District of Montana

The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:

Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Sept. 22 was:

Robert Maurice LaCroix, 53, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, LaCroix faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least five years of supervised release. LaCroix was detained pending further proceedings. The FBI Western Transnational Organized Crime Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 20-55.

The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

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GREAT FALLS – Chief U.S. District Judge Brian M. Morris on Tuesday convicted a Browning man of sexually abusing a minor girl on the Blackfeet Indian Reservation, U.S. Attorney Kurt Alme said today.

After a one-day bench trial on Tuesday, Judge Morris found Justin Zane Gobert, 38, guilty of abusive sexual contact. Gobert faces a maximum of life in prison, a $250,000 fine and at least five years of supervised release.

Judge Morris set sentencing for Jan. 21, 2021. Gobert was released on conditions including location monitoring.

"Too many children are the victims of sexual abuse.  This child should have grown up like other children, thinking about school, family and friends, and optimistic about the world and her future.  Instead, actions like the defendant’s traumatize their victims, and they need to be held accountable, as the defendant was yesterday.  I want to thank Assistant U.S. Attorney Kalah Paisley, the FBI and the Blackfeet Law Enforcement Services for investigating and prosecuting this case," U.S. Attorney Alme said.

The prosecution said in court documents filed in the case that Gobert sexually abused a minor girl, who was under the age of 12, in June 2017. The abuse occurred in a residence on the Blackfeet Indian Reservation.

Assistant U.S. Attorney Kalah Paisley is prosecuting the case, which was investigated by the FBI and Blackfeet Law Enforcement Services

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GREAT FALLS – A Great Falls man accused of downloading and sharing child pornography with his cell phone admitted criminal charges today, U.S. Attorney Kurt Alme said.

Derek Wallace Johnson, 41, pleaded guilty to distribution of child pornography and to receipt of child pornography. Johnson faces a minimum mandatory five years to 20 years in prison, a $250,000 fine and five years to life of supervised release.

Chief U.S. District Judge Brian M. Morris presided. Sentencing is set for Jan. 21, 2021. Johnson was detained.

The prosecution said in court documents that in October 2019, Homeland Security Investigations in Great Falls received information that a suspect had uploaded possible child pornography in April 2019. An investigation determined that the uploaded image depicted a child engaged in sexually explicit conduct and led to Johnson as the suspect. Investigators served a search warrant on Johnson's residence. Johnson, who was present for the search, told officers he had lost his cell phone a few days earlier, but an agent found it hidden between the box spring and mattress in Johnson's bedroom.

After initially being untruthful, Johnson admitted he had participated in online activity involving child pornography and admitted to hiding his phone. He also said he had about 1,000 videos and images of child pornography in an encrypted app on his phone. Johnson told officers he downloaded child pornography in Kik chat rooms and shared files with others seeking images in chat rooms.

Agents searched Johnson's phone and determined it contained child pornography images. Johnson distributed child pornography in April 2019 and had downloaded or received child pornography from December 2016 to November 2019.

Assistant U.S. Attorney Cyndee Peterson is prosecuting the case, which was investigated by the Montana Internet Crimes Against Children Task Force, Homeland Security Investigations and the Great Falls Police Department.

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GREAT FALLS — A Billings man who admitted distributing methamphetamine in Missoula and Great Falls was sentenced today to 10 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.

William Walton Hanson Jr., 41, also known as "JR," pleaded guilty in June to possession with intent to distribute meth.

Chief U.S. District Judge Brian M. Morris presided.

In court documents filed in the case, the prosecution said that in December 2018, a Missoula County Sheriff's Office detective received information that Hanson was traveling to Missoula from Washington with drugs. The detective was aware that Hanson was known to be involved in meth distribution and that Hanson had an active arrest warrant. Missoula police conducted a traffic stop and arrested Hanson on the warrant. Officers obtained a search warrant for the vehicle and found approximately 125 grams of meth. Through the investigation, officers learned that Hanson was involved in trafficking meth in Missoula and Great Falls from about December 2018 to February 2019.

Assistant U.S. Attorney Cassady Adams prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Drug Enforcement Administration, Missoula County Sheriff's Office, Missoula Police Department and Great Falls Police Department.

This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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GREAT FALLS — A Big Sandy couple who admitted distributing methamphetamine on the Rocky Boy's Indian Reservation today were sentenced to prison terms, U.S. Attorney Kurt Alme said.

Clayton Gary Bailey, 48, was sentenced to 57 months in prison and five years of supervised release. Bailey's wife, Brigitte Ann Bailey, 44, was sentenced to 44 months in prison and five years of supervised release. Each pleaded guilty in June to possession with intent to distribute meth.

Chief U.S. District Judge Brian M. Morris presided.

The prosecution said in court documents that on Sept. 12, 2019, officers with Chippewa Cree Law Enforcement made a traffic stop on the Rocky Boy's Indian Reservation of a vehicle driven by Clayton Bailey, who was wanted on a tribal court warrant. Officers also knew that Clayton Bailey had been identified by sources as a supplier of illegal drugs. Brigitte Bailey was a passenger.  Clayton Bailey was arrested on the warrant and Brigitte Bailey was transported off the reservation. Officers impounded and searched the vehicle. Law enforcement found a glass jar and two plastic baggies that contained a total of about 66 grams of meth. On the driver-side floor, officers found a machete, a small hatchet, a knife and a small taser.

Clayton Bailey admitted to officers that he owned the meth and a small amount of heroin also found in the vehicle and that he had been selling drugs in the area for multiple months. Brigitte Bailey admitted to being involved in trafficking meth. She disputed the amount of meth found in the vehicle but agreed she had intended to distribute it.

Assistant U.S. Attorney Ethan Plaut prosecuted the case, which was investigated by the FBI, Chippewa Cree Law Enforcement and Tri-Agency Drug Task Force.

This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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GREAT FALLS – A Wolf Point man accused of selling meth in a casino on the Fort Peck Indian Reservation admitted methamphetamine trafficking charges today, U.S.
Attorney Kurt Alme said.

Chance Justin Redstone, also known as CJ Redstone, 35, pleaded guilty to distribution of meth. Redstone faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release.

Chief U.S. District Judge Brian M. Morris presided. Judge Morris set sentencing for Jan. 14, 2021. Redstone was released.

The prosecution said in court documents that during investigations into drug trafficking on the Fort Peck Indian Reservation in 2018 and 2019, Redstone was identified by cooperating witnesses as a meth dealer. In April 2018, law enforcement arranged for a confidential source to buy meth from Redstone. Redstone and the confidential source met inside the Silver Wolf casino in Wolf Point where the confidential source bought meth from Redstone and then left the business. The meth purchased from Redstone totaled about 13 grams.

Assistant U.S. Attorney Cassady Adams is prosecuting the case, which was investigated by the FBI, Bureau of Indian Affairs, Fort Peck Tribes Department of Law and Justice, and the Drug Enforcement Administration.

This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:

Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Sept. 15 was:

Jordan Paul Owens, 20, of Evergreen, on charges of false statement in firearms transaction. If convicted of the most serious crime, Owens faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Owens was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the Case. Pacer case reference. 20-29.

William Allen Rorvik, 39, of Missoula, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Rorvik faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Rorvik was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Highway Patrol, and Montana Department of Corrections Probation and Parole investigated the case. Pacer case reference. 20-23.

Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Sept. 15 was:

Dakoda Blu Wade Iron Shirt, 27, of Browning, on charges of possession with intent to distribute methamphetamine and distribution of meth. If convicted of the most serious crime, Iron Shirt faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. Iron Shirt was detained pending further proceedings. The Drug Enforcement Administration, FBI and Big Sky Safe Trails Task Force investigated the case. Pacer case reference. 20-68.

Taylor Gardipee Walker, 22, of Harlem, on charges of involuntary manslaughter. If convicted of the most serious crime, Walker faces a maximum eight years in prison, a $250,000 fine and three years of supervised release. Walker was released pending further proceedings. The FBI and Fort Belknap Law Enforcement investigated the case. Pacer case reference. 20-54.

Brian John Loven, 41, of Missoula, on charges of aiming a laser pointer at an aircraft. If convicted of the most serious crime, Loven faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Loven was released pending further proceedings. The FBI and Great Falls Police Department investigated the case. Pacer case reference. 20-33.

Kathleen Elizabeth Francis, 53, of Lewistown; Amber Rachelle Carr, 35, of Lewistown; and Shirley Ann Adcock, 73, of Bakersfield, CA, on charges of conspiracy to possess with intent to distribute and distribution of meth and possession with intent to distribute meth. If convicted of the most serious crime, the defendants face a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. All defendants were released pending further proceedings. The Drug Enforcement Administration investigated the case. Pacer case reference. 20-53.

Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Sept. 14 was:

Eric Richard Morrow, 36, of Jordan, on charges of mail fraud and aggravated identity theft. If convicted of the most serious crime, Morrow faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. Morrow was detained pending further proceedings. The U.S. Postal Service investigated the case. Pacer case reference. 20-97.

Appearing on Sept. 15 was:

Melvin Louis Weasel Boy, 46, Billings, on charges of possession with intent to distribute controlled substances. If convicted of the most serious crime, Weasel Boy faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Weasel Boy was released pending further proceedings. The Drug Enforcement Administration investigated the case. Pacer case reference. 20-62.

