Arizona Truck Driver Sentenced to Two Years in Federal Prison for Causing Bus Crash that Left One Man Dead on Fort Irwin Army Base

          RIVERSIDE, California – An Arizona man has been sentenced to 24 months in federal prison for involuntary manslaughter in a fatal bus crash that happened after he parked his truck – without any lights or warning cones – in the middle of a highway on the Fort Irwin Army Base in the Mojave Desert.

          Steven Kilty, 52, of Apache Junction, Arizona, was sentenced late Monday afternoon by United States District Judge Jesus G. Bernal.

          After a five-day trial that ended in early October 2018, a federal jury found Kilty of involuntary manslaughter. The evidence presented at trial showed that Kilty, who was delivering a military tactical vehicle, arrived at Army’s National Training Center at Fort Irwin on June 1, 2014. Kilty had arrived at the base the night before his scheduled delivery, and he parked his tractor-trailer in the right lane of the road on Fort Irwin property. Kilty turned off the lights on the truck and, instead of putting out any safety triangle reflectors or turning on his hazard lights, he went to sleep in the berth of his truck – while the truck was still parked in the middle of the roadway.

          Just after 5 a.m. on June 2, prior to sunrise, a Victor Valley Transit Authority bus transporting commuters to Fort Irwin collided with the parked truck. As a result of the collision, Dail Lee Keiper, 62, of Barstow, was killed and seven people suffered significant injuries, including one man who lost his arm.

          “The death was the direct result of defendant’s decision to park the semi-truck loaded with an armored vehicle in the middle of a moving lane of traffic,” prosecutors wrote in a sentencing memorandum filed with the court. “Rather than a single isolated decision, the accident was the culmination of a number of reckless decisions made by (the) defendant.”

          The evidence presented at trial showed that Kilty was “grossly negligent” because his truck was blocking traffic on the roadway and he failed to place any warning reflectors, both of which are violations of the California Vehicle Code.

          Kilty was indicted in this case in March 2016. He initially was tried in this matter in late 2017, but a jury was unable to reach a unanimous verdict, and a mistrial was declared.

          This case was investigated by the FBI, California Highway Patrol, the U.S. Army Criminal Investigation Command, and the Fort Irwin Police Department.

          This matter was prosecuted by Special Assistant United States Attorney Paul D. Levers and Assistant United States Attorney Jerry C. Yang of the Riverside Branch Office.

Manhattan U.S. Attorney Announces Forfeiture Of North Korean Cargo Vessel

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John C. Demers, Assistant Attorney General for National Security, announced today the entry of a judgment of forfeiture regarding the M/V Wise Honest (the “Wise Honest”), a 17,061-ton, single-hull bulk carrier ship flagged in the Democratic People’s Republic of Korea (“DPRK” or “North Korea”).  The Wise Honest, one of the largest North Korean-flagged vessels, was used to conduct large illicit shipments of coal from North Korea and to import heavy machinery back to the DPRK.  Payments for maintenance, equipment, and improvements of the Wise Honest were made in U.S. dollars through unwitting U.S. banks, in violation of U.S. law and United Nations Security Council resolutions.

U.S. Attorney Geoffrey S. Berman said:  “Today’s judgment of forfeiture finalizes the U.S. government’s seizure of the Wise Honest and officially takes this North Korean vessel out of commission.  It will no longer be used to further a criminal scheme.  Using the full set of tools at our disposal, we will continue to investigate and prosecute attempts to evade U.S. sanctions, including by the North Korean regime.”

Assistant Attorney General for National Security John C. Demers said:  “This order of forfeiture sinks the Wise Honest’s career as one of North Korea’s largest sanctions-busting vessels.  The Department of Justice will continue to pursue other property used to violate U.S. and international sanctions, around the globe, with the cooperation of our international partners.”

According to documents filed in Manhattan federal court:

Pursuant to the International Emergency Economic Powers Act (“IEEPA”) and the North Korea Sanctions and Policy Enhancement Act of 2016 (“NKSPEA”), the DPRK and individuals or entities that the Department of the Treasury, Office of Foreign Assets Control (“OFAC”) has determined are involved in the facilitation of proliferation of weapons of mass destruction (“WMDs”) are prohibited from engaging in transactions with U.S. persons, involving U.S.-origin goods, or using the U.S. financial system.  The United Nations Security Council has similarly prohibited the provision of goods, technology, and services to North Korea, including the sale, supply, or transfer of coal.

From November 2016 through April 2018, the Wise Honest was used by Korea Songi Shipping Company, an affiliate of Korea Songi General Trading Corporation – which, in 2017, OFAC determined was “subordinate to the [Korean People’s Army] and involved in exporting North Korean coal” – and one of Korea Songi Shipping Company’s representatives, Kwon Chol Nam, to export coal from North Korea to foreign purchasers and import machinery to North Korea (the “Korea Songi Scheme”).

On March 14, 2018, the Wise Honest was loaded with coal in Nampo, North Korea.  On April 2, 2018, Indonesian maritime authorities intercepted and detained the Wise Honest.  Although maritime regulations require vessels like the Wise Honest engaged in international voyages to operate an automatic identification system (“AIS”) capable of providing information about the vessel to other ships and to coastal authorities, and despite its March 2018 voyage from North Korea, the Wise Honest had not broadcast an AIS signal since August 4, 2017.

