District of Montana
Press releases recorded for this federal judicial district.
Nebraska Man Sentenced in Missoula to More than 16 Years in Prison for Child Porn CrimeRead the Press Release
MISSOULA – Tony Gustafson, 48, of Hastings, Nebraska, was sentenced today to 200 months in federal prison, followed by lifetime supervised release, for conspiracy to advertise child pornography. Gustafson was also required to forfeit his computer, hard drives, a USB device, and 30 VHS tapes that were involved in the crime. Chief U.S. District Court Judge Dana Christensen sentenced Gustafson following a February 9, 2015, change of plea hearing, in which Gustafson pleaded guilty to the offense.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have proven that an invitation-only online bulletin board, referred to as Dark Moon, was created in 2011. It allowed members to advertise and exchange images of child pornography. In approximately 2012, Gustafson became an active member of the bulletin board and continued to be an active member in a more advanced role as of April 19, 2013. Gustafson requested child pornography from other members while on the bulletin board. He also responded to and commented on posts of child pornography on the board. Law enforcement analyzed Gustafson’s digital devices and other evidence, which revealed that he used hard drives, a computer, a USB storage device, and 30 VHS tapes in commission of the crime. Gustafson was ordered to forfeit those items at the sentencing.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children. Investigative agencies in the case include the FBI, Homeland Security Investigations, and Montana Division of Criminal Investigation.
Assistant United States Attorney Cyndee Peterson prosecuted this case along with Maureen Cain, of the U.S. Department of Justice Child Exploitation & Obscenity Section. Because there is no parole in the federal system, Gustafson will have to serve at least 85% of his sentence before he is released from prison.
Ex-Billings High School Coach Pleads Guilty to Child Pornography, Coercion and Enticement ChargesRead the Press Release
BILLINGS – Scott James Nichols, 42, of Lockwood, Montana, pleaded guilty today in Billings federal court to distribution of child pornography, two counts of coercion and enticement, and two counts of attempted coercion and enticement. Nichols pleaded to the five counts pursuant to a Superseding Information. On the child pornography count, he faces a mandatory minimum five to twenty years in prison, up to $250,000 dollars in fines, and five years to lifetime supervised release. On the four coercion and enticement- related counts, he faces a mandatory minimum ten years to life in prison, up to $250,000 in fines, and five years to lifetime supervised release. U.S. District Court Judge Susan P. Watters presided over the change of plea and set the sentencing hearing for October 7, 2015, in Billings, Montana.
In court filings, the government stated that if the case had proceeded to trial, it would have proven that around January 2013, a Bozeman police detective received a tip that an individual had solicited explicit images of underage females. Posing as a 16-year-old girl, the detective made contact with the individual on Facebook. The individual solicited sexual images from the detective posing as the young girl. The detective then executed a search warrant on Facebook and discovered the individual was soliciting many apparently underage females through various social networking website, email addresses and a phone. Through a subpoena, the detective learned that the phone number was assigned to Scott James Nichols.
The detective learned that Nichols was, at that time, the Billings West High School Basketball coach and had recently been employed in the Livingston area as a coach. Further investigation revealed that Nichols was using several online aliases and posing as a teenage high school student. Under two aliases, Nichols asked underage females to send sexually explicit images to a specific phone number. Nichols was interviewed and admitted that the number was his. This was confirmed through the phone company.
An examination of Nichols’ phone revealed that he had used his email to receive sexually explicit images from underage females. He also received and distributed child pornography from this email address. Search warrants revealed that Nichols corresponded with underage females frequently through his email accounts. He would contact them, ask their age, ask if they are alone, and would make sexual comments. He would then encourage them to send him sexually explicit images of themselves. One of the counts he pleaded to involves that type of conduct from a computer with an IP address connected to Billings West High School. The other offense involved Nichols chatting under a fake Facebook name with a young woman who identified herself as 13-years-old. He asked her to send pictures of private areas. That conduct was done from an IP address assigned to Billings West High School. Nichols also had sexual Facebook chats with the teen, who identified herself as 14-years-old. He asked her to send him a sexually explicit photo, which she did. Nichols also Facebook chatted with a girl identifying herself as 14-years-old. Nichols asked her to engage in sexual behavior on a webcam with him. Lastly, in relation to the child pornography distribution count, Nichols sent at least 16 emails with files attached containing images of minors engaged in sexually explicit conduct. As part of his plea, Nichols forfeited his computers and phones used in the commission of the above crimes.
This case was prosecuted by Special Assistant U.S. Attorney Ole Olson and investigated by the Internet Crimes Against Children Task Force, including the Billings Police Department and the Federal Bureau of Investigation.
Washington Man Pleads Guilty to Bringing Drugs and Prostitution to Missoula AreaRead the Press Release
MISSOULA – Frederick Glen Johnson, 47, of Spokane Valley, Washington, pleaded guilty today in Missoula federal court to drug and prostitution-related racketeering charges. He faces a mandatory prison sentence of five to forty years, up to five million dollars in fines, and at least four years supervised release for the drug crime. For the racketeering crime involving prostitution, he faces up to five years in prison, a $250,000 fine, and three years of supervised release. U.S. Magistrate Court Judge Jeremiah Lynch presided over the change of plea and set sentencing for October 1, 2015, in Missoula.
Johnson pleaded guilty to one count of conspiracy to possess with the intent to distribute and to distribute methamphetamine and heroin as well as one count of interstate travel in aid of racketeering. In court documents, federal prosecutor Cyndee Peterson stated that a co-conspirator of Johnson’s received meth and heroin from sources in Washington state and elsewhere. The co-conspirator, Johnson, and others conspired to bring heroin and meth into Missoula County for distribution. Co-conspirators estimated that between approximately February 2014 and November 2014, they collectively possessed with intent to distribute, and did distribute, 50 grams or more of a substance or mixture containing methamphetamine, as well as 100 grams or more of the same in heroin. Johnson also brandished a Raven Arms .25 caliber semi-automatic handgun during the drug transaction.
Johnson also pleaded guilty to interstate travel in aid of racketeering, which involved travel between states in order to engage in unlawful activity. Here, the unlawful activity was prostitution or promoting prostitution in violation of Montana state law. The crime also involved Johnson taking affirmative steps to facilitate the prostitution or its promotion. Johnson travelled from Spokane, Washington to Missoula, Montana, with five people, with the intent to promote prostitution. While in Missoula, Johnson would drive the five individuals to meet with prostitution customers.
This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation, Montana Violent Crime Task Force, Missoula Street Crimes Unit, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Montana Drug Operation Convicts 20 Defendants, Seizes 25 Guns and More Than Half a Million Dollars in MethRead the Press Release
GREAT FALLS – The U.S. Attorney’s Office announces today the completion of a Montana operation that convicted 20 defendants for methamphetamine, firearm and money laundering charges, resulting in the seizure of more than half a million dollars worth of meth. Operation Highline Crystal Highway joined more than a dozen law enforcement agencies in Montana and California and resulted in the seizure of an estimated 13 pounds of meth, and also identified another estimated 50 pounds of meth involved in the drug conspiracy. Law enforcement also seized 25 guns as part of the operation. The guns were either traded directly for meth or traded as payment for debt owed for meth. The defendants are also responsible for a monetary judgment totaling approximately $2.4 million for the money gained from the methamphetamine trafficking conspiracy, which includes nearly $56,000 in money laundering proceeds.
“This multi-agency collaboration is a testament to the power of strength in numbers,” said U.S. Attorney Michael W. Cotter of the District of Montana. “This operation dismantled an acute and violent threat to the people of Great Falls, Montana, and surrounding communities and I am pleased to announce the conviction of the 20th defendant in this operation.”
“It was a great investigative effort between local, state and federal agencies targeting a very significant drug distribution network in the Great Falls area and a Mexican source of supply based in California,” said Resident Agent in Charge Joe Kirkland of the Drug Enforcement Administration (DEA). “By dismantling a criminal organization of this size, the task force has had a huge impact on the distribution of methamphetamine in Montana.”
The 20th defendant who was sentenced today in Great Falls was Joshua Alberto Rodriguez, 29, of Los Angeles, California. He was sentenced after pleading guilty to crimes involving methamphetamine, firearm and money laundering conspiracies. U.S. District Court Judge Brian Morris of the District of Montana sentenced Rodriguez to over 22 years in prison, followed by five years supervised release. The court also ordered that Rodriguez was liable, along with the other defendants, for approximately $2.4 million in proceeds and nearly $56,000 in money laundering proceeds.
Operation Highline Crystal Highway is a major, multi-agency drug investigation first launched in late 2013. Law enforcement discovered a large-scale drug and firearm trafficking organization in north central Montana and beyond, which included suppliers out of Los Angeles, routinely bringing pounds of meth to Great Falls. Once in Great Falls, the meth would be distributed in Great Falls, Havre, Montana and Butte, Montana. In the final arrest that took place outside a Great Falls restaurant, law enforcement found one defendant with a loaded 9 mm semi-automatic pistol in his waistband, as well as a loaded .40 caliber, semi-automatic pistol in one of the take out bags with approximately 70 rounds of ammunition. Agents also seized approximately five pounds of meth from the defendant’s hotel room. The DEA tested the meth and its purity level was 100 percent. Meth seized during earlier parts of the operation also resulted in extremely high purity levels—ranging from 97 to 100 percent.
Law enforcement seized 25 guns, 19 of which were handguns and monetary judgments against defendants totaling approximately $2.4 million. Based on evidence collected during the investigation, other guns discussed by defendants or used in trade for drugs, but not recovered, included the FN Five Seven (referred to as the “Cop Killer”), AR-15 and AK-47. These weapons were likely attractive to this group because they are capable of piercing body armor. A large-caliber handgun, the Desert Eagle .50 caliber pistol, was also seized.
“These convictions serve to put criminals on notice that if you bring illegal drugs into this community, we will employ whatever means necessary to find you and bring you to justice, wherever you are,” said Police Chief David Bowen of the Great Falls Police Department.
To assist in investigating the Great Falls meth influx, law enforcement began to use a variety of investigative techniques, including physical surveillance, obtaining phone records, financial documents and search warrants in order to ascertain the location information on cellular phones and vehicles and utilizing undercover agents to infiltrate the organization. Over the course of the investigation, agents obtained 49 search warrants and a wiretap to monitor phone calls and the location of suspects.
A Montana grand jury ultimately indicted 20 defendants responsible for the drug trafficking organization. Nineteen of the defendants pleaded guilty and one was convicted at trial.
The case was prosecuted by Assistant U.S. Attorneys Jessica Betley and Tara Elliott of the District of Montana. The case was investigated by the Russell County, Montana, Drug Task Force, which includes representation from the Great Falls Police Department, Cascade County, Montana, Sheriff’s Office, Teton County, Montana, Sheriff’s Office, the DEA, U.S. Border Patrol, Homeland Security Investigations and the Bureau of Alcohol, Tobacco and Firearms. The task force also collaborated with the Havre Tri-Agency Task Force, IRS, the Montana Division of Criminal Investigation, Montana National Guard Counter Drug Task Force, the California Highway Patrol and the Orange County, California, Sheriff’s Office.
Montana Drug Operation Convicts 20 Defendants, Seizes 25 Guns and More Than Half a Million Dollars in MethRead the Press Release
The U.S. Attorney’s Office announces today the completion of a Montana operation that convicted 20 defendants for methamphetamine, firearm and money laundering charges, resulting in the seizure of more than half a million dollars worth of meth. Operation Highline Crystal Highway joined more than a dozen law enforcement agencies in Montana and California and resulted in the seizure of an estimated 13 pounds of meth, and also identified another estimated 50 pounds of meth involved in the drug conspiracy. Law enforcement also seized 25 guns as part of the operation. The guns were either traded directly for meth or traded as payment for debt owed for meth. The defendants are also responsible for a monetary judgment totaling approximately $2.4 million for the money gained from the methamphetamine trafficking conspiracy, which includes nearly $56,000 in money laundering proceeds.
“This multi-agency collaboration is a testament to the power of strength in numbers,” said U.S. Attorney Michael W. Cotter of the District of Montana. “This operation dismantled an acute and violent threat to the people of Great Falls, Montana, and surrounding communities and I am pleased to announce the conviction of the 20th defendant in this operation.”
“It was a great investigative effort between local, state and federal agencies targeting a very significant drug distribution network in the Great Falls area and a Mexican source of supply based in California,” said Resident Agent in Charge Joe Kirkland of the Drug Enforcement Administration (DEA). “By dismantling a criminal organization of this size, the task force has had a huge impact on the distribution of methamphetamine in Montana.”
The 20th defendant who was sentenced today in Great Falls was Joshua Alberto Rodriguez, 29, of Los Angeles, California. He was sentenced after pleading guilty to crimes involving methamphetamine, firearm and money laundering conspiracies. U.S. District Court Judge Brian Morris of the District of Montana sentenced Rodriguez to over 22 years in prison, followed by five years supervised release. The court also ordered that Rodriguez was liable, along with the other defendants, for approximately $2.4 million in proceeds and nearly $56,000 in money laundering proceeds.
Operation Highline Crystal Highway is a major, multi-agency drug investigation first launched in late 2013. Law enforcement discovered a large-scale drug and firearm trafficking organization in north central Montana and beyond, which included suppliers out of Los Angeles, routinely bringing pounds of meth to Great Falls. Once in Great Falls, the meth would be distributed in Great Falls, Havre, Montana and Butte, Montana. In the final arrest that took place outside a Great Falls restaurant, law enforcement found one defendant with a loaded 9 mm semi-automatic pistol in his waistband, as well as a loaded .40 caliber, semi-automatic pistol in one of the take out bags with approximately 70 rounds of ammunition. Agents also seized approximately five pounds of meth from the defendant’s hotel room. The DEA tested the meth and its purity level was 100 percent. Meth seized during earlier parts of the operation also resulted in extremely high purity levels—ranging from 97 to 100 percent.
Law enforcement seized 25 guns, 19 of which were handguns and monetary judgments against defendants totaling approximately $2.4 million. Based on evidence collected during the investigation, other guns discussed by defendants or used in trade for drugs, but not recovered, included the FN Five Seven (referred to as the “Cop Killer”), AR-15 and AK-47. These weapons were likely attractive to this group because they are capable of piercing body armor. A large-caliber handgun, the Desert Eagle .50 caliber pistol, was also seized.
“These convictions serve to put criminals on notice that if you bring illegal drugs into this community, we will employ whatever means necessary to find you and bring you to justice, wherever you are,” said Police Chief David Bowen of the Great Falls Police Department.
To assist in investigating the Great Falls meth influx, law enforcement began to use a variety of investigative techniques, including physical surveillance, obtaining phone records, financial documents and search warrants in order to ascertain the location information on cellular phones and vehicles and utilizing undercover agents to infiltrate the organization. Over the course of the investigation, agents obtained 49 search warrants and a wiretap to monitor phone calls and the location of suspects.
A Montana grand jury ultimately indicted 20 defendants responsible for the drug trafficking organization. Nineteen of the defendants pleaded guilty and one was convicted at trial.
The case was prosecuted by Assistant U.S. Attorneys Jessica Betley and Tara Elliott of the District of Montana. The case was investigated by the Russell County, Montana, Drug Task Force, which includes representation from the Great Falls Police Department, Cascade County, Montana, Sheriff’s Office, Teton County, Montana, Sheriff’s Office, the DEA, U.S. Border Patrol, Homeland Security Investigations and the Bureau of Alcohol, Tobacco and Firearms. The task force also collaborated with the Havre Tri-Agency Task Force, IRS, the Montana Division of Criminal Investigation, Montana National Guard Counter Drug Task Force, the California Highway Patrol and the Orange County, California, Sheriff’s Office.
Federal Operation Convicts Nine Montanans of More Than Half a Million Dollars in Social Security FraudRead the Press Release
HELENA – Montana U.S. Attorney Michael Cotter announced today the culmination of a federal operation that found nine Montanans engaged in Social Security fraud. Dubbed “Operation Save our Social Security,” Operation S.O.S. uncovered approximately a half-million dollars in fraudulent payments to individuals in Montana, which occurred when the individuals provided false information or made misrepresentations on their paperwork for Supplemental Security Income (SSI), which also impacts eligibility for other federal assistance. In total, the operation uncovered approximately $390,000 in Social Security fraud, $107,288 in Medicaid fraud, and $34,500 in Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) fraud. The individuals have been ordered to pay back the money they stole, including the final individual, Caroline Bighair, who was sentenced today to pay back $23,424 and to three years of supervised release. One recipient of the federal benefits agreed to pay back the money under an agreement with the U.S. Attorney’s Office due to personal circumstances.