Appearing on Sept. 17 was:

Dale Lee Musgrave, 50, of Pompeys Pillar, on charges of conspiracy to possess with intent to distribute cocaine, possession with intent to distribute cocaine, conspiracy to submit false statements in mine records, false statements in mine records and false statement. If convicted of the most serious crime, Musgrave faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. Pacer case reference. 19-159.

Robert James Miller, 49, of Billings, and Isabellita Anne Isis, 43, of Billings, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, the defendants face a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. The defendants were released pending further proceedings. The FBI Western Transnational Organized Crime Task Force and Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. Pacer case reference. 20-96.

Leland Thomas Ash Jr., 26, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Ash faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Ash was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-87.

Gregory William Knows His Gun, 37, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Knows His Gun faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Knows His Gun was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-93.

Marvin Charles Hurd, 27, of Billings, on charges of possession with intent to distribute meth. If convicted of the most serious crime, Hurd faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-94.

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.

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

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BILLINGS—A Laurel man was arraigned today on an indictment alleging he attempted to illegally obtain $35,000 from the Paycheck Protection Program, a federal loan program created through the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help businesses struggling with the financial effects of the coronavirus pandemic, U.S. Attorney Kurt Alme said today.

Matthew Jason Welch, 38, pleaded not guilty to two counts of wire fraud as charged in an indictment filed on Aug. 21. An indictment merely alleges that crimes have been committed, and defendants are presumed innocent until proven guilty beyond a reasonable doubt. Wire fraud carries a maximum penalty of 20 years in prison, a $250,000 fine and three years of supervised release.

The indictment against Welch is the first PPP fraud case to be charged in Montana.

U.S. Magistrate Judge Timothy J. Cavan presided. Welch was released pending further proceedings.

The indictment alleges Welch attempted to unjustly enrich himself by submitting an application on April 23 to obtain a PPP loan under false and misleading pretenses by making false statements about his criminal history. It is also alleged he intended to use the loan proceeds to pay for restitution and other costs related to pending criminal cases against him. The indictment further alleges that Welch, in the name of Welch Sole Proprietorship, sought $35,000 in PPP funds to support payroll, lease and mortgage-interest costs and utility costs and that he falsely certified he was not subject to criminal charges.

The U.S. Small Business Administration and the U.S. Secret Service investigated the case. Pacer case reference. 20-103.

The progress of this case may be monitored regularly through the U.S. District Court calendar and the PACER system. To establish a PACER account, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

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GREAT FALLS — A Harlem man who admitted beating and strangling a woman on the Fort Belknap Indian Reservation was sentenced today to 51 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.

Douglas Floyd Main, 33, pleaded guilty in May to domestic abuse by habitual offender.

Chief U.S. District Judge Brian M. Morris presided.

In court documents filed in the case, the prosecution said Main beat and strangled a dating partner in November 2019 at a residence in Fort Belknap Agency, on the Fort Belknap Indian Reservation. Main had two prior convictions of abuse of a family member in 2007 and 2015 in Fort Belknap Tribal Court.

Assistant U.S. Attorney Jared Cobell prosecuted the case, which was investigated by the FBI and Fort Belknap Law Enforcement Services.

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GREAT FALLS – A California man who admitted to trafficking meth for supplying almost two pounds of the drug, which was hidden in a peanut butter jar and a piñata and mailed to the Fort Peck Indian Reservation, was sentenced today to six years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.

Don Fred Baldwin, 47, of Merced, CA, pleaded guilty in May to distribution of meth.

Chief U.S. District Judge Brian Morris presided.

The prosecution said in court documents that Baldwin, through another person, mailed a package on Nov. 7, 2019 from California to Brockton, located on the Fort Peck Indian Reservation. Law enforcement officers intercepted the package, obtained a search warrant and found meth hidden inside a jar of peanut butter and a piñata. The amount of meth totaled about 776 grams, which is 1.7 pounds and the equivalent of approximately 6,208 doses. Baldwin provided the meth to the other individual, who mailed the drug.

Assistant U.S. Attorney Cassady Adams prosecuted the case, which was investigated by the FBI, Fort Peck Tribal Criminal Investigators and the Merced, CA, Police Department.

This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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MISSOULA – A Eureka man today admitted a drug trafficking crime after law enforcement found methamphetamine, heroin and firearms at his residence, U.S. Attorney Kurt Alme said.

Tracy Eugene Conard, 50, pleaded guilty to possession with intent to distribute controlled substances. Conard faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least five years of supervised release.

U.S. Magistrate Judge Kathleen L. DeSoto presided. Conard was released pending further proceedings. Sentencing was set for Jan. 8, 2021.

The prosecution said in court documents that in October 2019, the Lincoln County Sheriff's Office was investigating Conard and officers conducted a controlled buy in which an informant bought meth from Conard. The investigation led to law enforcement obtaining a search warrant for Conard's residence. Officers found 53.6 grams of meth, 9.9 grams of black tar heroin and numerous firearms and ammunition.

Assistant U.S. Attorney Jennifer Clark is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lincoln County Sheriff's Office.

This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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BILLINGS — A Hardin man who admitted selling methamphetamine during an undercover buy that occurred near the Billings Public Library was sentenced today to seven years in prison and four years of supervised release, U.S. Attorney Kurt Alme said.

Charles Anthony Sloan, 32, pleaded guilty in April to conspiracy to possess with intent to distribute meth and to distribution of meth.

U.S. District Judge Susan P. Watters presided.

Court records filed by the prosecution said that on May 10, 2019, a confidential source advised a drug task force officer that Sloan was willing to sell an ounce of meth for $800. The task force arranged for a sale in which an undercover agent assisted. The transaction took place in a vehicle parked on North 29th Street, near the Billings Public Library. Sloan entered the vehicle, which was occupied by the undercover agent and confidential source, and called his source to arrange for the delivery of one ounce of meth for $900. The source arrived, and supplied Sloan with the meth. Sloan kept a small amount and sold the rest to the undercover agent for $800. Sloan also offered the confidential source a small amount of meth for setting up the deal. A Drug Enforcement Agency laboratory determined that the meth totaled 25.5 grams of pure meth.

Assistant U.S. Attorney Karla Painter prosecuted the case, which was investigated by the DEA.

This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:

Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Sept. 8 was:

Gregory Briar Schoenwald, 33, of Dillon, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Schoenwald faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Schoenwald was detained pending further proceedings.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Probation and Parole investigated the case. Pacer case reference. 20-20.

Andrew Leroy Moosman, 31, of Stevensville, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Moosman faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Moosman was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missoula Police Department and Montana Probation and Parole investigated the case. Pacer case reference. 20-31.

Appearing on Sept. 10 was:

Ricardo Lopez Medina, 47, of Mexico, on charges of illegal reentry of a removed alien. If convicted of the most serious crime, Medina faces a maximum two years in prison, a $250,000 fine and three years of supervised release. Medina was detained pending further proceedings. The Department of Homeland Security's Enforcement and Removal Operations, Belgrade Police Department and Gallatin County Sheriff's Office investigated the case. Pacer case reference. 20-26.

Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Sept. 9 was:

Jason Avery Mattson, 29, of Browning, on charges of second degree murder and kidnapping. If convicted of the most serious crime, Mattson faces life in prison, a $250,000 fine and five years of supervised release. Mattson was detained pending further proceedings. The Bureau of Indian Affairs, FBI and Blackfeet Law Enforcement Services investigated the case. Pacer case reference. 20-55.

Appearing on Sept. 9 was:

Jeffrey Robert Igoe, 60, a transient, on charges of possession of a stolen firearm, receipt of a firearm by a person under indictment and unlawful taking of a firearm from a licensed dealer. If convicted of the most serious crime, Igoe faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Igoe was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Helena Police Department investigated the case. Pacer case reference. 20-8.

Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Sept. 8 was:

Laurie Ann Stookey, 56, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Stookey faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Stookey was released pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force and the FBI's Western Transnational Organized Crime Task Force investigated the case. Pacer case reference. 20-100.

Appearing on Sept. 10 was:

Casey Conrad Nixon, 42, of Billings, on charges of false statement during a firearms transaction. If convicted of the most serious crime, Nixon faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Nixon was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-85.

Jamel Akeem Scott, 35, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Scott faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Scott was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-99.

Robert Lowell Takesenemy, Jr., 37, of Lame Deer, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Takesenemy faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Takesenemy was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-41.

Bernadine Joseph Lone Elk, Jr., 25, of Billings, on charges of prohibited person in possession of a firearm and unlawful possession of a stolen firearm. If convicted of the most serious crime, Lone Elk faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Lone Elk was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-95.

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.

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

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GREAT FALLS – A former Indian Health Services doctor who worked in Browning today admitted charges of conflict of interest for using his job to prescribe a diabetes drug from a pharmacy in exchange for kickbacks, U.S. Attorney Kurt Alme said.

Dr. Arnold Scott Devous, 68, of Billings, pleaded guilty to federal medical officer with conflict of interest. Devous faces a maximum five years in prison, a $250,000 fine and three years of supervised release.

Chief U.S. District Judge Brian M. Morris presided. Devous was released. Sentencing was set for Dec. 10.

In court documents filed in the case, the prosecution said that Devous, who was a medical officer for the IHS in Browning and in charge of its diabetes program, used his position to prescribe Farxiga, a Type 2 diabetes medication. Farxiga was not on the IHS formulary and could not be obtained at the facility. From December 2015 until June 2016, Devous solicited multiple pharmacies in Montana to fill expensive prescriptions of Farxiga in exchange for Devous receiving a "cut" of the profits and kickbacks. Government personnel are prohibited from engaging in these types of relationships.

