District of Montana

GREAT FALLS – Hays resident Geneva Nadeau, convicted of sexually abusing and photographing a child, was sentenced today to 22 years in federal prison and to 15 years of supervised release, U.S. Attorney Kurt Alme said.

Nadeau, 38, pleaded guilty earlier to aggravated sexual abuse. 

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

Prosecutors said that in October 2015 in Hays, on the Fort Belknap Indian Reservation, Nadeau sexually abused a child, who was younger than 12, and photographed the abuse. Nadeau was indicted after the Blaine County Sheriff’s Office got a tip that Nadeau had an email address that contained child pornography. Nadeau was arrested on unrelated charges and law enforcement discovered she also had on her tablet child porn images, including the sex abuse of the child.

Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI, Fort Belknap Police Department and the Blaine County Sheriff’s Office.

 

XXX

GREAT FALLS – Poplar resident Dennis Lloyd Red Boy, 28, pleaded guilty today in federal court to involuntary manslaughter for the death of a baby, U.S. Attorney Kurt Alme said.

Red Boy faces a maximum eight years in prison, a $250,000 fine and three years of supervised release.

U.S. District Judge Brian M. Morris presided at the hearing. Morris set sentencing for June 5. Red Boy is detained.

Prosecutors said the evidence would show that on Aug. 15, 2017, Red Boy was taking care of children in Poplar, on the Fort Peck Indian Reservation, when a six-month-old baby would not stop crying. After several interviews with investigators, Red Boy admitted he put the baby on her back, but she would not stop crying. He then flipped her over, with her face into the bed, and put a heavy blanket on her. He returned to find the baby was not breathing and immediately sought help. He acknowledged that his actions were the proximate cause of the baby’s death.

Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the FBI.

 

XXX

 

Great Falls – Former Blackfeet Tribal Chairman Willie Andrew Sharp, who is accused of stealing federal money from the Head Start Program, pleaded not guilty to charges in an indictment today, U.S. Attorney Kurt Alme said.

Sharp, 65, of Browning, pleaded not guilty to theft from an Indian tribal government receiving federal funding and to wire fraud as charged in an indictment. The indictment is merely an accusation. Sharp is presumed innocent until proven guilty.

Sharp appeared for arraignment before U.S. Magistrate Judge John T. Johnston in Great Falls. Johnston released Sharp pending trial.

The case is assigned to U.S. District Judge Brian M. Morris.

Sharp faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the most serious charge. The indictment also is seeking a criminal forfeiture money judgment of $38,711 from Sharp.

The indictment alleges that Sharp, while chairman of the Blackfeet Tribe, ultimately oversaw the Head Start Program and approved and ensured others approved overtime at the Blackfeet Head Start Program, knowing that the overtime was false. In total, individuals at the Blackfeet Head Start Program, including Sharp’s wife, Denise L. Sharp, claimed more than 7,800 hours in overtime and received more than $232,000 in federal funds from the program in a 15-month time period, starting in about April 2013. Denise Sharp pleaded guilty earlier to charges in the case and is awaiting sentencing.

Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the FBI.

Pacer case reference. 19-03.

Progress on the case can be monitored 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.

 

 

XXX

 

The U.S. Attorney’s Office announced that the following persons were arraigned this week before U.S. Magistrate judges and indictments handed down by the Grand Jury were unsealed. Indictments 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 Jan. 29 was:

RYAN MCGUIRE, 37, of Mound House, NV, on charges of conspiracy to distribute methamphetamine and distribution of meth. If convicted of the most serious count, McGuire faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. McGuire was released. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 18-157.

Appearing in Billings before U.S. Magistrate Timothy J. Cavan and pleading not guilty on Jan. 31 was:

ELIZABETH ANN HAZZARD, 33, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute meth. If convicted of the most serious count, Hazzard faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Hazzard was detained. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 18-153.

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.

 

 XXX

GREAT FALLS – Box Elder resident Larry Ray Denny, Jr., admitted a domestic assault charge on Tuesday in federal court, U.S. Attorney Kurt Alme said today.

Denny, 46, pleaded guilty to domestic assault by a habitual offender. Denny faces a maximum five years in prison, a $250,000 fine and three years of supervised release.

U.S. Magisrate Judge John T. Johnston presided at the hearing and recommended Denny's plea be accepted by U.S. District Judge Brian M. Morris, who is hearing the case. Sentencing is set for June 6. Denny was released pending sentencing.

Prosecutors said evidence would show that law enforcement arrived at the victim’s residence on the Rocky Boy’s Indian Reservation on Oct. 15, 2017 and that Denny had hit her. Denny has two prior domestic assault convictions.

Assistant U.S. Attorneys Cassady Adams and Ryan Weldon are prosecuting the case, which was investigated by the FBI and Chippewa Cree Law Enforcement.

 

XXX

GREAT FALLS – A Kalispell man, previously convicted of a felony, was sentenced to more than 10 years in federal prison on Wednesday for illegally possessing firearms and for a multi-million dollar scheme to defraud investors who gave him money for oil and gas leases and art work, U.S. Attorney Kurt Alme said today.

U.S. District Judge Brian M. Morris sentenced John Kevin Moore, also known as Kevin Moore, 62, to a total of 10 years and five months in prison and to three years of supervised release. Judge Morris also ordered $2,222,817 restitution and a $1,926,725 forfeiture.

In the fraud case, a jury convicted Moore in an August 2018 trial on all 21 counts in an indictment, including 11 counts of wire fraud, nine counts of money laundering and one count of false statement to a federal agent.  In the firearms case, Moore pleaded guilty in September 2018 to being a felon in possession of firearms.

 “I want to thank Assistant U.S. Attorneys Ryan Weldon and Timothy Racicot, the FBI, IRS and the Montana Auditor’s Office for putting a stop to Moore’s wide-ranging pyramid scheme that could have continued for years and defrauded many more investors,” U.S. Attorney Alme said.  “Potential investors and the public in general need to know that fraud schemes like this one are not uncommon in Montana and can ruin lives.  We will continue to aggressively prosecute individuals like Moore who scheme to defraud unwitting investors,” Alme said.

“Kevin Moore operated a classic “Ponzi” scheme, gaining the trust of unwitting investors who suffered devastating financial losses,” said Supervisory Senior Resident Agent Rick Shelbourn, of the FBI’s Salt Lake City’s Field Office.  “The FBI acknowledges our law enforcement partners and the cooperation of the tenacious victims who helped bring Moore to justice.  The FBI aggressively investigates fraud schemes like these and urges the public to be aware of investment opportunities that make exaggerated earnings claims.  The public should always exercise due diligence before investing their hard-earned money.”

"Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," said Steven Osborne, IRS Criminal Investigation, Special Agent in Charge, Denver Field Office.  “The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel.  IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime."

Montana’s Commissioner of Securities and Insurance Matt Rosendale, whose office assisted with the fraud case, said, “We were pleased to be able to work with federal authorities to bring John Kevin Moore to justice. I’d like to thank our team at the State Auditor’s office, the U.S. Attorney’s Office, and everyone else for their diligent work in resolving this case.”

In the fraud case, prosecutors presented evidence that Moore set up two companies, Big Sky Mineral Resources, LLC, in 2014, and Glacier Gala, in 2012, and used them to solicit money from investors by purporting to buy oil and gas leases and to buy and sell lucrative art work. Instead, prosecutors presented evidence that Moore used investors’ money to pay off earlier investors and to pay for personal expenses, including payments on multi-million-dollar properties.

To convince investors to give him money and to provide a sense of comfort about their investments, Moore would reference his wealth and connections with influential people, prosecutors said.

Moore received from investors more than $2 million, based on false claims he made regarding the mining of oil and gas and minerals and the sale of art work, prosecutors said.