“Supplemental Security Income relies on the truthfulness and personal integrity of the people who apply for and receive it,” said Mike Cotter, Montana U.S. Attorney. “When people get greedy and lie to the government in order to get more money than they deserve, the people who actually qualify and need the money to survive are harmed.”
“These individuals repeatedly lied, cheated and stole from some of the most vulnerable residents of Montana,” said Wilbert Craig, Special Agent in Charge of the Social Security Administration/Office of Inspector General Denver Field Division. “In many instances, the victims were their own family and left to fend for themselves. These are real crimes, impacting real lives, and extending beyond the victims to every U.S. taxpayer. I am proud of our combined efforts with the U.S. Attorney’s Office.”
Known as Supplemental Security Income (SSI), the money is drawn from general federal tax revenue and is designed to help aged, blind and disabled citizens who have little or no income. SSI provides cash to meet basic needs for food, clothing and shelter. Applications for Supplemental Security Income also impact eligibility for other federal monies, including Medicaid, survivor benefits, and Supplemental Nutrition Assistance Program (SNAP), also known as food stamps.
The following individuals were convicted as part of the operation: Caroline Big Hair, Vicky Blair, Tonya Brackett, Meghan Gontz, Nelson Grandchamp, Earline Pritchard, Georgia Wetsit, Bonnie Wingo. Another individual agreed to pay back the money through a diversion program due to personal circumstance. Examples of fraud include misrepresentations about whether a recipient was married, the composition of a recipient’s household, and how much money the recipient was making as income. Those misrepresentations directly impacted whether or not the individuals were eligible to receive federal money which, in some cases, was in excess of $1,000 per month from the federal government.
The operation was a collaborative effort between the Montana U.S. Attorney’s Office, the Social Security Administration, and the Office of Inspector General. If you suspect that someone is fraudulently receiving federal money, call to report it at 1-800-269-0271 or log on to http://oig.ssa.gov/report.
Federal Operation Convicts Nine Montanans of More Than Half a Million Dollars in Social Security FraudRead the Press Release
U.S. Attorney Michael W. Cotter for the District of Montana announced today the culmination of a federal operation that found nine Montanans engaged in Social Security fraud. Dubbed “Operation Save our Social Security,” Operation S.O.S. uncovered approximately a half-million dollars in fraudulent payments to individuals in Montana, which occurred when the individuals provided false information or made misrepresentations on their paperwork for Supplemental Security Income (SSI), which also impacts eligibility for other federal assistance. In total, the operation uncovered approximately $390,000 in social security fraud, $107,288 in Medicaid fraud and $34,500 in Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) fraud. The individuals have been ordered to pay back the money they stole, including the final individual, Caroline Bighair, who was sentenced today to pay back $23,424 and to three years of supervised release. One recipient of the federal benefits agreed to pay back the money under an agreement with the U.S. Attorney’s Office due to personal circumstances.
“Supplemental Security Income relies on the truthfulness and personal integrity of the people who apply for and receive it,” said U.S. Attorney Cotter. “When people get greedy and lie to the government in order to get more money than they deserve, the people who actually qualify and need the money to survive are harmed.”
“These individuals repeatedly lied, cheated and stole from some of the most vulnerable residents of Montana,” said Special Agent in Charge Wilbert Craig of the Social Security Administration/Office of Inspector General Denver Field Division. “In many instances, the victims were their own family and left to fend for themselves. These are real crimes, impacting real lives, and extending beyond the victims to every U.S. taxpayer. I am proud of our combined efforts with the U.S. Attorney’s Office.”
Known as Supplemental Security Income (SSI), the money is drawn from general federal tax revenue and is designed to help aged, blind and disabled citizens who have little or no income. SSI provides cash to meet basic needs for food, clothing and shelter. Applications for Supplemental Security Income also impact eligibility for other federal monies, including Medicaid, survivor benefits, and SNAP, also known as food stamps.
The following individuals were convicted as part of the operation: Caroline Big Hair, Vicky Blair, Tonya Brackett, Meghan Gontz, Nelson Grandchamp, Earline Pritchard, Georgia Wetsit, Bonnie Wingo. Another individual agreed to pay back the money through a diversion program due to personal circumstance. Examples of fraud include misrepresentations about whether a recipient was married, the composition of a recipient’s household, and how much money the recipient was making as income. Those misrepresentations directly impacted whether or not the individuals were eligible to receive federal money which, in some cases, was in excess of $1,000 per month from the federal government.
The operation was a collaborative effort between U.S. Attorney’s Office for the Distrcit of Montana, the Social Security Administration and the Office of Inspector General. If you suspect that someone is fraudulently receiving federal money, call to report it at 1-800-269-0271 or log on to http://oig.ssa.gov/report.
Information: Federal Court ArraignmentsRead the Press Release
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 9, 2015, and entering pleas of Not Guilty were:
- JOHN DAVID HUSKEY, a 43-year-old resident of Billings, appeared on charges of wire fraud. If convicted of the most serious charges contained in the indictment, HUSKEY 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. 15-34
- MONICA LIMBERHAND, a 34-year-old resident of Lame Deer, appeared on charges of assault on a federal officer. If convicted of the charge contained in the indictment, LIMBERHAND 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. 15-64
Appearing before U.S. Magistrate Lynch in Missoula on June 8, 2015 and entering pleas of Not Guilty were:
- ERIC SCOTT NEWMAN, a 38-year-old resident of Belgrade, appeared on charges of conspiracy to distribute heroin and possession with intent to distribute heroin. If convicted of the most serious charge contained in the indictment, NEWMAN faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Missouri River Drug Task Force and the Federal Bureau of Investigation. PACER Case Reference. 15-25
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.
Kentucky Man Sentenced in Missoula to 15 Years in Prison for Child Porn CrimeRead the Press Release
MISSOULA – Ryan Hatfield, 25, of Mount Washington, Kentucky was sentenced today to 15 years in federal prison, followed by ten years of supervised release, for conspiracy to advertise child pornography. Hatfield was also required to forfeit his computer and hard drives that were used to commit the crime. Chief U.S. District Court Judge Dana Christensen sentenced Hatfield following a March 4, 2015, change of plea hearing, in which Hatfield pleaded guilty to the offense.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have proven that an invitation-only online bulletin board, referred to as Dark Moon, was created in 2011. It allowed members to advertise and exchange images of child pornography. Beginning in approximately April 2012, Hatfield became a member of the bulletin board. He made posts on the board and requested child pornography from others on the Dark Moon bulletin board. He also responded to and commented on posts of child pornography on the board. Forensic analysis revealed that he used his computer and two external hard drives to facilitate the commission of the offense.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
Assistant United States Attorney Cyndee Peterson prosecuted this case along with Maureen Cain, of the U.S. Department of Justice Child Exploitation & Obscenity Section. Because there is no parole in the federal system, Hatfield will have to serve at least 85% of his sentence before he is released from prison.
Montana U.S. Attorney's Office Receives National Award for Guardians ProjectRead the Press Release
WASHINGTON, D.C. – Department of Health and Human Services Inspector General Daniel R. Levinson recognized Montana’s U.S. Attorney, Mike Cotter, with the agency’s prestigious Inspector General's Award for Excellence for his efforts and the efforts of his office in combating corruption in federal grants and contracts with the Guardians Project. The Guardians Project involves a multi-agency strike force led by the agents of the Offices of Inspector General for Interior and Health and Human Services, the FBI and the IRS. Other law enforcement agencies that have contributed to the success of the Guardians Project include agents from the Offices for Inspector General from Education, Housing and Urban Development, Agriculture, Homeland Security, Justice, the Environmental Protection Agency and investigators from various tribal governments. U.S. Attorney Cotter received the award at the Cohen Federal Building in Washington, D.C. on Tuesday, June 9.
In accepting the award, U. S. Attorney Cotter was quick to acknowledge and applaud the hard work and talent of those attached to the Guardians Project. “All the honor belongs to the investigators and prosecutors who have trudged through the muck and mire of corrupt officials, greedy contractors, and opportunistic government employees,” he said. “Agents are on the road for weeks and away from their homes and families to root out corruption in Montana and to make the homes and families of our tribal communities better. They make the sacrifice and it is they that should receive the awards, the acknowledgement, and the gratitude for a job truly well done.”
"Our office is proud to present this award to the U.S. Attorney for this unique and successful partnership,” said Gerald Roy, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services, Kansas City Region. “The dedicated public servants of the Guardians Project have worked tirelessly to keep our federal programs solvent and bring those who steal from them to justice. I commend their diligent work.”
Agents working for the Inspectors General specialize in the investigation of fraud and corruption, and other forms of abuse of taxpayer monies, and possess specialized knowledge of federal programs. U.S. Attorney Mike Cotter supported the program, which was designed and launched by his Economic Crimes Unit attorneys in 2011, “as a way to do more than hold a particular defendant accountable, but also as a way to find errors in oversight and management of federal tax dollars that could lead to better government on the front end of the grants and contracts process.”
Since the Guardians Project began obtaining indictments from the federal grand jury in late 2012, thirty eight indictments and two informations have been filed charging 81 defendants and resulting in over 100 felony convictions for crimes including conspiracy, bribery, fraud, embezzlement, extortion, obstruction of justice, money laundering, blackmail, and tax evasion. The Guardians Project created a partnership that merged the expertise and oversight responsibilities of the various Inspectors General with the resources and traditional public corruption investigation responsibility of the Federal Bureau of Investigation and the Internal Revenue Service.
Notable Guardians prosecutions are the convictions of six defendants associated with the Po’Ka Program for disadvantaged youth on the Blackfeet reservation, the prosecution and conviction of Tony Belcourt, Chief Executive Officer of the Chippewa Cree Construction Corporation, and former tribal Chairmen John Chance Houle and Bruce Sunchild of the Rocky Boy’s reservation. Eight members of the Dale Old Horn family were convicted in 2012 and 2013 for their role in a scheme to defraud the Crow Tribe using positions with the Crow Tribe Historic Preservation Office. The former Chief Executive Officer of the Rocky Boy Health Clinic, Fawn Tadios, and former Clinic Finance Manager Theodora Morsette were convicted by juries in 2014 and 2015, respectively. Another Health Clinic CEO, Tim Rosette, has been indicted on an assortment of bribery and theft charges, and the most recent acting CEO, Darrin Miller, has been indicted for tax evasion. Agents of the Guardians Project uncovered a $300,000 embezzlement in the Blackfeet Tribe’s TANF Program, and secured welfare fraud convictions of two employees of the Fort Belknap Tribe’s public assistance office. Agents also secured the conviction at a jury trial earlier this year of John Lyon, the State Director of the Bureau of Land Management for the Eastern States Region for paying his Deputy Director for eight months—about $112,000—even though that deputy had left his BLM job in July 2012 and began working for the Chippewa Cree Tribe in Montana. That former Deputy Director, Larry Denny, was also convicted for taking a federal paycheck through March of 2013 when the scheme was discovered.
Washington Man Ordered to Forfeit over $278K and Sentenced to More Than Six Years in Prison for Meth CrimeRead the Press Release
MISSOULA – The U.S. Attorney’s Office for the District of Montana announces that Mark Irvin Roberts, 50, of Newport, Washington, was sentenced on June 4, 2015, to over six years in prison and to forfeit more than $278,000 in connection with his federal conviction for conspiring to distribute methamphetamine. Chief District Court Judge Dana Christensen sentenced Roberts to 78 months in prison, five years of supervised release, and $5,000 in restitution, in addition to forfeiting $278,370 in connection with the offense.
Roberts entered his guilty plea to conspiracy to distribute methamphetamine on February 19, 2015. In an offer of proof, Assistant United States Attorney Tara Elliott told the Court that on February 5, 2013, two co-defendants went to Idaho and purchased two ounces of methamphetamine from Roberts. The co-defendants returned to Montana with the methamphetamine and were eventually apprehended. One of the co-defendants had been purchasing methamphetamine from Roberts for approximately six weeks. One of the co-defendants bought approximately eight ounces of methamphetamine from Roberts for redistribution in Montana.
On February 9, 2013, a deal was set up to purchase additional methamphetamine from Roberts. Roberts traveled to Montana to deliver the methamphetamine, but was intercepted by law enforcement. Three ounces of methamphetamine was recovered from Roberts. Laboratory analysis was conducted on the two ounces purchased from Roberts, and the results showed more than 50 grams of pure methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Tara Elliott and investigated by the Northwest Drug Task Force and Homeland Security Investigations.
Information: Federal Court ArraignmentsRead the Press Release
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 3, 2015, and entering pleas of Not Guilty were:
- ALLEN JOSEPH HARN, a 23-year-old resident of Miles City, 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 drug trafficking crime. If convicted of the most serious charges contained in the indictment, HARN faces life in prison, $1,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. PACER Case Reference. 15-56
- COLTON WAYNE NEAL, a 24-year-old resident of Lodge Grass, appeared on charges of possession of a firearm not registered in national firearms registration and transfer record. If convicted of the charge contained in the indictment, NEAL 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. 15-52
Appearing before U.S. Magistrate Johnston in Great Falls on June 2, 2015 and entering pleas of Not Guilty were:
- JAMES LEROY EMERSON, a 66-year-old resident of Browning, appeared on charges of theft of federally provided welfare benefits by fraud, federal welfare assistance fraud, and theft from an Indian tribal organization. If convicted of the most serious charges contained in the indictment, EMERSON faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the US Department of Health and Human Services Office of Inspector General. PACER Case Reference. 15-22
- CLORECE FAYE KICKING WOMAN, a 55-year-old resident of Browning, 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, KICKING WOMAN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the US Department of Health and Human Services Office of Inspector General. PACER Case Reference. 15-22
Appearing before U.S. Magistrate Ostby in Billings on June 1, 2015 and entering pleas of Not Guilty were:
- JOSHUA LEE HELM, a 34-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, HELM faces life in prison, $5,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation Task Force, Drug Enforcement Administration and Homeland Security Investigations. PACER Case Reference. 15-57
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.
Wadda Sentenced to 10 Years in Prison for Role in 2013 Northern Cheyenne MurderRead the Press Release
BILLINGS – The United States Attorney’s Office announced that today, in U.S. District Court in Billings, Garrett Wadda was sentenced to 10 years in federal prison for his role in a 2013 murder on the Northern Cheyenne Indian Reservation. Wadda, 35, was sentenced by U.S. District Judge Susan Watters to 120 months in custody followed by 3 years of supervised release in connection with his guilty plea to accessory after the fact to murder. Wadda’s sentencing follows the February 2015 sentencing of his common-law wife, Eugenia Ann Rowland, who pleaded guilty to second degree murder for the crime and was sentenced to 22 years in prison.
Assistant U.S. Attorney Lori Suek told the court that on the night of July 3, 2013, the victim was with Wadda and Rowland. The victim was last seen early the following morning getting into her car. Surveillance footage from a business captured Rowland getting into the front passenger seat of the car. Investigators learned Wadda was in the backseat of the car, by himself.
Wadda and Rowland were interviewed multiple times by law enforcement the week following the victim’s disappearance. Both their accounts of what happened changed over the course of the interviews. The victim’s body was found on July 8, 2013, near the Lame Deer rodeo grounds. Before the victim’s body was found, Wadda and Rowland left the Northern Cheyenne reservation to stay with relatives near the Wind River Reservation in Wyoming. Law enforcement officers learned that Wadda had borrowed a car from a family member and returned the car with a very strong odor emanating from the back seat. After a search of the car, the victim’s DNA was found on a rear seat cushion taken from the car.
“The defendant’s actions were callous and dehumanizing,” said Montana U.S. Attorney Mike Cotter. “This was a senseless murder of a young woman. We are grateful for law enforcement’s teamwork in bringing both defendants to justice.”
The investigation was a collaborative effort between the Bureau of Indian Affairs, Federal Bureau of Investigation, Lake County Sheriff’s Office, Flathead Tribal Police Department, Wind River Police Department, Rapid City Police Department, Pine Ridge Criminal Investigations, BIA Rapid City Drug Unit and Pennington County Sheriff’s Office.
Jury Convicts Fort Peck Man of Raping a Sleeping Woman and Making False Statements to Federal AgentsRead the Press Release
GREAT FALLS – The United States Attorney’s Office announces that on June 2, 2015, a jury convicted Brandon Ray Buckles, 28, of Poplar, Montana, on all charges stemming from a rape on the Fort Peck Indian Reservation. The jury found Buckles guilty of Sexual Abuse and two False Statements to Federal Agents. Buckles faces up to life in prison, up to $250,000 in fines, and up to lifetime supervised release for the rape. For the false statements, he faces up to eight years in prison, a $250,000 fine and three years of supervised release. The false statements related to his claims that he never touched the victim at any time during the date of the rape. The physical evidence showed otherwise.
