District of Montana
Press releases recorded for this federal judicial district.
Fortine woman sentenced to prison for embezzling from Eureka community programsRead the Press Release
MISSOULA—Fortine resident Roseann Robyn Kipp, who admitted stealing from two Eureka community programs, was sentenced today to eight months in prison, three years of supervised release and ordered to pay $48,431 restitution, U.S. Attorney Kurt Alme said.
Kipp, 40, pleaded guilty in November to wire fraud.
U.S. District Judge Donald W. Molloy presided.
Prosecutors said evidence showed that for about two years, Kipp embezzled funds from the Eureka Rural Development Partners (ERDP), which promoted and assisted businesses, and from the Area Chamber of Commerce, which put on an annual event called the “Rendezvous.” Kipp was an administrative assistant who provided bookkeeping services for ERDP. She also was the treasurer for the Chamber of Commerce and collected funds in a PayPal account for the Rendezvous.
Kipp was fired on Nov. 25, 2015 after she admitted to embezzling funds from the ERDP MasterCard account. The amount stolen was about $45,909. Kipp also stole about $2,501 from the Chamber’s PayPal account for the Rendezvous.
In a January 2018 interview with law enforcement, Kipp admitted to embezzling from ERDP.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI.
XXX
Woman sentenced for firearms violationsRead the Press Release
GREAT FALLS—A California woman who was stopped in Chouteau County while driving a stolen vehicle was sentenced today to three years in prison and three years of supervised release for conviction on a firearms crime, U.S. Attorney Kurt Alme said.
Nikki Graham, 31, of Ventura, Calif., pleaded guilty in November to being a felon in possession of a firearm.
U.S. District Judge Brian M. Morris presided.
Prosecutors said Graham was stopped on Dec. 5, 2017 by a Chouteau County sheriff’s deputy while driving a stolen Chevy Tahoe. Three other persons, including two juvenile males, also were in the vehicle. Graham had a .40-caliber handgun. She handed the firearm to one of the juveniles, telling him to take it because as a juvenile, he would not get into as much trouble as she would. Graham, who has felony convictions in California for burglary, possession of a controlled substance and receiving stolen property, was prohibited from possessing firearms.
Assistant U.S. Attorney Jared Cobell prosecuted the case, which was investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Rocky Boy’s Tribal Police and Choteau County Sheriff’s Office.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Missoula man sentenced to six years for methRead the Press Release
MISSOULA—Missoula resident Gerald Eugene Kennedy, who admitted to distributing methamphetamine for two to three years, was sentenced today to six years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Kennedy, 54, pleaded guilty in October to possession with intent to distribute meth.
Chief U.S. District Judge Dana L. Christensen presided.
Kennedy was charged after a Missoula Police Department sergeant pulled Kennedy over during a traffic stop and discovered meth on Kennedy’s person during a pat down. Kennedy admitted that the substance was meth and later admitted to having distributed meth for about two to three years.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Montana Regional Violent Crimes Task Force and FBI.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Missoula meth dealer sentenced to seven yearsRead the Press Release
MISSOULA—Missoula resident Canon Jack Byers, 32, who admitted to distributing more than seven pounds of methamphetamine in 2018, was sentenced today to seven years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Byers pleaded guilty in October to conspiracy to distribute meth.
Chief U.S. District Judge Dana L. Christensen presided.
Prosecutors said evidence would show that in 2018, Byers was identified as a meth dealer by confidential informants. One informant bought about five pounds of meth from Byers from March to May. Byers, who was arrested on May 20, 2018 on an outstanding probation violation, admitted to law enforcement that he had obtained more than seven pounds of meth from March until his arrest.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Montana Regional Violent Crimes Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Billings man sentenced to 15 years for meth traffickingRead the Press Release
BILLINGS—Billings resident James Nevels, III, was sentenced to 15 years in prison and five years of supervised release today for trafficking methamphetamine in the Billings community, U.S. Attorney Kurt Alme said.
Nevels, 40, pleaded guilty in August to conspiracy to possess meth with intent to distribute and to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
Prosecutors said evidence showed that drug investigators received information in October 2017 that Nevels and co-defendant, Nicole Waldhalm of Billings, were distributing in the Billings area meth that Waldhalm received from California. A confidential informant made meth buys from both Waldhalm and Nevels. In December 2017, the Montana Highway Patrol arrested Waldhalm, who was in possession of one ounce of meth. Waldhalm admitted that she and Nevels had brought between two and four ounces of meth from California to Montana.
Waldhalm was convicted in July 2018 in the case and sentenced last November to five years in prison.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force, the Drug Enforcement Administration, FBI and Billings Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Judge sentences Browning man to prison for sex abuse of minorRead the Press Release
GREAT FALLS—A Browning man who admitted providing a minor methamphetamine in exchange for sexual favors was sentenced on Feb. 14 to 51 months in prison and six years of supervised release, U.S. Attorney Kurt Alme said.
Richard “Bitsy” Smith, 37, pleaded guilty in November to sexual abuse of a minor and distribution of a controlled substance to a person under 21.
U.S. District Judge Brian M. Morris presided.
Prosecutors said an FBI investigation in 2017 into reports of individuals on the Blackfeet Indian Reservation providing meth to minors in exchange for sexual activity led to Smith and the victim. Search warrants served on Facebook accounts showed Smith and the victim were engaged in a sexual and drug relationship. The victim told investigators that Smith had provided her meth and that they had sex on multiple occasions. Smith admitted to investigators in August 2018 that he had been dealing meth for about two years to support his addiction.
Assistant U.S. Attorney Jeffrey Starnes prosecuted the case, which was investigated by the FBI.
XXX
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges and indictments handed down by the Grand Jury were unsealed. Indictments are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 12 was:
NICHOLAS TYLER SMITH, 24, of Livingston, on charges of receipt of a firearm while under information and false statement in firearms acquisition. Smith was detained. If convicted of the most serious crime, Smith faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-06.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 13 was:
DUSTIN CHARLES GOUDREAUX, 29, of Lame Deer, on charges of assault resulting in serious bodily injury on the Northern Cheyenne Indian Reservation. Goudreaux was detained. If convicted of the most serious crime, Goudreaux faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the FBI. Pacer case reference. 19-09.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch on Feb. 12 was:
JUSTIN MICHAEL ALLEN, 33, of Los Angeles, CA, on a criminal complaint charging him with felon in possession of a firearm. Allen waived a preliminary hearing and is detained. If convicted of the most serious crime, Allen faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missoula High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-17.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch on Feb. 13 was:
DEREK ALAN DEMBOWSKI, 41, of Thompson Falls, on a criminal complaint charging him with felon in possession of a firearm, possession of a firearm in furtherance of a drug trafficking crime and distribution of methamphetamine. He is detained. If convicted of the most serious crime, Dembowski faces a minimum mandatory five years to life, a $250,000 fine and five years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-15.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch on Feb. 14 were:
JENNIFER JILL DANNA, 46, and PRZEMEK ROGALSKI, 40, both of California, on a criminal complaint charging them with conspiracy to distribute methamphetamine. Both are detained. Judge Lynch found there was probable cause to proceed and the case will be presented to a grand jury. If convicted of the most serious crime, Danna and Rogalski face a minimum mandatory 10 years to life in prison, a $10 million fine and a minimum five years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missoula High Intensity Drug Trafficking Area Task Force and the Drug Enforcement Administration. Pacer case reference. 19-18.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Feb. 14 was:
DOUGLAS JOSEPH DAYRIDER, 38, of Cut Bank, on charges of failure to register as a sex offender on the Blackfeet Reservation. He was detained. If convicted of the most serious crime, Dayrider faces a maximum 10 years in prison, a $250,000 fine and five years of supervised release. The case was investigated by the U.S. Marshals Service. Pacer case reference. 19-05.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Browning man sentenced to 16 years for sexually abusing, giving meth to minorRead the Press Release
GREAT FALLS—A Browning man convicted of having sex with and giving methamphetamine to a minor at his home on the Blackfeet Indian Reservation was sentenced on Thursday to 16 years in prison and six years of supervised release, U.S. Attorney Kurt Alme said.
Bruce Dragonfly, 56, pleaded guilty in July to aggravated sexual abuse of a minor and to distribution of a controlled substance to a minor.
U.S. District Judge Bryan M. Morris presided.
An investigation found that in 2015 at Dragonfly’s home, the victim, a minor, and others attended a party in which everyone could use methamphetamine together. The evidence, prosecutors said, showed that Dragonfly supplied at least some of the meth to the partygoers. During the party, Dragonfly requested the victim perform a sex act on him and in exchange, provided her meth.
Dragonfly continued providing the victim meth in exchange for sex, money or other non-sexual favors until mid-2017, both on and off the Blackfeet Reservation. Dragonfly and the victim typically communicated through Facebook and Internet chat services to arrange meetings.
In an interview with FBI agents in April 2018, Dragonfly confirmed he had previously provided the victim with meth in exchange for sex.
Assistant U.S. Attorney Jeffrey Starnes prosecuted the case, which was investigated by the FBI and Blackfeet Law Enforcement Services.
XXX
Ballantine man sentenced for two attempted bank burglariesRead the Press Release
BILLINGS—A federal judge on Wednesday sentenced a Ballantine man who admitted trying to break into two banks to two years in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Anthony William Felton, 27, pleaded guilty in October to bank burglary.
U.S. District Judge Susan P. Watters presided. Judge Watters will set a hearing to determine restitution.
Prosecutors said the evidence would show that Felton broke into the Beartooth Bank in Billings on Oct. 24, 2017 and tried to break into the ATM machine using a grinder and other tools. He fled before officers responded to the alarm. Officers found a grinder, pocket knife and an extension cord near the ATM. Security footage captured the attempt but was inconclusive about the identity of the suspect, who appeared to avoid the cameras.
