District of Montana

GREAT FALLS - The United States Attorney’s Office announced that Kevin David McGovern was sentenced to 24 months of imprisonment, $880,000 in restitution (joint and several with his companies), $800,000 in fines, $500 in special assessments, and 2,000 hours of community service.  CMG Construction, Inc., was ordered to pay $1.0 million in restitution, $1.6 million in fines, and $1,600 in special assessments.  And MC Equipment Holdings, LLC, was sentenced to $380,000 in restitution, $800,000 in fines, and $800 in special assessments.  All total, McGovern and his companies were required to pay $4.58 million in restitution and fines.  The sentencing occurred on June 8, 2017, before U.S. District Judge Brian Morris, in Great Falls, Montana.  

    

In November 2016, a federal trial jury convicted Kevin McGovern and CMG Construction, Inc., of conspiracy, wire fraud, and bribery, all of which was associated with a pay-to-play scheme on the Rocky Boy’s Indian Reservation. 

 

Tony James Belcourt was in care, custody, and control of over $85 million of federal and tribal funds for the construction of a rural water project and several disaster relief projects on the reservation.  Of that amount, $52 million was associated with the Rocky Boy/North Central Montana Rural Water System, $11 million was provided by FEMA for the flash floods that occurred in June 2010, and $25 million was provided by the Tribe’s insurance carrier.

 

Between January 2010 and March 2013, Belcourt’s job duties included serving as a representative in the House of Representatives for the State of Montana, the CEO for the Chippewa Cree Construction Corporation, a member of the Tribe’s Insurance Recovery Team, and the Incident Commander for FEMA.  Belcourt and other tribal officials required contractors to pay kickbacks and bribes in order to receive contracts and contract payments.  Belcourt was previously convicted for accepting bribes and is currently serving a 90-month sentence in federal prison.   

 

In June 2011, Kevin McGovern and his company, CMG Construction, Inc., received three unadvertised, sole-sourced contracts valued at $2.5 million without being required to submit bids to the Chippewa Cree Construction Corporation.  In return, Belcourt received $324,333 through a company called MT Waterworks, LLC.  Belcourt never provided any services to MT Waterworks, LLC, which was started with $100,000 of embezzled federal funds from the rural water system.  MT Waterworks, LLC, was owned by Belcourt, McGovern, and a third businessman from Billings.    

   

In July 2011, Belcourt drove from his home in Box Elder, Montana, to Billings, Montana, and gave Kevin McGovern a $200,000 progress payment of federal funds for work performed on FEMA-related disaster projects.  The following day, McGovern gave a personal loan to Tony Belcourt in the amount of $50,000.  Then, at Belcourt’s direction, McGovern sent $25,000 as a donation to the Chippewa Cree Events Committee, which was a known slush fund for a tribal councilman who was previously convicted for accepting bribes. 

 

The jury convicted McGovern and CMG Construction, Inc., of conspiracy, wire fraud, and bribery of Tony Belcourt.  The jury acquitted McGovern and CMG Construction, Inc., of one count that involved bribery of another tribal official. 

 

In addition to bribing Belcourt for contracts, McGovern and MC Equipment Holdings, LLC, also pleaded guilty to wire fraud and theft in connection with the February 2012 sale of a “hot plant” to the Chippewa Cree Tribe.  A “hot plant” is a portable industrial paving machine that consists of several interlocking components, including an asphalt tank and silo, drum mixer, conveyor system, and control house that, when properly assembled, produced hot asphalt that can be used on paving projects, such as roads and parking lots.  McGovern inflated the purchase price of the hot plant by $380,000, of which $229,000 he paid to Belcourt.  The “hot plant” was never assembled or used by the Tribe.  It was subsequently sold at a loss by the Chippewa Cree Construction Corporation in June 2015.   

 

CMG Construction, Inc., also pleaded guilty to a false claims act conspiracy in connection with a March 2013 claim in the amount of $3.8 million submitted by the Chippewa Cree Tribe to FEMA.  This claim contained inflated invoices from CMG Construction, Inc., relating to the demolition of the health clinic.

 

In a sentencing memo filed in federal court, Ryan G. Weldon and Bryan T. Dake stated, “This case is purely about greed.  McGovern had a multi-million dollar business in Billings, Montana.  His personal bank account had almost $1,000,000.  He had everything.  CMG Construction, Inc., did not have to bribe to obtain business.  It was a thriving and legitimate venture that employed hundreds of people.  McGovern, though his companies, chose to engage in the corrupt practices at the Rocky Boy’s Indian Reservation.” 

 

Acting United States Attorney Leif Johnson said the conviction and sentence reaffirms the line that exists between corrupt business and those that are merely aggressive:  “Too often, in pursuit of a profit, a businessman seeks an advantage that is one step too far and begins a relationship involving taxpayer monies that seems too good to be true.  It starts with great promise and ends with the loss of everything—reputation, fortune, and freedom.”

 

The Department of Interior, Office of Inspector General, Western Region, Special Agent In Charge David A. House stated, “This latest corruption conviction involving the Rocky Boy/North Central Montana Rural Water System, a water project designed to deliver safe drinking water to the Chippewa Cree Tribe and several rural Montana communities.  This is another successful effort by the Montana Guardians Project wherein corruption was identified and vigorously prosecuted in an effort to stop unjust personal enrichment.  Prosecutions such as these allow federal agencies, and tribal organizations, to rebuild from criminal impact.  It also demonstrates our commitment to protecting taxpayer funds and our trust responsibilities to Tribes.”  

 

“IRS Criminal Investigation provides financial investigative expertise while working with our law enforcement partners,” said Steven Osborne, Special Agent In Charge, IRS-Criminal Investigation for Montana.  “Pooling skills of each agency makes a formidable team as we investigate allegations of wrong-doing.  Today’s sentencing demonstrates our collective efforts to enforce the law and ensure public trust.”

 

The convictions and sentencing of McGovern, CMG Construction, Inc., and MC Equipment Holdings, LLC, are the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts, and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011.  The McGovern, CMG Construction, Inc., and MC Equipment Holdings, LLC, cases were investigated by the Department of Interior, Office of Inspector General, Health and Human Services, Office of Inspector General, and the Internal Revenue Service, Criminal Division.

MISSOULA – George Leslie Manlove, 59, of Eagle, Idaho, was convicted of 170 counts of wire fraud, money-laundering, bank fraud, false statements, bankruptcy fraud and conspiracy following a three-week jury trial. U.S. District Court Judge Dana L. Christensen presided. Sentencing occurred on May 19, 2017.

Manlove, the former CEO of Vann’s, Inc., an electronics and appliance retailer, was initially indicted in December of 2015 on 221 counts of fraud. A second superseding indictment was returned by a grand jury in March, 2016. Manlove’s fraudulent activity occurred between 2006 and 2013. Vann’s declared bankruptcy on August 5, 2012.

At trial, the government introduced evidence that Manlove, aided and abetted by co-conspirator, former CFO Paul Lyn Nisbet, established two shell-companies, JPEG and Painted Sky, LLC (Nisbet pled guilty to one count of conspiracy on Oct. 27, 2016). These shell-companies were established as part of a real-estate leaseback scheme. The defendants, with less than a $500 initial investment to create the LLC’s, obtained loans to purchase commercial property, and then leased that retail space back to Vann’s. The defendants obtained these loans without full disclosure of the lease terms, a vote from the company’s Board of Directors or even valid, written lease contracts.

In one of the schemes, Manlove purchased the Vann’s store in Helena, appraised at nearly $2.8M, for approximately $1.9M. From loan proceeds, Manlove then applied $100K towards paying down his own Home Equity Line of Credit (HELOC). Manlove continued to charge Vann’s “rent” on the properties even after the stores closed. These rent payments continued even after Vann’s declared bankruptcy. Payments made by wire transfer served as the basis for dozens of wire fraud counts.

Ultimately, the jury also found that Manlove committed bankruptcy fraud by making a claim for $2.4M against Vann’s bankruptcy estate after the company folded. The legal theory behind Manlove’s claim - by failing to continue to pay rent on the Helena Store, Vann’s “breached its contract” with Manlove, even though no written contract ever existed. 

The jury also found that Manlove defrauded his company through dozens of unauthorized credit card purchases, reimbursements, trades and other transactions. The government presented evidence of flights and hotel expenses for a “mother/daughter” shopping week in New York City; Manlove’s trades of Vann’s Accounts Receivables for diamond earrings and a Rolex watch; Manlove’s receipt of thousands of dollars for a realtor’s commission on the sale of a Vann’s property, and thousands of dollars of unauthorized travel. Chief among these unauthorized purchases was Manlove’s expenditure of over $200,000 of Vann’s funds for tuition and expenses for an Executive MBA degree at Northwestern University’s Kellogg School of Business. Shortly after obtaining this degree, Manlove used Vann’s funds to purchase resume writing services from TheLadders.com and a class ring from Kellogg totaling approximately $1,500.

Manlove himself testified at trial. On the witness stand, he claimed that he only obtained the MBA degree to help Vann’s compete in a challenging economy. However, under cross-examination prosecutors confronted Manlove with an email from the spring of his last year at school in which he had stated to a colleague: “During the second year at Kellogg, I began pondering the next chapter in my life both personally and professionally… I have decided to open the next chapter in my life and am planning my exit from our company. I believe my skills are very marketable, so it is a matter of timing and finding something I am passionate about.” 

Another of Manlove’s defenses was that one of the main reasons he went to Kellogg was to recruit talent so that Vann’s could compete with Amazon.com in online sales. However, the government produced evidence that undercut this claim. Shortly after obtaining his degree, Manlove sent an email to management at Amazon. Attached to his email was a resume and cover letter in which Manlove asked to be considered for a senior executive position at Amazon.

Manlove also claimed that his travel expenses to Kellogg, New York and elsewhere were related to efforts to obtain venture capital funds for the benefit of Vann’s, Inc. However, evidence presented at trial showed that one of Manlove’s trips to New York in 2012 occurred when he was simultaneously drawing a paycheck from both Vann’s and Velodyne Inc. – a Vann’s competitor.  No evidence of the identity of any supposed venture capitalist or any venture capital investment was offered at trial. Manlove negotiated a separation agreement with Vann’s shortly after this trip.

Prosecutors overcame an advice-of-counsel defense and were successful in striking the Defendant’s proposed expert witness testimony that the “Business Judgement Rule” provided a justification for Manlove’s conduct.  In fact, the Court excluded much of the Defendant’s expert’s testimony altogether due to that expert’s conflicts of interest (the same attorney who advised Manlove during the company’s descent into bankruptcy and who was the crux of the “advice of counsel” defense).

At the conclusion of the three-week trail, the jury rendered a guilty verdict on 170 counts of fraud.  The following day (Saturday, February 4) the jury also returned a forfeiture verdict in the amount of $2.4M.

Mr. Manlove was sentenced by U.S. District Court Judge Dana L. Christensen on May 19, 2017 to 5 years, 3 months in federal prison. After a five hour hearing, Judge Christensen ordered Manlove to self-report to begin serving his sentence in Sheridan, Wyoming. He also ordered Manlove to make payments on his forfeiture verdict of $2,467,574.56.

A former employee of Vann’s Inc., Jay Allen, wrote:

“This is yet another cautionary tale; a tale of individual greed and unchecked ego being permitted to horse collar a successful company of 200 hard-working and committed employees and scatter them across an employment landscape still reeling from the recession. A sordid story of faith breached.”

The United States would like to express sincere gratitude to the 13 men and women of the jury for their service. The United States also expresses its thanks to DOL Investigator Rachel Hackman, IRS Special Agent Martin Halko, FBI Special Agent Shaun Schrader, as well as former AUSA Kris McLean, who were all instrumental in building the prosecution of the case.

The case was prosecuted by Assistant U.S. Attorneys Adam Duerk and Zeno Baucus.

The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.

Appearing before U.S. Magistrate Cavan in Billings on May 15, 2017 and entering pleas of Not Guilty were:

• KRISTA LEAH ANDERSON, a 27-year-old resident of Billings, appeared on charges of possession of a firearm not registered in the National Firearms Registration and Transfer Record.  If convicted of the most serious charge contained in the indictment, ANDERSON faces 10 years in prison, $10,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-48

• CATHERINE MABEL BROCK, a 41-year-old transient, appeared on charges of failure to register as a sex offender.  If convicted of the charge contained in the indictment, BROCK faces 10 years in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the United States Marshals Service.  PACER Case Reference.  17-52

• STEVEN NEIL HOPPER, a 29-year-old resident of Laurel, appeared on charges of felon in possession of firearms and ammunition.  If convicted of the charge contained in the indictment, HOPPER faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-44

• CURTIS WAYNE OLSON, a 46-year-old resident of Billings, appeared on charges of possession of a firearm not registered in the National Firearms Registration and Transfer Record.  If convicted of the most serious charge contained in the indictment, OLSON faces 10 years in prison, $10,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-48

Appearing before U.S. Magistrate Johnston in Great Falls on May 15, 2017 and entering pleas of Not Guilty were:

• GREGORY CANTRELL AZURE, a 35-year-old resident of Wolf Point, appeared on charges of assault resulting in serious bodily injury, and assault with a dangerous weapon.  If convicted of the most serious charge contained in the indictment, AZURE faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.   PACER Case Reference.  17-28

• NICHOLAS DANIEL BURSHIA, a 18-year-old resident of Fort Kipp, appeared on charges of aggravated sexual abuse, and abusive sexual contact.  If convicted of the most serious charge contained in the indictment, BURSHIA faces life in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.   PACER Case Reference.  17-29

• VINCENT PAUL FUREY, a 41-year-old resident of Idaho Falls, Idaho, appeared on charges of interstate communication of a threat to injure, interstate communication with intent to extort, and interstate stalking.  If convicted of the most serious charges contained in the indictment, FUREY faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.   PACER Case Reference.  17-07

Appearing before U.S. Magistrate Johnston in Great Falls on May 11, 2017 and entering pleas of Not Guilty were:

• PAUL BRIAN HARWOOD, a 36-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury, and domestic abuse by a habitual offender.  If convicted of the most serious charge contained in the indictment, HARWOOD faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.   PACER Case Reference.  17-30

• ROBERT DAVID LINN, JR., a 52-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charges contained in the indictment, LINN faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by Homeland Security Investigations, Great Falls Police Department, and Russell Country Drug Task Force.  PACER Case Reference.  17-31

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 so that you stay current and not miss any important developments in the case.

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.

***In order to protect the privacy of the child victim in this case, the United States Attorney’s Office is requesting that the media not disclose the victim’s name or display an image of the victim when reporting this story. We are aware that her identity and images were released to the public in the course of the Amber Alert. This is simply a request, and we understand that the decision is ultimately left to your discretion. Please do not hesitate to contact our Public Information Officer below with any questions.***

MISSOULA – Rodney Lee Zahn, 61, formerly of Madison County, Montana, was sentenced today in federal court for transporting a child in interstate commerce with the intent the child engage in criminal sexual activity, namely sexual abuse of a minor in the third degree. Zahn pleaded guilty to the charge on January 30, 2017. Chief U.S. District Court Judge Dana Christensen sentenced Zahn to 120 months in prison. Following his release, Zahn will be placed on supervised release for 10 years. Zahn is also required to pay $ 773.04 in restitution to the victim, and forfeit his Ford pickup truck and camper that was used to transport the minor victim out of Montana.

