District of Montana
Press releases recorded for this federal judicial district.
Joshua Emil Runion Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on May 1, 2013, in Helena, after a federal district court trial before Senior U.S. District Judge Charles C. Lovell, JOSHUA EMIL RUNION, a 41-year-old resident of Oregon, was found guilty of counterfeiting U.S. currency. Sentencing is set for September 12, 2013. He is currently detained.
Assistant U.S. Attorneys Bryan R. Whittaker and Zeno B. Baucus prosecuted the case for the United States.
RUNION faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the U.S. Secret Service.
Curtis Keith Tichenor Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on May 2, 2013, in Missoula, after a federal district court trial before Chief U.S. District Judge Dana L. Christensen, CURTIS KEITH TICHENOR, a 52-year-old resident of Helena, was found guilty of robbery, possessing and brandishing a firearm in furtherance of a crime of violence, and being a felon in possession of a firearm. Sentencing is set for August 7, 2013. He is currently detained.
At trial, the following evidence and testimony was presented to the jury.
On the morning of July 14, 2012, TICHENOR robbed the Silver Dollar Bar in Missoula. He entered the bar wearing a blue coat and a mask. He pointed a handgun at the bartender and demanded all of the money from the till. The bartender complied with TICHENOR's demand and gave him approximately $4,775.
TICHENOR left the bar and got into his blue Camaro, which was parked in an alley to the Southwest of the Silver Dollar. His girlfriend was a passenger in the car and TICHENOR told her he had just committed a robbery. He threw the gun, mask, and money into her lap. TICHENOR left Missoula by way of the Orange Street on-ramp and drove west toward Spokane on Interstate 90. Several miles outside of Missoula, he pulled over and hid the coat and mask under some bushes alongside the road.
After he hid the coat and mask, TICHENOR and his girlfriend traveled to Spokane, where they stayed for a few days. TICHENOR used money from the robbery to buy methamphetamine and heroin, which both he and his girlfriend used while they stayed at a hotel in Spokane. After spending a few days in Spokane, TICHENOR and his girlfriend returned to Helena, where both of them lived at that time.
When he got back to Helena, TICHENOR hid the remaining robbery proceeds at his brother's residence. After TICHENOR got arrested in Helena on July 23, 2012, he asked his brother to retrieve the money, give some to his girlfriend, and put some on his books at the Helena jail.
On July 23, 2012, TICHENOR and his girlfriend were arrested outside a hotel in Helena. TICHENOR was in possession of a firearm, which witnesses identified as the same gun used during the robbery of the Silver Dollar Bar nine days earlier.
In late October 2012, information on TICHENOR was provided information to law enforcement officers about the robbery in Missoula. Based on that information, the officers were able to find the coat and mask that TICHENOR had hidden after the robbery along I-90 west of Missoula. The bartender from the Silver Dollar Bar identified the coat and mask as the items worn by the perpetrator of the robbery. The bartender also identified the gun seized from TICHENOR following his arrest in Helena on July 23, 2012, as the gun used during the robbery. The firearm was a entury Arms, model P-64, 9 mm handgun.
Assistant U.S. Attorney Timothy J. Racicot prosecuted the case for the United States.
TICHENOR faces possible penalties of 20 years in prison, a $250,000 fine and 5 years supervised release on the robbery count; a mandatory minimum of 7 years to life in prison, a $250,000 fine, and 5 years supervision consecutive to other sentences on other counts for the possessing and brandishing a firearm in furtherance of a crime of violence count; and 10 years in prison, a $250,000 fine and 3 years supervised release on the felon in possession of a firearm count.
The investigation was a cooperative effort between the Missoula Police Department, the Helena Police Department, the Lewis & Clark County Sheriff's Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Tyler Levi Smith Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 2, 2013, before U.S. District Judge Richard F. Cebull, TYLER LEVI SMITH, a 31-year-old resident of Billings, appeared for sentencing. SMITH was sentenced to a term of:
Prison: 57 months
Special Assessment: $100
Supervised Release: 3 years
SMITH was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorneys Marcia K. Hurd and Mark S. Smith, the government stated it would have proved at trial the following:
In 2004, SMITH was convicted of felony drug offenses and as a result he was prohibited from possessing firearms.
On March 8, 2012, SMITH was found passed out in a car parked in a parking lot in Billings. The car was running and SMITH was passed out in the back seat with vomit on him with his head resting on a case of beer. On the front passenger floor board in plain view was a silver semi automatic pistol. Law enforcement was unable to rouse SMITH and had to use a tool to open the door. After they opened the door and woke SMITH, they found out that he was on probation and contacted his state probation officer. SMITH was arrested for DUI and found to have a BAC of .139. The pistol, a Bryco Arms model Jennings Nine 9mm, and two magazines and ammunition were seized. The gun belonged to SMITH's cousin.
The cousin had earlier text discussions with SMITH about SMITH purchasing the gun from him. The cousin had a party at his residence on the evening of March 7 and into the early morning hours of March 8 and SMITH was at the party. The cousin was showing the gun around and then put it in a drawer in his kitchen while SMITH was watching. The next day, the cousin found that the gun and the magazines were missing.
When questioned, SMITH claimed that he didn't know how the gun got in his car.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SMITH will likely serve all of the time imposed by the court. In the federal system, SMITH 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 by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jason Washington Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on May 1, 2013, before Chief U.S. District Judge Dana L. Christensen, JASON WASHINGTON, a 29-year-old resident of Missoula, was sentenced to a term of:
Prison: 24 months
Special Assessment: $200
Forfeiture: $232,890.58
Supervised Release: 4 years
WASHINGTON was sentenced after a federal district court trial in which he was found guilty of conspiracy to manufacture and distribute marijuana and possession with the intent to distribute marijuana.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case for the United States.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that he will likely serve all of the time imposed by the court. In the federal system, he 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 by the Missoula High Intensity Drug Trafficking Area (HIDTA) Task Force.
Yvonne Owens-Morris Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 30, 2013, before Chief U.S. District Judge Dana L. Christensen, YVONNE OWENS-MORRIS, a 48-year-old resident of Hungry Horse, pled guilty to theft of government money. Sentencing has been set for August 18, 2013. She is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Chad C. Spraker, the government stated it would have proved at trial the following:
On May 8, 2008, OWENS-MORRIS applied for Supplemental Security Income (SSI) benefits in Kalispell. During the application, OWENS-MORRIS was asked whether she had sold, transferred title, disposed of or given away any money or other property in the past three years. OWENS-MORRIS was also asked about any income she received or expected to receive beginning April 2008.
According to her application, OWENS-MORRIS received $300 a month from her sister from April 2008 to May 2008 and $300 a month on a continuing basis from her parents. Aside from food stamps, two vehicles valued together at $4,500, and a bank account containing $100, OWENS-MORRIS indicated that she had no other financial resources. OWENS-MORRIS declared under penalty of perjury that the information she provided was true.
SSA conducted eligibility reviews with OWENS-MORRIS on September 21, 2009; October 26, 2009; and December 8, 2009. On each occasion OWENS-MORRIS reported owning assets valued at less than $9,000 and monthly income of $600 or less.
OWENS-MORRIS in fact owned assets and received income that made her ineligible to receive SSI. A year prior to applying for SSI, on May 11, 2007, OWENS-MORRIS deeded to her sister a property in Kalispell known as the Dumas Walker Cowboy Bar. Her sister later signed a power of attorney permitting OWENS-MORRIS to make real estate transactions concerning the property, and on January 14, 2008, OWENS-MORRIS, acting under the power of attorney, sold the property for $200,000. From January 2008 to June 2008, her sister sent OWENS-MORRIS approximately $87,000.
On March 22, 2008, OWENS-MORRIS fell and suffered a back injury on her mother-in-law's property. OWENS-MORRIS settled with her mother-in-law's home owner's insurance. On July 22, 2008, she received a $101,000 check.
From July 2008 to June 2009, OWENS-MORRIS held a UBS investment account. In July 2008, the account held a total of $2,666.
On October 18, 2008, OWENS-MORRIS's mother died. On April 16, 2009, OWENS-MORRIS, as her mother's court appointed representative, deeded a property in Refugio, Texas from her mother to herself and her father. County tax records value the property at $47,170.
In total OWENS-MORRIS received $24,622.04 in SSI benefits to which she was not entitled. Under an agreement between SSA and the State of Montana, whenever an applicant qualifies for SSI, that applicant is also eligible to receive Medicaid benefits. From April 2008 and continuing into 2011, Montana Medicaid paid out in excess of $40,000 in benefits to OWENS-MORRIS's medical providers to which OWENS-MORRIS was not entitled.
OWENS-MORRIS faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Social Security Administration - Office of Inspector General.
Steven William Carpenter, Suzette Gulyas Gal, Andras Zoltan Gal, and Kristian Zoltan George Gal Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on May 1, 2013, in Great Falls, at a federal district court trial before U.S. District Judge Sam E. Haddon, the following individuals were charged with the following counts:
Count I: Conspiracy to Commit Fraud
Count II: Investment Fraud and Wire Fraud
Count III: Investment Fraud and Wire Fraud
After a 7-day jury trial, STEVEN WILLIAM CARPENTER, age 56, SUZETTE GULYAS GAL, age 55, and ANDRAS ZOLTAN GAL, age 22, residents of California, were found guilty of Counts 1, 2, and 3.
KRISTIAN ZOLTAN GEORGE GAL, age 29, a resident of California, was found guilty of Count I.
Sentencing is set for August 19, 2013. They are currently detained.
At trial, the following evidence and testimony was presented to the jury.
The above-named defendants worked together to solicit funds from the elderly, the infirm, and the gullible by persuading these individuals to invest in fraudulent and fictitious oil and gas investment opportunities on the Fort Peck Indian Reservation.
While the defendants initially obtained legitimate oil and gas leases on the Fort Peck Indian Reservation, those rights were terminated on October 5, 2007, for failure to make the required lease payments. Moreover, the defendants never made any legitimate payment to establish or further an oil or gas venture on the Fort Peck Indian Reservation.
Despite all of the above, the defendants bilked investors into paying well in excess of half a million dollars in a non-existent venture. The case involved over fifty victims, most of whom struggled to make ends meet even before losing money to the fraud. All while the victims suffered, the defendants enjoyed a life of luxury, took extravagant vacations, and basked in the fruits of their fraud.
Today's jury verdict, convicting Steven Carpenter, Suzette Gal, Andras Gal and Kristian Gal, together with the earlier guilty plea of the ring-leader, Mike Campa, represents a significant blow to the loose organization of professional telemarketers who prey every day on the country's elderly, desperate, and gullible. Too many of the operations go undetected and unhindered. The only way to stem the tide is for these predators to know --- without question --- that when they are caught the consequences will be significant. The United States Attorney's Office will continue every effort and enlist every resource to identify and prosecute those who enrich themselves by defrauding others. This investigation, which involved hundreds of man hours of undercover operations, surveillance, forensic document examination, and witness interviews, was a near perfect cooperative effort between the FBI and the Department of Interior's Office of Inspector General. Rarely do we see such seamless and effective coordination of agency efforts. I want to commend the excellent work done by our trial lawyers, AUSAs Carl Rostad and Ryan Weldon who tried the case on behalf of the United States, and investigators who conducted an extraordinary investigation."
Assistant U.S. Attorneys Carl E. Rostad and Ryan G. Weldon prosecuted the case for the United States.
They face possible penalties of 5 years in prison, a $250,000 fine and 3 years supervised release for the conspiracy to commit fraud charge, and 20 years in prison, a $250,000 fine and 3 years supervised release for each of the wire fraud and mail fraud charges.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the U.S. Department of Interior - Office of Inspector General.
