District of Montana
Press releases recorded for this federal judicial district.
Former Oklahoma State University Professor Convicted on 26 Fraud and Public Corruption Charges Involving Blackfeet PoKa ProgramRead the Press Release
The United States Attorney's Office announced that on May 22, 2014, a federal jury found GARY JOSEPH CONTI, 68, of Three Forks, guilty on 26 of 27 felony charges relating to his role in deceiving the government in an "in-kind" scheme that auditors have determined resulted in at least $4.6 million in fraud against a grant designed to help troubled and at-risk youth on the Blackfeet Indian Reservation.
The Blackfeet Po'ka Project was the result of a 2005 grant application from the Blackfeet Tribe and designed to provide a comprehensive support structure to assist troubled and at-risk youth. Po'ka was funded by a federal grant from 2005 through 2011. Po'ka received its funding from the Substance Abuse and Mental Health Services Administration (SAMHSA) of the Department of Health and Human Services through a grant relationship between SAMHSA and the Blackfeet Tribe. The Tribe in turn operated the Po'Ka Project as a tribal enterprise. Managers and staff were tribal employees subject to tribal employment rules and regulations, with oversight from the Blackfeet Tribal Business Council. Beginning in 2005 with a $1,000,000 federal disbursement, the grant ultimately became a $9.3 million program over a six year period (2005-2011). The funding arc started with the $1,000,000 award, rose to $2,000,000 per year for two years (2007, 2008) and then tapered off to $1,000,000 in 2010 and $300,000 in 2011.
According to the SAMHSA grant synopsis, the Po'Ka Project - also known as Blackfeet Children System of Care - was a reservation-wide children's mental health system. "Po'Ka goals are: (1) to implement the systems of care philosophy at the local Tribal level; and (2) to identify, plan for, or enhance coordination and facilitate a wraparound process enabling children with SED (Severe Emotional Disorders) and their families to access services to meet their needs."
Francis Onstad served as the Director of Po'Ka and Delyle Shanny Augare as the Assistant Director. Dr. Gary Conti, then a full professor at Oklahoma State University in Stillwater, Oklahoma, served as the national evaluator for the grant and Dr. Dorothy Still Smoking--who had received her doctorate from Montana State University when Conti was a professor in Bozeman during the 1990s-served as the local evaluator. Still Smoking, who was a full time employee with the Blackfeet Housing Authority, provided her services as an independent contractor for Conti and his business, Learning Associates, and was paid for her services through Conti. Conti's services were also billed and paid for through Learning Associates' contract with the Po'Ka Project.
Liz Sherman served as the In-Kind Coordinator for Po'Ka and Charlotte New Breast was the administrative assistant for Po'Ka.
Onstad, Augare, Still Smoking, Sherman, and New Breast were named in the 37-count indictment handed down by the Grand Jury in July 2013, but all reached plea agreements with the United States and plead guilty to charges in the indictment. There sentencing is scheduled for June 2014.
The In-Kind Contribution Requirement And The False Claims Conspiracy
The SAMSHA grant required that the Blackfeet Tribe make the Po'Ka Program self-sufficient; a completely tribal program - entirely supported by the Tribe - by the end of the grant period. The grant required that the Tribe provide a certain amount of funding. "A requirement contained in certain legislation, regulations, or administrative policies that a recipient must maintain a specified level of financial effort in the health area for which Federal funds will be provided in order to receive Federal grant funds." (Emphasis added) Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (SED), CMHS Child Mental Health Service Initiative Number: 93.104. To achieve the goal of final self-sufficiency, the Tribe was required to provide matching contributions-either cash or in-kind-to continue to secure federal payments with the idea that as federal participation declined, tribal participation would rise to fill the funding void left by the absence of federal funds. It was the intent of the parties and SAMHSA that the Po'Ka Project would survive on its own once federal funding was no longer forthcoming.
An in-kind contribution is a non-cash contribution provided by non-federal third parties in support of the project funded by the grant, and its objectives. Third party in-kind contributions may be in the form of real property, equipment, supplies and other expendable property, and the value of goods and services directly benefitting and specifically identifiable to the project or program.
A key component of the grant award was the funding arc; the ratio of federal money to in-kind contributions. Only if Po'Ka met the in-kind contribution targets could they receive the maximum amount of federal money from the grant. Consistent with the sustainability objective of the grant, the Tribe's in-kind contribution requirement was the highest in the later years of the grant. The Blackfeet Tribe was required to provide $7.0 million of in-kind contributions from FYs 2009 through 2011. That created an environment where the appearance of substantial in-kind contributions became paramount if the maximum flow of federal money from the grant was going to continue.
Evidence produced at trial revealed that the in-kind commitment could never be honestly met, so the conspirators began making up facts and documents to try and satisfy SAMHSA and the auditors that the in-kind contributions represented on their reports to SAMHSA were legitimate. They did so by inflating the figures related to in-kind contributions, assigning values to non-existent and illegitimate "contributions," and manufacturing fraudulent invoices and records to support fictional or inflated contributions. The misrepresentations as to in-kind amounts were made in monthly reports to SAMHSA and the documents were generated to placate auditors conducting a required annual audit of the Tribe's operations. These annual audits are required of tribes accepting federal grant funds to insure that the grant funds are being used for their intended purpose and that the requirements of the contract agreement are being met. If auditors make negative findings, those findings can result in action by the federal agency to rescind the contract, demand repayment, or make an offset, where the government deducts money from future payments.
Several witnesses, whose names were used as in-kind contributors, denied preparing or signing the invoice and denied contributing time or goods to the Po'Ka Project.
Based on email evidence and the statements of cooperating witnesses, Onstad, along with Conti, Sherman, and others, conspired to make the false representations as to the in-kind contributions made to the Po'Ka Project, and then actively managed the creation of false documentation to cover the representations so that the auditors would not question the contributions and the federal money would continue flowing unabated. The false representations were, in effect, false claims that resulted in the expenditure of federal grant money that would not have been expended had the principals honestly represented the woefully inadequate level of non-federal support.
Emails entered into evidence by the prosecution indicated that Conti was often consulted for advice as to how to appease auditors hired by the Tribe to perform a mandatory audit.
Auditors with the Office of Inspector General (OIG), U.S. Department of Health and Human Services, have determined that at least $4.6 million in claims for grant payments paid to the Tribe on the basis of Po'Ka' s in-kind contribution are unsupported, inflated, or completely falsified.
The Embezzlement Scheme With Conti
At trial, witnesses described how Onstad and Augare had embezzled from the program in a myriad of ways - travel fraud, misuse of Po'Ka credit cards, exorbitant claims of overtime, theft of program property, etc. - but the most significant embezzlement came in the agreement Onstad and Augare appeared to have reached with Conti wherein they would approve payments to Conti with the understanding that he would kick back a sizable portion-roughly one-half of the payment amount-to a bank account they controlled in the name of a children's charity, the Child Family Advocacy Center CFAC).
A forensic accountant with the FBI told the jury that between August 2008 and August 2011, Onstad and Augare approved over $475,000 in Po'Ka grant monies for Conti's business, Learning Associates. In turn, between August 2008 and September 2011, Conti transferred $231,550 to CFAC bank accounts at Wells Fargo Bank in Cut Bank.
Conti had declared bankruptcy in Oklahoma on April 29, 2009. Four days later Conti opened a Browning bank account for Learning Associates and began having his payments from the Blackfeet Tribe deposited into that account. Between May 2009 and August of 2011, each time a Po'Ka check would be deposited into the Browning account, Conti wrote checks from approximately half the amount to CFAC. The FBI witness testified that the amount from Conti was split roughly equally by Onstad and Augare through withdrawals from the CFAC accounts and deposits into their personal accounts and that the disposition of the money from their appeared mostly casinos and travel to Nevada.
Conti was convicted of conspiracy to defraud the United States, conspiracy to submit false claims against the United States, aiding theft from an Indian tribal government receiving federal funding, money laundering, theft of federal money, and twenty-one counts of wire fraud. Another jury found Conti guilty of bankruptcy fraud in March.
U.S. Attorney Mike Cotter lauded the jury's verdicts. "Grants like Po'Ka reflect the generous spirit of this country to help the least fortunate among us. For their objectives to be accomplished they must be protected and their integrity preserved. When a group of predatory opportunists see these grants as a golden goose ready to be exploited for personal gain, this office will respond with clear and decisive prosecution as a message to all that corruption in in any community in Montana will not be tolerated and that those who pillage public funds had best factor dire consequences into their decision to commit fraud."
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on May 15, 2014 and entering pleas of Not Guilty were:
- MICHAEL LEWIS ANDREWS, a 64-year-old resident of Billings, appeared on charges of threatening to destroy a building with explosives, false information and hoaxes. If convicted of the most serious charges contained in the indictment, ANDREWS faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Violent Crime Task Force. PACER Case Reference: 14-26
- DEANDRE LARON CLEMONS, 28-year-old resident of Flint, Michigan, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of heroin. If convicted of the most serious charges contained in the indictment, CLEMONS faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Missouri River Drug Task Force and the Bozeman Police Department. PACER Case Reference: 14-10
Appearing before U.S. Magistrate Judge Strong in Great Falls on May 15, 2014 and entering pleas of Not Guilty were:
- TYLER ALLEN WILSON, a 25-year-old resident of Lewiston, appeared on charges of being a felon in possession. If convicted of the charge contained in the indictment, WILSON faces 10 years imprisonment, $250,000 in fines, and 3 years supervised release. PACER Case Reference: 14-24
Appearing before U.S. Magistrate Judge Ostby in Billings on May 19, 2014 and entering pleas of Not Guilty were:
- DAVID DELCARMEN, a 32-year-old resident of Los Angeles, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, DELCARMEN, faces life imprisonment, $10,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation, the Eastern Montana HIDTA, and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- BRET ALLEN HITSHEW, a 48-year-old resident of Missoula, appeared on charges of being a felon in possession of a firearm. If convicted of the charge contained in the indictment, HITSHEW faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Montana Highway Patrol. PACER Case Reference: 13-25
Appearing before U.S. Magistrate Judge Strong in Great Falls on May 20, 2014 and entering pleas of Not Guilty were:
- BRENDEN JAMES LEISCHNER, a 23-year old resident of Great Falls, appeared on charges of conspiracy to defraud the United States, federal student aid fraud/false statements, federal student aid fraud/theft of government money, and aggravated identity theft. If convicted of the most serious charges contained in the indictment, LEISCHNER faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation, U.S. Department of Interior Office of Inspector General and the U.S. Department of Education. PACER Case Reference: 14-34
- TAMMY KAY LEISCHNER, a 43-year-old resident of Laurel, appeared on charges of conspiracy to defraud the United States, federal student aid fraud/false statements, and federal student aid fraud/theft of government money. If convicted of the most serious charges contained in the indictment, LEISCHNER faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation, U.S. Department of Interior Office of Inspector General and the U.S. Department of Education. PACER Case Reference: 14-34
- MARK CRAIG LEISCHNER, a 47-year-old resident of Laurel, appeared on charges of conspiracy to defraud the United States, federal student aid fraud/false statements, federal student aid fraud/theft of government money, and aggravated identity theft. If convicted of the most serious charges contained in the indictment, LEISCHNER faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation, U.S. Department of Interior Office of Inspector General and the U.S. Department of Education. PACER Case Reference: 14-34
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.
Gary Conti Found Guilty on 26 of 27 Counts of Public CorruptionRead the Press Release
The United States Attorneys Office announced today that a federal trial jury has just found Gary Joseph Conti guilty of the following charges: Conspiracy to defraud the United States (1 count); Scheme to Defraud the United States and the Blackfeet Tribe (21 counts); Theft of Federal Property by Fraud (1 count); Federal False Claims Act Conspiracy (1 count); Theft From an Indian Tribal Government Receiving Federal Grants (1 count); and Money Laundering (1 count). The defendant has been release pending sentencing which has been set for September 4, 2014 at 9:00 am in Great Falls.
First Rider Sentenced for Assaulting Federal Prison GuardsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on May 12, 2014, before U.S. District Judge Brian M. Morris, JASHA LASHELL FIRST RIDER, 29, of Browning, was sentenced to a term of 20 months imprisonment, two years supervised release, and a special assessment of $200.
First Rider was sentenced because she assaulted two federal officers while in jail. In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government would have proven that First Rider appeared in Blackfeet Tribal Court and had her bond set higher than she wanted. First Rider became enraged when at the Blackfeet Tribal Jail. Federal officers at the jail approached First Rider, but she punched one in the face and scratched another repeatedly.
First Rider pleaded guilty to two counts of Assault on a Federal Officer. In a sentencing memorandum, Weldon told the Court, "First Rider assaulted two correctional officers because she disagreed with a judicial decision. She disrupted the jail facility, and officers were required to shuffle inmates-a dangerous endeavor by itself-in order to ensure that First Rider did not hurt herself or others. Despite federal officers' best efforts, First Rider punched one in the face and scratched another. . . . First Rider has a pattern of assaultive conduct, including assaulting officers. Not only must the Court consider how it will deter First Rider from assaulting officers, but others must realize that such decisions will be met with severe consequences. Federal officers demand this protection and so do their families."
