District of Montana

MISSOULA – Roy Eugene Baker, Jr., 71, of Missoula, MT, was sentenced today in Missoula federal court.  In July, Baker pleaded guilty before U.S. Magistrate Jeremiah Lynch to one count of Aiding or Advising a False Tax Return.  Chief U.S. District Court Judge Dana Christensen Sentenced Baker to five years’ probation and the payment of $11,768.24 in restitution.  Baker was initially charged by indictment with six counts of Aiding or Advising a False Tax Return and one count of False Statements to a Government Agency.

The IRS began investigating Baker and his tax preparation company, Bak-Tax Management Service, following a complaint by one of Baker’s clients that Baker had falsely inflated business expenses on the client’s tax return.  Two undercover IRS agents went to Bak-Tax to have tax returns prepared.  Baker prepared a return for one of the agents that included false business expenses in the amount of $4,433.  When the agent questioned Baker about the figure, Baker responded, “I gave you a few more supplies there.”

When subsequently questioned by the IRS about the cost of goods figure reported on the undercover agent’s tax return, Baker lied, stating that the figure had been supplied by the client.  An audit of all of Baker’s clients revealed $467,737 in underreported tax to the IRS.  The Government charged Baker based on $59,789 of criminal loss to the IRS from those clients whose records and testimony could prove beyond a reasonable doubt that Baker falsified their tax returns.  Baker’s methods included creating false schedule C businesses, inflating business expenses, and omitting income reported to him by his clients.  When some of Baker’s clients confronted him, he claimed ignorance and refused to help them with the audit process.  In its recommendation for sentencing, the United States noted that Baker’s actions resulted in a significant fraud against both the United States Treasury and his own clients, many of whom owed substantial amounts to the IRS as a result of Baker’s actions.

This case was prosecuted by Assistant U.S. Attorney Chad Spraker and investigated by the Internal Revenue Service.

MISSOULA – Anthony Dane Roberty, 54, of Bozeman, Montana, was sentenced today to 84 months incarceration followed by 15 years supervised release, for receipt of child pornography.  Chief U.S. District Court Judge Dana Christensen sentenced Roberty following a July 16, 2015, hearing held before U.S. Magistrate Jeremiah Lynch, in which Roberty pleaded guilty to the offense.  The sentence will run concurrently with state sentences Roberty is serving for felony DUI.

In an Offer of Proof filed by Montana Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have proven that in March 2014, an FBI agent downloaded files depicting child pornography as part of an online investigation to identify individuals trafficking in child pornography using BitTorrent.  The IP address for the downloaded files was connected to Roberty’s residence.  The agent obtained a search warrant and conducted a search of Roberty’s residence in September of 2014.  Roberty was interviewed on the day of the search and admitted he used BitTorrent and that agents would find child pornography on his computer and an external hard drive.

A computer and portable hard drive seized from Roberty’s residence were found to contain child pornography.  A forensic examiner determined that the computer contained BitTorrent client software and had been used to send and receive files using BitTorrent.  The examiner discovered numerous graphics depicting children engaged in sexually explicit conduct, including sexual conduct between children and adults.  The examiner also found video files that depicted child pornography.  The files were created between February and April of 2014.

“Once again, our partnerships with state and federal law enforcement agencies have given us the resources to track down consumers and distributors of child porn,” said Montana U.S. Attorney Mike Cotter.  “By working together under the Department’s Project Safe Childhood Initiative, we help keep children from being victimized by these types of predatory criminals.”  David A. Thompson, Special Agent in Charge of Homeland Security Investigations in Denver stated: “this significant prison sentence reflects the serious criminal nature of child exploitation, and the resulting permanent trauma inflicted on its young and helpless victims.  Our HSI special agents are trained to identify, investigate and pursue prosecution against these child predators, and rescue their victims – and we take that responsibility very seriously.”

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 involved in the case included the FBI, Homeland Security Investigations, the Montana Division of Criminal Investigation and the Bozeman Police Department.  Assistant United States Attorney Cyndee Peterson prosecuted this case.

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

Appearing before U.S. Magistrate Ostby in Billings, on October 23, 2015 and entering pleas of Not Guilty were:

• JORDALE THOMAS REDWOLF, a 27-year-old resident of Wyola, appeared on charges of felon in possession of a firearm, possession of a stolen firearm, possession of an unregistered firearm, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charges contained in the indictment, REDWOLF faces 10 years in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  15-76

Appearing before U.S. Magistrate Ostby in Billings, on October 22, 2015 and entering pleas of Not Guilty were:

• ANTHONY DAVID HOPWOOD, a 30-year-old resident of Billings, appeared on charges of possession of a firearm by a person convicted of domestic violence and possession of a stolen firearm.  If convicted of the most serious charge contained in the indictment, HOPWOOD 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.  14-106

Appearing before U.S. Magistrate Lynch in Missoula, on October 20, 2015 and entering pleas of Not Guilty were:

• PAUL GEE CHIANG, a 41-year-old resident of Renton, Washington, appeared on charges of conspiracy to possess with intent to distribute oxycodone, possession with intent to distribute oxycodone, conspiracy to acquire or obtain possession of a controlled substance by deception, and acquiring or obtaining possession of a controlled substance by deception.  If convicted of the most serious charges contained in the indictment, CHIANG faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-21

Appearing before U.S. Magistrate Johnston in Great Falls on October 20, 2015 and entering pleas of Not Guilty were:

• NEAL PAUL ROSETTE, a 53-year-old resident of Box Elder, appeared on charges of conspiracy to defraud the Chippewa Cree Tribe, scheme to defraud the Chippewa Cree Tribe/wire fraud; bribery/accepting, income tax evasion and willful failure to file tax returns.  If convicted of the most serious charges contained in the indictment, ROSETTE faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the U.S. Department of Interior Office of Inspector General, Internal Revenue Service, U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.  PACER Case Reference.  15-61

Appearing before U.S. Magistrate Ostby in Billings on October 19, 2015 and entering pleas of Not Guilty were:

• MORGAN MARIE ANDERSON, a 24-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, ANDERSON 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.  PACER Case Reference.  15-94

• CHRISTOPHER BRADLEY CHASE, a 25-year-old resident of Billings, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, CHASE 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.  15-95

• REGINA DENISE HARDEMAN, a 54-year-old resident of Barstow, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, HARDEMAN faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-111

• CHRISTOPHER L. HARGITT, a 41-year-old resident of Glendive, appeared on charges of felon in possession of a firearm, possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charges contained in the indictment, HARGITT faces life in prison, $5,000,000 in fines and 5 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  15-92

• LARRY BURNELL SEPT, JR., a 43-year-old resident of Richmond, California, appeared on charges of transportation of a person with intent to engage in criminal sexual activity.  If convicted of the charge contained in the indictment, SEPT 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.  15-114

Appearing before U.S. Magistrate Ostby in Billings on October 16, 2015 and entering pleas of Not Guilty were:

• JERRY RAY DEGOLYER, a 51 year-old resident of Sidney, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, DEGOLYER faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by State of Montana Division of Criminal Investigations and the Drug Enforcement Administration.  PACER Case Reference.  15-108

• ROBERT LELAND HICE, a 68-year-old resident of Billings, appeared on charges of distribution of child pornography, receipt of child pornography and possession of child pornography.  If convicted of the most serious charges contained in the indictment, HICE faces 20 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  15-99

• WILLIAM WOODROW SPRINGFIELD, SR., a 53-year-old resident of Lodge Grass, appeared on charges of possession with intent to distribute methamphetamine.  If convicted of the charge contained in the indictment, SPRINGFIELD faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  15-121

Appearing before U.S. Magistrate Lynch in Missoula on October 14, 2015 and entering pleas of Not Guilty were:

• CHAD WILLIAM HEDGES, a 41-year-old resident of Bozeman, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine and felon in possession of a firearm.  If convicted of the most serious charges contained in the indictment, HEDGES faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Missouri River Drug Task Force.  PACER Case Reference.  15-28

Appearing before U.S. Magistrate Ostby in Billings on October 13, 2015 and entering pleas of Not Guilty were:

• TAVIS ALAN-CODY PAIR, a 31 year-old resident of Billings, appeared on charges of possession of an unregistered firearm and felon in possession of a firearm and ammunition.  If convicted of the most serious charge contained in the indictment, PAIR 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.  15-30

• TAVIS ALAN-CODY PAIR, a 31 year-old resident of Billings, appeared on charges of possession of conspiracy to distribute methamphetamine and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, PAIR 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.  PACER Case Reference.  15-101

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

HELENA – Drumlummon Gold Corporation (DGC) and its operator, Seibert Smith, 74, of Helena, MT, pleaded guilty yesterday to failing to comply with a U.S. Department of Labor Mine Safety and Health Administration (MSHA) order.  The charge stemmed from a superseding information filed in late September by the United States.  Smith and a representative of the Corporation appeared before District Court Judge Charles Lovell in Helena to enter the guilty pleas.  Judge Lovell ordered DGC to pay a $17,500 fine and a $17,500 community service payment to the State Department of Labor, Mine Safety Bureau.  Smith must pay a $1,750 fine.

The sentences were a result of a plea agreement entered into by the United States and the defendants.  Had the case proceeded to trial, the United States was prepared to prove that DGC, the operator of an underground gold mine at Marysville, Montana, operated in such a way and produced products that affected interstate commerce from 2011 to 2013.  During this period, Smith was a manager or agent of DGC and served as the mine’s safety supervisor.    The maximum penalty for failure to comply with an MSHA order is one year imprisonment and $250,000 in fines for individuals, and $250,000 in fines for an organization.

Acting on an anonymous complaint about an unreported accident at the mine involving a utility vehicle, MSHA sent an inspector to investigate and interview the mine superintendent alleged to be responsible for the accident.  Smith was initially unable to supply the superintendent’s training records but subsequently provided records indicating that the superintendent had been trained on the utility vehicle in September of 2011.  Upon further inspection, the MSHA inspector noted that the records appeared to have been falsified.  MSHA determined that the equipment-specific training allegedly provided to the Superintendent could not have occurred in 2011 as indicated by the training records, because the utility vehicle did not arrive on mine property until March of 2012.  The United States was prepared to demonstrate that Smith was aware of the fact that the superintendent could not have received the training on the date indicated in the training record he provided to MSHA.

Smith and DGC were originally indicted in May 2015 on two counts of false statements and falsification of mine records.  Smith and DGC ultimately pleaded guilty to the superseding information filed by the United States on September 28th, alleging failure to comply with an MSHA order.  In briefing provided to the court, the United States supported a sentence requiring payment of community service to the State Department of Labor and Industry Mine Safety Bureau.  That agency administers grants for mine safety training.  The community service payment by DGC will provide safety training to Montana miners required by both state and federal law.