Montana Hospitals Agree to Pay $3.95 Million to Resolve Allegedfalse Claims Act and Stark Law ViolationsRead the Press Release
Hospitals Allegedly Compensated Physicians for Improper Referrals
The U.S. Attorney's Office announced that St. Vincent Healthcare, a hospital located in Billings, Montana, and Holy Rosary Healthcare, a hospital located in Miles City, Montana, have agreed to pay $3,950,000 plus interest to resolve allegations that they violated the Stark Law and the False Claims Act by improperly providing incentive pay to physicians that made referrals to the hospitals, the Justice Department announced today. The Stark Law forbids a hospital from billing Medicare for certain services referred by physicians who have a financial relationship with the hospital unless that relationship falls within certain exceptions. A prohibited financial relationship includes a hospital's agreement to compensate a physician in a manner that takes into account the volume of the physician's referrals or the revenue realized through those referrals.
The settlement announced today resolves allegations that the hospitals paid several physicians incentive compensation that took into account the value or volume of their referrals by improperly including certain designated health services in the formula for calculating physician incentive compensation. These issues were disclosed by the hospitals to the government.
The resolution of this matter underscores our commitment to ensure that services reimbursable by federal health care programs are based on the best interests of patients rather than the personal financial interests of referring physicians," said Stuart F. Delery, Acting Assistant Attorney General for the Department's Civil Division.
Combating health care fraud is a top priority of the Department of Justice and the Montana U.S. Attorney's Office. St. Vincent Healthcare and Holy Rosary Healthcare allegedly put their financial interest ahead of their responsibility to provide cost effective health care. The United States recovered $3,950,000 of taxpayers' dollars from the hospitals. "The U.S. Attorney's Office is committed to enforcing the Stark Law and False Claims Act, as well as other health care laws and regulations against wrongdoers. This case also demonstrates how the Department of Justice will work with those health care providers who disclose their misconduct," said Michael W. Cotter, U.S. Attorney for the District of Montana.
There is an expectation that corporations providing services to Medicare and Medicaid beneficiaries adhere to the provision of the Stark Law. I applaud St. Vincent Healthcare and Holy Rosary Healthcare for recognizing their potential liability in this matter and making a disclosure," said Gerry Roy, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services region including Montana. "Working closely with our partners at the Department of Justice, we will vigilantly protect federal health care programs against violations of the Stark Law."
This resolution is part of the government's emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services, in May 2009. The partnership between the two departments has focused on efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.3 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department's total recoveries in False Claims Act cases since January 2009 are over $14.2 billion.
This case was handled by Assistant U.S. Attorney Jessica T. Fehr and Assistant U.S. Attorney Michael Shin with the U.S. Attorney's Office for the District of Montana, the Department of Justice's Civil Division, the Office of Inspector General of the U.S. Department of Health and Human Services, and the Federal Bureau of Investigation. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Mark James Denny Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 1, 2013, before Chief U.S. District Judge Richard F. Cebull, MARK JAMES DENNY, a 33-year-old resident of Hardin, appeared for sentencing. DENNY was sentenced to a term of:
Probation: 5 years
Special Assessment: $100
Restitution: $73,045.81
DENNY was sentenced in connection with his guilty plea to theft from an organization receiving federal funding.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Crow Tribal Historic Preservation Office (CTHPO) on the Crow Indian Reservation was created in 2005. The CTHPO is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
The Director of the CTHPO from approximately 2005 until November 15, 2011 is identified here as X.X. During the time X.X. was Director, most of the monitors were his family members. Two other monitors were not hired as Crow Tribe employees but were assigned as project monitors and received payment directly from the companies. DENNY was also an employee of the CTHPO.
Sometime in the summer of 2009, X.X. approached the Vice-Chairman of the Tribe and tried to get the process changed so that the companies could make direct payments to the monitors. When he was told he couldn't do that, he indicated he would take the matter up with the Chairman. The Chairman was never approached and did not provide any approval for X.X.'s request.
Even though his request was denied, X.X. began advising companies that payments would now be made directly to the tribal monitors assigned to the project. At first, in the summer of 2009, few direct payments were arranged. However, in the summer of 2010, the CTHPO staff person who insured that companies were properly billed and that CTHPO payments went to the Tribe left the office, and direct billing - having companies pay monitors personally instead of remitting the fee to the Crow Tribe - became much more prevalent.
From July 2009 to November 2011, a total of over $500,000 in monitoring service payments from the companies doing business on the Crow Reservation were diverted to the personal use and benefit of the employees of the CTHPO and the two non-employees assigned to projects as monitors. X.X. did not serve as a monitor in the field.
In the Summer of 2011 - from June to August - DENNY was assigned as a monitor to the Sarpy Creek project, which was the Westmoreland Resources expansion of the Absaloka Coal Mine in the Powder River Basin. DENNY's assignment was to monitor the progress of the project to insure that no culturally, archeologically, or historically important sites were disturbed.
A Westmoreland sub-contractor, GCM Services, went forward with an extensive excavation of the site with the approval of X.X., who as Director of the CTHPO had assigned several others and DENNY as project monitors. As a result of the approved site plan, a 2,000-year-old bison kill site was unearthed in 2011 with heavy equipment, causing significant, irreparable damage to the site. The largest bison bone bed was estimated to cover almost 3,000 square meters and contained the remains of hundreds, perhaps thousands, of butchered bison remains and prehistoric spear points dating back to the Late Archaic period.
When interviewed, DENNY admitted that he knew that he took direct payments while a tribal employee and that it was wrong to be paid by the Tribe and the companies for the same work. He admitted that the time sheets he submitted to the Tribe and the invoices he submitted to the companies were false and fraudulent because they were inflated and represented demands for payment for hours not worked. According to a GCM Services company representative, "the monitors often did not show up, and, if they did, they often only The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
Larkin Troy Chandler Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 1, 2013, before Chief U.S. District Judge Richard F. Cebull, LARKIN TROY CHANDLER, a 46-year-old resident of Crow Agency, appeared for sentencing. CHANDLER was sentenced to a term of:
Probation: 5 years
Special Assessment: $100
Restitution: $44,546.50
CHANDLER was sentenced in connection with his guilty plea to theft from an organization receiving federal funding.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Crow Tribal Historic Preservation Office (CTHPO) on the Crow Indian Reservation was created in 2005. The CTHPO is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
The Director of the CTHPO from approximately 2005 until November 15, 2011 is identified here as X.X. During the time X.X. was Director, most of the monitors were his family members. Two other monitors were not hired as Crow Tribe employees but were assigned as project monitors and received payment directly from the companies. CHANDLER was also an employee of the CTHPO.
Sometime in the summer of 2009, X.X. approached the Vice-Chairman of the Tribe and tried to get the process changed so that the companies could make direct payments to the monitors. When he was told he couldn't do that, he indicated he would take the matter up with the Chairman. The Chairman was never approached and did not provide any approval for X.X.'s request.
Even though his request was denied, X.X. began advising companies that payments would now be made directly to the tribal monitors assigned to the project. At first, in the summer of 2009, few direct payments were arranged. However, in the summer of 2010, the CTHPO staff person who insured that companies were properly billed and that CTHPO payments went to the Tribe left the office, and direct billing - having companies pay monitors personally instead of remitting the fee to the Crow Tribe - became much more prevalent.
From July 2009 to November 2011, a total of over $500,000 in monitoring service payments from the companies doing business on the Crow Reservation were diverted to the personal use and benefit of the employees of the CTHPO, including CHANDLER, and the two non-employees assigned to projects as monitors. X.X. did not serve as a monitor in the field. According to a GCM Services company representative, "the monitors often did not show up, and, if they did, they often only worked one to three hours."
When interviewed, CHANDLER confirmed that he had been a tribal employee being paid on a per hour basis for his services as a monitor. He also confirmed that he billed the companies directly, at the direction of X.X., for performing the services for which he was already being compensated by the Tribe.
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
John Paul Sigl Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 1, 2013, before Senior U.S. District Judge Jack D. Shanstrom, JOHN PAUL SIGL, age 50, pled guilty to threats against the President. Sentencing has been set for August 7, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
On April 24, 2012, the U.S. Secret Service in Billings received a telephone call from the Billings Police Department about a threat against the President of the United States Barack Obama. The Billings Police Department reported that on April 19, 2012, the 911 call center received a threat against President Obama. The caller's name, making the threat, was John Paul Sigl.
On the same date the threat was called into the 911 call center, SIGL was involuntarily committed to the psychiatric unit of the Billings Clinic and had to be restrained due to physical confrontation and threats of death to the clinic staff.
On April 24, 2012, a U.S. Secret Service agent interviewed SIGL. Of significance were the following statements made by SIGL during the interview: a) SIGL stated his second wife died in 2009. SIGL expressed that be believed that the medication she received for her illness had grave side effects and resulted in her death. SIGL believes that the doctors who treated his deceased wife killed her and he views this as the ultimate injustice and feels he no longer has anything to live for and is motivated by justice being served on those he views as responsible; b) During the same interview SIGL stated no less than 20 times that "the politicians and the President" are responsible for allowing the doctors to kill his wife and they must die. SIGL stated that he needed to be "locked up for a very long time" because if he were to be released he "promised" he would find a way to kill those previously mentioned. SIGL iterated several times he should be taken seriously; c) SIGL stated he was not afraid of the consequences in attempting his purposes. SIGL told the Secret Service Agent several times that he would rather die than continue to live with his perceived injustice and that he would end up dead, imprisoned, or succeeding in his desire to kill those previously stated; d) SIGL stated he no longer has anything to live for as a result of his wife's death in 2009.
SIGL stated later in the same interview, when asked about weapons he may have access to, that he "knows how the streets work," and can get anything he wants "to get the job done." SIGL also stated, "You better take me serious," and "I promise you, if I get out of here, I will find a way to kill the President." SIGL's intent was clearly to harm or kill President Barak Obama.
On April 27, 2012, SIGL was admitted into Warm Springs State Hospital, was again involuntarily committed and had to be restrained due to physical confrontation and threats of death to the hospital staff.
On May 4, 2012, SIGL was again interviewed by law enforcement. SIGL continued to state that if released he intended to kill the President of the United States and anyone else he blamed for his wife's death. SIGL said, "I'll kill them all, the President, the doctors, the politicians. I can't live life like this." SIGL responded to law enforcement by saying that he was serious about his threats of death.
Interviews with SIGL's mental health providers confirmed that he was unstable with violent tendencies. The Secret Service agent that heard SIGL's repeated threats believed SIGL's intention was to harm the President of the United States.
SIGL faces possible penalties of 5 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the U.S. Secret Service.
Frederick Paul Deputee, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 1, 2013, before Chief U.S. District Judge Richard F. Cebull, FREDERICK PAUL DEPUTEE, JR., a 25-year-old resident of Hardin and an enrolled member of the Crow Tribe, appeared for sentencing. DEPUTEE was sentenced to a term of:
Probation: 5 years
Special Assessment: $100
Restitution: $6,130
DEPUTEE was sentenced in connection with his guilty plea to theft from an Indian organization.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Crow Tribal Historic Preservation Office (CTHPO) on the Crow Indian Reservation was created in 2005. The CTHPO is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
The Director of the CTHPO from approximately 2005 until November 15, 2011 is identified here as X.X. During the time X.X. was Director, most of the monitors were his family members. Two other monitors, one of which was DEPUTEE, were not hired as Crow Tribe employees but were assigned as project monitors and received payment directly from the companies.