When seeking money through Big Sky Mineral Resources, Moore claimed the funds would be used to buy leases and for mining activities in Montana and Arizona and that there was little to no risk. The investment would result in large returns in a short time frame, ranging from 30 days to a few months.

Moore gave some investors in Big Sky Mineral Resources checks and instructed them not to cash the checks until a later date, prosecutors said. The checks bounced when various investors attempted to cash their checks.

When soliciting funds for Glacier Gala, Moore represented he could turn a profit by buying, flipping and storing high-end art. When he received investments for Glacier Gala, Moore kept the money, failed to provide the art as promised and failed to return the art in his possession.

Prosecutors also presented evidence that Moore funneled money from Big Sky Mineral Resources through Glacier Gala to make it look like the money originated from the sale of a painting, when in fact, the money came from investors in Big Sky Mineral Resources.

Moore returned some of the money to investors after they raised concerns about the legitimacy of Big Sky Mineral Resources. Other times, rather than return the money, Moore promised to repay investors through alternative means and then failed to do so.

The fraud scheme ran from about April 2013 until September 2016 in Great Falls and Kalispell.

In the firearms case, Moore, having been convicted in 2003 of mail fraud and barred from possessing firearms, possessed numerous firearms in Glasgow, Kalispell and elsewhere from about November 2015 until the spring of 2017.

In a recording with a confidential informant, Moore said, “I have about 200 guns hidden. They can’t touch me being in possession. They just can’t do it.” Moore then showed the informant the firearms, which law enforcement later identified and photographed. The firearms ranged from shotguns to semi-automatic rifles.

Assistant U.S. Attorneys Ryan Weldon and Timothy Racicot prosecuted the cases, which were investigated by the FBI, IRS and the Montana State Auditor.

XXX

GREAT FALLS – Havre resident Charly McLain Rosette was sentenced today to three years in prison and three years of supervised for conspiring to distribute prescription pain pills on the Rocky Boy’s Indian Reservation, U.S. Attorney Kurt Alme said today.

Rosette, 26, pleaded guilty in October to conspiracy to distribute and possess with intent to distribute Oxycodone.

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

Prosecutors presented evidence that Rosette, and two co-defendants, Isaiah Starr Standingrock and Devon Draper, conspired to sell Oxycodone pills on the Rocky Boy’s Reservation in 2017 and 2018. During the investigation, law enforcement used confidential sources to buy pills from Rosette.

A task force agent pulled over Standingrock’s and Rosette’s vehicle in December 2017 in Havre. The agent had information that the two were selling Oxycodone on the reservation. The agent found pills and currency in the vehicle. Standingrock’s and Rosette’s phones were seized during the search and a search warrant was obtained for the phones. Rosette’s phone contained drug-related messages between her, Standingrock and Draper.

In an August text message to Draper, Rosette asked for a “half pack,” which agents believed referred to a pre-set amount of Oxycodone. In another text message to Draper, Rosette stated she would sell the pills on the reservation for $45 a pill. Rosette also asked Draper to fly to Great Falls, where she would pick him up and take him to the reservation. Draper messaged Rosette and Standingrock that he would bring 120 pills to Montana. Rosette and Standingrock said they would be able to sell the pills for $60 to $65 each on the reservation within a couple of hours.

Standingrock and Draper pleaded guilty to charges in the case and awaiting sentencing.

Assistant U.S. Attorney Brendan McCarthy prosecuted the case, which was investigated by the Drug Enforcement Administration, and the Tri-Agency Task Force.

 

XXX

MISSOULA – A Bozeman man on Tuesday admitted to multiple charges accusing him of taking sexually explicit images of a minor girl, distributing the images and cyberstalking the victim by placing spytracker software on her cell phone, U.S. Attorney Kurt Alme said today.

Jamie Brock Grubb, 30, pleaded guilty to a total of 10 counts, including seven counts of distribution of child pornography, transportation of child porn, cyberstalking and interception of wire, oral and electronic communications.

Chief U.S. District Judge Dana L. Christensen presided. A sentencing date will be set later.

Grubb faces a minimum mandatory 15 years to 40 years in prison, a $250,000 fine and five years to life of supervised release on the most serious charge of distribution of child porn. He was detained.

Prosecutors said that in 2011, Grubb was in a relationship with a minor girl and took sexually explicit images of her. While a minor, the girl also took sexually images of herself and sent them electronically to Grubb. Grubb then distributed those images without the victim’s knowledge from 2015 to 2017.

During the investigation, Gallatin County Sheriff’s Office detectives got search warrants for Grubb’s email account and determined that he had transported the sexually explicit images and a video of the victim by emailing them to himself.

Detectives also analyzed the victim’s smart phone and other smart phones in Grubb’s possession and determined Grubb had placed spytracker software on the victim’s phone without her knowledge. There was evidence of the same software on Grubb’s phone. Detectives also found that Grubb had intercepted the victim’s communications, finding audio recordings of the victim’s phone calls with third parties on his phone. Grubb’s email account also showed records regarding the spytracker software.

Assistant U.S. Attorney Cyndee Peterson is prosecuting the case, which was investigated by U.S. Probation and Parole, the Gallatin County Sheriff’s Office and Homeland Security Investigations.

 

XXX

 

MISSOULA – A Libby woman admitted in federal court today to evading income taxes for two years while she was serving as the financial caretaker for an individual who was unable to care for herself, U.S. Attorney Kurt Alme said.

Candace Cummings, 65, pleaded guilty to tax evasion during a hearing before U.S. Magistrate Judge Jeremiah C. Lynch.  Judge Lynch will recommend Cummings’ plea be accepted by U.S. District Judge Dana L. Christensen, who is presiding in the case.

Cummings faces a maximum five years in prison, a $100,000 fine and three years of supervised release. She was released pending sentencing, which was set for May 16.

Prosecutors said the evidence would show that Cummings failed to report income of about $140,188 in 2012, which produced a tax loss of $35,096, and income of about $52,500 in 2013, which produced a tax loss of $13,420.

In late 2011, Cummings agreed to become the financial caretaker for a person who was unable to care for herself. Adult Protective Services assigned a power of attorney to Cummings on the individual’s behalf. APS told Cummings she needed to keep track of receipts for expenses she paid for the individual, and Cummings agreed to serve as a fiduciary without compensation.

In 2012 and 2013, Cummings used the individual’s money for personal expenses and failed to report the money as income on her own tax returns. In one instance, Cummings sold three of the individual’s savings bonds, worth $24,804. She deposited $10,804 into the individual’s account and bought a cashier’s check in her name for $10,000, which she deposited into her own bank account. Cummings received the remaining $4,000 in cash.

Cummings also sold three more savings bonds, worth $16,408. She received a cashier’s check in her name for $6,000, which she later deposited into her bank account, and the remaining $10,408 in cash.

In 2013, after several suspicious transactions involving the individual’s certificates of deposit and savings bonds, the bank contacted APS and local law enforcement. APS revoked Cummings’ power of attorney based on the suspicious activity.

Assistant U.S. Attorney Timothy Racicot is prosecuting case, which was investigated by the IRS’s Criminal Investigation Division.

 

XXX

 

GREAT FALLS – Great Falls resident Jay Nash, who admitted defrauding four persons of more than $800,000 in real estate schemes, was sentenced on Tuesday to three and one-half years in prison and to three years of supervised release, U.S. Attorney Kurt Alme said today.

U.S. District Judge Brian M. Morris, who presided at sentencing, also ordered $842,729 in restitution.

Nash, 50, pleaded guilty in May 2018 to wire fraud and to money laundering.

Prosecutors said Nash took advantage of elderly persons, widows and friends, defrauding them and spending the money on boats, furniture and his mother’s house.