In an offer of proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that in late July 2016, Defendant Rodney Lee Zahn befriended a family in Sheridan, Montana. This included the family’s 16-year old daughter. Due to a diagnosed intellectual disability, the child cannot make sound judgments and is at risk of being manipulated by others. On the night of August 1, 2016, Zahn met the child a few blocks from the family’s residence. Zahn and the child left Sheridan that night in his truck pulling a camper trailer. After discovering she was gone the next morning, the child’s family reported her missing. On August 4, 2016, law enforcement located Zahn and the child in Casper, Wyoming. Zahn was arrested and was interviewed. Zahn admitted that he and the child left Montana, and drove through Idaho into Wyoming. Zahn admitted that he and the child had sexual intercourse twice during the trip. Zahn also stated that he knew the child was 16 years old.

Madison County Sheriff Roger Thompson stated, “It was highly unfortunate that Mr. Zahn decided to make the decision he did that created such a grave concern for the family. Getting the victim back safely was a great outcome. The cooperation and assistance the Federal Bureau of Investigation (FBI) and National Center for Missing and Exploited Children (NCMEC) provided to the Madison County Sheriff’s Office was tremendous and deeply appreciated.”

Federal Bureau of Investigation Ricky Shelbourn stated, “Rodney Zahn took advantage of a family’s trust and generosity, only to manipulate and victimize their daughter. The FBI aims to protect society’s most vulnerable from predators like Zahn. The effort is greatly enhanced because we work closely together with our law enforcement partners. In this case, inter-agency collaboration was integral to our finding the victim within 48 hours from her disappearance.”

The case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation, the Madison County Sheriff’s Office, and the Casper Wyoming Police Department.

MISSOULA – Roam Savage Chandler, 22, of Missoula, Montana, was sentenced to 120 months in prison, 10 years supervised release, and a $200 special assessment by United States District Court Judge Donald W. Molloy on Friday, May 12, 2017 for sex trafficking of a minor and using an interstate facility to promote prostitution.  In April and May 2017, Chandler sex trafficked a 17-year old girl and promoted the prostitution of a 22-year old woman in Missoula, Montana.  Chandler advertised both females on backpage.com and obtained funds through the females engaging in commercial sex acts. 

FBI Supervisory Senior Resident Agent Ricky Shelbourne said, “"Human trafficking is a devastating crime that the FBI and our law enforcement partners will continue to fight aggressively. Today’s sentencing is the result of a collaborative effort, multiple agencies working together with one goal, to keep youth and vulnerable individuals safe from those who prey on them."

Montana Regional Violent Crime Task Force Officer Guy Baker said, “This case resulted from Missoula PD patrol officers contacting the juvenile victim at a local hotel and recognizing she was a possible trafficking victim. The resulting investigation by MPD and the FBI's Montana Regional Violent Crime Task Force identified the suspect and a second trafficking victim. This is a serious crime happening in Missoula and in other communities across Montana.  The FBI and Missoula PD take a very proactive approach in investigating and prosecuting the suspects who exploit the females involved in these sex trafficking cases.”

Chandler’s investigation was conducted by the Montana Regional Violent Crime Task Force, Federal Bureau of Investigation, and Missoula Police Department. Assistant United States Attorney Cyndee L. Peterson prosecuted the case.

The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.

 

Appearing before U.S. Magistrate Cavan in Billings on May 4, 2017 and entering pleas of Not Guilty were:

 

• THYANNA FAITH LITTLESUN, a 23-year-old resident of Lame Deer, appeared on charges of involuntary manslaughter, and assault resulting in serious bodily injury. If convicted of the most serious charge contained in the indictment, LITTLESUN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation. PACER Case Reference. 17-45

 

• LENRAY JESS TWO TWO, a 51-year-old resident of Lame Deer, appeared on charges of aggravated sexual abuse, and abusive sexual contact. If convicted of the most serious charge contained in the indictment, TWO TWO faces life in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-51

 

Appearing before U.S. Magistrate Johnston in Great Falls on May 2, 2017 and entering pleas of Not Guilty were:

 

• ANDREW RUNNING CRANE, a 32-year-old resident of Heart Butte, appeared on charges of theft of federally provided welfare benefits by fraud, and federal welfare assistance fraud. If convicted of the most serious charge contained in the indictment, RUNNING CRANE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Agriculture Office of Inspector General. PACER Case Reference. 17-19

 

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 so that you stay current and not miss any important developments in the case.

 

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.

The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.

Appearing before U.S. Magistrate Cavan in Billings on April 27, 2017 and entering pleas of Not Guilty were:

• MARK STEVEN ELK SHOULDER, a 50-year-old resident of Billings, appeared on charges of failure to register.  If convicted of the charge contained in the indictment, ELK SHOULDER faces 10 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the U.S. Marshals Service.  PACER Case Reference.  17-40

• CHRISTOPHER RAY METZGER, a 41-year-old resident of Billings, appeared on charges of concealing a person from arrest.  If convicted of the charge contained in the indictment, METZGER faces 5 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the FBI Task Force.  PACER Case Reference.  17-46

Appearing before U.S. Magistrate Cavan in Billings on April 26, 2017 and entering pleas of Not Guilty were:

• FRANCISCO CALDERON, a 47-year-old resident of San Jose, California, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, CALDERON faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-36

• LUIS JAVIER GASPAR, a 19-year-old resident of San Jose, California, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, GASPAR faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-36

Appearing before U.S. Magistrate Cavan in Billings on April 25, 2017 and entering pleas of Not Guilty were:

• WILLIAM THOMAS HAYNES, a 43-year-old resident of St. Xavier, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, HAYNES faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Golden Valley County Sheriff’s Office.  PACER Case Reference.  17-42

Appearing before U.S. Magistrate Cavan in Billings on April 24, 2017 and entering pleas of Not Guilty were:

• LOYAL JUDE HOGAN, a 32-year-old resident of Lodge Grass, appeared on charges of abusive sexual contact with a minor.  If convicted of the most serious charge contained in the indictment, HOGAN faces 2 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Federal Bureau of Investigation.   PACER Case Reference.  17-14

Appearing before U.S. Magistrate Johnston in Great Falls on April 18, 2017 and entering pleas of Not Guilty were:

• BRANDEN CONRAD MIESMER, a 27-year-old resident of Great Falls, appeared on charges of carjacking.  If convicted of the charge contained in the indictment, MIESMER faces 15 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-02

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 so that you stay current and not miss any important developments in the case.

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.

HELENA - The United States Attorney's Office announced that Richard Charles Saari, 33, of East Helena, was sentenced to a term of 135 months in prison, lifetime supervised release, and a special assessment of $100 during a federal court hearing in Helena, Montana, on April 12, 2017, before Senior U.S. District Judge Charles C. Lovell. In addition, the defendant was also required to pay a $5,000 assessment for the Justice for Victims of Trafficking Act of 2015.

Saari was sentenced in connection with his November 16, 2016, guilty plea to receipt of child pornography. This case stemmed from an investigation initiated in August 2015 by a Helena Police Detective assigned to the Montana Internet Crimes Against Children Task Force. Investigators determined that Saari met a minor female online and then enticed the child into sending him sexually explicit images of herself via cell phone. Following the interview of the child, agents seized an electronic storage device from Saari’s East Helena home and found multiple images of child pornography. The images were organized in electronic subfolders on the storage device, each labeled with the first and last name of the female. Agents determined Saari received the images via his cell phone and then downloaded the files to the external hard drive. Agents identified several of the females depicted in the files and determined eleven of them were under the age of 18. Saari received the images of child pornography between approximately December of 2013 and September of 2015.

Federal Bureau of Investigation Supervisory Senior Resident Agent Rick Shelbourn stated: “The Helena Montana Internet Crimes Against Children Task Force works tirelessly to ensure communities are safe from offenders who prey on our children. This case reflects the success of that collaborative effort and the commitment to protect society’s most vulnerable from those who exploit them.”

Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that Saari will likely serve all of the time imposed by the court. In the federal system, Saari does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.

The investigation was a cooperative effort between the Helena Police Department, the Montana Internet Crimes Against Children (ICAC) Task Force, Federal Bureau of Investigation, Lewis and Clark County Sheriff’s Office, East Helena Police Department, DHS-Homeland Security Investigation and the Montana Division of Criminal Investigation.

A former resident of Nevada and Montana was sentenced to 36 months in prison yesterday for interfering with the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Leif Johnson for the District of Montana.

According to documents filed with the court, from March 2010 through September 2014, Steven D. Pjevach filed tax returns seeking refunds using personal identification information that he solicited through phony help-wanted advertisements that he posted on Craigslist.  The filings directed the IRS to send the fraudulent refunds to bank accounts in Pjevach’s name and the names of other individuals, who Pjevach supplied with false information in order to permit him to use their accounts. 

In addition to the term of prison imposed, Pjevach was ordered to serve one year of supervised release and to pay $239,337.10 in restitution to the IRS.

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Johnson commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Chad C. Spraker, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

BILLINGS – Jesus Deniz Mendoza, 19, of Worland, Wyoming, pleaded guilty today in Billings federal court to murder, assault, and firearm charges.  Under the terms of the plea agreement, the government will recommend that Mendoza serve the statutory maximum for each offense of conviction.  Specifically, it will request that the court impose life sentences for two counts of second degree murder and three counts of using a firearm during and in relation to crimes of violence, 20 years for assault with intent to commit murder, and 10 years for assault with a dangerous weapon, with each sentence to run consecutively, one after the other.  On the firearm offenses alone, Mendoza faces a mandatory minimum sentence of 60 years that must run consecutively to the sentences imposed for the murders and assaults.  United States District Court Judge Susan P. Watters presided over the change of plea hearing and  set sentencing for August 10, 2017 in Billings.

     In court documents, federal prosecutors stated that if called upon to prove its case at trial, the United States was prepared to demonstrate that on July 29, 2015, at approximately 10:11 a.m., Crow Agency dispatch received a call about a shooting on Pryor Gap Road in Pryor, Montana, between the St. Charles Mission School and Plenty Coups Park.  The first law enforcement officers on the scene saw a deceased male and a deceased female lying in the road, face down.  Also observed at the scene was a 1990 Ford Taurus, green, bearing Wyoming license plate number 20-2934, registered to the mother of Deniz Mendoza.

     The daughter of the deceased male and female was with her parents when they were shot.  She was interviewed by law enforcement and stated that her mother came to her house and told her that there was a guy that needed assistance.  The three took the daughter’s car and drove past the St. Charles Mission School on Pryor Gap Road, where they met up with Deniz Mendoza who was in a green vehicle that was parked on the side of the road.  When they approached Deniz Mendoza, he stepped out of his vehicle, pointed a gun at them, and told them to get out of the car.  They complied and got out of their car.  Deniz Mendoza told them to stand behind the car and asked them for money.  They told him that they did not have any money.  Deniz Mendoza then told them to start walking away from their car.  As they were walking, the daughter heard a gunshot.  When she turned around, she saw her father lying on the road.  She started running.  As she was running, she heard her mother scream, but she did not turn around because she was scared.  She kept running and, as she did, she felt blood running down her face, which was later determined to be the result of a bullet wound.  She heard another gunshot and felt a bullet hit her in the back.  She then turned around and saw Deniz Mendoza get into her car and drive off. 

     The daughter was able to yell for help, and she caught the attention of some individuals at the St. Charles Mission School.  A car drove to her location, and she told the female driver that she had been hurt.  The female driver got out of the car and walked towards the daughter’s parents lying in the road.  Fearing that the unknown male would come back, the daughter got into the female driver’s car.  When the daughter saw her car coming back toward her, she got behind the wheel of the female driver’s car and drove away. 

     Two males drove from the St. Charles Mission School to the scene after someone had informed them that gunshots were fired nearby.  They were at the scene when Deniz Mendoza returned to the scene in the daughter’s car, got out of the car, and started shooting.  Because the female driver was outside of her car (the daughter had driven her car away), the males pushed the female driver into a ditch and told her to play dead.  Both males confirmed that Deniz Mendoza shot at the female driver and pointed the gun at all of them.

     As a result of a law enforcement bulletin, the daughter’s vehicle was located near Meeteetse, Wyoming by a Park County Wyoming Sheriff’s Deputy.  Deniz Mendoza was driving the vehicle.            

     On July 29, 2015, law enforcement conducted a recorded interview of Deniz Mendoza.  During the interview, Deniz Mendoza admitted to shooting three people with a .22 caliber rifle and then driving away from the scene in the victims’ vehicle.  Deniz Mendoza also described the rifle that he used, and he told the interviewing agents that the rifle was still in the vehicle that he was driving when he was arrested. 

     This case was prosecuted by Assistant U.S. Attorneys Lori Harper Suek, John D. Sullivan, and Joseph E. Thaggard and investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs, and the Montana Highway Patrol.

GREAT FALLS - The United States Attorney’s Office announced that on March 2, 2017, before U.S. District Judge Brian M. Morris, Delvin Conrad Chad Red Eagle was sentenced to 158 months of imprisonment, three years of supervised release, and required to pay a special assessment of $100.

Red Eagle shot his girlfriend with a .270 rifle in Poplar, Montana, in January of 2016.  Immediately after the shooting, Red Eagle stuck the .270 under his girlfriend, called 911, and claimed that his girlfriend “committed suicide.”  Authorities arrived on scene and initially believed Red Eagle’s story.  The family of the victim was informed of the alleged suicide. 

But local law enforcement and the FBI preserved the scene and continued to investigate for any foul play.  In an Offer of Proof filed by Assistant U.S. Attorney Ryan Weldon, an autopsy concluded that due to the measurements of the rifle and the victim’s physical traits, “[I]t would not have been physically possible for the decedent to sustain a self-inflicted, close-range gunshot wound with the rifle recovered from the scene.” 

The FBI re-interviewed Red Eagle on March 2, 2016, who finally admitted that he took the gun away from the victim and pointed it at her.  Red Eagle then pulled the trigger, claiming he did not expect the firearm to fire a round.  The bullet, however, struck the victim in the head and killed her. 

At sentencing, the family of the victim explained to the Court that they knew the case was not a suicide, the victim was an integral part of their family, and Red Eagle’s actions had catastrophic consequences.  As a result, the Court sentenced Red Eagle to 158 months of imprisonment followed by three years of supervised release.     

Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Red Eagle will likely serve all of the time imposed by the Court.  In the federal system, Red Eagle does have the opportunity to shorten the term of custody by earning credit for good behavior.  However, this reduction will not exceed 15% of the overall sentence.  

This case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. 