Ultimately, a pharmacy agreed to Devous' terms and the amount of money paid to the doctor totaled $45,540 in approximately six months. Devous first hid the kickbacks by sending the money to his wife, and then he used a prospective business associate. Neither of these options was allowable under the law. When interviewed, Devous admitted that his wife received the money, which was illegal. Devous also admitted he never informed his superiors of the outside income as required by law.

Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the Office of Inspector General, Office of Investigations, U.S. Department of Health & Human Services.

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GREAT FALLS — A Canada resident today was sentenced to one year and one day in prison and one year of supervised release after he admitted trying to smuggle firearms into Canada from the United States, U.S. Attorney Kurt Alme said.

Colby Stephan Skolseg, 44, of Alberta, was arraigned, pleaded guilty to attempted illegal export as charged in a superseding indictment and was sentenced during the hearing.

Chief U.S. District Judge Brian M. Morris presided.

The prosecution said in court documents filed in the case that in September 2010, Skolseg and an accomplice attempted to illegally export eight handguns from Montana into Canada. The firearms had obliterated serial numbers and were hidden in an aquarium cooler. The plan was to resell the handguns in Canada. Canadian law enforcement was able to restore the serial numbers.

Two years later, Skolseg and his accomplice resumed their handgun smuggling and used websites instead of making personal trips to the United States. The pair illegally exported 25 additional handguns from West Virginia into Calgary through varying shipments.

Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Department of Homeland Security, Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; the Montana Department of Justice, Department of Motor Vehicle Licensing Services; the Canada Border Service and the Royal Canadian Mounted Police forensic lab and investigations divisions.

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BILLINGS – A Billings man accused of strangling a woman at a Crow Agency residence admitted assault charges today, U.S. Attorney Kurt Alme said.

Sean Evan Thomas Bad Bear, 29, pleaded guilty to assault by strangulation of an intimate partner and dating partner. Bad Bear faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.

U.S. Magistrate Judge Timothy J. Cavan presided. Bad Bear was released pending further proceedings.

The prosecution said in court documents that the assault occurred on Feb. 19, 2019 at a Crow Agency residence on the Crow Indian Reservation. Bad Bear assaulted the victim and placed her in a choke hold. The victim lost consciousness because she could not breathe.

Assistant U.S. Attorney Jeanne Torske is prosecuting the case, which was investigated by the FBI.

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WASHINGTON – Today, Attorney General William P. Barr and Drug Enforcement Administration Acting Administrator Timothy J. Shea announced the results of Operation Crystal Shield, a DEA–led effort targeting the command and control elements of Mexican cartels that operate major methamphetamine “transportation hubs” throughout the United States.

At a press conference in Phoenix, Arizona, Attorney General Barr and Acting Administrator Shea announced that in the first six months, Operation Crystal Shield generated more than 750 investigations, resulting in nearly 1,840 arrests, and the seizures of more than 28,560 pounds of methamphetamine, $43.3 million in drug proceeds, and 284 firearms.

“Methamphetamine is a brutal drug linked to violent crime and responsible for far too many fatal overdoses,” said Attorney General Barr.  “The astounding results of Operation Crystal Shield clearly demonstrate the commitment by the DEA and our state and local partners to prevent this deadly drug from reaching the streets of our communities.  Prosecuting individuals who traffic these poisons remains a top priority for President Trump and the entire Department of Justice.”

“In the months leading up to the launch of Operation Crystal Shield, communities across the United States experienced a surge of methamphetamine,” said Acting Administrator Shea.  “The COVID pandemic locked down many communities and impacted legitimate businesses, but the drug trade continued.  Under difficult conditions, DEA – along with our federal, state, and local partners – never stopped working as we helped stem the flow of methamphetamine onto our streets, even as violent drug traffickers sought new ways to smuggle it into the United States.  The success of Operation Crystal Shield reflects the devotion of DEA and our partners to protect our communities from the scourge of drug trafficking and violent crime under any circumstances.”

U.S. Attorney Kurt Alme, for the District of Montana, expressed support for Operation Crystal Shield. "Much of Montana's meth comes through these hubs cities and is driving our violent crime. Stopping these large quantities in California and Arizona will make meth harder to get and more expensive in Montana. When meth traffickers do get through, law enforcement officers across our state are committed to arresting and prosecuting them to the full extent of the law," U.S. Attorney Alme said.

Recent Montana cases include:

• A Mesa, Arizona man was sentenced in July 2019 to 10 years in prison on meth trafficking charges after law enforcement seized 34 pounds of meth in a suitcase he brought to Billings. 
• A Billings resident was sentenced in August to eight years in prison on trafficking charges afer law enforcement found six pounds of meth in her home and another residence. The defendant admitted that she and another person had just returned from Phoenix and Las Vegas where they had picked up the meth.
• A Florida man pleaded guilty on Sept. 9 to trafficking charges after a traffic stop west of Billings led to 78 pounds of meth being seized from his vehicle, which had been rented in Las Vegas, NV.

DEA launched Operation Crystal Shield on Feb. 20, 2020, after identifying nine major methamphetamine trafficking hubs: Atlanta, Dallas, El Paso, Houston, Los Angeles, New Orleans, Phoenix, San Diego, and St. Louis.  Together these nine cities accounted for more than 75 percent of the methamphetamine seized by DEA in 2019.  Under this operation, DEA directed enforcement resources to these cities where methamphetamine is often trafficked in bulk and then distributed across the country, and partnered with other federal, state, and local law enforcement to interdict these shipments and target the transportation networks behind them.  

Operation Crystal Shield leveraged existing DEA initiatives that target major drug trafficking networks, including the Mexican cartels responsible for virtually all of methamphetamine trafficked into and within the United States.  From FY 2017 to FY 2019, DEA domestic seizures of methamphetamine increased 127 percent from 49,507 pounds to 112,146 pounds.  During the same timeframe, the number of DEA arrests related to methamphetamine increased by nearly 20 percent. 

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BILLINGS – A Florida man today admitted a drug trafficking crime after the Montana Highway Patrol seized 78 pounds of nearly pure methamphetamine, which is more than a quarter of a million doses, during a traffic stop near Columbus, U.S. Attorney Kurt Alme said.

Nichols James Imhoff, 30, of Cape Coral, FL, pleaded guilty to possession with intent to distribute meth. Imhoff faces a minimum mandatory 10 years in prison, a $10 million fine and at least five years of supervised release.

U.S. Magistrate Judge Timothy J. Cavan presided. Imhoff was detained pending further proceedings. Sentencing will be set by U.S. District Judge Dana L. Christensen.

The prosecution said in court documents that on Feb. 11, a Montana Highway Patrol trooper stopped an eastbound Dodge Caravan for speeding on Interstate 90 near Columbus. Imhoff, the driver, provided a Florida driver's license, a rental contract for the vehicle from Las Vegas, NV, and told the trooper he was headed back to work in the oilfields in North Dakota. Imhoff's explanations and other observations led the trooper to suspect Imhoff was transporting drugs.

The trooper deployed his canine on the vehicle, and the dog alerted to the presence of drugs. Imhoff's vehicle was impounded in Columbus, and the officer obtained a Montana search warrant. During a search of the vehicle, officers seized about 78 pound of meth, which is the equivalent of 282,672 doses. The meth was located under a floor storage compartment in the second seat area and was in white plastic garbage bags. Some of the meth was packaged in vacuum sealed plastic bags and some was wrapped in gray duct tape. An analysis by a Drug Enforcement Administration lab determined the meth was 98 percent pure.

Assistant U.S. Attorney Julie Patten is prosecuting the case, which was investigated by the Drug Enforcement Administration and the Montana Highway Patrol.

This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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WASHINGTON – The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) this week announced $4.5 million in grants for the Law Enforcement Mental Health and Wellness Act Program. The Montana Department of Justice will receive $84,342 for its Peer Support Project.

These program funds are used to improve the delivery of and access to mental health and wellness services for law enforcement through training and technical assistance, demonstration projects, implementation of promising practices related to peer mentoring mental health and wellness, and suicide prevention programs.

"Every day, our law enforcement officers put themselves at risk to keep us safe. Now, the job is even more challenging with officers facing potential exposure to COVID-19 while dealing with increasing violent crime. I want to thank our law enforcement officers, deputies, agents and troopers for their hard work, and I am pleased Montana will receive this funding to help keep them healthy and well," U.S. Attorney Kurt Alme said today.

“Good mental and psychological health is just as essential as good physical health for law enforcement officers to be effective in keeping our communities safe from crime and violence,” Montana Attorney General Tim Fox said.  “This grant will enable Montana’s law enforcement agencies to provide a safe environment for officers to talk about mental health challenges they may be facing and receive immediate assistance thanks to the Peer Support Project.”

"As a law enforcement professional with over 50 years of experience, I know firsthand the pressures that accompany this most noble profession,” said COPS Office Director Phil Keith.  “This Department of Justice is committed to protecting the health and wellness of a police department’s most valuable asset – the men and women that leave their homes every day with a mission to protect and serve.  The grants announced today will provide departments with key mental health and wellness services.”    

As part of the Law Enforcement Mental Health and Wellness Act of 2017, Congress authorized the COPS Office to establish peer mentoring mental health and wellness pilot programs within state, tribal, and local law enforcement agencies.  The 41 awards announced today meet the goals of the 2017 Act and support the Department of Justice and the Administration’s commitment to law enforcement.  The full list of awards is available here: https://cops.usdoj.gov/pdf/2020AwardDocs/lemhwa/Award_List.pdf.  