“This is the first criminal case prosecuted under the Mine Safety and Health Act in Montana” said U.S. Attorney Mike Cotter.  “The decision to pursue criminal sanctions is symbolic of the United States’ commitment to stringently protect the safety of workers in this industry.”  MSHA Assistant Secretary Joseph A. Main stated: "Mine operators are responsible for training their miners so that they can work safely in the mining environment, and when they don’t, they will be held accountable.  It’s an investment that will help ensure these men and women return home to their families after every shift."

The case was investigated by the U.S. Department of Labor Mine Safety and Health Administration and was prosecuted by Assistant U.S. Attorney Kris McLean.

GREAT FALLS –The United States Attorney’s Office announced that DARIN LEE MILLER, 43, of Havre, Montana, pleaded guilty during a federal court hearing in Great Falls, Montana, on October 13, 2015, before U.S. District Judge Brian M. Morris, to filing false federal income tax returns in which he did not report the interest he received from extensive tribal loans. In a plea agreement with the United States, Miller will serve a sentence of nine months in jail, pay a $90,000 fine, and pay the Internal Revenue Service $73,125.50 in taxes, penalties and interest within 18 months of his sentence.  Although the government presented the plea agreement as conditioned upon Miller receiving that sentence, Judge Morris ordered a presentence investigation and set sentencing for January 21, 2016.  Judge Morris may at that time reject the plea agreement and allow Miller to proceed to trial on felony charges of tax evasion.

During the period of the Superseding Information, Darin Miller was a pharmacist at the Rocky Boy Health Clinic (RBHC or the Clinic).  The psychologist at the Clinic was Dr. James Eastlick.

Eastlick 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.  After a couple of years running the loan program, Eastlick brought in Miller as a partner with the intention of turning the business over to Miller. The loans Eastlick made for the Tribe generally included interest rates of 10%, and were paid back within 10 weeks of Eastlick loaning the money.  On an annualized percentage rate (APR) basis, loans from the JE Loan program would constitute a 70% to 80% return.

With regard to the loans to the tribal employees, Eastlick and Miller had an arrangement with the Tribe that they would provide loans to tribal employees, and to guarantee the repayment of 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 and Miller representing both interest and principal.  The JE Loan Program had a similar working relationship with the Finance Offices of the Tribe’s various subsidiary enterprises, such as the Rocky Boy Health Clinic and the Rocky Boy’s School District, which handle their payroll internally and not through the Tribe’s main finance office.  These loans were also short-term loans that carried an interest rate of between 10% and 15%; with an annualized rate being significantly higher—75% to 100% return if the loans were calculated over the full year.

Both Eastlick and Miller were responsible for their own tax liability for the interest income they earned.  Miller claimed $10,000 of interest income on his 2010 tax return, but did not claim interest income from the tribal loan program on any other years.  Once under investigation, Miller sought the services of a Great Falls accountant to amend his returns to include interest from the lending business.  Miller told the accountant, at the time he originally filed his returns, he did not think he had to claim the interest income until he used it.  However, Miller had claimed interest income from other sources and had claimed interest income on his prior years’ tax returns and even the returns filed for the tax years under investigation—2009, 2010, and 2011.

The amounts of unreported interest income were significant.  Miller earned $17,148.68, $76,373.37, and $23,378.17 in interest income from tribal loans in 2009, 2010, and 2011 respectively.  According to the accountant, Miller had not kept track of the interest in the tax years in which it was realized and Miller and his accountant had to retrieve records from the Tribe to have his tax returns amended.  Even when amended, Miller’s returns failed to account for significant interest received.

According to the accountant, Miller did not reveal that at some point during these years he increased the interest rate he charged for individual loans from 10% to 12.5% until after the amended returns had been prepared.  It would have been important for a tax preparer to know that interest rate had been increased to 12.5% in order to accurately amend Miller’s tax returns.  Eastlick also knew Miller had increased the interest rate he charged to 12.5% when he took over the loan program with the CCT.  Some employees of the RBHC and loan recipients also verified Miller raised his interest rate to 12.5%.

Miller had a bank account with Wells Fargo Bank.  From 2009, when Miller first became involved with Eastlick’s loan program, and 2011, Miller deposited $635,818.48 in tribal loan checks into his Wells Fargo Bank account.  This figure does not include any checks Miller transacted into cash at Wells Fargo.  In addition to the bank account with Wells Fargo, during the same time period, Miller cashed $71,109.53 in checks at Leon’s Buy & Sell and another $142,042.87 at Leon’s Finance, businesses operated by Havre businessman, Shad Huston.   

Miller’s conviction on tax charges is the latest in a series of prosecutions brought and convictions obtained by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011.

Once Miller plead guilty to the tax charges, the Court remanded him into custody to begin serving the sentence outlined in the agreement.

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 October 8, 2015 and entering pleas of Not Guilty were:

• JACOB FINLEY, a 23-year-old resident of Browning, appeared on charges of false information and hoaxes.  If convicted of the charge contained in the indictment, FINLEY faces 5 years in prison, $250,000 in fines and 1 year supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  15-65

• RICHARD LITTLE DOG, a 50-year-old resident of East Glacier, 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, LITTLE DOG 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.  15-66

• CHARLES PAUL REEVIS, a 24-year-old resident of Browning, 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, REEVIS 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.  15-64

Appearing before U.S. Magistrate Ostby in Billings on October 8, 2015 and entering pleas of Not Guilty were:

• QUINDELL JORDAN BULLTAIL, a 25-year-old resident of Lodge Grass, appeared on charges of depredation of government property and theft of government property.  If convicted of the most serious charge contained in the indictment, BULLTAIL faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was invested by the Bureau of Indian Affairs.  PACER Case Reference.  15-89

Appearing before U.S. Magistrate Lynch in Missoula on October 7, 2015 and entering pleas of Not Guilty were:

• NATASHA OAKLEY, a 34-year-old resident of Sammamish, Washington, appeared on charges of conspiracy to possess with intent to distribute oxycodone, possession with intent to distribute oxycodone, conspiracy to acquire or obtain possession of a controlled substance by deception, and acquiring or obtaining possession of a controlled substance by deception.  If convicted of the most serious charges contained in the indictment, OAKLEY faces 20 years in prison, $1,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-21

• VERA OAKLEY, a 64-year-old resident of Sammamish, Washington, appeared on charges of conspiracy to possess with intent to distribute oxycodone, possession with intent to distribute oxycodone, conspiracy to acquire or obtain possession of a controlled substance by deception, and acquiring or obtaining possession of a controlled substance by deception.  If convicted of the most serious charges contained in the indictment, OAKLEY faces 20 years in prison, $1,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-21

Appearing before U.S. Magistrate Johnston in Great Falls on October 6, 2015 and entering pleas of Not Guilty were:

• LORALEE WAXCHA RED DOG, a 21-year-old resident of Poplar, appeared on charges of bank employee fraud, aggravated identity theft and theft from tribal express.  If convicted of the most serious charges contained in the indictment, RED DOG faces 30 years in prison, $1,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  15-53

• CASSIDY WINTERS, a 28-year-old resident of Great Falls, appeared on charges of distribution and receipt of child pornography.  If convicted of the most serious charges contained in the indictment, WINTERS faces 20 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the U.S. Secret Service, Flathead County Sheriff’s Office and Montana Internet Crimes Against Children Task Force.  PACER Case Reference.  15-58

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

BILLINGS – A 42-year-old Lockwood man was sentenced today to 120 months in federal prison followed by 15 years supervised release, for two counts of coercion and enticement of a minor, two counts of attempted coercion and enticement of a minor, and one count of distribution of child pornography.  Scott James Nichols, a former Billings West High School basketball coach, pleaded guilty to all five counts in June of this year.  U.S. District Court Judge Susan Watters handed down the sentence.

In an Offer of Proof filed by Montana Special Assistant U.S. Attorney Ole Olson, the government stated that if the case had proceeded to trial, the government was prepared to prove that Nichols engaged in multiple Facebook chats with at least four adolescent girls ranging in age from 13 to 15 years old.  Nichols posed as a high-school aged student or an adolescent girl during these chats.  Using an alias, he requested that the girls send sexually explicit pictures of themselves to his cell phone, or, in one case, expose their genitalia to him on a web cam.  Two of the victims were identified and the government was prepared to present their testimony at trial.  The Facebook accounts associated with Nichols’ aliases were accessed from IP addresses associated with the Billings Public Schools and Nichols’ home computer.  The Government would additionally have proven that Nichols sent images of minors engaged in sexually explicit conduct from the same aliases he used to request images from underage girls.  The Government was prepared to present at least 16 emails with attached images.  Finally, the Government would have offered expert testimony that a forensic analysis of multiple electronic devices owned or used by Nichols, including his personal and work computers and his cell phone, were used to engage in the prohibited activity.

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 involved in this case include the FBI, the Montana Division of Criminal Investigation, and the Bozeman and Billings Police Departments.

Special Assistant United States Attorney Ole Olson prosecuted this case.  Because there is no parole in the federal system, Nichols will have to serve at least 85% of his sentence before he is released from prison.

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 September 28, 2015 and entering pleas of Not Guilty were:

• BRIDGETTE MARIE BLACKCROW, a 26-year-old resident of Lodge Pole, appeared on charges of felony child abuse.  If convicted of the charge contained in the indictment, BLACKCROW 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.  15-47

Appearing before U.S. Magistrate Johnston in Great Falls on September 23, 2015, and entering pleas of Not Guilty were:

• NATHAN MOUNTAIN CHIEF, a 32-year-old resident of Browning, appeared on charges of burglary.  If convicted of the charge contained in the indictment, MOUNTAIN CHIEF faces 20 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.  15-60

Appearing before U.S. Magistrate Ostby in Billings on September 22, 2015, and entering pleas of Not Guilty were:

• JOSE ISIDRO OROZCO-HERRERA, a 29-year-old resident of Jerome, Idaho, appeared on charges of possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and illegal alien in possession of firearm and ammunition.  If convicted of the most serious charges contained in the indictment, OROZCO-HERRERA faces life in prison, $1,000,000 in fines and 5 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  15-87

• ARTIE LEWIS SMELLS, a 50-year-old resident of Pryor, appeared on charges of felon in possession of firearms and ammunition.  If convicted of the charge contained in the indictment, SMELLS 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.  15-117

Appearing before U.S. Magistrate Ostby in Billings on September 21, 2015, and entering pleas of Not Guilty were:

• ROBERT ALLEN ROMO, a 41-year-old resident of Billings, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, ROMO 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.  15-115

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

MISSOULA – A federal judge sentenced Angel Iturbe-Gonzales, 37, of Mexico, to 151 months in federal prison, followed by five years supervised release for conspiracy and possession with intent to distribute methamphetamine.  The sentences for both counts will run concurrently.  Chief U.S. District Court Judge Dana Christensen issued the sentence.

