estates or personal representatives of estates will have to get federal firearms licenses under the new rule.

“From the outset, this bill was a compromise measure, spearheaded by a bipartisan group of 20 of my Senate colleagues. I join them in their commitment to showing the public that Congress knows the status quo on gun violence is not acceptable—that we can do more for school safety, for the safety of our communities, and to address the growing mental health crisis in this country,” said Sen. Murkowski after voting in favor of the bill in 2022. “This legislation emphasizes and provides additional funding for mental health and school safety programs to help ensure that kids and people of all ages are better protected. As a strong supporter of the 2nd Amendment and a gun owner myself, it was essential to ensure that this legislation not violate the rights of law-abiding gun owners. It does not. While this legislation is not perfect, it is a responsive, responsible, and targeted approach to address the very serious mass shooting and gun violence incidents this country continues to face.”

It’s a red flag for Republicans: Majority polled fear abuse of red flag laws

David Boyle: Who pays for students and agitators to testify against public school choice?

SENIOR CONTRIBUTOR
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David Boyle: Who pays for students and agitators to testify against public school choice?

By DAVID BOYLE

Do you ever wonder who paid for the many students, young children, and adults to trek to Juneau and agitate against public school choice?  

Who paid for the education industry to trek to Juneau to beg for more money for a less-than-mediocre K-12 education system?

Students swarm Alaska Capitol, disrupt committees, egged on by Democrat legislators

What would you say if you were told that you, the taxpayer, actually paid for their travel, meals, and lodging?

Indirectly, through federal taxes, you did pay for those who filled the entrances to the House chambers to influence and intimidate legislators during the vote to override Governor Dunleavy’s veto of SB 140.  The bill would have increased K12 funding with no accountability for results.

Let’s follow the money.  In this case, it was the Alaska Children’s Trust that funded the travel of the Great Alaska Schools’ lobbying effort to intimidate legislators into overriding the governor’s veto. 

The Alaska Children’s Trust is a 501(c)(3) nonprofit organization that is limited by the IRS in funding lobbying efforts. It usually does good work by providing grants to organizations that protect children, educate parents, and help prevent child abuse. 

One of the founders of the Great Alaska Schools organization is the current Rep. Alyse Galvin.  She has lobbied for more and more K-12 spending for many years.

Here is the Facebook post from Great Alaska Schools organization stating that the ACT funded their travel to the legislature for lobbying:

Here are the grant criteria from its website:

“Eligibility. Applications are accepted from qualified 501(c)(3) nonprofit organizations, tribes, local or state governments, schools, or Regional Educational Attendance Areas in the state of Alaska. Organizations that have received past awards and are in good standing are eligible to apply.  Applicants with open Alaska Children Trust grants must be current on all grant reporting. Applications from organizations with outstanding grant reports will not be accepted.

“Non-Eligible: Individuals, for-profit, 501(c)(4) or (c)(6) organizations, non-Alaska based organizations, and federal government agencies are not eligible for competitive grants. 

Applications for religious indoctrination or other religious activities, endowment building, deficit financing, fundraising, lobbying, electioneering and activities of political nature will not be considered.”

One can clearly see that the ACT violated its grant eligibility criteria in 3 instances:

  1. – The Great Alaska Schools organization is not an eligible organization.
  2. – The Great Alaska Schools is an independent expenditure organization. GAS only filed one report with APOC for 2014.
  3. – Great Alaska Schools used the ACT grant to lobby legislators.

Maybe the ACT was pressured by one of its board members, Margo Bellamy, to pay for the lobbying activity.  Bellamy, president of the Anchorage School Board, is the ACT vice chair. 

So, where does the ACT get its funding?

Much of it comes from the federal government, otherwise known as you the taxpayer, through grants. 

Here is the grant data from the ACT federal tax return for 2022 that shows it received government grants totaling $418,449:

It is not possible to break down how much of the government grants came from the State of Alaska.

But in FY 2019 one can see from the DHSS website how the ACT received $250,000 of federal money: 

And in FY 2022 the ACT received $200,000 of federal funds; the State chipped in another $50,000.

Even the Municipality of Anchorage, the Fairbanks North Star Borough School District, and Georgetown University contribute to the ACT. Some of these donations probably go to better the lives of Alaskans. But remember, money is fungible and can be spent on lobbying Alaska Legislators too.

In other words, you, the taxpayer funded the lobbying efforts by the Great Alaska Schools to pressure and intimidate legislators to overturn the governor’s veto of AB 140, a bill that sent loads of money to the K-12 schools with no accountability for increasing student achievement.

Always follow the money.  That will lead you to the truth.

Here is link to the Alaska Children’s Trust website. 

Here is a link to the Alaska Children’s Trust 2022 federal tax return.

Here is a link to State of Alaska DHSS website.

David Boyle is Must Read Alaska’s education writer.

Students swarm Alaska Capitol, disrupt committees, egged on by Democrat legislators

Anchorage Daily News hemorrhaging cash, will reduce print to twice weekly and cut staff

Suzanne Downing
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Anchorage Daily News hemorrhaging cash, will reduce print to twice weekly and cut staff

The Anchorage Daily News held a company wide meeting Tuesday to announce it will be reducing print from 6 days a week to just Sunday and Wednesday, effective June 2. 

The company is said to be expecting at least a 20% loss in circulation from the change in addition to the steady 16-19% loss it currently is experiencing each year. 

A source told Must Read Alaska that the Sunday print run was just 6,400 copies, while in the 1990s, the Sunday edition was over 100,000 copies.

There will be layoffs and further restructuring in the coming months as a result of the changes, MRAK has learned.