In addition to the grants announced today, the COPS Office recently published two reports regarding officer mental health and wellness.  Those reports are available here:

• Law Enforcement Mental Health and Wellness Act Report to Congress
• Law Enforcement Mental Health and Wellness Programs: Eleven Case Studies

The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide.  Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance.  For more information, please visit: https://cops.usdoj.gov/. 

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MISSOULA — A Spokane, WA, man who admitted possessing firearms while trafficking methamphetamine after law enforcement officers found the items in his backpack was sentenced today to 12 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.

Lance Howard Garett, 42, pleaded guilty in April to possession with intent to distribute meth and to possession of a firearm in furtherance of a drug trafficking crime.

U.S. District Judge Donald W. Molloy presided.

The prosecution said in court documents filed in the case that on Sept. 21, 2019 in Granite County, a Montana Highway Patrol officer searched Garett's backpack after a vehicle pursuit of a motorcycle driven by Garett. In Garett's backpack were two handguns, meth and heroin. Garett admitted to law enforcement that he had fled because he possessed the guns and drugs.

Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Drug Enforcement Administration and the Montana Highway Patrol.

This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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BILLINGS — The Department of Justice is advising the public of an imposter scam in which persons claiming to represent the department are calling individuals and appear to be targeting the elderly.

The Office of Justice Programs’ Office for Victims of Crime (OVC) has received multiple reports of the imposter scam, and the DOJ strongly encourages the public to remain vigilant and not to provide personal information during these calls.

Reports to the National Elder Fraud Hotline indicate these scammers falsely represent themselves as Department of Justice investigators or employees and attempt to obtain personal information from the call recipient, or they leave a voicemail with a return phone number. The return phone number directs users to a recorded menu that matches the recorded menu for the department’s main phone number. Eventually, the user reaches an “operator” who steers the user to someone claiming to be an investigator. That “investigator” then attempts to gain the user’s personal information.

"Exploiting the elderly for financial gain through such scams is a crime, and posing as DOJ employees makes it even more despicable because it undermines the public's trust in the department. I urge everyone to independently verify the identity of a caller before giving any personal information. An investigating agent will never request financial information," U.S. Attorney Kurt Alme said.

“Phone scams are an ugly and pervasive act of victimization. The scams being reported to our National Elder Fraud Hotline are especially heinous because they show the perpetrators are preying upon one of the most vulnerable segments of our society – the elderly. The first step to identifying these criminals is to have their crimes reported,” said OVC Director Jessica Hart.

Those who receive these calls are encouraged not to provide personal information and to report these scams to the FTC via their website or by calling 877–FTC–HELP (877)382-4357.

The National Elder Fraud Hotline is a resource created by OVC for people to report fraud against anyone age 60 or older. Reporting certain financial losses due to fraud as soon as possible, and within the first 2–3 days, can increase the likelihood of recovering losses.

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The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:

Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Sept. 1 was:

Martin Shane Waddingham, 46, of Billings, on charges of possession with intent to distribute methamphetamine and prohibited person in possession of a firearm. If convicted of the most serious crime, Waddingham faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Waddingham was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-102.

Courage Dane DeCrane, 20, of Pryor, on charges of aggravated sexual abuse and abusive sexual contact. If convicted of the most serious crime, DeCrane faces life in prison, a $250,000 fine and at least five years to life in prison. DeCrane was detained pending further proceedings. The FBI investigated the case. Pacer case reference. 20-16.

Destiny Nilsen, 27, of Billings, on charges of receipt of a firearm by a person under indictment. If convicted of the most serious crime, Nilsen faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Nilsen was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-98.

Appearing on Sept. 3 was:

Courtney Nicole Lienemann, 31, of Billings, on charges of possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Lienemann faces a maximum 20 years in prison, a $1 million fine and three years of supervise release. Lienemann was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-94.

Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Sept. 1 was:

Jose Manuel Villalobos Medina, 25, of Phoenix, AZ, on charges of possession with intent to distribute meth, heroin and fentanyl. If convicted of the most serious crime, Medina faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Medina was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department investigated the case. Pacer case reference. 20-41.

John Michael Dunne, 31, of Deer Lodge, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Dunne faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Dunne was detained pending further proceedings. The Deer Lodge Police Department, Montana Probation and Parole and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-19.

Harry B. Azure, 20, Wolf Point, on charges of assault resulting in serious bodily injury. If convicted of the most serious crime, Azure faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Azure was detained pending further proceedings. Fort Peck Law Enforcement and the FBI investigated the case. Pacer case reference. 20-58.

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.

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

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GREAT FALLS – A former U. S. Postal Service worker who admitted going through mail and stealing cash and gift cards from envelopes was sentenced on Sept. 3 to two years of probation, fined $1,000 and ordered to pay $2,065 restitution, U.S. Attorney Kurt Alme said today.

Amanda Holland, 38, of Sunburst, pleaded guilty in May to theft of mail by a postal employee and destruction of mail by a postal employee.

Chief U.S. District Judge Brian M. Morris presided.

In court documents filed in the case, the prosecution said that Holland began working in January 2017 for the U.S. Postal Service as a part-time employee in the Sweet Grass and Sunburst post offices, where she assisted customers, processed money orders and sorted mail for delivery. In early 2019, the Postal Service received several reports from individuals indicating that cash and greeting cards sent through the Sweet Grass office did not reach their destinations. Some individuals reported that the envelopes were delivered but that they had been torn open and resealed and were missing cash.

An investigation using test mailings with envelopes containing gift cards and surveillance cameras led to Holland. The gift cards were redeemed to buy jewelry, clothes and candy, and the cameras showed Holland acting suspiciously while working, including placing mail in her apron and cash in a personal bag.

When interviewed by law enforcement, Holland initially denied knowing anything about the mail thefts but then admitted to taking money about three to four times a week, including stealing $30 that day prior to the interview. Holland told law enforcement she would target what appeared to be holiday or birthday cards, open and take items of value, attempt to reseal the envelopes and throw them away if she could not.

Assistant U.S. Attorney Karla Painter prosecuted the case, which was investigated the U.S. Postal Service Office of Inspector General.

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HELENA — A Helena man who admitted possessing five firearms and ammunition after having been convicted of a felony was sentenced today to 51 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.

Colter Joseph Epler, 40, pleaded guilty in June to prohibited person in possession of firearms and ammunition.

U.S. District Judge Sam E. Haddon presided.

In court documents filed in the case, the prosecution said that on June 24, 2019, Epler, a convicted felon on state supervision, possessed five firearms and ammunition at his residence. During a search of Epler's residence by Montana Probation and Parole officers after Epler admitted using alcohol, officers found a firearm in his hamper and four firearms in his garage, along with ammunition of various calibers. Epler was convicted of a felony in Lewis and Clark County in 2013 and was prohibited from possessing firearms and ammunition.

Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Montana Department of Corrections--Probation and Parole Office.

This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.

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GREAT FALLS —A Box Elder man who admitted possessing a firearm while dealing methamphetamine on the Rocky Boy's Indian Reservation was sentenced today to 11 years and six months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.

Issac Elias Saenz, 28, pleaded guilty in December to possession with intent to distribute meth and to possession of a firearm in furtherance of a drug trafficking crime.

Chief U.S. District Judge Brian M. Morris presided.

The prosecution said in court documents that in January 2018, a Rocky Boy's criminal investigator observed a vehicle, which had been reported stolen from Billings, at a residence on the reservation. The investigator saw the vehicle leave the residence, made a traffic stop and detained the driver and Saenz, who was a passenger in the front seat. Law enforcement executed a search warrant on the vehicle and found multiple bags containing a total of 60 grams of meth and a firearm under the front passenger seat. A DNA test determined there was a high likelihood that Saenz's DNA and the DNA of three unknown individuals were on the firearm. The investigation also determined that Saenz trafficked meth in Missoula County and near Box Elder in Hill County.

Assistant U.S. Attorney Cassady Adams prosecuted the case, which was investigated by the FBI, Chippewa Cree Law Enforcement Services, the Tri-Agency Drug Task Force, and the Rocky Boy's Drug Task Force.

This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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BILLINGS – Violent crime in Yellowstone County has increased significantly since COVID-19 appeared in Montana, a trend law enforcement attribute to methamphetamine and domestic violence, federal and local law enforcement officials announced today.

Yellowstone County has had 67 more victims of murder, robbery and aggravated assault this year for the months March through July than there were for the same period in the previous year, almost a 21 percent increase. The crimes include eight murders, more than occurred in all of 2019, along with numerous non-fatal shooting and stabbings. Robberies have also increased 44 percent.

U.S. Attorney Kurt Alme, Yellowstone County Attorney Scott Twito, Yellowstone County Sheriff Mike Linder and Billings Police Chief Rich St. John discussed the increasing violence during a press conference on the Yellowstone County Courthouse Lawn.

“Those who push meth will be caught and prosecuted to the full extent of the law. In addition, those with a firearm after committing domestic violence or receiving a restraining order will be prosecuted federally. I want to thank our federal, state and local law enforcement for confronting this violence in spite of risks from COVID, and our prosecutors and staff for their hard work during this time. Now more than ever, I also urge our community to support our crisis and drug treatment services through Yellowstone Substance Abuse Connect,” U.S. Attorney Kurt Alme said.