At trial, Assistant United State Attorney Ryan Weldon presented evidence that Buckles was drinking with the victim and various other friends at a house party in Poplar, Montana. The victim ultimately walked into her bedroom and fell asleep next to another man. Buckles entered the same bedroom to look for his cell phone, but he saw an opportunity to rape the victim. He walked over to the victim, pulled down her pants, and raped her until she ultimately woke and screamed at him to stop. Buckles pulled up his pants, and left the house. The male in the bed next to the victim never awoke during the rape because he was too intoxicated. The victim immediately reported the rape. Evidence from the victim was tested, and Buckles’ DNA was identified as a match. In contrast, Buckles told agents that he never touched the victim at any point.
Sentencing is before U.S. District Judge Brian M. Morris in Great Falls, Montana, on September 8, 2015, at 10:30 a.m. This case was prosecuted by Assistant U.S. Attorney Ryan Weldon and investigated by the Federal Bureau of Investigation and local law enforcement.
Great Falls Man Sentenced to 12 Years for Making Meth in His Grandfather's GarageRead the Press Release
GREAT FALLS—Christopher Stefani, 47, of Great Falls, was sentenced today for manufacturing methamphetamine in his grandfather’s garage, which led to an explosion. Great Falls United States District Court Judge Brian Morris sentenced Stefani to 144 months in prison, followed by a term of 3 supervised release.
Stefani previously pleaded guilty to manufacturing methamphetamine. In an Offer of Proof filed by the government, and accessible through PACER, the government stated that if the case had proceeded to trial, it would have proven that on July 8, 2014,
an explosion occurred while Stefani manufactured methamphetamine in his 94-year-old grandfather’s garage in Great Falls, Montana. This methamphetamine laboratory was not reported to police until a few days later after a caregiver for Stefani’s grandfather realized someone had been making methamphetamine in the garage. At the time of the explosion, a neighbor had spotted a white cloud of smoke come out of the garage. Immediately after the explosion, the neighbor saw Stefani drive quickly down the back alley.
The caretaker went into the garage during the evening of July 9, 2014. She saw a burn mark on the floor, as well as salt and Coleman fuel. She did not want to disrupt Stefani’s elderly grandfather from sleeping that night, so she called police the next day. The caretaker told detectives that Stefani used his grandfather’s garage as his personal work area, and came and went as he pleased. She said Stefani had last been in the garage on July 8, 2014, and she spoke to him that same day. Stefani had reported he severely burned his leg on a motorcycle and was in a lot of pain.
During the investigation, detectives found a one gallon can of Coleman Fuel had caught fire and scorched the surrounding area. Detectives also found four Walgreens receipts for pseudoephedrine. They recovered a bloody bandage, coffee filters, battery tops, tubing, a salt container, and liquid fire sulfuric acid, which were all items consistent with manufacturing methamphetamine. Detectives found gas generators with tubing coming out of the lids and a white substance in the coffee filters. The DEA Laboratory analyzed items from the scene and concluded they contained methamphetamine.
This case was prosecuted by Assistant United States Attorney Jessica Betley. Because there is no parole in the federal system, Stefani will have to serve at least 85% of his sentence before he is released from prison. The case was investigated by Russell Country Task Force, which includes law enforcement from the Great Fall Police Department.
Butte Man Sentenced to 7 Years for Distributing Child Porn and Illegal Gun PossessionRead the Press Release
MISSOULA – Robert White, 51, of Butte, was sentenced today in federal court to seven years in prison for distributing child pornography and possessing a firearm that was not registered to him in the national registry. He received seven years for each count, to run concurrent. Chief U.S. District Court Judge Dana Christensen also sentenced White to 10 years supervised release, $4,000 in restitution, and ordered him to forfeit his laptop computer and the firearm.
White’s crime was discovered when an agent with the Internet Crimes Against Children Task Force found that White was writing sexually explicit phrases regarding prepubescent children within an Internet relay channels (IRC) and posting links to files of child pornography within IRC. The agent also determined White was utilizing a peer-to-peer (P2P) client to receive video and image files of children engaged in sexually explicit conduct. White also distributed child pornography on more than a dozen occasions.
The agent determined the IP address for all of these distributions was assigned to White at his residence in Butte, Montana. Agents obtained a search warrant for White’s residence in Butte. Agents executed the warrant and White’s laptop was seized. The laptop was examined and a forensic examined located image and video files depicting child pornography and confirmed his previous distribution of child pornography.
In relation to the firearm crime, a 2014 investigation determined that White was also in possession of a 12 gauge shotgun with a length of approximately 19 inches and a barrel length approximately 13.5 inches. The firearm was illegal unless registered to him in the Nation Firearms Registration and Transfer record. White had not registered the firearm.
This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Internet Crimes Against Children Task Force.
North Dakota and Montana U.S. Attorneys Announce Creation of Bakken Organized Crime Strike Force in Oil PatchRead the Press Release
Federal and state law enforcement officials from North Dakota and Montana have announced the creation of the Bakken Organized Crime Strike Force. Acting U.S. Attorney Chris Myers for the District of North Dakota, U.S. Attorney Michael W. Cotter for the District of Montana joined Attorney General Wayne Stenehjem of North Dakota to announce the Strike Force. Director Bruce Ohr for the Organzied Crime Drug Enforcement Task Forces (OCDETF) was present for the announcement. The multi-agency effort is aimed at identifying, targeting and dismantling organized crime in the Bakken, including human trafficking, drug and weapons trafficking, as well as white collar crimes.
The announcement follows the 2013 creation of Project Safe Bakken, a collaborative law enforcement program in Montana and North Dakota that joins federal, state and tribal law enforcement to battle criminal activity in the Bakken. The Bakken is a vast swatch of oil-rich land spanning approximately 200,000 square miles from North Dakota to eastern Montana and north to Canada. It has resulted in dramatic influxes in the population as well as serious crimes, including the importation of pure methamphetamine from Mexico and multi-million dollar fraud and environmental crimes.
Strike force members will be based out of Bismarck, Dickinson, Minot and Williston, North Dakota, and work with designated prosecutors to staff and prosecute cases.
“The strike force will have the capability of not only dismantling local criminal organizations in the Bakken, but also to take out the national and international components of these organizations wherever they may be located,” said Acting U.S. Attorney Myers. “The strike force will take a regional approach to a regional problem, coordinating with Montana law enforcement. We value the strong partnerships already developed with Montana U.S. Attorney Mike Cotter and Montana Attorney General Tim Fox in this fight.”
In his remarks, U.S. Attorney Cotter announced that Project Safe Bakken has already resulted in 210 federal narcotic prosecutions in Montana, in addition to numerous other prosecutions involving complex financial fraud, worker endangerment and the transportation of hazardous materials.
“The Bakken’s criminal impact transcends borders and so should our law enforcement response,” said U.S. Attorney Cotter. “The strike force is a welcome addition to our existing multi-jurisdictional law enforcement efforts in the region.”
Director Ohr for OCDETF said he “fully supports the efforts being made in North Dakota and Montana to bring law enforcement agencies and prosecutors together to address the crime problems arising from the oil boom in the Bakken.”
Federal officials in Montana and North Dakota continue to expand their law enforcement presence in the region. The Federal Bureau of Investigation is building a new office in Williston. Once completed, this office will house a federally-funded Safe Streets Task Force. The Federal Bureau of Investigation has also assigned two special agents and two state agents sworn as federal agents to Sidney, Montana, to investigate crime in both Montana and North Dakota.
Montana and North Dakota U.S. Attorneys Announce Creation of Bakken Organized Crime Strike Force in Oil PatchRead the Press Release
BISMARCK, NORTH DAKOTA – Federal and state law enforcement officials from Montana and North Dakota have announced the creation of the Bakken Organized Crime Strike Force. Montana U.S. Attorney Mike Cotter and Acting U.S. Attorney for North Dakota Chris Myers, joined North Dakota Attorney General Wayne Stenehjem to announce the Strike Force. OCDETF Director Bruce Ohr was present for the announcement. The multi-agency effort is aimed at identifying, targeting and dismantling organized crime in the Bakken, including human trafficking, drug and weapons trafficking, as well as white collar crimes.
The announcement follows the 2013 creation of Project Safe Bakken, a collaborative law enforcement program in Montana and North Dakota that joins federal, state and tribal law enforcement to battle criminal activity in the Bakken. The Bakken is a vast swatch of oil-rich land spanning approximately 200,000 square miles from North Dakota to eastern Montana and north to Canada. It has resulted in dramatic influxes in the population as well as serious crimes, including the importation of pure methamphetamine from Mexico and multi-million dollar fraud and environmental crimes.
Strike Force members will be based out of Bismarck, Dickinson, Minot and Williston, North Dakota, and work with designated prosecutors to staff and prosecute cases. “The Strike Force will have the capability of not only dismantling local criminal organizations in the Bakken, but also to take out the national and international components of these organizations wherever they may be located,” said Acting North Dakota U.S. Attorney Chris Myers. “The strike force will take a regional approach to a regional problem, coordinating with Montana law enforcement. We value the strong partnerships already developed with Montana U.S. Attorney Mike Cotter and Montana Attorney General Tim Fox in this fight,” he continued.
In his remarks, Montana U.S. Attorney Mike Cotter announced that Project Safe Bakken has already resulted in 210 federal narcotic prosecutions in Montana, in addition to numerous other prosecutions involving complex financial fraud, worker endangerment, and the transportation of hazardous materials. “The Bakken’s criminal impact transcends borders and so should our law enforcement response,” said Mike Cotter, Montana’s U.S. Attorney, “The Strike Force is a welcome addition to our existing multi-jurisdictional law enforcement efforts in the region.”
OCDETF Director Bruce Ohr said he “fully supports the efforts being made in North Dakota and Montana to bring law enforcement agencies and prosecutors together to address the crime problems arising from the oil boom in the Bakken.” Federal officials in Montana and North Dakota continue to expand their law enforcement presence in the region. The Federal Bureau of Investigation is building a new office in Williston. Once completed, this office will house a federally-funded Safe Streets Task Force. The Federal Bureau of Investigation has also assigned two special agents and two state agents sworn as federal agents to Sidney, Montana, to investigate crime in both Montana and North Dakota.
Information: Federal Court ArraignmentsRead the Press Release
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 May 29, 2015, and entering pleas of Not Guilty were:
- LEVI MICHAEL BIERWILER, a 39-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, BIERWILER faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation Task Force, Drug Enforcement Administration and Homeland Security Investigations. PACER Case Reference. 15-53
- JAMES WARD PRICE, a 29-year-old resident of Las Vegas, Nevada, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, PRICE faces life in prison, $5,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation HIDTA and Homeland Security Investigations. PACER Case Reference. 15-58
- HOPE MARGIE RATHBUN, a 36-year-old resident of Billings, appeared on charges of conspiracy 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, RATHBUN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation HIDTA and Homeland Security Investigations. PACER Case Reference. 15-59
Appearing before U.S. Magistrate Lynch in Missoula on May 28, 2015, and entering pleas of Not Guilty were:
- BRUCE EDWARD DENNISON, a 52-year-old resident of Bozeman, appeared on charges of conspiracy to distribute heroin and possession with intent to distribute heroin. If convicted of the most serious charge contained in the indictment, DENNISON faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Missouri River Drug Task Force and the Federal Bureau of Investigation. PACER Case Reference. 15-25
- MARK DAVID SMITH, a 37-year-old resident of Bozeman, appeared on charges of possession of a firearm not registered in the national firearms registration and transfer record. If convicted of the charge contained in the indictment, SMITH 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 Montana State University Police Department. PACER Case Reference. 15-23
Appearing before U.S. Magistrate Johnston in Great Falls on May 26, 2015 and entering pleas of Not Guilty were:
- DARIN LEE MILLER, a 42-year-old resident of Havre, appeared on charges of income tax evasion. If convicted of the most serious charge contained in the indictment, MILLER faces 5 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. 15-32
Appearing before U.S. Magistrate Ostby in Billings on May 26, 2015 and entering pleas of Not Guilty were:
- ELIJAH LEE ROCK, a 32-year-old resident of Hardin, appeared on charges of assault resulting in substantial bodily injury of a dating partner, assault with a dangerous weapon, use and discharge of a firearm during and in relation to a crime of violence, robbery involving motor vehicle, and use and brandish a firearm during and in relation to a crime of violence. If convicted of the most serious charges contained in the indictment, ROCK 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. 15-60
Appearing before U.S. Magistrate Ostby in Billings on May 20, 2015 and entering pleas of Not Guilty were:
- GORDON DEAN SMALL, a 43-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, SMALL faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs and the Billings Police Department. PACER Case Reference. 15-48
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.
Washington Man Pleads Guilty in Missoula to Drug and Prostitution CrimesRead the Press Release
MISSOULA – Yusuf Reeves, 47, of Spokane Valley, Washington, pleaded guilty today in Missoula federal court to drug and racketeering-related charges. He faces a mandatory prison sentence of five to forty years, up to five million dollars in fines, and at least four years supervised release for the drug crime. For the racketeering crime involving prostitution, he faces up to five years in prison, a $250,000 fine, and three years of supervised release. U.S. Magistrate Court Judge Jeremiah Lynch presided over the change of plea and set sentencing for September 17, 2015 in Missoula. Reeves was detained pending sentencing.
Yusuf pleaded guilty to one count of conspiracy to possess with the intent to distribute and to distribute methamphetamine and heroin as well as one count of interstate travel in aid of racketeering. In an Offer of Proof filed with the Court, federal prosecutor Cyndee Peterson stated that Reeves received methamphetamine and heroin from sources in Washington state and elsewhere. With several others, Reeves conspired to bring heroin and methamphetamine to Missoula County for distribution, and did so over a ten-month period in 2014. During the summer of 2014, Reeves also travelled from Spokane, Washington, to Missoula, Montana, with five others to promote prostitution in violation of Montana law. They rented hotel rooms, or directed others to rent rooms, in Missoula to facilitate those crimes.
This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation, Montana Violent Crime Task Force, Missoula Street Crimes Unit, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
California Man Sentenced in Missoula to 7 Years for Online Child Pornography CrimeRead the Press Release
MISSOULA – Richard Pitts, 27, of Cathedral City, California, was sentenced today to seven years in federal prison, followed by 15 years of supervised release, for conspiracy to distribute child pornography. Pitts was also required to forfeit his computer and hard drive. Chief U.S. District Court Judge Dana Christensen sentenced Pitts following a January 27, 2015, change of plea hearing, in which Pitts pleaded guilty to the offense.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have shown that Pitts became a member of an invitation-only online bulletin board referred to as Dark Moon. Pitts distributed images of child pornography while on Dark Moon in 2012. The Dark Moon bulletin board allowed members to advertise and exchange images of child pornography. The bulletin board was created on or about September 28, 2011.
Eight defendants have been indicted who were involved in the Dark Moon Bulletin Board. This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
Assistant United States Attorney Cyndee Peterson prosecuted this case along with Maureen Cain, of the U.S. Department of Justice Child Exploitation & Obscenity Section. Because there is no parole in the federal system, Pitts will have to serve at least 85% of his sentence before he is released from prison.
Big Fork Man Sentenced for Killing Three Grizzly BearsRead the Press Release
MISSOULA – Dan Wallen, 34, of Bigfork, Montana was sentenced today to $15,000 in restitution, and three years of probation for shooting three grizzly bears at his residence near Bigfork, Montana. Wallen is also required to serve sixty days of his sentence in a pre-release center. United States Magistrate Judge Jeremiah Lynch sentenced Wallen after finding him guilty following a bench trial in March 2015, of three counts of Unlawfully Taking a Threatened Species.
In spring 2014, several grizzly bears were reported in residential areas, which caused state wildlife officials to place electric wire around chicken coops and set traps to relocate bears in the Bigfork, Montana area. The bears had become habituated to human food sources, including dog food, bird feed, chicken feed, and unsecured garbage cans in the area. The bears that Wallen killed had attacked several of Wallen’s chickens the previous night and returned to the chicken coop on the evening of May 27, 2014. When the bears initially returned, Wallen, his wife, children, and family friends were outside. They retreated to the area in and around their house. Wallen used his truck to scare the bears away. He then spoke to a caretaker of a nearby house. He told her that grizzly bears had been killing his chickens and returned to the residence. The caretaker observed the grizzlies later that evening near the residence and scared them away by throwing rocks. She later heard at least three shots from the direction of Wallen’s residence.