A second bank burglary occurred on Dec. 6, 2017 when Felton broke into the Stockman Bank in Worden by breaking an interior door. Felton used an angle grinder to try to access cash in an ATM. He was unsuccessful but caused about $12,000 in damages.
Law enforcement arrested Felton on Dec. 14, 2017 after he was suspected of multiple robberies in the area. A search of his backpack yielded a bandana, a pry bar and bolt cutter. During search of a vehicle Felton was using, officers found a concrete saw that appeared to be the same saw used in the bank burglaries. Felton admitted to law enforcement he attempted to rob both banks.
Assistant U.S. Attorney Zeno Baucus prosecuted the case, which was investigated by the FBI.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Missoula man sentenced for meth, firearms violationsRead the Press Release
MISSOULA—A Missoula man who admitted possessing methamphetamine and a firearm was sentenced on Tuesday to 10 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Jeremy Douglas Smith, 29, pleaded guilty in October to possession with intent to distribute meth and to possessing a firearm in furtherance of a drug trafficking crime.
Chief U.S. District Judge Dana L. Christensen presided.
Prosecutors said evidence showed that on May 2, 2018, the Missoula County Sheriff’s Office conducted a traffic stop on a vehicle Smith was driving. A search warrant for the vehicle led to the recovery of meth, a 9mm pistol, drug paraphernalia and ammunition. Smith admitted to law enforcement that he distributed meth and possessed the firearm.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the FBI.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Livingston man sentenced in firearms caseRead the Press Release
BILLINGS—A Livingston resident who admitted illegally possessing a firearm was sentenced today to five years of probation, U.S. Attorney Kurt Alme said.
Cody Allen Viers, 36, pleaded guilty in October to being a prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
Prosecutors said that on Feb. 13, 2018, law enforcement interviewed an individual about a 9mm semi-automatic pistol he had purchased earlier and had given to another person. Officers also interviewed Viers, who said he had bought the firearm and had provided it to the person law enforcement interviewed in February. Viers also admitted he was prohibited from possessing a firearm because of a previous conviction for partner or family member assault. A criminal history review found that Viers had two convictions for the crime, a misdemeanor.
Assistant U.S. Attorney Zeno Baucus prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Lame Deer man admits fatal stabbingRead the Press Release
BILLINGS—Lame Deer resident Darrell Lee Whiteman, Jr. admitted today that he fatally stabbed a person during an argument in March 2017, U.S. Attorney Kurt Alme said.
Whiteman, 29, pleaded guilty to voluntary manslaughter. Whiteman faces a maximum 15 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan Watters presided. Judge Watters set sentencing for June 21, 2019. Whiteman is detained.
Prosecutors said evidence would show that on March 4, 2017, Whiteman was at a Lame Deer residence, on the Northern Cheyenne Indian Reservation, drinking with others. Whiteman got into an argument with his girlfriend, and the victim told Whiteman to stop. Whiteman and the victim then got into a fight that was broken up by another person.
The victim went to the kitchen for a drink of water, and Whiteman grabbed a knife from the kitchen. Whiteman reached around another individual who was in between the two and stabbed the victim once in the chest. Whiteman left the residence and the victim later died.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI.
XXX
Garryowen man sentenced in assaultRead the Press Release
BILLINGS—Garryowen resident Tyrone Joe Oldelk, who admitted beating a person, was sentenced today to prison and to three years of supervised release, U.S. Attorney Kurt Alme said.
Oldelk, 30, pleaded guilty in October to assault resulting in substantial bodily injury of a dating partner.
U.S. District Judge Susan Watters presided. Judge Watters sentenced Oldelk to 24 months in prison and gave him credit for three months he served in tribal jail for the same offense, for a net sentence of 21 months.
Prosecutors said evidence showed that Oldelk assaulted the victim on Nov. 18, 2017 in Garryowen on the Crow Indian Reservation after he got drunk and the two began arguing. Oldelk punched, choked and kicked the victim on various parts of her body over several hours and stopped when another person entered the room. The beating resumed the next morning and stopped when the victim, attempting to defend herself, hit Oldelk in the face and broke his nose.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI.
XXX
Judge sentences man to nine years in prison in child porn caseRead the Press Release
MISSOULA—A man who admitted downloading child pornography to his cell phone was sentenced today to nine years in federal prison and 15 years of supervised release, U.S. Attorney Kurt Alme said.
Wes Brady Johnson, 49, formerly of Marion, pleaded guilty in October to possession of child porn.
Chief U.S. District Judge Dana L. Christensen presided at sentencing. Judge Christensen also ordered $3,000 restitution.
An investigation began in September 2016 when a Montana Internet Crimes Against Children Task Force agent received two tips that a user was uploading child porn with a Twitter account and that the account was connected to Johnson. Johnson’s cell phone was seized during a search of a Flathead County residence where he had been staying. Johnson said in an interview that he had been downloading child porn for about six months and that the files contained sexually explicit images of prepubescent girls.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the ICACTF, Flathead County Sheriff’s Office and Montana Division of Criminal Investigation.
XXX
U.S. Attorney hires five new attorneysRead the Press Release
BILLINGS – U.S. Attorney Kurt Alme announced today the recent hiring of five new assistant U.S. attorneys for the District of Montana.
Two of the attorneys are in the Billings office, while two attorneys are in the Great Falls office and one attorney is in the Helena office.
“I am pleased that these five new attorneys, with excellent education and experience, have agreed to join our office. They received high praise from past employers and other references as to their abilities, and importantly, their character and ethics,” Attorney Alme said. “Their addition will help our office keep the people of Montana safe from meth-driven violent crime, address violent and drug crime on our reservations and fight prescription pill diversion.”
Joining the Billings office’s criminal division are Karla Painter and Julie Patten:
- Painter, from Huntley, received her undergraduate degree from Montana State University – Billings in 2008 and her law degree from the University of Montana in 2011. Painter served as a law clerk for Montana Supreme Court Justice Beth Baker for one year then joined the Missoula County Attorney’s Office, where she advanced to become a senior deputy county attorney prosecuting violent felony and financial crimes.
- Patten, from the White Sulphur Springs area, received her undergraduate degree from the University of Montana in 2007 and her law degree from UM in 2011. Patten joined the Yellowstone County Attorney’s Office in 2011 and advanced to become a senior deputy county attorney. She prosecuted violent crimes and served on the felony drug court team. Patten also represented the Yellowstone County Attorney’s Office on the Project Safe Neighborhoods task force, which is a federal Department of Justice initiative to bring together multiple law enforcement agencies to fight meth-driven violent crime.
Joining the Great Falls office’s criminal division are Kalah A. Paisley and Cassady A. Adams:
- Paisley, from Salem, OR, received her undergraduate degree from Western Oregon University in 2004 and her law degree from Georgetown University, Washington D.C., in 2007. Paisley served as deputy legal counsel for the Crow Nation from 2008 to 2012. Beginning in 2013, Paisley was a prosecuting attorney for Clark County, Washington. Paisley also serves as a judge advocate for the Army National Guard, serving a deployment in the Middle East from June 2017 to March 2018.
- Adams, from Mobile, AL, received her undergraduate degree from Tulane University, LA, in 2012, and her law degree from the University of Colorado in 2015. After graduation, Adams worked as a deputy district attorney for the 11th Judicial District Attorney’s Office in Colorado.
Joining the Helena office’s affirmative civil enforcement unit is Michael A. Kakuk.
- Kakuk, from Helena, received his undergraduate degree from St. Cloud State University, MN, in 2003, and his law degree from Willamette University, Oregon, in 2007. Kakuk began as an honors attorney then worked as an assistant attorney general with the Oregon Department of Justice. In 2013, Kakuk became an attorney with the Office of the Montana State Auditor where he prosecuted both civil and criminal violations of Montana law. He also was an adjunct professor, teaching business law at Helena College, with the University of Montana.
XXX
Libby man sentenced for illegally possessing firearmsRead the Press Release
MISSOULA—Libby resident Joshua David Hoffman was sentenced on Friday to eight months in prison and three years of supervised release for illegally possessing three firearms, U.S. Attorney Kurt Alme said.
Hoffman, 43, pleaded guilty in October to being a felon in possession of a firearm.
Chief U.S. District Judge Dana L. Christensen presided. He also ordered the forfeiture of firearms and ammunition seized in the case.
Prosecutors said that on June 9, 2018, law enforcement pulled over Hoffman, who admitted he had firearms in his possession. In a search of his vehicle, law enforcement found a 9 mm pistol, a .22 caliber rifle and a .40 caliber pistol, along with 216 rounds of assorted ammunition. Hoffman, having been previously convicted of a felony, was prohibited from possessing firearms.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lincoln County Sheriff’s Office.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Judge sentences Lame Deer woman to prison for methRead the Press Release
BILLINGS—A Lame Deer woman convicted in a large methamphetamine trafficking conspiracy that brought multi-pound quantities to Montana from California was sentenced on Thursday to nine months in prison, two years of house arrest and five years of supervised release, U.S. Attorney Kurt Alme said.
Brandy Joy Pretty On Top, 31, pleaded guilty in July 2018 to possession with intent to distribute meth.
U.S. District Judge Susan Watters presided.