"Despite the efforts of our law enforcement we continue to see an increase in violent crime in Billings and Yellowstone County.  COVID has added tremendous amounts of stress to this community, including the criminal justice system.  We need the public's help. Please watch out for your neighbor, and if you see a crime, report it immediately," Yellowstone County Attorney Scott Twito said.

“Since before the onset of COVID, we have seen a steady uptick in violent crime.  Now that COVID has fully affected life in Billings, we continue to see increases, especially in domestic assault and weapons cases.  There have been eight murders from March through July. And there was one murder in August. Most all of the homicides have one common denominator, methamphetamine.  It continues to drive crime in Billings.  We remain committed to work with our partners to aggressively pursue, investigate, and arrest offenders.  COVID is a distraction, but it will not deter us from the very important work of keeping the community safe," Billings Police Chief Rich St. John said.

 “Our jail may be crowded, but we will always make room for those who belong in jail," Yellowstone County Sheriff Mike Linder said. "I would just like to remind everyone that the Yellowstone County Detention Facility is open for business. Law enforcement officers in our community remain committed to investigating, arresting and prosecuting the violent criminals in our community. This would include those who continue to sell the drugs that are plaguing our community," Sheriff Linder added.

The law enforcement officials explained that both meth dealing and use have contributed to the increase in violent crime. A July report by Millennium Health showed that since March, positive meth urinalysis tests in Montana have increased almost 34 percent. The nationwide increase for positive meth tests is almost 20 percent. The report also found that nearly half of all Americans believe COVID-19 is harming their mental health.

In response to previous increases in meth-related violent crime in Yellowstone County, in 2018, the U.S. Attorney’s Office, together with federal, state, and local law enforcement reinvigorated Project Safe Neighborhoods (PSN), a U.S. Department of Justice initiative to reduce violent crime.

Since PSN began in Yellowstone County, 270 individuals have been charged with meth distribution, armed robbery and firearms offenses in federal court, 333 pounds of meth and 343 firearms have been seized, including 78 semi-automatic rifles.  In addition, the U.S. Marshal’s Service’s Violent Offender Task Force has arrested 1,334 offenders through July.

The officials also urged support for expanding drug prevention and treatment programs through the community plan created earlier this year by Yellowstone Substance Abuse Connect, a coalition of non-profit and governmental organizations working to reduce the demand for meth.

PSN Yellowstone County’s partners include the U.S. Attorney’s Office; Yellowstone County Attorney’s Office; Montana Department of Justice’s Prosecution Services Division, Highway Patrol and the Division of Criminal Investigation; Montana Department of Correction’s Adult Probation and Parole Division; Billings and Laurel police departments; Yellowstone County Sheriff’s Office; Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; Homeland Security Investigations and U.S. Marshal’s Service.

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The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:

Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 25 was:

Jimmie Lee Singleton, 60, of Livingston, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Singleton faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Singleton was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-79.

Tanya Smith, 44, of Laurel, on charges of theft of government property, false statements to a government agency and Social Security fraud-concealment. If convicted of the most serious crime, Smith faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Smith was released pending further proceedings. The Social Security Administration investigated the case. Pacer case reference. 20-81.

Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Aug. 25 was:

Nathaniel Vincent Long, 41, of Missoula, on charges of possession with intent to distribute controlled substances and drug user in possession of a firearm. If convicted of the most serious crime, Long faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Long was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-35.

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.

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

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BILLINGS — A Billings woman who admitted heading a large methamphetamine distribution ring after investigators seized six pounds of the drug at her home and another location was sentenced today to eight years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.

Jamie Juwann Ady, 42, also known as Jamie Ady Alatorre, pleaded guilty in October to possession with intent to distribute meth.

U.S. District Judge Susan P. Watters presided.

The prosecution said in court documents that in November 2018, agents with the Eastern Montana High Intensity Drug Trafficking Area Task Force identified a large-scale meth trafficking organization that was bringing meth into Montana. Ady headed this organization and worked with other co-conspirators.

Agents executed a search warrant on Ady's residence and a secondary location in Laurel where Ady stored some of the drugs and seized approximately six pounds of meth. Ady admitted in an interview to being a meth distributor and said that she and another person had just returned from Las Vegas and Phoenix where they picked up four bundles of meth, each containing about 1.5 pounds, from a source. Six pounds of meth is the equivalent of about 21,744 doses.

Assistant U.S. Attorney Colin Rubich investigated the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and FBI Western Transnational Organized Crime Task Force.

This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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MISSOULA — A California man who admitted blackmailing an individual for years by threatening to inform on the person if he wasn't paid money was sentenced today  to five years of probation, U.S. Attorney Kurt Alme said.

Bryan Gregg Waterfield Nash, 57, of Woodside, CA, pleaded guilty in May to blackmail, a misdemeanor.

U.S. Magistrate Judge Kathleen L. DeSoto presided.

The prosecution said in court documents that the blackmail began in December 2013 and ran until about June 2019 in Whitefish and in northern California. Nash knew the victim, identified as John Doe 1, for many years. Beginning in about December 2013, Nash frequently communicated with John Doe 1 in person and electronically and with his family, friends and colleagues.

Nash demanded money from John Doe 1, accused the victim of committing federal crimes, including tax fraud, and repeatedly asked for financial assistance.

When John Doe 1 stopped responding to Nash, Nash intensified communications with the victim's family, friends, employees and privately-retained lawyers. Many of the messages referenced the victim being investigated by the IRS or FBI, and Nash repeatedly asked to meet with the victim's lawyers to "settle" with the victim. Nash's requests to settle with John Doe 1 were in consideration for not filing a civil complaint against the victim or reporting his alleged crimes to law enforcement.

Assistant U.S. Attorneys Tim Racicot and Ryan Weldon prosecuted the case, which was investigated by the FBI.

XXX

The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:

Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Aug. 17 was:

Jarod Barton Schwab, 33, of Missoula, on charges of possession with intent to distribute controlled substances and distribution of methamphetamine. If convicted of the most serious crime, Schwab faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Schwab was detained pending further proceedings. The FBI, Missoula Police Department and Northwest Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 20-34.

Appearing on Aug. 20 was:

Krystal Ann Bouldin, 47, of Missoula, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Bouldin faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. Bouldin was released pending further proceedings. The FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-33.

Dylan Cole Martin, 23, of Bozeman, on charges of conspiracy to distribute fentanyl and distribution of fentanyl. If convicted of the most serious crime, Martin faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Martin was released pending further proceedings. The Missouri River Drug Task Force, Montana Department of Criminal Investigation, FBI and Drug Enforcement Administration investigated the case. Pacer case reference. 20-17.

Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 20 was:

Donald Ray Gardner, 57, of Lodge Grass, on charges of aggravated sexual abuse of a child and abusive sexual contact. If convicted of the most serious crime, Gardner faces a maximum life in prison, a $250,000 fine and five years to life of supervised release. Gardner was released pending further proceedings. The FBI investigated the case. Pacer case reference. 20-70.

Darrell Dean Fisher, 35, of Lame Deer, on charges of assault resulting in serious bodily injury of a dating partner and strangulation. If convicted of the most serious crime, Fisher faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Fisher was released pending further proceedings. The FBI investigated the case. Pacer case reference. 20-71.

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.

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

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BILLINGS — A Billings man who admitted stealing a firearm from a vehicle was sentenced today to 63 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said. He also was sentenced to a concurrent 18 months in prison for violating the terms of his release on a previous federal conviction.

Dustin Neal Saksa, 36, pleaded guilty in February to being a prohibited person in possession a firearm. He also admitted to violating the terms of his supervised release. 

U.S. District Judge Susan P. Watters presided.

The prosecution presented evidence in court records that Saksa was involved in an
April 2017 theft of a semi-automatic firearm and a purse with credit cards from an unlocked truck. Law enforcement officers responded to businesses in Billings where one of the stolen credit cards was used or attempted to be used. The investigation led officers to a witness who provided information about Saksa going into the victim's vehicle. The stolen firearm was recovered about a month later. Saksa was prohibited from possessing a firearm because of a previous felony conviction.

Assistant U.S. Attorney Zeno Baucus prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.

XXX

BILLINGS — A Billings woman who admitted having five firearms while trafficking methamphetamine in the community was sentenced today to eight years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.

Amber Lynn Lanphear, 35, pleaded guilty in February to conspiracy to possess with intent to distribute meth and to possession of a firearm in furtherance of a drug trafficking crime.

U.S. District Judge Susan Watters presided.

The prosecution said in court documents that law enforcement received information in 2018 that Lanphear was an armed drug trafficker in Billings and was bringing large amounts of meth to Billings from Colorado. Officers began surveilling Lanphear's movements, and in December 2018, saw her leave her residence in a vehicle and make several short stops and meet with unidentified individuals. In addition, Lanphear used a social media account to send messages in January 2019 saying she was taking "pre-orders" and "heading south." One message included a photograph of what appeared to be a large crystal of meth. Law enforcement learned about a drug run in which Lanphear returned from Colorado on Jan. 19, 2019. Officers executed a search warrant on Lanphear's residence on Jan. 22, 2019 and found a total of five firearms in her residence and vehicle and about 32 grams of pure meth.

Assistant U.S. Attorney Karla Painter prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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GREAT FALLS — A Great Falls man who admitted trafficking methamphetamine after agents found more than five pounds of the drug at his residence was sentenced today to six years and eight months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.

Tony Ray Sangrey, 35, pleaded guilty in April to possession with intent to distribute meth.

Chief U.S. District Judge Brian M. Morris presided.