GREAT FALLS – Kenneth James Hatzenbeller, 52, of Great Falls, Montana, pleaded guilty to bank fraud today in U.S. District Court. He faces a maximum prison sentence of 30 years imprisonment and a $1 million fine.  Hatzenbeller also agreed to pay at least $1,077,866 in restitution.  U.S. District Court Judge Brian M. Morris presided over the change of plea and set sentencing for May 18, 2017 in Great Falls. 

     In court documents, federal prosecutor Chad Spraker stated that if called upon to prove its case at trial, the United States was prepared to demonstrate that in August of 2014, Hatzenbeller contacted Zions Bank and requested a $500,000 loan to purchase furniture, fixtures, and equipment for five Chili's restaurants operated by Shoot the Moon.  The collateral for the loan was to be the furniture, fixtures, and equipment purchased with the loan proceeds.  Hatzenbeller signed a collateral agreement acknowledging that fact. 

     On September 2, 2014, Hatzenbeller signed a Disbursement Request and Authorization requesting that $500,000.00 in loan proceeds be disbursed to Penner Brokerage.  That same day, the Bank initiated a wire transfer of $494,890 to Wells Fargo for the benefit of Penner Brokerage based on invoices listing Penner Brokerage as the vendor for various furniture, fixtures, and equipment in that total amount.  The account number identified as belonging to Penner Brokerage was in fact an account controlled by Hatzenbeller’s daughter who knew nothing of Penner Brokerage or the invoices until interviewed by the FBI.  Hatzenbeller’s daughter indicated her father had asked to use her account to accept bank funds and then transfer those funds to him.  The funds were never used for furniture, fixtures and equipment and were redirected to other company debts leaving Zions uncollateralized and unsecured. 

     Shoot the Moon filed for a Chapter 11 bankruptcy with the United States Bankruptcy Court in October of 2015.  Hatzenbeller was deposed in the bankruptcy proceeding.  When questioned about the $490,000 deposit into Shoot the Moon’s account, he claimed it was a loan from his daughter and her husband, which Hatzenbeller used to pay Shoot the Moon’s general expenses.

     This case was prosecuted by Assistant U.S. Attorney Chad C. Spraker and investigated by the Federal Bureau of Investigation and the United States Trustee.

GREAT FALLS, MT – In an effort to combat the growing epidemic of prescription drug and heroin abuse, the FBI and DEA have released Chasing the Dragon: The Life of an Opiate Addict, a documentary aimed at educating students and young adults about the dangers of addiction. The film focuses on educating the public about the dangers of opioid addiction and features stark, first-person accounts by individuals who have abused opioids, or whose children have abused opioids with tragic consequences. According to the Centers for Disease Control and Prevention, 44 people die every day in America from an overdose of prescription painkillers. Since 2014, more than 14,000 people have died from prescription opioid overdoses alone.

     The public is invited to a free viewing of the film on Wednesday, March 1, 2017 from 6:00 to 7:00pm at the Mansfield Theatre in the Civic Center (2 Park Drive, Great Falls). In addition, the public is welcome to attend, at the same location, a reception prior to the screening from 5-6pm and a post-screening discussion of issues related to opioid addiction with a panel of law enforcement and community professionals including Barbara Roach - Special Agent in Charge USDEA, Honorable Michael Cotter - US Attorney for the District of Montana, Honorable Judge Pinksi - Cascade County District Court Judge, Brian Lockerby - Administrator for MTDCI, Dr. Brad Nieset - Medical Director Benefis Outpatient Specialty Clinics, Nikki Phillips - BSN, Benefis Pain Management Clinic, and A Representative From The Addiction & Recovery Field.

     United States Attorney Mike Cotter stated, “The rise of heroin use and the abuse of prescription opioids has devastated communities all over the United States. The best way to avoid that in Montana is to get our local communities to confront these issues early and often, and I can tell you, our local communities have responded, and are responding. I am proud to be a part of this effort and I look forward to seeing many of my former friends, neighbors and colleagues at this event.”

     DEA Special Agent in Charge Barbra Roach stated, “The prescription opioid epidemic, and the subsequent rise in the use of heroin and other controlled substances, is one of the most important problems in our nation today. It’s become pervasive in our society, extending from metropolitan to rural areas, and it either touches us directly or those that we know. That is why events such as these are so important. We need to take the time to educate our communities, and our neighbors, on the risks inherent in the abuse of prescription pain killers. Forums like the one in Great Falls are the first, best step in addressing and correcting the problem.”

    The event is a joint effort by GFPD, USDEA, Substance Abuse Prevention Alliance, Benefis Health Systems, MTDCI, Montana U.S. Attorney’s Office, and Big Sky Managed Care to educate community members of the growing opioid epidemic.

The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.

Appearing before U.S. Magistrate Johnston in Great Falls on February 16, 2017 and entering pleas of Not Guilty were:

• DANIEL WILLIAM DOBLER, a 34-year-old resident of Lakewood, Washington, appeared on charges of conspiracy to commit interstate transportation of stolen property and interstate transportation of stolen property.  If convicted of the most serious charge contained in the indictment, DOBLER faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation, Montana Highway Patrol, Valley County Sheriff’s Office, and Minot North Dakota Police Department.  PACER Case Reference.  17-04

 

Appearing before U.S. Magistrate Lynch in Missoula on February 16, 2017 and entering pleas of Not Guilty were:

• NATHAN SCOTT CROWLEY, a 37-year-old resident of Trout Creek, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, CROWLEY faces life in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Sanders County Sheriff’s Office, and U.S. Fish and Wildlife Service.  PACER Case Reference.  16-46

 

Appearing before U.S. Magistrate Johnston in Great Falls on February 13, 2017 and entering pleas of Not Guilty were:

• VANESSA DAWN VALLIER, a 33-year-old resident of Great Falls, appeared on charges of theft of mail, wire fraud, aggravated identity theft, and misuse of a passport.   If convicted of the most serious charges contained in the indictment, VALLIER faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the U.S. Postal Service and Great Falls Police Department.  PACER Case Reference.  17-12

 

Appearing before U.S. Magistrate Johnston in Great Falls on February 6, 2017 and entering pleas of Not Guilty were:

• RYAN GEORGE BREDESON, a 34-year-old resident of Great Falls, appeared on charges of theft of mail, and wire fraud. If convicted of the most serious charge contained in the indictment, BREDESON faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the U.S. Postal Service and Great Falls Police Department.  PACER Case Reference.  17-12

 

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 so that you stay current and not miss any important developments in the case.

 

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.

BILLINGS—David Crosby, 44, of Forsyth, was convicted of failure to register as a sex offender following a one-day jury trial.  United States District Judge Susan Watters presided over the trial.  Sentencing has been set for June 14, 2017.

A February 2016 indictment alleged that Crosby failed to register as a sex offender from in or about September 2015 until November 11, 2015.  During that same time period, Crosby committed felony offenses for assault with a weapon and sexual abuse of children, for which he was later prosecuted by the Rosebud County Attorney’s Office.  In September 2016, the Montana Sixteenth Judicial District Court, Rosebud County, sentenced Crosby to a 50-year term of imprisonment at the Montana State Prison for those offenses. 

In 2007 in Colorado, Crosby was convicted of sexual assault of a child by a person in a position of trust.  As a result, Crosby is required to register as a sex offender for the rest of his life.  At trial, the government introduced evidence that in May 2015, Crosby informed law enforcement in Fort Morgan, Colorado, of his intention to de-register as a sex offender in Colorado and move to New York.  In September 2015, however, Crosby’s vehicle broke down in Forsyth, Montana.  While in Forsyth, Crosby began working full-time as a welder’s helper.  He and his family also rented a home, where they lived until November 11, 2015, when Crosby was arrested by the Rosebud County Sheriff’s Office for the sexual and violent assaults, for which he was later charged and convicted.

Representatives of the Rosebud County Sheriff’s Office and the Montana Sexual Violent Offender Registry testified at trial that Crosby did not register as a sex offender at any point while living in Forsyth.  Crosby also testified at trial.  He admitted that he did not register as a sex offender while in Montana, stating instead that he believed he had 90 days in which to do so.  Under the Sex Offender Registration and Notification Act, however, Crosby was required to register within three working days after a change in residence or employment.

The case was investigated by the United States Marshals Service and prosecuted by Assistant U.S. Attorney John Sullivan.

MISSOULA —Lauren Jane Hoskins, 26, of Somerville, Tennessee, was sentenced to 14 months in prison, 3 years supervised release, and a $100 special assessment by Chief United States District Court Judge Dana L. Christensen on Friday, February 10, 2017 for aiding and abetting the possession with intent to distribute controlled substances—methamphetamine and Suboxone—into the Montana State Prison The charges were part of a scheme where Erin Bernhardt, an employee in the prison laundry, smuggled the controlled substances into inmates at the prison in exchange for bribes. The crimes occurred between April and August 2015.

The court previously sentenced other members of the scheme to the following sentences: Cordero Robert Metzker, to three years in prison; Erin Bernhardt, to 14 months in prison; and Ian Scott Barclay to 92 months in prison.

The charge against Hoskins is the result of an investigation by the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections-Division of Investigations, Montana State Prison Warden Leroy Kirkegard and his staff, and the Montana Division of Criminal Investigations. Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Jeffrey Starnes prosecuted the case.

United States Attorney Michael Cotter stated, “This is an important case aimed at an ongoing effort to root out public corruption and exclude unlawful controlled substances from the Montana State Prison. The sentence issued by the court sends a powerful message that those who introduce drugs into the prison will be investigated, prosecuted, and imprisoned.” Cotter also praised the cooperation of the various agencies that worked in unison to conduct the investigation and prosecution.

The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.

 

Appearing before U.S. Magistrate Cavan in Billings on February 10, 2017 and entering pleas of Not Guilty were:

• CAMERON EMANUEL FALLS DOWN aka GUTIERREZ, a 21-year-old resident of Lodge Grass, appeared on charges of attempted robbery.  If convicted of the charge contained in the indictment, FALLS DOWN faces 15 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-04

 

• JAYLEN MIGUAL MEDICINE BULL, a 23-year-old resident of Northern Cheyenne, appeared on charges of attempted robbery.  If convicted of the charge contained in the indictment, MEDICINE BULL faces 15 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-04

 

• PEARLIEJO SAMANTHA OLD DWARF, a 19-year-old resident of Lodge Grass, appeared on charges of attempted robbery.  If convicted of the charge contained in the indictment, OLD DWARF faces 15 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-04

 

• JERREY EUGENE ROWLAND, a 22-year-old resident of Northern Cheyenne, appeared on charges of attempted robbery.  If convicted of the charge contained in the indictment, ROWLAND faces 15 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-04

 

Appearing before U.S. Magistrate Johnston in Great Falls on February 9, 2017 and entering pleas of Not Guilty were:

• GREGORY ROSS GUARDIPEE, a 35-year-old resident of Browning, appeared on charges of strangulation.  If convicted of the charge contained in the indictment, GUARDIPEE faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-07

 

• RAYMOND KARL YELLOW OWL, a 40-year-old resident of Browning, appeared on charges of assault resulting in substantial bodily injury to a dating partner, and assault of a dating partner by strangulation.  If convicted of the most serious charge contained in the indictment, YELLOW OWL faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-13

 

Appearing before U.S. Magistrate Johnston in Great Falls on February 7, 2017 and entering pleas of Not Guilty were:

• NATALEE CHRISTINE CRUMLEY, a 24-year-old resident of Power, appeared on charges of wire fraud, aggravated identity theft, engaging in monetary transactions in property derived from specified unlawful activity.  If convicted of the most serious charges contained in the indictment, CRUMLEY faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Internal Revenue Service Criminal Investigation Division.  PACER Case Reference.  17-03

 

• THOMAS EDWARD MANCHA, a 60-year-old resident of Browning, appeared on charges of first degree murder.  If convicted of the charge contained in the indictment, MANCHA faces life in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-10

 

• FELIX VANSLYKE, JR., a 32-year-old resident of Lewistown, appeared on charges of felon in possession of a firearm, and possession of a firearm not registered in the National Firearms Registration and Transfer Record.  If convicted of the charge contained in the indictment, VANSLYKE faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-58

 

Appearing before U.S. Magistrate Cavan in Billings on February 6, 2017 and entering pleas of Not Guilty were:

• BILLY JOE CHAVEZ, a 34-year-old resident of Billings, appeared on charges of distribution of methamphetamine.  If convicted of the most serious charge contained in the indictment, CHAVEZ faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the FBI Task Force. PACER Case Reference.  17-03

 

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 so that you stay current and not miss any important developments in the case.

 

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.

MISSOULA - The United States Attorney’s Office announced today the sentencing results of four individuals for conspiracy to commit robbery, carjacking, kidnapping and other crimes. On or around May 27, 2016, in Missoula County, Thomas Earl Dempsey, Nick West, Carissa Lynn Kopp, and Hannah Nichole Parker robbed Deano’s General Store in Missoula. Kopp and Parker drove the “getaway” car, while Demspey and West entered the store and demanded money at gunpoint. They robbed Deano’s of $3,200. Meanwhile, Kopp and Parker had driven away and left Dempsey and West stranded. Dempsey and West hijacked the car of a family in the parking lot, as a member of that family was describing the heist to 911 Dispatch.

 

With the kidnapped family still in the car, Dempsey and West led the Missoula County Sheriff’s Office and Missoula Police Department on a high-speed chase. There were five victims in the car with the kidnappers, including a mother, father, grandmother, and two children. During the chase, Dempsey fired at the police. Eventually Dempsey and West stopped the car and ran. They were arrested a short time later.

 

Today, Dempsey was sentenced to 312 months in prison followed by 5 years supervised release for his plea of guilty to conspiracy to commit robbery affecting commerce, in violation of 18 U.S.C. § 1951(a), carjacking, in violation of 18 U.S.C. § 2119, kidnapping in violation of 18 U.S.C. § 1201(a)(1), and possessing and discharging of a firearm in furtherance of a crime of violence in violation of 18 U.S.C. § 924(c)(1)(A)(iii).

 

West was sentenced to 180 months in prison followed by 5 years supervised release for his plea of guilty to the crimes of conspiracy to commit robbery affecting commerce, in violation of 18 U.S.C. § 1951(a), carjacking, in violation of 18 U.S.C. § 2119, and possessing and brandishing of a firearm in furtherance of a crime of violence in violation of 18 U.S.C. § 924(c)(1)(A)(ii).

 

Kopp was sentenced to 108 months in prison followed by 3 years supervised release for the crime of conspiracy to commit robbery affecting commerce, in violation of 18 U.S.C. § 1951(a).

 

Parker was sentenced to 60 months in prison followed by 3 years supervised release for the crime of conspiracy to commit robbery affecting commerce, in violation of 18 U.S.C. § 1951(a).

 

Chief Judge Dana L. Christensen handed down the sentences in Missoula. Additionally, the defendants were jointly ordered to pay $14,891.98 in restitution.

 

United States Attorney Michael W. Cotter stated, “I want to thank all members of the task force, the federal agents and local law enforcement for their quick thinking and extraordinary efforts in apprehending these dangerous criminals, and ensuring that no further injuries occurred. The United States Attorney’s Office looks forward to a continued partnership with all of the state and local law enforcement agencies that support and participate on the Montana Regional violent Crime Task Force.”