The Court sentenced First Rider to 20 months of imprisonment, with two years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that First Rider will likely serve all of the time imposed by the court. In the federal system, First Rider does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This investigation was conducted by the Federal Bureau of Investigation.
Big Timber Woman Sentenced in Bakken Drug Trafficking CaseRead the Press Release
The United States Attorney's Office announced that KERA EVANS, 30, of Big Timber, was sentenced to a term of 96 months imprisonment, five years supervised release, and a special assessment of $100 during a federal court hearing in Billings, Montana, on May 14, 2014, before U.S. District Judge Susan Watters.
EVANS was sentenced in connection with her November 22, 2013, guilty plea to the crime of possession with intent to distribute methamphetamine. The prosecution was part of "Project Safe Bakken," an effort by led by the United States Attorneys for Montana and North Dakota, the Attorneys General for Montana and North Dakota, and a host of federal, state, local, and tribal law enforcement agencies to provide a systematic response to serious crime, including drug trafficking, in the Bakken Region. In EVANS' case the investigation was led by the Montana Division of Criminal Investigations (MDCI), the United States Drug Enforcement Administration (DEA), the Sidney Police Department, and the Sweet Grass County Sheriff's Department as part of a long term investigation.
In an offer of proof, Assistant U.S. Attorney Joseph Thaggard stated the government would have proved that EVANS was a significant player in a methamphetamine distribution ring that transported large amounts of almost completely pure methamphetamine from the State of Washington to Montana. Thaggard further stated that much of the methamphetamine was then primarily distributed in the Bakken Region of Northeastern Montana and Western North Dakota, including Sidney and Fairview.
The District Court sentenced Evans to 96 months of imprisonment, with five years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that EVANS will likely serve all of the time imposed by the court. In the federal system, EVANS does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
U.S. Attorney Mike Cotter said the sentence reflects the seriousness of the crime and underscores the need to protect Montanans from methamphetamine trafficking and organized crime. "Methamphetamine trafficking presents a serious threat to the health and safety of our community, particularly the Bakken Region. The investigation and prosecution in this case demonstrate that all levels of law enforcement in Montana and North Dakota take that threat seriously and will seek to ensure those who engage in drug trafficking are held accountable for their crimes."
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Strong in Great Falls on May 13, 2014 and entering pleas of Not Guilty were:
- TERRY LEE MESSOM, a 45-year-old resident of Plentywood, appeared on charges of distribution and possession of child pornography. If convicted of the most serious charge contained in the indictment, MESSOM faces 20 years imprisonment, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-31
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Ostby in Billings on May 7, 2014 and entering pleas of Not Guilty were:
- JORDAN CAMPBELL-ZORN, a 22-year-old resident of Glendive, appeared on charges of receipt of child pornography. If convicted of the charge contained in the indictment, CAMPBELL-ZORN faces 5 years imprisonment, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-41
Appearing before U.S. District Judge Brian Morris in Great Falls on May 8, 2014 and entering pleas of Not Guilty were:
- ADAM BLUE COLGAN, a 33-year-old resident of Poplar, appeared on charges of possession of an unregistered destructive device and transportation of explosive material by a non-licensee. If convicted of the charges contained in the indictment, COLGAN faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 13-114
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 Man Sentenced to 8 Years in Federal Prison for MethRead the Press Release
The United States Attorney's Office announced that TODD ALLEN SCHMIDT, 50, of Great Falls, was sentenced to 96 months in prison, to be followed by four years of supervised release, during a federal court session in Helena on May 7, 2014, before Senior U.S. District Judge Sam Haddon. Schmidt was sentenced in connection with his January 2014 guilty plea to possession with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the prosecution told the Court that on January 14, 2013, in Helena, an informant contacted a local methamphetamine dealer to arrange to purchase 2 ounces of methamphetamine. The first drug dealer was out of town, but told the informant that he could obtain methamphetamine from Todd Schmidt, and that he, the first drug dealer, would have Schmidt call him, the informant.
A short time later, the informant received a call from Schmidt who told the informant that he would meet Schmidt the next evening in Helena with the methamphetamine. The following evening, January 15, 2013, the informant placed several calls to Schmidt which were recorded by law enforcement. The two agreed to meet at the Grub Steak Restaurant parking lot in Helena. Law enforcement provided the informant with sufficient funds to complete the transaction and then monitored the meeting with Schmidt.
Schmidt arrived at the Grub Steak parking lot in a white Cadillac. Schmidt got out of his vehicle and into the informant's vehicle where he gave the informant approximately 2 ounces of methamphetamine in exchange for the cash. Schmidt did not count the money and immediately left the vehicle. Schmidt got back into his car and drove out of the parking lot. The informant then turned the drugs over to law enforcement which were later analyzed and found to contain methamphetamine.
The case was investigated by the Federal Bureau of Investigation, Montana Division of Criminal Investigations, and the Missouri River Drug Task Force.
Washington Man Receives 19 Year Sentence in Child Pornography CaseRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls on April 28, 2014, before U.S. District Judge Brian Morris, KEITH CLIFFORD CUNNINGHAM, 70, of Kent, Washington, was sentenced to 228 months imprisonment followed by 5 years supervised release.
Cunningham was sentenced in connection with his January 2014 bench trial where he was found guilty. In a trial brief filed by Assistant U.S. Attorney Cyndee L Peterson, the government stated that the defendant Keith Clifford "Casey" Cunningham had traveled around several states, including Montana, due to his work on pipelines. In mid-August 2011, Cunningham was in Stanford, Montana. Cunningham had been intermittently visiting Stanford and frequenting the local diner for a couple years. On August 18, 2011, Cunningham saw an 8 year old girl in a local diner. Cunningham learned the girl's mother would be out of town for the day, and knew the girl was going to the local swimming pool that day.
That day, Cunningham befriended the child at the public swimming pool. Cunningham groomed the child throughout the day by doing such things as challenging her to play games at the pool, promising her chocolate bars, letting the child drive his vehicle while seated on his lap, and acting as though he was looking out for the child's well-being while her mother was out of town. Eventually, Cunningham took the little girl to the Judith Basin County Fairgrounds where he produced child pornography of the 8 year old girl. During an interview with law enforcement officers, Cunningham admitted he produced the images of the child with his digital camera stating that the child was acting "sexy" and wanted him to take the photographs.
The Grand Jury indicted Cunningham for production of child pornography in violation of federal law, and he was convicted of the crime at a bench trial on January 14, 2014. At trial, there was also evidence that Cunningham had previously purchased videos depicting child pornography online.
The United States' Attorneys Office for the District of Montana is committed to the safety and well-being of every child and has placed a high priority on combating sexual exploitation of minors. This case was prosecuted by an Assistant U.S. Attorney specifically designated to be a Project Safe Childhood for the District of Montana. Project Safe Childhood is a Department of Justice initiative launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. The threat of sexual predators soliciting children for physical sexual contact is well-known and serious. The danger of sexual perpetrators who produce child pornography - like Mr. Cunningham -- is equally, if not more, dramatic and disturbing.
Through a network of federal, state, tribal, 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. Project Safe Childhood is implemented through partnerships including the organizations who were involved in this case: Homeland Security Investigations, the Montana DOJ Division of Criminal Investigation, the Montana Internet Crimes Against Children Task Force, the Fergus County Sheriff's Office, and the Judith Basin County Sheriff's Office.
Ronald Randolf Johnson Sentenced for Obtaining Oxycodone by DeceptionRead the Press Release
The United States Attorney's Office announced that on April 24, 2014, RONALD RANDOLF JOHNSON was sentenced to a year in prison and a year of supervised release by Senior U.S. District Judge Sam Haddon. Johnson, of Couer d'Alene, Idaho, was sentenced in connection with his guilty plea to obtaining Oxycodone, a potent pain killer available only by prescription, by deception. In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, told the Court that on September 10, 2010 and on October 3, 2011, Johnson signed an Agreement and Consent for Controlled Medication Therapy for Chronic Pain with Dr. Deborah Kern at Community Health Partners in Bozeman, Montana. In that agreement, he agreed that he would only use one provider to prescribe controlled substance(s). He further agreed that he would not request any pain medications or controlled substance from other providers. And, that he would inform any other health care provider that he was taking controlled substance(s) from Dr. Kern. Johnson further represented that his date of birth was 4/10/1959. Based upon Johnson's representations, he was able to obtain prescriptions from Dr. Kern for Oxycodone. Johnson deceived Dr. Kern because he was in fact seeing other physicians from whom he was also obtaining Oxycodone and the birthdate, a common method of verifying patient identity, was a fake.
Upon learning that Johnson had not been truthful about his treatment with other physicians, and that he had been prescribed narcotics from other physicians, Dr. Kern terminated her care of Johnson and on August 15, 2012, sent Johnson a letter stating, "This letter is to inform you that I will no longer be able to prescribe narcotics for you for your chronic pain effective today. It has come to my attention that you are on a pain contract with a provider in Idaho for narcotics as well."
Johnson made similar misrepresentations to pharmacies in order to obtain large quantities of Oxycodone. For example, on September 27, 2012, at a pharmacy in Liberty Lake, Washington, Johnson attempted to fill a prescription for Oxycodone from Dr. Heidi Kallestad. When Johnson went to fill the prescription he was asked by the pharmacist to verify his date of birth. Johnson verbally stated that his date of birth was 4/10/1959. This date of birth was different than the date the pharmacy had on record for him. When asked for identification he provided an Idaho license which had a crease down the center and the date of birth had been punched out by what looked like a sharp object. Local law enforcement was called and Johnson was arrested.
Using a correct and truthful date of birth is critical when filling prescriptions because it is one method used by physicians, pharmacies, and law enforcement to detect fraudulent prescriptions and to prevent patients from obtaining a greater amount of a controlled substance than they would otherwise be entitled. Furthermore, Johnson did not notify any of the physicians that he was being treated by any other physicians or that he was already receiving a controlled substance from a separate/different physician. During the period of time charged in the indictment, Johnson fraudulently obtained prescriptions for more than 13,000 pills of Oxycodone through his deception, fraud, and misrepresentations made to physicians and/or pharmacies.
Moses Lake Methamphetamine Trafficker Given 51 Month in PrisonRead the Press Release
The United States Attorney's Office announced that ENRIQUE LOPEZ SOLANO, 40, from Moses Lake, Washington, was sentenced to 51 months imprisonment followed by 3 years supervised release during a federal court session in Missoula on April 29, 2014, before Senior U.S. District Judge Donald Molloy. Solano was sentenced in connection with his guilty plea to possession with intent to distribute methamphetamine.
Assistant U.S. Attorney Joseph E. Thaggard told the Court that in early 2013, the Montana Division of Criminal Investigation (MDCI), Sidney, Montana Police Department, and the Drug Enforcement Administration (DEA) began to investigate a drug trafficking organization that was distributing methamphetamine in the Sidney, Montana area. The investigation disclosed that a courier involved with the drug trafficking organization had met with "Jane Doe," another member of the organization, during a meeting in Livingston, Montana in mid-March 2013 wherein the courier distributed methamphetamine to Jane Doe. Jane Doe subsequently identified Solano as the drug courier she met in Livingston in mid-March 2013 and from whom she received methamphetamine. On June 15, 2013, the Montana Highway Patrol stopped a rental car Solano had rented and in which he was a passenger at the time of the stop. A search of the vehicle revealed more than 200 grams (roughly 7 ounces) of methamphetamine hidden in or near the air filter of the car.
The prosecution was part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota working together to stem the rising tide of drug trafficking in the oil boom region of the Bakken Fields.
James Fray Sentenced to Prison for Illegally Possessing FirearmsRead the Press Release
The United States Attorney's Office announced that JAMES EUGENE FRAY, 59, of Missoula, was sentenced to 57 months imprisonment, $10,000 in fines and 3 years supervised release, during a federal court session in Missoula on April 29, 2014, before Senior U.S. District Judge Donald Molloy. Fray was sentenced in connection with his December 2013 guilty plea to being a felon in possession of a firearm.
Assistant U.S. Attorney Paulette L. Stewart told the Court that between September 25, 2013, and October 4, 2013, Fray, a federally convicted felon, possessed ten firearms in Missoula, Montana. Fray has a federal conviction for a violation of 18 U.S.C. Section 922 (h), being a convicted felon receiving a firearm, that prohibits him from possessing firearms. The case agent obtained a certified copy of the Judgment from the United States District Court in North Dakota which documents Fray's name as James Anthony Frey. Due to a previous ATF investigation, the case agent verified that James Eugene Fray and James Anthony Frey are one and the same person.
Some of those firearms were stolen. On October 3, 2013, Missoula area law enforcement executed a search warrant on Fray's Toyota pickup truck. During the search warrant execution, the officers recovered firearms and ammunition. The firearms were stolen from a storage shed in the Missoula area. Investigation revealed that Fray purchased the firearms knowing that they were stolen.
JAMES ZANDER PLEADS GUILTY TO TAX EVASION Great Falls Dentist Used Fraudulent Religious Enterprise to Claim Exemption from TaxationRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls on May 5, 2014, before U.S. District Judge Brian Morris, JAMES ZANDER, 63, pled guilty to one count of Tax Evasion. Zander faces a potential sentence of five years in prison, $250,000 fine, the costs of prosecution and three years of supervised release. Restitution will include unpaid taxes, interest and penalties.