The prosecution said in court documents that in May 2019, Drug Enforcement Administration agents in Bakersfield, CA, contacted DEA agents in Montana with information that a California man was bringing pounds of meth to Great Falls. The Montana agents also learned that the meth was likely destined for Sangrey's residence.

The investigation determined that a meth shipment should have arrived at Sangrey's home in a black BMW. Great Falls police immediately went to Sangrey's home and saw a black BMW parked near the garage. Officers informed Sangrey they were securing the residence and getting a search warrant.

During a search of the garage, officers found a small room labeled "man cave." Inside this room, detectives found a safe and a computer used to monitor the exterior surveillance system on the house and garage. The safe contained a dozen pre-packaged bags of meth that totaled nearly one pound. In the BMW, officers found five heat-sealed bags of meth weighing almost five pounds. The total amount of meth seized was the equivalent of about 20,294 doses. Sangrey acknowledged to officers that he began dealing meth in the summer of 2018.

Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the DEA, Russell Country Drug Task Force and the Great Falls Police Department.

This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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GREAT FALLS — A Great Falls man who admitted selling multiple drugs in the Great Falls area was sentenced today to 54 months in prison and four years of supervised release, U.S. Attorney Kurt Alme said.

Gabriel Louis Norlin, 30, pleaded guilty in March to possession with intent to distribute controlled substances.

Chief U.S. District Judge Brian Morris presided.

In court documents filed in the case, the prosecution said that in September 2019, Russell Country Drug Task Force officers received information that Norlin was selling cocaine and heroin and that he was traveling to California to pick up narcotics for redistribution in Montana. In October 2019, law enforcement officers stopped and seized a truck Norlin was driving near Four Corners, towed it to Belgrade and conducted a search. Law enforcement officers found numerous bags of drugs, including two bags totaling about two pounds of cocaine. Two pounds of cocaine is the equivalent of about 7,610 doses. Norlin admitted later to detectives that he had been selling cocaine, methamphetamine and heroin.

Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the Drug Enforcement Administration and the Russell Country Drug Task Force.

This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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BILLINGS – A Lodge Grass man today admitted strangled his girlfriend during an assault last year at her residence on the Crow Indian Reservation, U.S. Attorney Kurt Alme said.

Augustus Christopher Wolfblack, also known as Augustus Christopher Flatmouth, 19, pleaded guilty to assault by strangulation of a dating partner. Wolfblack faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.

U.S. Magistrate Judge Timothy J. Cavan presided. Wolfblack was released pending further proceedings.

In court documents filed in the case, the prosecution said Wolfblack assaulted the victim on Sept. 15, 2019 at her residence in Lodge Grass. Wolfblack struck the victim with his fists, put her in a headlock and strangled her. After the assault, Wolfblack left and the victim sought help from relatives. Bureau of Indian Affairs law enforcement officers interviewed the victim, who was treated at the Indian Health Service in Crow Agency for injuries. When interviewed, Wolfblack initially denied assaulting the victim except to say he grabbed her arm after she hit him in the head. After being pressed, Wolfblack admitted he had hit the victim with his fists, pushed and shoved her and held her up against a wall by putting his hand around her neck, although he claimed that he did not squeeze her neck.

Assistant U.S. Attorney Lori Suek is prosecuting the case, which was investigated by the FBI.

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MISSOULA – A Plains man accused of making and transporting child pornography videos pleaded guilty to charges today, U.S. Attorney Kurt Alme said.

David Paul Farrar, 58, pleaded guilty to sexual exploitation of a child and transportation of child pornography. Farrar faces a minimum mandatory 15 years to 30 years in prison, a $250,000 fine and a minimum mandatory five years to life of supervised release on the sexual exploitation count and a minimum mandatory five years to 20 years in prison, a $250,000 fine and at least five years to life of supervised release on the transportation of child pornography count.

U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing has been set for November 20, 2020 in Missoula.  Farrar is s detained pending further proceedings.

In court documents filed in the case, the prosecution said that while Farrar was away in Idaho in June 2019, he allowed a friend to stay at his home in Plains. The friend viewed electronic storage cards found in Farrar's house and saw that they contained sexually explicit photographs of a female child. The friend reported her findings to law enforcement.

An agent with Homeland Security Investigations obtained a search warrant for Farrar's residence and seized multiple computers and electronic storage devices. An analysis of the items seized determined they contained video files of the victim and were created sometime in 2013 or 2014. The videos were created using a cell phone or digital camera and contained lewd and lascivious images of the victim. Agents determined Farrar created the videos because the viewer can see his hand and hear his voice. Farrar also admitted to agents that he created the videos of the victim.

Agents also found a video of two other minor girls that contain lewd and lascivious images. The investigation determined that Farrar electronically transferred that video to a file on one of his computers.

Assistant U.S. Attorney Cyndee Peterson is prosecuting the case, which was investigated by HSI.

This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.

GREAT FALLS – A man accused of leading a large methamphetamine and heroin trafficking ring and distributing drugs from a Great Falls pre-release center was sentenced today to 160 months in prison followed by 5 years supervised release, U.S. Attorney Kurt Alme said.

Anthony Joseph Beltran, 45, who lived at a Great Falls pre-release center, pleaded guilty in March to possession with intent to distribute controlled substances and to obstruction of justice by retaliating against a witness.

Chief U.S. District Judge Brian M. Morris presided. Judge Morris also ordered Beltran to forfeit four vehicles, an RV and $47,824 in currency.

The prosecution said in court records that law enforcement began investigating a meth and heroin distribution ring in Great Falls in September 2018. Agents learned that Beltran supplied a significant amount of drugs that came from California to others, including convicted co-defendants Jacqueline Kirkaldie and David Awberry, for redistribution. Kirkaldie was sentenced to 11 years and four months in prison, while Awberry was sentenced to 10 years in prison.

Beltran, who was distributing meth and heroin while living at the pre-release center, also maintained a safe with drugs, cash and firearms at a local residence and had a storage unit.

During the investigation, detectives served a search warrant on the house where Beltran stored drugs and found about 4.8 pounds of methamphetamine. The amount of meth seized from the home is the equivalent of about 17,395 doses.

In a search of the storage unit, detectives found 31 firearms, most of which had been stolen from residences in Cascade County.

Beltran was arrested on April 3, 2019 and held at the Cascade County Detention Center. On April 22, 2019, detectives learned that the entire sealed criminal complaint filed against Beltran and his co-defendants had been published on Facebook pages and that its publication appeared to be an implicit threat against anyone who had provided law enforcement information about Beltran’s drug activities. Investigators linked the Facebook pages to Beltran, who in jail calls referred to funneling the paperwork out of the jail for posting on Facebook.

Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the Drug Enforcement Administration, Great Falls Police Department, Russell Country Drug Task Force and the Cascade County Sheriff’s Office.

The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:

Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on July 27 was:

Danielle Marie Marceau, aka Danielle Marie ComesAtNight, 34, on charges of second degree murder. If convicted of the most serious crime, Marceau faces a maximum life in prison, a $250,000 fine and five years of supervised release. Marceau was detained pending further proceedings. The FBI, Blackfeet Law Enforcement Services and Great Falls Police Department investigated the case. Pacer case reference. 20-51.

Appearing on July 28 was:

Carlyle Ray Wells, 25, of Great Falls, on charges of theft from a firearms licensee, possession of stolen gun or ammunition and unlawful drug user in possession of a firearm. If convicted of the most serious crime, Wells faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Wells was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and Great Falls Police Department investigated the case. Pacer case reference. 20-46.

Chance Justin Redstone, aka CJ Redstone, 35, of Wolf Point, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious crime, Redstone faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. The FBI and Fort Peck Criminal Investigation investigated the case. Pacer case reference. 20-39.

Maynard Joseph White Bear, 67, of Fort Kipp, on charges of involuntary manslaughter. If convicted of the most serious crime, White Bear faces a maximum eight years in prison, a $250,000 fine and three years of supervised release. White Bear was released pending further proceedings. The FBI and Fort Peck Criminal Investigation investigated the case. Pacer case reference. 20-42.

Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on July 30 was:

Matthew Anthony Marshall, 49, of Whitefish, on charges of wire fraud, money laundering and tax evasion. If convicted of the most serious crime, Marshall faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. Marshall was released pending further proceedings. The FBI and IRS investigated the case. Pacer case reference. 20-32.

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.

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

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MISSOULA – An Ennis pharmacist accused of diverting opioids today admitted to unlawfully dispensing an opioid and obtaining personal opioid prescriptions by fraud or forgery, U.S. Attorney Kurt Alme said.   

Bradley John Stoick, 70, of Hailey, Idaho, pleaded guilty to dispensing a controlled substance by a practitioner and to acquiring or obtaining a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge.  Stoick faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release.   

U.S. Magistrate Judge Kathleen L. DeSoto presided. Stoick was released pending further proceedings. Sentencing was set for Nov. 19.

"It is critical that pharmacists and other licensed providers comply with the law when dispensing all drugs, especially opioids. When a health care professional, like Mr. Stoick, abuses his position to divert and steal opioids, he will be prosecuted," U.S. Attorney Alme said.

The prosecution said in court records that Stoick was the pharmacist-in-charge of Ennis Pharmacy in Ennis.  In 2019, Drug Enforcement Administration investigators conducted a routine administrative inspection of Ennis Pharmacy and discovered numerous prescriptions for Stoick for Norco 10-325mg, a drug which contains Hydrocodone, a powerful opioid and a Schedule II controlled substance.  Stoick filled those prescriptions for himself as the on-duty pharmacist.  The doctor whose name and signature were on those prescriptions never saw Stoick as a patient and did not issue any of those prescriptions. 