In one of the cases, Nash obtained a warranty deed in August 2011 on a house owned by one of the victims. The parties entered into a promissory note, which was secured by a mortgage on the property. The mortgage, however, was never filed with Cascade County. Four months later, without the victim’s knowledge, Nash took out two loans totaling more than $180,000 on the property. Nash then sold the property and did not give the proceeds to the victim.

As a result of the sale, $246,763 was wire transferred from Mann Mortgage. Nash then deposited $47,823, which represented the proceeds of the sale of the house after previous mortgages were paid.

Investigators determined that Nash spent the victim’s money from the two mortgages and ultimate sale of the house on boats, furniture, his mother’s house and other unrelated living expenses. None of the expenditures was approved by the victim.

The investigation also found that Nash had defrauded three other victims in similar schemes by entering promissory notes with the individuals and spending the money on unauthorized purchases.

Prosecutors said the fraud loss was more than $800,000.

U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI and IRS.

XXX

BILLINGS—A jury convicted Billings resident Antonio Francisco Gutierrez on January 16 in the 2018 armed robbery of Dotty’s Casino following a three-day trial, U.S. Attorney Kurt Alme said today.

The jury found Gutierrez, 36, guilty of three counts, including robbery affecting commerce, brandishing a firearm in furtherance of a crime of violence and being a felon in possession of a firearm. Gutierrez is detained.

U.S. District Judge Susan Watters presided at the trial. Watters set sentencing for May 16.

Gutierrez faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the robbery count and a consecutive mandatory seven years to life, a $250,000 fine and five years of supervised release on the brandishing count.

Prosecutors alleged that on Feb. 5, 2018, Gutierrez asked co-defendant, Christopher Esrey, to drive him to Dotty’s Casino, on Montana Sapphire Drive, near Shiloh Road, to meet a friend to “get some money.” The pair arrived at the casino at about 11:43 p.m. Esrey waited in the car while Gutierrez entered the casino wearing a hood, hat and facemask. He tried to open the inner door but it was locked. Gutierrez pushed a buzzer to summon a casino attendant, who motioned for him to remove his clothing before she unlocked the inner door.

Gutierrez mimed as if he was going to remove the items and the attendant opened the door and began walking back to her station, prosecutors alleged. When the attendant unlocked the door, Gutierrez stopped removing his face coverings, took a pistol from his coat pocket, cocked it and pointed it at the attendant’s back. The attendant froze, raised her hands and complied with Gutierrez’s instruction to empty the till.

Gutierrez got back into the idling vehicle, and the attendant reported the robbery to the Billings Police Department. Gutierrez and Esrey eventually went to gamble at another casino, where they were detained by officers.

Esrey pleaded guilty to accessory after the fact and is to be sentenced on Feb. 7.

Assistant U.S. Attorneys Colin Rubich and Tom Godfrey prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Billings Police Department.

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.

 

XXX

 

BILLINGS – California resident Raymond M. Fitch was sentenced to seven years in federal prison and to five years of supervised release on January 25 for conviction in a methamphetamine case in which the drug was mailed to Sidney from California, said U.S. Attorney Kurt Alme today.

Fitch, 59, of Imperial Beach, Calif., pleaded guilty earlier to possession with intent to distribute meth.

U.S. District Judge Susan Watters presided at sentencing.

The investigation began in about August 2017 when the Montana Division of Criminal Investigation received information that two individuals from Sidney had been receiving regular shipments of meth by mail at their residence from a source in California.

On August 29, 2017, the U.S. Postal Service observed a package addressed to one of these persons from Chula Vista, Calif. The sender’s return address was to a strip mall. Law enforcement executed a search warrant on the package and found a clear plastic bag containing meth along with a note addressed to “T&T.” Officers also found a clear plastic bag containing about 54 grams of pure meth with a note reading “RF you owe 4000 total.” Fifty four grams of meth is the equivalent of about 432 individual doses.

During an interview, one of these co-conspirators told officers that “RF” was Ray Fitch and that Fitch received one ounce of meth from the California supplier in every package the source sent. The co-conspirator estimated that Fitch had received numerous packages of meth from the source. The second co-conspirator corroborated the statement and said that the meth reserved for Fitch was always labeled with the initials “RF.”

Law enforcement also interviewed one of Fitch’s customers who bought about a half ounce of meth daily from Fitch for about four months.

Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force.

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.

XXX

 

BILLINGS – An Arizona woman who admitted driving 10 pounds of methamphetamine to Billings to make money was sentenced on January 25 to five years in prison and five years of supervised release, said U.S. Attorney Kurt Alme on Monday.

Leticia Aguirre Tyrrell, 36, of Tucson, had pleaded guilty earlier to possession with intent to distribute methamphetamine.

U.S. District Judge Susan Watters presided at sentencing.

During a drug trafficking investigation, task force agents worked with a confidential informant who arranged for a meth shipment to be delivered in Billings. On June 23, 2018, investigators learned that the courier’s name was “Leti” and that she had arrived at a Billings hotel. Agents arrested her and identified her as Leticia Aguirre Tyrrell. 

Agents seized Tyrrell’s Ford Fusion and got a warrant to search the vehicle. Investigators found 10 pounds of meth in one large package in the rear passenger seating area of the vehicle. Ten pounds of meth is the equivalent of about 36,240 individual doses. 

In an interview later, Tyrrell said she had made the trip to earn some money and was to be paid $5,000 for driving to Billings. The vehicle had been rented. Tyrrell obtained a box of what she believed to be meth from an unknown male in Phoenix before departing for Montana.

Assistant U.S. Attorney Tom Godfrey prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. 

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.

XXX

MISSOULA—Missoula resident William Perry Hobbs, who admitted distributing methamphetamine to support a heroin addiction, was sentenced to four years in federal prison and five years of supervised released today, U.S. Attorney Kurt G. Alme said.

Hobbs, 38, pleaded guilty earlier to possession with intent to distribute meth.

Chief U.S. District Judge Dana L. Christensen presided at sentencing.

During an investigation, an undercover law enforcement officer bought meth from Hobbs three times, from March to May. The quantity of meth totaled more than 50 grams of actual meth. Fifty grams is the equivalent of 400 individual doses. In addition, evidence showed that an informant sometimes sold drugs with Hobbs. Hobbs also admitted he was a meth distributor in the Missoula area and distributed to support his heroin addiction.

Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Missoula High Intensity Drug Trafficking Area Task Force.

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.

XXX

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

Appearing on Dec. 18 before U.S. Magistrate Judge John T. Johnston in Great Falls and pleading not guilty was:

WILLARD WILSON WHITE III, 43, on charges of wire fraud; theft from an Indian tribal organization; and income tax evasion. If convicted of the most serious crime, White faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the Fort Peck Tribes’ Department of Law and Justice and U.S. Department of Interior’s Office of Inspector General. Pacer case reference. 18-97.

Appearing on Dec. 20 before U.S. Magistrate Judge John T. Johnston in Great Falls and pleading not guilty was:

KARINA VICTORIA RUIZ-ROSALES, 24, of Los Angeles, Calif., 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, Ruiz-Rosales faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Russell Country Drug Task Force. Pacer case reference. 16-36.

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.

  

XXX

 

 

BILLINGS—An indictment filed today in U.S. District Court charges former Custer County High School athletic trainer James “Doc” Jensen, of Miles City, with coercion and enticement of minors to engage in sexual activity, U.S. Attorney Kurt G. Alme announced.

If convicted of the crime, Jensen, 78, faces a maximum 15 years in prison, a $250,000 fine and three years of supervised release.

The indictment is merely an accusation. Jensen remains innocent until proven guilty.

The indictment charges that beginning in 1995 and continuing until about 1999 in Miles City, Jensen used means of interstate commerce, including the Internet, to entice and coerce an individual who he believed was a minor to engage in sexual activity.

Chief U.S. District Judge Dana L. Christensen is assigned to the case.