Participants in the Korea Songi Scheme additionally attempted to conceal the Wise Honest’s DPRK affiliation by falsely listing the Wise Honest’s nationality or the origin of the illicit coal on board the vessel in shipping documentation, for example, as from Tanzania or Russia.

In connection with Korea Songi Scheme, Kwon paid for numerous improvements, equipment purchases, and service expenditures for the Wise Honest in U.S. dollars through U.S. financial institutions.  Such transfers constitute a provision of services by U.S. banks to both the sender and recipient of the funds, and U.S. law prohibits banks from providing such services to North Korean parties.  In connection with the March 2018 shipment of coal on board the Wise Honest alone, payments totaling more than $750,000 were transmitted through accounts at a U.S. financial institution.

On May 9, 2019, the U.S. Attorney’s Office filed a civil forfeiture complaint against the Wise Honest, which had previously been seized pursuant to a warrant issued in the Southern District of New York.  Today’s judgment of forfeiture was ordered by U.S. District Judge P. Kevin Castel.

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Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and its New York Field Office, Counterintelligence Division, and thanked the Department of Justice’s Money Laundering and Asset Recovery Section’s Program Operations Unit and Office of International Affairs, the U.S. Coast Guard, and the Department of State for their assistance.

Mr. Berman also thanked Fred and Cindy Warmbier, the parents of the late Otto Warmbier, for their willingness to voluntarily withdraw their claim in the action in order to facilitate the forfeiture of the Wise Honest.

The case is being handled by the Office’s Terrorism and International Narcotics Unit and Money Laundering and Transnational Criminal Enterprises Unit.  Assistant U.S. Attorneys David W. Denton Jr. and Benet J. Kearney are in charge of the case, with assistance from Trial Attorney Christian Ford of the Counterintelligence and Export Control Section.

James Michael Wells Convicted for Murdering Coast Guard Employees

Anchorage, Alaska -- U.S. Attorney Bryan Schroder announced that today, after deliberating for 8 hours, a jury of 6 women and 6 men found James Michael Wells guilty of the April 12, 2012, murders of U.S. Coast Guard Electrician’s Mate First Class James Hopkins (“Hopkins”) and retired Chief Boatswain’s Mate Richard Belisle (“Belisle”).

Wells, now 68, was arrested on Feb. 15, 2013, for the 2012 murders of Hopkins and Belisle, federal employees and Wells’ co-workers at the United States Coast Guard (“USCG”) antenna maintenance facility, located at the USCG Communication Station (“COMMSTA”) on Kodiak Island, Alaska. Wells was convicted in 2014 and the case was reversed on appeal by the Ninth Circuit Court of Appeals in December 2017.

Evidence at trial established that on April 12, 2012, between 7:09 and 7:14 a.m., Hopkins and Belisle were shot and killed with a .44 revolver, which was never found, while working at their duty stations in the Rigger Shop at COMMSTA.  First responders noted no evidence of a break-in or robbery and both men appeared to be victims of a targeted killing. Wells was due to arrive at the Rigger Shop the same time respectively as Hopkins and Belisle, but instead left two phone messages for Hopkins and Belisle, noted to be after the victims’ time of death, stating Wells was running late due to a flat tire. Wells ended up arriving to the Rigger Shop well over an hour after his normal start time, immediately claiming to have had a flat tire.

USCG security videos captured Wells passing the Main Gate at Base Kodiak at 6:48 a.m. in his white Dodge truck on his way toward the Kodiak Airport, and returning back toward his residence at 7:22 a.m. However, a small blue SUV, owned by Wells, was captured on USCG security videos passing the Rigger Shop front entrance. The evidence showed Wells drove his white Dodge pickup truck to the airport, where he swapped vehicles and drove Nancy Wells’ blue Honda CR-V to COMMSTA to commit the murders. There was a 34-minute period of time for which James Wells could not account and that unexplained discrepancy captured the attention of the interviewing agents. Additionally, a tire with a nail in it was seized and through extensive testing, the examiner concluded that the nail had been manually inserted into the tire, undermining the foundation of Wells’ alibi that he had picked up a nail while driving to work on the morning of the murders.

At trial, Wells testified that he had a low tire, stopped and went to the bathroom at Servant Air and then went home. He further testified that he removed the nail and replaced it with a larger nail which was the one discovered by investigators.

On October 8, 2019, Wells was convicted on all six counts of the indictment:  two counts of murder in the first degree, in violation of 18 U.S.C. § 1111, one for each victim; two counts of murder of an officer or employee of the United States, a violation of 18 U.S.C. § 1114, one for each victim; and two counts of possession and use of a firearm in relation to a crime of violence, a violation of 18 U.S.C. § 924(c).

Sentencing will be scheduled by the court in the coming days.  The law provides for a mandatory sentence of life in prison.  Wells will remain in custody pending sentencing.

U.S. Attorney Bryan Schroder notes that the conviction comes after an extensive investigation led by the FBI, with support from the U.S. Coast Guard Investigative Service, and the Alaska State Troopers.

Deputy Criminal Chief Steven Skrocki prosecuted the case along with Assistant U.S. Attorney Christine Sherman, and Commander Kelly Stevens, U.S. Coast Guard, who was appointed as a Special Assistant U.S. Attorney.