In addition, computer records at the pharmacy showed that Stoick altered a prescription for a friend.  He modified the strength of the prescription from Norco 5-325mg up to Norco 10-325mg, which contains twice as much Hydrocodone.  He also increased the amount of the prescription from 45 pills to 120 pills.  Stoick then filled the prescription himself and mailed it to his friend in Utah. 

In a separate civil case settled earlier this month, Ennis Pharmacy agreed to pay a $125,000 fine and make several changes to its operating procedures. 

Assistant U.S. Attorney Michael A. Kakuk is prosecuting the case, which was investigated by the DEA. 

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BILLINGS — A man who admitted injuring a woman by hitting and punching  her during a fight in Lame Deer in 2017 was sentenced today to six months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.

Frank Brent Flying, Sr., 38, of Lame Deer, pleaded guilty in November to assault resulting in substantial bodily injury.

U.S. District Judge Susan P. Watters presided.

In court records filed in the case, the prosecution said that the assault occurred during an argument on Dec. 28, 2017 at a residence in Lame Deer on the Northern Cheyenne Indian Reservation. Flying punched the victim multiple times in the face and strangled her. The victim was treated for substantial injuries.

Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI.

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BILLINGS – A Busby man who admitted striking a woman with a baseball bat and his fists last year on the Northern Cheyenne Indian Reservation was sentenced today to three years and 10 months in prison and three years of supervised release, U.S. Attorney Kurt Alme said.

Chase Woodenlegs, 30, pleaded guilty in February to assault resulting in serious bodily injury.

U.S. District Judge Susan P. Watters presided.

In court records filed in the case, the prosecution said the assault happened on July 23, 2019 at a Busby residence. Woodenlegs hit the victim with his fists and a baseball bat. He also strangled the victim. After the assault, Woodenlegs fled the area. The victim was treated for multiple injuries.

Assistant U.S. Attorney Bryan Dake is prosecuting the case, which was investigated by the FBI.

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BILLINGS – A federal jury on Monday convicted a Moiese man accused of sexually abusing minor girls in Lodge Grass on the Crow Indian Reservation, U.S. Attorney Kurt Alme said.

After a two-day trial, the jury found Jack Preston Coversup, 57, guilty of sexual abuse of a minor and abusive sexual contact.

Coversup faces a maximum 15 years in prison, a $250,000 fine and five years to life of supervised release for sexual abuse of a minor, and a maximum of life in prison, a $250,000 fine and five years to life of supervised release for abusive sexual contact.

U.S. District Judge Susan P. Watters presided and set sentencing for Dec. 10. Coversup was detained pending further proceedings.

"A jury held Mr. Coversup accountable for molesting minor victims over a period of months. Children must be protected from sexual predators, and we will prosecute offenders to the full extent of the law. I want to thank Assistant U.S. Attorneys Tom Godfrey and Lori Suek and the FBI for their hard work in investigating and prosecuting this case," U.S. Attorney Alme said.

During trial, the prosecution presented evidence that Coversup had sexually molested three minor girls in a Lodge Grass residence from about December 2015 to February 2016. The victims were under the age of 16. Coversup sexually molested the victims by touching their bodies over and under their clothing.

Assistant U.S. Attorneys Tom Godfrey and Lori Suek prosecuted the case, which was investigated by the FBI.

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The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:

Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on July 20 was:

Kristin Alise Smith, 43, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Smith faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Smith was detained pending further proceedings. The FBI Western Transnational Organized Crime Task Force investigated the case. Pacer case reference. 20-80.

Mark Stephen Best, 60, of Billings, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Best faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least five years of supervised release. Best was detained pending further proceedings. Pacer case reference. 20-67.

Appearing on July 21 was:

Lisa Ann Emmett, 34, of Billings, and Anthony Scott Walker, 40, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Emmett and Walker face minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Emmett and Walker were released pending further proceedings. The Drug Enforcement Administration investigated the case. Pacer case reference. 20-53.

Drew Hochhalter, 37, of Hardin, on charges of distribution of methamphetamine. If convicted of the most serious crime, Hochhalter faces a maximum 20 years in prison, a $1 million fine and at least three years of supervised release. Hochhalter was released pending further proceedings. The Drug Enforcement Administration investigated the case. Pacer case reference. 20-54.

Chase Everett Sexton, 30, of Billings, on charges of false statement during firearms transaction. If convicted of the most serious crime, Sexton faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Sexton was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-63.

Sean Evan Thomas Bad Bear, 28, of Billings, on charges of assault by strangulation of an intimate partner and dating partner. If convicted of the most serious crime, Bad Bear faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Bad Bear was released pending further proceedings. The FBI investigated the case. Pacer case reference. 20-52.

Appearing on July 23 was:

Robert Joseph Speelman, 48, of Ashland, on charges of possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Speelman faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug count and a minimum mandatory five years to life consecutive to any other sentence on the firearm count. Speelman was detained pending further proceedings. The Bureau of Indian Affairs investigated the case. Pacer case reference. 20-57.

Simon Douglas Stanley, 45, of Miles City, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm. If convicted of the most serious crime, Stanley faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug count and a minimum mandatory five years to life consecutive to any other sentence on the firearm count. Stanley was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-58.

Cody Raymond Hanson, 39, of Billings, and Danielle Leona Dye, 29, of Billings, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Hanson and Dye face a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Hanson and Dye were detained pending further proceedings. The FBI Western Transnational Organized Crime Task Force investigated the case. Pacer case reference. 20-72.

Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on July 21 was:

Christopher Anthony Willis, 41, of Missoula, on charges of false statement in firearm acquisition. If convicted of the most serious crime, Willis faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Willis was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-26.

Justin Patrick Kline, 33, of Bozeman, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Kline faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Kline was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Montana Department of Corrections Probation and Parole. Pacer case reference. 20-12.

Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on July 22 was:

Mitchell Joseph Wright, 40, of Rancho Palos, CA, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Wright faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Wright was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department, U.S. Postal Inspection Service and Lewistown Police Department investigated the case. Pacer case reference. 20-50.

Christopher Michael Stebbins, 53, of Williston, N.D., on charges of conspiracy to possess with intent to distribute meth and attempted possession with intent to distribute meth. If convicted of the most serious crime, Stebbins faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Stebbins was detained pending further proceedings. The FBI and Fort Peck Criminal Investigation investigated the case. Pacer case reference. 20-49.

Austin Lee Pipe Sr., 29, of Wolf Point, on charges of assault with a dangerous weapon and assault resulting in substantial injury to dating partner. If convicted of the most serious crime, Pipe faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Pipe was detained pending further proceedings. The FBI and Fort Peck Criminal Investigation investigated the case. Pacer case reference. 20-48.

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.

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

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BILLINGS— A Billings man convicted of bringing large quantities of methamphetamine to the community and of possessing firearms was sentenced today to 26 years and 10 months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.

After a two-day trial in March, a jury found Maurice Joseph Fregia, 33, guilty of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possessing a firearm in furtherance of a drug trafficking crime.

U.S. District Judge Susan P. Watters presided.

“Fregia's sentencing should put all meth dealers on notice that they face long prison terms if they plan to push this highly addictive drug into our communities and use firearms to further their trade. We will continue to prosecute dealers like Fregia and his co-conspirators to the full extent of the law,” U.S. Attorney Alme said.

The prosecution presented evidence at trial that Fregia, along with co-defendant Chad Beres, headed a large drug trafficking organization that brought large quantities of meth and other drugs into Montana from California. In April 2018, law enforcement officers with the Eastern Montana High Intensity Drug Trafficking Area Task Force served three search warrants on three Billings residences, including a house where Fregia and Beres lived.  Both Fregia and Beres were present during the search. Officers found almost 700 grams of meth, which is about 1.5 pounds and about 5,600 doses, sticking out of a clothes dryer vent, $14,538 in currency, jewelry, including a Rolex watch in Beres’ room, other drugs and various firearms and ammunition. Beres pleaded guilty to charges and was sentenced to 15 years in prison.

During the search of a second residence, occupied by co-defendant Larry Barnett, agents found meth and a handgun. Barnett, who pleaded guilty and was sentenced to seven years in prison, admitted he had received multiple pounds of meth from Fregia and Beres and had seen both men with firearms.

Assistant U.S. Attorneys Colin Rubich and Julie Patten prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force, the FBI and the Billings Police Department.

This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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MISSOULA – A Big Arm man accused of making child pornography videos and sending an image to an undercover agent today pleaded guilty to charges, U.S. Attorney Kurt Alme said.

Billy Dean Smith, 55, pleaded guilty to sexual exploitation of a child. Smith faces a minimum mandatory 15 years to 30 years in prison, a $250,000 fine and five years to life of supervised release.

U.S. District Judge Donald W. Molloy presided and set sentencing for Nov. 6. Smith was detained.

In court documents filed in the case, the prosecution said that in January, an undercover FBI agent was investigating a KIK chat group known to exchange child pornography. KIK is a mobile phone app that allows users to exchange instant messages over the internet. Smith exchanged messages with the undercover agent where he described sexually abusing a girl, who was under the age of 18. Smith sent a sexually explicit image of the girl to the undercover agent. Agents obtained a search warrant for Smith's cell phone, seized it and conducted a forensic analysis of its contents. The forensic examiner located the sexually explicit image of the girl that Smith had sent the agent. The examiner also located other videos and images of the girl. The images were created in January and February using the cell phone. The video contained child pornography of the girl. Smith admitted he had filmed the sexually explicit videos of the girl.