An investigation began in 2015 into a meth trafficking organization that was bringing multi-pound quantities of the drug from the San Jose area in California to Montana for distribution. The investigation ultimately led to Pretty On Top, who was identified as a local dealer on the Northern Cheyenne Indian Reservation. Pretty On Top got meth from one of the San Jose area suppliers, who traveled to Montana.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI Big Sky Safe Streets Task Force and Eastern Montana High Intensity Drug Trafficking Area Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned this week before U.S. Magistrate judges and indictments handed down by the Grand Jury were unsealed. Indictments are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 5 was:
TORI LASHAWN SMITH, 24, Billings, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute heroin and possession with intent to distribute methamphetamine. Smith was detained. If convicted of the most serious crime, Smith faces a minimum mandatory 10 years to life in prison, a $10 million fine and a minimum five years of supervised release. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 18-153.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch and pleading not guilty on Feb. 6 was:
BRANDY CHRISTINE ELLENWOOD, 29, of Polson, on charges of acquire controlled substance by fraud, deception or subterfuge. Ellenwood was released pending trial. If convicted of the most serious crime, Ellenwood faces a maximum four years in prison, a $250,000 fine and one year of supervised release. The case was investigated by the Montana Criminal Investigation Division and the federal Drug Enforcement Administration. Pacer case reference. 19-2.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Department of Justice announces update on combating human trafficking; Montana task force aiding in investigations, prosecutionsRead the Press Release
BILLINGS -- Montana, through a multi-agency task force on human trafficking, supports Department of Justice efforts to raise awareness about the activity and to fight this violent crime, U.S. Attorney Kurt Alme said today.
The Department of Justice dedicated January as National Slavery and Human Trafficking Prevention Month, as proclaimed by President Trump in December 2018.
In 2018, the Department of Justice fought human trafficking by investigating and prosecuting traffickers, dismantling transnational human trafficking networks, enhancing victim identification and protection of victims of trafficking and funding and providing domestic and international anti-trafficking programs.
“Human trafficking is a horrible crime against the human dignity of the victims, and it can have no place in our society,” Acting Attorney General Matthew G. Whitaker said. “But the Department of Justice is taking action against the traffickers. In fiscal year 2018, the Department of Justice secured over 500 human trafficking convictions—an increase from the previous year,” Whitaker said.
“Human trafficking, which exploits and enslaves both adults and juvenile victims, is happening in Montana,” U.S. Attorney Alme said. “However, the collaborative work of the Montana task force in sharing and discussing leads, trends and operations is key to bringing human traffickers to justice and to aiding victims. If anyone in Montana sees any evidence of human trafficking they should bring it to the attention of law enforcement right away,” he said.
In 2018, the Montana Human Trafficking Task Force assisted in the prosecution and convictions of four human trafficking related cases. The cases included Terrance Edwards, who was sentenced to 30 years in federal prison for convictions on sex trafficking and other charges; co-defendant Francine Granados, who was sentenced to two years in federal prison for witness tampering in the Edwards case; and Christina Jackson, who was sentenced to five years of federal probation for conviction of transportation of adults. In Missoula County, Walter Hill is awaiting trial in state district court on charges of promoting prostitution. In 2015, Hill was revoked on violations for a previous conviction for promoting prostitution.
The Montana Human Trafficking Task Force is composed of federal, state and other law enforcement agencies that meet quarterly to discuss trends in human trafficking in the state, operations, tactics and active cases. There are about 20 members, representing the US Attorney’s Office, FBI, Drug Enforcement Administration, Homeland Security Investigations, Bureau of Indian Affairs, IRS, the Montana Department of Justice, representatives from the Fort Peck, Ft. Belknap and Blackfeet tribes and the Missoula Police Department. The task force works in collaboration with numerous private-public task forces throughout the state. The task force was created in 2012 and its membership has evolved.
Montana communities with regional task forces include Yellowstone, Missoula, Flathead, Gallatin and Cascade counties. Anyone interested in working on community strategies or assisting victims of human trafficking should reach out to their regional task force, U.S. Attorney Alme said.
XXX
Poplar man sentenced in beating deathRead the Press Release
GREAT FALLS – A Poplar man was sentenced today to six years and eight months in prison and to three years of supervised release after he admitted beating to death a man during a quarrel in July 2017, U.S. Attorney Kurt Alme said today.
Errol Wayne Longee, 35, pleaded guilty in November to voluntary manslaughter for the July 1, 2017 death of a man at a Poplar residence on the Fort Peck Indian Reservation.
U.S. District Judge Brian M. Morris presided. Judge Morris also ordered $2,816 restitution.
Prosecutors said Longee and the victim had been hanging out and drinking in the backyard of the residence when another individual arrived. That individual made accusations against the victim and starting punching the victim in the face. Longee then started assaulting the victim, kicking the victim in the face and stomping on his head. Longee left the scene and later told a relative that he thought he had killed the victim. When interviewed by law enforcement, Longee admitted to hitting and kicking the victim multiple times.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI and Ft. Peck Tribal Department of Law and Justice.
XXX
Judge orders 22 years in prison for Hays woman convicted of sexually abusing childRead the Press Release
GREAT FALLS – Hays resident Geneva Nadeau, convicted of sexually abusing and photographing a child, was sentenced today to 22 years in federal prison and to 15 years of supervised release, U.S. Attorney Kurt Alme said.
Nadeau, 38, pleaded guilty earlier to aggravated sexual abuse.
U.S. District Judge Brian M. Morris presided.
Prosecutors said that in October 2015 in Hays, on the Fort Belknap Indian Reservation, Nadeau sexually abused a child, who was younger than 12, and photographed the abuse. Nadeau was indicted after the Blaine County Sheriff’s Office got a tip that Nadeau had an email address that contained child pornography. Nadeau was arrested on unrelated charges and law enforcement discovered she also had on her tablet child porn images, including the sex abuse of the child.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI, Fort Belknap Police Department and the Blaine County Sheriff’s Office.
XXX
Poplar man admits manslaughter in baby’s deathRead the Press Release
GREAT FALLS – Poplar resident Dennis Lloyd Red Boy, 28, pleaded guilty today in federal court to involuntary manslaughter for the death of a baby, U.S. Attorney Kurt Alme said.
Red Boy faces a maximum eight years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Brian M. Morris presided at the hearing. Morris set sentencing for June 5. Red Boy is detained.
Prosecutors said the evidence would show that on Aug. 15, 2017, Red Boy was taking care of children in Poplar, on the Fort Peck Indian Reservation, when a six-month-old baby would not stop crying. After several interviews with investigators, Red Boy admitted he put the baby on her back, but she would not stop crying. He then flipped her over, with her face into the bed, and put a heavy blanket on her. He returned to find the baby was not breathing and immediately sought help. He acknowledged that his actions were the proximate cause of the baby’s death.
Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the FBI.
XXX
Former Blackfeet Tribal chairman arraigned on theft, fraud chargesRead the Press Release
Great Falls – Former Blackfeet Tribal Chairman Willie Andrew Sharp, who is accused of stealing federal money from the Head Start Program, pleaded not guilty to charges in an indictment today, U.S. Attorney Kurt Alme said.
Sharp, 65, of Browning, pleaded not guilty to theft from an Indian tribal government receiving federal funding and to wire fraud as charged in an indictment. The indictment is merely an accusation. Sharp is presumed innocent until proven guilty.
Sharp appeared for arraignment before U.S. Magistrate Judge John T. Johnston in Great Falls. Johnston released Sharp pending trial.
The case is assigned to U.S. District Judge Brian M. Morris.
Sharp faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the most serious charge. The indictment also is seeking a criminal forfeiture money judgment of $38,711 from Sharp.
The indictment alleges that Sharp, while chairman of the Blackfeet Tribe, ultimately oversaw the Head Start Program and approved and ensured others approved overtime at the Blackfeet Head Start Program, knowing that the overtime was false. In total, individuals at the Blackfeet Head Start Program, including Sharp’s wife, Denise L. Sharp, claimed more than 7,800 hours in overtime and received more than $232,000 in federal funds from the program in a 15-month time period, starting in about April 2013. Denise Sharp pleaded guilty earlier to charges in the case and is awaiting sentencing.
Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the FBI.
Pacer case reference. 19-03.
Progress on the case can be monitored through the U.S. District Court calendar and the PACER system. To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned this week before U.S. Magistrate judges and indictments handed down by the Grand Jury were unsealed. Indictments are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Jan. 29 was:
RYAN MCGUIRE, 37, of Mound House, NV, on charges of conspiracy to distribute methamphetamine and distribution of meth. If convicted of the most serious count, McGuire faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. McGuire was released. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 18-157.
Appearing in Billings before U.S. Magistrate Timothy J. Cavan and pleading not guilty on Jan. 31 was:
ELIZABETH ANN HAZZARD, 33, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute meth. If convicted of the most serious count, Hazzard faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Hazzard was detained. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 18-153.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Box Elder man admits domestic assaultRead the Press Release
GREAT FALLS – Box Elder resident Larry Ray Denny, Jr., admitted a domestic assault charge on Tuesday in federal court, U.S. Attorney Kurt Alme said today.
Denny, 46, pleaded guilty to domestic assault by a habitual offender. Denny faces a maximum five years in prison, a $250,000 fine and three years of supervised release.
U.S. Magisrate Judge John T. Johnston presided at the hearing and recommended Denny's plea be accepted by U.S. District Judge Brian M. Morris, who is hearing the case. Sentencing is set for June 6. Denny was released pending sentencing.
Prosecutors said evidence would show that law enforcement arrived at the victim’s residence on the Rocky Boy’s Indian Reservation on Oct. 15, 2017 and that Denny had hit her. Denny has two prior domestic assault convictions.
Assistant U.S. Attorneys Cassady Adams and Ryan Weldon are prosecuting the case, which was investigated by the FBI and Chippewa Cree Law Enforcement.
XXX
Kalispell man sentenced to prison for mineral lease fraud scheme; firearms possessionRead the Press Release
GREAT FALLS – A Kalispell man, previously convicted of a felony, was sentenced to more than 10 years in federal prison on Wednesday for illegally possessing firearms and for a multi-million dollar scheme to defraud investors who gave him money for oil and gas leases and art work, U.S. Attorney Kurt Alme said today.