Later in the evening, when the bears returned, Wallen shot all three bears. At the time, his family and friends were in or around the house, and the bears were only approaching his chickens. Wallen fired several shots from his .22 rifle at the bears and they ran off. Shortly after Wallen shot the bears, his neighbor discovered one of the bears lying in his driveway and unable to stand due to its injuries. The neighbor contacted Wallen. Concerned about the bear’s serious injuries, the neighbor shot the bear once with a .300 rifle, which killed it. He then reported to law enforcement that he had shot the bear, and a Montana Fish, Wildlife and Parks (MFWP) Bear Biologist was notified.
The Bear Biologist contacted a MFWP Game Warden, who responded to the incident location. Wallen admitted he had shot toward the grizzly with a .22 rifle, hoping to scare it away. Wallen did not report shooting at the other two grizzly bears at that time. On May 28, 2014, the biologist listened to a cell phone message from Wallen’s wife from May 27th. In the message, she stated they were having problems with grizzly bears killing their chickens. He then contacted Wallen’s wife and asked about setting traps to catch the other two grizzlies that were in the area. On May 28, 2014, the biologist went to the Wallen residence to set a trap. While inspecting the area to set a trap, he found another dead grizzly bear in tall grass near the location of the first dead grizzly. Wallen was questioned about the second bear and admitted to firing multiple shots at the three grizzly bears.
On May 29, 2014, Wallen confirmed, in a recorded interview, that the bears had killed a number of his chickens on the night of May 26th and returned to the chicken coop the following evening while his family and friends were in the yard. However, Wallen stated that the bears ignored the children and went to the coop. Wallen drove the bears off in his truck twice and when the three bears returned again, his family and friends were in or near the house and not in immediate danger from the bears. Wallen then used his .22 rifle to shoot in the direction of the bears. He stated that at the time he shot the bears, his family was behind him near the house. Wallen also acknowledged that he knew the bears were grizzlies when he shot them. Wallen testified at trial and provided a different account of the events than his previous statement.
On June 5, 2014, law enforcement agents were notified that the decomposed carcass of a third grizzly bear had been found by a neighbor. Based on examination of the carcass, it was determined that the bear had been dead for approximately a week.
Assistant U.S. Attorney Megan Dishong prosecuted the case, which was investigated by U.S. Fish and Wildlife Service.
Information: Federal Court ArraignmentsRead the Press Release
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 May 21, 2015, and entering pleas of Not Guilty were:
- MICHALENE FAST BUFFALO HORSE, a 61-year-old resident of Browning, 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, FAST BUFFALO HORSE faces 10 years in prison, $250,000 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. 15-23
Appearing before U.S. Magistrate Judge Lynch in Missoula on May 20, 2015, and entering pleas of Not Guilty were:
- JEREMY MICHAEL HANNUM, a 43-year-old resident of Loon Lake, Washington, appeared on charges of felon in possession of a firearm/armed career criminal. If convicted of the charge contained in the indictment, HANNUM 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 and Montana Highway Patrol. PACER Case Reference. 15-09
Appearing before U.S. Magistrate Judge Johnston in Great Falls on May 19, 2015, and entering pleas of Not Guilty were:
- JASON ARNOLD ROHRICH, a 39-year-old resident of Great Falls, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, ROHRICH faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Drug Enforcement Administration and the Russell Country Drug Task Force. PACER Case reference. 15-30
Appearing before U.S. Magistrate Ostby in Billings on May 12, 2015, and entering pleas of Not Guilty were:
- TAJ TESFAYE HAYES, a 38-year-old resident of Oceanside, California, appeared on charges of transportation of a person with intent to engage in criminal sexual activity, interstate travel and use of interstate facility in aid of racketeering and false statements. If convicted of the most serious charges contained in the indictment, HAYES faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation, U.S. Marshals Service, Montana Division of Criminal Investigation and the Billings Police Department. PACER Case Reference. 15-50
Appearing before U.S. Magistrate Ostby in Billings on May 11, 2015, and entering pleas of Not Guilty were:
- JOSEPH LEE BROWN, a 19-year-old resident of Miles City, 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, BROWN faces life in prison, $1,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 15-39
Appearing before U.S. Magistrate Johnston in Great Falls on May 11, 2015, and entering pleas of Not Guilty were:
- CHANLER CHAZE WHITEGRASS, a 32-year-old resident of Browning, appeared on charges of strangulation, assault resulting in substantial bodily injury and assault with a dangerous weapon. If convicted of the most serious charges contained in the indictment, WHITEGRASS 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. 15-31
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.
Glasgow Man Ordered to Pay 6K for Killing Golden EagleRead the Press Release
GREAT FALLS – Keith Morehouse, 60, of Glasgow, Montana, pleaded guilty and was sentenced today in federal court for killing a golden eagle near Glasgow, Montana. U.S. Magistrate Judge John T. Johnston sentenced Morehouse to a $3,000 fine and $3,000 in restitution to the Montana Raptor Conservation Center in Bozeman, Montana. The Center rehabilitates injured birds, and engages in community education, conservation and research. The eagle Morehouse killed was strangled to death in a trap set in violation of state regulations.
Assistant U.S. Attorney Laura Weiss told the Court that Morehouse unlawfully killed the eagle with a snare located about five feet from the bait station in violation of state trapping regulations, which require a 30-foot setback from bait stations visible from above. An examination of the eagle revealed that it had been strangled to death by a loop of wire around its neck that was part of the trap set by Morehouse. Morehouse’s name and contact information was found on a copper tag attached to it. When Morehouse was interviewed by law enforcement he said that he tried not to catch eagles, but it was the cost of doing business. Morehouse added that he’s “out to make money.” Under federal law, a defendant must kill an eagle either knowingly or with wanton disregard for the consequences of his or her act.
The case was investigated by the U.S. Fish and Wildlife Service. Assistant United States Attorney Laura B. Weiss prosecuted the case.
Rodeo Association President Given Six Months for Role in Rocky Boy's Corruption SchemeRead the Press Release
GREAT FALLS – The former president of an Indian rodeo association at Rocky Boy’s was sentenced to six months in federal custody today for his role in a scheme to embezzle monies from Chippewa Cree Rodeo Association accounts. U.S. District Judge Brian Morris ordered Wade Christopher Colliflower, 33, of Box Elder, in connection with his earlier guilty plea of theft from an Indian tribal organization, to serve six months in custody and six months of home confinement, pay $44,750 in restitution, and serve two years of supervised release.
The prosecution told the Court that Colliflower was the President of the Bear Paw Indian Rodeo Association (BPIRA) in 2010. At the same time, John Chance Houle, Vice-Chairman of the Chippewa Cree Business Committee, served as the President of the Chippewa Cree Rodeo Association (CCRA). From 2010 through 2012, Houle and Colliflower used the BPIRA account to extract money from the CCRA account and use the money for their own personal use and benefit. Colliflower was interviewed during the course of the investigation and admitted his role in assisting Houle’s embezzlement of monies from the CCRA by making kick-backs to Houle from payments processed through his separate rodeo association bank account.
On May 25, 2010, for example, Houle wrote a $50,000 check to the BPIRA account, denoted “5 IIFR Rodeos”. That same day Colliflower deposited $43,000 into the BPIRA account and, according to Colliflower, took $7000 in cash which he gave to Houle. The following day Colliflower withdrew $15,007 from the BPIRF account and purchased a $15,000 cashier’s check payable to Havre Ford which was used to purchase a vehicle for Houle’s daughter.
A year later, on May 27, 2011, Colliflower withdrew $22,000 from the CCRA account, converted the funds into a Well’s Fargo cashier’s check, and deposited the whole amount into BPIRA’s checking account. According to Colliflower, by prior agreement, Houle received $7,000, as a result of this transaction.
Between July 7, 2011, and September 9, 2011, Houle wrote two checks off of the CCRA account to the BPIRA account for a total of $37,100. After deposit, Colliflower gave Houle $10,500 and gave Houle’s daughter a check for $7000.
On May 18, 2012, and again on June 5, 2012, Houle wrote three checks directly to Colliflower, two in the amount of $37,500 and one for $25,000. According to Colliflower, of the $100,000 he received from the CCRA account with these payments, he kicked back $30,000 to Houle.
At sentencing, Colliflower claimed that some of the monies paid to Houle were for legitimate purposes, such as the use of Houle’s livestock for rodeo events. Colliflower also claimed that some of the money converted to cash was used to pay expenses, prizes, and other rodeo related costs. The Court ordered Colliflower to pay $44,750 in restitution jointly and severally with any other defendant ordered to pay restitution in the rodeo association embezzlement case. Houle is scheduled to be sentenced on May 28. When restitution is ordered as a “joint and several” obligation, each defendant is responsible for the entire amount but only until the victim has received the entire amount, at which time all defendants have satisfied the restitution portion of the judgment even if one defendant paid more—even substantially more—than the others.
The case was investigated by agents of the Guardians Project, including agents from the Offices of Inspector General for Interior, Health & Human Services and EPA, and the Internal Revenue Service.
Information: Federal Court ArraignmentsRead the Press Release
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 May 6, 2015, and entering please of Not Guilty were:
- MELVIN MOSES LILLEY, III, a 22-year-old resident of Wolf Point, appeared on charges of assault with a dangerous weapon, assault resulting in serious bodily injury, 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, LILLEY 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. 15-16
Appearing before U.S. Magistrate Judge Lynch in Missoula on May 6, 2015, and entering pleas of Not Guilty were:
- CHRISTOPHER KELLY FERRARI, a 40-year-old resident of Kalispell, appeared on charges of possession of a firearm not registered in the national firearms registration and transfer record and felon in possession of firearms. If convicted of the most serious charges contained in the indictment, FERRARI 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 Flathead County Sheriff’s Office. PACER Case Reference. 15-08
- THOMAS AARON WADDLE, a 41-year-old resident of Butte, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, WADDLE 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. 15-24
Appearing before U.S. Magistrate Judge Ostby in Billings on May1, 2015, and entering pleas of Not Guilty were:
- DELVENE MARIE EAGLEMAN, a 38-year-old resident of Lame Deer, 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, EAGLEMAN 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. 15-23
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.
Box Elder Man Gets 20 Years in Prison for Strangulations, Rapes, Stabbing and AssaultsRead the Press Release
GREAT FALLS – Dallas Lawrence, 33, of Box Elder, Montana, was sentenced today to twenty years in prison after a Montana jury convicted him of seven felonies, including two rapes, two strangulations, two assaults with intent to commit murder and assault with a dangerous weapon. In addition to the twenty-year prison sentence, U.S. District Judge Brian Morris also sentenced Lawrence to five years of supervised release. There is no parole in the federal system.
Evidence presented at trial by Assistant United States Attorney Laura Weiss showed that Lawrence and the victim were in a verbally and physically abusive relationship. In September 2013, Lawrence stabbed the victim in her calf. She was found walking around Havre, Montana, and was taken to the ER, where medical personnel observed the stab wound. The victim told medical personnel that her boyfriend had stabbed her in the leg and that she was in an abusive relationship. She said Lawrence had also tried to break her arms and legs to keep her from leaving.
The evidence also showed that in March 2014, Lawrence strangled the same victim with a humidifier cord after asking her, “How do you want me to do you in, fast or slow?” The victim was able to slip two fingers under the cord, but she still couldn’t breathe. She managed to escape the cord. Lawrence continued to control the victim after that by making her stay in her room, and dictating where she went and who she was around. He kept the keys to the car and made threats to her about trying to leave him.
In May 2014, the defendant again strangled the victim after beating her. He asked her again if she wanted to die fast or slow. He gripped both hands around her neck and began to strangle her. She tried to slide away, but he kept strangling her to the point that she blacked out. Lawrence later told her he thought he had killed her and was going to hide her body in a crawlspace until he could find a place to bury it. During the same time period in early summer 2014, Lawrence forced the victim to have sex with him on two occasions.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Laura B. Weiss prosecuted the case.
Information: Federal Court ArraignmentsRead the Press Release
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 Judge Ostby in Billings on April 30, 2015, and entering pleas of Not Guilty were:
- CAROLANN CHAVIS, a 26-year-old resident of Lodge Grass, appeared on charges of assault resulting in substantial bodily injury. If convicted of the most serious charges contained in the indictment, CHAVIS 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. 15-40
- TOMAS ALEXANDER DELAO, a 31-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, DELAO faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, Big Sky Safe Streets Task Force and Eastern Montana HIDTA. PACER Case Reference. 15-42
Appearing before U.S. Magistrate Judge Ostby in Billings on April 29, 2015, and entering pleas of Not Guilty were:
- ZACHARY KYLE AMERICAN HORSE, a 20-year-old resident of Lame Deer, 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, AMERICAN HORSE 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. 15-23
Appearing before U.S. Magistrate Judge Johnston in Great Falls on April 28, 2015, and entering pleas of Not Guilty were:
- CHERYL LYNN HEAVY RUNNER, a 52-year-old resident of Browning, 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, HEAVY RUNNER faces10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by U.S. Department of Health and Human Services Office of Inspector General. PACER Case Reference. 15-24
- MARCELLE HELENE PEPION, a 58-year-old resident of Browning, appeared on charges of theft of federal provided welfare benefits by fraud and federal welfare assistance fraud. If convicted of the most serious charge contained in the indictment, PEPION faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by U.S. Department of Health and Human Services Office of Inspector General. PACER Case Reference. 15-25
- TYLER JAY REINMUTH, a 30-year-old resident of Havre, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, REINMUTH faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Drug Enforcement Administration, Russell Country Drug Task Force and Havre Police Department. PACER Case Reference. 15-29
Appearing before U.S. Magistrate Judge Ostby in Billings on April 28, 2015, and entering pleas of Not Guilty were:
- GARRET JAY COSTA, JR, A 23-year-old resident of Crow Agency, appeared on charges of assault with a dangerous weapon and assault resulting in serious bodily injury. If convicted of the most serious charge contained in the indictment, COSTA 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: 15-41
Appearing before U.S. Magistrate Judge Lynch in Missoula on April 28, 2015, and entering pleas of Not Guilty were:
- STEPHON ELIJAH COAKLEY, a 19-year-old resident of Spokane, Washington, appeared on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute methamphetamine and heroin. If convicted of the most serious charge contained in the indictment, COAKLEY faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Montana Regional Violent Crime Task Force, Federal Bureau of Investigation, Missoula Street Crimes Unit, Missoula County Sheriff’s Office Missoula Police Department and the Drug Enforcement Administration. PACER Case Reference. 15-06
- FREDERICK GLEN JOHNSON, a 47-year-old resident of Spokane, Washington, appeared on charges of conspiracy to possess with intent to distribute and to distribute controlled substances, possession with intent to distribute methamphetamine and heroin, possess and brandish a firearm in furtherance of a drug trafficking crime, felon in possession of firearm/armed career criminal, transportation of a person with intent to engage in criminal sexual activity, and interstate travel in aid of racketeering. The case was investigated by the Montana Regional Violent Crime Task Force, Federal Bureau of Investigation, Missoula Street Crimes Unit, Missoula County Sheriff’s Office Missoula Police Department and the Drug Enforcement Administration. PACER Case Reference. 15-06
Appearing before U.S. Magistrate Judge Ostby in Billings on April 27, 2015, and entering pleas of Not Guilty were:
- HARRY EDWARD ALLEN, Jr., a 33-year-old resident of Tulare, 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, ALLEN 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. 14-115
- HOPIE DANIELLE ALVAREZ, a 41-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, ALVAREZ faces life in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 15-27
- HOPIE DANIELLE ALVAREZ, a 41-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, ALVAREZ faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 15-29
- LUKE MICHAEL DOVEL, a 20-year-old resident of Billings, appeared on charges of receipt of a firearm and ammunition by person under indictment and possession of a stolen firearm. If convicted of the most serious charge contained in the indictment, DOVEL 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, Billings Police Department and Yellowstone County Sheriff’s Office. PACER Case Reference. 15-33
- JUAN CARLOS LOPEZ-FIGUEROA, a 40-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, LOPEZ-FIGUEROA faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 15-29
Appearing before U.S. Magistrate Judge Ostby in Billings on April 22, 2015, and entering pleas of Not Guilty were:
- LETHA JEWELL BIXBY, a 31-year-old resident of Lame Deer, appeared on charges of felony child abuse. If convicted of the most serious charges contained in the indictment, BIXBY faces 10 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-38
- VIRGINIA MARTINEZ, a 49-year-old resident of Hardin, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, MARTINEZ 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. 15-45
- CAROL EDITH PRETTY ON TOP, a 32-year-old resident of Lame Deer, 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, PRETTY ON TOP 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. 15-47
Appearing before U.S. Magistrate Judge Johnston in Great Falls on April 21, 2015, and entering pleas of Not Guilty were:
- KEITH MOREHOUSE, a 30-year-old resident of Glasgow, appeared on charges of unlawful taking of a golden eagle. If convicted of the charge contained in the information, MOREHOUSE faces 1 year in prison and $100,000 in fines. The case was investigated by the United States Fish and Wildlife Service. PACER Case Reference: 15-26
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.