Sometime in the summer of 2009, X.X. approached the Vice-Chairman of the Tribe and tried to get the process changed so that the companies could make direct payments to the monitors. When he was told he couldn't do that, he indicated he would take the matter up with the Chairman. The Chairman was never approached and did not provide any approval for X.X.'s request.
Even though his request was denied, X.X. began advising companies that payments would now be made directly to the tribal monitors assigned to the project. At first, in the summer of 2009, few direct payments were arranged. However, in the summer of 2010, the CTHPO staff person who insured that companies were properly billed and that CTHPO payments went to the Tribe left the office, and direct billing - having companies pay monitors personally instead of remitting the fee to the Crow Tribe - became much more prevalent.
From July 2009 to November 2011, a total of over $500,000 in monitoring service payments from the companies doing business on the Crow Reservation were diverted to the personal use and benefit of the employees of the CTHPO and the two non-employees - one of which was DEPUTEE - assigned to projects as a monitor.
In the Summer of 2011 - from June to August - DEPUTEE was assigned as a monitor to the Sarpy Creek project, which was the Westmoreland Resources expansion of the Absaloka Coal Mine in the Powder River Basin. DEPUTEE's assignment was to monitor the progress of the project to insure that no culturally, archeologically, or historically important sites were disturbed.
A Westmoreland sub-contractor, GCM Services, went forward with an extensive excavation of the site with the approval of X.X., who, as Director of the CTHPO, had assigned DEPUTEE and others as project monitors. As a result of the approved site plan, a 2,000-year-old bison kill site was unearthed in 2011 with heavy equipment, causing significant, irreparable damage to the site. The largest bison bone bed was estimated to cover almost 3,000 square meters and contained the remains of hundreds, perhaps thousands, of butchered bison remains and prehistoric spear points dating back to the Late Archaic period.
When interviewed, DEPUTEE maintained that he was authorized by his aunt to work as a monitor on the site and denied knowing that the money paid by the companies were tribal fees which should have been deposited with the tribal government. His aunt had no supervisory role at the CTHPO. DEPUTEE was convinced - based on the assurances given to him by his aunt - that he could act, and was participating in the CTHPO activities, as an independent contractor role and also received payment directly from GCM. He admitted, however, that he did not work the hours for which he billed the company and acknowledged the wrongfulness of billing for hours not worked. According to a GCM Services company representative, "the monitors often did not show up, and, if they did, they often only worked one to three hours."
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DEPUTEE will likely serve all of the time imposed by the court. In the federal system, DEPUTEE 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 by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
Delbert Dean Spear Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 1, 2013, before Senior U.S. District Judge Jack D. Shanstrom, DELBERT DEAN SPEAR, a 25-year-old resident of Crow Agency and an enrolled member of the Northern Cheyenne Tribe, pled guilty to assault with a dangerous weapon. Sentencing has been set for August 7, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On October 6, 2012, law enforcement responded to the scene of a stabbing outside of Crow Agency, within the exterior boundaries of the Crow Indian Reservation. An adult male victim had been stabbed approximately seven times in the torso with a knife. The victim was life-flighted to Billings for medical care.
The victim reported that he and a group of people, including SPEAR, were drinking and driving together until the car ran out of gas. Everyone continued drinking until, at some point, the victim and SPEAR started arguing. Both got out of the car, and then SPEAR came at the victim with a knife as he stood beside the car. SPEAR stabbed him multiple times in the chest area until he stumbled and fell. SPEAR then stabbed him in the back area. After the stabbing, the victim walked to a house where he received help.
When questioned, SPEAR admitted that he stabbed the victim and, in a handwritten statement, wrote that he stabbed the victim seven times.
The victim suffered two stab wounds to the right lower chest that deflated his lung and hit his liver, four stab wounds to his right shoulder area, and one stab wound to his right triceps area.
SPEAR faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
David Russell Hargrove Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 1, 2013, before Senior U.S. District Judge Jack D. Shanstrom, DAVID RUSSELL HARGROVE, a 33-year-old resident of Livingston, pled guilty to possession of child pornography. Sentencing has been set for August 7, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
Between approximately 2010 and December 2011, in Livingston, HARGROVE possessed computer files containing images of child pornography.
After executing a search warrant at HARGROVE's residence, law enforcement analyzed his computer and located and identified child pornography images and videos. HARGROVE admitted to using the peer-to-peer file sharing program Limewire and searching for terms such as "father/daughter." He admitted to knowing some images were child pornography. The images involved prepubescent minors engaged in sadistic or masochistic conduct. During the analysis of HARGROVE's computer, law enforcement also located child pornography in a separate folder on the desktop.
HARGROVE faces possible penalties of 10 years in prison, a $250,000 fine and lifetime supervision.
The investigation was conducted by the Montana Internet Crimes Against Children (ICAC) Task Force.
James Matthew Tafelmeyer Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 30, 2013, before U.S. District Judge Richard F. Cebull, JAMES MATTHEW TAFELMEYER, a 32-year-old resident of Billings, appeared for sentencing. TAFELMEYER was sentenced to a term of:
Prison: 97 months
Special Assessment: $100
Supervised Release: 15 years
TAFELMEYER was sentenced in connection with his guilty plea to receipt of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
Law enforcement officers were investigating allegations of child pornography access by users utilizing the peer-to-peer file sharing network. One investigation involved a person in Billings who had child pornography available to share via a file sharing program. A search warrant was obtained for the residence and served on December 1, 2011.
TAFELMEYER was the occupant of the residence. When questioned, TAFELMEYER admitted that he used the peer-to-peer file sharing program Limewire to receive and possess hundreds of child pornography videos and images. He detailed the search terms he used to find child pornography on Limewire and how he had saved it to various computers and other equipment, and how he had been doing so since 2004.
Agents seized various computer equipment at TAFELMEYER's residence. Subsequent forensic examination revealed hundreds of images and movies of child pornography that TAFELMEYER had received via the Internet for years and continuing until the equipment was seized. TAFELMEYER possessed images and movies of children clearly prepubescent and children engaged in sadistic or masochistic abuse or other depictions of violence. TAFELMEYER possessed a total of over 2,000 images and 24 videos of child pornography on the equipment specified in the forfeiture count.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that TAFELMEYER will likely serve all of the time imposed by the court. In the federal system, TAFELMEYER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Billings Police Department, and the Internet Crimes Against Children (ICAC) Task Force.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Seth Patrick Durnam Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 25, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, SETH PATRICK DURNAM, a resident of Bozeman, pled guilty to possession of child pornography. Sentencing has been set for July 25, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
On November 8, 2010, DURNAM was at a residence in Bozeman for a job interview.
On Saturday, November 13, 2010, the homeowner found a 2GB SD card in his driveway. The homeowner called his father who had visited earlier in the day to inquire if the card was his. His father replied that it was not and suggested that he view the images on the card to identify the owner. He did so and found hundreds of images of child pornography, that he described as "naked, under-age boys." When scrolling through the images, the homeowner found a picture of DURNAM, whom he recognized from the earlier job interview. The homeowner contacted law enforcement and turned over the card.
When interviewed by a detective the next day, DURNAM admitted that he "did like images of younger boys" but claimed it was earlier in his life. When the SD card was examined, approximately 300 sexually explicit images and 5 movies of nude prepubescent and early teen boys were found on the card. The images had been copied to the SD card on April 21, 2010, by means of another device. There were also several pictures of DURNAM on the card.
DURNAM possessed images and movies of children clearly prepubescent and children engaged in sadistic or masochistic abuse or other depictions of violence.
DURNAM faces possible penalties of 10 years in prison, a $250,000 fine and lifetime supervision.
The investigation was conducted by the Gallatin County Sheriff's Office.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 25, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
WILLIAM FREDERICK SCHROEDER, a 31-year-old resident of Helena, appeared on charges of coercion and enticement and receipt of child pornography. He is currently detained. If convicted of these charges, SCHROEDER faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $250,000 fine, and lifetime supervision. Special Assistant U.S. Attorney Ole Olson is the prosecutor for the United States. The investigation was conducted by the Helena Police Department.
FELIPE JESUS PARRA-FLORES, a 46-year-old resident of Nampa, Idaho, appeared on charges of receipt of child pornography and possession of child pornography. He is currently released on special conditions. If convicted of these charges, PARRA-FLORES faces possible penalties of a mandatory minimum of 5 years in prison and could be sentenced to 20 years, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Cyndee L. Peterson is the prosecutor for the United States. The investigation was conducted by U.S. Department of Homeland Security - Homeland Security Investigations.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Tyrone Thaddeus Martinez Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 25, 2013, before U.S. District Judge Richard F. Cebull, TYRONE THADDEUS MARTINEZ, a 33-year-old resident of Billings, appeared for sentencing. MARTINEZ was sentenced to a term of:
Probation: 4 years
Special Assessment: $100
Restitution: $10,293
MARTINEZ was sentenced in connection with his guilty plea to wire fraud.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
MARTINEZ was employed by Hardrive Asphalt, in Billings from the end of April 2011 through August 22, 2011. MARTINEZ was fired on August 22, 2011. Each of the fleet vehicles for Hardrive is equipped with a Wright Express gas card. Each employee who is authorized to use a gas card is issued a 4-digit PIN that enables the use of the gas cards attached to each Hardrive vehicle. MARTINEZ, employed as a laborer, was not authorized a gas card or a pin.
During the summer of 2011, Hardrive had one truck that was inoperable and sat in the company's yard. This particular vehicle had two gas cards. One gas card was for bulk fuel and one card was a regular gas card. The yard was locked at night, but was open during operating hours and any employee would have had access to the vehicle and its contents.
Hardrive runs gas charge totals on a monthly basis. Prior to Hardrive running its September 2011 totals, Wright Express telephoned Hardrive to voice concern for unusual gas charges. It was determined that $10,293 in charges were fraudulently charged to Hardrive's account. The fraudulent charges were incurred over short durations of time during single day periods. The first two charges were in Billings on August 20, 2011, and August 21, 2011, the two day period prior to MARTINEZ being fired from Hardrive. In total over 160 fraudulent charges were incurred in various locations, for various amounts, including Billings; Big Timber; Gillette, Wyoming; Post Falls, Idaho; Spokane, Washington; and Seattle, Washington.
All of the fraudulent gas transactions used PIN 7524 that was assigned to Hardrive employee X.X. X.X. was working on a job site for Hardrive in Wyoming during the time the fraudulent charges were incurred. Questioning by Hardrive management uncovered that X.X. had previously provided MARTINEZ with his PIN when the two worked together prior to the fraud taking place.
Law enforcement was able to obtain numerous pieces of video footage from the gas stations where the card and PIN were used. Law enforcement was able to visually identify MARTINEZ in several of the videos. Law enforcement was also able to identify MARTINEZ's vehicle in several of the videos. Additionally, MARTINEZ used an Albertsons' gas station at one point to fill up his vehicle. Albertsons was able to confirm that MARTINEZ's Albertsons' savings card was used for the gasoline purchases made with the stolen card and the PIN.
Law enforcement interviewed MARTINEZ about the allegations from Hardrive. MARTINEZ admitted he took a gas card from one of the company vehicles. MARTINEZ stated that the PIN needed to use the card was common knowledge to most employees. MARTINEZ admitted to using the gas card in Montana, Idaho, Wyoming, and Washington. MARTINEZ said that he was sorry for his actions.
In total, MARTINEZ stole $10,293 in fuel from Hardrive Asphalt through his gas card scheme.
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 earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the U.S. Secret Service.