U.S. District Judge Brian M. Morris sentenced John Kevin Moore, also known as Kevin Moore, 62, to a total of 10 years and five months in prison and to three years of supervised release. Judge Morris also ordered $2,222,817 restitution and a $1,926,725 forfeiture.
In the fraud case, a jury convicted Moore in an August 2018 trial on all 21 counts in an indictment, including 11 counts of wire fraud, nine counts of money laundering and one count of false statement to a federal agent. In the firearms case, Moore pleaded guilty in September 2018 to being a felon in possession of firearms.
“I want to thank Assistant U.S. Attorneys Ryan Weldon and Timothy Racicot, the FBI, IRS and the Montana Auditor’s Office for putting a stop to Moore’s wide-ranging pyramid scheme that could have continued for years and defrauded many more investors,” U.S. Attorney Alme said. “Potential investors and the public in general need to know that fraud schemes like this one are not uncommon in Montana and can ruin lives. We will continue to aggressively prosecute individuals like Moore who scheme to defraud unwitting investors,” Alme said.
“Kevin Moore operated a classic “Ponzi” scheme, gaining the trust of unwitting investors who suffered devastating financial losses,” said Supervisory Senior Resident Agent Rick Shelbourn, of the FBI’s Salt Lake City’s Field Office. “The FBI acknowledges our law enforcement partners and the cooperation of the tenacious victims who helped bring Moore to justice. The FBI aggressively investigates fraud schemes like these and urges the public to be aware of investment opportunities that make exaggerated earnings claims. The public should always exercise due diligence before investing their hard-earned money.”
"Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," said Steven Osborne, IRS Criminal Investigation, Special Agent in Charge, Denver Field Office. “The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel. IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime."
Montana’s Commissioner of Securities and Insurance Matt Rosendale, whose office assisted with the fraud case, said, “We were pleased to be able to work with federal authorities to bring John Kevin Moore to justice. I’d like to thank our team at the State Auditor’s office, the U.S. Attorney’s Office, and everyone else for their diligent work in resolving this case.”
In the fraud case, prosecutors presented evidence that Moore set up two companies, Big Sky Mineral Resources, LLC, in 2014, and Glacier Gala, in 2012, and used them to solicit money from investors by purporting to buy oil and gas leases and to buy and sell lucrative art work. Instead, prosecutors presented evidence that Moore used investors’ money to pay off earlier investors and to pay for personal expenses, including payments on multi-million-dollar properties.
To convince investors to give him money and to provide a sense of comfort about their investments, Moore would reference his wealth and connections with influential people, prosecutors said.
Moore received from investors more than $2 million, based on false claims he made regarding the mining of oil and gas and minerals and the sale of art work, prosecutors said.
When seeking money through Big Sky Mineral Resources, Moore claimed the funds would be used to buy leases and for mining activities in Montana and Arizona and that there was little to no risk. The investment would result in large returns in a short time frame, ranging from 30 days to a few months.
Moore gave some investors in Big Sky Mineral Resources checks and instructed them not to cash the checks until a later date, prosecutors said. The checks bounced when various investors attempted to cash their checks.
When soliciting funds for Glacier Gala, Moore represented he could turn a profit by buying, flipping and storing high-end art. When he received investments for Glacier Gala, Moore kept the money, failed to provide the art as promised and failed to return the art in his possession.
Prosecutors also presented evidence that Moore funneled money from Big Sky Mineral Resources through Glacier Gala to make it look like the money originated from the sale of a painting, when in fact, the money came from investors in Big Sky Mineral Resources.
Moore returned some of the money to investors after they raised concerns about the legitimacy of Big Sky Mineral Resources. Other times, rather than return the money, Moore promised to repay investors through alternative means and then failed to do so.
The fraud scheme ran from about April 2013 until September 2016 in Great Falls and Kalispell.
In the firearms case, Moore, having been convicted in 2003 of mail fraud and barred from possessing firearms, possessed numerous firearms in Glasgow, Kalispell and elsewhere from about November 2015 until the spring of 2017.
In a recording with a confidential informant, Moore said, “I have about 200 guns hidden. They can’t touch me being in possession. They just can’t do it.” Moore then showed the informant the firearms, which law enforcement later identified and photographed. The firearms ranged from shotguns to semi-automatic rifles.
Assistant U.S. Attorneys Ryan Weldon and Timothy Racicot prosecuted the cases, which were investigated by the FBI, IRS and the Montana State Auditor.
XXX
Havre woman sentenced for trafficking OxycodoneRead the Press Release
GREAT FALLS – Havre resident Charly McLain Rosette was sentenced today to three years in prison and three years of supervised for conspiring to distribute prescription pain pills on the Rocky Boy’s Indian Reservation, U.S. Attorney Kurt Alme said today.
Rosette, 26, pleaded guilty in October to conspiracy to distribute and possess with intent to distribute Oxycodone.
U.S. District Judge Brian M. Morris presided.
Prosecutors presented evidence that Rosette, and two co-defendants, Isaiah Starr Standingrock and Devon Draper, conspired to sell Oxycodone pills on the Rocky Boy’s Reservation in 2017 and 2018. During the investigation, law enforcement used confidential sources to buy pills from Rosette.
A task force agent pulled over Standingrock’s and Rosette’s vehicle in December 2017 in Havre. The agent had information that the two were selling Oxycodone on the reservation. The agent found pills and currency in the vehicle. Standingrock’s and Rosette’s phones were seized during the search and a search warrant was obtained for the phones. Rosette’s phone contained drug-related messages between her, Standingrock and Draper.
In an August text message to Draper, Rosette asked for a “half pack,” which agents believed referred to a pre-set amount of Oxycodone. In another text message to Draper, Rosette stated she would sell the pills on the reservation for $45 a pill. Rosette also asked Draper to fly to Great Falls, where she would pick him up and take him to the reservation. Draper messaged Rosette and Standingrock that he would bring 120 pills to Montana. Rosette and Standingrock said they would be able to sell the pills for $60 to $65 each on the reservation within a couple of hours.
Standingrock and Draper pleaded guilty to charges in the case and awaiting sentencing.
Assistant U.S. Attorney Brendan McCarthy prosecuted the case, which was investigated by the Drug Enforcement Administration, and the Tri-Agency Task Force.
XXX
Bozeman man admits child porn, cyberstalking chargesRead the Press Release
MISSOULA – A Bozeman man on Tuesday admitted to multiple charges accusing him of taking sexually explicit images of a minor girl, distributing the images and cyberstalking the victim by placing spytracker software on her cell phone, U.S. Attorney Kurt Alme said today.
Jamie Brock Grubb, 30, pleaded guilty to a total of 10 counts, including seven counts of distribution of child pornography, transportation of child porn, cyberstalking and interception of wire, oral and electronic communications.
Chief U.S. District Judge Dana L. Christensen presided. A sentencing date will be set later.
Grubb faces a minimum mandatory 15 years to 40 years in prison, a $250,000 fine and five years to life of supervised release on the most serious charge of distribution of child porn. He was detained.
Prosecutors said that in 2011, Grubb was in a relationship with a minor girl and took sexually explicit images of her. While a minor, the girl also took sexually images of herself and sent them electronically to Grubb. Grubb then distributed those images without the victim’s knowledge from 2015 to 2017.
During the investigation, Gallatin County Sheriff’s Office detectives got search warrants for Grubb’s email account and determined that he had transported the sexually explicit images and a video of the victim by emailing them to himself.
Detectives also analyzed the victim’s smart phone and other smart phones in Grubb’s possession and determined Grubb had placed spytracker software on the victim’s phone without her knowledge. There was evidence of the same software on Grubb’s phone. Detectives also found that Grubb had intercepted the victim’s communications, finding audio recordings of the victim’s phone calls with third parties on his phone. Grubb’s email account also showed records regarding the spytracker software.
Assistant U.S. Attorney Cyndee Peterson is prosecuting the case, which was investigated by U.S. Probation and Parole, the Gallatin County Sheriff’s Office and Homeland Security Investigations.
XXX
Libby woman admits tax evasionRead the Press Release
MISSOULA – A Libby woman admitted in federal court today to evading income taxes for two years while she was serving as the financial caretaker for an individual who was unable to care for herself, U.S. Attorney Kurt Alme said.
Candace Cummings, 65, pleaded guilty to tax evasion during a hearing before U.S. Magistrate Judge Jeremiah C. Lynch. Judge Lynch will recommend Cummings’ plea be accepted by U.S. District Judge Dana L. Christensen, who is presiding in the case.
Cummings faces a maximum five years in prison, a $100,000 fine and three years of supervised release. She was released pending sentencing, which was set for May 16.
Prosecutors said the evidence would show that Cummings failed to report income of about $140,188 in 2012, which produced a tax loss of $35,096, and income of about $52,500 in 2013, which produced a tax loss of $13,420.
In late 2011, Cummings agreed to become the financial caretaker for a person who was unable to care for herself. Adult Protective Services assigned a power of attorney to Cummings on the individual’s behalf. APS told Cummings she needed to keep track of receipts for expenses she paid for the individual, and Cummings agreed to serve as a fiduciary without compensation.
In 2012 and 2013, Cummings used the individual’s money for personal expenses and failed to report the money as income on her own tax returns. In one instance, Cummings sold three of the individual’s savings bonds, worth $24,804. She deposited $10,804 into the individual’s account and bought a cashier’s check in her name for $10,000, which she deposited into her own bank account. Cummings received the remaining $4,000 in cash.
