Anchorage Woman Sentenced to 5 Years in Prison for Wire Fraud and Aggravated Identity Theft

ANCHORAGE, Alaska - An Anchorage woman was sentenced today to 5 years in prison for wire fraud and aggravated identity theft followed by 5 years of supervised release. Payment of restitution to the victims in the case was also ordered.

According to court documents, between February 2021 and February 2022, Dusty Starr, 48, carried out a scheme to defraud victims and obtain money using stolen identifications. The defendant's scheme involved mail theft, identity theft, creation of fraudulent email and financial accounts, production of forged checks, and the submission of false applications to obtain COVID rental relief funds. The defendant possessed more than 170 identities stolen from the mail, from vehicles, and from individuals to carry out her fraud. Using these stolen identities Starr created email accounts, bank accounts, money-transfer accounts, and sham business entities to impersonate victims and route proceeds from her fraud into accounts under her control. The total estimated loss from the defendant's fraud is more than $71,000,

A significant portion of the defendant's scheme centered on exploiting an Alaska state agency that provides rental assistance and helped distribute rent relief in coordination with charitable organizations during the pandemic. The defendant fraudulently posed as multiple different landlords and tenants, using stolen identities to submit nine fraudulent applications. The state agency disbursed $47,550 in payments to accounts that Starr opened using stolen identities.

Also, as part of her fraud scheme, Starr used stolen mail and stolen identities to forge and negotiate fraudulent checks on the accounts of several Alaska Native corporations. Starr created forged checks using authentic account information obtained from legitimate checks stolen from the mail together with check-printing equipment she purchased from Amazon, then she deposited the forged checks into accounts opened using stolen identities. Losses to these organizations total more than $24,000.

"The defendant carried out a scheme using stolen identities to fraudulently obtain pandemic relief and to steal money from several Alaska Native corporations, among others. Our office will continue to prioritize pursuing abuses of pandemic relief and to protect the sanctity of the U.S. Postal Service critical to so many Alaskans" said Michael J. Heyman, U.S. Attorney for the District of Alaska.

"The U.S. Postal Inspection Service remains committed to ensuring the security and integrity of the mail system. The sentencing of Starr leaves a clear and lasting message for the fraudsters of Alaska that they have no place in the U.S. Postal Service and the State of Alaska," said Jarrod Resendez, Acting Inspector in Charge of the Seattle Division of the U.S. Postal Inspection Service. "The U.S. Postal Inspection Service will not sit back while individuals like Starr exploit the postal system to harm our communities, we will hold them accountable. We thank our partners in law enforcement for their support and efforts in this investigation."

"Theft can be financially devastating for victims, and the effects can last long after the crime. Anchorage Police Department fraud detective, Tiffani Loughman, spent years pursuing this case because the people and organizations harmed deserved answers and accountability. We're grateful to our federal partners for helping see it through to sentencing," said Chief Sean Case, Anchorage Police Department.

The U.S. Postal Inspection Service and the Anchorage Police Department investigated the case with assistance from the U.S. Postal Service, Office of Inspector General.

Assistant U.S. Attorney Andrea Steward prosecuted the case.

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