Anchorage, AK – A 47-year-old Anchorage woman, Dusty Starr, has been arrested and indicted on federal charges for allegedly orchestrating a wire and bank fraud scheme that exploited stolen identities and fraudulent applications for COVID-19 pandemic-era rent relief. Authorities say the scheme resulted in tens of thousands of dollars in losses to financial institutions and local organizations.
Alleged Fraud Scheme
According to the U.S. Attorney’s Office for the District of Alaska, Starr’s alleged scheme occurred between February 2021 and February 2022. Prosecutors say she used victims’ personal information to unlawfully obtain money, including applying for rent relief funds using stolen identities.
“Starr is accused of submitting false information that misrepresented victims as landlords seeking aid for tenants who could not pay rent,” officials said.
In one instance in July 2021, Starr allegedly created a fraudulent email account and used a victim’s identifying information to submit a rent relief application through a limited liability company registered under the victim’s name. Investigators say three payments totaling $17,000 were deposited into a bank account Starr controlled but had opened in the victim’s name. Authorities estimate that total losses tied to fraudulent rent relief applications exceeded $47,500.
Additional Alleged Crimes
In addition to wire fraud, Starr is accused of forging checks from Alaska organizations and depositing them into accounts she controlled. In September 2021, prosecutors say she deposited a $918 check drawn from a religious organization’s account. Further investigation uncovered multiple fraudulent checks and unauthorized electronic transfers, resulting in estimated losses of more than $6,250.
Authorities with the Alaska State Troopers and a financial institution linked these transactions to Starr as part of the broader investigation into the scheme.
Charges and Potential Penalties
Starr has been charged with:
- Three counts of wire fraud
- Three counts of bank fraud
- Three counts of aggravated identity theft
- Two counts of possession of stolen mail
She is scheduled to make her first court appearance before a federal judge on Jan. 20, 2026.
If convicted, Starr faces a mandatory minimum sentence of two years in prison for each aggravated identity theft charge, in addition to up to 30 years on the remaining counts.
Community and Legal Context
The case highlights ongoing concerns about fraud targeting government relief programs, particularly those implemented during the COVID-19 pandemic. Authorities continue to emphasize the importance of verifying identities and financial records when processing relief applications to prevent similar schemes.
Financial institutions and local organizations affected by the scheme are working with investigators to recover losses and strengthen safeguards against fraudulent transactions.
Conclusion
The arrest of Dusty Starr underscores the seriousness of identity theft and fraud related to pandemic-era relief programs. Prosecutors are pursuing multiple felony charges, which could result in significant prison time if convictions are secured.
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