Assistant U.S. Attorneys Zeno Baucus and Bryan Dake are prosecuting the case, which is being investigated by the FBI and Montana Department of Justice’s Division of Criminal Investigation.

 

XXX

 

MISSOULA—Billings resident Joseph Wayne Waters was sentenced on Thursday to four years in federal prison and three years of supervised release for his conviction of illegally possessing firearms, U.S. Attorney Kurt Alme said.

Waters, 39, pleaded guilty in September to being a prohibited person in possession of firearms.

Chief U.S. District Judge Dana L. Christensen presided at sentencing.

Waters was charged after an incident on Jan. 20, 2018 in Bozeman in which Waters fired a shot at a truck, hitting it in the tailgate, during a pursuit. Waters and two others were driving in Bozeman when the driver of Waters’ vehicle saw her ex-husband and began following his vehicle at a fairly high rate of speed. Waters called the ex-husband during the pursuit and law enforcement officers obtained phone records that reflected those calls. Eventually, Waters fired a shot at the truck.

When the chase ended, the driver consented to a search of her vehicle and officers seized three firearms from Waters’ backpack.  The firearms included a .32 caliber revolver, a 9mm pistol and a .40 caliber pistol.

Waters, having been convicted of a felony aggravated assault in 1997 in Montana, was prohibited from possessing firearms.

Assistant U.S. Attorney Timothy Racicot prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bozeman Police Department and the Missoula Police Department.

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.

XXX

 

 

BILLINGS – A Busby man convicted of first degree murder in the 2016 death of a woman, who was beaten, strangled, lit on fire and left to die in a field, was sentenced to life in prison today in federal court, while two co-defendants also received prison terms for their roles in the crime, U.S. Attorney Kurt G. Alme said.

Dimarzio Swade Sanchez, 21, was sentenced to mandatory life in prison, five years of supervised release and ordered to pay $14,276.72 restitution. A jury convicted Dimarzio Sanchez on Dec. 4, 2017 of first degree murder/aiding and abetting murder.

Angelica Jo Whiteman, 26, of Lame Deer, was sentenced to 40 years in prison, five years of supervised release and ordered to pay $14,276.72 restitution. Whiteman pleaded guilty in August 2017 to aiding and abetting first degree murder.

Frank James Sanchez, 21, of Lame Deer, was sentenced to nine in prison, three years of supervised release and ordered to pay $14,276.72 restitution. Frank Sanchez pleaded guilty in March 2017 to accessory after the fact and to misprision of a felony.

U.S. District Judge Susan P. Watters presided at the sentencing hearings.

Dimarzio Sanchez, his brother, Frank Sanchez, and Whiteman were charged in the death of the victim, who died on June 28, 2016 in a Utah hospital where she was flown for treatment after being attacked on April 17, 2016.

“This was an extraordinarily heinous crime. Our condolences go out to the victim’s family, friends and the entire community,” said U.S. Attorney Alme. “The Department of Justice is committed to fighting and reducing the significant levels of violence against women in Indian Country. Today’s sentences reflect the seriousness of the crime and will protect the community from future harm by these individuals.”

“I would like to thank Deputy Criminal Chief Lori Suek, former Assistant U.S. Attorney John Sullivan, the FBI and Bureau of Indian Affairs agents, the victim specialists and other staff of the FBI, BIA and U.S. Attorney’s Office for their hard work on this case,” Alme said.

During the four-day jury trial of Dimarzio Sanchez, the government presented evidence that Dimarzio Sanchez, the two co-defendants and others picked up the victim at the Kirby Saloon on the Northern Cheyenne Indian Reservation on April 17, 2016 and offered to give her a ride to her Crow Agency home. The defendants and victim had not met until that night.

The group stopped at a residence, where one of the individuals remained while the rest of the group headed toward Crow Agency. Along the way, a fight erupted between Whiteman and the victim. Dimarzio Sanchez, the driver, drove to Castle Rock Road, a dirt road off of Highway 212 on the Crow Indian Reservation, and parked.

The entire group initially got out and the assault on the victim continued. At one point, Dimarzio Sanchez showed Whiteman how to strangle the victim using a bandana, and Whiteman strangled her.

Frank Sanchez retrieved a gas can from the trunk of the car. Dimarzio Sanchez poured gasoline onto the victim and set her on fire. Dimarzio Sanchez and the rest of the group left the area. The victim remained in the field for about 14 hours until a motorist found her and called for help, prompting the start of the investigation. The victim ultimately was flown to a Salt Lake City hospital where she died.

Frank Sanchez was present and witnessed the assault but failed to notify authorities. He lied to law enforcement about his knowledge of the crime when he was first interviewed by denying he was present and giving investigators a false alibi. When re-interviewed almost two weeks later, Frank Sanchez provided a truthful account. In addition, Frank Sanchez failed to turn over to law enforcement the victim’s jeans, which Dimarzio Sanchez had given to him and another person.

Deputy Criminal Chief Lori Suek and former Assistant U.S. Attorney John Sullivan prosecuted the case, which was investigated by the FBI and Bureau of Indian Affairs.

XXX

BILLINGS—Pryor resident Gary Duke Carlson was sentenced on Wednesday to 46 months in federal prison and three years of supervised release for assaulting and strangling a woman, U.S. Attorney Kurt G. Alme said.

Carlson, 28, pleaded guilty earlier to assault by strangulation and to assault resulting in substantial bodily injury,

U.S. District Judge Susan P. Watters presided at the hearings.

In May 2017 in Pryor, on the Crow Indian Reservation, Carlson made accusations about the victim, became physically abusive and began to strangle her. In June 2017, Carlson again made accusations and head-butted the victim. He also hit her in the face with his hands, injuring her face. In an interview with Bureau of Indian Affairs agents, Carlson denied hitting the victim but said he pushed her and that she fell into a dresser or a door.

Assistant U.S. Attorney Thomas Godfrey prosecuted the case, which was investigated by the FBI.

XXX

  

MISSOULA—An Illinois woman who posed as a caregiver and tried to pass fake prescriptions for pain pills in Missoula as part of a conspiracy was sentenced to federal prison on Wednesday, U.S. Attorney Kurt G. Alme said.

The defendant, Shannon Melissa Gross, 42, of Lombard, Il, was sentenced to one year and one day in prison and five years of supervised release. Gross pleaded guilty earlier to conspiracy to possess with intent to distribute Oxycodone.

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

Missoula Police Department officers arrested Gross in January 2017 while she tried to pass a fraudulent prescription for Oxycodone at a local pharmacy. Gross had successfully filled one prescription for 180 30 mg Oxycodone pills and had tried to fill two other similar prescriptions that same day.

Each prescription was purported to be written by a Dr. Nick Chen, from the Seattle Intergrative (sic) Cancer Center located in Tukwila, Wash. This same doctor and practice has been used in other fraudulent prescriptions passed elsewhere in Montana.

When interviewed by law enforcement officers, Gross said an unknown man approached her in a casino in western Washington and asked if she’d like to make some money. Gross agreed and the man drove her to the rental car center at SeaTac Airport, where a woman was waiting with a rented vehicle. The woman, later identified as codefendant, Meisean Teurn, drove Gross to Missoula.

In Missoula, Teurn provided Gross with the fraudulent prescriptions, medical scrubs, insurance information for the patients whose names were on the fake prescriptions and instructions for how to pretend to be a caregiver filling the prescriptions. Gross followed the instructions and got arrested.

Teurn, 27, of Tukwila, Wash., was sentenced in September to one year and one day in federal prison and three years of supervised release for conviction of conspiracy to possess with intent to distribute Oxycodone.

Assistant U.S. Attorney Thomas Bartleson prosecuted the case, which was investigated by the Drug Enforcement Administration and the Missoula Police Department.