In an Offer of Proof filed by Assistant U.S. Attorney Chad Spraker, Spraker told the Court that Zander, a dentist who owned and operated Dental Care of Great Falls beginning in 1992, filed individual income tax returns until the 2001 tax year. Zander's tax preparer prepared an IRS Form 1040 2001 individual income tax return for Zander and an IRS Form 1120S for Zander's solely owned corporation, Dental Care of Great Falls. Zander did not file the individual 2001 return. Dental Care of Great Falls, however, filed the corporate return, which was signed by Zander. The corporate return listed $101,755 in officer compensation and $117,769 in pass-through income. Dental Care of Great Falls also submitted a 2001 IRS Form W-2 to the IRS listing Zander's wages at $101,755. Spraker provided the Court Zander's filing history to establish his knowledge of the filing requirements.
On February 20, 2002, Zander formed Solid Rock Partners, LP in Nevada; on July 16, 2003, he formed Royal Priesthood Society, a corporation sole, in Nevada; and on June 10, 2008, he formed American Humanitarian Project, another corporation sole, in Arizona. Zander opened and maintained bank accounts for each of these entities.
Zander maintained two bank accounts for Dental Care of Great Falls. According to Zander's assistant, one account funded office bills and the other account funded Royal Priesthood Society. Zander used money from Royal Priesthood Society for personal expenditures. According to Zander's bookkeeper, Zander instructed her to classify checks from Dental Care to Royal Priesthood Society as charitable contributions. From 2006 to 2009, $271,000 in checks was issued from Dental Care of Great Falls to Royal Priesthood Society. From 2002 to 2009, Zander purchased five parcels of land in the name of Solid Rock Partners and Royal Priesthood Society.
On February 17, 2004, Zander sent a signed IRS Form 1040 2001 individual income tax return to the IRS listing zeroes in each of its sections for income, adjusted gross income, and tax liability. The return requested a $27,131 refund, the amount Zander had withheld that year.
On July 2, 2004, the IRS sent Zander a letter informing him that his 2001 return was frivolous and warned him of the consequences of not paying his taxes. Based upon the 2001 IRS Form 1120S for Dental Care of Great Falls, the W-2 issued to Zander, and other documents received by the IRS, the IRS completed an audit and assessed Zander's 2001 tax liability at $86,195.37. On May 10, 2006, the IRS sent Zander a letter with the proposed assessment and again warned him of the consequences of failing to pay his taxes. When Zander did not respond to the letter, the IRS issued him a June 30, 2006, notice of deficiency, and on February 26, 2007, the IRS assessed his 2001 tax liability at $87,694.90. The IRS later revised its assessment and calculated a $100,972.81 liability as of March 10, 2010 for the tax year 2001.
In December 2007 and January 2008, the IRS issued a notice of levy to Zander with respect to bank accounts he held at Stockman Bank. In response, Zander sent letters to Stockman Bank asserting that the levies were unlawful and Zander is not subject to taxation. After the IRS collected approximately $2,000 from the levies, Zander stopped making deposits into the Stockman accounts and closed them on November 18, 2008.
On April 13, 2009, IRS Revenue Agent Graves served summonses on other financial institutions holding Zander's money, including First Interstate Bank. Zander closed his bank account at First Interstate Bank on October 16, 2009.
On October 23, 2009, and November 2, 2009, Zander sent fictitious $300 million "Private Indemnity Bonds" to the U.S. Treasury Secretary. The "Private Indemnity Bonds" purported to offset Zander's pre-existing and future liabilities.
IRS Revenue Officer Murray placed liens on Zander's property at the Cascade County Clerk and Recorder's office on October 7, 2009. The following day Murray hand delivered three letters to Zander warning of IRS collection for the tax years 2001 and 2005. On October 19, 2009, Zander responded and attached the IRS's levy notices stamped "Refused for Cause." On October 21, 2009, Murray sent Zander a letter warning him of the frivolous nature of his arguments and the potential for criminal penalties. On November 30, 2009, Zander sent Rena Moore, the Cascade County Clerk, a letter demanding she release the tax liens within ten days.
Despite Zander's tax debt, Dental Care of Great Falls earned over $1 million in gross receipts from 2006 to 2009. From 2003 to 2009, Zander spent $274,905 on precious metals, and from 2002 to 2009 he spent $108,168 on five parcels of land.
Sentencing is set for August 15, 2014, at the Missouri River Courthouse in Great Falls, Montana.
The case was investigated by the Criminal Investigation Division of the Internal Revenue Service.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today 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 Strong on May 6, 2014 and entering pleas of Not Guilty were:
- JONAS L. FLANSBURG, a 31-year-old resident of Dodson, appeared on charges of being a felon in possession of a firearm. If convicted of the charged contained in the indictment, FLANSBURG faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-29
Appearing before U.S. Magistrate Lynch in Missoula on May 6, 2014 and entering pleas of Not Guilty were:
- STEVEN MICHAEL CATE, a 44-year-old resident of Newport, Washington appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, CATE faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 14-21
- DANIEL ROGER RACHELL, a 43-year old resident of Darby, appeared on charges of threats against the President and threats against former presidents and certain other persons. If convicted of the most serious charges contained in the indictment, RACHELL faces 5 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Secret Service. PACER Case Reference: 14-25
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.
Felis Lusiano Romo Found Guilty in Federal CourtRead the Press Release
The United States Attorney's Office announced that on April 24, 204, in Billings, after a 2 day federal district court trial before U.S. District Judge Susan P. Watters, FELIS LUSIANO ROMO, a 32-year-old resident of Moses Lake, Washington, was found guilty of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and felon in possession of a firearm. He is currently detained pending sentencing.
Assistant U.S. Attorney Paulette Stewart presented evidence that in 2012 and 2013, Robert Armstrong operated a drug distribution enterprise between Moses Lake, Washington, and Sidney, Montana. Felis Romo was among those who supplied methamphetamine to Armstrong for re-distribution in the Bakken. The evidence disclosed that Armstrong had begun methamphetamine trafficking operations in the Sidney area in approximately April 2012 and the activities of Armstrong and his coconspirators continued until approximately September/October 2013. The conspiracy employed couriers who transported methamphetamine from the State of Washington to Montana. Sometimes the couriers drove the methamphetamine all the way to Sidney and other times the couriers met Armstrong, or his associates, mid-way---at Butte, Big Timber, and Livingston.
In early 2013, members of the Montana Division of Criminal Investigation (MDCI), the United States Drug Enforcement Administration (DEA), and the Sidney, Montana Police Department began to investigate Armstrong's drug trafficking organization. As part of the investigation, informants and an undercover MDCI agent made controlled purchases of methamphetamine from Armstrong and many of his associates in February and March, 2013.
In the summer of 2013, Armstrong's operation was faltering and Romo came to Sidney from Moses Lake to get things straightened out and take over for Armstrong as the organization's distributor in the Sidney/Bakken area.
A grand jury subsequently indicted Armstrong and several of his accomplices who have all since entered guilty pleas to trafficking charges.
Romo faces possible penalties of 40 years imprisonment, $5,000,000 in fines and 4 years supervised release.
Drug Traffickers Sentenced in Federal CourtRead the Press Release
The United States Attorney's Office announced that IRENE ALINA MICHELL and TYSHA LEANN MICHELL were sentenced for trafficking methamphetamine from Washington into Montana. IRENE ALINA MICHELL, age 33, of Great Falls, Montana, was sentenced to a term of 132 months imprisonment, five years supervised release, and a special assessment of $100 during a federal court hearing in Great Falls, Montana, on May 1, 2014, before U.S. District Judge Brian M. Morris. On the same date, TYSHA LEANN MICHELL, age 35, of Great Falls, Montana, was sentenced to 60 months imprisonment, four years supervised release, and a special assessment of $100. The United States also forfeited cash proceeds and a vehicle used during the commission of the offense.
IRENE ALINA MICHELL and TYSHA LEANN MICHELL were sentenced in connection with their January 2013 guilty pleas to conspiracy to possess with the intent to distribute methamphetamine. In an Offer of Proof, Assistant U.S. Attorney Ryan Weldon stated it would have proved that Sylvia Martinez transported methamphetamine from Washington to Great Falls, Montana. On October 31, 2013, federal agents observed IRENE ALINA MICHELL and TYSHA LEANN MICHELL and others parked at a local hotel. Agents conducted surveillance and watched several members of the conspiracy distribute methamphetamine. After obtaining a federal warrant, authorities searched the hotel that IRENE MICHELL, TYSHA MICHELL, and others were using and discovered 297.4 grams of pure methamphetamine, as well as cash.
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that IRENE ALINA MICHELL and TYSHA LEANN MICHELL will likely serve all of the time imposed by the court. In the federal system, prisoners have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This case was investigated by the Federal Bureau of Investigation, the United States Probation Office, and local law enforcement agencies.
Bozeman Woman Sentenced for Impersonating A Federal OfficerRead the Press Release
The United States Attorney's Office announced that during a federal court session in Butte on April 25, 2014, before U.S. District Judge Sam Haddon, MARY ANN McCULLEY, 55, of Bozeman, was sentenced to 12 months imprisonment and 1 year supervised release.
McCulley was sentenced in connection with her October 2013 guilty plea to false impersonation of a federal officer or employee. In an offer of proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated that on April 24, 2012, McCulley went to the home of a person identified in the pleadings only as "T.C." in Bozeman, Montana. T.C. was a witness in a civil case involving McCulley, US Bank, and American Land and Title Company. McCulley, who appeared to be wearing a disguise, told T.C. that her name was Angela Connell and she was conducting a securities investigation into US Bank. She said T.C.'s name had been mentioned in connection with the investigation, but he was not a suspect. During her meeting with T.C., McCulley represented herself to be both an FBI agent and an agent from the Department of the Interior.
T.C. eventually told McCulley that he needed to contact a lawyer before answering any more questions. McCulley told T.C. that if he refused to talk to her, he would have to speak with an FBI agent from Bozeman. T.C. agreed to meet with the Bozeman FBI and asked McCulley for their phone number. McCulley explained that she had it written down in her car. T.C. accompanied McCulley outside to her vehicle, but she could not find the number. T.C.'s wife photographed the vehicle's license plate before McCulley drove away. The plate was from New Mexico and the number was 114-PYW. Further investigation revealed that McCulley rented the car from Avis Rental Car Company at the Bozeman Airport three days prior to meeting with T.C. and his wife.
Box Elder Man Sentenced to 13 Years in Prison for Assault of an InfantRead the Press Release
The United States Attorney's Office announced that GARRETT KIRBY LaFROMBOISE, 21, of Box Elder, was sentenced to 160 months imprisonment and 4 years supervised release in federal court on April 25, 2014, before U.S. District Judge Brian Morris, LaFromboise was sentenced in connection with his guilty plea to assault resulting in serious bodily injury. Assistant U.S. Attorney Danna Jackson told the Court that on or around October 21, 2013, LaFromboise became frustrated when an eleven month old child would not stop crying. LaFromboise admitted to investigators that he inserted his fingers in the baby's mouth and gagged him to try to make him stop crying. LaFromboise confessed that as he became increasingly anger he punched the baby in the abdomen. He denied any other infliction of injuries to the child.
The child died as a result of significant injuries.
Jackson told the Court, in a written offer of proof, that medical evidence would have shown that the victim suffered numerous injuries including skull fractures, hemorrhages and bruises to the brain, hemorrhages to the spinal nerves, abrasion to the scalp, a broken nose, bruising on the torso, rib fractures, hemorrhages to the retina, bruises on the child's forehead, nose, cheeks, and ears, lacerations and contusions to the mouth, internal injuries, bruises to the lower extremities, and lacerations on the tips of the child's left hand. The medical examiner, who issued the Report of Postmortem Examination, found that because the exact mechanism or mechanisms of death responsible for the complex skull fracture, cerebral contusions,
Havre Psychologist Pleads Guilty to Bribery and Tax FraudRead the Press Release
The United States Attorney's Office announced that Dr. James Howard Eastlick, Jr., the former Clinical Psychologist at the Rocky Boy Health Clinic, entered pleas today in three of four indictments handed down by the Grand Jury charging him with public corruption and tax fraud. Eastlick appeared before U.S. District Judge Brian Morris in Great Falls to enter the guilty pleas.
BRIBERY OF TONY BELCOURT
Eastlick pled guilty to bribery in giving $100,000 to Tony Belcourt in November of 2009 from a company in which he controlled a 49% interest-Hunter Burns Construction. United States v. Belcourt, et al, CR-13-82-GF-BMM. The payment was characterized as a "loan" but was not paid back until 2013 when Belcourt and Eastlick became the subjects of a federal corruption investigation. Belcourt had awarded Hunter Burns Construction several construction contracts from federal funds provided to the Chippewa Cree Tribe and its corporation, the Chippewa Cree Construction Corporation, of which Belcourt was the Chief Executive Officer and Contracting Officer. Belcourt had sold cattle out of trust meaning without the knowledge and consent of the Independence Bank who held a lien against the cattle to collateralize the loans made to Belcourt and his wife. When the Bank discovered the conversion, it demanded payment of $107,000 from the auction company who had sold the cattle on Belcourt's behalf, and the auction company, in turn, demanded payment from the Belcourts.