The indictment and eventual conviction that gave rise to the sentence was initiated by a traffic stop of Gonzales by the Montana Highway Patrol in Gallatin County in April of 2014.  During the stop, Gonzales consented to a dog being run around his vehicle.  The dog alerted for the presence of narcotics.  Two search warrants were obtained and a trap in the vehicle was discovered, which contained approximately 16 pounds of cocaine and more than four pounds each of methamphetamine and heroin.  Gonzales was indicted by a grand jury in September of 2014 and arrested in California in January of 2015.  He was convicted of both counts in April of 2015 following a jury trial in Butte, Montana.

“The Missouri River Drug Task Force, and similar task forces across the state expand the law enforcement resources that can be brought to bear against the scourge of meth in Montana,” said Montana U.S. Attorney Mike Cotter.  “Working together, law enforcement partners have more tools to bring to bear against the social and economic toll Meth takes here.  A sentence like this sends a pointed message to the criminals who come to this state with the goal of distributing poisonous wares; that such activity will not be tolerated in Montana.”

“HSI aggressively pursues international organized crime globally and here in Montana,” said David A. Thompson, special agent in charge of HSI Denver. “Bringing Gonzalez to justice to face a significant prison sentence was a collaborative partnership among HSI, the U.S. Attorney’s office, the Missouri River Drug Task Force, the Montana Highway Patrol and the Drug Enforcement Administration. The strength of these law enforcement partnerships makes our communities safer for everyone.

Assistant U.S. Attorney Tara Elliot prosecuted the case.  The Case was investigated by the Missouri River Drug Task Force, Homeland Security Investigations (HSI) and the Montana Highway Patrol.  The defendant will have to serve at least 85% of his sentence before being released from federal prison.

HELENA – Dennis Peiker, 61, of Lincoln, Montana, pleaded guilty today to one count of tax evasion and two counts of felon in possession of a firearm.  The charges stemmed from two indictments arising from years of tax evasion and firearms found at Peiker’s residence in 2011 and 2015.  Peiker appeared before District Court Judge Charles Lovell in Helena to enter the guilty pleas.

The maximum sentence on the tax evasion charge is five years imprisonment, a $250,000 fine, and three years of supervised release.  Each charge of felon in possession of a firearm carries a maximum sentence of 10 years imprisonment, a $250,000 fine, and three years of supervised release.  Peiker was convicted in August of this year of the manufacture of more than 100 marijuana plants in connection with the same incident that lead to the 2015 firearms possession charge.  Peiker also has a prior conviction for two counts of tax fraud in 1999, which made it illegal for him to possess firearms.

In addition to Peiker’s guilty plea to the three counts in the indictments, Peiker also has agreed to pay restitution amounting to nearly $410,000 in back taxes owed to the Internal Revenue Service for the tax years 2002 to 2009.

Had the case proceeded to trial, the United States was prepared to prove that following his 1999 conviction for tax fraud, Peiker failed to make tax payments for the years 2002-2009.  As part of his attempted evasion, Peiker concealed the true nature of his assets, made false statements to IRS officials, and placed funds and property in the names of others.  With respect to the firearms charges, the United States expected to prove that on two separate occasions Peiker illegally possessed a semi-automatic pistol, two single-shot rifles, three automatic rifles, a shotgun and ammunition.  Judge Lovell set a sentencing date of April 14, 2016 in Helena.

The case was investigated by the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Lewis and Clark County Sheriff’s Office as part of the Missouri River Drug Task Force.  The case was prosecuted by Assistant U.S. Attorneys Paulette Stewart and Chad Spraker and Trial Attorney John Mulcahy of the DOJ’s Tax Division.

MISSOULA – Yusuf Deshawn Reeves, 47, of Spokane Valley, Washington, was sentenced Thursday in Missoula federal court to drug and prostitution-related racketeering charges.  In May, Reeves plead guilty to one count of conspiracy to possess with the intent to distribute methamphetamine and heroin and one count of interstate travel in aid of racketeering.  Chief U.S. District Court Judge Dana Christensen Sentenced Reeves to 121 months incarceration on the conspiracy to distribute charge and 60 months for the racketeering charge.  The sentences will run concurrently.  Following his release, Reeves will be subject to five years supervised release for the drug charge and three years for the racketeering charge, also to run concurrently.

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 demonstrated that between February and November of 2014, Reeves possessed and entered into an agreement with co-conspirators to distribute more than 50 grams of methamphetamine and more than 100 grams of heroin.  In addition, between June and August of 2014, Reeves traveled in interstate commerce with the intent to promote, manage, establish, carry on or facilitate prostitution.  The government was prepared to prove that during this time period, Reeves traveled between Spokane, Washington, and Missoula Montana, transporting drugs and at least four women with the intent to promote prostitution in violation of Montana Law.  Reeves is the second of four co-conspirators to be sentenced in this prostitution and drug-running operation.

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.

 

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

Appearing before U.S. Magistrate Lynch in Missoula on September 16, 2015, and entering pleas of Not Guilty were:

• JACQUELINE DIANE ERGER, a 45-year-old resident of Kalispell, 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, ERGER faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by Homeland Security Investigations and the Northwest Drug Task Force.  PACER Case Reference.  15-16

• JACOB EDWARD GENTRY, a 45-year-old resident of Somers, 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, GENTRY faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by Homeland Security Investigations and the Northwest Drug Task Force.  PACER Case Reference.  15-16

Appearing before U.S. Magistrate Johnston in Great Falls on September 15, 2015, and entering pleas of Not Guilty were:

• BRYCE GLENN GRANBOIS, a 44-year-old resident of Poplar, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, GRANBOIS faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by Federal Bureau of Investigation.  PACER Case Reference.  15-52

Appearing before U.S. Magistrate Lynch in Missoula on September 14, 2015, and entering pleas of Not Guilty were:

• CHASTON ANTONIO FORT, a 20-year-old resident of Hollywood, Florida, appeared on charges of conspiracy to commit wire fraud, wire fraud and aggravated identity theft.  If convicted of the most serious charge contained in the indictment, FORT faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by Federal Bureau of Investigation and the Billings Police Department.  PACER Case Reference.  15-22

Appearing before U.S. Magistrate Johnston in Great Falls on September 14, 2015, and entering pleas of Not Guilty were:

• KAYLA MARIE RACINE, a 27-year-old resident of Browning, 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, RACINE faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by Federal Bureau of Investigation.  PACER Case Reference.  15-51

Appearing before U.S. Magistrate Lynch in Missoula on September 8, 2015, and entering pleas of Not Guilty were:

• ATHENA PATRICIA SCHARNHORST, a 45-year-old resident of Polson, 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, SCHARNHORST faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Missoula HIDTA.  PACER Case Reference.  15-55

Appearing before U.S. Magistrate Ostby in Billings on September 8, 2015, and entering pleas of Not Guilty were:

• MARCO POLO OVALLE-MARTINEZ, a 28-year-old resident of Mexico, appeared on charges of illegal reentry.  If convicted of the charge contained in the indictment, OVALLE-MARTINEZ faces 10 years imprisonment, $250,000 in fines and 3 years supervised release.  The case was investigated by Department of Homeland Security.  PACER Case Reference.  15-112

• ROBERT PEREZ SCHILLING, a 27-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine; carrying a firearm during and in relation to a drug trafficking crime. If convicted of the most serious charges contained in the indictment, SCHILLING faces life in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the Federal Bureau of Investigation Task Force.  PACER Case Reference.  15-61

Appearing before U.S. Magistrate Johnston in Great Falls on September 8, 2015, and entering pleas of Not Guilty were:

• STEPHEN RAY AFTERBUFFALO, a 41-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, AFTERBUFFALO 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.  15-55

• DOUGLAS MONTGOMERY LIU, a 35-year-old resident of Sunnyvale, California, appeared on charges of conspiracy to commit robbery affective commerce, robbery affecting commerce and use of a firearm during a crime of violence.  If convicted of the most serious charges contained in the indictment, LIU faces life in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation and Great Falls Police Department.  PACER Case Reference.  05-38

• TALIA JOYCE NO RUNNER, a 35-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, NO RUNNER 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.  15-56

• NATASHA LOUISE RADASA, a 33-year-old resident of Cut Bank, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, RADASA 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.  15-57

• LEON BUCK SHARP, a 39-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine, and felon in possession of a firearm.  If convicted of the most serious charges contained in the indictment, SHARP faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the Bureau of Indian Affairs and Glacier County Sheriff’s Office.  PACER Case Reference.  15-54

Appearing before U.S. Magistrate Ostby in Billings on September 3, 2015, and entering pleas of Not Guilty were:

• BRANDON PATRICK DALTON-JACKSON, a 34-year-old resident of Billings, appeared on charges of possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charge contained in the indictment, DALTON-JACKSON faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation Task Force.  PACER Case Reference.  15-98

• ALEJANDRO MARQUEZ GONZALEZ, a 36-year-old resident of Royal City, Washington, appeared on charges of possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most charge contained in the indictment, GONZALEZ, faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the U.S. Border Patrol  PACER Case Reference.  15-102

• IGNACIO FIGUEROA RODRIGUEZ, a 37-year-old resident of Royal City, Washington, appeared on charges of possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most charge contained in the indictment, RODRIGUEZ, faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the U.S. Border Patrol  PACER Case Reference.  15-102

Appearing before U.S. Magistrate Johnston in Great Falls on September 3, 2015, and entering pleas of Not Guilty were:

• BRUCE DARNELL MOORE, a 50-year-old resident of Great Falls, appeared on charges of conspiracy to conspiracy to possess with intent to distribute and 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, MOORE faces life in prison, $10,000,000 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.  15-49

Appearing before U.S. Magistrate Lynch in Missoula on September 1, 2015, and entering pleas of Not Guilty were:

• JOSEPH LEE ELDABAA, a 45-year-old resident of Albany, Oregon, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.  If convicted of the most serious charges contained in the indictment, ELDABAA faces 10 years in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation and Missouri River Drug Task Force.  PACER Case Reference.  15-11

Appearing before U.S. Magistrate Johnston in Great Falls on September 1, 2015, and entering pleas of Not Guilty were:

• DENNIS PEIKER, a 51-year-old resident of Lincoln, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, PEIKER 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.  15-12

Appearing before U.S. Magistrate Johnston in Great Falls on August 31, 2015, and entering pleas of Not Guilty were:

• JOAN JOYCE HURLEY, a 38-year-old resident of Brady, 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, HURLEY faces life in prison, $10,000,000 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.  15-49

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

GREAT FALLS - The United States Attorney’s Office announced that SHAD JAMES HUSTON, 40, of Havre, Montana, pleaded guilty during a federal court hearing in Great Falls, Montana, on September 17, 2015, before U.S. District Judge Brian M. Morris to ignoring federal reporting requirements when more than $10,000 in currency was transacted in a single transaction. Huston faces a potential penalty of five years in federal prison, a $250,000 fine and three years of supervised release.