Martin Lee Roman Nose Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 25, 2013, before U.S. District Judge Richard F. Cebull, MARTIN LEE ROMAN NOSE, a 23-year-old resident of Ashland and an enrolled member of the Northern Cheyenne Tribe, pled guilty to sexual abuse of a minor. A sentencing date will be set at a later time. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On October 27, 2011, ROMAN NOSE and his girlfriend came across the 15-year-old victim and took her to their apartment. All three were drinking during the walk to the apartment and at the apartment. At some point, ROMAN NOSE and his girlfriend started to fight. ROMAN NOSE eventually locked her out of the apartment.
ROMAN NOSE and the victim were left alone in the apartment. ROMAN NOSE followed the victim into a bedroom, drank with her, and then sexually abused her.
ROMAN NOSE was interviewed twice. He initially denied sexually abusing the victim. However later he admitted that he did, but recanted again saying that he only made the admission because he believed it was what the agents wanted him to say.
ROMAN NOSE faces possible penalties of 15 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Elroy Jay Weaselbear, Sr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 25, 2013, before U.S. District Judge Richard F. Cebull, ELROY JAY WEASELBEAR, SR., a 39-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, appeared for sentencing. WEASELBEAR was sentenced to a term of:
Prison: 135 months
Special Assessment: $100
Supervised Release: 10 years
WEASELBEAR was sentenced in connection with his guilty plea to incest.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case for the government.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WEASELBEAR will likely serve all of the time imposed by the court. In the federal system, WEASELBEAR 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 by the Federal Bureau of Investigation.
C’erra Dawn Clark Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 25, 2013, before U.S. Magistrate Judge Keith Strong, C'ERRA DAWN CLARK, a 23-year-old resident of Poplar, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for July 26, 2013.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On March 18, 2012, CLARK became frustrated and shook her infant child, K.M.B. She then threw the infant on the bed. CLARK admitted to law enforcement that she had shaken the baby. Another individual witnessed this, and recalled seeing CLARK shake the baby enough to "really upset him." Shortly after CLARK shook her, the baby began having seizures.
The child was taken to the local hospital then transported out of state to a Colorado children's hospital, where she was diagnosed with retinal hemorrhages and underwent an operative procedure involving the placement of a bilateral subdural-peritoneal shunt. The child's diagnosis for fully-restored sight is "guarded," as described by medical personnel.
CLARK faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was cooperative effort between the Federal Bureau of Investigation and the Fort Peck Tribes Criminal Investigation Division.
Roy Alexander Briggs Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 23, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, ROY ALEXANDER BRIGGS, a 35-year-old resident of Helena, pled guilty to possession of child pornography. Sentencing has been set for July 30, 2013. He is currently detained.
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:
In July 2012, the United States Marshal Service (USMS) received information that BRIGGS, who had previously been convicted in 2005 for possession of child pornography in the Western District of Washington, had absconded and was currently residing in Helena.
On July 17, 2012, the USMS arrested BRIGGS for violating the terms of his supervision which included having direct contact with a computer device, possession of visual images of minors engaged in sexually explicit conduct, and changing his place of residence and employment without notifying his probation officer. Following his arrest, BRIGGS admitted that a computer found at the residence was his and that it contained visual depictions of children engaged in sexually explicit activity.
On July 18, 2012, members of the Internet Crimes Against Children Task Force (ICAC) were alerted that BRIGGS' computer may contain visual depictions of children engaged in sexually explicit activity.
The computer was forensically analyzed and found to contain multiple image files which depicted children engaged in sexually explicit conduct.
BRIGGS faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the United States Marshals Service and the Montana Internet Crimes Against Children (ICAC) Task Force.
Paul Daniel Bottomley Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 24, 2013, before U.S. Magistrate Judge Jeremiah Lynch, PAUL DANIEL BOTTOMLEY, a 48-year-old resident of Belgrade, Montana, pled guilty to Misprision of a Felony. Sentencing has been set for July 31, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In April of 2010, the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI) began to investigate a source of supply for unapproved oncology (cancer) drugs - Montana Health Care Solutions (MHCS). MHCS was owned by PAUL DANIEL BOTTOMLEY. The business was opened in 2008.
The investigation uncovered that BOTTOMLEY imported misbranded and unapproved cancer drugs from foreign countries and sold those drugs to American physicians - all of which violates the Food, Drug, and Cosmetics Act (FDCA) of the United States.
In October of 2010, BOTTOMLEY sold MHCS to Canada Drugs, Ltd. (hereinafter "Canada Drugs"), an Internet based pharmacy corporation located in Winnipeg, Manitoba, Canada. Canada Drugs is owned by Krisjtan Thorkelson. Rockley Ventures, Ltd. (hereinafter "Rockley Ventures"), a Canada Drugs subsidiary, was based in Barbados and was managed in large part by Tom Haughton. Rockley Ventures paid BOTTOMLEY $5 million for MCHS. Canada Drugs, Rockley Ventures, and the related companies retained BOTTOMLEY's company's name, domain name, any stock on hand, and his physician distribution list. While the companies continued to solicit and distribute to BOTTOMLEY's previous customers using his company's name and letter head, the companies significantly increased the number and type of drugs offered to the physicians.
BOTTOMLEY was also to remain as an advisor to Rockley Ventures, Canada Drugs and related companies following the sale of MHCS. BOTTOMLEY was paid $10,000 per month for his advisory services by the companies. In his advisor capacity, BOTTOMLEY occasionally made sales calls to physicians or office managers and dealt with shipment issues.
On January 13, 2012, FDA-OCI received information from the United Kingdom Medicines and Healthcare Products Regulatory Agency (MHRA), United Kingdom, regarding a potential counterfeit oncology drug known as Avastin(r) (marketed in Turkey as Altuzan). Avastin(r) is a prescription drug that requires a uniform cold temperature during shipment. Avastin(r) is a prescription drug that is typically intravenously infused into cancer patients. MHRA informed FDA-OCI that they had became aware of a United Kingdom wholesaler that purchased 167 packs of Avastin(r) 400 mg from a supplier in the European Union (EU). The United Kingdom wholesaler shipped 41 of the identified packs of Avastin(r) to Volunteer Distribution ("Volunteer"), a company located in Gainesboro, Tennessee. Volunteer Distribution had a pharmaceutical distribution contract with QSP, a subsidiary company of Canada Drugs. Volunteer Distribution received oncology drugs with the understanding that they would ship those drugs to clients once they were provided with a client and packing list. Normally, Volunteer Distribution would receive a quantity of oncology drugs from the United Kingdom which were stored until the client and packing list were received. The packing list would specify the names of clients, their mailing address and the drugs they were to receive. The packing list also included "Montana Healthcare Solutions" in the upper left-hand corner with a symbol associated with MHCS.
Initial preliminary analysis conducted by MHRA with the United Kingdom wholesaler indicated at minimum the potential existence of counterfeit labeling on the Avastin(r) in question. A subsequent lab analysis of the Avastin(r) determined the drug to be counterfeit - the substance seized and tested did not contain any of the active drug ingredient bevacizumab that is found in legitimate versions of Altuzan and Avastin(r). It was determined that Volunteer Distribution had already shipped 36 of the 41 packs of Avastin(r). The 5 remaining packs of the counterfeit Avastin(r) were shipped back to the United Kingdom wholesaler. The counterfeit Avastin(r) was shipped to Volunteer Distribution from a company identified as River East Supplies, Ltd. ("River East"), which is located in the United Kingdom.
Following a review of the Volunteer Distribution records FDA-OCI was able to identify customers that received oncology drugs from Volunteer - including the counterfeit Avastin(r). Numerous physicians or practice managers were interviewed by law enforcement about their purchases form MHCS. Most interviewed stated that their point of contact was PAUL BOTTOMLEY, who was a sales representative for MHCS. The physicians and practice managers interviewed confirmed that the drugs they received from Volunteer were sent pursuant to orders they placed with MHCS, and that payments for the shipments were made to MHCS for the drugs received from Volunteer.
Some physicians and practice managers admitted to law enforcement that they knew the drugs were foreign versions of United States approved products based on the price being charged as well as the packaging. For example, MHCS charged $1,700 per vial for Avastin(r), when the product would normally cost nearly $2,300 per vial. Some physicians admitted that although they knew the drugs were foreign, unapproved versions of U.S. prescription drugs, they still billed insurance programs the prices they would bill for U.S. prescription drugs.
At the time of the shipments of the counterfeit Avastin(r) into the United States, MHCS was owned and operated as a subsidiary of Canada Drugs and Rockley Ventures. Canada Drugs and Rockley Ventures were responsible for the shipment of misbranded, adulterated and counterfeit drugs into the United States, all in violation of the FDCA.
Although BOTTOMLEY had no involvement in the importation or distribution of the counterfeit Avastin(r), BOTTOMLEY did become aware of the distribution of the counterfeit Avastin(r) by January of 2012. By that date, BOTTOMLEY would have been aware and had concerns about the pedigree and purity of the drugs that were being imported and sold by Canada Drugs and Rockley Ventures. In particular, BOTTOMLEY was aware at that time that Canada Drugs and Rockley Ventures were importing and distributing misbranded and unapproved drugs in violation of federal law. BOTTOMLEY also failed to notify authorities of the fact that Canada Drugs and Rockley Ventures were importing and distributing
In a separate civil proceeding handled by AUSA Victoria Francis, BOTTOMLEY agreed to forfeit to the United States $1,088,378.17 in United States currency, a 2011 Aston Martin/Vantage V-12 and 10 parcels of real property in Gallatin County, Montana. The property was forfeited because the government established the property was the proceeds of the illegal activity outlined in the criminal case. The total forfeiture in the matter is valued at approximately $6 million.
The defendant's conduct in this case was motivated by greed. Bottomley utilized the grey market and sold potentially dangerous unapproved and misbranded pharmaceuticals at discounted prices to American physicians all for a healthy profit. Today's prosecution and the sizeable forfeiture taken in the related civil case demonstrates that the safety and health of the American public is paramount to the U.S. Attorney's Office," U.S. Attorney for the District of Montana Michael W. Cotter.
The defendant in this case violated the law by selling grey-market, unapproved pharmaceuticals, a dangerous practice that puts at risk the health and safety of the American consumer. FDA's Office of Criminal Investigations will continue to pursue those that threaten the safety and security of the public by engaging in the distribution of counterfeit and unapproved medicines. We commend the United States Attorney's office for their commitment to supporting this prosecution," John Roth, FDA-OCI Director.
BOTTOMLEY faces possible penalties of 3 years in prison, a $250,000 fine and 1 year supervised release.
The investigation was conducted by the Food and Drug Administration, Office of Criminal Investigations.
Michelle Steinfeldt Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 24, 2012, before U.S. District Judge Richard F. Cebull, MICHELLE STEINFELDT, a 34-year-old resident of Billings, appeared for sentencing. STEINFELDT was sentenced to a term of:
Prison: 37 months
Special Assessment: $100
Supervised Release: 5 years
STEINFELDT was sentenced in connection with her guilty plea to conspiracy to possess with the intent to distribute and distribution of methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
Beginning in approximately mid-2010, and continuing until late January 2012, STEINFELDT distributed methamphetamine she obtained from her source of supply to her customers in the Billings area. STEINFELDT distributed to at least ten individuals on a regular basis. STEINFELDT regularly communicated with her source of supply, other distributors and customers via cellular telephone and text message.
During the course of her involvement in the larger conspiracy, from mid-2010 to January 2012, STEINFELDT personally possessed with the intent to distribute and distributed over 50 grams of methamphetamine in the Billings area.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that STEINFELDT will likely serve all of the time imposed by the court. In the federal system, STEINFELDT 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 by the Billings Big Sky Safe Streets Task Force.