Tony Belcourt approved and authorized a Chippewa Cree Construction Corporation payment to Hunter Burns Construction on November 21, 2009, in the amount of $148,972. Two days later, on November 23, 2009, Hunter Burns Construction issued a $100,000 check to Hailey Belcourt. Hunter Burns Construction did not have the funds to make the payment to Belcourt until the federal construction funds were deposited from the Chippewa Cree Construction Corporation. The company recorded the payment as a personal loan to Hailey Belcourt who then used the money to re-pay the livestock auction company by wire transfer of $107,153.09 on November 27, 2009. Four months later, in March of 2010, Hunter Burns Construction received a $1.7 million contract from Belcourt.
Additional details can be found in the government's extensive Offer of Proof filed with the Court with that case number and accessible through PACER.
BRIBERY OF TRIBAL COUNCILMAN A
Eastlick also pled guilty to bribery in United States v. Eastlick, CR-14-33-GF-BMM which alleged that between July 28, 2009 through November 30, 2011, Eastlick and Hunter Burns Construction made $258,000 in bribe payments to a tribal councilman of the Chippewa Cree Tribal Business Committee identified in the indictment only as Tribal Councilman A. The government told the Court that Tribal Councilman A served on the Board of Directors for the Chippewa Cree Construction Corporation and the Rocky Boy's Health Care Board.
Prosecutors told the Court in an Offer of Proof that the investigation revealed that many of the transactions were not legitimate. For example, equipment purportedly sold to Hunter Burns Construction would continue to appear on Tribal Councilman A's inventory of equipment for bank loans and credit long after it was allegedly sold. One transaction was for the potential and prospective lease of property over ten years-paid in full up front-when the land was never used for any purpose by the construction company. Another payment was related to the disposal of hazardous waste which could not have been a legitimate transaction due to the regulatory requirements for the disposal of such material that Tribal Councilman A could not legally perform. Eastlick admitted that the payments were to maintain the favor of Tribal Councilman A and to keep federal contracts flowing to Hunter Burns Construction.
Additional details can be found in the government's Offer of Proof filed with the Court with that cause number and accessible through PACER.
FILING FALSE TAX RETURNS
In United States v. Eastlick, CR-14-32-GF-BMM, Eastlick pled guilty to one count of a four count indictment charging him with filing a false tax return. During the years covered by the indictment (2008-2011), Eastlick was a Clinical Psychologist for the Rocky Boy Health Clinic on the Rocky Boy's Indian Reservation. During this same period, 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, as a "pay-day" lender to individual tribal employees in smaller amounts. The loans Eastlick made for the tribe generally included interest rates of l0o/o, and were paid back within l0 weeks of Eastlick loaning the money. The annualized percentage rate (APR) for loans from the JE Loan program would constitute a 70% to 80% return. Short-term loans to individual tribal members also came with high annualized rates of interest.
In its Offer of Proof, the U.S. Attorney's Office indicated that it would prove that a significant amount of interest was never declared by Eastlick on his federal income tax returns. The government alleges that Eastlick underpaid his taxes by over $66,000 during the four year period of the indictment.
Additional details can be found in the government's Offer of Proof filed with the Court and accessible through PACER.
Eastlick's sentencing on the three felonies is set for August 15, 2014, in Great Falls.
The case was brought by the federal agents of the Guardians Project and was investigated by the Inspectors General of the Departments of Interior and Health and Human Services, and for the Environmental Protection Agency, as well as by the Internal Revenue Service Criminal Investigation Division and the FBI.
** CLARIFICATION** Intrieri Sentenced to 30 Months for Wire Fraud **CLARIFICATION**Read the Press Release
- RIFICATION**
Please be advised that Northeast Metal Traders was mistakenly named as being affiliated with STEPHEN SALVATORE INTRIERI in the news release issued below. In fact, Northeast Metal Traders has no affiliation with Mr. Intrieri or his business affairs. The wording of the press release and the document filed with the Court lacked clarity and the United States Attorney regrets any misunderstanding the drafting error may have created for the company or its customers.
ORIGINAL PRESS RELEASE DATED Wednesday, February 26, 2014 below
The United States Attorney(s Office announced that STEPHEN SALVATORE INTRIERI, 30, of Mount Laurel, New Jersey, was sentenced on February 20, 2014, to a term of 30 months in federal prison for with three years of supervised release to follow, for running an interstate scrap metal scam. Intrieri was sentenced by U.S. District Judge Dana L. Christensen in Missoula. Christensen also ordered Intrieri to pay $326,474.36 in restitution.
In an Offer of Proof filed with the Court, Assistant U.S. Attorney Tim Racicot
Whitefish Police Department initially received a complaint from an officer with a New Jersey scrap metal procurement company that buys scrap metal in the United States and sells it overseas. On February 29, 2012, the company received a call from "Tony Giordano," a salesman for Montana Metal Recyclers ("MMR"), which was allegedly doing business from Whitefish, about purchasing scrap metal. An agreement was reached and on June 8, 2012, the New Jersey company wired $19,000 to MMR's bank account at Bank of America.
The officer of the New Jersey company told police that he was cautious in his dealings with Giordano, but Giordano's knowledge of the scrap metal industry made him comfortable proceeding with the deal after receiving pictures of the material he was purchasing and Giordano's answers to some technical questions about the industry and the shipment. After he sent the money, Giordano could never be reached and the company never received the scrap metal it had purchased. When the company official was later asked if he had prior interactions with Intrieri, he described being defrauded out of $30,000 by Intrieri and Northeast Metal Traders in approximately 2009, and provided the documents from that transaction.
It is not uncommon for persons engaged in telemarketing fraud to return to prior victims-a technique referred to as "reloading"--with assurances that they want to redeem themselves by making it up to the victim with a second deal often more lucrative than the first. This scam prays on the desire to make up for lost investment and the chance to recoup lost funds is often too seductive to resist.
Another victim contacted the Whitefish police-as well as the Secret Service in New York-to report that he paid MMR $95,000 on the basis of representations made by a man who called himself "Tony Giordano," to buy scrap metal that he never received. The second victim, A.B., made two attempts to verify the legitimacy of MMR, including one with a person, A.W., whose name was referenced in a sales agreement to which MMR was a party. A.B. received a response to his email to A.W. indicating MMR was a reputable company, but when he actually spoke with A.W., he learned that A.W. did not send the email and had never heard of MMR.
The Secret Service in New York initiated an investigation into MMR, during which they discovered MMR did not have a facility or office at the address in Whitefish listed on the incorporation documents. They traced some of the money that paid to MMR to the purchase of a $37,510 engagement ring by Intrieri on February 10, 2012, from Jay Roberts Jewelers in Marlton, New Jersey. Intrieri paid for the ring with a cashier's check from RBS Citizens Bank. The owner of the jewelry store was interviewed and confirmed that a man who provided the name Steve Intrieri bought a 3-carat diamond engagement ring. Intrieri told the jeweler that he lived in Bayonne, NJ, and his parents lived in Mount Laurel, NJ.
The second victim was Facebook friends with Intrieri and told one of the investigating agents that Intrieri proposed to his girlfriend on February 11, 2012, and posted pictures of her wearing a large diamond ring. The second victim provided screen shots of the posts to the Secret Service and the owner of the jewelry store identified the ring that he sold Intrieri in the photo from the post on his fiancé's Facebook page. The owner also identified Intrieri from the RBS Citizen's Bank surveillance, which was captured at the same time he obtained the cashier's check to pay for the ring. The agents in New York eventually turned over their investigation to an agent in Montana, given that MMR was incorporated in Montana and allegedly had a business address in Whitefish.
RBS Citizens Bank froze MMR's account sometime around February 15, 2012. MMR's first statement for the Bank of America account covers the time period from February 15-29, 2012, which indicates it was opened the same time the RBS account was frozen. Intrieri wired more than $125,000 from the MMR Bank of America account into his personal Chase bank account, and nearly $10,000 was wired into his fiancé's account. Altogether, it appears that Intrieri received approximately $370,000 from the various victims of the MMR scheme. Approximately $49,000 was returned to the second victim with the RBS Citizens account was frozen.
Investigating agents found that Intrieri was affiliated with seven different businesses, at least four of which appeared to deal with scrap metal sales. Their searches revealed that Intrieri had been the subject of prior Secret Service investigations and had a criminal history. The agents also interviewed other victims of Intrieri's scheme, who provided information consistent with what was relayed by the victims who had contacted the Whitefish Police Department.
U.S. Attorney Mike Cotter reminded all Montanans to be wary of "cold calls" promising lucrative returns, particularly if you have been a prior victim of telemarketing fraud.
Unsolicited calls from people you do not know, making promises you want to believe, are most often completely fraudulent. These swindlers feed on people's dreams of an easier-more financially secure-future. With one phone call, they can steal those dreams by taking away all you've saved and everything you were saving for. And if you've been fooled before they will be back to take whatever they did not get the first time around." -- Mike Cotter, U.S. Attorney for Montana.
Charles Patton Sentenced to over 10 Years in Prison for Distributing Methamphetamine in Great FallsRead the Press Release
The United States Attorney's Office announced that on April 25, 2014, before U.S. District Judge Brian M. Morris, , CHARLES FERRILL PATTON, 50, of Great Falls, was sentenced to a term of 125 months' imprisonment to be followed by five years of supervised release after his January 22, 2014, guilty plea to possession with intent to distribute methamphetamine. Assistant U.S. Attorney Jessica Betley told the Court that on April 23, 2013, the Russell Country Drug Task Force found Patton in possession of $3377 in cash and 106 grams of actual methamphetamine in his pockets. Agents arrested Patton but he bonded out of jail within a matter of a few days. On May 7, 2013, Patton then attempted to flee the jurisdiction when he attempted to board a flight leaving Missoula International Airport using a dead man's driver's license. TSA authorities stopped Patton but did not detain him. On May 8, 2013, Great Falls law enforcement found the defendant getting out of his car near his home in Great Falls. Law enforcement searched Patton's car and found methamphetamine, a digital scale, a syringe, and a methamphetamine pipe. The DEA lab analyzed the methamphetamine and found one baggie contained 6.2 grams of actual methamphetamine. A gallon size zip lock bag contained 385.2 grams of actual methamphetamine - almost a pound of pure methamphetamine.
The term "actual" methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
This investigation was conducted by the Russell Country Drug Task Force.
Charles Patton Sentenced to over 10 Years in Prison for Distributing Methamphetamine in Great FallsRead the Press Release
The United States Attorney's Office announced that on April 25, 2014, before U.S. District Judge Brian M. Morris, , CHARLES FERRILL PATTON, 50, of Great Falls, was sentenced to a term of 125 months' imprisonment to be followed by five years of supervised release after his January 22, 2014, guilty plea to possession with intent to distribute methamphetamine. Assistant U.S. Attorney Jessica Betley told the Court that on April 23, 2013, the Russell Country Drug Task Force found Patton in possession of $3377 in cash and 106 grams of actual methamphetamine in his pockets. Agents arrested Patton but he bonded out of jail within a matter of a few days. On May 7, 2013, Patton then attempted to flee the jurisdiction when he attempted to board a flight leaving Missoula International Airport using a dead man's driver's license. TSA authorities stopped Patton but did not detain him. On May 8, 2013, Great Falls law enforcement found the defendant getting out of his car near his home in Great Falls. Law enforcement searched Patton's car and found methamphetamine, a digital scale, a syringe, and a methamphetamine pipe. The DEA lab analyzed the methamphetamine and found one baggie contained 6.2 grams of actual methamphetamine. A gallon size zip lock bag contained 385.2 grams of actual methamphetamine - almost a pound of pure methamphetamine.
The term "actual" methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
This investigation was conducted by the Russell Country Drug Task Force.
Brandon Glover Sentenced to over 6 Years in Prison for Distributing Methamphetamine in HavreRead the Press Release
The United States Attorney's Office announced that on April 24, 2014, in Great Falls, BRANDON WAYNE GLOVER, 31, of Havre, was sentenced to a term of 80 months' imprisonment to be followed by five years of supervised release by U.S. District Judge Brian M. Morris. Glover was sentenced following his January 9, 2014, guilty plea to possession with intent to distribute methamphetamine.
Assistant U.S. Attorney Jessica Betley told the Court that Havre law enforcement began the investigation into Brandon Glover's suspected drug activities in early 2010, when a witness told the officers that she had purchased ten grams of methamphetamine directly from the defendant. In February 2011, agents made undercover drug purchases from Glover. The investigation established that Glover often traveled to Billings to pick up methamphetamine. On one occasion, an informant observed Glover with approximately 100 baggies, each of which contained one gram of methamphetamine, packaged for sale.
Numerous witnesses told law enforcement they regularly purchased a half gram to a gram of methamphetamine from Glover and other witnesses would have testified that Glover recruited them to sell methamphetamine for him. From the year 2010, until at least October 2011, Glover possessed with the intent to distribute, at a minimum, over 50 grams of a substance containing a detectable amount of methamphetamine.
This investigation was conducted by the Havre Police Department and the Tri-Agency Task Force.