Cummings also sold three more savings bonds, worth $16,408. She received a cashier’s check in her name for $6,000, which she later deposited into her bank account, and the remaining $10,408 in cash.
In 2013, after several suspicious transactions involving the individual’s certificates of deposit and savings bonds, the bank contacted APS and local law enforcement. APS revoked Cummings’ power of attorney based on the suspicious activity.
Assistant U.S. Attorney Timothy Racicot is prosecuting case, which was investigated by the IRS’s Criminal Investigation Division.
XXX
Great Falls man sentenced in fraud, money laundering schemeRead the Press Release
GREAT FALLS – Great Falls resident Jay Nash, who admitted defrauding four persons of more than $800,000 in real estate schemes, was sentenced on Tuesday to three and one-half years in prison and to three years of supervised release, U.S. Attorney Kurt Alme said today.
U.S. District Judge Brian M. Morris, who presided at sentencing, also ordered $842,729 in restitution.
Nash, 50, pleaded guilty in May 2018 to wire fraud and to money laundering.
Prosecutors said Nash took advantage of elderly persons, widows and friends, defrauding them and spending the money on boats, furniture and his mother’s house.
In one of the cases, Nash obtained a warranty deed in August 2011 on a house owned by one of the victims. The parties entered into a promissory note, which was secured by a mortgage on the property. The mortgage, however, was never filed with Cascade County. Four months later, without the victim’s knowledge, Nash took out two loans totaling more than $180,000 on the property. Nash then sold the property and did not give the proceeds to the victim.
As a result of the sale, $246,763 was wire transferred from Mann Mortgage. Nash then deposited $47,823, which represented the proceeds of the sale of the house after previous mortgages were paid.
Investigators determined that Nash spent the victim’s money from the two mortgages and ultimate sale of the house on boats, furniture, his mother’s house and other unrelated living expenses. None of the expenditures was approved by the victim.
The investigation also found that Nash had defrauded three other victims in similar schemes by entering promissory notes with the individuals and spending the money on unauthorized purchases.
Prosecutors said the fraud loss was more than $800,000.
U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI and IRS.
XXX
Jury convicts Billings man in armed casino robberyRead the Press Release
BILLINGS—A jury convicted Billings resident Antonio Francisco Gutierrez on January 16 in the 2018 armed robbery of Dotty’s Casino following a three-day trial, U.S. Attorney Kurt Alme said today.
The jury found Gutierrez, 36, guilty of three counts, including robbery affecting commerce, brandishing a firearm in furtherance of a crime of violence and being a felon in possession of a firearm. Gutierrez is detained.
U.S. District Judge Susan Watters presided at the trial. Watters set sentencing for May 16.
Gutierrez faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the robbery count and a consecutive mandatory seven years to life, a $250,000 fine and five years of supervised release on the brandishing count.
Prosecutors alleged that on Feb. 5, 2018, Gutierrez asked co-defendant, Christopher Esrey, to drive him to Dotty’s Casino, on Montana Sapphire Drive, near Shiloh Road, to meet a friend to “get some money.” The pair arrived at the casino at about 11:43 p.m. Esrey waited in the car while Gutierrez entered the casino wearing a hood, hat and facemask. He tried to open the inner door but it was locked. Gutierrez pushed a buzzer to summon a casino attendant, who motioned for him to remove his clothing before she unlocked the inner door.
Gutierrez mimed as if he was going to remove the items and the attendant opened the door and began walking back to her station, prosecutors alleged. When the attendant unlocked the door, Gutierrez stopped removing his face coverings, took a pistol from his coat pocket, cocked it and pointed it at the attendant’s back. The attendant froze, raised her hands and complied with Gutierrez’s instruction to empty the till.
Gutierrez got back into the idling vehicle, and the attendant reported the robbery to the Billings Police Department. Gutierrez and Esrey eventually went to gamble at another casino, where they were detained by officers.
Esrey pleaded guilty to accessory after the fact and is to be sentenced on Feb. 7.
Assistant U.S. Attorneys Colin Rubich and Tom Godfrey prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Billings Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
California man sentenced to seven years in Sidney meth caseRead the Press Release
BILLINGS – California resident Raymond M. Fitch was sentenced to seven years in federal prison and to five years of supervised release on January 25 for conviction in a methamphetamine case in which the drug was mailed to Sidney from California, said U.S. Attorney Kurt Alme today.
Fitch, 59, of Imperial Beach, Calif., pleaded guilty earlier to possession with intent to distribute meth.
U.S. District Judge Susan Watters presided at sentencing.
The investigation began in about August 2017 when the Montana Division of Criminal Investigation received information that two individuals from Sidney had been receiving regular shipments of meth by mail at their residence from a source in California.
On August 29, 2017, the U.S. Postal Service observed a package addressed to one of these persons from Chula Vista, Calif. The sender’s return address was to a strip mall. Law enforcement executed a search warrant on the package and found a clear plastic bag containing meth along with a note addressed to “T&T.” Officers also found a clear plastic bag containing about 54 grams of pure meth with a note reading “RF you owe 4000 total.” Fifty four grams of meth is the equivalent of about 432 individual doses.
During an interview, one of these co-conspirators told officers that “RF” was Ray Fitch and that Fitch received one ounce of meth from the California supplier in every package the source sent. The co-conspirator estimated that Fitch had received numerous packages of meth from the source. The second co-conspirator corroborated the statement and said that the meth reserved for Fitch was always labeled with the initials “RF.”
Law enforcement also interviewed one of Fitch’s customers who bought about a half ounce of meth daily from Fitch for about four months.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Arizona courier with 10 pounds of methamphetamine sentencedRead the Press Release
BILLINGS – An Arizona woman who admitted driving 10 pounds of methamphetamine to Billings to make money was sentenced on January 25 to five years in prison and five years of supervised release, said U.S. Attorney Kurt Alme on Monday.
Leticia Aguirre Tyrrell, 36, of Tucson, had pleaded guilty earlier to possession with intent to distribute methamphetamine.
U.S. District Judge Susan Watters presided at sentencing.
During a drug trafficking investigation, task force agents worked with a confidential informant who arranged for a meth shipment to be delivered in Billings. On June 23, 2018, investigators learned that the courier’s name was “Leti” and that she had arrived at a Billings hotel. Agents arrested her and identified her as Leticia Aguirre Tyrrell.
Agents seized Tyrrell’s Ford Fusion and got a warrant to search the vehicle. Investigators found 10 pounds of meth in one large package in the rear passenger seating area of the vehicle. Ten pounds of meth is the equivalent of about 36,240 individual doses.
In an interview later, Tyrrell said she had made the trip to earn some money and was to be paid $5,000 for driving to Billings. The vehicle had been rented. Tyrrell obtained a box of what she believed to be meth from an unknown male in Phoenix before departing for Montana.
Assistant U.S. Attorney Tom Godfrey prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Missoula man sentenced to prison in meth caseRead the Press Release
MISSOULA—Missoula resident William Perry Hobbs, who admitted distributing methamphetamine to support a heroin addiction, was sentenced to four years in federal prison and five years of supervised released today, U.S. Attorney Kurt G. Alme said.
Hobbs, 38, pleaded guilty earlier to possession with intent to distribute meth.
Chief U.S. District Judge Dana L. Christensen presided at sentencing.
During an investigation, an undercover law enforcement officer bought meth from Hobbs three times, from March to May. The quantity of meth totaled more than 50 grams of actual meth. Fifty grams is the equivalent of 400 individual doses. In addition, evidence showed that an informant sometimes sold drugs with Hobbs. Hobbs also admitted he was a meth distributor in the Missoula area and distributed to support his heroin addiction.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Missoula High Intensity Drug Trafficking Area Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned this week before U.S. Magistrate judges and indictments handed down by the Grand Jury were unsealed. Indictments are merely accusations and defendants are presumed innocent until proven guilty:
Appearing on Dec. 18 before U.S. Magistrate Judge John T. Johnston in Great Falls and pleading not guilty was:
WILLARD WILSON WHITE III, 43, on charges of wire fraud; theft from an Indian tribal organization; and income tax evasion. If convicted of the most serious crime, White faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the Fort Peck Tribes’ Department of Law and Justice and U.S. Department of Interior’s Office of Inspector General. Pacer case reference. 18-97.
Appearing on Dec. 20 before U.S. Magistrate Judge John T. Johnston in Great Falls and pleading not guilty was:
KARINA VICTORIA RUIZ-ROSALES, 24, of Los Angeles, Calif., on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Ruiz-Rosales faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Russell Country Drug Task Force. Pacer case reference. 16-36.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Former Custer County High School athletic trainer charged with coercionRead the Press Release
BILLINGS—An indictment filed today in U.S. District Court charges former Custer County High School athletic trainer James “Doc” Jensen, of Miles City, with coercion and enticement of minors to engage in sexual activity, U.S. Attorney Kurt G. Alme announced.
If convicted of the crime, Jensen, 78, faces a maximum 15 years in prison, a $250,000 fine and three years of supervised release.
The indictment is merely an accusation. Jensen remains innocent until proven guilty.
The indictment charges that beginning in 1995 and continuing until about 1999 in Miles City, Jensen used means of interstate commerce, including the Internet, to entice and coerce an individual who he believed was a minor to engage in sexual activity.
Chief U.S. District Judge Dana L. Christensen is assigned to the case.
Assistant U.S. Attorneys Zeno Baucus and Bryan Dake are prosecuting the case, which is being investigated by the FBI and Montana Department of Justice’s Division of Criminal Investigation.
XXX
Billings man sentenced for firearms violationsRead the Press Release
MISSOULA—Billings resident Joseph Wayne Waters was sentenced on Thursday to four years in federal prison and three years of supervised release for his conviction of illegally possessing firearms, U.S. Attorney Kurt Alme said.