Mike Alfons Campa Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 22, 2013, before U.S. District Judge Sam E. Haddon, MIKE ALFONS CAMPA, a 54-year-old resident of Yorba Linda, California, pled guilty to conspiracy to commit fraud, wire fraud, and mail fraud. Sentencing has been set for August 5, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorneys Carl E. Rostad and Ryan G. Weldon, the government stated it would have proved at trial the following:
CAMPA started a company with his wife. The name of the company was Domestic Energy Solutions. CAMPA and his wife obtained leases from D.C. for oil and gas rights on the Fort Peck Indian Reservation. CAMPA and his wife never paid for the lease rights and never visited Montana or the Fort Peck Indian Reservation.
The oil and gas rights were terminated on October 5, 2007. Despite being terminated, CAMPA continued to solicit investors for money by claiming to have oil and gas rights on the Fort Peck Indian Reservation. This continued for approximately five years. It was never explained to any potential "investor" that the leases were terminated and CAMPA had no right to drill for oil or gas on the Fort Peck Indian Reservation. Nor was there ever an attempt to spend any money toward a legitimate oil and gas venture on the Fort Peck Indian Reservation.
CAMPA also used emails to solicit money from individuals. Had these individuals known that no money was spent on the Fort Peck Indian Reservation for the oil and gas venture and the oil and gas leases were terminated in 2007, they would not have "invested" with CAMPA. The individuals who invested either mailed or wired money to CAMPA. Many of these wires crossed state lines and went into the State of California. In total, CAMPA and his cohorts bilked "investors" into paying well in excess of half a million dollars in a non-existent venture.
CAMPA worked with another individual, S.C., and others to start U.S. Oil and Gas to solicit more money out of unsuspecting victims. Victims were told that they needed to pay additional money or their entire investment that began with Domestic Energy Solutions, or other companies, would be lost. Not only did CAMPA work with S.C., but he also shared money with him.
When arrested and in jail, CAMPA admitted that he knew the leases on the Fort Peck Indian Reservation were cancelled.
CAMPA faces possible penalties of 5 years in prison, a $250,000 fine and 3 years supervised release for the conspiracy to commit fraud charge, and 20 years in prison, a $250,000 fine and 3 years supervised release for each of the wire fraud and mail fraud charges.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the U.S. Department of Interior - Office of Inspector General.
Micah Garret Waltenbaugh Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 23, 2012, before Senior U.S. District Judge Jack D. Shanstrom, MICAH GARRET WALTENBAUGH, a 25-year-old resident of Billings, appeared for sentencing. WALTENBAUGH was sentenced to a term of:
Prison: 12 months and 1 day
Special Assessment: $100
Supervised Release: 5 years
WALTENBAUGH was sentenced in connection with his guilty plea to conspiracy to possess with intent to distribute and distribution of methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In July of 2011, Eastern Montana HIDTA agents developed a Confidential Informant (CI) who began purchasing methamphetamine from a former Sureno gang member in Billings. During the course of the investigation, law enforcement repeatedly heard the name Micah Waltenbaugh. Investigators learned WALTENBAUGH was a methamphetamine distributor to several individuals in the Billings area. Agents also learned that WALTENBAUGH's source of supply for his methamphetamine was moving large quantities of methamphetamine into the greater Yellowstone County area.
Later in the investigation law enforcement obtained recorded telephone calls and corroborating statements between the source of supply and one of his distributors that discussed WALTENBAUGH's distribution of methamphetamine. The same calls and evidence discussed WALTENBAUGH's drug debt owed to the source of supply for the methamphetamine they provided to him for distribution.
During the course of his involvement in the larger conspiracy, from August 2010 to September 2011, WALTENBAUGH personally distributed at least 2 pounds of methamphetamine in the Billings area.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WALTENBAUGH will likely serve all of the time imposed by the court. In the federal system, WALTENBAUGH 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 by the Billings Big Sky Safe Streets Task Force.
Louis Michael Healy Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on April 16, 2013, in Great Falls, after a federal district court trial before Chief U.S. District Judge Dana L. Christensen, LOUIS MICHAEL HEALY, a 40-year-old resident of Hays and an enrolled member of the Fort Belknap Tribes, was found guilty of assault resulting in serious bodily injury, aggravated sexual abuse, and abusive sexual contact. Sentencing is set for July 26, 2013. He is currently detained.
At trial, the following evidence and testimony was presented to the jury.
On October 13, 2012, the victim drove HEALY to the store where he bought several black cans of Smirnoff. After leaving the store, the victim drank a little from a can, and HEALY drank one can very quickly. They drove to a hill where HEALY drank two or three more cans of Smirnoff. The victim drank an additional can. HEALY then asked the victim to marry him. The victim replied that she would not marry HEALY unless he could prove he had ceased speaking with his ex-girlfriend.
HEALY and the victim returned to his home on the Fort Belknap Indian Reservation. They turned on HEALY's computer and the victim read e-mails that indicated HEALY was still speaking with his ex-girlfriend. The victim was sitting in a rolling computer chair. She became upset and HEALY grabbed her neck with his right hand and pushed her across the floor in the chair. Due to the force of the push, she crashed and hit her head. When she awoke, HEALY had his hand on her throat applying pressure. He then walked to the kitchen and grabbed a knife. HEALY stood over the victim, placed the knife to her throat, and told her to get up.
The victim began to cry, her throat hurt, and HEALY told her to get into the bedroom. He instructed her to lie down and said, "if you don't stop **** crying, you know what you're going to get and we both aren't coming out of the room, so stop **** crying." At that point, the victim believed HEALY was going to kill her. The victim continued to complain that her throat hurt so HEALY went to the kitchen where he returned with water and a popsicle. She then began to vomit due to the drinking or strangulation she had experienced. According to the victim, she spoke with HEALY for a little bit while sitting on the bed until HEALY grabbed her and sexually assaulted her while she continued to tell him to stop. HEALY then told the victim to get back on the computer and instructed her to tell his ex-girlfriend that the victim was going to leave her alone.
HEALY went to the bathroom after this instruction. The victim decided this was her chance to escape and she ran out of the house to the next door neighbor's home. HEALY realized the victim had run away and he chased after her, but she got inside the neighbor's home safely.
The neighbors testified that they had awoken at approximately 4:00 a.m. to someone pounding on the door. The victim was at the door very upset and trying to get inside. The victim was crying and saying her boyfriend was trying to kill her. He had held a knife to her throat and she said, "he's going to kill me."
When law enforcement arrived at HEALY's home, HEALY was walking and carrying two black bags. HEALY was ordered to stop and HEALY turned around and yelled, "**** you." The police ordered HEALY to the ground and pepper sprayed him in an effort to subdue him.
An ambulance arrived and transported the victim to the hospital where a nurse immediately assessed that the victim had trouble swallowing due to strangulation. The nurse noted the left side of the victim's throat had a few areas of linear petechial, which is bruising around the throat. She applied ice and the victim told the nurse she was sexually assaulted and strangled. The hospital also performed a sexual assault examination. The victim ended up returning to the hospital a few days later due to continued throat pain and inability to swallow.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case for the United States.
HEALY faces possible penalties of life imprisonment, a $250,000 fine and up to a lifetime of supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Jasper Wade Half Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 23, 2013, before Senior U.S. District Judge Jack D. Shanstrom, JASPER WADE HALF, a 37-year-old resident of Crow Agency and an enrolled member of the Crow Tribe of Indians, pled guilty to assault with a dangerous weapon. Sentencing has been set for July 24, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On May 20, 2011, HALF and the victim were drinking alcohol in Hardin. They left together and were on the off-ramp outside Hardin, when they began to argue. They pulled over and began to fist-fight. The victim beat up HALF. HALF got into his car and drove away across the interstate. He then turned around and returned to the exit. When HALF was on the on ramp, he stopped, pulled out a .22 caliber rifle from the trunk, and shot at the victim. HALF individually loaded the second round and fired again.
Shortly after HALF shot the gun, he was arrested by Big Horn County Sheriff's deputies. HALF initially stated that he had aimed the gun "in the air." Later, HALF reconsidered his previous statement and explained that he had pointed the gun at the victim and then up in the air.
A witness saw the incident and explained that, to her, it looked like HALF was pointing the gun at and shooting at the victim.
HALF faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Big Horn County Sheriff's Office and the Federal Bureau of Investigation.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 18, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individual was arraigned:
JOSHUA TYLER APLAND, a 21-year-old resident of Minot, North Dakota, appeared on charges of: Count I: conspiracy to possess with the intent to distribute methamphetamine, Counts II & III: possession with the intent to distribute methamphetamine and distribution of methamphetamine, Count IV: possession of a firearm in furtherance of a drug trafficking crime, and Count V: felon in possession of a firearm.
He is currently detained. If convicted of these charges, APLAND faces possible penalties of: Counts I, II & III: a mandatory minimum of 10 years in prison and could be sentenced to life and a $10,000,000 fine for each count; Count IV: a mandatory minimum of 5 years and could be sentenced to life and a $250,000 fine, to run consecutively to any other sentence; and Count V: 10 years and a $250,000 fine. Assistant U.S. Attorneys Joseph E. Thaggard and Zeno B. Baucus are the prosecutors for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Montana Division of Criminal Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 23, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
EDWARD HENRY PRATT, a 34-year-old resident of Browning, appeared on charges of assault with intent to commit murder, assault resulting in serious bodily injury, assault with a dangerous weapon, and being a felon-in-possession of a firearm. He is currently detained. If convicted of these charges, PRATT faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Laura B. Weiss is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Blackfeet Law Enforcement Services.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 18, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
LEVI ANTHONY LABUFF, JR., a 36-year-old resident of Browning, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of these charges, LABUFF faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and four years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 18, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
CARL CHESTER ALDEN, JR., a 23-year-old resident of Crow Agency, appeared on charges of involuntary manslaughter and (2) counts of assault resulting in serious bodily injury. He is currently released on special conditions. If convicted of these charges, ALDEN faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Taleah Colleen Ralston Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 18, 2013, before U.S. District Judge Richard F. Cebull, TALEAH COLLEEN RALSTON, a 28-year-old resident of Hardin/Billings, appeared for sentencing. RALSTON was sentenced to a term of:
Prison: time served
Special Assessment: $100
Supervised Release: 4 years
RALSTON was sentenced in connection with her guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
RALSTON came to the attention of law enforcement in Big Horn County and on the Crow and Northern Cheyenne Reservations as a distributor of methamphetamine for Leroy Smith beginning in approximately 2006.
When questioned, RALSTON admitted that she had been part of the conspiracy to possess with intent to distribute methamphetamine for Smith during the time when she was dating his son and co-defendant Justin Smith. RALSTON withdrew from the conspiracy a significant time prior to her arrest. Both Leroy Smith and Justin Smith also implicated RALSTON as one of Leroy Smith's distributors of methamphetamine for a period of time within the conspiracy.
Leroy Smith and Justin Smith pled guilty to federal charges.
The investigation was a cooperative effort between the Montana Division of Criminal Investigation, the Bureau of Indian Affairs, and the Drug Enforcement Administration.
Eric Dufresne Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 18, 2013, before Chief U.S. District Judge Dana L. Christensen, ERIC DUFRESNE, a 39-year-old resident of Stevensville, appeared for sentencing. DUFRESNE was sentenced to a term of:
Prison: 18 months
Special Assessment: $100
Forfeiture: Computers
Supervised Release: 15 years
DUFRESNE was sentenced in connection with his guilty plea to possession of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
As part of a Montana Internet Crimes Against Children Task Force investigation, the Missoula County Sheriff's Office determined an IP address was offering known child pornography files available for download via the Internet. A Missoula County Sheriff's Office detective determined DUFRESNE was the registered subscriber for the IP address. A search warrant for DUFRESNE's residence was obtained, and the residence was searched on March 27, 2012. Agents seized a laptop computer which they determined belonged to DUFRESNE.