Tiffany G. Bremner Sentenced for Theft of Government FundsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls on April 24, 2014, before U.S. District Judge Brian M. Morris, TIFFANY G. BREMNER was sentenced to a term of:
Prison: 15 months
Supervised Release: 3 years
Bremner, of Browning, Montana, was sentenced in connection with her guilty plea to Theft of Government Funds. The Court also ordered that she pay restitution in the amount of $58,702.00.
In an Offer of Proof filed by Assistant U.S. Attorney Zeno B. Baucus, the government stated it would have proved at trial the following:
Bremner, age 31, applied for United States Department of Agriculture and Department of Health and Human Services benefits from approximately February 2002 through June 2009.
During that period, Bremner was required to represent the accurate composition of her
Despite not maintaining custody of her son during the majority of this period, Bremner misrepresented that she had physical custody of them. The appropriate agencies relied on these misrepresentations in determining the eligibility and amounts of her benefits. As a result of her misrepresentations, Bremner obtained approximately $58,700.00 in benefits.
Because there is no parole in the federal system, the (truth in sentencing( guidelines mandate that Bremner will likely serve all of the time imposed by the court. In the federal system, Bremner does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted primarily by the Office of Inspector General for the United States Department of Agriculture.
St. Ignatius Rancher Pleads Guilty to Damaging Wetland on Flathead Reservation Brent PowellRead the Press Release
The United States Attorney's Office announced that St. Ignatius area rancher, Brent Powell, 54, pled guilty today in federal court in Missoula to violating the federal Clean Water Act by damaging a wetland on the Flathead Indian Reservation. Powell faces a possible 1 year in prison and a $25,000 per day fine.
In an Offer of Proof, the prosecutor told the Court that Powell operates B.P. Cattle Company on property that includes a wetland complex bordering Sabine Creek and Mission Creek in Lake County, Montana, which are waters of the United States. These wetlands also lie within the Flathead Indian Reservation.
Through investigative interviews and a check of tribal records, the Environmental Protection Agency Criminal Investigation Division (EPA-CID) established that in 2004, Powell failed to submit a Tribal Application for the Alteration of Aquatic Land or Wetland on the Flathead reservation, known as an 87A (ALCO), before he performed work in wetlands along Pistol Creek. As a result of the 2004 Clean Water Act 404 violations, the United States Army Corps of Engineers issued Powell a cease and desist order for the activities on Pistol Creek and Powell was required to remediate the area.
Undeterred, in 2010, Powell again dredged several channels on his property in an effort to drain the wetlands and extend his agricultural land along the Sabine and Mission Creeks. The dredged material was cast off beside the channels and remained within the wetland area. As a result of the work, heavy sediment was observed in the manmade channels, and cloudy water was observed flowing into Sabine Creek from manmade channels.
EPA-CID conducted interviews and reviewed documents that show Powell again failed to submit a Tribal Application for the Alteration of Aquatic Land or Wetland on the Flathead reservation, before he performed work along Sabine Creek.
In March 2010, the United States Army Corp of Engineers, EPA-CID, and Flathead tribal environmental specialists participated in an on-site inspection of the disturbed wetland area; they described the disturbance of wetland and riparian vegetation as very extensive. The disturbance of the wetland area includes approximately seven different areas in which soil was dredged from the wetland area and side-casted along the trenches into waters of the United States.
U.S. Attorney Mike Cotter lauded the work of EPA-CID, the Army Corps of Engineers and the environmental specialists of the Flathead Tribe, "The cooperative effort by federal and Tribal environmental enforcement agencies in this case resulted in a criminal violation of environmental laws being successfully prosecuted. This kind of prosecution sends the strong message that we will aggressively protect the waters and wetlands of Montana that all of us enjoy and upon which a healthy environment depends."
Kicking Woman Sentenced to High End of Guidelines for Residential BurglaryRead the Press Release
The United States Attorney's Office announced that KYLE KANE KICKING WOMAN, 26, of Browning, Montana, was sentenced to a term of 24 months imprisonment, three years supervised release, and a special assessment of $100 during a federal court hearing in Great Falls, Montana, on April 24, 2014, before U.S. District Judge Brian M. Morris.
KICKING WOMAN was sentenced in connection with his January 8, 2013, guilty plea to burglary. In an Offer of Proof, Assistant U.S. Attorney Ryan Weldon stated it would have proved that KICKING WOMAN and Michael Bad Old Man entered a residence in Browning, Montana. Occupants of the house were sleeping, and KICKING WOMAN and Michael Bad Old Man assaulted the occupants.
At sentencing, Weldon stated, "It is actions like this that destroy an individual's sense of safety and security. Residents on the Blackfeet Indian Reservation and in Montana deserve far better."
The District Court sentenced KICKING WOMAN to 24 months of imprisonment, with three years of supervised release to follow. For the same offense, Michael Bad Old Man was previously sentenced to 27 months imprisonment, with three years of supervised release to follow.
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that KICKING WOMAN will likely serve all of the time imposed by the court. In the federal system, KICKING WOMAN does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This case was investigated by the Federal Bureau of Investigation.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today 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 Strong on April 22, 2014 and entering pleas of Not Guilty were:
- DUSTIN JAY STEELE, a 31-year-old resident of Great Falls, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm during a drug crime, possession of a stolen firearm and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, STEELE faces life imprisonment, $5,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Great Falls Police Department and the Russell Country Drug Task Force. PACER Case Reference: 14-26
Appearing before U.S. Magistrate Lynch in Missoula on April 23, 2014 and entering pleas of Not Guilty were:
- LLOYD NICKLE, a 48-year-old resident of Minot, North Dakota appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of them most serious charges contained in the indictment, NICKLE faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 13-23
Appearing before U.S. Magistrate Lynch in Missoula on April 24, 2014 and entering pleas of Not Guilty were:
- BRIAN DAVID BAUER, a 26-year old resident of Missoula, appeared on charges of conspiracy to distribute a controlled substance. If convicted of the most serious charges contained in the indictment, BAUER faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Northwest Drug Task Force. PACER Case Reference: 14-23
- JULIA SHANI BENTON, a 30 year-old-resident of Bozeman, appeared on charges of conspiracy to distribute heroin, possession with intent to distribute heroin and distribution of heroin. If convicted of the most serious charges contained in the indictment, BENTON faces 40 years imprisonment, $5,000,000 in fines and 4 years supervised release. The was investigated by the Federal Bureau of Investigation and the Missouri River Drug Task Force. PACER Case Reference: 14-11
- FRANCIS BERCAW, a 63-year-old resident of Roanoke Rapids, North Carolina, appeared on charges of aiding or advising a false tax return. If convicted of the most serious charges contained in the indictment, BERCAW faces 3 years imprisonment, $250,000 in fines and 1 year supervised release. The case was investigated by the IRS - Criminal Investigation Division. PACER Case Reference: 14-07
- CHELLE CAUDLE, a 45-year-old resident of Gaston, North Carolina, appeared on charges of aiding or advising a false tax return. If convicted of the most serious charges contained in the indictment, CAUDLE faces 3 years imprisonment, $250,000 in fines and 1 year supervised release. The case was investigated by the IRS - Criminal Investigation Division. PACER Case Reference: 14-07
- MICHAEL HERBERT JOHNSON, a 26-year-old resident of Missoula, appeared on charges of conspiracy to distribute a controlled substance. If convicted of the most serious charges contained in the indictment, JOHNSON faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Northwest Drug Task Force. PACER Case Reference: 14-23
- AUSTIN DAVID LAWRENCE, a 21-year-old resident of Bozeman, appeared on charges of conspiracy to distribute heroin; possession with intent to distribute heroin and distribution of heroin. If convicted of the most serious charges contained in the indictment, LAWRENCE, faces 40 years imprisonment, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Missouri River Drug Task Force. PACER Case Reference: 14-12
- TELLY LOPEZ PAYNE, a 37-year-old resident of Bozeman, appeared on charges of conspiracy to distribute heroin, possession with intent to distribute heroin, conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, PAYNE faces life imprisonment, $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: 14-13
- BRANDT JONATHAN MILLER, a 29-year old resident of Missoula, appeared on charges of conspiracy to distribute a controlled substance. If convicted of the most serious charges contained in the indictment, MILLER faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Northwest Drug Task Force. PACER Case Reference: 14-23
The indictment is merely a formal charging document. 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.
Glasgow Man Sentenced to Prison for Child Pornography ChargesRead the Press Release
The United States Attorney's Office announced that RONALD HAROLD FIELDS, 53, of Glasgow and Sidney, was sentenced to a term of 160 months imprisonment, 10 years supervised release, and a special assessment of $100 during a federal court hearing in Great Falls, Montana, on April 24, 2014, before U.S. District Judge Brian M. Morris.
FIELDS was sentenced in connection with his January 9, 2014, guilty plea to receipt of child pornography. In an Offer of Proof, Assistant U.S. Attorney Cyndee Peterson stated that in July 2012, the Valley County Sheriff's Office was investigating Defendant Ronald Harold Fields for sex crimes committed against a minor. Fields' Acer Aspire One notebook computer and two Fuji Film SDHC cards were seized and forensically examined. Images of child pornography were located on the computer and SD cards. The images were created between October 1, 2010, and December 17, 2010. As part of the investigation, law enforcement also searched Fields' truck and seized a Casio digital camera. When the camera and its SD care were analyzed, the examiner located child pornography images and a video.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today 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 Strong in Great Falls on April 18, 2014 and entering pleas of Not Guilty were:
- LLIAM MICHAEL LANCASTER, a 31-year-old resident of Louisville, Kentucky, 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, LANCASTER faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Missouri River Drug Task Force. PACER Case Reference: 14-03
- SUS PIMENTAL-LOPEZ, 22, 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, PIMENTAL-LOPEZ faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 13-24
Appearing before U.S. Magistrate Ostby in Billings on April 21, 2014 and entering pleas of Not Guilty were:
- RRY DALE HILL, a 62-year-old resident of Billings, appeared on charges of being a felon in possession of firearms and ammunition. If convicted of the charge contained in the indictment, HILL faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-45
- DD JAMES NESIUS, a 33-year-old resident of Wheatland, Wyoming, appeared on charges of possession of stolen firearms. If convicted of the charge contained in the indictment, NESIUS faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-11
Appearing before U.S. Magistrate Ostby in Billings on April 22, 2014 and entering pleas of Not Guilty were:
- VID LEE BARNARD, JR. a 43-year-old resident of Billings appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, BARNARD faces life imprisonment, $10,000,000 in fines and 5 years imprisonment. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- VID LEE GOFFENA, a 46-year-old resident of Roundup, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, possession with intent to distribute methamphetamine, distribution of methamphetamine, conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, GOFFENA faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- RSTA ELAINE GOFFENA, a 38-year-old resident of Roundup, 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, GOFFENA faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- RARDO LOPEZ MARTINEZ, a 38-year-old resident of Los Angeles, California, 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, MARTINEZ faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- DY WILLIAM SIMPSON, a 25-year-old resident of Taft, California, 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, SIMPSON faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
- RIO ALBERT VILLEGAS, a 32-year-old resident of Los Angeles, California, 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, VILLEGAS faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, FBI Task Force, Eastern Montana HIDTA and Montana Division of Criminal Investigations. PACER Case Reference: 14-38
The indictment is merely a formal charging document. 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.
Bozeman Man Gets 10 Years for Child PornographyRead the Press Release
The United States Attorney's Office announced that on April 17, 2014, MATTHEW RYAN PETTIT, 30, of Bozeman, was sentenced to a term of 120 months' imprisonment and 20 years supervised release by U.S. District Judge Dana L. Christensen, in connection with his January 2014 guilty plea to possession of child pornography.
Assistant U.S. Attorney Cyndee Peterson told the Court in Missoula that that in April of 2012 a Federal Bureau of Investigation ("FBI") Special Agent determined there was an Internet Protocol address ("IP address") offering known child pornography files for download via the Internet. The agent successfully downloaded video files which depicted child pornography. The agent determined the location of the residence-the home of Matthew Pettit-associated with the IP address, and a search warrant was obtained.
On November 15, 2012, officers conducted a search of the Pettit's residence. Several items were seized including a laptop computer belonging to Pettit and a wireless router which he had installed. Forensic analysis of the seized laptop computer revealed that Pettit's laptop contained files depicting child pornography (a visual depiction of a minor engaged in sexually explicit conduct). Peer-to-peer file sharing clients, with whom images are exchanged, were also discovered on the laptop.
Washington Drug Trafficker Sentenced in Montana Federal CourtRead the Press Release
The United States Attorney's Office announced that SYLVIA MARTINEZ, aka SYLVIA LOPEZ, 31, of Kennewick, Washington, was sentenced to a term of 90 months imprisonment, four years supervised release, and a special assessment of $100 during a federal court hearing in Great Falls, Montana, on April 17, 2014, before U.S. District Judge Brian M. Morris.