Waters, 39, pleaded guilty in September to being a prohibited person in possession of firearms.
Chief U.S. District Judge Dana L. Christensen presided at sentencing.
Waters was charged after an incident on Jan. 20, 2018 in Bozeman in which Waters fired a shot at a truck, hitting it in the tailgate, during a pursuit. Waters and two others were driving in Bozeman when the driver of Waters’ vehicle saw her ex-husband and began following his vehicle at a fairly high rate of speed. Waters called the ex-husband during the pursuit and law enforcement officers obtained phone records that reflected those calls. Eventually, Waters fired a shot at the truck.
When the chase ended, the driver consented to a search of her vehicle and officers seized three firearms from Waters’ backpack. The firearms included a .32 caliber revolver, a 9mm pistol and a .40 caliber pistol.
Waters, having been convicted of a felony aggravated assault in 1997 in Montana, was prohibited from possessing firearms.
Assistant U.S. Attorney Timothy Racicot prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bozeman Police Department and the Missoula Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Busby Man Sentenced to Life in Murder of WomanRead the Press Release
BILLINGS – A Busby man convicted of first degree murder in the 2016 death of a woman, who was beaten, strangled, lit on fire and left to die in a field, was sentenced to life in prison today in federal court, while two co-defendants also received prison terms for their roles in the crime, U.S. Attorney Kurt G. Alme said.
Dimarzio Swade Sanchez, 21, was sentenced to mandatory life in prison, five years of supervised release and ordered to pay $14,276.72 restitution. A jury convicted Dimarzio Sanchez on Dec. 4, 2017 of first degree murder/aiding and abetting murder.
Angelica Jo Whiteman, 26, of Lame Deer, was sentenced to 40 years in prison, five years of supervised release and ordered to pay $14,276.72 restitution. Whiteman pleaded guilty in August 2017 to aiding and abetting first degree murder.
Frank James Sanchez, 21, of Lame Deer, was sentenced to nine in prison, three years of supervised release and ordered to pay $14,276.72 restitution. Frank Sanchez pleaded guilty in March 2017 to accessory after the fact and to misprision of a felony.
U.S. District Judge Susan P. Watters presided at the sentencing hearings.
Dimarzio Sanchez, his brother, Frank Sanchez, and Whiteman were charged in the death of the victim, who died on June 28, 2016 in a Utah hospital where she was flown for treatment after being attacked on April 17, 2016.
“This was an extraordinarily heinous crime. Our condolences go out to the victim’s family, friends and the entire community,” said U.S. Attorney Alme. “The Department of Justice is committed to fighting and reducing the significant levels of violence against women in Indian Country. Today’s sentences reflect the seriousness of the crime and will protect the community from future harm by these individuals.”
“I would like to thank Deputy Criminal Chief Lori Suek, former Assistant U.S. Attorney John Sullivan, the FBI and Bureau of Indian Affairs agents, the victim specialists and other staff of the FBI, BIA and U.S. Attorney’s Office for their hard work on this case,” Alme said.
During the four-day jury trial of Dimarzio Sanchez, the government presented evidence that Dimarzio Sanchez, the two co-defendants and others picked up the victim at the Kirby Saloon on the Northern Cheyenne Indian Reservation on April 17, 2016 and offered to give her a ride to her Crow Agency home. The defendants and victim had not met until that night.
The group stopped at a residence, where one of the individuals remained while the rest of the group headed toward Crow Agency. Along the way, a fight erupted between Whiteman and the victim. Dimarzio Sanchez, the driver, drove to Castle Rock Road, a dirt road off of Highway 212 on the Crow Indian Reservation, and parked.
The entire group initially got out and the assault on the victim continued. At one point, Dimarzio Sanchez showed Whiteman how to strangle the victim using a bandana, and Whiteman strangled her.
Frank Sanchez retrieved a gas can from the trunk of the car. Dimarzio Sanchez poured gasoline onto the victim and set her on fire. Dimarzio Sanchez and the rest of the group left the area. The victim remained in the field for about 14 hours until a motorist found her and called for help, prompting the start of the investigation. The victim ultimately was flown to a Salt Lake City hospital where she died.
Frank Sanchez was present and witnessed the assault but failed to notify authorities. He lied to law enforcement about his knowledge of the crime when he was first interviewed by denying he was present and giving investigators a false alibi. When re-interviewed almost two weeks later, Frank Sanchez provided a truthful account. In addition, Frank Sanchez failed to turn over to law enforcement the victim’s jeans, which Dimarzio Sanchez had given to him and another person.
Deputy Criminal Chief Lori Suek and former Assistant U.S. Attorney John Sullivan prosecuted the case, which was investigated by the FBI and Bureau of Indian Affairs.
XXX
Pryor man sentenced in assault, strangulationRead the Press Release
BILLINGS—Pryor resident Gary Duke Carlson was sentenced on Wednesday to 46 months in federal prison and three years of supervised release for assaulting and strangling a woman, U.S. Attorney Kurt G. Alme said.
Carlson, 28, pleaded guilty earlier to assault by strangulation and to assault resulting in substantial bodily injury,
U.S. District Judge Susan P. Watters presided at the hearings.
In May 2017 in Pryor, on the Crow Indian Reservation, Carlson made accusations about the victim, became physically abusive and began to strangle her. In June 2017, Carlson again made accusations and head-butted the victim. He also hit her in the face with his hands, injuring her face. In an interview with Bureau of Indian Affairs agents, Carlson denied hitting the victim but said he pushed her and that she fell into a dresser or a door.
Assistant U.S. Attorney Thomas Godfrey prosecuted the case, which was investigated by the FBI.
XXX
Illinois woman sentenced in pain pill conspiracyRead the Press Release
MISSOULA—An Illinois woman who posed as a caregiver and tried to pass fake prescriptions for pain pills in Missoula as part of a conspiracy was sentenced to federal prison on Wednesday, U.S. Attorney Kurt G. Alme said.
The defendant, Shannon Melissa Gross, 42, of Lombard, Il, was sentenced to one year and one day in prison and five years of supervised release. Gross pleaded guilty earlier to conspiracy to possess with intent to distribute Oxycodone.
U.S. District Judge Donald W. Molloy presided.
Missoula Police Department officers arrested Gross in January 2017 while she tried to pass a fraudulent prescription for Oxycodone at a local pharmacy. Gross had successfully filled one prescription for 180 30 mg Oxycodone pills and had tried to fill two other similar prescriptions that same day.
Each prescription was purported to be written by a Dr. Nick Chen, from the Seattle Intergrative (sic) Cancer Center located in Tukwila, Wash. This same doctor and practice has been used in other fraudulent prescriptions passed elsewhere in Montana.
When interviewed by law enforcement officers, Gross said an unknown man approached her in a casino in western Washington and asked if she’d like to make some money. Gross agreed and the man drove her to the rental car center at SeaTac Airport, where a woman was waiting with a rented vehicle. The woman, later identified as codefendant, Meisean Teurn, drove Gross to Missoula.
In Missoula, Teurn provided Gross with the fraudulent prescriptions, medical scrubs, insurance information for the patients whose names were on the fake prescriptions and instructions for how to pretend to be a caregiver filling the prescriptions. Gross followed the instructions and got arrested.
Teurn, 27, of Tukwila, Wash., was sentenced in September to one year and one day in federal prison and three years of supervised release for conviction of conspiracy to possess with intent to distribute Oxycodone.
Assistant U.S. Attorney Thomas Bartleson prosecuted the case, which was investigated by the Drug Enforcement Administration and the Missoula Police Department.
XXX
Bozeman man sentenced in meth caseRead the Press Release
BILLINGS—A Bozeman man accused of trafficking methamphetamine he brought from Denver to Montana was sentenced on Wednesday to three years in federal prison and five years of supervised release, U.S. Attorney Kurt G. Alme said.
Michael Arnold Delack, 49, pleaded guilty earlier to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided at sentencing.
During an investigation in 2017 and early 2018, law enforcement made controlled meth buys from Delack using confidential informants and undercover agents. In August 2017, law enforcement learned that Delack was returning from Denver and was suspected of bringing meth. Investigators asked the Montana Highway Patrol to stop Delack’s vehicle. MHP stopped Delack in Big Horn County, where Delack told agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives that he had about six ounces of meth inside a duffel bag in the vehicle.
In January 2018, a GPS monitoring device was placed on Delack’s vehicle, as authorized by a search warrant. The tracker indicated Delack was traveling out of state on Jan. 28 and traveling back to Montana the next day. On Jan. 30, MHP stopped Delack’s vehicle east of Columbus and searched the vehicle. Hidden in the engine compartment was a round metal tin containing 112.3 grams of meth. Delack admitted to traveling to Denver and buying four ounces of meth for $2,000. Four ounces of meth is the equivalent of about 896 individual doses.
Assistant U.S. Attorney Thomas Godfrey prosecuted the case, which was investigated by the ATF.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Former Miles City postmaster sentenced in meth conspiracyRead the Press Release
BILLINGS—Stephen Michael Miller, the former postmaster of the U.S. Postal Service Office in Miles City, was sentenced to five years of probation and fined $2,500 today in federal court for his role in a conspiracy to distribute methamphetamine that came through the mail, U.S. Attorney Kurt G. Alme said.
Miller, 59, pleaded guilty earlier to conspiracy to possess with intent to distribute meth.
U.S. District Judge Susan P. Watters presided at sentencing.
An investigation found that between 2013 and August 2015 there was a conspiracy to send meth through the mail for distribution in the Miles City area. Several other defendants have been convicted and sentenced in the case. One of the co-conspirators, James Toms, who received his meth through the post office, was sentenced in April 2018 to 96 months in prison and five years of supervised release for conviction on possession with intent to distribute meth.