Huston operated various businesses, including Leon’s Pawn & Rental, Inc., which did business as Leon’s Buy and Sell in Havre, Montana, and Leon’s Finance, Inc., which did business as Big Sky Pawn in Great Falls, Montana.  Because pawn shops and check-cashing businesses conduct a large volume of cash transactions, they must register as Money Service Businesses with the Financial Crimes Enforcement Network (FinCEN), of the U.S. Department of Treasury.  FinCEN’s mission is to combat criminal enterprises and money laundering by identifying people and organizations who engage in large cash transactions; those transactions often relate to criminal activity which can be discovered through the collection, analysis, and dissemination of financial intelligence.  

In order for FinCEN to track money laundering and other fraud, Huston, as the owner and operator of a money service business, was required to file Currency Transaction Reports (“CTRs”) when cashing checks for customers in excess of $10,000.  According to the indictment, Huston cashed checks in excess of $10,000 for Hailey Belcourt, who was previously indicted and convicted for fraud.  He also cashed checks in excess of $10,000 for members of the Houle family.  Former Tribal Chairman John Chance Houle was sentenced to over five years in federal prison last year for his role in the wide-spread corruption uncovered by the Guardians Project at the Rocky Boy’s Indian Reservation.  The indictment identified 19 checks that Huston cashed that should have been reported to the Treasury Department, but were not.

Judge Morris set sentencing for December 16, 2015, at 1:30 p.m.  Four more indictments are pending against Huston; those indictments charge16 other felony crimes including bribery, wire fraud, embezzlement, and false claims fraud.  The first trial against Huston is set to begin on October 19, 2015, at 8:30 a.m.

Huston’s conviction for failing to file CTRs 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 Huston case relating to his failure to file CTRs was investigated by the Criminal Investigations Division of the Internal Revenue Service.

BUTTE – A federal judge sentenced two defendants on Tuesday for attempting to transport more than five pounds of methamphetamine into Montana.  Ismael Melin, 40, of Long Beach, California was sentenced today to 87 months in federal prison for possession with intent to distribute methamphetamine.  Jose Luis Montano-Espericueta, 38, also of Long Beach, was sentenced today to 36 months in federal prison for possession of meth with the intent to distribute.  Upon release from prison, both defendants will be remanded to the Bureau of Immigration and Customs Enforcement for deportation to Mexico.  Chief U.S. District Court Judge Dana Christensen presided over the proceedings.

In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government stated that if the case had proceeded to trial, the government would have proven that between September 2013 and February 2015, Melin and Montano-Espericueta possessed, with intent to distribute, 500 grams or more of methamphetamine, a Schedule II controlled substance.  In January of 2015, agents of the Northwest Drug Task Force set up an ostensible drug deal through use of a Confidential Informant.  During the exchange, which took place on February 6, agents obtained from the defendants a cooler in which was concealed approximately five pounds of methamphetamine.  The defendants were arrested and during subsequent interviews admitted that they had driven from California to Montana for the purpose of transporting and distributing the methamphetamine in Montana.

The defendants had requested sentences significantly below the recommended guideline range.  The United States had argued for sentences within the guideline range based on the extremely large amount of methamphetamine and the profound social and economic toll caused by the drug in Montana.

Assistant U.S. Attorney Bryan Whittaker prosecuted the cases. The crimes were investigated by the Northwest Drug Task Force. The defendants will have to serve at least 85% of their sentences before being released from federal prison.

SANTA ANA PUEBLO, NM – Montana U.S. Attorney Michael W. Cotter will join New Mexico U.S. Attorney Damon P. Martinez in welcoming the Native American Issues Subcommittee (NAIS) of the Attorney General’s Advisory Committee (AGAC) to Santa Ana Pueblo on September 9 and 10, 2015, and DOJ’s Tribal Liaisons on September 9-11, 2015.  The meeting will be hosted by the New Mexico U.S. Attorney’s Office.

U.S. Attorney Cotter serves as the Chairman of the NAIS, and U.S. Attorney Martinez serves as vice-chair.  Currently, 30 U.S. Attorneys from 25 districts and federally recognized tribes serve on the NAIS, which focuses exclusively on Indian Country issues and makes policy recommendations to the Attorney General regarding both criminal and civil issues in Indian Country.

“The Department continues to prioritize issues of criminal and civil law in Indian Country and in particular has made a tremendous effort to quell violence in Indian Country,” said U.S. Attorney Cotter.  “I am delighted that United States Attorneys, tribal liaisons, and Indian Country prosecutors – those in the trenches – will convene to share best practices, learn from one-another, and also celebrate the progress that has been made in the past six years.”

While in New Mexico, the NAIS will meet with representatives from tribes in New Mexico, as well as officials from BIA, SAMHSA and the U.S. Department of the Interior, and the Office of Justice Programs and the Environmental and Natural Resources Division of DOJ.  The NAIS will meet in a joint session with Tribal Liaisons who will be participating in a training seminar that will cover issues that include justice services, substance abuse, and offender reentry in Indian Country.  At the conclusion of the NAIS meeting, Tribal Liaisons and Indian Country prosecutors will meet for an additional day to continue discussions on topics relevant to Assistant U.S. Attorneys who regularly practice in Indian Country.

The morning session of the NAIS meeting on Wednesday, Sept. 9, 2015, will be open to the press and will include welcoming remarks by Montana U.S. Attorney Michael W. Cotter and New Mexico U.S. Attorney Damon Martinez, and 1st Lt. Governor Antonio Chewiwi of Isleta Pueblo, and remarks by Assistant Secretary of the Interior for Indian Affairs Kevin K. Washburn on Progress in Justice Services in Indian Country.  More information on meeting time, location, and press accommodations is available by contacting Alyssa Ferda at 505-224-1480 or [email protected].

David Woods, 38, of Corfu, New York, was sentenced today to 15 years of incarceration, for conspiracy to advertise child pornography.  Woods was also required to 15 years of supervised release.  Chief U.S. District Court Judge Dana Christensen sentenced Woods following a May 22, 2015, hearing, in which Woods 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 early 2012, Woods became an active member of the bulletin board and continued to be an active member in a more advanced role until April 2013.  Woods made posts in the advanced member section of the board, which included URL links and preview images of child pornography.  Woods also requested child pornography from other members of the Dark Moon and responded to and commented on child pornography posts made by other members.  Law enforcement analysis of Woods’ digital and other devices revealed that he used hard drives, a computer, Woods’ digital devices and other evidence, which revealed that he used multiple hard drives and a computer, in commission of the crime.  Woods 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 U.S. Attorney Cyndee Peterson prosecuted this case along with Maureen Cain, of the Department of Justice Child Exploitation & Obscenity Section.  Because there is no parole in the federal system, Woods will have to serve at least 85 percent of his sentence before he is released from prison.

MISSOULA – David Woods, 38, of Corfu, New York, was sentenced today to 15 years’ incarceration followed by 15 years supervised release, for conspiracy to advertise child pornography.  Chief U.S. District Court Judge Dana L. Christensen sentenced Woods following a May 22, 2015, hearing, in which Woods pleaded guilty to the offense.

In an Offer of Proof filed by Montana Assistant U.S. Attorney Cyndee Peterson and Trial Attorney Maureen Cain, of the U.S. Department of Justice’s Child Exploitation & Obscenity Section, 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.  The bulletin board allowed members to advertise and exchange images of child pornography.  In early 2012, Woods became an active member of the bulletin board and continued to be an active member in a more advanced role until April 2013.  Woods made posts in the advanced member section of the board, which included URL links and preview images of child pornography.  Woods also requested child pornography from other members of the Dark Moon, and responded to and commented on child pornography posts made by other members.  Law enforcement analysis of Woods’ digital and other devices revealed that he used multiple hard drives and a computer in commission of the crime.

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 involved in the case include the FBI, Homeland Security Investigations, and the Montana Division of Criminal Investigation.

Assistant United States Attorney Cyndee Peterson prosecuted this case along with Trial Attorney Maureen Cain, of the U.S. Department of Justice’s Child Exploitation & Obscenity Section.  Because there is no parole in the federal system, Woods will have to serve at least 85% of his sentence before he is released from prison.

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 August 28, 2015, and entering pleas of Not Guilty were:

• DONALD JOHN CHERRY, a 58-year-old resident of Miles City, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, CHERRY 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 Drug Enforcement Administration.  PACER Case Reference.  15-96

• ASHLEY LORAINE COTY, a 28-year-old resident of Miles City, 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, COTY faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the HIDTA Task Force.  PACER Case Reference.  15-97

• RICHARD LEE GILBERT, a 30-year-old resident of Miles City, 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, GILBERT faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the HIDTA Task Force.  PACER Case Reference.  15-97

• DENISE KELLY MALLAK, a 47-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, MALLAK 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.  15-100

• BURHAN A. MALLAK, a 63-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, MALLAK 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.  15-100

Appearing before U.S. Magistrate Lynch in Missoula on August 27, 2015, and entering pleas of Not Guilty were:

• JUAN DOMINGO CONDE ROCHA, a 34-year-old resident of Missoula, appeared on charges of illegal reentry of a deported alien.  If convicted of the charge contained in the indictment, CONDE ROCHA faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Department of Homeland Security.  PACER Case Reference.  15-20

• RYAN SCOT FRANFORTER, a 38-year-old resident of Helena, appeared on charges of conspiracy to possess with intent to distribute and to distribution of methamphetamine.  If convicted of the most serious charge contained in the indictment, FRANKFORTER faces 20 years in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation and the Missouri River Drug Task Force.  PACER Case Reference.  15-11

Appearing before U.S. Magistrate Ostby in Billings on August 26, 2015, and entering pleas of Not Guilty were:

• JONI LYNN ADAMS, a 28-year-old resident of Crow Agency, appeared on charges of assault on a federal officer.  If convicted of the charge contained in the indictment, ADAMS 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.  15-74

• KRISTINA FERN CLEOELA SEELY, a 36-year-old resident of Hardin, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine.  If convicted of the most serious charge contained in the indictment, SEELY 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.  15-103

Appearing before U.S. Magistrate Johnston in Great Falls on August 26, 2015, and entering pleas of Not Guilty were:

• DAVID QUINN GRAINGER, a 39-year-old resident of Poplar, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, GRAINGER faces 40 years in prison, $5,000,000 in fines and 5 years supervised release.  The case was investigated by the Bureau of Indian Affairs and Fort Peck Tribes Department of Law and Justice.  PACER Case Reference.  15-48

• LIONEL LEE WEEKS, a 50-year-old resident of Wolf Point, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and use of a communication facility in causing and facilitating the commission of felonies under the controlled substances act.  If convicted of the most serious charges contained in the indictment, WEEKS faces life in prison, $250,000,000 in fines and 5 years supervised release.  The case was investigated by the Bureau of Indian Affairs and Roosevelt County Sheriff’s Office.  PACER Case Reference.  15-50

Appearing before U.S. Magistrate Johnston in Great Falls on August 25, 2015, and entering pleas of Not Guilty were:

• JAMES ANTONIO AMATO, a 50-year-old resident of Great Falls, 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, AMATO faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-46

• SCOTT MITCHELL BUMMER, a 51-year-old resident of Helena, 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, BUMMER faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-46

• SHAD JAMES HUSTON, a 40-year-old resident of Havre, appeared on charges of false claims act conspiracy and false and fraudulent claims against a federally funded project.  If convicted of the most serious charge contained in the indictment, HUSTON faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the U.S. Department of Interior Office of Inspector General, U.S. Department of Health and Human Services Office of Inspector General, Internal Revenue Service and the Federal Bureau of Investigation.  PACER Case Reference.  15-42

• BILLI ANNE RAINING BIRD MORSETTE, a 39-year-old resident of Box Elder, appeared on charges of conspiracy to embezzle tribal funds and embezzlement from an Indian tribal organization.  If convicted of the most serious charge contained in the indictment, MORSETTE faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the U.S. Department of Interior Office of Inspector General, U.S. Department of Health and Human Services Office of Inspector General, Internal Revenue Service and the Federal Bureau of Investigation.  PACER Case Reference.  15-40

• NEAL PAUL ROSETTE, a 53-year-old resident of Box Elder, appeared on charges of conspiracy to embezzle tribal funds and embezzlement from an Indian tribal organization.  If convicted of the most serious charge contained in the indictment, ROSETTE faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the U.S. Department of Interior Office of Inspector General, U.S. Department of Health and Human Services Office of Inspector General, Internal Revenue Service and the Federal Bureau of Investigation.  PACER Case Reference.  15-40

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl

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

Appearing before U.S. Magistrate Ostby in Billings on August 19, 2015, and entering pleas of Not Guilty were:

• DEAN WALLOWING BULL, a 36-year-old resident of Lame Deer, appeared on charges of sexual abuse.  If convicted of the charge contained in the indictment, WALLOWING BULL 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.  15-32

Appearing before U.S. Magistrate Lynch in Missoula on August 19, 2015, and entering pleas of Not Guilty were:

• JODY RAY KOESTLER, a 59-year-old resident of Bozeman, appeared on charges of wire fraud; theft of government property and false statements.  If convicted of the most serious charges contained in the indictment, KOESTLER faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Social Security Administration.  PACER Case Reference.  15-27

Appearing before U.S. Magistrate Johnston in Great Falls on August 19, 2015, and entering pleas of Not Guilty were:

• DAVE VICTOR FAST HORSE III, a 27-year-old resident of Wolf Point, appeared on charges of burglary.  If convicted of the charge contained in the indictment, FAST HORSE faces 20 years in prison, $50,000 in fines and 3 years supervised release.  The case was investigated by the Fort Peck Tribes Department of Law and Justice.  PACER Case Reference.  15-45

Appearing before U.S. Magistrate Lynch in Missoula on August 18, 2015, and entering pleas of Not Guilty were:

• LAVELLE ANTRON COTTON, a 34-year-old resident of Seattle, Washington, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, COTTON faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-13

• SERGIO DIAZ-HINOJOS, a 36-year-old resident of Las Vegas, Nevada, appeared on charges of illegal entry.  If convicted of the charge contained in the indictment, DIAZ-HINOJOS faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by Homeland Security Investigations.  PACER Case Reference.  15-15

• ALBERT PEDRO JAQUEZ, JR., a 35-year-old resident of Seattle, Washington, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, JAQUEZ faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-13

• JASON HOMER JENKINS, a 38-year-old resident of Belgrade, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, JENKINS 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.  15-31

• DAVID LAWRENCE JENSEN, a 43-year-old resident of Columbia Falls, appeared on charges of felon in possession of firearms and ammunition.  If convicted of the charge contained in the indictment, JENSEN 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.  15-15

• TRITTNIE VON ROGERS, a 23-year-old resident of Seattle, Washington, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, ROGERS faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-13

• BOB YOUNG, a 64-year-old resident of Lima, appeared on charges of theft of government property and trees cut or injured.  If convicted of the most serious charge contained in the information, YOUNG faces 1 year in prison, $100,000 in fines and 1 year supervised release.  The case was investigated by the U.S. Fish and Wildlife Service.  PACER Case Reference.  15-26

Appearing before U.S. Magistrate Johnston in Great Falls on August 18, 2015, and entering pleas of Not Guilty were:

• REZAUL ALAM, a 28-year-old resident of Calgary, Alberta, Canada, appeared on charges of transporting illegal aliens and bringing aliens to the United States.  If convicted of the most serious charge contained in the indictment, ALAM faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by Homeland Security Investigations.  PACER Case Reference.  15-33

Appearing before U.S. Magistrate Ostby in Billings on August 18, 2015, and entering pleas of Not Guilty were:

• SAMUEL TAKESHORSE, a 58-year-old transient, appeared on charges of criminal mischief.  If convicted of the charge contained in the indictment, TAKESHORSE 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.  15-71

Appearing before U.S. Magistrate Ostby in Billings on August 17, 2015, and entering pleas of Not Guilty were:

• AMELIA MAE HOUSE SEESTHEGROUND, a 47-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, SEESTHEGROUND 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.  15-88

Appearing before U.S. Magistrate Ostby in Billings on August 13, 2015, and entering pleas of Not Guilty were:

• THOMAS JAMES ROCKROADS III, a 30-year-old resident of Busby, appeared on charges of assault on a federal officer and use of a firearm during and in relation to a crime of violence.  If convicted of the most serious charge contained in the indictment, ROCKROADS faces 20 years in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  15-78

• JOHN WHITEHAWK III, a 49-year-old resident of Lame Deer, appeared on charges of aggravated sexual abuse, sexual abuse of a minor, and abusive sexual contact with a minor.  If convicted of the most serious charges contained in the indictment, WHITEHAWK faces life in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  15-90

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

BILLINGS – A federal judge sentenced William Jess Foust, 50, of Billings, Montana, to nine years in prison today for being a felon in possession of firearms.  Federal District Court Judge Susan P. Watters also sentenced Foust to three years of supervised release.  The sentence follows Foust’s March 26, 2015, guilty plea to being a felon in possession of firearms.

Assistant United States Attorney Paulette Stewart stated in court documents that on   August 30, 2014, a store in Sidney, Montana, was burglarized and 13 firearms were taken, including several pistols, rifles and shotguns.  The store is a licensed firearms dealer and the firearms taken were part of the store’s inventory.  The investigation revealed that Foust had taken and possessed the firearms and that he had been convicted of a felony crime in California, which prohibited him from possessing firearms. 

Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sidney Police Department. Foust will have to serve at least 85% of his sentence before being released from federal prison.

HELENA – The United States Attorney’s Office announces today that a civil suit has been filed in federal court against George Kornec, Philip Nappo, and Intermountain Mining and Refining, LLC, in relation to alleged unauthorized illegal actions on mining claims in the Helena National Forest.  Kornec and Nappo are the managers or members of Intermountain Mining and Refining, LLC, according to a business entry on the Montana Secretary of State’s website.  The civil suit is being brought by attorneys in the Montana United Attorney’s Office on behalf of the United States Forest Service.

“The miners will have their day in court.  These disputes will be resolved by the rule of law in a federal courtroom,” said Montana U.S. Attorney Mike Cotter.

“The Forest Service has worked with the owner and operator of White Hope mine for decades,” said T. David Smith, Director of Public and Government Relations for the Forest Service’s Northern Region.  “It is unfortunate that today’s action has become necessary.  However, we have an obligation to ensure that all activities conducted on National Forest System lands are done so in accordance with the law and federal regulations.”

According to court documents filed today, the United States government asks the federal district court to find that Kornec, Nappo and Intermountain Mining and Refining, LLC, have failed to comply with regulations governing their unpatented mining claims and to find that they are illegally interfering with property of the United States, which is managed by the United States Forest Service.  Court filings further state that the government requests that the court permanently enjoin Kornec, Nappo and Intermountain Mining and Refining from such activity in the future until and unless a plan of operation authorizing mining activities has been approved by the United States Forest Service.  The Complaint requests that if a plan is not approved, that the building and roads that were constructed without approval be removed and reclaimed, and that Kornec, Nappo and Intermountain Mining and Refining, LLC, be ordered to cease and desist with interfering with public access across the unpatented mining claims.

To access further details and court filings related to this case, please see PACER case reference 15-78, at www.pacer.gov.

The United States Attorney’s Office today announced that during a federal court session in Billings, Montana on August 5, 2015, before U.S. Magistrate Judge Ostby, the following individuals appeared:

• BURHAN A. MALLAK, a 63-year-old resident of Billings, made an initial appearance on a complaint alleging possession of methamphetamine with intent to distribute.  He is currently detained.  If formally charged with this offense by indictment, MALLAK, faces 20 years in prison, $1,000,000 in fines and 3 years supervised release..  The investigation is being conducted by the Federal Bureau of Investigation.  PACER Case Reference:  15-65

• DENISE KELLY MALLAK, a 47-year-old resident of Billings, made an initial appearance on a complaint alleging possession of methamphetamine with intent to distribute.  She is currently detained.  If formally charged with this offense by indictment, MALLAK, faces 20 years in prison, $1,000,000 in fines and 3 years supervised release..  The investigation is being conducted by the Federal Bureau of Investigation.  PACER Case Reference:  15-66

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.

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 August 7, 2015, and entering pleas of Not Guilty were:

• JESUS YEIZON DENIZ MENDOZA, a 18-year-old resident of Worland, Wyoming, appeared on charges of first degree murder, assault with intent to commit murder, assault with a dangerous weapon and assault resulting in serious bodily injury.  If convicted of the most serious charges contained in the indictment, MENDOZA 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.  15-93

Appearing before U.S. Magistrate Ostby in Billings on July 31, 2015, and entering pleas of Not Guilty were:

• ZETH ANDREW HILARIO, a 32-year-old resident of Billings, appeared on charges of mail fraud and aggravated identity theft.  If convicted of the most serious charges contained in the indictment, HILARIO 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.  15-83

Appearing before U.S. Magistrate Johnston in Great Falls on July 29, 2015, and entering pleas of Not Guilty were:

• SHANLEY LEONARD BIGHORN, a 30-year-old resident of Brockton, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine, felon in possession of a firearm and possession of a firearm not registered in the national firearm registration and transfer record.  If convicted of the most serious charges contained in the indictment, BIGHORN 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.  15-44

• PAUL DARRELL RED EAGLE, SR., a 27-year-old resident of Poplar, 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 charges contained in the indictment, RED EAGLE faces life in prison, $10,000,000 in fines and 5years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  15-44

Appearing before U.S. Magistrate Lynch in Missoula on July 28, 2015, and entering pleas of Not Guilty were:

• NATHAN GLEN KIRKLAND, a 45-year-old resident of Lakeside, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, KIRKLAND faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by Homeland Security Investigations and the Northwest Drug Task Force.  PACER Case Reference.  15-16

Appearing before U.S. Magistrate Ostby in Billings on July 27, 2015, and entering pleas of Not Guilty were:

• DAVID JAMES MATTHEW, a 54-year-old resident of Hardin, appeared on charges of felon in possession of firearms and ammunition.  If convicted of the charge contained in the indictment, MATTHEW 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.  15-81

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

BILLINGS – The United States Attorney’s Office announces today the completion of a Montana operation that convicted thirteen defendants for methamphetamine, firearm, and money laundering charges, involving an estimated $300,000 worth of meth in Montana.  Operation Pale Mule joined numerous law enforcement agencies in Montana and California and involved a conspiracy to distribute approximately 10 pounds of methamphetamine in Montana, much of which was orchestrated by defendant Jason Neel, 31, from inside a California prison while serving a sentence for second degree murder. Neel was sentenced to 50 years in prison by U.S. District Court Judge Susan P. Watters. The final defendant, Mario Albert Villegas, 32, of Los Angeles, CA, was sentenced today to 30 years in prison and 10 years of supervised release.  Villegas distributed a total of six pounds of meth.