MARTINEZ was sentenced in connection with her January 22, 2013, guilty plea to conspiracy to possess with the intent to distribute methamphetamine. In an Offer of Proof, Assistant U.S. Attorney Ryan Weldon stated it would have proved that MARTINEZ transported methamphetamine from Washington to Great Falls, Montana. On October 31, 2013, federal agents observed MARTINEZ and others parked at a local hotel. Agents conducted surveillance and watched several members of the conspiracy distribute methamphetamine. After obtaining a federal warrant, authorities searched a hotel and discovered 297.4 grams of pure
The District Court sentenced MARTINEZ to 90 months of imprisonment, with four years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that MARTINEZ will likely serve all of the time imposed by the court. In the federal system, MARTINEZ does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
This case was investigated by the Federal Bureau of Investigation, the United States Probation Office, and local law enforcement agencies.
Missoula Resident Amber Tyler Sentenced for Theft of Government MoneyRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on April 17, 2014, before U.S. District Judge Dana Christensen, AMBER TYLER, age 31, was sentenced to a term of five years' probation. She was also ordered to pay $23,103 in restitution to the Missoula Housing Authority.
In a sentencing memorandum filed by Assistant U.S. Attorney Chad Spraker, the government described Tyler's conduct as the following:
From April 2006 to January 2012, the defendant, Amber Tyler, repeatedly lied to the Missoula Housing Authority as to whether Kenneth Weber, the father of one of her children, was living with her. Due to Tyler's false statements, the Missoula Housing Authority paid over $23,000 in U.S. Department of Housing and Urban Development (HUD) section 8 housing benefits to which the defendant was not entitled.
Tyler entered the Section 8 program in April 2004. Kenneth Weber began living with her in Missoula in April 2006. Weber, on probation at the time, stated to his probation officer on April 4, 2006, that he was moving in with his girlfriend, Amber. The same day Tyler signed an annual recertification making no indication that Weber was living with her.
Weber's monthly probation reports from April 2006 to September 2011 list the same residence as the defendant's address. In each year from 2006 to 2011 Tyler signed certification forms omitting any mention of Weber's presence or his financial resources. The only exception is a February 2009 "Recertification for Move," where Tyler lists Weber as a source of income but lists him as having a different address. In March 2009, Tyler moved to her current address in Missoula. Weber's probation reports also reflect the move.
On July 28, 2011, Missoula Housing Authority Program Specialist John Ellison wrote Tyler a letter stating that the authority received information that Weber was living in her household. The letter instructed Tyler to add him to the household. It further stated that the authority would use his income to calculate Tyler's rent. Missoula Housing Authority case notes state than on August 4, 2011, "Tenant" replied that "Kenneth Weber does not live there. Visits his child and helps but has his own place."
On January 5, 2012, T.J. Hanes, an agent with Housing and Urban Development's Office of Inspector General and Weber's probation officer, Sandra Fairbank, interviewed Tyler and Weber at their residence. Tyler admitted that Weber had lived with her since 2006. Tyler stated that she did not list Weber as a household member because she believed he would not be allowed to live with her. Tyler also stated that she knew she was required to report all of Weber's income to the housing authority.
Missoula Man Sentenced to Prison for Possession of MethamphetamineRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on April 17, 2014, before U.S. District Judge Dana L. Christensen, VICTOR ANTHONY SCHWARTZ, of Missoula, was sentenced to a term of 120 months' imprisonment and 5 years supervised release.
Schwartz was sentenced in connection with his January 2014, guilty plea to possession with intent to distribute methamphetamine. In an Offer of Proof filed by Assistant U.S. Attorney Tara Elliott, the government stated that in September 2013, Agents from the DEA received information from Russell County Drug Task Force (RCDTF) Detectives regarding methamphetamine trafficking activities of the defendant. According to the Detectives, an RCDTF Confidential Source (CS) provided information that the CS had purchased
Schwartz and had been present with Schwartz during five meth transactions that had totaled approximately six ounces. Schwartz had informed the CS that he receives large quantities of meth from Mexico and always has it available for sale. Beginning around September 2013, the CS was in contact with Schwartz and negotiated a three ounce meth transaction with Schwartz via telephone calls and text messages.
On September 12, 2013, law enforcement executed a state search warrant on Schwartz's residence in Missoula, Montana. During a search of the residence, a plastic baggie containing more than 50 grams of actual methamphetamine was recovered.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Minnesota Woman Sentenced for BLM Mining Claim SchemeRead the Press Release
The United States Attorney's Office announced that on April 16, 2014, KIMBERLY ONUMA, of Minneapolis, Minnesota, was sentenced to a term of 18 months' probation by U.S. District Judge Donald W. Molloy, for repeatedly making false statements to the Bureau of Land Management (BLM) over a two year period.
Onuma was sentenced in connection with her January 2014, guilty plea to false writings or statements. Assistant U.S. Attorney Leif Johnson advised the court that Onuma acquired, located, and sold unpatented mining claims on federal land. The claims were recorded with the Bureau of Land Management (BLM) in Montana, Oregon, and California. The BLM acts as a repository of ownership information about mining claims on federal land (including lands managed by other agencies like the U.S. Forest Service).
Between 2008 and 2010, Onuma filed 39 unpatented mining claims on federal land in Montana. In order to maintain the exclusive right to mine on any particular unpatented mining claim, the filer must pay an annual maintenance fee of $140. The BLM will waive that fee for small miners who own fewer than 10 claims.
In August of 2010, Onuma filed seven separate Maintenance Fee Waiver Certifications with the BLM in the Montana State Office. Onuma signed the fee waiver requests as agent for various mining companies that held the 10 or fewer listed mining claims. Each such form contained a notice of potential liability under 18 U.S.C. § 1001 for the filing of false information.
Upon review of the fee waiver requests, BLM informed Onuma's various mining companies that the fee waiver is only available to small miners with fewer than 10 claims, and that related companies and persons are not eligible. BLM requested additional information, including powers of attorney and other documents, to establish that Onuma was legitimately acting as the agent for the unrelated owners of the 39 claims.
Onuma responded on behalf of the companies stating that, aside from owning one of the companies, she was acting as agent for all of the remaining companies holding the various mining claims. To support those assertions, Onuma filed Limited Powers of Attorney (LPOA) from the various mining companies. Each such document purported to contain the notarized signature of the owner of one of the mining companies together with an attached list of mining claims (10 or fewer) that the mining company owned.
During the review process, the BLM heard from one of the purported mining company owners, Judith Scrase, who stated that she did not own the mining company or the claims listed. Further, she stated that she did not sign the power of attorney, and it was forged in her name.
BLM rejected the fee waiver requests on the ground that Onuma owned more than 10 mining claims. In some of the cases, Onuma appealed and reiterated that she did not own more than 10 claims and that she was acting as an agent for various owners who signed powers of attorney allowing her to act as agent. BLM again rejected the fee waivers on the same ground and on the additional ground that all of the claims appeared to be controlled by Onuma because she submitted all of the paperwork, she appeared as "incorporator" on all of the corporate documents for the various "unrelated" companies, and she did not include any information on the various owners who signed the LPOAs.
At the conclusion of the appeal process for the foregoing claims, Onuma filed an additional 30 claims.
The Department of Interior's Office of Inspector General conducted an investigation and found that, consistent with BLM's suspicions, several of the "owners" who signed the powers of attorney for the fee waiver requests denied any involvement in, or ownership of, the companies listed with their names.
Similar fee waiver requests were filed for mining claims in California and Oregon. Many of the same names appear on the LPOAs.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today 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 Strong in Great Falls on April 17, 2014 and entering pleas of Not Guilty were:
- CHARLES PATRICK FREETLY, a 29-year-old resident of Missoula, appeared on charges of a felon in possession of firearms. If convicted of the charge contained in the indictment, FREETLY faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and Missoula Police Department. PACER Case Reference: 14-07
- JAMES HENRY HERNANDEZ, JR., a 47-year-old resident of Renton, Washington, appeared on charges of conspiracy and making and possessing a counterfeited security of an organization. If convicted of the most serious charges contained in the indictment, HERNANDEZ faces 25 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Secret Service and Homeland Security Investigations. PACER Case Reference: 14-02
- KELLY LORRAINE WATTS, a/k/a Kelly Lorraine Emge, a 46-year-old resident of Renton, Washington, appeared on charges of conspiracy to possess a counterfeited security of an organization. If convicted of the charge contained in the indictment, WATTS faces 5 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Secret Service and Homeland Security Investigations. PACER Case Reference: 14-01
The indictment is merely a formal charging document. 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.
Drug Violations Draw Prison Term for Billings WomanRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on April 16, 2014, before U.S. District Judge Donald W. Molloy, MARY ROSE DAY, 31, of Billings, was sentenced to a term of 60 months' imprisonment and 5 years supervised release.
Day was sentenced in connection with her January 2014, guilty plea to possession with intent to distribute methamphetamine. In an Offer of Proof filed by Assistant U.S. Attorney Lori Suek, the government stated that in 2009, Day was convicted of distribution of dangerous drugs in Hill County. Day was on state supervision when she came to the attention of the Billings drug task force through the state probation and parole office during the spring of 2012.
On April 4, 2012, the drug task force was contacted by State probation and parole for assistance. Probation and parole were looking for a parolee, because they had a warrant for her arrest. At the house, officers found Day as well as others. In the house were multiple items of drug distribution and drug use - mirrors with residue, new small baggies, a digital scale, and syringes. Parole officers looked at Day's cell phone and read text messages that referenced illegal drug activity.
Again, on April 23, 2012, state probation and parole found Day in possession of drugs and paraphernalia. Day was arrested on new state drug charges and probation violations. She bonded out at some point before May 11, 2012.
On May 11, 2012, Deputy U.S. Marshals were assisting State probation and parole conduct a parole search of Day. Day was located at an apartment in Billings. The deputies were concerned that Day would try to escape out of a window of the apartment and, consequently, they positioned themselves around the apartment in the event that Day did attempt an escape. After the probation officers knocked on the door of the apartment and identified themselves, one of the deputies saw a female hand throw something out of the bathroom window into the window well. Day was the only female in the house. The plastic bag that Day threw out the window contained over 8 grams of actual methamphetamine (88% pure). Day also threw three pipes and a torch head out of the window with the methamphetamine. Also recovered were a scale, cash, and cell phones containing text messages referencing illegal drug activity.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Billings Woman Sentenced to Prison for Drug ViolationsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on April 16, 2014, before U.S. District Judge Donald W. Molloy, KIMBERLY ANN DAHL, 33, of Billings, was sentenced to a term of 66 months' imprisonment and 5 years supervised release.
Dahl was sentenced in connection with her January 2014, guilty plea to possession with intent to distribute methamphetamine. In an Offer of Proof filed by Assistant U.S. Attorney Lori Suek, the government stated that on August 20, 2013, agents with the Billings drug task force were contacted by Montana State probation and parole regarding the defendant. Probation officers were at the defendant's home when, during a probation search, they located 24 individually packaged bags of methamphetamine (660.7 grams of actual meth) under the defendant's bed in her bedroom. The defendant was arrested on a probation violation.
On August 21, 2013, agents with the Billings drug task force went to the jail to interview the defendant. She provided a statement about how she acquired the methamphetamine under
She identified and explained how she met the individual that arranged for the methamphetamine, found under her bed, to be driven from California to Billings for resale. The defendant stored the methamphetamine under her bed - she agreed to do so until it was sold. The defendant would provide an ounce of methamphetamine at a time to the seller. In addition, on a couple of occasions, the defendant found customers for the methamphetamine and arranged the sales.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Tye Albright Sentenced to Prison for Drug ChargesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings on March 27, 2014 before U.S. District Judge Susan Watters, TYE DUSTIN ALBRIGHT was sentenced to 180 months imprisonment and 5 years supervised release.
The sentence is in connection with Albright's November 2013 guilty plea to conspiracy to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Suek, the government stated that on November 4, 2011, the drug task force in Billings conducted a controlled buy of methamphetamine with a confidential informant. That buy led to the identification of the source of the methamphetamine.
On November 8, 2011 and December 30, 2011, the task force in Billings bought 2 ounces of meth from the identified source. On January 2, 2012, the source was interviewed and his house was searched. He admitted selling meth for the last year. He admitted that his source is in Denver and he obtained 20-30 pounds of methamphetamine that he sold in Billings. Law enforcement seized over 5 pounds of methamphetamine from the source's house. The source's girlfriend and confidential information corroborate the source's statements.
On October 2, 2012, a controlled purchase of methamphetamine was made from an individual that drove to the defendant's home during the deal to obtain the methamphetamine purchased. Drug task force officers surveilled the transaction.
On October 9, 2012, a search warrant was executed at the defendant's house. Task force officers seized seven grams of pure methamphetamine as well as cash and drug paraphernalia.
After the source was charged with federal drug crimes and pleaded guilty, the source was interviewed and identified one of his main Billings customers as the defendant, Tye Albright. The source estimated that he supplied Albright with 30 pounds of methamphetamine up to the time of the source's arrest, in January 2012.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Todd Franklin Sentenced to Prison for Drug ChargesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on March 26, 2014 before U.S. District Judge Donald Molloy, TODD SEAN FRANKLIN was sentenced to 121 months imprisonment and 5 years supervised release.
The sentence is in connection with Franklin's December 2013 guilty plea to conspiracy to distribute methamphetamine. In an Offer of Proof filed by Assistant U.S. Attorney Tara Elliott, the government stated that between May of 2007 and May of 2011, investigators of Lincoln County and the Northwest Drug Task Force (NWDTF), in an undercover capacity, made several purchases of both methamphetamine and marijuana from the defendant, Todd Sean Franklin.