During the search, DUFRESNE was interviewed. He admitted he used peer to peer software, FrostWire, on his laptop computer to download files which depicted videos and images of child pornography.
A certified forensic computer examiner analyzed DUFRESNE's laptop. The examiner located video and image files which depict children engaged in sexually explicit conduct. The files creation dates were between December 2011 and March 2012.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DUFRESNE will likely serve all of the time imposed by the court. In the federal system, DUFRESNE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Internet Crimes Against Children (ICAC) Task Force, the Missoula County Sheriff's Office, and the Montana Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Jeffrey James Milliron Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on April 16, 2013, before Senior U.S. District Judge Charles C. Lovell, JEFFREY JAMES MILLIRON appeared for sentencing. MILLIRON was sentenced to a term of:
Probation: 5 years, with 6 months GPS/house arrest
Special Assessment: $100
Restitution: $33,318
MILLIRON was sentenced in connection with his guilty plea to making false statements.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
In April 2010, the Social Security Administration ("SSA") received information from Lewis and Clark County's Office of Public Assistance that J.P., a long-time recipient of Supplemental Security Income ("SSI"), was married and working at a tattoo shop in Helena. Marital status, living arrangements, and employment are among the factors that SSA analyzes in order to determine eligibility for SSI benefits.
SSA opened an investigation and J.P. was interviewed on September 10, 2010, by a claims representative. The representative confronted J.P. about her marriage and her employment, both of which J.P. denied. After leaving the interview, she returned a short time later with a letter from MILLIRON that claimed J.P. was not married to MILLIRON, did not live with him, and did not work at his tattoo parlor.
In February 2011, MILLIRON's probation officer was interviewed and stated that he observed J.P. and MILLIRON living together every time he visited MILLIRON and that J.P. worked at the tattoo parlor. Another probation officer provided consistent information, and produced reports filled out by MILLIRON that indicated he was living with J.P. from January 2007 through at least January 2011.
On February 24, 2011, both MILLIRON and J.P. were interviewed. MILLIRON initially claimed that he was not married and stood by the letter he wrote in September 2010. However, when confronted with his marriage license, MILLIRON admitted that he was married, that he wrote the letter, and that he made a false statement to the SSA. He admitted that he knew that his marriage to J.P. would affect her SSI entitlement and that they concealed their marriage so she could continue to receive SSI payments. MILLIRON also admitted that J.P. worked at the tattoo parlor and earned anywhere from $100 to $800 per month.
The investigation was conducted by the Social Security Administration - Office of Inspector General.
Rudolph Lee Shane, Sr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 10, 2013, before U.S. District Judge Richard F. Cebull, RUDOLPH LEE SHANE, SR., a 64-year-old resident of Crow Agency, was sentenced to a term of:
Probation: 5 years, with 6 months house arrest
Special Assessment: $100
Fine: $5,000
SHANE was sentenced in connection with his guilty plea to tampering with a victim.
In an Offer of Proof filed by Assistant U.S. Attorneys Marcia Hurd and Lori Harper Suek, the government stated it would have proved at trial the following:
On February 23, 2012, the Federal Bureau of Investigation received a report alleging that SHANE had harassed a victim in a pending criminal case in federal court.
On February 21, 2012, SHANE had contacted the victim who described the meeting as intimidating and stated she was concerned for her safety. She believed he wanted her to "drop charges" or change her story. The victim did not initially know who he was and had no idea how SHANE knew how to find her.
On February 22, SHANE called the victim's cell phone twice and left a message. In addition, SHANE's daughter contacted the victim at the request of SHANE. SHANE had also called the victim's mother earlier in the case and asked her to talk to the victim about dropping the charges.
When interviewed, SHANE admitted the contact and indicated he did so because he believed that the victim would take pity on the defendant in the case and "do the right thing." When asked what he was thinking by contacting the victim, SHANE reported that he thought if the victim withdrew her complaint or changed her mind, it would help the defendant.
The investigation was conducted by a cooperative effort between the Federal Bureau of Investigation and Bureau of Indian Affairs.
Robert Dean Boucher Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 8, 2013, before U.S. District Judge Sam E. Haddon, ROBERT DEAN BOUCHER was sentenced to a term of:
Prison: 135 months
Special Assessment: $100
Supervised Release: 5 years
BOUCHER was sentenced in connection with his guilty plea to conspiracy to possess with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
During January 2012, law enforcement originally became alerted to a methamphetamine distribution ring from Washington state to Great Falls.
In June 2012, law enforcement learned of an individual, Mark Abresch, who made repeated trips from Great Falls to Washington to obtain methamphetamine to re-sell in Great Falls.
On June 29, 2012, a CI (confidential informant) informed the drug task force that Abresch was returning to Great Falls from Washington with methamphetamine. The task force arranged for a controlled drug buy from Abresch near the University of Great Falls. The CI purchased methamphetamine. The CI then continued to make numerous controlled drug buys from Abresch over the next few days.
Law enforcement located Abresch's car in early July 2012, and the task force tracked this car from Great Falls to Spokane, Washington. The car stayed in Spokane for less than two hours before returning to Great Falls. Law enforcement initiated a traffic stop of the car just outside of Great Falls and they obtained two ounces of methamphetamine. Abresch, the driver of the car, told law enforcement he had traveled to Spokane to buy methamphetamine from "Bert." He had been supplied by Bert, who was identified as BOUCHER, since February or March 2012. In total, Abresch believed he had obtained and distributed approximately ten ounces of methamphetamine that he received from BOUCHER.
Abresch told law enforcement that BOUCHER provided him with a GPS system in order for Abresch to find BOUCHER's house in Spokane. Once Abresch obtained the methamphetamine from BOUCHER, Abresch would sell the methamphetamine by the gram for $100 around Great Falls. BOUCHER sold the methamphetamine to Abresch for $1,400 an ounce.
Abresch and BOUCHER also dealt methamphetamine with other individuals in Great Falls. The methamphetamine dealing continued into the fall of 2012. During the end of October 2012, detectives interviewed additional witnesses, several of which stated they had obtained methamphetamine from BOUCHER.
BOUCHER stored the methamphetamine in the hood and trunk of his car. He then divided the methamphetamine between the sellers who obtained the methamphetamine on credit. BOUCHER stayed in town at an individual's house until the money was collected. This individual would then repackage the methamphetamine into eight-ball baggies and distribute it to other sellers.
Law enforcement seized over 50 grams of pure methamphetamine in this investigation.
Abresch pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BOUCHER will likely serve all of the time imposed by the court. In the federal system, BOUCHER 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 by the High Intensity Drug Trafficking Area (HIDTA) Task Force - Russell County Drug Task Force.
Ricky Allen Dennis Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 11, 2013, before U.S. District Judge Richard F. Cebull, RICKY ALLEN DENNIS, a 38-year-old resident of Billings, appeared for sentencing. DENNIS was sentenced to a term of:
Prison: 73 months
Special Assessment: $600
Supervised Release: 3 years
DENNIS was sentenced for (4) counts of being a felon-in-possession of a firearm and conspiracy to commit a robbery affecting interstate commerce.
The case was prosecuted by Assistant U.S. Attorneys Marcia K. Hurd and Jessica T. Fehr. Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DENNIS will likely serve all of the time imposed by the court. In the federal system, DENNIS 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 by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Mike Kurt Chilinski Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on April 11, 2013, before Senior U.S. District Judge Charles C. Lovell, MIKE KURT CHILINSKI, a 52-year-old resident of Jefferson City, appeared for sentencing. CHILINSKI was sentenced to a term of:
Prison: 18 months, consecutive to previous sentence
Special Assessment: $100
Supervised Release: 4 years
CHILINSKI was sentenced in connection with his guilty plea to manufacture of marijuana.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On October 12, 2011, Jefferson County Sheriff's Office deputies served a search warrant regarding animal cruelty charges at CHILINSKI's Jefferson County residence. During that search warrant execution, the deputies located marijuana plants growing in the residence and on the property. They called the Southwest Montana Drug Task Force. Members of the Southwest Montana Drug Task Force then obtained a search warrant for the marijuana plants. Law enforcement recovered 216 marijuana plants and approximately 1,000 grams of processed marijuana.
On October 13, 2011, the deputies discovered more marijuana plants on the property. The SWMDTF prepared a second search warrant covering all four parcels of CHILINSKI's property for marijuana plants. On October 14, 2011, law enforcement seized an additional 120 marijuana plants.
On October 13, 2011, when interviewed, CHILINSKI stated he purchased marijuana from another caregiver who charged him $260 per ounce of marijuana. The approximate 1,000 grams were for his new patients and to make new edibles. CHILINSKI then sold and gave away marijuana to potential patients. CHILINSKI grew the plants from January through October 2011.
In the past, CHILINSKI may have had as many as 30 patients at one time. CHILINSKI planned to reapply to be a caregiver but had not done the paperwork. He also needed to get new patients and was in the process of getting new patients.
Samples from the marijuana plants as well as the 1,000 grams of marijuana listed above were submitted to the DEA Laboratory for analysis. The result of that analysis found that the items submitted for testing contained a detectable amount of marijuana, a Schedule I controlled substance.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that CHILINSKI will likely serve all of the time imposed by the court. In the federal system, CHILINSKI does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Jefferson County Sheriff's Office, the Montana Division of Criminal Investigation, and the Southwest Montana Drug Task Force.
Keith Allan Devereaux Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 8, 2013, before U.S. District Judge Sam E. Haddon, KEITH ALLAN DEVEREAUX, a 35-year-old resident of Great Falls, was sentenced to a term of:
Prison: 78 months
Special Assessment: $100
Restitution: $3,480
Supervised Release: 3 years
DEVEREAUX was sentenced in connection with his guilty plea to aiding and abetting the crime of robbery affecting commerce.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
On February 21, 2012, around 10:00 p.m., Great Falls Police were alerted to a robbery at the Eagles Lodge. It was reported that three men had robbed a female employee at gun point and then sprayed her in the face with pepper spray. Officers arrived to find the employee absolutely hysterical. She was sobbing and told officers she believed she was going to be shot during the robbery.
Officers began their investigation and found $3,961 had been stolen from the money drawers. The inside of the building also smelled of pepper spray so badly that the police called the Great Falls Fire and Rescue in order to aerate the room. Police interviewed the victim two days later because she was too upset to speak until that point.
According to the victim, the last customer left the bar around 9:30 p.m. Once the customer left, the victim began to clean the west end of the bar. She did not recall hearing anyone come inside, but heard a male voice tell her to turn around. The victim turned around to see three men who were all dressed in black hooded sweatshirts with their faces fairly covered. One of the men pointed a handgun at the victim and yelled, "where's the money?" She believed two of the men had handguns, but could not identify which ones possessed the guns. Another man pointed a gun at the victim and made her walk to the end of the bar. The victim heard banging and slamming, and eventually one man said, "you'll be okay," and sprayed her in the face with pepper spray. The victim struggled to breathe, found her phone, and ran outside to call police.
On February 23, 2012, Great Falls police received a tip that John Gopher, Alicia Arthur, Anthony Gregori, and DEVEREAUX may have been involved in the robbery. The tip reported Gopher had bragged that over $2,000 had been stolen in the robbery of the Eagles Lodge. The person also relayed that Gopher, Gregori, Arthur, and DEVEREAUX had traveled to Billings, but would soon be returning to Great Falls.