XXX

BILLINGS—A Bozeman man accused of trafficking methamphetamine he brought from Denver to Montana was sentenced on Wednesday to three years in federal prison and five years of supervised release, U.S. Attorney Kurt G. Alme said.

Michael Arnold Delack, 49, pleaded guilty earlier to possession with intent to distribute meth.

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

During an investigation in 2017 and early 2018, law enforcement made controlled meth buys from Delack using confidential informants and undercover agents. In August 2017, law enforcement learned that Delack was returning from Denver and was suspected of bringing meth. Investigators asked the Montana Highway Patrol to stop Delack’s vehicle. MHP stopped Delack in Big Horn County, where Delack told agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives that he had about six ounces of meth inside a duffel bag in the vehicle.

In January 2018, a GPS monitoring device was placed on Delack’s vehicle, as authorized by a search warrant. The tracker indicated Delack was traveling out of state on Jan. 28 and traveling back to Montana the next day. On Jan. 30, MHP stopped Delack’s vehicle east of Columbus and searched the vehicle. Hidden in the engine compartment was a round metal tin containing 112.3 grams of meth. Delack admitted to traveling to Denver and buying four ounces of meth for $2,000. Four ounces of meth is the equivalent of about 896 individual doses.

 Assistant U.S. Attorney Thomas Godfrey prosecuted the case, which was investigated by the ATF.

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.

XXX

BILLINGS—Stephen Michael Miller, the former postmaster of the U.S. Postal Service Office in Miles City, was sentenced to five years of probation and fined $2,500 today in federal court for his role in a conspiracy to distribute methamphetamine that came through the mail, U.S. Attorney Kurt G. Alme said.

Miller, 59, pleaded guilty earlier to conspiracy to possess with intent to distribute meth.

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

An investigation found that between 2013 and August 2015 there was a conspiracy to send meth through the mail for distribution in the Miles City area. Several other defendants have been convicted and sentenced in the case. One of the co-conspirators, James Toms, who received his meth through the post office, was sentenced in April 2018 to 96 months in prison and five years of supervised release for conviction on possession with intent to distribute meth.

Miller, who was the postmaster in Miles City, used his position to warn Toms that the police had been monitoring mail sent to his residence. On one occasion, Miller intercepted for Toms a package that contained about four ounces of meth. Miller delivered the package to Toms in exchange for one ounce of the meth. Four ounces of meth is the equivalent of about 904 individual doses.

Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Drug Enforcement Administration, FBI, Eastern Montana High Intensity Drug Trafficking Area Task Force and Miles City Police Department.

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.

XXX

BILLINGS – A Billings man who worked for Signal Peak Energy, a Montana coal mining company, admitted in federal court today to an embezzlement scheme that defrauded companies of more than $20 million and to lying to investigators about a false abduction, U.S. Attorney Kurt G. Alme said.

Larry Wayne Price, Jr., 38, pleaded guilty to three counts of wire fraud, conspiracy to commit money laundering and false official statement.

U.S. Magistrate Judge Timothy J. Cavan presided at the hearing and recommended Price’s pleas be accepted by U.S. District Judge Dana L. Christensen, who is assigned to the case. A sentencing date will be set. Price was released pending sentencing.

Price faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the wire fraud and conspiracy counts. He faces a maximum five years in prison, a $250,000 fine and three years of supervised release on the official false statement count.

Price also faces the forfeiture of real and personal property derived from the crimes, including a $20,321,134 monetary judgment, two Billings residences located at 5650 Canyonwoods Drive and at 5875 Whispering Woods Drive, three properties in Virginia, a motorhome, boat trailers, watercrafts and jewelry.

The government agrees that forfeited property will be used for restitution for victims until all eligible victims have been made whole. Remaining property will be forfeited under the normal forfeiture procedures and will not exceed the money judgment of $20,321,134.

If the case had proceeded to trial, the government would have provided the following information as evidence:

From about October 2016 until April 2018, Price embezzled about $20,321,134 from three coal-related companies. During that time, Price was vice president of surface activities at Signal Peak Energy and also operated a private business called 3 Solutions, LLC, which was involved in coal mining but its primary purpose was to supply chemicals to Signal Peak Energy. 

The three companies Price defrauded were Ninety M, LLC, a Wyoming company of investors looking to invest large sums in coal mining projects; Three Blind Mice, LLC, another Wyoming company with investors seeking to invest in mining; and Signal Peak Energy.

Price had developed a reputation in Billings and elsewhere as a coal mining expert. Based on his reputation, he convinced Three Blind Mice to lend him $7.5 million, which he stole. Price maintained that 3 Solutions had secured a contract with a Pennsylvania coal company to install coal mining equipment. To complete the project, Price claimed he needed $7.5 million for expenses.

Price proposed that Three Blind Mice lend him the $7.5 million, and he would repay it $11 million on Jan. 31, 2018. Three Blind Mice agreed, signed an unsecured promissory note and wired 3 Solutions the funds. Price defaulted on the loan on Jan. 31, 2018.

An investigation found there was no contract between 3 Solutions and a Pennsylvania coal mine. Instead, Price spent the $7.5 million on unrelated expenses.

In another scheme, Price convinced Ninety M’s investors to appoint him as a representative of the company to help it buy and develop a coal mining property in Tazewell, VA, and to help develop other coal-related ventures. Price engaged in a series of five business deals with other companies on behalf of Ninety M in which he solicited about $13.5 million from the firm, of which $10,475,000 was fraudulently obtained.

Meanwhile, Price, while still employed by Signal Peak Energy, fraudulently induced Signal Peak Energy to buy coal-related equipment from a firm knowing that the firm would not actually provide the equipment. The firm funneled the money to Price through a bank account registered to 3 Solutions. The scheme defrauded Signal Peak Energy of about $2,396,134.

In April 2018, the Ninety M investors began to question some of the transactions involving Price and had confronted him on the phone. By April, Price was living in Virginia, where he was originally from.

On April 18, 2018, Price learned Ninety M was sending representatives to confront him about the fraudulent transactions and he decided to hide. Price contacted a woman he knew and agreed to hide at a house the woman had rented.

The same day, Price’s wife reported him missing to Virginia authorities and local law enforcement responded. Late that night, a driver spotted Price standing on the side of the road in Gratton, Va. Price was taken to a hospital for treatment and released.

Price was subsequently questioned by several law enforcement agencies. In those statements, Price falsely claimed he had been kidnapped by men who may have been associated with an outlaw motorcycle gang.

In statements to the FBI and IRS on April 20, 2018, Price said he had been approached by an unknown man who discussed possibly selling a motorcycle to Price. Price agreed to meet this man at a park and ride. When Price went to the meeting location, the unknown man arrived with a windowless van and was accompanied by another unknown man who pointed a gun at him. Price claimed the second man applied a rag with chemical on it to his face and that made him disoriented. Price said the men took him to an unknown location where he sat in a dark room on the floor for a period of time. The men applied the chemical rag to his face again. He then remembered the men threatening him and throwing him out of the moving van onto the side of the road.

Price knew that none of these statements to the FBI and IRS or to other law enforcement about his supposed abduction was true. Price was not kidnapped by anyone. The false statements cost the government significant investigative resources and hampered the investigation into Price’s own wrongdoing.

Assistant U.S. Attorneys Colin Rubich and Zeno Baucus are prosecuting the case, along with Assistant U.S. Attorney Randy Ramseyer, of the Western District of Virginia. The case was investigated by the FBI, IRS and the Montana State Auditor.

XXX

GREAT FALLS – A Washington man who admitted distributing pound quantities of methamphetamine primarily in the Great Falls area was sentenced on Dec. 12 to 90 months in federal prison and five years of supervised release, U.S. Attorney Kurt Alme said.

Cody David Paine, 35, of Kettle Falls, Wash., pleaded guilty previously to possession with intent to distribute meth.