 

FBI Special Agent Monte Shaide added, “This case is a result of the diligence of investigators and demonstrates the effectiveness of the Montana Regional Violent Crime Task Force. The FBI takes pride in our valuable partnerships with local law enforcement, who all work tirelessly to maintain the safety of our communities.”

The case was investigated by the Missoula County Sheriff’s Office, the Missoula City Police Department, and the FBI’s Montana Regional Violent Crime Task Force which consists of the agencies previously mentioned as well as the Federal Bureau of Investigation, Montana Division of Criminal Investigation, Lewis and Clark County Sheriff’s Office, and Montana Department of Corrections Probation and Parole, and prosecuted by Assistant United States Attorney Tara Elliott.

The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.

 

Appearing before U.S. Magistrate Cavan in Billings on January 30, 2017 and entering pleas of Not Guilty were:

• ETHEL MARIE BRADY, a 38-year-old resident of Lame Deer, appeared on charges of involuntary manslaughter, and assault resulting in serious bodily injury.  If convicted of the most serious charge contained in the indictment, BRADY faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-02

 

Appearing before U.S. Magistrate Cavan in Billings on January 25, 2017 and entering pleas of Not Guilty were:

• ROBERT WESLEY LAFOUNTAIN, a 43-year-old resident of Lodge Grass, appeared on charges of assault resulting in substantial bodily injury, assault of a dating partner by strangulation, and interstate domestic violence.  If convicted of the most serious charges contained in the indictment, LAFOUNTAIN faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  16-120

• JESSE JAMES MEYERS, a 25-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine.  If convicted of the charge contained in the indictment, MEYERS faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  17-06

 

Appearing before U.S. Magistrate Johnston in Great Falls on January 24, 2017 and entering pleas of Not Guilty were:

• SEAN ROBERT ROBINSON, a 30-year-old resident of Great Falls, appeared on charges of possession of a stolen firearm, and possession of a firearm not registered in the National Firearms Registration and Transfer Record.  If convicted of the most serious charge contained in the indictment, ROBINSON faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department.  PACER Case Reference.  16-39

 

Appearing before U.S. Magistrate Cavan in Billings on January 24, 2017 and entering pleas of Not Guilty were:

• DONALD THEODORE FULLER, a 33-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine, distribution of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charges contained in the indictment, FULLER faces life in prison, $5,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation and the Eastern Montana HIDTA.  PACER Case Reference.  17-05

 

Appearing before U.S. Magistrate Johnston in Great Falls, on January 19, 2017 and entering pleas of Not Guilty were:

• GILBERT DUANE BRADLEY, a 45-year-old resident of Harlem, appeared on charges of assault resulting in serious bodily injury, and assault with a dangerous weapon.  If convicted of the most serious charge contained in the indictment, BRADLEY faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation and Fort Belknap Law Enforcement Services.  PACER Case Reference.  17-02

 

Appearing before U.S. Magistrate Cavan in Billings on January 11, 2017 and entering pleas of Not Guilty were:

• SIDNEY CHARLES DECRANE, a 39-year-old resident of Pryor, appeared on charges of abusive sexual contact with a minor.  If convicted of the charge contained in the indictment, DECRANE faces 2 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  16-118

 

Appearing before U.S. Magistrate Cavan in Billings on January 10, 2017 and entering pleas of Not Guilty were:

• HOLLY NICOLE NIEMI, a 37-year-old resident of Billings, appeared on charges of felon in possession of a firearm and ammunition.  If convicted of the charge contained in the indictment, NIEMI faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  16-124

 

Appearing before U.S. Magistrate Johnston in Great Falls, on January 10, 2017 and entering pleas of Not Guilty were:

• THOMAS LEE SCOTT, a 20-year-old resident of Chelsea, appeared on charges of involuntary manslaughter.  If convicted of the charge contained in the indictment, SCOTT faces 8 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation, Fort Peck Tribes Department of Law and Justice and the Roosevelt County Sheriff’s Office.  PACER Case Reference.  16-83

 

Appearing before U.S. Magistrate Johnston in Great Falls, on January 9, 2017 and entering pleas of Not Guilty were:

• MICHAEL EDWARD COPENHAVER, a 28-year-old resident of Belgrade, appeared on charges of possession of stolen firearm or ammunition, stealing firearm from a licensed dealer, felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charges contained in the indictment, COPENHAVER faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gallatin County Sheriff’s Office.  PACER Case Reference.  16-18

 

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 so that you stay current and not miss any important developments in the case.

 

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.

 

***In order to protect the privacy of the child victim in this case, the United States Attorney’s Office is requesting that the media not disclose the victim’s name or display an image of the victim when reporting this story. We are aware that her identity and images were released to the public in the course of the Amber Alert. This is simply a request, and we understand that the decision is ultimately left to your discretion. Please do not hesitate to contact our Public Information Officer below with any questions.***

 

MISSOULA – Rodney Lee Zahn, 60, formerly of Sheridan, Montana, pleaded guilty today in Missoula federal court to transportation of a minor with intent to engage in criminal sexual activity. He faces a mandatory minimum prison sentence of 10 years to ­­­­­­life, up to $250,000 dollars in fines, and not less than 5 years of supervised release. He also agreed to forfeit the Ford pick-up truck and camper used to transport the child across state lines. U.S. District Court Magistrate Jeremiah C. Lynch presided over the change of plea hearing and set sentencing for May 18, 2017, in Missoula.

 

In court documents, federal prosecutor Cyndee Peterson stated that if called upon to prove its case at trial, the United States was prepared to demonstrate that in July of 2016, Zahn befriended a family in Sheridan, Montana, including a 16-year old girl. On August 2, 2016, Zahn and the child covertly left Sheridan. When the family discovered the child was missing, an Amber Alert was issued for the child. Zahn and the child were located in Casper, Wyoming. Zahn admitted he had sexual intercourse with the child twice and stated he knew she was 16 years old. FBI Laboratory analysis of biological kits taken from Zahn and the child were consistent with Zahn’s admissions regarding sexual contact.

 

This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation, the Madison County Sheriff’s Office, and the Casper Wyoming Police Department.

 

HELENA - U.S. Attorney Michael W. Cotter announced today that the Montana United States Attorney’s Office collected $4.5 million in Fiscal Year (FY) 2016 related to criminal and civil actions. In some cases, the U.S. Attorney’s Office worked in conjunction with litigating components of the U.S. Department of Justice.

 

Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected $15.3 billion in civil and criminal actions in the fiscal year ending September 30, 2016. The $15.3 billion in collections in FY 2016 represents more than five times the approximately $3 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period. Collections in Montana totaled $55.3 million for the past five fiscal years combined, more than twice the operating budget for Montana’s U.S. Attorney’s Offices for those years.

 

“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”

 

“The collections program illustrates an important aspect of the USAO’s public service mandate that is often overlooked,” said U.S. Attorney Michael W. Cotter. “It is important to all of us in the U.S. Attorney’s Office that we maintain a positive balance sheet. This office, like the Department of Justice overall, pays for itself. Considering the many things we do, from defending torts and environmental lawsuits on the one hand, to prosecuting violent crime on our six American Indian reservations of the other hand, the American taxpayers are getting value for their money.”

 

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the departments Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

 

Occasionally, assets from criminals are forfeited by court action. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. Forfeited assets include currency or bank accounts, real property and cars purchased with illegal proceeds or used to facilitate crimes, guns held by convicted felons, and computers used for child pornography.

 

Those who regularly follow the news are aware of the function of the United States Attorney’s Office (USAO) regarding federal criminal prosecution. Equally important, but perhaps not as well known, is the mission, function and success of the Montana USAO in recovering money for the benefit of victims of crime and the U.S. Treasury. This critical mission is accomplished in large part by the Financial Litigation Unit (FLU). The FLU collects criminal restitution, fines, and penalties ordered to be paid to federal agencies when federal programs are defrauded. In addition the FLU Unit helps federal prosecutors identify and forfeit assets that represent the proceeds of or that were used to facilitate federal crimes.

 

MISSOULA – Roam Savage Chandler, 22, of Missoula, Montana, pleaded guilty today in Missoula federal court to sex trafficking of a minor and racketeering charges. He faces a mandatory prison sentence of ­­­­­­10 years to life in prison for the trafficking count and up to five years for the racketeering charge. U.S. District Court Judge Donald W. Molloy presided over the change of plea and set sentencing for May 11, 2017 in Missoula.

 

In court documents, federal prosecutor Cyndee Peterson stated that if called upon to prove its case at trial, the United States was prepared to demonstrate that in May of 2016, law enforcement personnel interviewed a 17-year old female who stated that Chandler was her boyfriend and had the idea to make money from her participation in commercial sex acts. She stated that in early May of 2016, she engaged in multiple acts of commercial sex in different Missoula hotels and motels. She also said that Chandler had posted ads promoting commercial sex with her on the website backpage.com. She told law enforcement personnel that Chandler knew she was 17 years old. Chandler’s knowledge of her age was verified by another witness. Law enforcement personnel obtained hotel/motel records verifying the stays and records of the backpage.com advertisements.

 

An adult female witness stated that Chandler had similarly suggested that she engage in commercial sex acts and that she had in fact done so. Just as he had done with the 17-year-old, Chandler promoted the adult female online and received proceeds from her acts of

prostitution. Law enforcement personnel also obtained records substantiating the witness’ statements.

 

This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Montana Regional Violent Crime Task Force, the FBI, the Missoula Police Department, and the Missoula County Sheriff’s Office.

MISSOULA—Zachary Thomas Armstrong, 25, of Bozeman, was sentenced to 48 months in prison, 15 years supervised release, and a $5,100 special assessment by Chief United States District Court Judge Dana L. Christensen on Thursday, January 5, 2017. The sentence stems from Armstrong’s plea to guilty in August of last year. The defendant also has to pay $9,000 in restitution.

 

The investigation found that the defendant reported that his iPad had been stolen from his apartment in Bozeman. The next day an individual turned the iPad into the Bozeman Police Department stating the device contained images of child pornography. A forensic examiner searched the data and located approximately 1700 images of children, some under the age of 12, engaged in sexually explicit conduct.

 

Assistant U.S. Attorney Cyndee Peterson prosecuted the case which was investigated by the Internet Crimes Against Children Task Force and the Bozeman Police Department

MISSOULA – The United States Attorney’s Office announced today the completion of a Montana operation that convicted eight defendants for methamphetamine distribution and illegal possession of 68 firearms and thousands of rounds of ammunition. The operation, which joined numerous law enforcement agencies in Montana and was spearheaded by the Montana Regional Violent Crime Task Force, involved conspiracies to distribute approximately 11 pounds of methamphetamine in Montana, orchestrated by Richard Stroh, Logan Weniger, Neal Maddox, Misty Beck, and others. Nearly all eight defendants illegally possessed firearms and all were sentenced to at least 51 months in federal prison. Chief U.S. District Judge Dana Christensen sentenced Weniger to 17.5 years and Maddox to 15 years in prison. All 68 firearms were forfeited to the federal government, as was almost $11,000 in United States currency.

 

“This operation put an end to organizations that were delivering dangerous drugs straight into our Montana communities,” said Mike Cotter, U.S. Attorney for the District of Montana. “Methamphetamine has a devastating ripple effect—it ruins lives, families and communities. I am proud of the hard work and long hours the members of this operation invested in these cases. Our state is a safer place as a result.”

 

The Montana Regional Violent Crime Task Force includes members from the Federal Bureau of Investigation, the Missoula City Police Department, the Missoula County Sheriff’s Office, the Montana Division of Criminal Investigation, the Lewis and Clark County Sheriff’s Office, the United States Probation Office, and the Montana Department of Corrections Probation and Parole Office. The FBI’s SWAT Team and the Flathead County Sheriff’s Office also provided valuable assistance during the investigations. The conspiracies in these cases were responsible for bringing roughly 11 pounds of meth into Montana. In addition to the significant quantity of meth, what is particularly noteworthy about this operation is the number and nature of firearms possessed by almost all of the 8 defendants. The agents who worked these cases seized 68 firearms, including several semi-automatic assault rifles, unregistered silencers, high capacity magazines, laser sights, and one fully-automatic machine gun. They also seized two 37-millimeter grenade launchers, several homemade grenades, and thousands of rounds of live ammunition.

 

All members of the drug trafficking organizations pleaded guilty to federal charges ranging from conspiracy to distribute meth to possession of a firearm in furtherance of a drug trafficking crime.

 

The investigation began in 2015, when law enforcement agents began conducting interviews about meth distribution and firearm possession in and around Missoula. The information gleaned from those interviews led to the execution of search warrants. Investigators discovered that Richard Stroh, Luke Hayes, Ryan Hippenstiel, Shacotta St. Onge, Logan Weniger, Katrina Everhart, Neal Maddox and Misty Beck were obtaining and distributing methamphetamine in Missoula, Northwest Montana, and Idaho. Several of them were also in possession of firearms and, in some instances, exchanging firearms for drugs.

 

Montana grand juries ultimately indicted the eight defendants responsible for the drug trafficking and firearm possession and all eight pleaded guilty. Maddox and Beck were the last to be sentenced, on December 16, 2016. The cases were prosecuted by Assistant U.S. Attorney Tim Racicot. This investigation involved the cooperation of many law enforcement agencies in Montana, including all the participants on the Montana Regional Violent Crime Task Force, the FBI’s SWAT Team, and the Flathead County Sheriff’s Office.

A Montana couple pleaded guilty today in federal court in Missoula, Montana to one count of conspiracy to defraud the United States, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Michael W. Cotter for the District of Montana.

 

According to the government’s offer of proof, Peggy DeYoung and John DeYoung, both 71, have not filed an individual income tax return since 1998. From 2007 through 2011, Peggy DeYoung earned income through her ownership interest in two companies that own Southern California mobile home parks. The DeYoungs also enlisted the services of Joseph Hill of Creative Consulting Group to establish a number of purported trusts. The DeYoungs opened bank accounts in the names of those trusts using fabricated taxpayer identification numbers and paid personal expenses from the accounts. The plea agreement specifies that the DeYoungs caused the U.S. Treasury a tax loss of $376,350.

 

Sentencing is scheduled for April 21. The DeYoungs face a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.

 

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Cotter thanked special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Chad Spraker and Trial Attorney Rebecca Sable of the Tax Division, who are prosecuting the case.

 

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

MISSOULA - Ian Scott Barclay, 29, of Deer Lodge Montana, was sentenced to 92 months in prison, 3 years supervised release, and a $200 special assessment by Chief United States District Court Judge Dana L. Christensen on Wednesday, December 21, 2016 for conspiring to distribute controlled substances—methamphetamine and Suboxone—into the Montana State Prison and paying bribes to a prison worker (Erin Bernhardt) for her role in the scheme.  The charges were part of a scheme where Bernhardt, an employee in the prison laundry, smuggled the controlled substances into Barclay at the prison in exchange for bribes.   The crimes occurred between April and August 2015.