Detectives arrested DEVEREAUX after he returned to Great Falls. DEVEREAUX told police he had been in the same car with Gopher, Arthur, and Gregori on the night of the robbery. But that he had returned home at some point. DEVEREAUX did tell the police, however, that he had been with Gopher and Arthur when they devised a plan to rob the Eagles Lodge. DEVEREAUX said he participated in the planning of the robbery, and added the Eagles Lodge looked like a hospital or old person's home. Gopher and Arthur also told police that DEVEREAUX had participated in the robbery.
Gopher, Arthur, and Gregori pled guilty to federal charges and have been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DEVEREAUX will likely serve all of the time imposed by the court. In the federal system, DEVEREAUX 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 by a cooperative effort between the Great Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
June Lee Wolverine Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 1, 2013, before U.S. District Judge Sam E. Haddon, JUNE LEE WOLVERINE, a 33-year-old resident of Browning, appeared for sentencing. WOLVERINE was sentenced to a term of:
Prison: 78 months
Special Assessment: $200
Supervised Release: 3 years
WOLVERINE was sentenced after a federal district court trial in which she was found guilty of assault resulting in serious bodily injury and assault with a dangerous weapon. At trial, the following evidence and testimony was presented to the jury.
On July 3, 2012, the victim in this case was at home asleep. WOLVERINE entered the residence, stabbed the victim with a twelve-inch butcher knife in the chest, and stabbed the victim again as he ran for help. When receiving help, the victim made various statements to neighbors and medical personnel about the circumstances of the stabbing.
The victim's testimony at trial was different than what he provided the FBI in July of 2012. He claimed at trial that he was the aggressor and that WOLVERINE was only acting in self-defense. WOLVERINE also testified. Her testimony was different than what she told the FBI in July of 2012.
After the jury convicted WOLVERINE of both counts in the indictment, the United States District Court directed the U.S. Attorney's Office to investigate and report about potential criminal charges against the victim and WOLVERINE for perjury and false statements to federal agents.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case for the United States.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WOLVERINE will likely serve all of the time imposed by the court. In the federal system, WOLVERINE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Blackfeet Law Enforcement Services and the Federal Bureau of Investigation.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 9, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
DAVID MUSKRAT, a 35-year-old resident of Poplar, appeared on charges of first and second degree murder. He is currently detained. If convicted of these charges, MUSKRAT faces possible penalties of mandatory life in prison and a $250,000 fine. Assistant U.S. Attorney Laura B. Weiss is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Fort Peck Tribes Criminal Investigation Division.
CRESTON KINDNESS, a 30-year-old resident of Fort Hall, Idaho, appeared on charges of assault resulting in serious bodily injury, assault with a dangerous weapon, and use of a firearm during a crime of violence. He is currently detained. If convicted of these charges, KINDNESS faces possible penalties of a mandatory minimum of 5 years and could be sentenced to life, a $250,000 fine, and 5 years supervised release. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
FREDDY WAYNE JIMENEZ, a 40-year-old resident of Browning, appeared on charges of (6) counts of assault resulting in serious bodily injury and (5) counts of assault with a dangerous weapon. He is currently detained. If convicted of these charges, JIMENEZ faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release for each count. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
VERN THOMAS GARDIPEE, a 48-year-old resident of Box Elder, appeared on a charges of aggravated sexual abuse and sexual abuse of a minor. He is currently detained. If convicted of these charges, GARDIPEE faces possible penalties of a mandatory minimum of 30 years in prison and could be sentenced to life, a $250,000 fine, and 5 years supervised release. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
C'ERRA DAWN CLARK, a resident of Poplar, appeared on a charge of assault resulting in serious bodily injury. She is currently detained. If convicted of this charge, CLARK faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Laura B. Weiss is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Fort Peck Tribes Criminal Investigation Division.
JONATHAN JAMES HENDERSON, a 28-year-old resident of Great Falls, appeared on a charge of possession with the intent to distribute methamphetamine. He is currently detained. If convicted of this charge, HENDERSON faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Bryan R. Whittaker is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
WILMA JAMIE RAE HOYT, a 29-year-old resident of Browning, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, and distribution of methamphetamine. She is currently detained. If convicted of these charges, HOYT faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and 4 years supervised release on each of the first two charges, and 20 years, a $1,000,000 fine, and 3 years supervised release on the third charge. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
SERGIO ALEJANDRO LOPEZ, a 37-year-old resident of Portland, Oregon, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, and (2) counts of distribution of methamphetamine. He is currently detained. If convicted of these charges, LOPEZ faces possible penalties of a mandatory minimum of 10 years and could be sentenced to life, a $4,000,000 fine, and 5 years supervised release on each of the first two charges, and a mandatory minimum of 5 years and could be sentenced to 40 years, a $4,000,000 fine, and 4 years supervised release on the last two charges. Assistant U.S. Attorney Joseph E. Thaggard is the prosecutor for the United States. The investigation was conducted by the DRUG ENFORCEMENT ADMINISTRATION.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Courtney Cal Gardenier Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 4, 2013, before Chief U.S. District Judge Dana L. Christensen, COURTNEY CAL GARDENIER, a 25-year-old resident of Scottsdale, Arizona, was sentenced to a term of:
Prison: 24 months
Special Assessment: $100
Supervised Release: 3 years
GARDENIER was sentenced in connection with her guilty plea to conspiracy to distribute ecstasy.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
On November 3, 2011, Homeland Security Investigations ("HSI") was notified by agents from Customs and Border Protection ("CBP") in Chicago that two shipments of ecstasy were received at the mail facility. The packages were sent from Canada and were bound for Bozeman. One contained 22 grams and the other 23 grams of powder MDMA/ecstasy.
On November 9, 2011, a Postal Inspector conducted controlled deliveries of both packages and law enforcement subsequently searched both residences and interviewed the recipients of the packages. The recipients provided detailed information about their involvement in the conspiracy and identified GARDENIER as their point of contact to obtain the drugs. One recipient agreed to cooperate with law enforcement and eventually ordered approximately 1,000 tablets of suspected ecstasy from GARDENIER. Those pills were seized from GARDENIER following a controlled delivery and the DEA lab analyzed the pills and determined that they contained N-benzlypiperazine, or BZP, which is a Schedule I controlled substance.
GARDENIER was interviewed by law enforcement on November 22, 2011, following the controlled delivery of the BZP pills. She admitted that she had been involved in the distribution of both powdered MDMA and ecstasy pills and identified her sources of supply. Based on her statements and the statements of other witnesses, law enforcement estimated that GARDENIER distributed approximately nine ounces of MDMA during the life of the conspiracy, in addition to the BZP pills.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that GARDENIER will likely serve all of the time imposed by the court. In the federal system, GARDENIER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the U.S. Department of Homeland Security - Homeland Security Investigations and the Missouri River Drug Task Force.
Coleen Furthmyre Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 4, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, COLEEN FURTHMYRE, a 46-year-old resident of Helena (formerly Anaconda), pled guilty to theft of government money. Sentencing has been set for July 29, 2013. She is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
In November 2011, based on information received from Glacier Bank, the Secret Service and the Department of Housing and Urban Development ("HUD") initiated an investigation into FURTHMYRE for wire fraud and theft of government property. The investigation revealed that FURTHMYRE, then an employee of the Anaconda Housing Authority ("AHA"), had been stealing money from the AHA for approximately two years, primarily in the form of cash deposits received as rent payments for subsidized housing.
FURTHMYRE was interviewed on November 29, 2011, at the Butte-Silverbow Law Enforcement Center. At the outset of the interview, she asked, "This is about the money, isn't it?" She then admitted that over the past year she had taken cash from AHA's rental payments, deposited the money into her checking account, and used it to pay her personal bills. She said she would try to pay back the money she had stolen at the end of each month to balance the books. She initially tried to track the stolen proceeds by writing amounts on a sticky note, but had recently been unable to keep track of how much she had embezzled.
One interviewing agent told FURTHMYRE that he thought she had been stealing money for longer than one year and she replied that it might have started "a couple years ago." She said she deposited most of the stolen funds into her Glacier Bank account, but also put some of the money into her account at First National Bank. FURTHMYRE noted that she rarely deposited cash into her accounts other than the money she had stolen from the AHA. She said no one else was involved with the theft of funds from the AHA and that she had a meeting that night with her boss to explain what she had done. FURTHMYRE thought she owed the AHA about $28,000, and said she tried to obtain a loan to pay back the stolen funds.
After they interviewed FURTHMYRE, the investigating agents interviewed her boss at the AHA. He confirmed that he had a meeting scheduled with FURTHMYRE later that evening, but was not aware of any bookkeeping problems. After that meeting, he called one of the agents and said FURTHMYRE confessed to stealing money and told him she thought she owed the AHA about $33,000. During a second interview with law enforcement, he explained how FURTHMYRE was able to accomplish her theft and still present the appearance of maintaining balanced books. He said that she carried over shortages from previous months into the next month for several years. The AHA has provided a final loss amount of $31,243.50.
FURTHMYRE faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the U.S. Secret Service and the U.S. Department of Housing and Urban Development - Inspector General's Office.
Cassandra Joan Fadness Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on April 20, 2013, before U.S. District Judge Senior U.S. District Judge Charles C. Lovell, CASSANDRA JOAN FADNESS, a 60-year-old resident of Boulder, appeared for sentencing. FADNESS was sentenced to a term of:
Probation: 3 years
Special Assessment: $100
Restitution: must repay government for cost of probation
FADNESS was sentenced in connection with her guilty plea to theft of government money and social security payee fraud.
In an Offer of Proof filed by Special Assistant U.S. Attorney Chad C. Spraker, the government stated it would have proved at trial the following:
From approximately April of 2008 to approximately August of 2008, in Helena, FADNESS, while operating Montana Payee Services, became the representative payee for X.X. and, in that capacity, withdrew funds from X.X.'s beneficiary bank account by withdrawing cash and unauthorized fees and converting the cash and fees for her own personal use.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that FADNESS will likely serve all of the time imposed by the court. In the federal system, FADNESS 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 by the Social Security Administration - Office of Inspector General.
The U.S. Attorney for the District of Montana Announces with Federal, State and Local Law Enforcement the Results of the Year Long Operation Dubbed, Billings Area Criminals” or “bac”.Read the Press Release
United States Attorney Michael W. Cotter of the District of Montana, with representatives from the Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF"), the Drug Enforcement Administration ("DEA"), the United States Marshal's Service, the Montana Division of Criminal Investigations, the Billings Police Department and Yellowstone County Attorney Scott Twito today announced at a press conference the results of ATF's Billings Area Criminals ("BAC") operation, a one-year covert investigation focusing on identifying and investigating the criminal activity of violent criminals in the Billings, Montana, area.
For approximately one year ATF personnel coordinated an undercover operation at a business location in Billings, Montana. During the operation undercover personnel were able to infiltrate criminal organizations in the Billings community; stop planned criminal activity from being commenced; stop the distribution of methamphetamine, cocaine, marijuana, ecstasy and prescription pills; and take 52 guns off the streets.
As a result of the operation the U.S. Attorney's Office for the District of Montana was able to prosecute and convict 22 defendants. The sentences imposed in each of the 22 cases have ranged from 12 months and day up to 170 months. The six defendants that received the highest sentences in the case are as follows, the remaining 14 defendants are listed on the attachment to this release:
Ricky Dennis: Dennis had at least 12 prior misdemeanor and felony convictions at the time of his sentencing. Dennis was sentenced on April 11, 2013, to 73 months in prison, to be followed by 3 years supervised release for convictions of Felon in Possession (4 Counts) and Conspiracy to Commit a Robbery Affecting Interstate Commerce.