Miller, who was the postmaster in Miles City, used his position to warn Toms that the police had been monitoring mail sent to his residence. On one occasion, Miller intercepted for Toms a package that contained about four ounces of meth. Miller delivered the package to Toms in exchange for one ounce of the meth. Four ounces of meth is the equivalent of about 904 individual doses.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Drug Enforcement Administration, FBI, Eastern Montana High Intensity Drug Trafficking Area Task Force and Miles City Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Billings coal mining official admits to wire fraud, money laundering, false statement chargesRead the Press Release
BILLINGS – A Billings man who worked for Signal Peak Energy, a Montana coal mining company, admitted in federal court today to an embezzlement scheme that defrauded companies of more than $20 million and to lying to investigators about a false abduction, U.S. Attorney Kurt G. Alme said.
Larry Wayne Price, Jr., 38, pleaded guilty to three counts of wire fraud, conspiracy to commit money laundering and false official statement.
U.S. Magistrate Judge Timothy J. Cavan presided at the hearing and recommended Price’s pleas be accepted by U.S. District Judge Dana L. Christensen, who is assigned to the case. A sentencing date will be set. Price was released pending sentencing.
Price faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the wire fraud and conspiracy counts. He faces a maximum five years in prison, a $250,000 fine and three years of supervised release on the official false statement count.
Price also faces the forfeiture of real and personal property derived from the crimes, including a $20,321,134 monetary judgment, two Billings residences located at 5650 Canyonwoods Drive and at 5875 Whispering Woods Drive, three properties in Virginia, a motorhome, boat trailers, watercrafts and jewelry.
The government agrees that forfeited property will be used for restitution for victims until all eligible victims have been made whole. Remaining property will be forfeited under the normal forfeiture procedures and will not exceed the money judgment of $20,321,134.
If the case had proceeded to trial, the government would have provided the following information as evidence:
From about October 2016 until April 2018, Price embezzled about $20,321,134 from three coal-related companies. During that time, Price was vice president of surface activities at Signal Peak Energy and also operated a private business called 3 Solutions, LLC, which was involved in coal mining but its primary purpose was to supply chemicals to Signal Peak Energy.
The three companies Price defrauded were Ninety M, LLC, a Wyoming company of investors looking to invest large sums in coal mining projects; Three Blind Mice, LLC, another Wyoming company with investors seeking to invest in mining; and Signal Peak Energy.
Price had developed a reputation in Billings and elsewhere as a coal mining expert. Based on his reputation, he convinced Three Blind Mice to lend him $7.5 million, which he stole. Price maintained that 3 Solutions had secured a contract with a Pennsylvania coal company to install coal mining equipment. To complete the project, Price claimed he needed $7.5 million for expenses.
Price proposed that Three Blind Mice lend him the $7.5 million, and he would repay it $11 million on Jan. 31, 2018. Three Blind Mice agreed, signed an unsecured promissory note and wired 3 Solutions the funds. Price defaulted on the loan on Jan. 31, 2018.
An investigation found there was no contract between 3 Solutions and a Pennsylvania coal mine. Instead, Price spent the $7.5 million on unrelated expenses.
In another scheme, Price convinced Ninety M’s investors to appoint him as a representative of the company to help it buy and develop a coal mining property in Tazewell, VA, and to help develop other coal-related ventures. Price engaged in a series of five business deals with other companies on behalf of Ninety M in which he solicited about $13.5 million from the firm, of which $10,475,000 was fraudulently obtained.
Meanwhile, Price, while still employed by Signal Peak Energy, fraudulently induced Signal Peak Energy to buy coal-related equipment from a firm knowing that the firm would not actually provide the equipment. The firm funneled the money to Price through a bank account registered to 3 Solutions. The scheme defrauded Signal Peak Energy of about $2,396,134.
In April 2018, the Ninety M investors began to question some of the transactions involving Price and had confronted him on the phone. By April, Price was living in Virginia, where he was originally from.
On April 18, 2018, Price learned Ninety M was sending representatives to confront him about the fraudulent transactions and he decided to hide. Price contacted a woman he knew and agreed to hide at a house the woman had rented.
The same day, Price’s wife reported him missing to Virginia authorities and local law enforcement responded. Late that night, a driver spotted Price standing on the side of the road in Gratton, Va. Price was taken to a hospital for treatment and released.
Price was subsequently questioned by several law enforcement agencies. In those statements, Price falsely claimed he had been kidnapped by men who may have been associated with an outlaw motorcycle gang.
In statements to the FBI and IRS on April 20, 2018, Price said he had been approached by an unknown man who discussed possibly selling a motorcycle to Price. Price agreed to meet this man at a park and ride. When Price went to the meeting location, the unknown man arrived with a windowless van and was accompanied by another unknown man who pointed a gun at him. Price claimed the second man applied a rag with chemical on it to his face and that made him disoriented. Price said the men took him to an unknown location where he sat in a dark room on the floor for a period of time. The men applied the chemical rag to his face again. He then remembered the men threatening him and throwing him out of the moving van onto the side of the road.
Price knew that none of these statements to the FBI and IRS or to other law enforcement about his supposed abduction was true. Price was not kidnapped by anyone. The false statements cost the government significant investigative resources and hampered the investigation into Price’s own wrongdoing.
Assistant U.S. Attorneys Colin Rubich and Zeno Baucus are prosecuting the case, along with Assistant U.S. Attorney Randy Ramseyer, of the Western District of Virginia. The case was investigated by the FBI, IRS and the Montana State Auditor.
XXX
Washington man sentenced for meth distributionRead the Press Release
GREAT FALLS – A Washington man who admitted distributing pound quantities of methamphetamine primarily in the Great Falls area was sentenced on Dec. 12 to 90 months in federal prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Cody David Paine, 35, of Kettle Falls, Wash., pleaded guilty previously to possession with intent to distribute meth.
U.S. District Judge Brian M. Morris presided.
An FBI investigation that began in February 2017 identified Paine as dealing large quantities of meth in Great Falls. Paine would travel with others in 2016 to Washington to pick up pounds of meth for distribution in various locations in Montana, including Missoula and Great Falls.
In May 2018, agents arrested an individual on a warrant in Missoula and learned that the individual had obtained about seven pounds of meth and a pound of heroin over three months in 2018 from Paine. Also in May, FBI agents arrested Paine in Missoula. Paine told agents that he had a large customer base for meth in Montana and that he had distributed multiple pounds of meth. One pound of meth is the equivalent of about 3,624 individual doses.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the FBI.
The case is part of Project Safe Neighborhoods, which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Mexico citizen admits illegal reentry after being found by Glacier National Park rangersRead the Press Release
GREAT FALLS – A citizen of Mexico admitted on Dec. 11 in federal court to being in the United States illegally after Glacier National Park personnel found him walking while on patrol, U.S. Attorney Kurt G. Alme said.
Luis Alejandro Lopez-Solis, 36, of Mexico, pleaded guilty to illegal reentry.
U.S. District Judge Brian M. Morris presided at the hearing. Sentencing is set for Feb. 21, 2019. Lopez-Solis is detained.
Lopez-Solis faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
If the case had gone to trial, the government would have presented the following information as evidence:
On Sept. 24 while on routine patrol of the Goat Haunt area of Glacier National Park, park personnel told St. Mary Border Patrol agents of a suspicious person walking south from the Goat Haunt Ranger Station area. Border Patrol agents searched for the person and later identified Lopez-Solis. Agents found him talking to a park law enforcement ranger on a trail south of the ranger station. Lopez-Solis was taken to the ranger station for an interview. Lopez-Solis, who was in wet clothing and shivering, said he had fallen into a nearby creek while trying to cross it.
Agents arrested Lopez-Solis and flew him by helicopter from the ranger station to the St. Mary Border Patrol Station for further investigation. He confirmed he was a citizen of Mexico.
Lopez-Solis told agents he left Mexico on Sept. 21, 2018 and had arrived the same day in Canada. There, he rented a car and traveled to Waterton, Alberta, where on Sept. 24 he started walking south, crossing into the United States, until he got found by the National Park Service rangers. He said his plan was to follow the NPS trail system to Chief Mountain where his girlfriend was going to pick him up.
Lopez-Solis was deported in May 2017 after conviction on passport fraud. He did not have permission to reenter the United States.
Assistant U.S. Attorney Paulette Stewart is prosecuting the case, which was investigated by U.S. Border Patrol and Glacier National Park Law Enforcement.
XXX
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned this week before U.S. Magistrate judges and indictments handed down by the Grand Jury were unsealed. Indictments are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan on Dec. 10 and pleading not guilty were:
Danika Nurea Sanchez, 20, of Lame Deer, on charges of conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute meth. If convicted of the most serious crime, Sanchez faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 18-143.
Romer Jesse Jaure, 27, of Busby, on charges of sexual abuse of a minor and abusive sexual contact. If convicted of the most serious crime, Jaure faces a maximum 15 years in prison, a $250,000 fine and five years of supervised release. The case was investigated by the FBI. Pacer case reference. 18-148.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston on Dec. 11 and pleading not guilty were:
Holden Stillsmoking, 26, of Browning, on charges of strangulation and assault resulting in serious bodily injury. If convicted of the most serious crime, Stillsmoking faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the FBI. Pacer case reference. 18-102.
Martin St. Goddard, 32, of Browning, on charges of assault with a deadly weapon and assault resulting in serious bodily injury. If convicted of the most serious crime, Goddard faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the FBI. Pacer case reference. 18-100.
Rand Michael Emineth, 26, of Great Falls, on charges of conspiracy to distribute explosives without a license, possession of stolen explosives and felon in possession of a firearm. If convicted of the most serious crime, Emineth faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department. Pacer case reference. 18-90.