 

The court previously sentenced Bernhardt to 14 months’ imprisonment for her role in the conspiracy and another member of the conspiracy, Cordero Robert Metzker, to three years’ imprisonment for his role in the scheme.  Two other defendants—Rachel Ross and Lauren Hoskins—have pleaded guilty to drug trafficking charges and will be sentenced in the near future.

 

The charges against Barclay are the result of an investigation by the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections-Division of Investigations, Montana State Prison Warden Leroy Kirkegard and his staff, and the Montana Division of Criminal Investigations.  Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Jeffrey Starnes prosecuted the case.

 

United States Attorney Michael Cotter stated, “This is an important case aimed at an ongoing effort to root out public corruption and exclude unlawful controlled substances from the Montana State Prison.  The sentence issued by the court sends a powerful message that those who introduce drugs into the prison will be investigated, prosecuted, and imprisoned.”    Cotter also praised the cooperation of the various agencies that worked in unison to conduct the investigation and prosecution.

 

A former resident of Montana and Nevada pleaded guilty today to one count of corruptly interfering with the administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Michael W. Cotter for the District of Montana. 

According to court documents, Steven D. Pjevach filed false and fraudulent income tax returns using personal identifying information, including individuals’ names and social security numbers obtained through posting false help-wanted advertisements on Craigslist.  Pjevach also opened and caused to be opened, and used and caused to be used, bank accounts in other individuals’ names to receive the fraudulently obtained tax refunds.  Pjevach provided false information to the individuals whose accounts he used regarding the reason he was using their accounts, and advised one individual to disregard correspondence from the bank regarding the account.  Finally, Pjevach created false and fraudulent Forms W-2, which he attached to the fraudulent returns in an effort to deceive the Internal Revenue Service (IRS).

Sentencing is scheduled for March 23, 2017.  Pjevach faces a statutory maximum sentence of three years in prison, a period of supervised release, restitution and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Cotter commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Chad C. Spraker, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. 

 

BILLINGS – The United States Attorney’s Office announced that on Wednesday, November 30, 2016, in U.S. District Court in Billings, George Chad Deputee was sentenced to 9 years for sexually abusing a child in the 1990s.  Deputee, 42, of Crow Agency, was sentenced by U.S. District Judge Susan Watters to 108 months in custody followed by 5 years of supervised release after a trial jury found him guilty of aggravated sexual abuse and abusive sexual contact of a child. 

 

Deputee was initially indicted in March 2015 for aggravated sexual abuse and abusive sexual contact of a child.  A superseding indictment was returned by a grand jury in November 2015.  It alleged that the sexual abuse occurred between April 1992—when Deputee turned 18 years old—and December 1997. 

 

At trial, the government introduced evidence that Deputee sexually abused two girls starting in 1989.  In August of 2012, the victim’s sister reported to BIA law enforcement that Deputee molested her in the late-1980s when she was approximately five years old.  She told authorities the abuse had occurred frequently, both day and night, while Deputee was living with her family in Lodge Grass.  Deputee was approximately 18 years old at the time.  The victim’s mother remembered waking up to hear someone running out of her children’s room.

 

The victim’s sister also informed the BIA that Deputee had sexually abused her younger sister (the victim) sometime later.  Both women testified at trial. They explained how Deputee had sexually abused and molested them when they were young girls.  All of the instances of abuse occurred in Lodge Grass, Montana on the Crow Indian Reservation, where Deputee and both victims were living during the relevant time period.

 

The FBI interviewed Deputee in October 2012.  Deputee denied that he had ever abused anyone.  During his interview, Deputee initially omitted any account of having lived with the victim’s family during the time the abuse took place.  When challenged, Deputee ultimately admitted that he had lived with the victim’s family but stated that the victim had not yet been born at the time.  Later in the interview, however, he drew a diagram of the residence, marking one of the bedrooms with the victim’s name on it. 

 

Deputee also testified at trial. On the witness stand, he claimed that he was living in North Dakota when the abuse occurred. He stated under oath that he only returned to Montana on two occasions between 1989 and 1993 – the relevant time frame. To rebut this alibi, the prosecution introduced a number of documents that placed Deputee in Lodge Grass for medical appointments on far more than two occasions during that time period. 

 

At trial, the United States also moved to introduce evidence of other sexual assaults committed by Deputee, namely on the victim’s older sister.  Both girls (now grown) recounted nearly identical, and protracted, periods of abuse by Deputee.  Deputee consistently and repeatedly molested both girls from the time they were about five years old until they were nine or ten.  The type and frequency of abuse reported by both girls was substantially the same.  Deputee began abusing the victim referenced in the Indictment shortly after he stopped abusing her older sister.  The government successfully argued that introduction of this evidence was necessary to corroborate the victim’s account, given the long period of time since the abuse had taken place.

 

The case was investigated by the FBI and BIA and prosecuted by Assistant U.S. Attorneys John Sullivan and Adam Duerk.

GREAT FALLS – Thomas Joseph Wehner Jr., 40, of Moyie Springs, Idaho, was sentenced today to serve 210 months in prison and 6 years on supervised release for distribution of methamphetamine resulting in death.  The charges stemmed from a six-count indictment in February of this year.  Wehner entered a guilty plea to the single count in August.  U.S. District Court Judge Brian Morris issued the sentence.

 

            Had the case proceeded to trial, the United States was prepared to prove that on September 22, 2015, deputies in Boundary County, Idaho, responded to a report of a business burglary.  The business owner told authorities that chainsaws, gold, numerous firearms, and his truck had been stolen during the preceding night.  The business owner told authorities two days later that he had visited Wehner’s home to discuss a business issue and observed a chainsaw he believed to be one of the ones stolen in the partially opened trunk of a car. 

 

On September 30, 2015, Meagher and Broadwater County deputies, along with Montana Highway Patrol Officers, responded to a high speed pursuit between White Sulphur Springs and Townsend.  The driver eventually stopped and law enforcement identified the vehicle as belonging to Wehner, although he was not in the vehicle when it was stopped.  Through communication with Boundary County deputies, Montana law enforcement determined that the vehicle contained one of the firearms that had been reported stolen, and that Wehner had at one point been in the vehicle. 

 

The morning of October 1, Great Falls police officers were dispatched to a report of a dead male.  The deceased victim’s wife told law enforcement that Wehner had shown up at her house the previous evening with several water bottles of what he said was “pure dope.”  The defendant and the victim proceeded to drink out of one of the bottles and the victim became agitated and died sometime during the early morning.  One of the recovered water bottles was sent to the DEA lab for testing and was determined to contain a half gram of methamphetamine with a purity of 100%.  An autopsy revealed that the victim had died after ingesting a lethal amount of methamphetamine.

 

Almost simultaneously, Judith Basin County deputies responded to a call from a woman in Hobson, MT.  She said that the defendant had shown up at her home that morning driving a rental vehicle.  He was behaving erratically and stated that there was a dead body lying on the ground in Great Falls.  She later called the authorities again to inform them that Wehner was at a nearby bank.  Detectives found him at the bank, and Wehner agreed to accompany them to the police station to be interviewed.  In Wehner’s rented vehicle, detectives found hydrocodone pills, a black suitcase with two water bottles and a ziplock bag that contained methamphetamine.  Wehner admitted that he had provided the methamphetamine to the victim and had intended to provide him with some of the drug to sell.  He also admitted to the Idaho burglary.

 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department, along with the Drug Enforcement Agency, The Montana Highway Patrol, the Meagher, Broadwater, Judith Basin, and Cascade County Sheriff’s Offices, and the Boundary County, Idaho Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Jessica Betley.

GREAT FALLS – Following a four-day trial, a federal jury today convicted Kevin McGovern and CMG Construction of Conspiracy, Wire Fraud, and Bribery, arising out of a pay-to-play scheme on the Rocky Boy’s Indian Reservation.  U.S. District Court Judge Brian Morris presided over the trial.

 

Tony James Belcourt was in care, custody, and control of over $85 million, most of which were federal funds.  During the time of the crimes, Belcourt’s job duties included serving as a representative in the House of Representatives for the State of Montana, the CEO for the Chippewa Cree Construction Corporation, and the Incident Commander for FEMA during the floods of 2010.  Belcourt and other tribal officials required contractors to pay kickbacks and bribes to tribal officials in order to receive contracts and contract payments on the Rocky Boy’s Indian Reservation.  Belcourt was previously convicted for accepting bribes and is currently serving a 90-month sentence in federal prison.   

 

Billings businessman Kevin McGovern and his company, CMG Construction, received contracts on the Rocky Boy’s Indian Reservation without being required to submit bids to the Chippewa Cree Construction Corporation.  McGovern and CMG Construction received preferential treatment from Belcourt and other tribal officials because they funneled almost $1 million to Belcourt through a company called MT Waterworks, LLC.  Belcourt never provided any services to the company.    

 

In July of 2011, Belcourt drove to Billings, Montana, and gave Kevin McGovern a $200,000 progress payment of federal funds for work performed on the Rocky Boy’s Indian Reservation.  The following day, McGovern gave a personal loan to Tony Belcourt in the amount of $50,000.  McGovern then sent $25,000 as a donation to the Chippewa Cree Events Committee, which was a known slush fund for a tribal councilman who was previously convicted for accepting bribes. 

 

“The community expects that public officials and contractors handle federal funds with great care,” said United States Attorney for the District of Montana Michael Cotter.  “When those lines are blurred, and federal funds are abused in the process, the integrity of the political system is in danger.  That is why we will continue to vigorously prosecute public corruption in the District of Montana.”

 

The jury convicted McGovern and CMG Construction of Conspiracy, Wire Fraud, and Bribery of Tony Belcourt.  The jury acquitted McGovern and CMG Construction of one count that involved bribery of another tribal official.  Sentencing has been set for February 16, 2017, at 11:00 a.m.  Kevin David McGovern and his other company, MC Equipment Holdings, LLC, are set for trial in a different bribery scheme on February 3, 2017.

 

The conviction of McGovern and CMG Construction is the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts, and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011.  The McGovern and CMG Construction case was investigated by the Department of Interior, Office of Inspector General, Health and Human Services, Office of Inspector General, and the Internal Revenue Service, Criminal Division and prosecuted by Assistant United States Attorneys Ryan Weldon, Bryan Dake and Tim Racicot.

MISSOULA – Cordero Robert Metzker, 28, of Billings, Montana, was sentenced today to 36 months’ imprisonment and five years’ supervised release for conspiring to distribute controlled substances—methamphetamine and Suboxone—in the Montana State Prison.  Chief United States District Court Judge Dana L. Christensen issued the sentence. 

 

The charge stemmed from a scheme whereby prison employee Erin Bernhardt smuggled the controlled substances to inmates at the prison in exchange for bribes.  Metzker acted as an intermediary, sending funds that were used to purchase drugs, which were then sent to Bernhardt.

 

The charge against Metzker is the result of an investigation by the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections-Division of Investigations, Montana State Prison Warden Leroy Kirkegard and his staff, and the Montana Division of Criminal Investigations prosecuted the case.

 

“This investigation represents a successful example of federal and state agencies and investigators working together to root out corruption,” said United States attorney for the District of Montana Michael Cotter.  “This type of abuse within a public prison system cannot be tolerated, and the effective prosecution of these defendants demonstrates that it will not be.”

 

The case was prosecuted by Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Jeffrey Starnes and investigated by the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections, Montana State Prison Warden Leroy Kirkegard and his staff, and the Montana Division of Criminal Investigations.

          United States Attorney for the District of Montana Michael Cotter announced today that Assistant United States Attorney (AUSA) Michael Lahr will lead the efforts of the Montana U.S. Attorney’s Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections.  AUSA Lahr has been appointed to serve as the District Election Officer (DEO) for the District of Montana, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

 

          United States Attorney Cotter said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud.  The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”

 

          The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.

 

          Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting, may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.

 

          This franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Cotter stated that AUSA/DEO Lahr will be on duty in this District while the polls are open.  He can be reached by the public at 406-457-5268.

 

          In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The Helena FBI field office has designated Special Agent Mark Seyler, who can be reached by the public at 406-449-5182.

 

          Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

 

          United States Attorney Cotter said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate.  It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”

HELENA – Judge Sam E. Haddon issued an order today finding that the United States Forest Service possesses an easement by prescription on behalf of itself and the public for use of Forest Service Trail No. 328, commonly known as the Indian Creek Trail, in the Madison Ranger District of the Beaverhead-Deerlodge National Forest. This popular trail provides public access into the Lee Metcalf Wilderness.

 

            The order comes as a result of litigation filed against the U.S. Department of Agriculture under the Quiet Title Act.  The Quiet Title Act allows the United States to be named as a defendant in a civil action “to adjudicate a disputed title to real property in which the United States claims an interest.”  Under the terms of the Quiet Title Act, state law governs determinations of property ownership.  Under Montana law, a public easement by prescription is established through at least five years of continuous and open use that is adverse (i.e. not by permission) to the interests of the underlying landowner.  The Court found that ample precedent existed in Montana law to uphold a prescriptive right of access by the Forest Service and the public for the Indian Creek Trail, and that the right had been established no later than 1973.

 

The case arose in 2014, when Plaintiff Wonder Ranch, LLC, sued the United States under the Quiet Title Act. Wonder Ranch claimed that the trail, which traverses its 80-acre parcel east of Cameron, Montana, existed and was used by the public by gratuitous permission of the landowner, and that no public right of access existed. 

 

The United States counter-sued, claiming that a prescriptive easement across Wonder Ranch for the public and the Forest Service to use the trail had been clearly established through many decades of stock, recreational, and commercial use.  The Court conducted an eight-day bench trial in July and August of 2016.  At trial, dozens of witnesses testified to recreational and administrative use of the trail over more than six decades. 

 

            In finding for the United States, the Court determined that of the more than 30 witnesses who testified to their use of the trail since 1968, when Plaintiff acquired its property, the vast majority used the trail without ever seeking Plaintiff’s permission.  Judge Haddon noted that use of the trail had in fact long-predated Wonder Ranch’s ownership of the property, as evidenced by an 1888 USGS map depicting the trail, a 1940 Forest Service map designating the trail with its current administrative number of #328, and many years of grazing, outfitting, and crossing permits.

 

            Ultimately, the Court found that the United States, on behalf of itself and the public, possesses a prescriptive easement across the Wonder Ranch property for all historical uses of the trail that occurred during the period of prescriptive use (i.e., beginning “no later than” 1968).  Based on the Court’s order, such uses include trail maintenance, Forest Service inspection of hunting camps, hiking, horseback riding, and leading strings of pack animals, as well as other historic uses of the trail that regularly occurred during this period.  The Court noted that the current location of the trail “has remained unchanged since before the statutory period of prescription” and therefore will become the officially recorded location of the public easement.

 

            “Today’s ruling upholds an important historic route of access to one of the most beautiful parts of Montana, and in so doing vindicates a core Montana value: public access to public land,” said U.S. Attorney for the District of Montana Michael Cotter.  “Hats off to the trial team and United States Forest Service staff for preserving the public’s access on a trail used historically by Native Americans, settlers, loggers, ranchers, commercial guides, and recreationists.” 