During the week of January 5, 2013, Detectives were contacted by a confidential informant (CI). The CI advised detectives that Franklin told the CI that Franklin was selling methamphetamine and that he was obtaining the methamphetamine from an individual in the Sandpoint, Idaho area. On January 16, 2013, agents received the criminal history, vehicle registrations, and driver's license status checks for Franklin. The records check of Franklin's driver's license status indicated that his privileges were suspended. A records check of vehicles registered to Franklin indicates that he owns a 1990 GMC truck, bearing Montana license plate 719793A, registered in Flathead County. On January 15, 2013, agents contacted Montana Probation and Parole. The Probation and Parole Officer confirmed that Franklin is currently on Probation with the Montana Department of Corrections for Felony Distribution of Dangerous Drugs and Felony Possession of Dangerous Drugs.
Detectives were again contacted by the CI the week of January 13, 2013. The CI told detectives Franklin told the CI that Franklin would be traveling to Sandpoint within the next few days in order to purchase more methamphetamine.
On January 17, 2013, agents received a Montana District Court Search Warrant to affix a tracking device to Franklin's 1990 GMC truck. On January 18, 2013, agents affixed a GPS tracking device to Franklin's truck.
On January 30, 2013, the GPS tracker indicated that Franklin's truck traveled through Libby, Montana and stopped in Sandpoint, Idaho.
On January 31, 2013, agents were able to determine that the GPS tracking device located on Franklin's truck traveled from Sandpoint, Idaho north to Highway 2 and eastbound through Libby, Montana en route to Kalispell, Montana. Agents observed Franklin operating his truck and arranged to have marked patrol units conduct a traffic stop on Franklin due to the fact his driving privileges are suspended by the state of Montana. Franklin, as part of his probation with Montana DOC, cannot travel out of state without the permission of his probation officer.
Franklin did not have permission to leave the State of Montana. Patrol units conducted a traffic stop on Franklin's truck. When Franklin was ordered to exit the vehicle, Franklin refused the officers commands and started driving eastbound toward Kalispell, Montana at a high rate of speed. Once officers were able to stop Franklin's truck he was arrested and detained at the Flathead County Detention Facility. Franklin's truck was secured and towed to the Flathead County SWAT barn and secured with evidence tape.
Agents applied for and received search warrants from a Montana District Court for Franklin's residence and vehicles. Pursuant to the search detectives located several plastic bags each containing a quantity of suspected methamphetamine from the bed portion of the truck. A lab report indicated that the pure methamphetamine weighed in excess of 50 grams.
Steven Munson Sentenced for EmbezzlementRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena on March 24, 2014 before U.S. District Judge Sam Haddon, STEVEN C. MUNSON was sentenced to 5 years' probation and $74,249.19 in restitution.
The sentence is in connection with Munson's November 213 guilty plea to embezzlement from an employee benefit plan. In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated that during the time period relevant to the charges in the Indictment, Munson was the sole owner of DDCS Express, Inc., a postal service provider based in Bozeman. DDCS operated mail routes pursuant to contracts with the U.S. Postal Service ("USPS"). DDCS sponsored an employee benefit plan - the DDCS Express, Inc. 401(k) Plan. The Plan was defined by ERISA as an employee benefit plan. DDCS was the Plan's administrator and sponsor and Munson was the Plan's trustee. The Plan allowed employees to make voluntary contributions through salary deductions. In addition, the Plan was to receive fringe benefit contributions from the USPS contracts, as each contract expressly required that DDCS make fringe benefit payments to each employee for all hours worked. The Plan was previously administered by Montana Pension Administration, Inc., and American Funds was the Plan's previous record-keeper, but both entities resigned in 2008 due to DDCS's deficient performance.
On July 16, 2010, the Employee Benefits Security Administration ("EBSA") received a complaint from a DDCS employee that Munson had not deposited the required amounts into the Plan and had not filed the required reports disclosing the financial conditions of the Plan. The EBSA opened an investigation and determined Munson did not make any deposits into the Plan from January 2007 through June 2010. He also failed to pay his employees all of the fringe benefits due and owing and eventually liquidated the 401(k) plan but did not return the remaining funds to his employees. The total amount of loss attributable to Munson's conduct is approximately $70,770.52, which is broken down as follows: $2,652.25 in unpaid contributions to the Plan, $46,219.28 in unpaid fringe benefits, and $21,898.99 in funds removed from the liquidated Plan account and not remitted to employees.
During the same period of time that he failed to fund and manage the Plan, Munson paid himself considerable sums of money. He wrote himself approximately $744,000 in company checks during the relevant time period.
Oregon Man Sentenced to Prison for Methamphetamine ChargesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on March 28, 2014 before U.S. District Judge Donald Molloy, SHANNON LEROY RAMSLAND, 34, of Aloha, Oregon was sentenced to 188 months imprisonment and 5 years supervised release.
The sentence is in connection with Ramsland's December 2013 guilty plea to possession with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government stated that on or about May 29, 2013, a Helena Police Detective was at the Town Pump gas station in East Helena, Montana when he observed a white Ford F350 truck in the parking lot. At the time, the detective was driving an unmarked vehicle. The detective observed who he believed to be Ramsland who had an active warrant for his arrest from Oregon. The detective called in the license plate number on the truck and confirmed that it was Ramsland.
The detective continued to watch Ramsland and the truck as it left the gas station and headed west on Highway 12 toward Helena. The detective called for backup because previous interaction with law enforcement indicated Ramsland carried a gun with him and was known to go to lengths to evade apprehension by authorities.
The detective followed Ramsland's truck while he was waiting for backup. At one point he lost sight of the truck, but reacquired it as he observed it turning on Rimini Road. Two other deputies arrived and then attempted to make a traffic stop. The truck then began heading westbound on Highway 12 at a high rate of speed reaching 80 MPH. Ramsland was swerving back and forth between the two lanes as he headed up MacDonald Pass. He then suddenly turned in to the scenic turnout, turned around, and headed back down the pass traveling eastbound. He again accelerated to speeds over 80 MPH. Deputies deployed a spike strip, but Ramsland drove into the opposite lane of traffic to avoid hitting the spike strip. As he approached the bottom of the pass, again near Rimini Road, numerous law enforcement vehicles were at this intersection. Ramsland almost caused a head on collision with a patrol car as he turned off Highway 12 and up Rimini Road. Rimini Road is a dirt/gravel road with a speed limit of 35 MPH. Ramsland accelerated to 80 MPH. As he reached the Minnehaha turnoff, he slowed slightly to attempt to make the turn, but he lost control of his truck and crashed into the bridge guardrail.
Deputies blocked the truck in and ordered Ramsland out of the truck. He complied as was taken into custody.
A search warrant was issued in the Montana First Judicial District Court to be executed on Ramsland's 2000 White Ford F-350 being driven by Ramsland. The following day, agents searched the truck. Inside the truck were several bags on the rear driver's side passenger seat. Inside one of these bags was a green Tupperware style container and another zippered pouch. Inside of the zippered pouch was a nearly full large sized zip-lock style bag of a crystallized substance. There was also a second zip-lock bag with a single piece of the crystallized substance. Furthermore, there was a silver and purple colored AWS brand digital scale (with crystallized residue). Inside the Tupperware container was a third zip-lock bag with a much smaller amount of the crystallized substance, an empty zip-lock bag, a glass pipe with residue (commonly used to smoke meth) and various packaged cold medicines.
Oregon Man Sentenced for Illegal Possession of FirearmsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena on March 24, 2014 before U.S. District Judge Sam Haddon, CHRISTOPHER ROBERT LAWRENCE was sentenced to 180 months imprisonment and 5 years supervised release.
The sentence is in connection with Lawrence's December 2013 guilty plea to being a felon in possession of firearms. In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated that On October 16, 2009, Christopher Robert Lawrence, a convicted felon who absconded from Oregon state supervision, possessed three firearms in Bozeman, Montana. Lawrence is believed to be an Armed Career Criminal due to prior, Oregon convictions for burglary and robbery.
On October 16, 2009, a hotel employee turned over a Derringer handgun to the Bozeman Police Chief and Deputy Chief, who were having lunch at the Grantree Hotel restaurant. The employee explained that the handgun was recovered from the business center after a male and female staying at the hotel left the business center in Bozeman, Montana. The employee provided the room number to officers. The officers went to the room. After knocking and announcing themselves, the officers heard voices and shuffling. One officer observed a man (Lawrence) exit the room through the window, run to a nearby vehicle, and drive quickly away.
Upon further investigation and search warrant execution, officers recovered two more handguns from the hotel room. The Ruger 9mm pistol was located in a night stand near with window that Lawrence walked out of. Officers also located a few partial boxes of 9mm ammunition. At the time, the female claimed ownership and possession of all three handguns.
The female later provided a statement in August of 2012 detailing her involvement with Lawrence and his possession of the three firearms and 9mm ammunition in this case. Lawrence lived with her during the summer of 2009. She knew he was a convicted felon who could not have firearm. Both of them were using heroin. Lawrence was obsessed with her two firearms - the Smith and Wesson and the .38 caliber revolver. She purchased the Ruger 9mm for Lawrence. He took her to the convenience store, told her to fill out the form, and buy the gun. She did as she was told although they already had two guns. The female dropped the derringer in the hotel. The derringer was in her pocket because Lawrence wanted the firearm near him. When Lawrence saw the police, he stepped back into the hotel room, placed the firearm in the night stand, and stepped out of the window again. She originally placed all three of the firearms in the room safe. Lawrence did have the combination to the safe and had access to all of the firearms.
Lawrence also provided a statement in November 2012. Lawrence admitted his relationship with the female during the summer of 2009. He acknowledged that he was messed up on heroin during that time - he used heroin during the time of the road trip with her, and he used every day until he was caught by the police and sent to prison.
Lawrence further stated that when the police came into his Bozeman hotel room that he walked out the window and ran. He went to a nearby Lowe's store, called the female, and asked her to pick him up. He admitted to touching the ammunition, but would not answer the question if he purchased any of the ammunition. Lawrence denied touching or possessing any of the firearms.
Matilda Butts Sentenced for Misappropriation of Postal FundsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on March 26, 2014, before U.S. District Judge Donald Molloy, MATILDA BUTTS was sentenced to 2 years' probation with 3 months house arrest and $13,731.97 in restitution.
Butts was sentenced in connection with her December 2013 guilty plea to misappropriation of postal funds. In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, Butts began working for the Eureka Post Office as a mail clerk in December, 2008. During her career, she served as an Officer in Charge and Postmaster at several other offices as well. Pertinent to this case, Butts served as Postmaster for the Eureka Post Office from November 10, 2007, through July 23, 2010.
On September 10, 2010, the United States Postal Service Office of Inspector General ("USPS OIG") received notice of several financial irregularities regarding bulk-mail transactions that were never processed at the Eureka Post Office. Further investigation revealed that Butts failed to document certain permit mailing operations, ignored process controls, failed to enter bulk-mailing transactions into the required computer programs, and improperly stored money order and check payments in her desk.
Specifically, the USPS OIG discovered a Daily Financial Report from May 15, 2009, indicating that Butts failed to properly credit a money order, bulk-mailing payment in the amount of $534.58, which had been received from a local business that regularly paid for bulk mail using non-postal money orders. Butts used the money to buy $534.58 in stamp stock and postal supplies for herself.
When dealing with other money orders provided by the local business referenced in the preceding paragraph, Butts would either record them as being payments for stamps, which she would then take for herself, or record them as Eureka Post Office deposits, in which case she would steal the equivalent amount in cash from the Post Office. On other occasions, Butts would record personal checks or Postal Service money orders as deposits, again, stealing the equivalent amount in cash.