Washington Man Sentenced to Prison on Counterfeiting ChargesRead the Press Release
HELENA – A Renton, Washington man, who passed fraudulent money orders in Montana, Idaho, Washington, and Oregon, was sentenced today to 5 years in federal prison. U.S. District Judge Charles Lovell ordered James Henry Hernandez, Jr., 48, to serve 60 months in prison followed by 3 years supervised release. Hernandez was also ordered to pay $30,560 in restitution. In November 2014, Hernandez pleaded guilty to conspiracy to make and possess a counterfeited security of an organization.
Assistant U.S. Attorney Chad Spraker told the court that on August 30, 2013, Butte-Silverbow Law Enforcement officers responded to a report from Lucky Lil’s Casino that a man had passed counterfeit money orders. Upon arriving, officers asked the defendant for identification. He produced a Washington driver’s license with a false name.
During a search of the defendant’s truck, law enforcement found a number of items of contraband and suspected contraband including (1) 77 money grams in envelopes; (2) several cashed money grams; (3) 17 counterfeit $50 bills (4) a ledger listing the names of casinos and stores; (5) computer software, paper, and cutting material commonly used to manufacture counterfeit money orders and currency; (6) an electronic scale, loaded syringes, drug paraphernalia, and a padded mailing envelope with a Washington address containing OxyContin pills; (7) five Washington driver’s licenses with Hernandez’s picture, each with a different name; and (8) a social security card with an alias.
The defendant was interviewed and confessed to manufacturing currency and money orders. Hernandez further stated that he made out the money orders using fraudulent identification documents and then cashed them throughout Montana. He then went to various businesses to purchase items or reloadable debit cards. The investigation revealed the fraudulent money orders had been used to purchase goods and services in several stores throughout the northwest.
The case was investigated by Homeland Security Investigations and the United States Secret Service.
Getaway Driver in Wolf Point Casino Robbery Pleads GuiltyRead the Press Release
GREAT FALLS – A Wolf Point man who drove the getaway car in a Fort Peck casino robbery pleaded guilty today. Patrick Beauchamp, 35, was charged with aiding abetting robbery after he planned the robbery with others and served as the getaway driver. He faces up to twenty years in prison, a $250,000 fine, and three years supervised release. Sentencing is set for July 27, 2015 at 11:00 a.m. before U.S. District Judge Brian Morris.
Assistant U.S. Attorney Laura Weiss told the court that on June 12, 2013, Beauchamp and three others drove around Wolf Point and discussed robbing a casino. Beauchamp was driving, and two others got out and went into the Northern Lights casino with weapons and their faces covered. One of the robbers hit a casino employee over the head with an axe handle while the other held customers at bay with a bat. The first robber stole money from the casino and the two ran out to the waiting vehicle driven by Beauchamp. More than $1,340 was stolen from the casino. The group was pulled over moments later. Law enforcement found cash strewn throughout the vehicle, as well as the bat. The axe handle was found on the floor of the casino.
The case was investigated by Fort Peck Tribes Department of Law and Justice Criminal Investigations and the Wolf Point Police Department.
Information: Federal Court ArraignmentsRead the Press Release
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 Judge Ostby in Billings on April 15, 2015, and entering pleas of Not Guilty were:
- WILLIAM ROY BARGE, a 22-year-old resident of Bozeman, appeared on charges of passing or uttering counterfeit obligations or securities of the United States. If convicted of the most serious charge contained in the indictment, BARGE 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: 15-24
- GEORGE CHAD DEPUTEE, a 40-year-old resident of Lodge Grass, appeared on charges of aggravated sexual abuse and abusive sexual contact. If convicted of the most serious charge in the indictment, DEPUTEE 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. 15-21
- BOB CLARENCE PARKER, a 24-year-old resident of Billings, appeared on charges of possession of a stolen firearm. If convicted of the charge contained in the indictment, PARKER 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. 15-17
Appearing before U.S. Magistrate Judge Ostby in Billings on April 10, 2015, and entering pleas of Not Guilty were:
- MICHELLE LYNN EDELMAN, a 43-year-old resident of Billings, appeared on charges of conspiracy to distribute and 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, EDELMAN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation Drug Task Force. PACER Case Reference: 14-102
Appearing before U.S. Magistrate Judge Johnston in Great Falls on April 6, 2015, and entering pleas of Not Guilty were:
- BRYTTNI LIND BUSTOS, a 23-year-old resident of Browning, appeared on charges of assault on a federal officer. If convicted of the charge contained in the indictment, BUSTOS 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: 15-27
- DEAN MADPLUME, a 40-yeard old resident of Browning, appeared on charges of assault resulting in serious bodily injury. If convicted of the most serious charge contained in the indictment, MADPLUME faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-28
Appearing before U.S. Magistrate Judge Lynch in Missoula on April 2, 2015 and entering pleas of Not Guilty were:
- PAUL HOWARD BENBOW, a 47-year-old resident of Seeley Lake, appeared on charges of failure to register as a sexual offender. If convicted of the charge contained in the indictment, BENBOW 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: 15-07
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.
Former Stone Child College President Pleads Guilty to Tax FraudRead the Press Release
GREAT FALLS – Former Stone Child College President Melody Henry, 50, of Box Elder, and her husband, Frank Gregory Henry, 51, the former Facilities Manager at the College, entered guilty pleas to federal income tax fraud during a hearing today before U.S. District Judge Brian Morris in Great Falls. The Henrys face a potential sentence of three years imprisonment, a $100,000 fine and a year of supervised release, together with the costs of prosecution. Sentencing has been set for July 27, 2015, in the Missouri River Courthouse in Great Falls.
The Henrys had been indicted for taking almost a quarter of a million dollars in kick-backs from Hunter Burns and Hunter Burns Construction between October of 2010 and November of 2012. Melody Henry had approved $530,242 in contracts to Hunter Burns Construction in her role as President of Stone Child College. The payments were never disputed but the Henrys claimed that he had, in addition to his full-time employment at the College, done work at the College on behalf of Hunter Burns Construction and therefore the payments were not kick-backs but payments for services rendered. A federal jury acquitted the Henrys after a three day trial in February.
In the tax fraud indictment, prosecutors alleged that the Henrys had attempted to evade payment on the monies received by them from Hunter Burns Construction by claiming business expenses in an amount that would eliminate any tax liability. For the tax year 2012 the Henrys claimed their salaries from Stone Child College—totaling $246,586—and business income from Hunter Burns Construction in the amount of $124,537 for a total annual income of $371,124. On a Schedule C (Profit or Loss From Business) the Henrys claimed $135,146 in business expenses which completely off-set the income received from Hunter Burns Construction and resulted in a business loss.
In an offer of proof filed by the government to support the defendants’ pleas, the United States Attorney told the Court that the Henrys claimed $20,283 in vehicle expenses, $15,000 in contract labor, $6000 in insurance costs, $3000 in office expenses, $3,600 in office rental, $15,998 in repairs and maintenance, $9,035 in supplies, $10,000 in employee wages, $35,500 in newly purchased equipment, and $4,200 in telephone costs. A forensic financial review of the defendants’ bank account records by the Internal Revenue Service did not reveal any expenditures consistent with the expenses claimed on Schedule C. Prosecutors have agreed that if the civil IRS review indicates that some of the expenses claimed were legitimate they would reduce the restitution award which will be, by stipulation of the parties, $47,301 in tax due and owing for 2012. All other tax liability, for other years, will be dealt with directly by the IRS.
The case was brought by the federal agents of the Guardians Project and was investigated by the agents of the Offices of Inspector General of the Departments of Interior, Health and Human Services, and the Environmental Protection Agency, as well as by the Internal Revenue Service Criminal Investigation Division.
Fairview Man Sentenced to 22 Years for Drug and Gun CrimesRead the Press Release
BILLINGS – In a hearing in Billings today, U.S. District Judge Susan Watters sentenced Ryan Edward Lee, 32, of Fairview, to 270 months in prison followed by 5 years supervised release in connection to his November 2014 guilty plea to conspiracy to possess with the intent to distribute methamphetamine and carrying a firearm during and in relation to a drug trafficking offense.
In pleadings filed at the time of the guilty pleas, Assistant U.S. Attorney Bryan Whittaker told the court that from November 2013 to January 9, 2014, agents of the U.S. Drug Enforcement Administration and the Montana Division of Criminal Investigation investigated drug trafficking in the Bakken Fields, including allegations of methamphetamine distribution in and around Sidney, Montana, in Richland County. Using informants and law enforcement controlled exchanges, agents observed Lee deliver methamphetamine to another individual on two separate occasions.
After the first sale, Lee was pulled over by the Montana Highway Patrol for traffic violations. Lee provided false identification and received a warning for the traffic violations.
After the second sale, Montana Highway Patrol again conducted a traffic stop of Lee’s vehicle. Following a pat down search of the defendant, law enforcement found $2,500 in cash in Lee’s pocket. Once placed in the back of the patrol car, Lee kicked out a window and attempted to escape by fleeing on foot. After a chase, Lee was apprehended. During a search of Lee’s vehicle, law enforcement officers discovered a metal flip container with a digital scale and approximately 2 oz. of methamphetamine among other items and drug paraphernalia behind Lee’s driver’s seat. They also discovered, lodged between the seat and center console, a loaded .380 semi-automatic pistol. A trace on the handgun revealed that Lee had purchased it several months earlier using a false identification and a false name—the same stolen identity he used multiple times with the Montana Highway Patrol.
In addition, after his arrest and while in custody in Yellowstone County Detention Facility, it was discovered that Lee had attempted an escape by breaking out the window of his cell and that he had been chipping away the wall outside the window for at least three months.
The prosecution was part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota. Drug crimes in the Bakken area have increased dramatically since the oil boom began in the region several years ago. Federal prosecution has been a priority of U.S. Attorney Michael Cotter as a way to assist state, county, and city authorities with the substantially increased demand on law enforcement resources. Parole has been abolished in the federal system and although Lee may be entitled to good time credit of up to 15% of his sentence, the sentence imposed will be the sentence served.
The investigation was conducted by the Drug Enforcement Administration, Montana Division of Criminal Investigations, Montana Highway Patrol and the Federal Bureau of Investigation.
Stevensville Businessman Pleads Guilty to FraudRead the Press Release
MISSOULA – Steven Vincent Sann, a 59-year-old resident of Stevensville plead guilty today to charges of wire fraud and money laundering. If the maximum sentences were imposed and ordered to be served consecutively, Sann faces 30 years in prison, $500,000 in fines and 6 years supervised release. U.S. District Judge Dana Christensen set sentencing for July 17, 2015. Sann was released pending sentencing.
Assistant U.S. Attorney Tim Racicot told the court that Sann managed the “Sann Companies” which were engaged in the business of marketing a stand-alone voice mail and fax service using a practice known as Local Exchange Carrier (“LEC”) billing to collect for the service’s charges. Sann was the president, secretary, treasurer, and director of one of those companies – Emerica Media Corporation. The Sann Companies were incorporated in Nevada and most of them designated one person – either a relative or friend of Sann’s – to serve as president, secretary, treasurer, and director. The United States alleged the offense occurred between March 2009 and December 2011.
Utilizing LEC billing to collect for services has come under intense scrutiny over the past several years based on allegations that charges are placed on customers’ monthly bills without their knowledge or consent. Such unauthorized billing is known as cramming. Cramming is the placing of unauthorized charges on your wireline, wireless, or bundled services telephone bill. The Federal Communications Commission (FCC) has estimated that cramming has harmed tens of millions of American households. Crammers often rely on confusing telephone bills to trick consumers into paying for services they did not authorize or receive, or that cost more than the consumer was led to believe.
In order to place charges on land-line telephone bills for its services, the Sann Companies contracted with billing aggregators such as Transaction Clearing. Transaction Clearing worked with the phone companies (LECs) to facilitate the placing of charges on the monthly phone bills of the Sann Companies’ customers.
The federal charges were based on Sann’s fraudulent misrepresentations to Transaction Clearing related to his and his companies’ business relationships with Transaction Clearing. In March of 2010, Transaction Clearing defined for the Sann Companies what it considered a “cramming complaint” and in its contracts with the Sann Companies required them to report complaints meeting that definition on a monthly basis. The reporting obligation applied whether or not the complaint actually related to a customer being signed up for the service without their consent or knowledge, or was justified or unjustified; it only mattered that a complaint had been made. If the complaints reached a certain threshold, the LECs and billing aggregators would require entities such as the Sann Companies to submit action plans in an effort to reduce the volume of complaints. If complaints persisted, the LECs could suspend the Sann Companies and terminate the billing arrangement.
The contracts also required each Transaction client, including the Sann Companies, to disclose the names of other companies or entities owned or controlled by that client’s officers or principals. In order to continue to receive revenue for the Sann Companies from Transaction Clearing, Sann and his agents failed to accurately report complaints meeting Transaction Clearing’s definition of cramming, and also failed to fully disclose Sann’s interest in the Sann Companies.
An employee of Tri-Data Systems in Montana (Emerica’s accounting firm), at the direction of Emerica in Montana, sent an email to Transaction Clearing in Texas on March 3, 2011, representing the Sann Companies had no complaints meeting Transaction Clearing’s definition of cramming during February 2011. In fact, the Sann Companies received approximately 479 complaints that met Transaction Clearing’s definition of cramming during February 2011.
In addition, Sann transferred $100,000 from a bank account to a Charles Schwab and Company investment account on April 4, 2011. The money involved in that transfer was paid to the Sann Companies in connection with funds received from utilizing LEC billing and therefore was derived from the wire fraud scheme described above.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
Information: Federal Court ArraignmentsRead the Press Release
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 Judge Ostby in Billings on April 1, 2015, and entering pleas of Not Guilty were:
- FRANKLYN DON HAMMONTREE, a 42-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, HAMMONTREE faces life in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 15-27
Appearing before U.S. Magistrate Judge Johnston in Great Falls on March 31, 2015, and entering pleas of Not Guilty were:
- COBRA JADE SPOTTED WOLF, a 35-year-old resident of Poplar, appeared on charges of burglary and assault resulting in serious bodily injury. If convicted the most serious charge contained in the indictment, SPOTTED WOLF faces 20 years in prison, $250,000 in fines and 3 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: 15-19
Appearing before U.S. Magistrate Judge Ostby in Billings on March 27, 2015, and entering pleas of Not Guilty were:
- JUEL REBECA GRAHAM, a 29-year-old resident of Hardin, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, GRAHAM faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference: 15-26
Appearing before U.S. Magistrate Judge Lynch in Missoula on March 25, 2015, and entering pleas of Not Guilty were:
- ARMANDO GOMEZ-HERNANDEZ, a 51-year-old resident of Mexico, appeared on charges of illegal reentry. If convicted of the charge contained in the indictment, GOMEZ-HERNANDEZ faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Border Patrol. PACER Case Reference: 15-05
- RAFAEL RAMOS-ROMERO, a 28-year-old resident of Mexico, appeared on charges of illegal reentry. If convicted of the charge contained in the indictment, RAMOS-ROMERO faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by Immigration and Customs Enforcement. PACER Case Reference: 15-19
Appearing before U.S. Magistrate Judge Ostby in Billings on March 20, 2015, and entering pleas of Not Guilty were:
- MELVIN LEE WOODENTHIGH, JR., a 33-year-old resident of Lame Deer, appeared on charges of sexual abuse, sexual abuse of a minor, abusive sexual contact and abusive sexual contact of a minor. If convicted of the most serious charges contained in the indictment, WOODENTHIGH 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: 15-20
Appearing before U.S. Magistrate Judge Ostby in Billings on March 19, 2015, and entering pleas of Not Guilty were:
- RENEE ANN ZINNECKER, a 50-year-old resident of Billings, appeared on charges of wire fraud. If convicted of the most serious charge contained in the indictment, ZINNECKER 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: 15-09
Appearing before U.S. Magistrate Judge Ostby in Billings on March 17, 2015, and entering pleas of Not Guilty were:
- MICHAEL SERREL JOHNSON, a 45-year-old resident of Minot, North Dakota, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, JOHNSON faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration and Montana Division of Criminal Investigations. PACER Case Reference: 15-13
Appearing before U.S. Magistrate Judge Lynch in Missoula on March 17, 2015, and entering pleas of Not Guilty were:
- BLAINE GARRETT REPOSA, a 30-year-old resident of Corvallis, Oregon, appeared on charges of distribution of child pornography. If convicted of the most serious charges contained in the indictment, REPOSA faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Internet Crimes Against Children Task Force, Bozeman Police Department and Gallatin County Sheriff’s Office. PACER Case Reference: 14-29
- ANTHONY DANE ROBERTY, a 54-year-old resident of Bozeman, appeared on charges of receipt of child pornography. If convicted of the charge contained in the indictment, ROBERTY faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Internet Crimes Against Children Task Force, the Federal Bureau of Investigation, Homeland Security Investigations, Bozeman Police Department and Montana Division of Criminal Investigations. PACER Case Reference: 15-16
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.