Assistant U.S. Attorney Cyndee Peterson is prosecuting the case, which was investigated by the FBI and the Internet Crimes Against Children Task Force.

This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.

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BILLINGS—A Busby woman convicted of severely neglecting two young children who were in her custody, causing them serious injury, was sentenced today to one year in prison and three years of supervised release, U.S. Attorney Kurt Alme said.

Edith Wolfblack, 60, pleaded guilty in December to two counts of criminal child endangerment.

U.S. District Judge Susan P. Watters presided.

The prosecution said in court records that in October 2018, the Bureau of Indian Affairs Social Services removed two children, who were under the age of 14, from Wolfblack’s home on the Northern Cheyenne Indian Reservation. The children had been placed in Wolfblack’s care in 2013. During the years in Wolfblack’s custody, Wolfblack failed to take the children to doctor’s appointments, many that were meant to address ongoing health issues, thereby inhibiting proper development of the children. Medical records also indicated severe malnutrition and a significant failure to grow. The children were hospitalized after being removed from the home. Since removal, the children have continued to grow and thrive medically.

Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the BIA and FBI.

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BILLINGS – A Glendive man today admitted producing and possessing videos containing images of minors engaged in sexually explicit conduct, U.S. Attorney Kurt Alme said.

Anthony Dwayne Boldt, 44, pleaded guilty to production of child pornography and to possession of child pornography. Boldt faces a minimum mandatory 15 years to 30 years in prison, a $250,000 fine and from five years to life of supervised release.

U.S. Magistrate Judge Timothy J. Cavan presided. Boldt was detained pending further proceedings.

In court documents filed in the case, the prosecution said law enforcement received information in January that Boldt may have been filming sexual activity with a juvenile girl. Law enforcement also received digital storage cards that came from Boldt's residence. The cards contained files confirming the reported activity.

Law enforcement served a search warrant on Boldt's residence and seized multiple items of electronic media. A forensic analysis of the media found videos of the defendant and the victim engaging in sexually explicit conduct in addition to other victims, including prepubescent children, engaging in similar conduct. In an interview with law enforcement, the victim confirmed that she was person depicted with Boldt in many of the videos and that Boldt had sexually assaulted her since about 2014.

Assistant U.S. Attorney Zeno Baucus is prosecuting the case, which was investigated by the FBI.

This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.

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BILLINGS – A Billings man today admitted he strangled his partner during an argument at a residence on the Crow Indian Reservation and also was an habitual domestic assault offender, U.S. Attorney Kurt Alme said.

Leslie Charles Hogan, Jr., 37, pleaded guilty to assault of a dating partner by strangulation and to domestic assault by an habitual offender. Hogan faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release on each crime.

U.S. Magistrate Judge Timothy J. Cavan presided. Hogan was released on conditions pending further proceedings.

The prosecution said in court records that on May 17, 2017, the victim and Hogan, who were in a relationship, were in the victim's residence when the couple got into a verbal argument. The fight turned physical. Hogan pushed and shoved the victim then pushed her up against a wall and strangled her until she was almost unconscious. The assault stopped when another person in the residence struck and pushed Hogan to halt the strangulation.

The victim sought immediate medical attention and experienced pain in her neck and throat. The victim returned to the hospital three days later because she was having problems swallowing.

Hogan has two prior convictions for domestic assault.

Assistant U.S. Attorney Lori Suek is prosecuting the case, which was investigated by the FBI.

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HELENA—A pharmacy in Ennis, Montana settled potential violations of the Controlled Substances Act by agreeing to several substantive changes to its practices and paying a fine of $125,000, U.S. Attorney Kurt Alme said.   

The Ennis Pharmacy and Yesterday’s Soda Fountain, Inc., entered into a civil settlement agreement with the U.S. Attorney’s Office for the District of Montana on July 7, 2020.   The terms of the settlement include that Ennis Pharmacy shall check the criminal history of any potential employee handling controlled substances, and only a registered pharmacist may order Schedule II controlled substances for the pharmacy.  In addition, Ennis Pharmacy will make 11 monthly payments for a total fine of $125,000. 

“Opioid abuse causes tremendous harm in our communities.  It is critical that all pharmacies and other providers follow the rules to be sure that controlled substances are not misused,” said U.S. Attorney Kurt Alme.  “We take very seriously any violations of the Controlled Substances Act, particularly those which could lead to diversion of opioids.” 

The settlement agreement recites that in April, 2019, Drug Enforcement Administration investigators conducted a routine inspection of Ennis Pharmacy.  During that inspection and subsequent investigation, they discovered numerous potential civil violations of the Controlled Substances Act, including:

1. Failing to report at least seven thefts or losses of controlled substances to DEA,
2. Failing to take a proper inventory of its stock of controlled substances,
3. Allowing pharmacy staff to use the owner’s credentials to order controlled substances, and
4. Allowing staff to make manual adjustments to inventory records without proper explanation.

This civil settlement agreement is not an admission of any liability by Ennis Pharmacy, nor a concession by the United States that its potential claims were not well-founded. 

Assistant U.S. Attorney Michael A. Kakuk and former Assistant U.S. Attorney Megan Dishong represented the United States in this matter, which was investigated by the Drug Enforcement Administration. 

BILLINGS – The former president of Custom Carbon Processing, Inc. was sentenced today to 18 months in prison, three years of supervised release and fined $50,000 for his actions related to an explosion that injured three workers at the company’s oil processing plant in Wibaux, U.S. Attorney Kurt Alme said.

A jury in September found Peter Margiotta, 63, of Edmonton, Alberta, Canada, guilty of all three counts in an indictment, including conspiracy, Clean Air Act—general duty and Clean Air Act-knowing endangerment.

U.S. District Judge Susan P. Watters presided. Judge Watters took restitution under advisement and will issue a ruling later. Margiotta was released pending assignment to a federal prison.

“By failing to comply with the law in the construction and operation of a plant that handled hazardous materials, Mr. Margiotta endangered his employees, three of whom were injured in the explosion. Companies doing business in Montana must follow environmental regulations," U.S. Attorney Alme said.

“By knowingly operating an oil processing facility without appropriate safeguards, the defendant endangered workers and the public,” said Bert Marsden, Resident Agent in Charge of the Environmental Protection Agency’s criminal enforcement program.  “Today’s sentencing reflects the egregious nature of the defendant’s actions.”

“Employees expect that their employers prioritize their safety by ensuring adherence to Federal safety regulations. In hazardous material transportation and processing, this expectation is paramount,” stated Cissy McCune, Regional Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General.  “Our work with the U.S. Attorney’s Office and agents from the U.S. Environmental Protection Agency, which resulted in the sentencing of Mr. Margiotta, is a testament to our commitment to protecting the safety of our nation’s transportation workforce.”

“The hard work and dedication of our federal partners to bring justice for victims and hold Mr. Margiotta accountable for his unacceptable actions is to be commended,” said Rita Lucero, Acting Regional Administrator for OSHA’s Denver Region.  “OSHA will continue to collaborate with federal agencies to hold employers accountable if they violate federal workplace safety and health laws that place their employees at risk of serious physical harm and death.”

During a five-day jury trial, the prosecution presented the following evidence:

Margiotta was president and CEO of Custom Carbon Processing, a Wyoming company that constructed the Michels Disposal Well and Oil Reclamation Facility in Wibaux in 2012. The construction was done in ways that allowed extremely hazardous hydrocarbon vapors and air pollutants to be released into the air.

On July 4, 2012, Margiotta directed the opening of the plant before implementing appropriate electrical wiring, ventilation and other safety measures. On that date, the project manager emailed Margiotta: “The control panels must be moved asap with the explosion proof wiring. We also run the risk of killing someone, not only our operators but also customers.”

Margiotta also directed employees to accept shipments of highly volatile and flammable “natural gas condensate” or “drip gas” into the operations in a purported effort to help thin and process the slop oil at the plant.

Margiotta disregarded repeated warnings from the plant’s foreman that the natural gas condensate was not effective in thinning the slop oil and instead was creating a dangerous situation because of its highly volatile and flammable nature. 

On Dec. 29, 2012, the plant accepted a delivery of natural gas condensate. During the offloading of the material, hazardous and flammable vapors from the condensate filled the plant building and spread out the open bay doors where the truck delivering the condensate was located. The vapors reached an ignition source, triggering an explosion that injured three employees and extensively damaged the plant, the truck and trailer involved in the delivery.

This Clean Air Act prosecution was of national significance not only for the extent of the harm caused, but also because it is the first trial conviction under 42 U.S.C. Sec. 7413(c)(5), which imposes increased penalties for anyone who knowingly releases hazardous air pollutants knowing that, at the time of the release, they have put someone in imminent danger of death or serious bodily injury. It is also the first conviction under 42 U.S.C. Sec. 7412(r)(1), which places a general duty on owners/operators of facilities handling extremely hazardous substances to prevent and mitigate the consequences of accidental releases of those substances.

Assistant U.S. Attorney Bryan Dake and Special Assistant U.S. Attorney Eric Nelson prosecuted the case, which was investigated by the Environmental Protection Agency, the U.S. Department of Transportation Office of Inspector General and the Occupational Safety and Health Administration.

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