 

“This federal court decision is an extraordinary win for the public in defending access to public lands all across our nation,” remarked Leanne Martin, the Forest Service Northern Regional Forester.  “We will continue to strive to work with landowners regarding other instances of historic access across private lands.  We so appreciate the US Attorney’s Office for their support in this case and that of the many people who care about this particular trail.”

 

            This case was litigated by Assistant U.S. Attorneys Mark Smith, Leif Johnson, and Melissa Hornbein, with invaluable support from U.S. Forest Service counsel and staff, and members of the public who testified at trial.

HELENA – Martin Reap, 25, of Deer Lodge, Montana, was sentenced to 20 months’ imprisonment, five years’ supervised release, and a $100 special assessment by United States District Court Judge Sam Haddon on Tuesday, October, 2016 for accepting bribes while working as a correctional officer at the Montana State Prison.  The charge stemmed from a scheme whereby Reap smuggled contraband—including controlled substances and tobacco—to inmates at the prison in exchange for bribes. 

 

The charge against Reap was the result of an investigation by the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections-Division of Investigations, Montana State Prison Warden Leroy Kirkegard and his staff, and the Montana Division of Criminal Investigations.  Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Jeffrey Starnes prosecuted the case.

 

“This is an important case aimed at rooting out public corruption and ensuring that correctional officers carry out their obligation to ensure the safety of the community, rather than seeking personal enrichment from those they are entrusted to guard,” said United States attorney for the District of Montana Michael Cotter.  “This investigation represents the best of interagency cooperation.  Multiple federal and state entities worked together seamlessly to find and root out corruption at the Montana State Prison.”

 

This case was prosecuted by Assistant United States Attorney Joe Thaggard and investigated by the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections, Montana State Prison Warden Leroy Kirkegard and his staff, and the Montana Division of Criminal Investigations.

MISSOULA – John Stewart Davis, 71, of Coram, Montana was sentenced yesterday to 48 months in prison and three years’ supervised release for dealing in firearms without a license and making and transferring a machinegun.  Chief District Court Judge Dana L. Christensen issued the sentence.

 

Davis was charged by indictment and pleaded guilty to three counts on June 20, 2016.  In documents filed with the court, Assistant U.S. Attorney Paulette Stewart stated that, if required to prove its case at trial, the government was prepared to introduce evidence that Davis dealt in firearms without a license and that he made and transferred a machinegun that was not registered.  He also sold firearms to out of state residents.  Davis had been dealing firearms without a license for 25 years, although only the years 2013-2015 were listed in the indictment.

 

Undercover law enforcement officers purchased weapons from Mr. Davis on multiple occasions at gun shows and at Davis’ shop in northwest Montana.  Some of these purchases were regular firearms, some were machineguns, and some sales were to out of state residents.  Davis told agents that he made a machinegun and showed them how it worked.  Further, the agents observed that a room in his shop had a workbench, tools, and machines for gunsmithing, and that firearms and firearms parts were on the work bench.  Davis also obliterated the serial numbers from some of the firearms so they could not be traced back to him.  Many of these sales occurred without paperwork.

 

  The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Bureau of Alcohol, Tobacco, and Firearms, the Montana Division of Criminal Investigation, and the Royal Canadian Mounted Police.

HELENA – Joseph Lee Eldabaa, 46, of Albany Oregon was sentenced today to 120 months in prison and 60 months’ supervised release for possession with intent to distribute methamphetamine.  U.S. District Court Judge Charles C. Lovell issued the sentence.

 

Eldabaa was charged by superseding information on June 6, 2016 and pleaded guilty to the single count on June 15, 2016.  In documents filed with the court, Assistant U.S. Attorney Paulette Stewart stated that, if required to prove its case at trial, the government was prepared to introduce evidence that Eldabaa and various co-defendants transported between three and twelve pounds of methamphetamine from Arizona to Montana with the intent that it be distributed in the Helena area. 

 

Eldabaa was arrested on February 20, 2015 in Helena.  Following his arrest, law enforcement officers obtained a search warrant for the truck he was driving at the time of the arrest.  Officers found approximately three ounces of methamphetamine in the truck.  Eldabaa told law enforcement that he had also brought eight ounces of methamphetamine into Montana on a prior trip.

 

The court concurred with the government’s argument that Eldabaa’s sentence should be enhanced because Eldabaa had weapons with him in the truck.  In addition to the Methamphetamine, law enforcement found a loaded .40 caliber handgun with nine rounds in the magazine, brass knuckles, a small folding knife, and marijuana and cash.

 

The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Federal Bureau of Investigation, the Montana Division of Criminal Investigation, and the Missouri River Drug Task Force.

The Justice Department announced today that the developers and designers of 31 apartment buildings in or near Helena, Montana, have agreed to settle a lawsuit alleging that the buildings were not built to be accessible to people with disabilities, as required by the Fair Housing Act. 

The department’s lawsuit, which was also filed today, alleges that the developers and designers of the properties designed and built the 64 ground floor apartments at these buildings with steps to unit entrances, inaccessible bathrooms and kitchens or other features that make them inaccessible to people with disabilities.  The defendants named in the suit include the developers and their affiliated companies – Gabriel Nistler, Sommer Nistler, Ross Royland, Patrick Royland, Royland & Nistler Properties LLC and Werner-Nistler Properties LLC – and the designers of the properties, Derek Brown and Derek Brown Consulting Inc. 

Under the settlement, which still must be approved by the U.S. District Court for the District of Montana, the defendants must undertake extensive corrective actions to make the apartment buildings accessible to persons with disabilities, including wheelchair users.  These corrective actions include:

• creating accessible routes to ground floor apartment entrances, accessible routes to parking, mailboxes and other common areas;
• making interior modifications such as moving the locations of fixtures or moving the location of electrical outlets and thermostat controls that make the apartments more accessible to people with disabilities;
• constructing new multifamily housing with enhanced accessibility features; and
• paying $20,000 to establish a settlement fund for the purpose of compensating individuals with disabilities who have been harmed by the accessibility violations.

“All people with disabilities deserve an equal opportunity to live in the housing of their choice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “By removing accessibility barriers in existing buildings and creating new accessible units, this settlement will help ensure that individuals with disabilities in Helena, Montana, enjoy the rights guaranteed by the Fair Housing Act.”

“This settlement is emblematic of the Justice Department’s commitment to fair housing standards for all,” said U.S. Attorney Michael Cotter of the District of Montana.  “It sends a message that failing to consider the needs of individuals with disabilities in the construction of new housing is simply not acceptable in Montana communities, and helps ensure that the needs of those individuals will be considered from the earliest stages of the design and permitting processes.”

Individuals who may be entitled to share in the settlement fund will be identified through a process established in the settlement.  Persons who believe they were subjected to unlawful discrimination at one of the properties either when they lived there or considered living there should contact the Justice Department toll-free at 1-800-896-7743, Mailbox 9995, or email the department at [email protected].

The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.  Among other things, the Fair Housing Act requires that new multifamily housing be designed and constructed with features that make it accessible to people with disabilities.  More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.  Individuals who believe that they may have been victims of housing discrimination can call the Housing and Civil Enforcement Section at 1-800-896-7743, email the Justice Department at [email protected] or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777 or through www.hud.gov/fairhousing. 

Nistler II Complaint

Nistler II Consent Decree

The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.

Appearing before U.S. Magistrate Lynch in Missoula on September 22, 2016 and entering pleas of Not Guilty were:

• TERRY LYNN STURDEVANT, JR., a 29-year-old resident of Butte, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, STURDEVANT faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference. 16-11

 

Appearing before U.S. Magistrate Johnston in Great Falls on September 19, 2016 and entering pleas of Not Guilty were:

• LEON BOYD MESSERLY, a 55-year-old resident of Harlem, appeared on charges of assault resulting in serious bodily injury and assault with a dangerous weapon.  If convicted of the most serious charge contained in the indictment, MESSERLY faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference. 16-62

   

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 so that you stay current and not miss any important developments in the case.

 

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.

The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.

Appearing before U.S. Magistrate Johnson in Great Falls on September 15, 2016 and entering pleas of Not Guilty were:

• KEITH JOSEPH HANKS, a 433year-old resident of Minneapolis, Minnesota, appeared on charges of second degree murder.If convicted of the charge contained in the indictment, HANKS faces life in prison, $250,000 in fines, and 5 years supervised release.The case was investigated by the Federal Bureau of Investigation.PACER Case Reference. 16-59

• JANELLE RED DOG, a 42-year-old resident of Poplar, appeared on charges of first degree murder, second degree murder, felony child abuse and accessory after the fact.If convicted of the most serious charges contained in the indictment, RED DOG faces life in prison, $250,000 in fines, and 5 years supervised release.The case was investigated by the Federal Bureau of Investigation.PACER Case Reference. 16-60

Appearing before U.S. Magistrate Ostby in Billings on September 12, 2016 and entering pleas of Not Guilty were:

• KERIANN RUTH REED, a 27-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense.If convicted of the most serious charge contained in the indictment, REED faces life in prison, $5,000,000 in fines, and 5 years supervised release.The case was investigated by the Drug Enforcement Administration.PACER Case Reference. 16-65

  Appearing before U.S. Magistrate Ostby in Billings on September 6, 2016 and entering pleas of Not Guilty were:

• JUSTIN R. SUNDSTROM, a 30-year-old resident of Billings, appeared on charges of felon in possession of a firearm.If convicted of the charge contained in the indictment, SUNDSTROM faces 10 years in prison, $250,000 in fines, and 3 years supervised release.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.PACER Case Reference. 16-22

Appearing before U.S. Magistrate Lynch in Missoula on September 1, 2016 and entering pleas of Not Guilty were:

• NICHOLAS DENNIS LAMERE, JR., a 44-year-old resident of Marion, appeared on charges of failure to register as a sex offender.If convicted of the charge contained in the indictment, LAMERE faces 10 years in prison, $250,000 in fines, and lifetime supervised release.The case was investigated by the United States Marshals Service.PACER Case Reference. 16-33

• MICHAEL WAYNE POWELL, a 38-year-old resident of Lolo, appeared on charges of conspiracy to distribute methamphetamine, and distribution of methamphetamine.If convicted of the most serious charges contained in the indictment, POWELL faces life in prison, $10,000,000 in fines, and 5 years supervised release.The case was investigated by the Federal Bureau of Investigation.PACER Case Reference. 16-35

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 so that you stay current and not miss any important developments in the case.

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.

GREAT FALLS – The U.S. Attorney’s Office for the District of Montana, the Montana Reentry Initiative Task Force, and the Great Falls Area Chamber of Commerce will present a program addressing offender reentry initiatives on Friday, August 19, 2016.

Montana has a very high recidivism rate, which impacts communities and families throughout the state.  This problem is not unique to Montana, but is prevalent throughout the country, and the work being done in Montana on reentry issues is consistent with the principles of the Justice Department’s national initiative to address reentry issues.  These principles include the formulation of individualized reentry plans; educational, employment, life skills, and substance abuse programs during incarceration; resources to maintain and build family relationships for inmates while incarcerated; establishment of halfway house and supervised release programs that cater to the needs of individuals; and the provision of comprehensive reentry-related information and resources necessary for former offenders to succeed as citizens.

The State of Montana has taken a timely and innovative approach to this issue through entities such as the Reentry Initiative Task Force, special drug courts, and veterans’ courts, as well as individualized tribal reentry programs that address the unique needs of former offenders reentering tribal communities.  The US Attorney’s Office, representing the Justice Department, is fully committed to assisting in the development and growth of these state and tribal programs.

Friday’s program will cover a broad range of reentry issues, and will include presentations by US Attorney Mike Cotter on the Justice Department’s “Roadmap to Reentry” and related programs, Eighth Judicial District Court Judge Greg Pinski, who will present on veterans’ and drug court programs, and many others.

The program will take place on Friday, August 19, at Heritage Hall at the Great Falls College MSU from 1:00pm-4:30pm.

GREAT FALLS – Thomas Joseph Wehner Jr., 40, of Moyie Springs, Idaho, pleaded guilty today to one count of distribution of methamphetamine resulting in death.  The charges stemmed from a six-count indictment in February of this year.  Wehner appeared before U.S. District Court Judge Brian Morris to enter the guilty plea.

Had the case proceeded to trial, the United States was prepared to prove that on September 22, 2015, deputies in Boundary County, Idaho, responded to a report of a business burglary.  The business owner told authorities that chainsaws, gold, numerous firearms, and his truck had been stolen during the preceding night.  The business owner told authorities two days later that he had visited Wehner’s home to discuss a business issue and observed a chainsaw he believed to be one of the ones stolen in the partially opened trunk of a car.

On September 30, 2015, Meagher and Broadwater County deputies, along with Montana Highway Patrol Officers, responded to a high speed pursuit between White Sulphur Springs and Townsend.  The driver eventually stopped and law enforcement identified the vehicle as belonging to Wehner, although he was not in the vehicle when it was stopped.  Through communication with Boundary County deputies, Montana law enforcement determined that the vehicle contained one of the firearms that had been reported stolen, and that Wehner had at one point been in the vehicle.

The morning of October 1, Great Falls police officers were dispatched to a report of a dead male.  The deceased victim’s wife told law enforcement that Wehner had shown up at her house the previous evening with several water bottles of what he said was “pure dope.”  The defendant and the victim proceeded to drink out of one of the bottles and the victim became agitated and died sometime during the early morning.  One of the recovered water bottles was sent to the DEA lab for testing and was determined to contain a half gram of methamphetamine with a purity of 100%.  An autopsy revealed that the victim had died after ingesting a lethal amount of methamphetamine.

Almost simultaneously, Judith Basin County deputies responded to a call from a woman in Hobson, Montana.  She said that the defendant had shown up at her home that morning driving a rental vehicle.  He was behaving erratically and stated that there was a dead body lying on the ground in Great Falls.  She later called the authorities again to inform them that Wehner was at a nearby bank.  Detectives found him at the bank, and Wehner agreed to accompany them to the police station to be interviewed.  In Wehner’s rented vehicle, detectives found hydrocodone pills, a black suitcase with two water bottles and a ziplock bag that contained methamphetamine.  Wehner admitted that he had provided the methamphetamine to the victim and had intended to provide him with some of the drug to sell.  He also admitted to the Idaho burglary.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Departments, along with the Drug Enforcement Agency, The Montana Highway Patrol, the Meagher, Broadwater, Judith Basin, and Cascade County Sheriff’s Offices, and the Boundary County, Idaho Sheriff’s Office.  The case was prosecuted by Assistant U.S. Attorney Jessica Betley.

The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.

