The only man to get prison time, then have his case reversed over a notoriously strange Alaska scandal involving an exorbitant $52 million spending spree on World War II-era fighter jets and other items, is once again on the receiving end of federal indictments.
Former Alaska businessman Mark Avery received a more than eight-year sentence at a federal penitentiary in Texas, a punishment he began in April of 2008.
He avoided trial by pleading guilty to 15 felonies – five counts of "honest services" wire fraud and 10 counts of money laundering.
In 2011 Avery pursued relief from his convictions, and this summer prevailed. He successfully argued that the crimes he pleaded guilty to were no longer crimes, based on the 2010 landmark U.S. Supreme Court decision Skilling v. United States. U.S. Attorney Karen L. Loeffler announced Thursday that Avery was charged by a federal grand jury with five counts of wire fraud and nine counts of money laundering.The ruling narrowed how the government may use the "honest services" fraud law in pursuing criminal convictions.
U.S. Attorney Karen L. Loeffler announced Thursday that Avery was charged by a federal grand jury with five counts of wire fraud and nine counts of money laundering. But this time, honest services fraud, a crime that requires bribery or kickbacks, is absent from the slew of felonies Avery faces.
As before, prosecutors argue that Avery illegally abused his position as a trustee to a wealthy widow's finances by steering a large, $52 million loan to himself that he never repaid. Over the course of six months, the money was used to build a network of aviation and security-related companies in Alaska, pay for homes and fund the purchase of airplanes, a high-tech yacht, vehicles and more.
Avery is now 54 years old and has become a resident of San Francisco, Calif. Attending an Anchorage arraignment by phone on Thursday, he pleaded not guilty to the 15 felony counts against him. Later this month, he will be released on bail to a family member in California.
Contact Jill Burke at jill(at)alaskadispatch.com