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

"In safeguarding our communities today, there is literally nothing we do alone,” said Eric Barnhart, Special Agent in Charge of the FBI Salt Lake City Division.  “This case represents the epitome of collaboration between law enforcement agencies throughout Montana, as well as our partners in California and South Dakota, in targeting and dismantling a violent drug trafficking organization.”

The investigation joined more than 70 law enforcement officers working across eastern Montana and in California, and involved nearly 60 warrants to obtain information about the drug trafficking conspiracy.  The conspiracy was responsible for bringing roughly 5 kilograms of meth into Montana, valued at approximately $300,000.  Law enforcement also uncovered a funnel bank account, where drug distributors would deposit their proceeds at a Montana bank and another defendant in California would take the money out to pay the sources of drugs.  Law enforcement was able to determine that $42,000 was laundered through one bank account, with an additional $5,000 through other money transfers.  Law enforcement also seized $6,639 and a 2007 BMW vehicle, which were linked to the drug trafficking crimes.

All members of the drug trafficking organization have either pleaded guilty or been convicted of federal charges ranging from conspiracy to possess with intent to distribute and distribute meth, possession with intent to distribute meth, distribution of meth, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering.

Investigation of the drug trafficking organization began in September of 2013, when law enforcement agents with the FBI and Eastern Montana High Intensity Drug Trafficking Area Task Force (HIDTA) began investigating a drug trafficking organization responsible for shipping methamphetamine from Southern California to Billings and Roundup, Montana.  Agents introduced an undercover agent into the organization, and the undercover agent purchased methamphetamine from one of the leaders of the organization, Casey Fleming, as well as local distributors.  Agents soon learned that Fleming was working with Jason Robert Neel an inmate at California State Prison (Corcoran Unit) who was serving a sentence of 44 years to life for second-degree murder.  Neel was able to have a prison employee smuggle cell phones into the prison so that he could effectively run the organization.

As part of the investigation, law enforcement agents were granted a Title III wiretap for two cell phones used by Casey Fleming as well as Neel’s prison cell phone and Neel’s girlfriend, Desiree Jimenez.  Wiretaps are granted through a rigorous legal process and allow law enforcement to listen to telephone communications for a specified duration.  Agents learned that Fleming was first obtaining methamphetamine from Mario Villegas, a resident of Los Angeles, California, and later from David Delcarmen, also a residence of the Los Angeles area.  Fleming utilized a network of subordinates to ship the methamphetamine from California to Montana.  Local dealers in Montana would then distribute the methamphetamine in Eastern Montana once it arrived.

During the wiretap investigation, agents were able to determine that the packages of meth were being shipped to residences in Roundup and Billings, Montana, and they intercepted those packages.  All of the methamphetamine seized in this investigation was highly pure, ranging from purity levels from 90% to 100% pure methamphetamine.  In total, agents estimate that the organization transported five kilograms of methamphetamine from Southern California to Montana during the course of the conspiracy.

A Montana grand jury ultimately indicted 13 defendants responsible for the drug trafficking organization.  Twelve of the defendants pleaded guilty and one, Mario Villegas, was convicted following a jury trial.  The case was prosecuted by Assistant U.S. Attorneys Joe Thaggard, Tara Elliott, Brendan McCarthy and John Sullivan. This investigation involved the cooperation of many law enforcement agencies in Montana and California, including the Federal Bureau of Investigation, the FBI Big Sky Safe Streets Task Force, and the Eastern Montana HIDTA, which includes representation from the Billings Police Department, Yellowstone County Sheriff’s Office, Homeland Security Investigations, U.S. Customs and Border Patrol, DEA and IRS.  Both task forces collaborated with law enforcement partners at the Montana Division of Criminal Investigation, U.S. Marshals Services, Montana National Guard, U.S. Postal Service, FBI offices in California, California Highway Patrol, as well as the Billings and FBI SWAT teams.

HELENA – The United States Attorney’s Office announces today that members of the White Rhino drug operation team are the recipients of a prestigious national award from the U.S. Department of Justice Organized Crime Drug Enforcement Task Forces (OCDETF) Program. The award, known as the National OCDETF Outstanding Investigation Award, is for Operation White Rhino, which involved the investigation of a large scale cocaine and ecstasy smuggling organization that trafficked drugs across the United States-Canadian border.  The investigation resulted in the seizure of 441 kilograms of cocaine, 29 kilograms of ecstasy, approximately $380,000, 12 vehicles, and the arrest of 17 individuals both in the United States and Canada.

“Operation White Rhino is an outstanding example of achieving the goals of OCDETF’s mission,” said OCDETF Director Bruce Ohr,  “The bringing together of so many federal, state, local and international law enforcement partners with the U.S. Attorney’s Office in a concerted effort to take down a major cross border drug trafficking business produced the kind of impact that no agency working alone could hope to achieve.  In making this award, OCDETF recognizes the enormous amount of work performed and true cooperative spirit shown by the honorees.  Their efforts have made the citizens of the U.S. and Canada safer from the ravages of drug trafficking and transnational organized crime.”

“The law enforcement professionals investigating and prosecuting this multi-agency international drug smuggling case overcame numerous operational challenges by maintaining a spirit of cooperation,” said U.S. Immigration and Customs Enforcement Director Sarah R. Saldaña.  “Their flexibility allowed us to shut down a major drug trafficking organization that would otherwise still be in operation today. This should serve as a warning to other transnational criminal organizations that we will never let red tape stand in the way of justice.”

“We are pleased to announce this award and the diligent work it represents,” said Mike Cotter, U.S. Attorney for the District of Montana.  “This was truly a significant effort that took down a prolific and transnational drug trafficking organization.  This was a particularly dynamic investigation that can serve as a model for how to investigate and prosecute transnational crime.  This project was an example of open communication, cooperation and collaboration demonstrating the ability to work together to resolve complex, sensitive cross-border law enforcement issues.”

The investigation involved more than 100 law enforcement officers working in Canada and America, specifically Los Angeles, California, Great Falls, Montana, Las Vegas, Nevada, Vancouver, British Columbia, and the Interior of British Columbia and South Western Saskatchewan.  Twenty-five of the law enforcement officers who were at the core of the operation were honored with the award.  Joseph Thaggard, Criminal Chief and Assistant U.S. Attorney in the Montana U.S. Attorney’s Office received the award, as well as law enforcement from Homeland Security Investigations, U.S. Customs and Border Protection, the Drug Enforcement Administration, the Royal Canadian Mounted Police, the Public Prosecution Services of Canada, and the Canada Border Services Agency.

Six members of the drug smuggling organization, based in Vancouver, British Columbia, were indicted by a Federal Grand Jury in the United States for their role in a conspiracy to smuggle over 1,000 kilograms of cocaine from the U.S. into Canada.  The drug smuggling operation was believed to have been responsible for smuggling the drugs using remote border crossing locations between designated ports of entry in Montana.  Investigators and prosecutors in the U.S. and Canada faced numerous challenges in this operation, including the vastness and remoteness of the borders, coordinating numerous agencies within multiple jurisdictions, encryption methods used by subjects, and handling cross border undercover operations, witnesses and evidence.

GREAT FALLS – Former Chippewa Cree Tribal Chairman John Chance Houle, 51, of Box Elder, was sentenced to 68 months in prison, $646,456 in restitution, three years of supervised release to follow his incarceration, and $400 in special assessments.  Houle appeared before U.S. District Judge Brian Morris in Great Falls to receive the sentence.

In December of last year, Houle pleaded guilty to accepting kick-back payments from Hunter Burns Construction and Dr. James Eastlick in exchange for facilitating the award and payment on tribal contracts.  In another indictment Houle pleaded guilty to embezzling hundreds of thousands of dollars from the Chippewa Cree Rodeo Association and obstructing a federal grand jury investigation.  In a third indictment, Houle pleaded guilty to one of four counts of tax evasion.

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.  Parole has been abolished in the federal system.  A federally convicted defendant will serve the entirety of the sentence imposed less a small amount of “good time” credit earned while incarcerated.

Additional details can be found at: http://www.justice.gov/usao-mt/pr/former-chippewa-cree-tribal-chairman-pleads-guilty-bribery-embezzlement-obstruction

BUTTE – Following a two-day federal trial in Montana, a jury convicted Donald “Ski” Johnson, 48, of Silver Spring, Maryland, of wire fraud.  Johnson defrauded Big Brothers Big Sisters of Gallatin County, Montana, by misrepresenting himself as a Grammy-nominated artist soliciting funds for a children’s cancer foundation.  In reality, Johnson was never nominated for a Grammy and used money in the foundation’s account for his personal expenses.  Chief U.S. District Court Judge Dana L. Christensen presided over the trial.  Sentencing is set for November 12, 2015.

At trial, Assistant United States Attorney Chad C. Spraker presented evidence that in May 2012, Johnson contacted a large Montana resort using the alias Kevin Wright.  The resort was partnering with Big Brother Big Sisters to put on a charity celebrity golf tournament.  “Wright” claimed he was a Sony Records representative and an agent of Grammy-nominated saxophonist Ski Johnson.  He also claimed that Johnson ran a charity known as the Jazz for Life Foundation.  “Wright” stated that Johnson would donate two Grammy tickets to Big Brothers Big Sisters with one half of the proceeds going to Big Brothers Big Sisters and the other half going to Jazz for Life.  Grammy tickets may not be transferred or resold, and Grammy tickets provide that tickets obtained in contravention of their terms will not be honored, and their holders shall be deemed trespassers.  Big Brothers Big Sisters paid for Johnson and his manager’s travel expenses, lodging, food, and green fees.  Big Brothers Big Sisters held the tournament in July 2012 and auctioned the tickets for a winning bid of $6,000.  Big Brothers Big Sisters stopped the transaction after learning of Johnson’s true identity.