The newspaper was purchased by millionaire Alice Rogoff in 2014. She changed the name to the Alaska Dispatch, the name of an upstart online news organization she had purchased from journalists Amanda Coyne and Tony Hopfinger. Rogoff ran the entire enterprise into the red and finally had to liquidate it as a bankruptcy reorganization.

Rogoff vs. reporters: Outtakes from oral arguments

The Binkley Company, headed by former state Sen. John Binkley, purchased the print and online Alaska Dispatch out of bankruptcy in 2017 and returned it to its former name, the Anchorage Daily News. Rogoff had paid over $30 million for the newspaper, while the Binkley Company purchased it from the bankruptcy proceedings for $1 million. Ryan Binkley, son of John Binkley, became president and CEO and Andy Pennington became the publisher.

The pattern is part of the decline of newspapers across the country. The Juneau Empire reduced its print edition to twice weekly a year ago, as did the Peninsula Clarion. Both are now being printed out of state. The ADN contracted its printing out to the Frontiersman when it changed hands to the Binkleys. It was once a daily newspaper, but has recently reduced print editions to five days a week.

Just last month, the ADN was lobbying the Legislature to preserve the paid public notices in order to slow the decline. Senate Bill 68, recognizing that most newspapers have most of their readers online anyway, calls for publishing the notices in the Alaska Online Public Notice System, by mail, and by “other means as deemed necessary.”

The newspaper has always had a liberal bent, but has become hard-left starting with the transfer to Rogoff in 2017.

This story will be updated as more facts emerge.

Alaska Senate bill would take bite out of tiny-print newspaper ad revenue; publishers fight back
Juneau Empire going digital, will print just two editions a week
Off the presses: Juneau Empire, Peninsula Clarion, Homer News get new parent company — again

Win Gruening: Twisted logic of Juneau School Board recall petition

SENIOR CONTRIBUTOR
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Win Gruening: Twisted logic of Juneau School Board recall petition

By WIN GRUENING

The ink was hardly dry on the Juneau School District FY 2025 budget passed last month before a local group filed petitions to recall the school board president, Deedie Sorensen, and vice president, Emil Mackey. 

Petition supporters have 60 days under state statute to secure enough signatures to force a recall vote.

The petitions chronicle a litany of grievances stemming from the recall supporters’ inability to convince the board to keep both high schools open in the face of declining student counts and significant budget deficits. 

The audacity and unsupported accusations of the petitions are eye-opening. Rob Palmer, Juneau’s City Attorney, ruled that, of the15 separate charges (seven for Sorenson, and eight for Mackey),13 were legally insufficient and were thrown out.

The sole remaining charge for each is identical: “Failure to understand the FY24 budget and accounting errors resulting in $7.9M deficit and taxpayer loan from CBJ.”  Ironically, the FY24 budget is unrelated to JSD school closures and was crafted and recommended by previous Superintendent Bridget Weiss and unanimously approved by the board in 2023.

Palmer’s legal opinion notes that “regarding [legal] sufficiency, it does not matter if the petition’s statement contains untrue or mischaracterized facts. It does not matter if the petition’s statement omits facts…”.

Although the board voted 5-2 to approve the school consolidation plan and unanimously to approve both the 2024 and 2025 budgets, the recall group targets only two board members for recall. This alone is reason for potential signers to reject the petition. It’s clear the group’s effort isn’t about better schools but, rather, about shifting blame.

For years, previous school administrators and school board leadership overlooked their own demographic projections and budgeted for unrealistic student populations.

Several past board members and school officials won’t have to answer questions about why the school district is in this predicament.

Bridget Weiss, JSD’s superintendent for five years, left in 2023. In a 2018 Juneau Empire article, Weiss stated she was “more optimistic for the future, saying that if Juneau’s economy can provide jobs and be attractive to young families, enrollment could turn around” even though evidence pointed to the opposite occurring.

Brian Holst, currently director of the Juneau Economic Development Council, served nine years on the board and five as president, leaving in November 2023. Paul Kelly served three years on the school board, two of those years in a leadership role, departing in 2021 to run successfully for the Juneau Assembly last year.

They all left the party before the tough decisions had to be made. The current school board was left to clean up the mess.

Deedie Sorensen and Emil Mackey had the courage to speak up, no longer allowing the board to ignore Juneau’s student population decline that is primarily responsible for the district’s deteriorating financial condition. Sorensen and Mackey consistently and rationally advocated for a budget that prioritized people and programs over buildings, and, in doing so, convinced a majority of the board to do the same.

Yet the petitioners blame those two board members for necessary school closings caused by a financial debacle that has been brewing for years. 

That is some kind of twisted logic.

What the petitioners and their supporters won’t tell you is that the school district has been living on borrowed time. Maintaining the status quo or taking half-measures isn’t an option. The board’s own demographic projections envision losing another 1,200 students over the next ten years. 

Within a short time, an elementary school (or two) will likely need to be closed. In two years, the district must begin repaying the $4.1 million loan included in the financial rescue package approved by the CBJ Assembly. With Juneau’s dwindling student population, the district’s structural deficit won’t be cured without more cuts and closures, even if the Legislature passes increased education funding for school districts. 

But petition boosters don’t want you to know that. They want you to shoot the messengers.

Before starting a war, maybe the people behind this recall effort will have the courage to look in the mirror and, like Pogo, realize that “we have met the enemy, and he is us.”

After retiring as the senior vice president in charge of business banking for Key Bank in Alaska, Win Gruening became a regular opinion page columnist for the Juneau Empire. He was born and raised in Juneau and graduated from the U.S. Air Force Academy in 1970. He is involved in various local and statewide organizations.

Win Gruening: Giving credit where credit is due
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