Veterans Court Now Available for Vets Charged with Federal Crimes in MontanaRead the Press Release
HELENA – Chief U.S. District Court Judge Dana L. Christensen, Chief Montana District Court Judge Gregory G. Pinski and U.S. Attorney Mike Cotter, are pleased to announce that qualifying veterans charged with federal crimes are now eligible to participate in Veterans Court, an alternative to prison. The announcement results from a collaborative agreement that allows qualified veterans in the federal system to enroll in the Montana Eighth Judicial District Veterans Court, which has been operational since 2013 for veterans accused of state and local crimes.
"Judge Greg Pinski of the Eighth Judicial District has created a model Veterans Court,” said Chief U.S. District Court Judge Dana L. Christensen. “The Montana District Federal Court welcomes the opportunity to be a partner in this effort, and to be able to provide this option to veterans who have been charged with federal crimes."
“Too many veterans are winding up in the criminal justice system suffering from mental illness, cognitive impairment and substance abuse. They cannot cope with the invisible wounds of war on their own, and the Veterans Court gives them an opportunity for treatment and restoration,” said Chief Montana District Court Judge Pinski. “The collaborative approach between the Montana federal and state courts to treating veteran offenders is unique and it will greatly expand treatment opportunities for Montana’s justice-involved veterans.”
In 2014, the United States Department of Justice awarded the Veterans Court nearly $300,000 to build and expand the program. The Veterans Court reduces crime, enhances public safety, saves taxpayer costs, and enriches lives by facilitating sobriety, treating mental health conditions, improving social relationships, and promoting lifelong stability for veteran offenders in the community. The program is a joint effort between the courts, community treatment providers, the U.S. Department of Veterans Affairs, and volunteer mentors.
“Veterans are returning to Montana every day,” said Montana U.S. Attorney Mike Cotter. “We look forward to utilizing Veterans Court in federal cases so that qualifying veterans can get structured treatment and return to their lives and families in Montana.”
Veterans Court requires enrollees to engage in intensive multi-stage professional counseling and treatment for issues involving substance abuse, mental health, disability, finances, and other difficulties, including those related to their military service. They must also abide by strict conditions, follow rigorous treatment plans, and attend scheduled hearings before a judge. Veterans accused of federal crimes will now have the same opportunity to enroll in the program as part of their federal cases if they meet certain criteria and have not already been convicted of violent or sexual offenses.
In 2004, the Bureau of Justice Statistics released a report stating that approximately ten percent of state prison inmates had prior military service. The Bureau also estimated that 140,000 veterans were in state and federal prison. According to a Congressional Budget Report and the Rand Corporation, one veteran in five of the Iraq and Afghanistan wars is diagnosed with Posttraumatic Stress Disorder (PTSD) and nearly twenty percent report experiencing a traumatic brain injury during deployment. An estimated thirty percent of Vietnam veterans have PTSD.
A Department of Veterans Affairs study determined that from 1999 through 2010, between 18 and 22 veterans commit suicide each day in the United States. “The suicide rate alone is justification to help justice-involved veterans,” Pinski emphasized.
Jury Convicts Former High-Ranking BLM OfficialRead the Press Release
GREAT FALLS – The former State Director of the Bureau of Land Management’s Eastern States Region, which is responsible for the stewardship of the public lands and resources under the jurisdiction of the BLM in 31 States east of and bordering the Mississippi River, was convicted of fraud and theft by a federal jury in Great Falls Wednesday night.
John Grimson Lyon, 61, of Clifton, Virginia, faces a possible 35 years imprisonment, $750,000 in fines, and $112,000 in forfeitures. Judge Brian Morris of Great Falls set sentencing for June 25, 2015.
As a State Director, Lyon was part of the Senior Executive Service, whose members serve in the key positions just below the top Presidential appointees. Lyon was convicted of approving time sheet information for one of his Deputy State Directors, Larry Ray Denny, 67, of Box Elder, even though Denny had left his position in Virginia in July 2012 to return to Montana and take a job with the Chippewa Cree Tribe on the Rocky Boy’s Indian Reservation. Federal prosecutors alleged that Lyon knew or should have known that his subordinate had abandoned his position and was performing no work on behalf of the federal government when he told BLM time keepers to continue to enter Denny’s hours as if he were earning a federal paycheck.
Lyon continued to present and certify as true work hours, sick leave hours, and annual leave hours to his staff, on Denny’s behalf, until Denny ultimately resigned in March of 2013. After leaving Virginia, and as a result of Lyon’s actions, Denny received an additional $112,000 in federal wages and benefits, all while working as Energy Projects Manager for the tribe. The scheme was discovered in February 2013 when a BLM employee in Montana sent an inquiry to that agency’s headquarters asking for clarification as to whether Denny was still a BLM employee. Denny had been working on oil and gas issues for the Tribe and the agency was unsure whether he was interacting with federal agencies as a BLM employee or as a representative of the Chippewa Cree Tribe.
Eastern States Office employees testified that Lyon rebuffed any inquiry into Denny’s status, telling them that Denny’s absence was related to a private medical issue and would not be discussed. An internal investigation revealed that Denny had over 3,000 unopened emails in his government email inbox. Employees testified that once Denny left Virginia there was “radio silence” and he could not be reached. One employee testified that she called Denny twice shortly after his departure; one the second call, Denny hung up on her once he determined who was calling. Lyon claimed Denny had been giving him valuable consultation on oil and gas matters which justified his work hours. An investigator with the Department of Interior’s Office of Inspector General testified that she reviewed Lyon’s phone records and found less than three hours of conversation in the eight-month period between July 2012 and March 2013. Emails and phone records revealed that Lyon and Denny regularly used non-government email and phones to communicate, thereby creating no data trail in government servers or phone records.
In November 2012, three months after Denny left and ceased working for BLM, Lyon rated Denny’s performance “exceptional” and approved a $3,200 cash bonus.
Denny plead guilty to all counts and the forfeiture three days before Lyon’s trial.
The guilty verdict 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 Denny-Lyon case was investigated by an agent of the Department of Interior’s Office of Inspector General.
United States Attorney Michael Cotter said that “We prosecute people who steal and cheat the taxpayers every day. Federal officials, regardless of their power or position, will be held to the same standard. The jury’s verdict sends a message. ‘It’s not your money. You are trusted to protect it. Do your duty or we will do ours.’”
Information: Federal Court ArraignmentsRead the Press Release
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 Judge Lynch in Missoula on March 12, 2015, and entering pleas of Not Guilty were:
- TERESA A. BARR, a 58-year-old resident of Clinton, appeared on charges of misappropriation of postal funds. If convicted of the charge contained in the indictment, BARR faces 1 year in prison, $100,000 in fines and 1 year supervised release. The case was investigated by the U.S. Postal Service Office of Inspector General. PACER Case Reference: 15-03
- KENNETH MARTIN CHANDLER, a 35-year-old resident of Kalispell, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, CHANDLER 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: 15-01
- ISMAEL MELIN, a 40-year-old resident of Mexico, appeared on charges of conspiracy 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, MELIN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Northwest Drug Task Force. PACER Case Reference: 15-17
- JOSE LUIS MONTANO-ESPERICUETA, a 40-year-old resident of Mexico, appeared on charges of conspiracy 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, MELIN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Northwest Drug Task Force. PACER Case Reference: 15-17
- JOHNNY LEWIS NOSIE, a 47-year-old resident of Tucson, Arizona, appeared on charges of failure to register as a sexual offender. If convicted of the charge contained in the indictment, NOSIE faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the United States Marshals Service and Gallatin County Sheriff’s Office. PACER Case Reference: 15-14
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.
Psychologist Sentenced to Six Years in Federal Prison and a $100,000 Fine for Role in Rocky Boy's Corruption ProbeRead the Press Release
GREAT FALLS – The former psychologist for the Rocky Boy Health Clinic in Box Elder has been sentenced to six years in prison for his leadership role in corruption ring that embezzled hundreds of thousands of dollars from federal programs on the reservation. Dr. James Howard Eastlick, 48, now of Coeur D’Alene, Idaho, was sentenced by U.S. District Judge Brian Morris to six years in prison despite the government’s recommendation for a more lenient sentence based upon what prosecutors termed “exceptional assistance” in the investigation and prosecution of others involved in the Rocky Boy’s corruption.
While the sentence represented a departure from the advisory guideline range, the sentence also reflected Eastlick’s central role in a myriad of corrupt deals with tribal officials that occurred over a three year period when the reservation saw a significant increase in federal funding.
In addition to the prison term, Judge Morris ordered Eastlick to pay a $100,000 fine, pay $424,800 in restitution and serve three years of supervised release when his term of imprisonment has ended.
Earlier in the day, Morris had sentenced Eastlick’s sister Tammy Kay Leischner, 43, and his brother-in-law, Mark Craig Leischner, 48, both of Laurel to two years in prison. Morris sentenced Eastlick’s father, James Howard Eastlick, Sr., 70, to a year in prison in September of 2014, and Eastlick’s nephew, Brenden Leischner, 24, to six months in custody and five years of probation for his role in a student financial aid fraud scheme at the University of Great Falls.
Bribery Relating to a Federally Funded Program
Dr. Eastlick plead guilty to providing Tony Belcourt, then the Chief Executive officer of the Chippewa Cree Construction Corporation, with a $100,000 payment as part of their on-going business relationship relating to the Tiber Reservoir water project which was funded in 2009 with $20 million in federal stimulus monies under the American Recovery and Reinvestment Act (ARRA) through the Bureau of Reclamation.
Prosecutors presented evidence that Hunter Burns Construction, LLC, was formed as a Native American / minority-owned preference business in June 2009 to do business on the Rocky Boy’s Indian Reservation, primarily on federally funded projects. The 51% majority owner of the company was Hunter Burns, and the other 49% of the company was owned by Dr. Eastlick, then a clinical psychologist with the Rocky Boy Health Board Clinic. Between June 2009 and October 2009, Tony Belcourt awarded four contracts to Hunter Burns Construction, totaling over $713,000, in connection of the expansion of the On-Reservation water district. These contracts were identified as the Box Elder Pipeline Project 1 ($361,300), the Box Elder Pipeline Project 2 ($143,440) the Middle Dry Fork Pipeline project ($155,108), and the Reseeding project to mitigate ground disturbance for these two pipelines ($54,000).
In December, 2011, Belcourt approached Eastlick for a large loan--$100,000—to keep the Bank from taking his ranching operation. Eastlick agreed to help Belcourt.
Belcourt approved and authorized a Chippewa Cree Construction Corporation payment to Hunter Burns Construction on November 21, 2009, in the amount of $148,972. Without the deposit from the Chippewa Cree Construction Corporation, there were insufficient funds in the Hunter Burns Construction account to get the money Belcourt needed to fix the problem with the auction company and Independence Bank caused by the illicit sale of secured cattle.
Two days later, on November 23, 2009, Hunter Burns Construction issued a $100,000 check to Hailey Belcourt.
Four months later, in March of 2010, Hunter Burns Construction was awarded a $1.7 million contract. Two weeks after the contract was entered into, Belcourt approved a $100,000 payment of federal ARRA funds to Hunter Burns Construction . The contract had called for a $15,000 payment for “mobilization”, but that payment was made weeks after the $100,000 payment; a payment that went unrecorded with the project engineers until many months later.
Bribery of Councilman John Houle
Eastlick also plead guilty to bribing Chippewa Cree Tribal Councilman John Chance Houle.
Prosecutors represented to the Court that between October 2007 and September 2012, the Chippewa Cree Tribe received $420,439,495.00 in federal funding. In addition to the over $420 million in federal funding, the Tribe also received a $25 million dollar insurance payment after the flooding of 2010, and an $8.4 million dollar award under the Cobell v. Salazar Settlement in July of 2012. The total money received by the Tribe during this five-year time period was over $450 million dollars.
Of that amount, between April 2009 and December 2011, the Rocky Boy's Health Clinic received over $40 million from HHS and EPA, mostly to operate the Health Clinic and rebuild sewage lagoons damaged by the floods of 2010. The Chippewa Cree Construction Corporation received over $40 million from the BOR as part of the Rocky Boy's/North Central Montana Regional Water System project (the Tiber project).
John Chance Houle, was a tribal councilman during this time and Vice-Chairman of the Rocky Boy Tribe Business Committee. In that capacity, Houle served on the Chippewa Cree Construction Corporation Board and on the Rocky Boy's Health Care Board. Houle had arranged for the Eastlick-Bums partnership with the understanding that if he lost his position on the Council, he would replace Eastlick and continue to use the construction company as a vehicle to obtain tribal funds. A long-time member of the tribal council who had also served as the Tribal Chairman, Houle exerted significant political control over the two boards as well as over the affairs of the Tribe as a whole.
During the period of the indictment-from July 28, 2009 through November 30, 2011, Houle engaged in a series of “business transactions” with Hunter Burns Construction including the rental of property to the company, the sale or lease of equipment to the company, and the performance of personal services to the company. The investigation revealed that many of the transactions were not legitimate but were merely labeled as such to provide cover to the participants. For example, equipment purportedly sold to Hunter Bums Construction would continue to appear on Houle's inventory of equipment for bank loans and credit long after it was allegedly sold. One transaction was for the potential and prospective lease of property over ten years paid in full up front-when the land was never used for any purpose by the construction company. Another payment was related to the disposal of hazardous waste which could not have been a legitimate transaction due to the regulatory requirements for the disposal of such material that Houle could not legally perform. Eastlick, Houle, and Hunter Burns all confirmed that the scheme was merely a device to funnel federal and tribal monies back to Councilman Houle in exchange for his continuing patronage in the giving of contracts to Hunter Burns Construction.
From July 28, 2009, through November 30,2011, Hunter Burns Construction made a total of $258,487 in l7 payments to Houle, his ranching business, or his children from the health clinic and water project contracts funded by EPA, BOR, and HHS.
Federal Income Tax Fraud
Eastlick was also sentenced on his guilty plea to income tax fraud.
According to prosecutors, Eastlick, in addition to his employment as a psychologist for the Health Clinic, operated a loan program-called the JE Loan Program-with the Chippewa Cree Tribe wherein he loaned money both to the Tribe in large amounts and to individual tribal employees in smaller amounts. Loans to the Tribe generally carried interest rates of l0 per cent, and were paid back within l0 weeks of Eastlick loaning the money. The annualized percentage rate (APR) for loans from the JE Loan program would constitute an 80% return.
With regard to the loans to the tribal employees, Eastlick had an arrangement with the Tribe that to repay those debts, money would be taken from the employee's paycheck, consolidated with other debtors of the JE Loan program, and then tribal checks would be regularly issued to Eastlick representing both interest and principal. These loans were also short-term loans that carried an interest rate of between l0 and 15 per cent with an annualized rate being significantly higher. Eastlick's accountant, who handled the tax affairs of Eastlick's other business interests, had no knowledge of the JE Loan program and did not include taxable income from that source on any of Eastlick's returns including during the years 2008-2011.
Returned principal on the loans made by Eastlick through the JE Loan Program would not be income subject to the Internal Revenue Service's reporting requirements, but interest on those loans is considered income and must be reported. Eastlick did not claim any interest income from his tribal loan program on his federal tax returns for 2008, 2010, or 2011, and only minimal interest in 2009.
Eastlick’s prison sentence on the tax conviction runs concurrently to the 72 months imposed on the other counts of conviction, but he was ordered to pay, of the total restitution amount, $66,313 to the IRS in taxes due and owing from his failure to disclose the interest income from the loan program.
Because there is no parole in the federal system, the “truth in sentencing” guidelines mandate that Eastlick will likely serve all of the time imposed by the court. In the federal system, defendants do have the opportunity to earn a limited reduction in time served for “good behavior,” a reduction for good conduct while incarcerated will not exceed 15% of the overall sentence.