Mahliani Kataya Red Eagle, 20, of the Fort Peck Reservation, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime Red Eagle faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. The case was investigated by the FBI and Fort Peck Criminal Investigation. Pacer case reference. 18-98.
Justin Leonard Sheehan, 43, of Great Falls, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious drug crime, Sheehan faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. He also faces a minimum mandatory five years to life in prison consecutive to any other sentence on the firearms count. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 18-101.
Gary Girard Sheehan, 67, of Great Falls, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious drug crime, Sheehan faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. He also faces a minimum mandatory five years to life consecutive to any other sentence on the firearms count. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 18-101.
Lothar Konrad Krauth, 80, Great Falls, on charges of receipt of child pornography. If convicted of the most serious crime, Krauth faces a minimum mandatory five years to 20 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by Homeland Security Investigations. Pacer case reference. 18-99.
Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch on Dec. 12 and pleading not guilty was:
Candace Hessel Cummings, 65, of Libby, on charges of tax evasion. If convicted of the most serious crime, Cummings faces a maximum five years in prison, a $100,000 fine and three years of supervised release. The case was investigated by the IRS. Pacer case reference. 18-56.
Appearing on Dec. 13 and pleading not guilty was:
Tina Marie Johnstone, 53, of Helena, on charges of theft of public money and concealment of facts impacting Supplemental Security Income. If convicted of the most serious crime, Johnstone faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the Social Security Administration. Pacer case reference. 18-19.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Great Falls man sentenced for counterfeiting moneyRead the Press Release
GREAT FALLS—Great Falls resident Derek Mathew Ferdinand, 32, was sentenced to nine months in prison, two years of supervised release and ordered to pay $1,485 restitution in federal court on Dec. 11 for conviction for making fake money, U.S. Attorney Kurt G. Alme said.
U.S. District Judge Brian M. Morris presided.
Ferdinand pleaded guilty earlier to counterfeiting obligations or securities of the United States.
In May 2017, the Great Falls Police Department and Cascade County Sheriff’s Office received reports of counterfeit money circulating through local businesses. Numerous business owners in Belt reported receiving the fake bills and identified Ferdinand as having been present while another person passed the bills. A surveillance video from one business showed Ferdinand passing a counterfeit bill to a bartender.
A witness told investigators that Ferdinand had explained to the person how he made counterfeit money and was “getting the bills perfect.” Law enforcement also spoke to another witness who had pictures of Ferdinand making money and reviewed the photographs. Agents determined that Ferdinand was responsible for making about $2,000 of the counterfeit money that individuals passed in the community.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the U.S. Secret Service and the Great Falls Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.
XXX
Columbia Falls man admits government benefits fraudRead the Press Release
MISSOULA—A Columbia Falls man accused of stealing government benefits by overstating his disabilities admitted fraud and theft charges in federal court on Dec. 12, U.S. Attorney Kurt G. Alme said.
John Cicero Hughes, 46, pleaded guilty to theft of government money and Social Security disability insurance fraud.
U.S. Magistrate Judge Jeremiah C. Lynch presided and will recommend that Hughes’ plea be accepted by U.S. District Judge Dana Christensen, who is assigned to case.
Hughes faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Sentencing is set for April 12, 2019. Hughes is released.
The government intends to seek restitution for the Veterans Administration and the Social Security Administration for an estimated loss totaling $830,061, with the understanding that Hughes will dispute that figure and that a judge ultimately will determine loss and restitution before imposing sentence.
If the case had proceeded to trial, the government would have presented the following information as evidence:
Hughes, a Navy veteran, was determined in 2009 to be 100 percent disabled by the VA based on confirmation of a prior diagnosis that he suffered from multiple sclerosis. Hughes represented he had total loss of both hands and feet in addition to other maladies. From 2009 through July 2018, Hughes received more than $7,000 a month from the VA.
In addition, because the VA had rated Hughes 100 percent disabled, he qualified for SS disability insurance benefits. The Social Security Administration paid Hughes and some of his family members about $1,400 a month from 2009 until the present.
During the nine-year period, Hughes misrepresented the nature and extent of his disabilities to VA doctors and other health professionals by claiming he could not drive or walk more than a few steps, had double vision, had little to no feeling in his left arm and leg, could not shop for himself or prepare his own meals and was essentially bound to either his bed or a motorized wheelchair.
An investigation found that Hughes drastically overstated his symptoms and limitations. In June 2017, the VA and SSA began an investigation into the extent of Hughes’ disability, which culminated in a Compensation and Pension Examination on Jan. 23, 2018 in Helena.
During the examination, Hughes claimed he had not driven since 2008 without adaptive equipment and did not drive to Helena for the appointment. He said he could not walk more than a few steps and chose to remain in a wheelchair during the entire exam. He also said he could not shop for himself, was essentially house-bound, had almost no feeling in his left arm and leg and could not open his left hand because of spasticity caused by MS.
Unbeknownst to Hughes, law enforcement officers surveilled Hughes when he arrived for the appointment, recorded and monitored the entire exam and surveilled him when he left the VA. Officers saw Hughes drive himself to the appointment in a truck with no adaptive equipment and walk into and out of the VA. Hughes then drove himself around Helena, running errands, including walking with a cane around a grocery store and using both hands to play machines at a local casino.
Agents also surveilled Hughes’ activities in the Flathead Valley in 2017. Agents saw Hughes drive a car and a Harley Davidson motorcycle several times, walk distances he had claimed for years he could not cover and do chores, including climbing a ladder during a snowstorm to brush snow off the roof of a recreational vehicle.
On Aug. 1, 2017, Hughes received a direct deposit of $7,056 from the VA into his bank account. The same day, agents observed Hughes drive his motorcycle to and from a car wash and walk about 50 feet without a cane.
When agents interviewed Hughes at his residence in February 2018, he stuck to his story about the extent of his disabilities but admitted to driving a motorcycle in the summer of 2017 and to driving to the VA exam in January. He eventually admitted to making some misrepresentations to the examiner at the VA and told the agents, “If it was wrong, it was wrong.”
Assistant U.S. Attorney Timothy Racicot is prosecuting the case, which was investigated by VA’s and SSA’s Offices of Inspector General.
XXX
Browning woman admits embezzlement of Blackfeet Tribe’s Head Start programRead the Press Release
GREAT FALLS—Browning resident Denise L. Sharp, 60, who worked for the Blackfeet Tribe’s Head Start Program, admitted in federal court on Tuesday to stealing money through an overall scheme involving others in which an estimated $232,000 was fraudulently claimed as overtime pay, U.S. Attorney Kurt G. Alme said.
U.S. Magistrate Judge John T. Johnston presided at the hearing and will recommend Sharp’s plea be accepted by U.S. District Judge Brian M. Morris, who is assigned to the case. Sentencing is set for March 20, 2019. Sharp is released.
Sharp faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. She also faces restitution and an additional monetary judgment of $38,711 as the amount she claimed in overtime pay.
If the case had gone to trial, the government would have presented the following information as evidence:
The Blackfeet Tribe operates the Head Start Program with funding from the U.S. Department of Health and Human Services. Head Start provides early childhood education and other services for low-income children and their families.
During a 15-month period, starting in April 2013, Sharp and others falsely claimed 7,800 hours of overtime and received more than $232,000 in overtime pay from the Head Start program. When the fraud was uncovered, two different firms audited the Blackfeet Head Start program. Both audits questioned the overtime claims, identifying them as “beyond necessary and reasonable” and lacking any supporting documentation.
The Blackfeet Tribe did its own internal review, agreed it could not justify the overtime claims and repaid HHS $250,620.29 for disallowed costs and other expenses.
After an on-site review of the program by government authorities from Washington, D.C., Sharp along with co-defendants and others met in a conference room. Despite not actually working the hours, everyone present in the room agreed to continue claiming overtime.
Other Head Start workers told investigators they never saw Blackfeet Head Start personnel working late nights or on weekends. The program’s board chairman was unaware of the overtime claims, identified budget cuts that were necessary during the time period of the fraud and was unaware of any needs that would have justified the overtime claims by the defendants.
Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the FBI and HHS.
XXX
Box Elder man admits domestic abuseRead the Press Release
GREAT FALLS – A Box Elder resident admitted in federal court on Dec. 10 to domestic abuse charges for repeatedly assaulting the victim, U.S. Attorney Kurt G. Alme said.
Cole Young Bad Hawk, 24, pleaded guilty to domestic abuse by an habitual offender.
U.S. District Judge Brian M. Morris presided at the hearing. Judge Morris set sentencing for March 21, 2019. Bad Hawk is detained.
Bad Hawk faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
If the case had gone to trial, the government would have provided the following information as evidence:
On March 23, 2016 in Box Elder, on the Rocky Boy’s Indian Reservation, Bad Hawk assaulted the victim after becoming angry when he saw her messaging other people on her phone and thought she may be cheating on him. Bad Hawk called the victim names and punched her in the face with his fist, knocking her down. While the victim was down, Bad Hawk picked her up with one hand holding her hair and his other hand holding one leg and repeatedly body slammed her onto the floor.
Bad Hawk then dragged the victim into a bedroom where he continued calling her names. The victim ran into the bathroom and locked the door, but Bad Hawk kicked the door open and assaulted the victim while she was on the floor. From the bathroom, Bad Hawk took the victim back to the bedroom and squeezed her by neck with his hand, impeding her ability to breathe.
Bad Hawk has two prior domestic assault convictions involving the same victim in Chippewa Cree Tribal Court.
Assistant U.S. Attorney Jared Cobell is prosecuting the case, which was investigated by the FBI.
XXX