Assistant U.S. Attorney Chad C. Spraker prosecuted the case, which was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.

GREAT FALLS – Former Chippewa Cree Tribal official Timothy Warren Rosette, 52, of Box Elder, pleaded guilty today to two counts of bribery and one count of theft of tribal funds, according to the United States Attorney’s Office.  Rosette had been charged in three indictments handed down by a federal Grand Jury investigating corruption in Indian Country.  Rosette appeared before U.S. District Judge Brian Morris in Great Falls to enter the guilty pleas.

Rosette’s sentencing is set for October 29, 2015, at the Missouri River Courthouse in Great Falls.

The maximum sentence on the two counts of bribery is 10 years imprisonment, a $250,000 fine, and three years of supervised release.  On the charge of theft from an Indian tribal organization, Rosette faces a maximum sentence of 5 years imprisonment, a $250,000 fine, and three years supervised release.  All sentences could be imposed consecutively.  Rosette will also be responsible for restitution to repay the tribe for losses associated with his crimes.

Rosette has occupied positions of tribal authority at Rocky Boy’s for several years.  During the period of the indictments—April 2009 to December 2012—Rosette served as the Director of the Rocky Boy Health Clinic’s Environmental Health Unit, with authority to select contractors, award contracts and approve contract payments relating to the tribe’s community water supply (lagoons, pipes, sewers, storm drains, etc.).  During the same period, Rosette was also the Director of the tribe’s Roads Division with authority to select contractors, award contracts, and approve contract payments relating to the roads, highways, easements, and bridges on the reservation.   

The Grand Jury had charged Rosette with accepting hundreds of thousands of dollars in bribes and gifts from Hunter Burns Construction and Dr. James Eastlick, Jr, who held a 49% ownership interest in Hunter Burns Construction.  Rosette was also alleged to have received cash kick-backs from Havre businessman Shad Huston, who was acting on behalf of a local trucking company—K Bar K Trucking—and that Rosette facilitated fraudulent claims on behalf of other Huston companies such as TMP Services and K & N Consulting.  In Tuesday’s hearing, Rosette admitted taking bribes or gratuities from Eastlick and Huston and accepting and submitting a fraudulent claim from TMP Services in 2012 resulting in a $30,000 loss to the tribe.

Dr. Eastlick previously pleaded guilty to several felonies related to bribery, embezzlement, and tax evasion and was sentenced on March 18 to six years in prison.  Huston is currently facing 15 felony charges contained in five separate indictments.  He is awaiting trial. Huston’s companies, TMP Services and K & N Consulting, were also indicted and will be tried with Huston.

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’s Criminal Investigation Division.

Additional details about the crimes to which Rosette entered guilty pleas can be found on PACER in the Government’s Offer of Proof.

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 July 23, 2015, and entering pleas of Not Guilty were:

• JESSE WADE NEWSOM, a 28-year-old resident of Cascade, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, NEWSOM 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

• JIMMIE RICHARD JAMES, a 72-year-old resident of Ballantine, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine.  If convicted of the most serious charges contained in the indictment, JAMES faces life in prison, $10,000,000 in fines and 5years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-82

Appearing before U.S. Magistrate Ostby in Billings on July 22, 2015, and entering pleas of Not Guilty were:

• JASON HOMER JENKINS, a 38-year-old resident of Belgrade, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, JENKINS 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.  15-31

• JEFFREY MICHAEL LEO, a 43-year-old resident of Havre, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession of methamphetamine with intent to distribute and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, LEO faces life in prison, $10,000,000 in fines and 5years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  15-66

Appearing before U.S. Magistrate Lynch in Missoula on July 21, 2015, and entering pleas of Not Guilty were:

• JOSEPH ALLEN EHLI, a 36-year-old resident of Missoula, 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, EHLI faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-13

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

HELENA – A federal judge this week sentenced Erika Rae Brown, 44, of San Diego, California, to 56 months in prison and to pay approximately $3.7 million dollars in restitution for money laundering in connection with bank fraud. U.S. District Court Judge Sam Haddon also sentenced Brown to serve three years of supervised release following her prison sentence.  The sentencing follows a March 19, 2015, change of plea in which Brown pleaded guilty to money laundering. 

The offense involved Erika Rae Brown obtaining a four-million dollar bank loan based on a series of fraudulent representations about a data storage facility project she claimed she was working on located on a property in Darby, Montana. In January 2009, the bank forwarded the data company’s loan application to the United States Department of Agriculture (USDA).  Following representations by one of Brown’s associates regarding the project, the USDA committed to guarantee the loan. As part of the parameters for the loan, the bank required Brown to provide proof that companies were interested in using the data storage facility. Brown submitted letters to the bank from several well-known national companies that purportedly wanted to use the data storage.  Subpoena returns from those companies later indicated that the letters were not, in fact, authored by the companies.  Also, prior to the bank loan’s closing date, Brown provided the bank with a number of cashier’s checks and invoices in an effort to show that the company was in fact spending capital on the project.  In reality, the checks were altered version of checks Brown had written for other expenses.

Brown assured the bank and USDA employees that her grandfather was able fund the project.  It was later discovered that the loan disbursements were not used for the business projects and, in fact, a bathroom and office renovation represented the only work done on the project.  Interviews of companies allegedly involved in working on the project confirmed that they had not done any work on it. Brown had submitted fabricated invoices to the bank.  The loan defaulted in or about October 2011.  A bank executive visited to the property in September 2012, which revealed that there were no improvements other than the bathroom and office space.  A financial analysis of the loan proceeds revealed that Brown used the money for personal expenses, including $128,135 in rent for a Laguna Beach house and $5,825 for two Rolex watches.  The bank foreclosed on the property in August 2013.  The $3,741,047.82 in restitution ordered by the court represents the money Brown owes to the bank and the USDA.

Assistant U.S. Attorney Chad C. Spraker prosecuted the case, which was investigated by the Federal Bureau of Investigation, Internal Revenue Service, and the U.S. Department of Agriculture, Office of Inspector General.  Brown will have to serve at least 85% of her sentence before being released from federal prison.

MISSOULA – A federal judge sentenced Steven Vincent Sann, 61, of Stevensville, Montana, to two years in prison and one year of supervised release for orchestrating a nationwide scheme involving extra charges listed on land-line telephone bills.  Sann was also ordered to forfeit $500,000, which he obtained from the scheme then transferred to his personal investment accounts.  The sentencing follows an April 3, 2015, change of plea in which Sann pleaded guilty to wire fraud and money laundering charges.  Chief District Court Judge Dana Christensen presided over the case, and sentenced Sann to 24 months in prison on each count, to run concurrently.

“Sann engaged in a complex manipulation of tens of thousands of consumers across the country,” said Montana U.S. Attorney Michael Cotter.  “Through a long-term joint effort with our law enforcement partners, we have held this man accountable for his crimes and sent a shot across the bow warning others who would engage in similar conduct.”

In an Offer of Proof filed by Assistant United States Attorney Timothy J. Racicot, the government stated that if the case had proceeded to trial it would have presented evidence that Sann managed several companies (the “Sann Companies”) that were engaged in the business of marketing a stand-alone voicemail 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, called Emerica Media Corporation (“Emerica”).  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.

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.  The practice is known as cramming and involves the placement of unauthorized charges on residential land-line telephone bills.  The unauthorized charging has has precipitated myriad changes in the industry.  In order to place charges on land-line telephone bills for its services, the Sann Companies contracted with billing aggregators such as Transaction Clearing, which worked with the phone companies (LECs) to facilitate the placing of charges on the monthly phone bills of the Sann Companies’ customers.

Sann’s guilty pleas relate to misrepresentations he caused to be made to Transaction Clearing concerning customer complaints.  Specifically, in March of 2010, Transaction Clearing defined what it considered a “cramming complaint.”  The Sann Companies’ contracts with Transaction Clearing 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.  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.    

In relation to Sann’s wire fraud conviction, an employee of Emerica’s accounting firm in Montana, 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.  As it relates to the money laundering conviction, Sann transferred $100,000 from a bank account to a personal 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 Sann’s criminal wire fraud scheme.

Assistant U.S. Attorney Tim Racicot prosecuted the case, which was investigated by the FBI and IRS.  Sann will have to serve at least 85% of his sentence before being released from federal prison.

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

Appearing before U.S. Magistrate Lynch in Missoula on July 14, 2015, and entering pleas of Not Guilty were:

• SHAWNSTON BEAUDOIN, a 31-year-old resident of Kennesaw, Georgia, appeared on charges of conspiracy to advertise child pornography.  If convicted of the charge contained in the indictment, BEAUDOIN faces 30 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Federal Bureau of Investigation, Montana Division of Criminal Investigation and Homeland Security Investigations.  PACER Case Reference.  14-27

Appearing before U.S. Magistrate Johnston in Great Falls on July 10, 2015, and entering pleas of Not Guilty were:

• DENNIS PEIKER, a 61-year-old resident of Lincoln, appeared on charges of manufacture of marijuana.  If convicted of the charge contained in the indictment, PEIKER faces 40 years in prison, $2,000,000 in fines and 4 years supervised release.  The case was investigated by the Missouri River Drug Task Force and the Lewis and Clark County Sheriff’s Office.  PACER Case Reference.  15-09

Appearing before U.S. Magistrate Ostby in Billings on July 8, 2015, and entering pleas of Not Guilty were:

• ALEXANDER CAMPOS, a 33-year-old resident of Billings, appeared on charges of felon in possession of a firearm and possession of a stolen firearm.  If convicted of the most serious charge contained in the indictment, CAMPOS 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.  14-87

Appearing before U.S. Magistrate Ostby in Billings on July 7, 2015, and entering pleas of Not Guilty were:

• TIMOTHY JAMES ANDERSON, a 31-year-old resident of Shepherd, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, ANDERSON 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.  14-103

• MERRILL CLARK GARDNER, a 61-year-old resident of Fishtail, 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, GARDNER faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-73

• GARY ALLEN OSTERHOUT, a 60-year-old resident of Toston, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charge contained in the indictment, OSTERHOUT 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.  15-29

• WILJO CLEVE SPANG, a 23-year-old resident of Lame Deer, appeared on charges of felon in possession of a firearm and ammunition.  If convicted of the charge contained in the indictment, SPANG 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.  15-69

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

MISSOULA – A federal judge sentenced three defendants this week for a methamphetamine conspiracy in Montana.  Robert Anthony Vaughn, 37, of Bozeman, Montana, was sentenced today to 46 months in federal prison, followed by three years of supervised release, for conspiracy to possess meth with the intent to distribute.  Two other defendants in the conspiracy were also sentenced this week for the offense.  Zachary Ryan Mills, 34, and Tracy Ann Hohenstatt, 45, both from Phoenix, Arizona, were each sentenced to five years in prison, followed by five years of supervised release.  An additional defendant, Janet Jorgenson Card, was sentenced to five years in prison followed by three years of supervised release.  Chief U.S. District Court Judge Dana Christensen presided over the proceedings.