Anthony Roll: Pled guilty to 8 Felon in Possession of a Firearm Counts; Conspiracy to Commit a Robbery Affecting Interstate Commerce; Possession of a Stolen Firearm; Possession of a Firearm in Further of a Crime of Violence; 1 Count of Possession of Stolen Firearm; 2 Counts of Receipt of a Firearm While Under Criminal Information; and 2 Counts of Distribution of Ecstasy. Roll had at least 20 prior misdemeanor and felony convictions at the time of his sentencing. Roll was sentenced on October 11, 2012, to serve 170 months in prison, to be followed by 5 years supervised release.
Rodrick Gant: Convicted at trial of Conspiracy to Commit a Robbery Affecting Interstate Commerce; 1 Count Possession of a Firearm in Furtherance of a Crime of Violence; 1 Count Possession of Gun by Person Convicted of a Misdemeanor Crime of Domestic Violence. Gant had at least 5 prior misdemeanor and felony convictions at the time of his sentencing. Jones was sentenced on August 30, 2012, to 106 months in prison, to be followed by 5 years supervised release.
Thaddeus Jones: Pled guilty to 1 Count of Conspiracy to Distribute Methamphetamine; 2 Counts of Distribution of methamphetamine; 1 Count of Conspiracy to Distribute Cocaine; 11 Counts of Distribution or Attempted Distribution of Cocaine; and 1 Count of Felon in Possession of a Firearm. Jones had at least 20 prior misdemeanor and felony convictions and at least 15 pending misdemeanor and felony convictions in other courts at the time of his sentencing. Jones was sentenced on August 8, 2012, to 134 months in prison, to be followed by 5 years supervised release.
Richard Meza: Pled guilty Conspiracy to Commit a Robbery affecting Interstate Commerce and 1 Count of being a Felon in Possession of a Firearm. Meza had at least 5 misdemeanor and felony convictions at the time of his sentencing. Meza was sentenced on July 12, 2012, to 103 months in prison, to be followed by 5 years supervised release.
Marvin Galloway: Pled guilty to 7 Counts of being a Felon in Possession of a Firearm; 5 Counts of Possession of a Stolen Firearm; and 3 Counts of Distribution of Cocaine. Galloway had at least 7 prior misdemeanor and felony convictions at the time of his sentencing. Galloway was also on Montana state supervision at the time of the offenses of conviction. Galloway was sentenced on June 26, 2012, to serve 84 months in prison, to be followed by 3 years of supervised release.
In addition to the federal prosecutions, the work of the personnel involved in BAC also resulted in the capture and assistance in the prosecution of Cleveland Boyer in Yellowstone County District Court. Boyer was charged in the murder of Danny Valenzuela in Billings, Montana. Based on the undercover nature of the BAC investigation, ATF personnel were able to put a plan in place, execute the plan and orchestrate the arrest of Boyer in Bozeman MT some 130 miles west of Billings. Boyer was recently tried in Yellowstone County District Court and convicted of deliberate homicide.
In response to the work of law enforcement in the BAC case, U.S. Attorney Michael W. Cotter, for the District of Montana, said, "The number one goal of law enforcement is public safety. Today, the Billings community is a better and safer place because of this operation and the members of law enforcement involved deserve the highest praise for their efforts. The undercover operation conducted by the ATF, with assistance from other law enforcement agencies in the community, was truly an example of what can be accomplished when all of a community's law enforcement assets are focused on making the town safer. The joint operation by ATF and others in this investigation removed more than 20 hardened and dangerous criminals from the streets of Billings, Montana and put them in federal prison."
ATF is committed to protecting the citizens of Montana by removing career criminals from our communities and putting them behind bars," said Andrew Traver, Special Agent in Charge of ATF's Denver Field Division. "We are passionate about this mission and will continue to work with our law enforcement partners to ensure that we are successful."
The Montana Department of Justice is proud to be working with local and federal law enforcement agencies to find, apprehend, and convict dangerous criminals in the Billings area and throughout our state. I am committed to both continuing this partnership and finding new ways we can collaboratively tackle the state's top public safety challenges. We can't understate the threats posed to our communities by criminal conspiracies and the trafficking of illegal drugs and weapons. We may work for different agencies, but we're all Montanans and we're here to serve Montanans. Great things happen when we work together," said Attorney General Tim Fox.
U.S. Marshal for the District of Montana said, "This case is a perfect model of the commitment of working together at all levels of law enforcement and the merging of resources to put Montana Law Enforcement strides ahead on identifying and arresting offenders in our state."
This case again demonstrates that the collaboration of law enforcement in the Billings community is second to none," said Billings Police Chief Rich St. John, "the men and women of local, state and federal law enforcement have truly made our community safer through this operation."
U.S. Attorney's Office Announces Press Conference Scheduled for Thursday, April 11, 2013, at 2:30 P.m. to Discuss the Conclusion of A Large Scale Community Safety Operation.Read the Press Release
The United States Attorney for the District of Montana, Michael W. Cotter, announced today that a press conference will be held on Thursday, April 11, 2013, at 2:30 p.m., at the U.S. Attorney's Office, James F. Battin Federal Building, 2601 Second Ave. N., Ste. 3200, Billings, Montana. The press conference attendees are expected to include the United States Attorney for the District of Montana, Michael Cotter, with representatives from the Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF"), the Drug Enforcement Administration ("DEA"), the United States Marshal's Service, the Montana Division of Criminal Investigations, the Billings Police Department and Yellowstone County Attorney Scott Twito.
The purpose of the press conference is to announce and discuss the results of ATF's "Billings Area Criminals" or "BAC" operation, a one-year covert investigation focusing on identifying, investigating and prosecuting the criminal activity of violent criminals in the Billings, Montana, area.
Questions about the event may be directed to AUSA Jessica T. Fehr at [email protected].
Jesse Shaderic Wall, Jr. Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 3, 2013, before U.S. District Judge Jeremiah C. Lynch, JESSE SHADERIC WALL, Jr., a 66-year-old resident of Kalispell, pled guilty to wire fraud. Sentencing has been set for July 12, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
At the time of the crimes referenced in the Indictment, WALL was a CPA in the Kalispell area. Beginning in 2008, WALL made material misrepresentations to RBM Lumber Company to induce the company to invest $350,000 with him. One RBM executive explained to law enforcement that WALL was the company's accountant and that he offered to invest some of RBM's money in mediums that would produce a higher rate of return than RBM could get from a bank. RBM agreed and began providing WALL with various sums of money at various times. According to the RBM representative, WALL created a Nevada corporation called Milestone Innovations, Inc., and the money that RBM provided WALL was invested on behalf of that Nevada entity.
WALL used the money he obtained from RBM on his struggling business, as opposed to depositing it into any interest-bearing investments. RBM's expectation was that the money would be readily available should the company need it and WALL was not given authority to tie the funds up for any extended period of time. But in February 2011, when RBM asked WALL to return the money, he was unable to do so. He told RBM that the money was invested in real estate, which was not true. In reality, WALL had spent the RBM money but was hoping to sell his house in the coming months and planned to use the proceeds from that sale to pay RBM. WALL did repay $190,000 to RBM in June 2011.
WALL was interviewed by a Secret Service agent on December 29, 2011. During the interview, WALL expressed a desire to pay RBM back, but also said he "perhaps did say something misleading to them," to induce them to part with their money.
Count I of the Indictment involved a check that WALL wrote on July 1, 2009, from a Wells Fargo Bank account in the name of Milestone Innovations, Inc., for $12,500. The check was written to "Jesse S. WALL, CPA PC," and deposited into WALL's business account at West One Bank. That deposit caused a wire communication in interstate commerce between Wells Fargo Bank in Montana and a federal reserve bank outside Montana.
WALL faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the U.S. Secret Service
Arbonnie Ellen Seal Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 3, 2013, before Chief U.S. District Judge Richard F. Cebull, ARBONNIE ELLEN SEAL, a 50-year-old resident of Billings, was sentenced to a term of:
Prison: 18 months
Special Assessment: $200
Supervised Release: 4 years
SEAL was sentenced in connection with her guilty plea to conspiracy to possess with the intent to distribute methamphetamine and possession with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
SEAL and another individual came to the attention of law enforcement in Billings when a confidential informant contacted the High Intensity Drug Trafficking Area (HIDTA) Task Force in May 2011 and reported that he/she had been obtaining methamphetamine for the past eight weeks from an individual and redistributing it to the Northern Cheyenne Indian Reservation. The CI reported that he/she got eight balls, then half ounces, then ounces from the individual and would then return to the reservation, break down the methamphetamine into smaller amounts and redistribute it. The CI brought back one pound of methamphetamine from Washington to the individual in Montana.
A second CI agreed to purchase methamphetamine from SEAL in late August 2011. The CI had been purchasing methamphetamine in the amount of a quarter gram a day for the last 3 months from SEAL. The CI went to SEAL's house on August 24, but she was not home. The CI texted SEAL and asked where she was, SEAL replied that she was at the other individual's home. Law enforcement believed that the individual was SEAL's source of supply and that SEAL had just purchased methamphetamine from the individual to sell to the CI. SEAL was stopped in her car for talking on a cell phone and speeding, and ultimately consented to a search of her car. There were 14.3 grams of methamphetamine found that SEAL had just purchased from the individual, and numerous items of drug paraphernalia. SEAL admitted that she had been getting methamphetamine for redistribution from the individual.
SEAL and the individual conspired to distribute at least 50 grams of methamphetamine. The individual distributed methamphetamine to SEAL on August 24, and SEAL possessed it with the intent to distribute it to the CI.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SEAL will likely serve all of the time imposed by the court. In the federal system, SEAL 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 by the Billings Big Sky Safe Streets Task Force.
Ryan James Parker Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 1, 2013, before U.S. District Judge Sam E. Haddon, RYAN JAMES PARKER, a 26-year-old resident of Box Elder and an enrolled member of the Rocky Boy's Indian Reservation, was sentenced to a term of:
Prison: 37 months
Special Assessment: $100
Restitution: $3,998
Supervised Release: 3 years
PARKER was sentenced in connection with his guilty plea to involuntary manslaughter.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On June 14, 2012, near Box Elder on the Rocky Boy's Indian Reservation, PARKER caused a collision between the vehicle he was driving and another vehicle in which an individual died.
PARKER was intoxicated at the time of the collision. According to tribal law enforcement, PARKER was arrested immediately following the collision and given a Breathalyzer test. The result showed his blood alcohol content was .25. The Airbag Control Module report indicated that PARKER was driving 91 mph at -5 seconds prior to the collision and 63 mph at -2 seconds prior to the collision. The posted speed limit on this area was 35 miles per hour.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that PARKER will likely serve all of the time imposed by the court. In the federal system, PARKER 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 by a cooperative effort between the Montana Highway Patrol, the Federal Bureau of Investigation, and the Chippewa Cree Law Enforcement.
Dana Yvonne Kent Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 1, 2013, before U.S. District Judge Sam E. Haddon, DANA YVONNE KENT, a 49-year-old resident of Santa Ana, California, was sentenced to a term of:
Prison: 18 months
Special Assessment: $100
Restitution: $101,490
Supervised Release: 1 year
KENT was sentenced in connection with her guilty plea to wire fraud/telemarketing.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
Between October of 2009 and May 25, 2012, KENT was involved with other individuals in oil and gas lease schemes totaling approximately $673,406.62 in monies from investors.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that KENT will likely serve all of the time imposed by the court. In the federal system, KENT does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the U.S. Department of Interior - Office of Inspector General.