Appearing before U.S. Magistrate Johnson in Great Falls on July 21, 2016 and entering pleas of Not Guilty were:

• MITCHELL LAWRENCE LAMERE, a 22-year-old resident of Box Elder, appeared on charges of first degree murder, second degree murder, and arson.  If convicted of the most serious charges contained in the indictment, LAMERE faces life in prison, $250,000 in fines, and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference. 16-52

Appearing before U.S. Magistrate Ostby in Billings on July 19, 2016 and entering pleas of Not Guilty were:

• DEVAN GREGORY SANCHEZ, a 24-year-old resident of Lame Deer, appeared on charges of assault with intent to commit murder, assault resulting in serious bodily injury, assault with a dangerous weapon, and use of a firearm during and in relation to a crime of violence.  If convicted of the most serious charges contained in the indictment, SANCHEZ faces life in prison, $250,000 in fines, and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference. 16-67

Appearing before U.S. Magistrate Lynch in Missoula on July 19, 2016 and entering pleas of Not Guilty were:

• CHARISE LOUISE DUNN, a 51-year-old resident of Hamilton, appeared on charges of supplemental security income fraud, and false statements.  If convicted of the most serious charge contained in the indictment, DUNN faces 5 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Social Security Administration Office of Inspector General.  PACER Case Reference. 16-21

Appearing before U.S. Magistrate Johnston in Great Falls on July 7, 2016 and entering pleas of Not Guilty were:

• JOHN MARVIN OLD CHIEF, a 24-year-old resident of Browning, appeared on charges of conspiracy to commit arson of a dwelling, and attempted arson of a dwelling.  If convicted of the most serious charge contained in the indictment, OLD CHIEF faces life in prison, $250,000 in fines, and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference. 16-48

• JOHN MARVIN OLD CHIEF,  a 24-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession  with intent to distribute methamphetamine, and distribution of methamphetamine.    The case was investigated by the Bureau of Indian Affairs.   PACER Case Reference. 16-38

Appearing before U.S. Magistrate Ostby in Billings on July 6, 2016 and entering pleas of Not Guilty were:

• ANTHONY MICHAEL McGARRY, a 29-year-old transient, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, McGARRY faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.   PACER Case Reference. 16-61

Appearing before U.S. Magistrate Ostby in Billings on July 5, 2016 and entering pleas of Not Guilty were:

• PAUL MICHAEL LABRIE, a 22-year-old resident of Big Timber, appeared on charges of uttering counterfeit obligations.  If convicted of the charge contained in the indictment, LABRIE faces 20 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the United States Secret Service.  PACER Case Reference. 16-45

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 so that you stay current and not miss any important developments in the case.

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.

MISSOULA – Joseph David Robertson, 77, was sentenced today to eighteen months in prison and three years’ supervised release for unauthorized discharge of pollutants into waters of the United States and injury or depredation of United States property.  Robertson must also pay $129,933.50 in restitution.  U.S. District Court Judge Donald W. Molloy issued the sentence and ordered that Robertson be detained immediately.  Robertson was convicted in April following a four day federal trial.

Robertson was indicted by a grand jury in May of 2015 as a result of illegal ponds he built on two parcels of land near Basin, Montana, one on Beaverhead-Deerlodge National Forest land and the other on adjacent private property.  Robertson has continually asserted that he owns the property where ponds were built, but he does not.  The ponds resulted in the discharge of dredged and fill material into a tributary stream and adjacent wetlands and caused widespread damage to both properties.

At trial, the government introduced evidence that in October of 2013, a United States Forest Service (USFS) Special Agent visited the National Forest property to determine whether Robertson had complied with previously issued conditions of probation for misdemeanor violations of USFS regulations.  The Agent testified at trial that during the site visit, she observed multiple ponds dug into an existing stream on both USFS and adjacent private property not owned by Robertson.

During a subsequent site visit in November of 2013, Robertson admitted to Environmental Protection Agency (EPA) and USFS Criminal Special Agents that he had performed the work on the National Forest property using an excavator.  State and federal officials visited the site again in May of 2014, and observed that Robertson had done additional work.  The site was now approximately 1.2 acres in size, and extended beyond the National Forest property to a private property that he did not own.  The work consisted of nine ponds of varying sizes, including some as large as approximately 4900 square feet that were placed directly in the stream and wetlands area.  Unconsolidated dredged material from the ponds had been used to create the berms and had been placed in and around the stream and wetlands.  Robertson admitted that he had completed the additional work.  Additional investigation revealed that Robertson continued to construct ponds on the USFS property after May of 2014, despite being told repeatedly that he had no legal right to do so.

One of the central legal issues at trial was whether the waters polluted by Robertson were “waters of the United States” for purposes of the Clean Water Act.  The United States introduced evidence and expert testimony from the Army Corps of Engineers and the EPA that the stream and wetlands had a significant nexus to traditional navigable waters, and therefore were “waters of the United States.”  Fishery biologists from the Montana Fish, Wildlife and Parks (FWP) and the USFS testified that this headwater and wetland complex provided critical support to trout in downstream rivers and fisheries, including the Boulder and Jefferson Rivers.

“Robertson damaged federal land that the government holds in trust for the people of the United States,” said United States Attorney for the District of Montana Mike Cotter.  “Clean waterways and healthy riparian ecosystems benefit the people who are the true owners of our public lands.  This is not merely an issue of dumping a little dirt into a small stream, it is an illustration of the fact that waterways and riparian ecosystems are interconnected, and this type of destruction has significant environmental consequences downstream.  This sentence sends a message that meaningful enforcement of environmental laws serves to protect resources owned by all Americans.”

“Like all Americans, Montana residents expect their local waterways to be clean and free of pollution,” said Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Montana.  “This defendant is a repeat violator, with the conduct in this case affecting a Montana waterway, National Forest Service Lands, and private property not belonging to the defendant.  The EPA and its law enforcement partners are committed to protecting public health and our nation’s natural resources.”

The case was prosecuted by Assistant U.S. Attorney Bryan Whittaker and Special Assistant U.S. Attorney Eric Nelson from the United States Environmental Protection Agency.  This case was investigated by multiple state and federal agencies including the United States Forest Service, the Environmental Protection Agency Criminal Investigation Division, the Army Corps of Engineers, and the Jefferson County Sheriff’s Office.    Other agencies that assisted the investigation included Montana Fish, Wildlife and Parks and the Jefferson Valley Conservation District.

 

The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.

Appearing before U.S. Magistrate Ostby in Billings on June 29, 2016 and entering pleas of Not Guilty were:

• DOUGLAS DONALD PAIGE, a 36-year-old resident of Billings, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, PAIGE faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.   PACER Case Reference. 16-64

• VICTOR MIGUEL RIVERA-MUNOZ, a 30-year-old resident of Billings, appeared on charges of felon in possession of a firearm, and illegal alien in possession of a firearm.  If convicted of the most serious charge contained in the indictment, RIVERA-MUNOZ faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the FBI Task Force.  PACER Case Reference. 16-66

Appearing before U.S. Magistrate Johnston in Great Falls on June 28, 2016 and entering pleas of Not Guilty were:

• PAMELA STAR ANDERSEN, a 30-year-old resident of Peerless, appeared on charges of fraudulent issue of postal money orders, and misappropriation of postal funds.  If convicted of the most serious charge contained in the indictment, ANDERSEN faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the U.S. Postal Service Office of Inspector General.  PACER Case Reference. 16-42

• DEBORAH JOY DURAND, a 53-year-old resident of Vaughn, appeared on charges of false statement and fraud to obtain federal employee’s compensation, wire fraud, False Claims Act/fraudulent claims relating to workers’ compensation benefits, theft of government property.  If convicted of the most serious charges contained in the indictment, DURAND faces 20 years in prison, $250,000 in fines, and lifetime supervised release.  The case was investigated by the U.S. Postal Service Office of Inspector General.  PACER Case Reference. 16-43

• KEVIN DAVID McGOVERN, a 46-year-old resident of Havre, appeared on charges of conspiracy to defraud the United States and the Chippewa Cree Tribe, scheme to defraud the United States and the Chippewa Cree Tribe, and bribery of an Indian tribal government official. If convicted of the most serious charges contained in the indictment, McGOVERN faces 20 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the U.S. Department of Interior Office of Inspector General, Internal Revenue Service, U.S. Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation.  PACER Case Reference. 16-44

Appearing before U.S. Magistrate Lynch in Missoula on June 27, 2016 and entering pleas of Not Guilty were:

• KIRK EDWARD BARSNESS, a 47-year-old resident of Bozeman, appeared on charges of conspiracy to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, BARSNESS faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration, Montana Division of Criminal Investigations, Missouri River Drug Task Force, and the Montana Highway Patrol.  PACER Case Reference. 16-15

• ANTONIO GARCIA-CARDENAS, a 26-year-old resident of Pasco, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, GARCIA-CARDENAS faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference. 16-22

Appearing before U.S. Magistrate Lynch in Missoula on June 24, 2016 and entering pleas of Not Guilty were:

• CHRISTOPHER GLEN BAIRD, a 48-year-old resident of Las Vegas, Nevada, appeared on charges of conspiracy to distribute and possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm.  If convicted of the most serious charges contained in the indictment, BAIRD faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference. 16-26

• CARISSA LYNN KOPP, a 34-year-old resident of Missoula, appeared on charges of conspiracy to commit robbery affecting commerce, robbery affecting commerce, carjacking, kidnapping, possess and brandish a firearm in furtherance of a crime of violence, and possess and discharge a firearm in furtherance of a crime of violence. If convicted of the most serious charges contained in the indictment, KOPP faces life in prison, $250,000 in fines, and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation, Missoula County Sheriff’s Office, Montana Regional Violent Crime Task Force, and Missoula Police Department.  PACER Case Reference. 16-28

• BRIAN WAYNE ROGERS, a 38-year-old resident of Billings, appeared on charges of conspiracy to distribute and possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm.  If convicted of the most serious charges contained in the indictment, ROGERS faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference. 16-26

• NICK WEST, a 38-year-old resident of Billings, appeared on charges of conspiracy to commit robbery affecting commerce, robbery affecting commerce, carjacking, kidnapping, possess and brandish a firearm in furtherance of a crime of violence, and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, ROGERS faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference. 16-26

Appearing before U.S. Magistrate Ostby in Billings on June 24, 2016 and entering pleas of Not Guilty were:

• DAN CARLSON, a 49-year-old resident of Lame Deer, appeared on charges of unlawful possession of a firearm.  If convicted of the charge contained in the indictment, CARLSON faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference. 16-59

• THEODORE ALLEN WARE, a 46-year-old resident of Crow Agency, appeared on charges of aggravated sexual abuse, assault resulting in serious bodily injury, and strangulation.  If convicted of the most serious charges contained in the indictment, WARE faces life in prison, $250,000 in fines, and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference. 16-70

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 so that you stay current and not miss any important developments in the case.

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.

The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.

Appearing before U.S. Magistrate Ostby in Billings on June 23, 2016 and entering pleas of Not Guilty were:

• KRISTA LYNN MARTINEZ, a 36-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, conspiracy to possess with intent to distribute heroin, possession with intent to distribute heroin, felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charges contained in the indictment, MARTINEZ faces life in prison, $5,000,000 in fines, and 5 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference. 16-58

Appearing before U.S. Magistrate Johnston in Great Falls on June 23, 2016 and entering pleas of Not Guilty were:

• RICHARD LEE BROOME, a 58-year-old resident of El Granada, California, appeared on charges of conspiracy to defraud the Chippewa Cree Tribe, scheme to defraud the Chippewa Cree Tribe by wire, bribery/offering, and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, BROOME faces 20 years in prison, $2,400,000 in fines, and 3 years supervised release.  The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General.  PACER Case Reference. 16-19

• JOHN WILLIAM LIEBA II, a 21-year-old resident of Wolf Point, appeared on charges of kidnapping of an individual under 18, aggravated sexual abuse, and assault resulting in serious bodily injury on an individual under 18.  If convicted of the most serious charges contained in the indictment, LIEBA faces life in prison, $250,000 in fines, and lifetime supervised release.  The case was investigated by the Federal Bureau of Investigation, Fort Peck Tribes Department of Law and Justice, Roosevelt County Sheriff’s Office, Montana Highway Patrol and Customs and Border Protection.  PACER Case Reference. 16-51

Appearing before U.S. Magistrate Lynch in Missoula on June 22, 2016 and entering pleas of Not Guilty were:

• WILLIAM DONALD FLEINER, a 65-year-old resident of Helena, appeared on charges of theft from a local government receiving federal funding.  If convicted of the charge contained in the indictment, FLEINER faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation, Montana Division of Criminal Investigations and Homeland Security Investigations.  PACER Case Reference. 16-08

Appearing before U.S. Magistrate Ostby in Billings on June 22, 2016 and entering pleas of Not Guilty were:

• SHEILA AYALA, a 31-year-old resident of Long Beach, California, appeared on charges of conspiracy to possess with intent to distribute oxycodone.  If convicted of the charge contained in the indictment, AYALA faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference. 16-71

• KEVIN WELCH, a 33-year-old resident of Hallandale Beach, Florida, appeared on charges of conspiracy to possess with intent to distribute oxycodone, and possession with intent to distribute oxycodone.  If convicted of the most serious charge contained in the indictment, WELCH faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference. 16-71

Appearing before U.S. Magistrate Lynch in Missoula on June 21, 2016 and entering pleas of Not Guilty were:

• LINDA PAULINE ALLEN, a 45-year-old resident of Missoula, appeared on charges of wire fraud.  If convicted of the charge contained in the indictment, ALLEN faces 20 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference. 16-20

• LINDA SCHILKE MAVITY, a 68-year-old resident of Victor, appeared on charges of social security fraud.  If convicted of the charge contained in the indictment, MAVITY faces 5 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Social Security Administration Office of Inspector General.  PACER Case Reference. 16-23

Appearing before U.S. Magistrate Johnston in Great Falls on June 21, 2016 and entering pleas of Not Guilty were:

• GARY JOSEPH CONTI, a 70-year-old resident of Three Forks, appeared on charges of escape.  If convicted of the charge contained in the indictment, CONTI faces 5 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the U.S. Marshals Service and the Internal Revenue Service.  PACER Case Reference. 16-18

Appearing before U.S. Magistrate Johnston in Great Falls on June 15, 2016 and entering pleas of Not Guilty were:

• MARTIN GASPER MAZZARA, a 50-year-old resident of Henderson, Nevada, appeared on charges of conspiracy to defraud the Chippewa Cree Tribe, scheme to defraud the Chippewa Cree Tribe by wire, bribery/offering, and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, MAZZARA faces 20 years in prison, $2,400,000 in fines, and 3 years supervised release.  The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General.  PACER Case Reference. 16-19

• DELVIN CONRAD CHAD RED EAGLE, a 23-year-old resident of Poplar, appeared on charges of second degree murder, and use and discharge of firearm during a crime of violence.  If convicted of the most serious charge contained in the indictment, RED EAGLE faces life in prison, $250,000 in fines, and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation and Fort Peck Tribes Department of Law and Justice.  PACER Case Reference. 16-45

• ZACHARY BROOKE ROBERTS, a 45-year-old resident of Billings, appeared on charges of conspiracy to defraud the Chippewa Cree Tribe, scheme to defraud the Chippewa Cree Tribe by wire, bribery/offering, and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, ROBERTS faces 20 years in prison, $2,400,000 in fines, and 3 years supervised release.  The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General.  PACER Case Reference. 16-19

Appearing before U.S. Magistrate Ostby in Billings on June 15, 2016 and entering pleas of Not Guilty were:

• DOUGLAS DANIEL MEDINA, JR., a 39-year-old resident of Billings, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, MEDINA faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference. 16-67

• PAUL J. LOYNING, a 40-year-old resident of Colstrip, appeared on charges of possession with intent to distribute methamphetamine.  If convicted of the charge contained in the indictment, LOYNING faces 40 years in prison, $5,000,000 in fines, and 4 years supervised release.  The case was investigated by the FBI Task Force.  PACER Case Reference. 16-54

Appearing before U.S. Magistrate Johnston in Great Falls on June 14, 2016 and entering pleas of Not Guilty were:

• JASON LEE SPARKS, a 40-year-old resident of Great Falls, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, SPARKS faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference. 16-30

• TRENT STANDING ROCK, a 43-year-old resident of Box Elder, appeared on charges of theft by employee of an Indian gaming establishment.  If convicted of the charge contained in the indictment, STANDING ROCK faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.   PACER Case Reference. 16-47

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 so that you stay current and not miss any important developments in the case.