In an Offer of Proof filed by Assistant U.S. Attorney Paulette Stewart, the government stated that if the case had proceeded to trial, the government would have proven that from summer 2012 until roughly Fall 2013, Card received methamphetamine from Mills and Hohenstatt.  Mills and Hohenstatt would drive the meth from the Phoenix, Arizona, area to Three Forks, Montana.  Card then distributed the methamphetamine to others in the area, including Vaughn. Card estimated that she received 3600 grams from Mills and Hohenstatt.  Law enforcement interviewed Vaughn, who stated that he purchased methamphetamine from Card for approximately nine months at her Three Forks residence for a total of 350 grams.  Law enforcement seized additional meth and two loaded firearms from Mills and Hohenstatt.

Assistant U.S. Attorney Paulette Stewart prosecuted the cases. The crimes were investigated by the FBI, DEA and the Missouri River Drug Task Force. The defendants will have to serve at least 85% of their sentences before being released from federal prison.

 

MISSOULA – The Department of Justice announced today that the University of Montana Police Department (UMPD) has fully implemented the requirements of its agreement with the department to improve the UMPD’s response to reports of sexual assault.  The agreement, which was entered into in May 2013, resolved part of the department’s comprehensive investigation of the response by the Missoula, Montana, criminal justice system and the University of Montana to sexual assault.  Thomas R. Tremblay, the independent reviewer who assesses whether the terms of the agreement have been met, has determined – and the department has agreed – that the UMPD has met all of its obligations under the agreement and achieved the overall purpose of the agreement.

The purpose of the agreement between the department and the UMPD was to better protect and vindicate the rights of sexual assault victims by transforming the UMPD’s response to reports of sexual assault.  To do this, the agreement required significant changes to the UMPD’s policies, practices and supervision.  These changes promote more reliable sexual assault investigations, and effective, nondiscriminatory law enforcement and community support for victims, the police department and its officers.  The UMPD’s implementation of the agreement has resulted in a host of historic advances in the Missoula response to sexual assault, including the following:

• development and institution of model policies and protocols for the UMPD’s response to reports of sexual assault, and for its communication and cooperation with its university and local law enforcement partners;
• extensive specialized training for first responders and detectives in the response to sexual assault;
• cooperation with the development and institution of an External Review Panel – one of the first of its kind – to review closed sexual assault cases for investigative comprehensiveness and indications of gender bias;
• completion of an audit of the community-wide response to sexual assault – one of the first community audits to focus exclusively on sexual assault – including all of the key law enforcement agencies, advocacy organizations and medical service providers serving victims of sexual assault in Missoula County; and
• community advocates and students reporting better communication and coordination with UMPD officers than ever before.

“Our agreement with the University of Montana Police Department following our investigation into the handling of sexual assault complaints made by women in Missoula has been a catalyst for powerful changes in the law enforcement, the university, and the community’s coordinated response to sexual assault,” said Vanita Gupta, the head of the Civil Rights Division.  “We are grateful for the efforts of the University of Montana, the UMPD and the entire Missoula community because, as a result of these reforms, the women of Missoula are safer, more trusting of the criminal justice system and subject to more fair and respectful treatment by campus police.  The University of Montana and the UMPD had the courage and leadership to acknowledge and address these problems on its campus, and as a result, they are poised to become a model for institutions of higher education and campus police departments grappling with these issues around the country.”

“Today signals a true accomplishment by the University of Montana and its police department,” said U.S. Attorney Michael Cotter of the District of Montana.  “They have worked tirelessly toward changes that are substantial, sustainable, and will benefit the community for generations to come.  Thanks to this community effort, today the university is safer and is a place where students can learn and thrive.”

The full implementation of the department’s agreement with the UMPD marks the second completion of the four agreements stemming from the department’s multi-pronged investigation, launched in May 2012, regarding the handling of sexual assault complaints made by women in Missoula.  The investigation, conducted under the Violent Crime and Law Enforcement act of 1994, the Safe Streets Act, Title VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, evaluated the response to sexual assault at the University of Montana at Missoula, the UMPD, the Missoula Police Department (MPD) and the Missoula County Attorney’s Office.  The department entered into agreements with the university, the UMPD and the MPD in May 2013, to resolve findings related to those parties and address deficiencies in their response to sexual assaults.  The department, together with the Montana Attorney General’s Office, entered into an agreement with the Missoula County Attorney’s Office the following year, in June 2014.  The implementation of those agreements has already improved these parties’ response to sexual assaults.

These agreements, as well as a description of the Department of Justice’s work regarding sexual assault in Missoula are available at: http://www.justice.gov/crt/about/spl/.  The independent reviewer’s final compliance report, describing in detail his determination that the UMPD has successfully achieved full compliance with the Justice Department agreement, is forthcoming, and will be available on the Justice Department’s website upon its 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 July 2, 2015, and entering pleas of Not Guilty were:

• KYLE BIGBACK, a 32-year-old resident of Busby, appeared on charges of sexual abuse of a minor.  If convicted of the charge contained in the indictment, BIGBACK faces 15 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.  PACER Case Reference.  15-54

Appearing before U.S. Magistrate Lynch in Missoula on June 29, 2015, and entering pleas of Not Guilty were:

• CATHLEEN ROSELYN CANTLON, a 56-year-old resident of Troy, appeared on charges of interstate mailing of a firearm and ammunition and possession of a firearm and ammunition by a person who has been committed to a mental institution.  If convicted of the most serious charge contained in the indictment, CANTLON 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.  15-12

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

BILLINGS – An Absarokee man, Christopher Michael Emter, 37, has been convicted of being a felon in possession of a firearm following a jury trial in Billings, Montana.  Emter is being detained pending sentencing, which U.S. District Court Judge Susan Watters set for October 7, 2015.

On January 12, 2013, a Billings resident notified law enforcement that his vehicle had been broken into and that two firearms had been stolen.  One of the weapons stolen was a Sig Sauer .40 caliber pistol.  On February 8, 2013, the Stillwater County Sheriff’s Office conducted an investigation into nine vehicles, which had been broken into and had items stolen from them while parked at the Stillwater Mine in Absarokee, Montana.  Subsequent investigation revealed that credit cards taken from the vehicles had been used in local gas stations.  Videos from that time period were reviewed and helped investigators determine that Emter was the prime suspect.

A search warrant was issued and executed on February 14, 2013, for Christopher Emter’s residence.  Many items stolen from the Stillwater Mine vehicles were recovered.  Additionally, the Sig Sauer pistol stolen in Billings in January was found at the residence.  Prior to the search of the bedroom, Emter was found digging around in the closet and not responding to officer’s commands to show his hands.  Officers located the Sig Sauer pistol in a tote in the closet.  After the pistol was found, Emter fled the residence but was detained shortly thereafter.  Emter is prohibited from possessing a firearm because of a prior felony criminal endangerment conviction in Yellowstone County.

Assistant U.S. Attorney Mike Lahr prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stillwater County Sheriff’s Office.

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

Appearing before U.S. Magistrate Johnston in Great Falls on June 25, 2015, and entering pleas of Not Guilty were:

• JOHNNY LEE HAMILTON, a 22-year-old resident of Poplar, appeared on charges of burglary.  If convicted of the charge contained in the indictment, HAMILTON faces 20 years in prison, $50,000 in fines and 3 years supervised release.  The case was investigated by the Fort Peck Tribes Department of Law and Justice.  PACER Case Reference.  14-84

Appearing before U.S. Magistrate Lynch in Missoula on June 24, 2015 and entering pleas of Not Guilty were:

• SPENCER JAMES BRUSELL, a 38-year-old resident of Kalispell, appeared on charges of counterfeiting obligations or securities of the United States and uttering counterfeit obligations or securities.  If convicted of the most serious charges contained in the indictment, BRUSELL faces 20 years in prison, $250,000,000 in fines and 3 years supervised release.  The case was investigated by the United States Secret Service.  PACER Case Reference.  15-04

• ERNEST KHALID CALVERT, JR., a 20-year-old resident of Dania Beach, Florida, appeared on charges of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.  If convicted of the most serious charges contained in the indictment, CALVERT faces 20 years in prison, $250,000,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  15-22

• ROBERT ELLIS NORRIS, a 23-year-old resident of Boynton Beach, Florida, appeared on charges of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.  If convicted of the most serious charges contained in the indictment, NORRIS faces 20 years in prison, $250,000,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  15-22

Appearing before U.S. Magistrate Ostby in Billings on June 23, 2015, and entering pleas of Not Guilty were:

• LEON SEMINOLE, a 57-year-old resident of Lame Deer, appeared on charges of strangulation and assault resulting in substantial bodily injury.  If convicted of the most serious charge contained in the indictment, SEMINOLE 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.  15-62

Appearing before U.S. Magistrate Johnston in Great Falls on June 23, 2015, and entering pleas of Not Guilty were:

• SHAD JAMES HUSTON, a 39-year-old resident of Havre, appeared on charges of false claims act conspiracy, scheme to defraud the Chippewa Cree Tribe/wire, bribery – offering an official of an Indian tribal government receiving federal funding payments for personal benefit and false and fraudulent claims against a federal funded project. If convicted of the most serious charges contained in the indictment, HUSTON faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the U.S. Department of Interior Office of Inspector General, Internal Revenue Service Criminal Investigation Division, the U.S. Department of Health and Human Services Office of Inspector General, Environmental Protection Agency and the Federal Bureau of Investigation.  PACER Case Reference.  15-35

Appearing before U.S. Magistrate Ostby in Billings on June 18, 2015, and entering pleas of Not Guilty were:

• JETSEE ALBERTO NUNEZ-GUZMAN, a 34-year-old resident of Mexico, appeared on charges of possession with intent to distribute methamphetamine.  If convicted of the charge contained in the indictment, NUNEZ-GUZMAN faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-68

• CAROL LYNETTE PEARSON, a 43-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, PEARSON faces life in prison, $8,000,000 in fines and 8 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  15-46

Appearing before U.S. Magistrate Lynch in Missoula on June 17, 2015, and entering pleas of Not Guilty were:

• JOSEPH DAVID ROBERTSON, a 76-year-old resident of Basin, appeared on charges of unauthorized discharge of pollutants into waters of the United States and malicious mischief – injury/depredation of property of the United States.  If convicted of the most serious charges contained in the indictment, ROBERTSON faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Environmental Protection Agency and the United States Forest Service.  PACER Case Reference.  15-07

• SEIBERT SMITH/DRUMLUMMON GOLD CORPORATION, a 76-year-old resident of Helena, appeared on charges of false statement sin records and false statements within jurisdiction of United States.  If convicted of the most serious charge contained in the indictment, SMITH faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the US Department of Labor Mine Safety and Health Administration.  PACER Case Reference.  15-06

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

MISSOULA – 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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. 

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.

 

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.