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

An FBI investigation that began in February 2017 identified Paine as dealing large quantities of meth in Great Falls. Paine would travel with others in 2016 to Washington to pick up pounds of meth for distribution in various locations in Montana, including Missoula and Great Falls.

In May 2018, agents arrested an individual on a warrant in Missoula and learned that the individual had obtained about seven pounds of meth and a pound of heroin over three months in 2018 from Paine. Also in May, FBI agents arrested Paine in Missoula. Paine told agents that he had a large customer base for meth in Montana and that he had distributed multiple pounds of meth. One pound of meth is the equivalent of about 3,624 individual doses.

Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the FBI.

The case is part of Project Safe Neighborhoods, 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.

XXX

 

GREAT FALLS – A citizen of Mexico admitted on Dec. 11 in federal court to being in the United States illegally after Glacier National Park personnel found him walking while on patrol, U.S. Attorney Kurt G. Alme said.

Luis Alejandro Lopez-Solis, 36, of Mexico, pleaded guilty to illegal reentry.

U.S. District Judge Brian M. Morris presided at the hearing. Sentencing is set for Feb. 21, 2019. Lopez-Solis is detained.

Lopez-Solis faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.

If the case had gone to trial, the government would have presented the following information as evidence:

On Sept. 24 while on routine patrol of the Goat Haunt area of Glacier National Park, park personnel told St. Mary Border Patrol agents of a suspicious person walking south from the Goat Haunt Ranger Station area. Border Patrol agents searched for the person and later identified Lopez-Solis. Agents found him talking to a park law enforcement ranger on a trail south of the ranger station. Lopez-Solis was taken to the ranger station for an interview. Lopez-Solis, who was in wet clothing and shivering, said he had fallen into a nearby creek while trying to cross it.

Agents arrested Lopez-Solis and flew him by helicopter from the ranger station to the St. Mary Border Patrol Station for further investigation. He confirmed he was a citizen of Mexico.

Lopez-Solis told agents he left Mexico on Sept. 21, 2018 and had arrived the same day in Canada. There, he rented a car and traveled to Waterton, Alberta, where on Sept. 24 he started walking south, crossing into the United States, until he got found by the National Park Service rangers. He said his plan was to follow the NPS trail system to Chief Mountain where his girlfriend was going to pick him up.

Lopez-Solis was deported in May 2017 after conviction on passport fraud. He did not have permission to reenter the United States.

Assistant U.S. Attorney Paulette Stewart is prosecuting the case, which was investigated by U.S. Border Patrol and Glacier National Park Law Enforcement.

XXX

 

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

Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan on Dec. 10 and pleading not guilty were:

Danika Nurea Sanchez, 20, of Lame Deer, on charges of conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute meth. If convicted of the most serious crime, Sanchez faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 18-143.

Romer Jesse Jaure, 27, of Busby, on charges of sexual abuse of a minor and abusive sexual contact. If convicted of the most serious crime, Jaure faces a maximum 15 years in prison, a $250,000 fine and five years of supervised release. The case was investigated by the FBI. Pacer case reference. 18-148.

Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston on Dec. 11 and pleading not guilty were:

Holden Stillsmoking, 26, of Browning, on charges of strangulation and assault resulting in serious bodily injury. If convicted of the most serious crime, Stillsmoking faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the FBI. Pacer case reference. 18-102.

Martin St. Goddard, 32, of Browning, on charges of assault with a deadly weapon and assault resulting in serious bodily injury. If convicted of the most serious crime, Goddard faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the FBI. Pacer case reference. 18-100.

Rand Michael Emineth, 26, of Great Falls, on charges of conspiracy to distribute explosives without a license, possession of stolen explosives and felon in possession of a firearm. If convicted of the most serious crime, Emineth faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department. Pacer case reference. 18-90.

Mahliani Kataya Red Eagle, 20, of the Fort Peck Reservation, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime Red Eagle faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. The case was investigated by the FBI and Fort Peck Criminal Investigation. Pacer case reference. 18-98.

Justin Leonard Sheehan, 43, of Great Falls, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious drug crime, Sheehan faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. He also faces a minimum mandatory five years to life in prison consecutive to any other sentence on the firearms count. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 18-101.

Gary Girard Sheehan, 67, of Great Falls, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious drug crime, Sheehan faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. He also faces a minimum mandatory five years to life consecutive to any other sentence on the firearms count. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 18-101.

Lothar Konrad Krauth, 80, Great Falls, on charges of receipt of child pornography. If convicted of the most serious crime, Krauth faces a minimum mandatory five years to 20 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by Homeland Security Investigations. Pacer case reference. 18-99.

Appearing in Missoula before U.S. Magistrate Judge Jeremiah C. Lynch on Dec. 12 and pleading not guilty was:

Candace Hessel Cummings, 65, of Libby, on charges of tax evasion. If convicted of the most serious crime, Cummings faces a maximum five years in prison, a $100,000 fine and three years of supervised release. The case was investigated by the IRS. Pacer case reference. 18-56.

Appearing on Dec. 13 and pleading not guilty was:

Tina Marie Johnstone, 53, of Helena, on charges of theft of public money and concealment of facts impacting Supplemental Security Income. If convicted of the most serious crime, Johnstone faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. The case was investigated by the Social Security Administration. Pacer case reference. 18-19.

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.

 

 XXX

GREAT FALLS—Great Falls resident Derek Mathew Ferdinand, 32, was sentenced to nine months in prison, two years of supervised release and ordered to pay $1,485 restitution in federal court on Dec. 11 for conviction for making fake money, U.S. Attorney Kurt G. Alme said.

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

Ferdinand pleaded guilty earlier to counterfeiting obligations or securities of the United States.

In May 2017, the Great Falls Police Department and Cascade County Sheriff’s Office received reports of counterfeit money circulating through local businesses. Numerous business owners in Belt reported receiving the fake bills and identified Ferdinand as having been present while another person passed the bills. A surveillance video from one business showed Ferdinand passing a counterfeit bill to a bartender.

A witness told investigators that Ferdinand had explained to the person how he made counterfeit money and was “getting the bills perfect.” Law enforcement also spoke to another witness who had pictures of Ferdinand making money and reviewed the photographs. Agents determined that Ferdinand was responsible for making about $2,000 of the counterfeit money that individuals passed in the community.

Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the U.S. Secret Service and the Great Falls Police Department.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.

 

XXX

MISSOULA—A Columbia Falls man accused of stealing government benefits by overstating his disabilities admitted fraud and theft charges in federal court on Dec. 12, U.S. Attorney Kurt G. Alme said.

John Cicero Hughes, 46, pleaded guilty to theft of government money and Social Security disability insurance fraud.

U.S. Magistrate Judge Jeremiah C. Lynch presided and will recommend that Hughes’ plea be accepted by U.S. District Judge Dana Christensen, who is assigned to case.

Hughes faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Sentencing is set for April 12, 2019. Hughes is released.

The government intends to seek restitution for the Veterans Administration and the Social Security Administration for an estimated loss totaling $830,061, with the understanding that Hughes will dispute that figure and that a judge ultimately will determine loss and restitution before imposing sentence.

If the case had proceeded to trial, the government would have presented the following information as evidence:

Hughes, a Navy veteran, was determined in 2009 to be 100 percent disabled by the VA based on confirmation of a prior diagnosis that he suffered from multiple sclerosis. Hughes represented he had total loss of both hands and feet in addition to other maladies. From 2009 through July 2018, Hughes received more than $7,000 a month from the VA.

In addition, because the VA had rated Hughes 100 percent disabled, he qualified for SS disability insurance benefits. The Social Security Administration paid Hughes and some of his family members about $1,400 a month from 2009 until the present.