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.

The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.

Appearing before U.S. Magistrate Johnston in Great Falls on June 7, 2016 and entering pleas of Not Guilty were:

• RONALD RAY HORNER, a 56-year-old resident of Walsenburg, Colorado, appeared on charges of transportation of child pornography.  If convicted of the charge contained in the indictment, HORNER faces 20 years in prison, $250,000 in fines, and lifetime supervised release.  The case was investigated by the Homeland Security Investigations, Canada Border Services Agency, Royal Canadian Mounted Police, Southern Alberta Internet Child Exploitation Team.  PACER Case Reference. 16-40

Appearing before U.S. Magistrate Johnston in Great Falls on June 6, 2016 and entering pleas of Not Guilty were:

• ZANE COLTIN CHANDLER, a 24-year-old resident of Babb, appeared on charges of possession of a stolen firearm, and accessory after the fact.  If convicted of the most serious charge contained in the indictment, CHANDLER faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference. 16-49

• QUADE SMITH, a 24-year-old resident of Browning, appeared on charges of assault with a dangerous weapon, assault resulting in serious bodily injury, using and discharging a firearm during and in relation to a crime of violence, possession of a stolen firearm, and accessory after the fact.  If convicted of the most serious charges contained in the indictment, SMITH faces life in prison, $250,000 in fines, and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference. 16-49

Appearing before U.S. Magistrate Ostby in Billings on June 3, 2016 and entering pleas of Not Guilty were:

• TERRANCE DELVETTEO WILLIAMS, a 36-year-old resident of Billings, appeared on charges of illegal receipt of a firearm by a person under indictment.  If convicted of the charge contained in the indictment, WILLIAMS faces 5 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference. 16-26

Appearing before U.S. Magistrate Ostby in Billings on June 2, 2016 and entering pleas of Not Guilty were:

• CHANCE BILLY JOE DEHART, a 29-year-old resident of Billings, appeared on charges of conspiracy to possess with the intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, DEHART faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by Homeland Security Investigations.  PACER Case Reference. 15-150

• ALDEN LEE WILSON, a 41-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, WILSON faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the HIDTA Task Force. PACER Case Reference. 15-63

Appearing before U.S. Magistrate Johnston in Great Falls on May 25, 2016 and entering pleas of Not Guilty were:

• PHYLLIS LYNN TATSEY, a 53-year-old resident of Spokane, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, TATSEY faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration and the Bureau of Indian Affairs.  PACER Case Reference. 16-16

Appearing before U.S. Magistrate Ostby in Billings on May 25, 2016 and entering pleas of Not Guilty were:

• JOSHUA JAMES COOLEY, a 32-year-old resident of Sheridan, Wyoming, appeared on charges of possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charge contained in the indictment, COOLEY faces life in prison, $5,000,000 in fines, and 5 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference. 16-42

• RANDY FALLS DOWN, a 51-year-old resident of Pryor, appeared on charges of willful failure to file return.  If convicted of the charge contained in the information, FALLS DOWN faces 1 year in prison, $100,000 in fines, and 3 years supervised release.  The case was investigated by the Internal Revenue Service.  PACER Case Reference. 16-37

• PETER JOHN JEFFERSON, a 48-year-old resident of Lodge Grass, appeared on charges of abusive sexual contact with a minor.  If convicted of the charge contained in the indictment, JEFFERSON faces 2 years in prison, $250,000 in fines, and lifetime supervised release.  The case was investigated by the Federal Bureau of Investigation.    PACER Case Reference. 16-44

• DAVID ANDREW WALKSALONG, JR., an 18-year-old resident of Lame Deer, appeared on charges of assault resulting in seriously bodily injury, and assault with a dangerous weapon.  If convicted of the most serious charge contained in the indictment, WALKSALONG faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.  PACER Case Reference. 16-56

Appearing before U.S. Magistrate Ostby in Billings on May 24, 2016 and entering pleas of Not Guilty were:

• THOMAS GREGORY BAILEY, a 37-year-old transient, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, BAILEY faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation Task Force.  PACER Case Reference. 15-65

• ALFONSO BANDERAS-MARTINEZ, a 24-year-old resident of New York City, New York, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, BANDERAS-MARTINEZ  faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference. 16-53

 

• JOATHAM LEIGHT ECHAGILE, a 28-year-old resident of Tangipahoa Parish, Louisiana, appeared on charges of felon in possession of a firearm, and possession of a firearm in a school zone.  If convicted of the most serious charge contained in the indictment, ECHAGILE faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference. 16-15

• ANGEL GUZMAN-BANDEROS, a 19-year-old resident of San Jose, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, GUZMAN-BANDEROS faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference. 16-53

• LUIS FELIPE LOPEZ-ROJAS, a 22-year-old resident of San Jose, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, LOPEZ-ROJAS faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference. 16-53

• CHARLES JESSE SANCHEZ, JR., a 50-year-old resident of Billings, appeared on charges of felon in possession of a firearm and ammunition.  If convicted of the charge contained in the indictment, SANCHEZ faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference. 16-40

Appearing before U.S. Magistrate Johnston in Great Falls on May 23, 2016 and entering pleas of Not Guilty were:

• THELMA FAY PEPION, a 49-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, PEPION faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference. 16-27

Appearing before U.S. Magistrate Lynch in Missoula on May 19, 2016 and entering pleas of Not Guilty were:

• NICHOLAUS WADE MANGELS, a 29-year-old resident of Polson, appeared on charges of receipt of child pornography.  If convicted of the charge contained in the indictment, MANGELS faces 5 years in prison, $250,000 in fines, and lifetime supervised release.  The case was investigated by Homeland Security Investigations, Internet Crimes Against Children Task Force, and Flathead County Sheriff’s Office.    PACER Case Reference. 16-06

Appearing before U.S. Magistrate Johnston in Great Falls on May 17, 2016 and entering pleas of Not Guilty were:

• BRIAN KELLY EAGLEMAN, a 53-year-old resident of Box Elder, appeared on charges of theft from an Indian Tribal organization.  If convicted of the charge contained in the indictment, EAGLEMAN faces 5 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Department of Interior Office of Inspector General, Health and Human Services Office of Inspector General, Internal Revenue Service, and the Federal Bureau of Investigation.  PACER Case Reference. 16-35

• BRIAN KELLY EAGLEMAN, a 53-year-old resident of Box Elder, appeared on charges of income tax evasion and failure to file a currency transaction report.  If convicted of the most serious charge contained in the indictment, EAGLEMAN faces 5 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Internal Revenue Service.  PACER Case Reference. 16-41

• VIOLET LYNN EAGLEMAN, a 47-year-old resident of Havre, appeared on charges of income tax evasion and failure to file a currency transaction report.  If convicted of the most serious charge contained in the indictment, EAGLEMAN faces 5 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Internal Revenue Service.  PACER Case Reference. 16-41

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 so that you stay current and not miss any important developments in the case.

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.

GREAT FALLS  – Cassidy Winters, 29, of Great Falls was sentenced today to 28 months in prison and 10 years’ supervised release for possession of child pornography.  Winters will also be required to pay $12,500 in restitution for six victims.  Federal District Court Judge Brian M. Morris issued the sentence.

Winters was charged by superseding information on February 17, 2016.  In documents filed with the court, Assistant U.S. Attorney Cyndee Peterson stated that, if required to prove its case at trial, the government was prepared to introduce evidence that Winters possessed multiple files containing child pornography between December 2012 and May 2015.

In March 2015, agents for the U.S. Secret Service and the Montana Internet Crimes Against Children Task Force downloaded files from an IP address as part of an online investigation to identify individuals sharing child porn over the Internet using a peer to peer file sharing network.  They identified the registered subscriber of the IP address as Winters and obtained a search warrant for his home.

On May 27, 2015, agents served the warrant and seized several computers and digital devices from Winters’ bedroom.  The items were forensically analyzed and contained image and video files depicting children engaged in sexually explicit conduct.  The agents also recovered search terms connected to the software that indicated Winters had sought out known images and series of child pornography.  At the sentencing, a witness testified that Winters had engaged in this criminal conduct for five or six years.

The case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the United States Secret Service, the Flathead County Sheriff’s Office, and the Montana Internet Crimes Against Children Task Force.

MISSOULA – Rachel Leanna Ross, 25, of Collierville Tennessee, and Lauren J. Hoskins, 26, of Somerville, Tennessee, were arraigned in federal court yesterday on a six-count superseding indictment charging them with various drug distribution crimes.

Ross and Hoskins were the fourth and fifth defendants to be arraigned under the indictment.  Three other defendants were arraigned on Tuesday and an additional defendant was arraigned last month under a separate indictment.  Both Ross and Hoskins were arraigned on charges of conspiracy to possess with intent to distribute a controlled substance and possession with intent to distribute a controlled substance.

The superseding indictment is the result of an investigation into drug smuggling at the Montana State Prison.  The investigation was a cooperative effort between the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections Investigations Division, Montana State Prison Warden Leroy Kirkegard and his staff, and the Montana Division of Criminal Investigations.

An indictment is simply a charging document that initiates formal court proceedings.  Ross and Hoskins are presumed innocent of the charges in the superseding indictment unless and until they are found guilty beyond a reasonable doubt at trial.

BILLINGS – Olaf James Haugen, 29, of Lame Deer was sentenced today to 210 months in prison and 10 years’ supervised release for rape.  Federal District Court Judge Susan P. Watters issued the sentence.

Haugan was convicted of aggravated sexual abuse following a two-day jury trial in Billings in December of 2015.  Haugen was indicted by a grand jury in January on the single count of aggravated sexual abuse in January 2015.  At trial, the government introduced evidence that Haugen physically and sexually assaulted the victim in August of 2013.  A dispute started when the victim confronted Haugen about his drug abuse.  Haugen became angry.  He threatened to kill the victim with a pocket knife, raped her, hit her several times and bit her on the back.  The assault started on the evening of August 31 and continued into the next morning.

The assault was heard by an individual in the adjoining room, but was not reported by that individual.  Later, another individual came to the house and overheard the assault continuing.  She reported the assault to the BIA and an officer responded to the scene.  When the officer arrived, the victim opened a window and asked the officer to help her because Haugen was beating her up.  Haugen initially refused to allow the officer into the room and threatened to stab himself, but eventually calmed down and was arrested.

The victim was examined by Indian Health Services after the assault.  Her injuries included abrasions and contusions consistent with being struck, a large bite mark on her back and an abrasion on her throat consistent with having a knife held against it.  The victim did not initially disclose the rape but was convinced by a family member to do so and reported the rape two days later.  Haugen claimed the intercourse was consensual but gave conflicting accounts of the incident at trial and to investigating officers following his arrest.

The case was prosecuted by Assistant U.S. Attorney John Sullivan.  The case was investigated by the FBI and the Bureau of Indian Affairs.

HELENA – Ryan Scot Frankforter, 38, of Helena was sentenced to 30 months in prison and 3 years’ supervised release, Deejay Poynter, 37, of East Helena was sentenced to 70 months in prison and 3 years’ supervised release, Calvin Sturdivant Craver, 29, of Dallas, OR was sentenced to 120 months in prison and 5 years supervised release, and Joseph Dean Jayne Jr., 33, of Tucson, AZ was sentenced to 150 months in prison and 5 years’ supervised release.  Federal District Court Judge Charles C. Lovell issued the sentences.

All four men were sentenced following an August 2015, eleven-count indictment.  Frankforter and Poynter were sentenced for distribution of methamphetamine and Craver and Jayne were sentenced for conspiracy to possess with intent to distribute methamphetamine.  In documents filed with the court, Assistant U.S. Attorney Paulette Stewart stated that the government was prepared to show that the four had been involved, in various capacities, in a months-long conspiracy to transport and distribute methamphetamine across state lines.

From approximately December 2014 until May 2015, between 3 and 12 pounds of methamphetamine was transported from Arizona to Montana by Jayne and another co-conspirator and was redistributed by Poynter and Frankforter.  In December of 2014, law enforcement purchased various amounts of methamphetamine from Poynter and Frankforter.  Both Poynter and Frankforter ultimately admitted to their roles in the sales.

In February of 2015, Craver was arrested in Townsend following a traffic complaint.  Following his arrest, a search warrant was executed on his vehicle.  Law enforcement seized approximately three ounces of methamphetamine.  Craver’s co-defendants told law enforcement that Craver and another co-conspirator had been given approximately 8 ounces of methamphetamine to transport from Arizona to Montana, of which the remaining three ounces were found by law enforcement in Craver’s vehicle.

Also in February of 2015, Jayne supplied a co-conspirator with methamphetamine to transport to Montana.  Jayne also personally transported approximately one pound of methamphetamine from Arizona to Montana.  Law enforcement saw Jayne in Montana City but he fled before he could be apprehended.  Law enforcement obtained a search warrant for Jayne’s vehicle and recovered approximately a pound of methamphetamine.  Jayne was subsequently involved in a vehicle pursuit with law enforcement on February 20, 2015.  He again fled the scene while a co-conspirator was arrested.  A gun was found in their vehicle.  After being arrested in Oregon in May 2015, Jayne admitted to his role in the conspiracy and that the gun found in the vehicle was his.  Jayne stated that he made three or four trips to Montana transporting one to three pounds of meth on each trip.  Jayne stated that approximately one pound of meth originated in Oregon while the rest was transported from Arizona.

This case was investigated by the Missouri River Drug Task Force, the Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration, the Montana Division of Criminal Investigation, the Helena Police Department, and the Lewis and Clark County Sherriff’s Office.  The case was prosecuted by Assistant U.S. Attorney Paulette Stewart.