Laurel Couple Sentenced to Federal Prison for Role in Rocky Boy's Corruption ProbeRead the Press Release
GREAT FALLS – A husband and wife linked to corruption on the Rocky Boy’s Indian Reservation were both given two-year federal prison sentences today in Great Falls. Mark Craig Leischner,48, and Tammy Kay Leischner,43, of Laurel were sentenced by U.S. District Judge Brian Morris following their guilty pleas to multiple felonies. Mark Leischner, who plead guilty to embezzlement of over $200,000 in funds from the Chippewa Cree Tribe Rodeo Association, federal student financial aid fraud, and obstruction of justice, was sentenced to 24 months in prison. Tammy Leischner, who plead guilty to aiding the embezzlement of $311,000 in federal funds, bankruptcy fraud, federal student financial aid fraud, and blackmail, was also sentenced to 24 months in prison. Following their incarceration, both will be on federal supervised release for three years. Mark Leischner was ordered to pay $281,313 in restitution, and Tammy Leischner was ordered to pay $375,092 in restitution.
Theft of Federal Funds
Tammy Leischner plead guilty to assisting and participating in the embezzlement of hundreds of thousands of dollars in American Recovery and Reinvestment Act (ARRA) funds provided by the Bureau of Reclamation for the Rocky Boy’s water project.
Prosecutors presented evidence that Tony Belcourt, then the Chief Executive Officer of the Chippewa Cree Construction Corporation, in anticipation of receiving $20 million in ARRA funds in September 2009, solicited bids for the supply and delivery of the pipe needed for the Tiber Reservoir water project. At some point prior to a telephone meeting on January 27, 2010, RPK Transport of Joliet, Montana, was selected as the shipper for the pipe. RPK did in fact provide all of the shipping for the pipe, invoiced the cost, and was paid $348,950, by Tammy Leischner and James Howard Eastlick, Sr. doing business as T. Leischner Consulting.
Although a contract for the supply and delivery (shipping) of pipe was in place with Northwest Pipe, the pipe manufacturer, and a shipper—RPK Transport—had been selected to haul the pipe from Colorado to Montana, Belcourt awarded a separate shipping contract to T. Leischner Consulting on January 28, 2010, for $495,000.
In February 2010, Belcourt approved an advance payment of $165,000 (one-third of the contract price) in ARRA funds to the newly created business entity, T. Leischner Consulting. On March 1, 2010, James Howard Eastlick wire transferred $101,000 of the $165,000 deposit, to the bank account of MT Waterworks, a retail sales pipe supply company, at Yellowstone Bank in Billings. Like the T. Leischner account, the MT Waterworks account was newly created; created only two weeks earlier, on February 19, 2010, by Tony Belcourt and two business partners. The $101,000 wired from T. Leischner Consulting purchased a controlling financial interest in the enterprise for Belcourt, and the company relied on a “minority owned” status for preferential treatment in federal construction projects based on Belcourt’s tribal enrollment with the Chippewa Cree Tribe.
An invoice for services was created by T. Leischner Consulting and dated March 25, 2010, in the full amount of $495,000—even though it had already received a full one-third of the contract amount in February. Leischner presented this invoice to Northwest Pipe through the project’s procurement agent. Between March 26 and April 23, 2010, in a series of financial transactions, $495,000 in ARRA funds were provided to Leischner.
Shortly after the $495,000 was deposited on April 26 into Leischner’s account, James Eastlick Sr. wired $200,000 to the Chippewa Cree Rodeo Association account in Havre. One month later two checks were issued from the Rodeo account to Mark Leischner which totaled $133,000. That money was deposited into the Leischner’s personal account at Stockman Bank. Ten days after that deposit, on July 2, Tammy Leischner bought a $62,000 cashier’s check from Stockman Bank made payable to Hill County Title. That cashier’s check was used by Hailey Belcourt on July 7 to buy a residence in Box Elder, which the Belcourt’s used as a rental property.
Embezzlement from the Rodeo Account and Obstruction of a Grand Jury investigation
Mark Leischner plead guilty to assisting John Chance Houle, a tribal official and the President of the Chippewa Cree Rodeo Association (CCRA) embezzle funds from the rodeo association accounts by serving as a nominee vendor and then kicking money back to Houle and his brother-in-law, James Eastlick, Jr. and obstructing a Grand Jury investigation.
Beginning in 2009, Houle and Eastlick devised a scheme whereby they could embezzle funds from the rodeo association account using nominee vendors willing to kick-back a portion of the proceeds to Houle and Eastlick. In 2009, Mark Leischner received $135,000 in checks from Houle, and kicked-back to Eastlick approximately $53,000. Of the $135,000, according to the forensic investigation of Leischner’s bank accounts by case agents, only $33,750 was actually spent on saddles to be used for rodeo prizes. In June 2010, Houle wrote two rodeo association checks to Mark Leischner totaling $133,000. Of the $133,000, the investigation determined that approximately $16,000 was spent on rodeo prizes (i.e., saddles and belt buckles) and $62,000 was kicked-back to Belcourt for the purchase of a residence in Box Elder.
On March 19, 2013, a Grand Jury subpoena was issued ordering Mark Leischner to appear before the Grand Jury on April 3, 2013, and to produce certain documents relating to his contracts with the CCRA in 2009 and 2010. Between January and June of 2013, Houle, Eastlick, and the Leischners met between three and five times to discuss the manufacture of, and create, “back-up” documents that would satisfy investigators, and the Grand Jury, that the transactions were legitimate rodeo contract payments. On July 25, 2013, documents were provided by Leischner to the Grand Jury. Most were determined to be fabricated documents manufactured between January and June of 2013.
Bankruptcy Fraud and Federal Student Financial Aid Fraud
Brenden Leischner, son of Mark and Tammy Leischner, applied for admission and was accepted to the University of Great Falls (UGF) in the Fall of 2009 as a Criminal Justice major. As part of that process, the Leischners completed the first of several Free Application for Federal Student Aid (FAFSA) forms to qualify Brenden for federal student aid. Both Brenden and his parents provided information, on-line, in the completion and submission of the FAFSA. The Leischners received in excess of $1.1 million dollars into their accounts during the period of Brenden Leischner’s enrollment at UGF that was not declared on any application for federal student assistance. Mark and Tammy Leischner were sentenced for their guilty pleas to defrauding the U.S. Department of Education. Brenden Leischner was sentenced in December of 2014 to six months in custody and 5 years of probation for his role in the fraud.
On October 2, 2012, the Leischners filed for bankruptcy in U.S. Bankruptcy Court, Case No. 12-61597-RBK. On October 19 they filed their schedules in support of the petition. The Leischners did not reveal then, or at any time subsequent, the $165,000 from CCCC, the $495,000 from Northwest Pipe, or the $133,000 from the Rodeo Association. They also did not disclose the existence of the Stockman Bank account, which had been opened in May of 2010, or the Altana FCU account of T Consulting, through which the pipe-shipping contract payments, totaling $660,000, passed.
Tammy Leischner was sentenced on her plea of guilty to bankruptcy fraud.
Blackmail
On October 17, 2014, a letter from Tammy Leischner was delivered to Jim Eastlick Jr.s home addressed to his wife, which read, in part that “To the issue of the criminal charges, I have a handwriting expert highly accredited in state and federal courts, ........, who is prepared to write a report and testify to the fact the signatures on the contracts, are not James Eastlick Jrs' and are in fact [his wife’s]… As a direct result of your actions I am requesting damages of $ 595,000.00 dollars. If payment is received by November 7, 2014 I will wave my right to pursue a civil action, the criminal charges, and informing the federal judge. …If I am not successful trying to mitigate this by November 7, 2014 I will promptly file criminal charges with Joe Waller, inform Honorable Brian Morris, ….” Subsequent investigation verified that Tammy Leischner had sent the threatening letter.
Tammy Leischner plead guilty to a charge of blackmail and was sentenced today for that offense.
Because there is no parole in the federal system, the “truth in sentencing” guidelines mandate that the Leischners will likely serve all of the time imposed by the court. In the federal system, defendants do have the opportunity to earn a limited reduction in time served for “good behavior,” a reduction for good conduct while incarcerated will not exceed 15% of the overall sentence.
Information: Federal Court ArraignmentsRead the Press Release
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 Judge Johnston in Great Falls on March 10, 2015, and entering pleas of Not Guilty were:
- WYATT CAMERON MONTCLAIR, a 20-year-old resident of Poplar, appeared on charges of involuntary manslaughter. If convicted of the charge contained in the indictment, MONTCLAIR faces 8 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference: 15-21
- BRANDON LEE ROMERO, a 20-year-old resident of Poplar, appeared on charges of burglary and assault resulting in serious bodily injury. If convicted of the most serious charge contained in the indictment, ROMERO faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Fort Peck Tribes Department of Law and Justice. PACER Case Reference: 15-19
- JENNIFER RAE SALAZAR, a 28-year-old resident of 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, SALAZAR 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: 14-39
Appearing before U.S. Magistrate Judge Ostby in Billings on March 9, 2015, and entering pleas of Not Guilty were:
- DANNY LEWIS FROST, a 61-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, FROST 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 Montana Division of Criminal Investigation. PACER Case Reference: 15-18
- PATRICK CLEARY HECK, a 54-year-old resident of Sidney, appeared on charges of failure to register as a sexual offender. If convicted of the charge contained in the indictment, HECK 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: 15-18
Appearing before U.S. Magistrate Judge Lynch in Missoula on March 5, 2015, and entering pleas of Not Guilty were:
- SPENCER ROBERT RICE, a 28-year-old resident of Belgrade, appeared on charges of receipt of child pornography. If convicted of the most serious charge contained in the indictment, RICE faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Internet Crimes Against Children Task Force and the Bozeman Police Department. PACER Case Reference: 15-15
Appearing before U.S. Magistrate Judge Johnston in Great Falls on March 5, 2015, and entering pleas of Not Guilty were:
- MELISSA ANN BOUTWELL, a 31-year-old resident of Great Falls, appeared on charges of false statement in connection with purchase of a firearm and false declaration before grand jury. If convicted of the most serious charge contained in the indictment, BOUTWELL faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference: 15-18
Appearing before U.S. Magistrate Judge Johnston in Great Falls on March 3, 2015, and entering pleas of Not Guilty were:
- DONELLE PARKER, a 43-year-old resident of Wolf Point, appeared on charges of robbery. If convicted of the charge contained in the indictment, PARKER faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by Fort Peck Tribes Department of Law and Justice. PACER Case Reference: 15-02
- OLYN PAYNE, a 35-year-old resident of Wolf Point, appeared on charges of robbery. If convicted of the charge contained in the indictment, PAYNE faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by Fort Peck Tribes Department of Law and Justice. PACER Case Reference: 15-02
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.
Montana Tribes Selected as Pilot Project for Prosecuting Domestic Violence CrimesRead the Press Release
HELENA – The United States Attorney’s Office for the District of Montana announces that the Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation have been selected by the Department of Justice as a Pilot Project for implementation of the Violence Against Women Act (VAWA). Starting March 6, 2015, the Fort Peck tribal court can now exercise special criminal jurisdiction over certain crimes of domestic and dating violence, regardless of the defendant’s Indian or non-Indian status. Fort Peck is one of only five tribes nationwide to be selected for Pilot Project status.
“The U.S. Attorney’s Office congratulates Fort Peck for its hard work in earning Pilot Project status,” said Montana U.S. Attorney Michael Cotter. “This is a significant win for public safety and tribal sovereignty for the Assiniboine and Sioux Tribes.” The tribes engaged in an extensive application process to ensure adequate safeguards are in place to fully protect defendants’ rights, such as the right to an attorney.
"From the beginning of the VAWA tribal working group, we wanted to see Fort Peck succeed in the pilot because it is a large rural reservation with a larger criminal case load,” said John Dossett, General Counsel for the National Congress of American Indians. “They have provided a very good model for other large tribes and it will increase justice and safety for those reservations. Hats off to Fort Peck."
Other qualifying tribes in Montana and throughout the country also have the opportunity to expand special jurisdiction over certain domestic and dating violence crimes when VAWA took full effect on Saturday. Nothing in VAWA changes the obligation of federal authorities to prosecute violent crime in Indian Country. For more information about VAWA and the Pilot Projects, go to: http://www.justice.gov/tribal.
Information: Federal Court Initial AppearancesRead the Press Release
The United States Attorney’s Office today announced that during a federal court session in Missoula, Montana on March 9, 2015, before U.S. Magistrate Judge Lynch, the following individuals appeared:
- YUSUF DESHAWN REEVES, a 47-year-old resident of Spokane, Washington, made an initial appearance on a complaint alleging conspiracy to distribute methamphetamine. He is currently detained. If formally charged with this offense by indictment, REEVES, faces 40 years in prison, $5,000,000 in fines and 4 years supervised released. The investigation is being conducted by the Montana Violent Crime Task Force, the Federal Bureau of Investigation, the Missoula Street Crimes Unit, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference: 15-17
A complaint is merely a written statement of the essential facts constituting the offense(s) charged. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
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.
Former Chippewa Cree Tribal Chairman Sentenced to 34 Months in Prison for Bribery, Embezzlement, and Tax EvasionRead the Press Release
GREAT FALLS – Former Chippewa Cree Tribal Chairman Bruce Sunchild, 69, of Box Elder was sentenced to almost three years in federal prison for his role in the widespread public corruption at the Rocky Boy’s Indian Reservation. The sentencing took place before U.S. District Judge Brian Morris today, in Great Falls.
Bribery and Theft relating to Tribal Insurance Monies
Sunchild plead guilty to bribery and theft in connection with a December 2011 transfer of $300,000 in tribal insurance funds to K & N Consulting, a company owned by Havre businessman Shad Huston.
According to prosecutors on December 22, 2011, K & N Consulting received and deposited a cashier’s check in the amount of $300,000 from the Chippewa Cree Tribe. An internal tribal document reflected that five tribal officials approved the disbursement ostensibly for “claim prep” by K & N Consulting—Chairman Sunchild, Vice-Chairman John Chance Houle, two members of the Insurance Recovery Team Councilman Ted Whitford and Chippewa Cree Construction Corporation CEO Tony Belcourt, and Tribal Secretary-Treasurer Janice Meyers. The funds were drawn on the Tribe’s bank account utilized for the Insurance Fund settlement monies that came to the tribe in the wake of flooding in 2010. No other supporting records or documents—such as invoices, itemized billing, receipts, pay requests, evidence of costs incurred or disbursements made for the work, or any other kind of standard supporting documentation—were found in a search of tribal records by employees of the Tribe.
K & N Consulting issued a $200,000 check from its business account to Tony Belcourt—noted as “consulting services” and dated December 20—which Belcourt deposited on December 23, the day following the tribal payment to K & N Consulting. From the remaining $100,000, of the $300,000 insurance check to K & N Consulting, Huston and K & N Consulting paid out an additional $57,800 to the benefit of the other three approving officials, including $24,977 paid to Tilleman Motors to clear the title and transfer Belcourt’s Chevrolet Suburban to Sunchild; $12,823 to Tilleman Motors to pay the bill on repairs and maintenance for Chance Houle’s vehicle; and a check payable to “Cash” in the amount of $20,000 with the memo section notation “Mervin Whitford – on CCCC Rocky Boys Tribe.” Mervin Whitford is the brother of Ted Whitford. Huston and K & N Consulting retained the remaining $42,200.
Embezzlement from the Rocky Boy Health Clinic
Sunchild had also entered a plea of guilty to the embezzlement of $25,000 from the Rocky Boy Health Clinic.
In 2012, Bruce Sunchild, then Chairman of the Chippewa Cree Business Committee and on the Board of Directors of the Rocky Boy Health Board Clinic, sought to get in-patient substance abuse treatment for his son and his son’s girlfriend. The White Sky Hope Center, located on the Rocky Boy’s Indian Reservation and serving the Chippewa Cree Tribe, receives approximately $90,000 a year from the IHS to pay for inpatient treatment for tribal members requiring those services. White Sky does not have inpatient treatment facilities, but the federal funding allows White Sky to refer 6 to 8 tribal members a year for inpatient treatment at facilities outside of the reservation. These 6 to 8 tribal members are chosen based on their conditions and/or if their situation constitutes a need for emergency in-patient rehabilitative care. These 6 to 8 tribal members must be referred by White Sky for the services to be covered by federal funding.
After the pair was turned down by White Sky, Chairman Sunchild directed them to meet with Dr. James Eastlick, Jr. Eastlick had told Chairman Sunchild that the only money available for treatment was through a White Sky referral, but the Chairman was adamant that the pair get treatment off the reservation and as soon as possible. Eastlick arranged for the pair to get an evaluation in Havre which was used to get a referral to the Rimrock Foundation in Billings. Chairman Sunchild went to Huston and asked that he “front” the money for treatment at Rimrock for his son and his son’s girlfriend with the promise that Huston would be repaid. Huston agreed and the two went to Rimrock as private patients (meaning they paid the full rate instead of a discounted rate that would have been expended had they went through White Sky). The total bill was $25,000.