On November 15, 2012, agents from the USPS OIG conducted a non-custodial interview of Butts at her residence in Fortine, Montana. During the interview, Butts admitted to embezzling Postal Service funds and explained how and why she did it. She also informed the agents that she used some of the money to pay higher wages to a "casual" Postal Service employee ("casual" means a temporary postal employee who works at will, has no union rights, has no set position or usual duties, and receives no benefits other than pay). Butts also executed a handwritten, sworn statement in which she discussed how much money she had embezzled from the Eureka Post Office. Butts stole approximately $13,731.97 in cash, stamps, postal products, and services between January 30, 2009 and July 19, 2010. The final analysis showed that Butts failed to properly record at least 28 bulk mailing transactions.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today 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 Strong in Great Falls on April 4, 2014 and entering pleas of Not Guilty were:
- MELINDA MONDRAGON-PATALEON, a 41-year-old resident of Las Vegas, Nevada, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and use of a communication facility to commit a drug felony. If convicted of the most serious charge contained in the indictment, MONDRAGON-PATALEON faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the United States Postal Service. PACER Case Reference: 13-71
Appearing before U.S. Magistrate Ostby in Billings on April 8, 2014 and entering pleas of Not Guilty were:
- KEVIN R. CRISWELL, a 31-year-old resident of Libby, appeared on charges of conspiracy to acquire a controlled substance by forgery, fraud, deception or subterfuge. If convicted of the most serious charge in the indictment, CRISWELL faces 4 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference: 14-36
- BRANDON JAYJOSEPH WHITE, a 24-year-old resident of Billings, appeared on charges of conspiracy to possess a controlled substance with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, WHITE faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The prosecution is part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota. The investigation was conducted by the Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco and Firearms and the Montana Division of Criminal Investigation. PACER Case Reference: 13-91
Appearing before U.S. Magistrate Strong in Great Falls on April 8, 2014 and entering pleas of Not Guilty were:
- DALE YURKOVIC, a 61-year-old resident from Las Vegas, Nevada, appeared on charges of wire fraud and money laundering. If convicted of the most serious charge contained in the indictment, YURKOVIC faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service. PACER Case Reference: 14-13
Appearing before U.S. Magistrate Strong in Great Falls on April 9, 2014 and entering pleas of Not Guilty were:
- SCOBEY BAKER, a 37 year-old-resident of Wolf Point, appeared on charges of aggravated sexual abuse and kidnaping. If convicted of the most serious charge in the indictment, BAKER faces life imprisonment, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Fort Peck Tribes Department of Law and Justice. PACER Case Reference: 14-27
- DAVID V. CHASER, a 39-year-old resident of Wolf Point, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the most serious charge in the indictment, CHASER faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-28
Appearing before U.S. Magistrate Lynch in Missoula on April 10, 2014 and entering pleas of Not Guilty were:
- DAVID ERIC JACOBS, a 34-year-old resident of Missoula, appeared on charges of felon in possession and counterfeiting/forgery. If convicted of the most serious charge contained in the indictment, JACOBS faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Secret Service and the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 13-17
Appearing before U.S. Magistrate Ostby in Billings on April 11, 2014 and entering pleas of Not Guilty were:
- EUGENIA ANN ROWLAND, a 41-year-old resident of Rapid City, South Dakota, appeared on charges of second degree murder. If convicted of the charge in the indictment, ROWLAND faces life imprisonment, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. PACER Case Reference: 14-27
Appearing before U.S. Magistrate Strong in Great Falls on April 14, 2014 and entering pleas of Not Guilty were:
- MARK JOHN WEATHERWAX, a 44-year-old resident of Browning, appeared on charges of aggravated sexual abuse, attempted aggravated sexual abuse and assault. If convicted of the most serious charges in the indictment, WEATHERWAX faces life imprisonment $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-03
Appearing before U.S. Magistrate Ostby in Billings on April 16, 2014 and entering pleas of Not Guilty were:
- DAVID ALLEN DARSOW, a 47-year-old resident of Billings, appeared on charges of unlawful possession of a machine gun. If convicted of the charge in the indictment, DARSOW faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-30
The indictment is merely a formal charging document. 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.
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Derek Rhinehart Sentenced to Prison for Drug ChargesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings on March 27, 2014 before U.S. District Judge Susan Watters, DEREK DEFOREST RHINEHART was sentenced to 60 months imprisonment and 5 years supervised release for possession of methamphetamine with intent to distribute.
The prosecution was part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota.
In an Offer of Proof filed by Assistant U.S. Attorney Joseph Thaggard, the government stated that between October 2012 and late March 2013, Tomas Alvarado and Eliseo Martinez conspired to distribute and did, in fact, distribute, large quantities of methamphetamine in Billings, Montana and other areas in Eastern Montana, including the Bakken oil fields. The distribution of methamphetamine pursuant to that conspiracy ended on or March 11-12, 2013,
Alvarado and Martinez were arrested on federal drug trafficking charges, although the conspiracy continued for a period of time.
Alvarado and Martinez used a number of subordinates to distribute the methamphetamine. The Defendant was one such subordinate.
Alvarado has stated he fronted multiple pounds of methamphetamine to the Defendant for distribution.
On August 26, 2013, the Defendant was arrested in connection with this indictment. Following his arrest, the Defendant was provided a Miranda warning and agreed to speak to members of an FBI Task Force regarding the crimes charged in the indictment.
The Defendant admitted that met Alvarado near the end of 2012 and was recruited to sell methamphetamine for Alvarado.
The Defendant stated that, over the period of time that preceded Alvarado's arrest in March 2013, he received approximately 16 ounces of methamphetamine from Alvarado. The Defendant stated the methamphetamine was "fronted" (provided on credit) to him and that he distributed methamphetamine in Billings and Colstrip, Montana from the amounts of the drug provided to him by Alvarado.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Billings Woman Gets Two Years for Role in Meth Conspiracy Karrie Marie StoltenbergRead the Press Release
The United States Attorney's Office announced that on April 3, 2014, before U.S. District Judge Susan P. Watters, Karrie Marie Stoltenberg, a 40 year-old resident of Billings, Montana, was sentenced to a term of 24 months imprisonment, three years supervised release, and a $100 special assessment. Stoltenberg was sentenced in connection with her guilty plea to conspiracy to possess with intent to distribute methamphetamine.
Assistant U.S. Attorney Brendan McCarthy, during the course of an investigation into the sales of methamphetamine by J.S. and H.R. in the Billings, Montana area, agents learned that J.S. had kept a safe containing methamphetamine at the Billings Heights residence of Karrie Marie Stoltenberg. Agents confirmed through multiple sources that Stoltenberg allowed J.S. to keep the safe at her house from October to November of 2012. Agents also confirmed that Stoltenberg knew that the safe contained methamphetamine. A cooperating witness admitted that she stole the safe from Stoltenberg's residence in November of 2012, and the safe contained less than a pound of methamphetamine.
Assault on A Federal Officer Draws Prison Time for Crow Agency ManRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings on March 27, 2014, before U.S. District Judge Susan Watters, CHARLES JOSEPH WALKS was sentenced to a term of 51 months imprisonment, 3 years of supervised release and $100 special assessment.
Walks was sentenced in connection with his December 2013 guilty plea to assault on a federal officer. In an Offer of Proof filed by Assistant U.S. Attorney Lori Suek, the government stated that on August 25, 2012, the defendant had been drinking alcohol and drove to a home in Lodge Grass to see an individual that had filed a complaint with the local police department against the defendant four days earlier.
When the defendant arrived at the residence, the defendant was told to leave and the police were called. The victim, a Bureau of Indian Affairs police officer, responded with lights and sirens activated. Almost immediately upon arriving at the scene, the victim was attacked by the defendant and, during the assault, the victim's knee was twisted under his body. The victim suffered a torn meniscus, a torn anterior cruciate ligament, and the victim had to undergo surgery to repair the damage. He was put on seven months of light duty.
On April 4, 2013, the defendant was interviewed. He admitted that something happened with the officer but that he could not provide any specific details because of his alcohol consumption and claimed that he blacked out and woke up in jail.
Devan Kelly Sentenced to 7 Years in Prison for Distribution of Methamphetamine in LewistownRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on March 31, 2014, before U.S. District Judge Brian M. Morris, DEVAN CLINTON KELLY, 27, of Brusett, Montana, was sentenced to a term of 84 months' imprisonment, five years of supervised release, and a special assessment of $100.
Kelly was sentenced in connection with his December 19, 2013, guilty plea to distribution of methamphetamine. In an Offer of Proof filed by Assistant U.S. Attorney Jessica Betley, the government stated it would have proved that beginning in January 2013, undercover agents began to buy methamphetamine from Devan Kelly. These sales progressed, and in April, agents inquired into whether Kelly would sell them a pound of methamphetamine. Kelly agreed to sell a pound of methamphetamine for $23,000.00. Kelly and the agents then agreed the sale would take place in Lewistown, Montana, on April 29, 2013. The sale took place, and Kelly gave undercover agents the pound of methamphetamine. This methamphetamine was tested and the laboratory concluded it was 99.5% pure and contained 439.0 grams of actual methamphetamine.
This investigation was conducted by the FBI Violent Crimes Task Force.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today 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 March 31, 2014 and entering pleas of Not Guilty were:
- MARQUIS DELAFEVETTE DAVIS, a 33 year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, DAVIS faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-33
- STEVEN DOUGLAS FOURSTAR, a 46-year-old resident of Shepard, appeared on charges of unlawful purchase of ephedrine base and pseudoephedrine. If convicted of the most serious charge contained in the indictment, FOURSTAR faces 1 year imprisonment and $1,000 in fines. The case was investigated by the Drug Enforcement Administration. PACER Case Reference: 14-25
- DANIEL JOSEPH HARPOLD, a 39-year-old resident of Billings, appeared on charges of possession of a firearm with an obliterated serial number and possession of a sawed-off firearm. If convicted of the most serious charge contained in the indictment, HARPOLD faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearm. PACER Case Reference: 14-31
Appearing before U.S. Magistrate Lynch in Missoula on April 1, 2014 and entering pleas of Not Guilty were:
- CHARLES DOUGLAS MYERS, a 29-year-old resident of Bozeman, appeared on charges of felon in possession of a firearm and possession of a stolen firearm. If convicted of the most serious charge in the indictment, MYERS faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-06
Appearing before U.S. Magistrate Strong in Great Falls on April 1, 2014 and entering please of Not Guilty were:
- TIMOTHY SEAN COLEMAN, a 43-year-old resident from Walla Walla, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, COLEMAN faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 13-103
Appearing before U.S. Magistrate Strong in Great Falls on April 2, 2014 and entering pleas of Not Guilty were:
- ELAINE FASTHORSE, a 30 year-old-resident of Poplar, appeared on charges of assault with a dangerous weapon and kidnaping. If convicted of the most serious charge in the indictment, FASTHORSE faces life imprisonment, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Fort Peck Tribes Department of Law and Justice. PACER Case Reference: 14-15
- JEANETTE PAYNE, a 27-year-old resident of Wolf Point, appeared on charges of distribution of methamphetamine, distribution of methamphetamine in the presence of a minor and felony child abuse and neglect. If convicted of the most serious charges in the indictment, PAYNE faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-20
Appearing before U.S. Magistrate Ostby in Billings on April 2, 2014 and entering pleas of Not Guilty were:
- SHAWN ALLEN CASSIDY, a 34-year-old transient, appeared on charges of incest and aggravated sexual abuse. If convicted of the most serious charge contained in the indictment, CASSIDY faces life imprisonment, $250,000 in fines and 5 years supervised
The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 12-93
- ERIC BLAINE SIMPSON, a 48-year-old resident of Billings, appeared on charges of felon in possession of firearms, possession of a firearm with obliterated serial number and possession of unregistered firearms. If convicted of the most serious charges contained in the indictment, SIMPSON faces 10 years imprison, $250,000 in fines and 3 years supervised release. PACER Case Reference: 14-31
- GARRETT SIDNEY WADDA, a 35-year-old transient, appeared on charges of first degree murder and aggravated sexual abuse. If convicted of the most serious charge contained in the indictment, WADDA faces life imprisonment, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-27
The indictment is merely a formal charging document. 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.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, 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.
Belcourt Pleads Guilty to Bribery and EmbezzlementRead the Press Release
The United States Attorney's Office announced that Tony James Belcourt, the former Chief Executive Officer of the Chippewa Cree Construction Corporation entered pleas today in four of the six indictments handed down by the Grand Jury charging him with wide-ranging public corruption. Belcourt is also a former member of the Chippewa Cree Tribal Business Council and a former member of the Montana State House of Representatives from Box Elder. Belcourt appeared before U.S. District Judge Brian Morris in Great Falls to enter the guilty pleas.
Belcourt pled guilty to embezzlement in one count of United States v. Belcourt, et al, CR-13-39-GF-BMM which alleged the embezzlement of over $300,000, in the first half of 2010, using a pipe shipping contract that more than doubled the actual cost of shipping. Additional details can be found in the government's extensive Offer of Proof filed with the Court with that case number and accessible through PACER.
Belcourt also pled guilty to bribery in United States v. Belcourt, et al, CR-13-82-GF-BMM which alleged that in November 2009 he accepted a $100,000 payment from Hunter Burns Construction, a company awarded a $1.7 million construction contract four months after the payment to Belcourt. Additional details can be found in the government's Offer of Proof filed with the Court with that cause number and accessible through PACER.
In a separate hearing earlier in the day before Judge Morris, Hunter Burns and Hunter Burns Construction, LLC, each pled guilty to conspiracy to file false claims in United States v. Belcourt, et al, CR-13-99-GF-BMM which alleged that four months later, in April 2010, Hunter Burns Construction made a $100,000 false claim to the Chippewa Cree Construction Corporation and against federal project funds based on mobilization costs that had not been incurred. Additional details can be found in the government's Offer of Proof filed with the Court with that case number and accessible through PACER.
Belcourt also pled guilty to bribery in United States v. Belcourt, et al, CR-13-98-GF-BMM which alleged that he accepted a $300,000 payment from K & N Consulting, a company doing business with the Chippewa Cree Tribe after the floods of 2010. Belcourt served as the Tribe's Emergency Incident Commander and awarded insurance and FEMA contracts in connection with the recovery and reconstruction efforts after the flooding. Additional details can be found in the government's Offer of Proof filed with the Court and accessible through PACER.
Belcourt also pled guilty to bribery in United States v. Belcourt, CR-14-17-GF-BMM which alleged that Belcourt committed tax fraud in the filing of his 2009 tax return which failed to disclose $135,000 in income received by Belcourt and his wife that year. The Offer of Proof for case number CR-13-82 contains the details.