During the nine-year period, Hughes misrepresented the nature and extent of his disabilities to VA doctors and other health professionals by claiming he could not drive or walk more than a few steps, had double vision, had little to no feeling in his left arm and leg, could not shop for himself or prepare his own meals and was essentially bound to either his bed or a motorized wheelchair.

An investigation found that Hughes drastically overstated his symptoms and limitations. In June 2017, the VA and SSA began an investigation into the extent of Hughes’ disability, which culminated in a Compensation and Pension Examination on Jan. 23, 2018 in Helena.

During the examination, Hughes claimed he had not driven since 2008 without adaptive equipment and did not drive to Helena for the appointment. He said he could not walk more than a few steps and chose to remain in a wheelchair during the entire exam. He also said he could not shop for himself, was essentially house-bound, had almost no feeling in his left arm and leg and could not open his left hand because of spasticity caused by MS.

Unbeknownst to Hughes, law enforcement officers surveilled Hughes when he arrived for the appointment, recorded and monitored the entire exam and surveilled him when he left the VA. Officers saw Hughes drive himself to the appointment in a truck with no adaptive equipment and walk into and out of the VA. Hughes then drove himself around Helena, running errands, including walking with a cane around a grocery store and using both hands to play machines at a local casino.

Agents also surveilled Hughes’ activities in the Flathead Valley in 2017. Agents saw Hughes drive a car and a Harley Davidson motorcycle several times, walk distances he had claimed for years he could not cover and do chores, including climbing a ladder during a snowstorm to brush snow off the roof of a recreational vehicle.

On Aug. 1, 2017, Hughes received a direct deposit of $7,056 from the VA into his bank account. The same day, agents observed Hughes drive his motorcycle to and from a car wash and walk about 50 feet without a cane.

When agents interviewed Hughes at his residence in February 2018, he stuck to his story about the extent of his disabilities but admitted to driving a motorcycle in the summer of 2017 and to driving to the VA exam in January. He eventually admitted to making some misrepresentations to the examiner at the VA and told the agents, “If it was wrong, it was wrong.”

Assistant U.S. Attorney Timothy Racicot is prosecuting the case, which was investigated by VA’s and SSA’s Offices of Inspector General.

XXX

 

GREAT FALLS—Browning resident Denise L. Sharp, 60, who worked for the Blackfeet Tribe’s Head Start Program, admitted in federal court on Tuesday to stealing money through an overall scheme involving others in which an estimated $232,000 was fraudulently claimed as overtime pay, U.S. Attorney Kurt G. Alme said.

U.S. Magistrate Judge John T. Johnston presided at the hearing and will recommend Sharp’s plea be accepted by U.S. District Judge Brian M. Morris, who is assigned to the case. Sentencing is set for March 20, 2019. Sharp is released.

Sharp faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. She also faces restitution and an additional monetary judgment of $38,711 as the amount she claimed in overtime pay.

If the case had gone to trial, the government would have presented the following information as evidence:

The Blackfeet Tribe operates the Head Start Program with funding from the U.S. Department of Health and Human Services. Head Start provides early childhood education and other services for low-income children and their families.

During a 15-month period, starting in April 2013, Sharp and others falsely claimed 7,800 hours of overtime and received more than $232,000 in overtime pay from the Head Start program. When the fraud was uncovered, two different firms audited the Blackfeet Head Start program. Both audits questioned the overtime claims, identifying them as “beyond necessary and reasonable” and lacking any supporting documentation.

The Blackfeet Tribe did its own internal review, agreed it could not justify the overtime claims and repaid HHS $250,620.29 for disallowed costs and other expenses.

After an on-site review of the program by government authorities from Washington, D.C., Sharp along with co-defendants and others met in a conference room. Despite not actually working the hours, everyone present in the room agreed to continue claiming overtime.

Other Head Start workers told investigators they never saw Blackfeet Head Start personnel working late nights or on weekends. The program’s board chairman was unaware of the overtime claims, identified budget cuts that were necessary during the time period of the fraud and was unaware of any needs that would have justified the overtime claims by the defendants.

Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which was investigated by the FBI and HHS.

XXX

GREAT FALLS – A Box Elder resident admitted in federal court on Dec. 10 to domestic abuse charges for repeatedly assaulting the victim, U.S. Attorney Kurt G. Alme said.

Cole Young Bad Hawk, 24, pleaded guilty to domestic abuse by an habitual offender.

U.S. District Judge Brian M. Morris presided at the hearing. Judge Morris set sentencing for March 21, 2019. Bad Hawk is detained.

Bad Hawk faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.

If the case had gone to trial, the government would have provided the following information as evidence:

On March 23, 2016 in Box Elder, on the Rocky Boy’s Indian Reservation, Bad Hawk assaulted the victim after becoming angry when he saw her messaging other people on her phone and thought she may be cheating on him. Bad Hawk called the victim names and punched her in the face with his fist, knocking her down. While the victim was down, Bad Hawk picked her up with one hand holding her hair and his other hand holding one leg and repeatedly body slammed her onto the floor.

Bad Hawk then dragged the victim into a bedroom where he continued calling her names. The victim ran into the bathroom and locked the door, but Bad Hawk kicked the door open and assaulted the victim while she was on the floor. From the bathroom, Bad Hawk took the victim back to the bedroom and squeezed her by neck with his hand, impeding her ability to breathe.

Bad Hawk has two prior domestic assault convictions involving the same victim in Chippewa Cree Tribal Court.

Assistant U.S. Attorney Jared Cobell is prosecuting the case, which was investigated by the FBI.

XXX

BILLINGS--Billings resident Gregory Adam Kilwein, 50, was sentenced on Thursday to 10 years in federal prison and five years of supervised release for conviction in a drug investigation in which agents found four pounds of methamphetamine in his apartment, U.S. Attorney Kurt G. Alme said.

Kilwein also forfeited the $30,350 seized in case. Kilwein pleaded guilty in July to possession with intent to distribute meth.

U.S. District Judge Susan P. Watters presided at the sentencing.

In March, a Billings Police officer saw Kilwein riding a bicycle on a downtown sidewalk in violation of a city ordinance. In addition, Kilwein was acting suspiciously by watching the officer and then trying to avoid him by going around the block. When the officer pulled behind Kilwein in an alley, Kilwein dropped his bicycle and took off running. While fleeing, he threw a bag he was carrying over a fence.

The officer caught Kilwein after a brief chase and recovered the bag. Lying near the bag in the snow was a package covered in tape that had fallen from the bag. When the officer picked up the bag, he could see a similar taped package and white envelope containing money.

Kilwein was on state probation, and his probation officer authorized a search of Kilwein, his bag and his residence. The bag contained $12,450 and each taped package weighed about 500 grams, or a little more than one pound, of meth. Kilwein was arrested and while being booked at the jail, detention staff found a bag with about four ounces of meth in his underwear.

In monitored jail calls, a drug task force officer listened to Kilwein instruct relatives to clean out his apartment, specifically telling them to get rid of stuff and that there was cash hidden in his apartment and other locations. At Kilwein’s apartment, officers seized an additional four pounds of meth and $3,900 located in a safe. Four pounds of meth is the equivalent of about 14,496 individual doses. Relatives consented to a search and voluntarily turned over $14,000.  In addition, a search of Kilwein’s phone seized at his arrest showed messages to a Mexican phone number belonging to another person under investigation and who was living in Mexico.

Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI task force.

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.

 

XXX

BILLINGS—Billings resident Nathan Thomas Trujillo, 41, admitted on Dec. 11 in federal court to drug trafficking and firearms charges in a conspiracy that brought methamphetamine from Denver, Colo., to the community, U.S. Attorney Kurt G. Alme said.

Trujillo pleaded guilty to conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime.

U.S. Magistrate Judge Timothy J. Cavan presided and will recommend Trujillo’s plea be accepted by U.S. District Judge Dana L. Christensen, who is assigned to the case.