In October of 2012, Chairman Sunchild directed Fawn Tadios, then the Executive Director of the RBHB Clinic, to issue two checks: Check # 107918 payable to Sunchild’s son’s girlfriend and Check # 107919 was payable to Sunchild’s son. In an October 11, 2012, email, Tadios told John Johnson in the RBHBC Finance office to issue the checks “to [Sunchild’s son] and [Sunchild’s son’s girlfriend]” and further advised that “I’ll [Tadios] take them over to Leon’s and he’ll [Huston] call them and have them sign them over to the pawn shop.” The pawn shop referred to in the email is Leon’s Buy and Sell which is owned and operated by Shad Huston. The repayment funds came from Contract Health Service (CHS). Johnson advised investigators that CHS does not pay for inpatient treatment. Only the White Sky Hope Center covers the cost for inpatient treatment.
Tax Evasion
Sunchild also plead guilty to tax evasion for his failure to report and pay tax on $144,477 of unreported income in and between 2009 and 2012.
In addition to the federal prison sentence, Sunchild was sentenced to pay $370,088 in restitution. Of that amount, restitution was ordered to the Internal Revenue Service in the amount of $45,088, and to Chippewa Cree Tribe in the amount of $325,000 — with $300,000 of that amount obligated jointly and severally with other defendants sentenced in connection with the December 201l transaction.
The case was brought by the federal agents of the Guardians Project and was investigated by the agents of the Offices of Inspector General of the Departments of Interior, Health and Human Services, and Environmental Protection Agency, as well as by the Internal Revenue Service Criminal Investigation Division.
Lambert Family Sentenced to Federal Prison for Brockton Embezzlement SchemeRead the Press Release
GREAT FALLS - Four members of a Brockton family were sentenced to federal prison terms today for their role in the embezzlement of over $130,000 from the Town of Brockton on the Fort Peck Indian Reservation, the latest development in the ongoing probe into public corruption involving federally funded programs known as the Guardians Project.
The United States Attorney’s Office announced that Desiree Lambert, 59, Bernard Lambert, 66, Kaycee Lambert, 35, and Kayla Lambert, 30, were all sentenced to prison during a federal court hearing on March 5, 2015, before U.S. District Judge Brian M. Morris.
The Lambert family was indicted in August of 2014 by a federal grand jury for wire fraud, public corruption, and aggravated identity theft. At the changes of plea, Assistant U.S. Attorney Ryan G. Weldon outlined the embezzlement scheme spearheaded by Desiree Lambert, then the Business Manager for the Town of Brockton. In her role as Business Manager, Desiree Lambert handled the municipality’s finances, books and records. Beginning in December 2012, Desiree Lambert began writing illegitimate checks to herself, her husband (Bernard Lambert), and her daughters (Kaycee and Kayla Lambert) and forging the signature of the Mayor of Brockton. The embezzlement scheme netted the Lamberts $132,563 over approximately a year-and-a-half time period. When interviewed, the Lamberts admitted to spending the money on gambling and other household items.
At sentencing, Weldon requested stiffer prison sentences for Bernard and Desiree Lambert due to their previous criminal history. In 2006, Bernard and Desiree Lambert embezzled $12,000 from the Department of Education while Bernard Lambert was the Superintendent of the Brockton School District and Desiree Lambert was the Director of the Fort Peck Department of Education. Desiree Lambert authorized four payments to her husband for writing ten grant applications on behalf of the Ft. Peck Department of Education. The alleged grant applications were for grants from various corporations and a 21st Century Grant from the U.S. Department of Education (DOE). Investigation revealed, through contact with the various corporations and the DOE, that none of the grant applications that Bernard Lambert was paid to write were ever received or funded. As a result of their past fraud, Bernard and Desiree Lambert each served a year in federal prison. After the pair was released from federal supervision in 2011, Desiree Lambert was hired to handle the finances of Brockton.
Weldon told the Court that “[u]ndeterred, this time the Lamberts regrouped and increased their criminal efforts with more vigor. As a result, they embezzled $132,563.95—many times more than that of the first conviction. Worse yet, they used their children to move money and feed their gambling addictions.”
Judge Morris sentenced Desiree Lambert to 44 months of prison, and Bernard Lambert received 20 months of prison. Desiree Lambert received an increase in her sentence, in part, because she abused and used her position with the Town of Brockton in order to embezzle public funds. Judge Morris also ordered Desiree and Bernard Lambert to serve three years of supervised release and to repay $132,563.95 in restitution.
Kayla Lambert and Kaycee Lambert facilitated the embezzlement and public corruption scheme by cashing fraudulent checks on behalf of their mother and father. Judge Morris sentenced Kayla Lambert to 5 months in federal prison, followed by two years of supervised release. Of the two years on supervised release, Kayla Lambert must spend 5 months in home confinement. Kaycee Lambert was sentenced to one more month in federal prison than Kayla. As a result, Kaycee received a federal prison sentence of 6 months, which will be followed by two years of supervised release. Of the two years on supervised release, Kaycee Lambert must spend 6 months in home confinement. Kayla Lambert was ordered to pay $93,656.00 in restitution, and Kaycee Lambert was ordered to pay $39,774.07 in restitution.
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that the Lamberts will serve all of the time imposed by the court. In the federal system, Bernard and Desiree Lambert do 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 Department of Justice Office of Inspector General.
Kentucky Man Pleads Guilty to Child Pornography ChargesRead the Press Release
MISSOULA – A Mount Washington, Kentucky man has changed his plea to guilty for his role in an international child pornography web-based bulletin board. Ryan Hatfield, 25, plead guilty today to conspiracy to advertise child pornography in front of U.S. Magistrate Judge Jeremiah C. Lynch. Sentencing has been set for June 11, 2015 where Hatfield faces maximum penalties of 30 years in prison, $250,000 in fines and lifetime supervised release.
Assistant U.S. Attorney Cyndee Peterson told the court that in April 2012, Hatfield became an active member of an international child pornography web-based bulletin board. Hatfield made posts in the advanced member section of the board which included URL hyperlinks and preview images of child pornography. In addition, Hatfield requested child pornography from other members and responded to and commented on posts of child pornography on the board.
The investigation, referred to as Operation Moon Runner, is an ongoing cooperative effort between the Criminal Division’s Child Exploitation and Obscenity Section, FBI, Montana Department of Criminal Investigations, Helena and Polson Police Departments, Immigration and Customs Enforcement’s Homeland Security Investigations, Montana Internet Crimes Against Children Task Force, and the Northumbria Police Department in the United Kingdom.
Federal Jury Convicts Illegal Alien of Trafficking Pounds of Meth to Great FallsRead the Press Release
GREAT FALLS – Late Tuesday a federal jury in Great Falls convicted Eduardo Ocegueda-Ruiz, 30, of Los Angeles, California of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, possessing a firearm in furtherance of a drug trafficking crime, being a felon in possession of a firearm, and being an illegal alien in possession of a firearm. After the guilty verdicts were read, Judge Brian Morris of Great Falls set sentencing for June 3, 2015. Ocegueda-Ruiz, who has been convicted previously of numerous drug felonies in California, faces life in prison, and if ever released, a lifetime of supervised release, and $10,000,000 in fines.
Ocegueda-Ruiz was charged in a multiple-count indictment with 19 other defendants as part of a methamphetamine conspiracy entitled “Operation Highline Crystal Highway.” The 19 co-defendants have all plead guilty to felony drugs and gun charges and are awaiting sentencing.
During the 2-day trial, Assistant U.S. Attorneys Jessica Betley and Tara Elliott presented evidence that during the winter and spring of 2013, the Russell Country Drug Task Force began to investigate a large-scale methamphetamine trafficking organization operating out of Great Falls. Throughout the next 18 months, agents discovered large quantities of methamphetamine were routinely being transported from Los Angeles, California, to various areas of Montana, including Butte, Great Falls, and Havre by Ocegueda-Ruiz and co-defendant, Joshua Rodriguez.
Intercepted conversations and informants provided evidence that Ocegueda-Ruiz wanted to come to Montana to “kick in doors with guns blazing,” and appeared to be Rodriguez’s strong arm and enforcer. Ocegueda-Ruiz told co-defendants that he is “illegal” and described how he crosses the border from Mexico into the United States. In addition, Ocegueda-Ruiz admitted to other members of the conspiracy that he and Rodriguez intended to kill another conspirator because the conspirator was “out of control” and causing too much trouble. Witnesses established that Ocegueda-Ruiz regularly brandished firearms as a way to intimidate and threaten other actors in the drug distribution operation.
Ocegueda-Ruiz and Rodriguez made a final trip from California to Montana in the early morning hours of September 25, 2014. At approximately 4 a.m., California Highway Patrol Troopers conducted a traffic stop on a car driven by Rodriguez near Victorville, California. Troopers identified Rodriguez as the driver of the car and Ocegueda-Ruiz as the passenger. The California Highway Patrol’s drug dog alerted to the rear of the car where troopers seized 888.1 grams, or approximately two pounds, of pure methamphetamine. Troopers also seized a scale and empty baggies. Aware that Rodriguez and the defendant were the subject of the Montana investigation, and that allowing the pair to continue on would further that investigation, the troopers advised Ocegueda-Ruiz and Rodriguez that criminal charges would be forthcoming but that they would be released until charges were filed. Ocegueda-Ruiz and Rodriguez were allowed to leave and continued, under law enforcement surveillance, on to Montana.
When Rodriguez and Ocegueda-Ruiz arrived in Montana, they dropped off an amount of methamphetamine in Butte in the early morning hours and then continued on to Great Falls. Ocegueda Ruiz and Rodriguez checked into a Great Falls hotel and then Ocegueda Ruiz went directly to the Holiday Village mall where he conducted a transaction involving the exchange of guns and drugs. Ocegueda Ruiz went into a local restaurant and was arrested when he came back out. Ocegueda-Ruiz had a loaded 9mm semi-automatic pistol in his waistband and a loaded 40 caliber pistol in a restaurant take-out bag. He was also carrying about 70 rounds of ammunition. A search of the local hotel room where Ocegueda-Ruiz and Rodriguez had registered upon their arrival in Great Falls yielded another five pounds, more or less, of pure methamphetamine. The street value of the methamphetamine seized by the California Highway Patrol and the Russell Country Drug Task Force was approximately $340,000.
The investigation is a cooperative effort between the Russell Country Drug Task Force which includes law enforcement officers from the Great Falls Police Department, Cascade County Sheriff’s Office, Teton County Sheriff’s Office, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the U.S. Border Patrol, as well as the Havre Police Department, Montana Division of Criminal Investigation, U.S. Internal Revenue Service, California Highway Patrol, and Orange County Sheriff’s Office.
Jury Convicts Billings Felon of Unlawfully Possessing a FirearmRead the Press Release
BILLINGS – Following one-and-half days of trial, Mack Edward Harris, 49, of Billings, Montana, was convicted of being a felon in possession of a firearm and possessing a firearm after a misdemeanor conviction for domestic violence. U.S. District Judge Susan Watters presided over the trial. Harris now faces a maximum ten years in prison on each count, a $250,000 fine, and up to three years of supervised release.
Evidence presented at trial by Assistant United States Attorneys Paulette Stewart and Colin Rubich showed that on March 10, 2013, Harris possessed a firearm in Billings, Montana. At the time, he had already been convicted of a misdemeanor crime of domestic violence and a felony. On March 10, 2013, Billings Police Department officers responded to a report of a domestic, physical disturbance in an apartment on Industrial Avenue. The complainant heard fighting, as well as the female reference that the male had a firearm under the mattress.
After officers gained entry into the apartment to investigate, they conducted a safety sweep. On the second sweep, the officers discovered Mack Edward Harris in a cupboard under the sink. Harris denied any knowledge of a firearm in the apartment. After obtaining consent to search the apartment, the officers found a Hi-Point 9mm pistol under the dresser in the bedroom. A trace of the firearm confirmed that it belonged to a man who had sold it to Harris not knowing that Harris was prohibited from owning a firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Billings Police Department.
Justice Department Inspector General Commends Montana U.S. Attorney’s Guardians ProjectRead the Press Release
WASHINGTON, D.C. – Department of Justice Inspector General Michael Horowitz lauded the Montana U.S. Attorney’s Office with an award for innovation in cooperation and effective investigation this week at a ceremony in Washington, D.C.
At a ceremony at the Department of Justice, Executive Assistant U.S. Attorney Carl Rostad of Great Falls accepted the Inspector General’s Collaboration Award on behalf of the U.S. Attorney’s Guardians Project, an anti-corruption task force which seeks to investigate and prosecute bribery, fraud and embezzlement in federally funded programs in Indian Country. Rostad is generally considered the architect of the unique strike-force model which elevated the role of the Offices of Inspector General (OIGs) in corruption investigations. Federal agencies such as Interior, Health and Human Services, Justice, Education, Housing and Urban Development, and Environmental Protection Agency spend billions of dollars every year supporting tribal services. The OIGs are responsible for seeking out fraud waste and abuse in the programs of the agencies to which they are attached. The OIGs have both law enforcement and review responsibilities which facilitate the use of the Guardians investigations as a basis for program reform and changes in the way federal dollars are awarded and accounted for. Agents working for the Inspectors General specialize in the investigation of fraud and corruption, and other forms of abuse of taxpayer monies, and possess specialized knowledge of federal programs. U.S. Attorney Mike Cotter embraced the program “as a way to do more than hold a particular defendant accountable, but also as a way to find errors in oversight and management of federal tax dollars that could lead to better government on the front end of the grants and contracts process.”
Since the Guardians Project began obtaining indictments from the federal grand jury in late 2012, thirty five indictments and two informations have been filed charging 77 defendants and resulting in over 100 felony convictions for crimes including conspiracy, bribery, fraud, embezzlement, extortion, obstruction of justice, money laundering, blackmail, and tax evasion.
The Guardians Project created a partnership that merged the expertise and oversight responsibilities of the various OIGs with the resources and traditional public corruption investigation responsibility of the Federal Bureau of Investigation and the Internal Revenue Service.
Notable Guardians prosecutions are the convictions of six defendants associated with the Po’Ka Program for disadvantaged youth on the Blackfeet reservation, the prosecution and conviction of Tony Belcourt, Chief Executive Officer of the Chippewa Cree Construction Corporation, and former tribal Chairmen John Chance Houle and Bruce Sunchild of the Rocky Boy’s reservation. Eight members of the Dale Old Horn family were convicted in 2012 and 2013 for their role in a scheme to defraud the Crow Tribe using positions with the Crow Tribe Historic Preservation Office. The former Chief Executive Officer of the Rocky Boy Health Clinic, Fawn Tadios, and former Clinic Finance Manager Theodora Morsette were convicted by juries in 2014 and 2015, respectively.
At the Wednesday ceremony, Rostad was joined by Resident Agent in Charge Joe Waller, Billings, of the Department of Interior’s Office of Inspector General. Rostad credited Waller with making the Guardian’s Project a success. Rostad told Inspector General Horowitz: “I may have designed it, but Agent Waller makes it work.”
It is gratifying to present this Collaboration Award to AUSA Rostad for his groundbreaking efforts to coordinate the federal law enforcement community's response to corruption and fraud in Indian Country," said Inspector General Horowitz. "Corruption, fraud, and many other crimes do not fit neatly within the jurisdiction of individual federal agencies, and innovative collaborative efforts such as the Guardians Project are exactly the kind of efficient and effective solutions we need to achieve success in this critical area. I commend AUSA Rostad, Agent Waller, and all those involved in the Guardians Project for their work so far, and I look forward to working with them more closely in the future."
Information: Federal Court ArraignmentsRead the Press Release
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 Judge Ostby in Billings on February 26, 2015, and entering pleas of Not Guilty were:
- WILLIAM MAURICE SMITH, a 56-year-old resident of Billings, appeared on charges of conspiracy 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, SMITH faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference: 15-15
- CARA M. VOLMER, a 38-year-old resident of Laurel, appeared on charges of possession of a controlled substance. If convicted of the charge contained in the information, VOLMER faces 1 year in prison, $100,000 in fines and 1 year supervised release. The case was investigated by the Drug Enforcement Administration PACER Case Reference: 15-01
Appearing before U.S. Magistrate Judge Johnston in Great Falls on February 25, 2015 and entering pleas of Not Guilty were:
- EMERSON PAUL BIRDTAIL II, a 29-year-old resident of Harlem, appeared on charges of assault resulting in serious bodily injury. If convicted of the charge contained in the indictment, BIRDTAIL 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: 15-09
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.