Sentencing is set for April 24, 2019. Trujillo is detained.

Trujillo faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release on the drug counts. He also faces a minimum mandatory five years to life in prison consecutive to any other sentence on the firearms count.

If the case had gone to trial, the government would have presented the following information as evidence:

In August, drug task force agents began investigating a Billings area meth dealer, later identified as Trujillo, but who was living under a stolen identity to avoid arrest on an outstanding warrant. Agents conducted multiple drug buys with a co-conspirator of Trujillo’s and bought a total of about 13 ounces of meth. 

Agents also learned that Trujillo traveled to Denver to obtain pound quantities of meth for re-distribution in the Billings area and got a court-authorized GPS tracking device for a vehicle Trujillo used. Information from the tracker indicated that Trujillo traveled to Denver on Aug. 31. Trujillo returned to Montana on Sept.7 and the Montana Highway Patrol arrested him at a gas station in Hardin.

Agents executed search warrants on Trujillo’s vehicle and apartment. From the vehicle, agents seized about 429 grams, or about 15 ounces, of meth, a 9mm pistol, a digital scale and plastic baggies. The 429 grams of meth is the equivalent of about 3,432 individual doses. Also found were additional firearms, illegal drugs and drug paraphernalia. From Trujillo’s apartment, agents seized another firearm and more drug paraphernalia.

Assistant U.S. Attorney Colin Rubich is prosecuting the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and the FBI task force.

The case is being brought as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods (PSN) 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.

XXX

GREAT FALLS—A Lewistown woman convicted of possessing methamphetamine for distribution was sentenced on Tuesday to 54 months in prison and five years supervised release, U.S. Attorney Kurt G. Alme said.

 Jahmel Halabi, 43, pleaded guilty to the charge in August.

U.S. District Judge Brian M. Morris presided at sentencing.

On April 14, 2018 near Lewistown, a Montana Highway Patrol trooper stopped a car in which Halabi was a passenger. The trooper arrested Halabi on an outstanding warrant and took her to jail. Additional information that Halabi and the driver were involved in drug activity led to officers getting a search warrant for the car. A search turned up about 99 grams, or 3.5 ounces, of actual meth and baggies that were hidden in the dome light.

That same day, the Fergus County Sheriff’s Office reviewed jail calls and identified Halabi as having called a person and requesting he “get the stuff out of the car” and “the stuff out of the house.” Halabi also indicated that drugs were located in a safe in the residence and provided the safe’s combination in the jail call.

Lewistown police officers got a search warrant for Halabi’s residence and seized about 14 ounces of actual meth, $4,000 cash and drug paraphernalia.

During an interview with law enforcement, Halabi admitted to dealing meth and said officers had missed meth and firearms during the search of her home. Officers returned to the residence and seized about 31 ounces, or 1.95 pounds of actual meth, which is the equivalent of about 7,072 individual doses. Also seized were various rounds of ammunition and bank receipts.

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

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.

 

XXX

GREAT FALLS – Poplar resident Brian Douglas Eagle, 23, admitted sex abuse charges in federal court on Monday after he tried to assault the victim while she was taking a shower, U.S. Attorney Kurt G. Alme said.

Eagle pleaded guilty to abusive sexual contact.

U.S. District Judge Brian M. Morris presided at the hearing. Sentencing is set for March 21, 2019. Eagle is detained.

Eagle faces a maximum 10 years in prison, a $250,000 fine and five years to life supervised release.

If the case had gone to trial, the government would have presented the following information as evidence:

On Feb. 7, 2018 in Poplar, on the Fort Peck Indian Reservation, the victim was taking a shower by herself in her home when she saw a shadow. Eagle entered the shower. He was naked and pushed the victim to a corner of the shower. Eagle then had the victim touch him before letting her get out of the shower. The victim got dressed and ran to another house where she spent the night. The resident contacted law enforcement.

 Assistant U.S. Attorney Paulette Stewart and Assistant U.S. Attorney Bryan Dake are prosecuting the case, which was investigated by the FBI and Fort Peck Law Enforcement.

XXX

 

BILLINGS—A Miles City man who admitted to making silencers pleaded guilty to four firearms violations during a federal court hearing on Monday, U.S. Attorney Kurt G. Alme said.

Brendan John Jones, 52, pleaded guilty to two counts of possession of a firearm not registered in the National Firearms Registration and Transfer Record and to two counts of possession of a firearm not identified by serial number.

U.S. Magistrate Judge Timothy J. Cavan presided. Sentencing is set for April 24, 2019. Jones is released.

Jones faces a maximum 10 years in prison, a $10,000 fine and three years supervised release.

If the case had gone to trial, the government would have presented the following information as evidence:

An investigation began in April 2018 when law enforcement received information that Jones was in possession of explosives and also making illegal silencers. Undercover agents met with Jones at his business, Jones Auto Detailing, and discussed explosives. Jones showed the agents dynamite that appeared to be old. The agents also asked about silencers for sale. Jones told the agents he made silencers out of Maglite flashlights and had made one from an aluminum baseball bat. The agents made preliminary arrangements to buy silencers and explosives.

On May 8, 2018, law enforcement executed a search warrant on Jones’ business. Officers found a shoe box labeled as containing dynamite, homemade explosive devices and other items on top of a soda machine. Officers also found two homemade silencers and a portion of another part used to make a silencer. One of the silencers appeared to be made from a baseball bat, while the other appeared to have been made from a bicycle part.

In an interview with law enforcement the same day, Jones confessed to possessing the explosives and silencers and to manufacturing the silencers. None of the silencers recorded contained serial numbers.

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.

XXX

 

 

 

GREAT FALLS – A Hays man admitted assault charges on Monday in federal court after he attempted to stab a Fort Belknap law enforcement officer with a pair of scissors in a confrontation during which he got shot in the shoulder, U.S. Attorney Kurt G. Alme said.

Cody Michael Anderson, 24, pleaded guilty to assault with a dangerous weapon.

U.S. District Judge Brian M. Morris presided at the hearing. Judge Morris set sentencing for March 21, 2019. Anderson is detained.

Anderson faces a maximum sentence of 10 years in prison, a $250,000 fine and three years supervised release.

If the case had gone to trial, the government would have presented the following information as evidence:

On May 7, 2018 south of Hays on the Fort Belknap Indian Reservation, Anderson attacked a tribal officer with a pair of scissors. The officer thought the scissors was a knife because all he could see was something long and metal shining in the sunlight.

The assault occurred after tribal officers responded to a 911 call from Anderson, who had driven off a road and was stranded in Mission canyon. During the call, Anderson said the cops were taking too long and threatened to shoot a cop or tow truck he saw them. The officers treated the situation as a gun call.

At the scene, Anderson told one of the officers he should have kept going, pulled a pair of scissors from his backpack and made multiple attempts to slash or stab the officer. The officer attempted to taze Anderson and then shot him in the shoulder while trying to protect himself. Anderson remained combative after getting shot but eventually threw the scissors toward another officer and surrendered.

Assistant U.S. Attorney Paulette Stewart is prosecuting the case, which was investigated FBI and the Fort Belknap Tribal Police.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.

 

XXX

 

 

GREAT FALLS—A citizen of Honduras who was arrested while working in Havre admitted in federal court on Monday to having illegally reentered the United States, U.S. Attorney Kurt G. Alme said.

Jose Alex Ventura-Padilla, 41, of Honduras, pleaded guilty to illegal reentry.

U.S. District Judge Brian M. Morris presided at the hearing. Judge Morris set sentencing for Jan. 23, 2019. Ventura-Padilla is detained.

Ventura-Padilla faces a maximum 10 years in prison, a $250,000 fine and three years supervised release.

If the case had gone to trial, the government would have presented the following information as evidence:

On Sept. 27, the Havre Sector Intelligence Unit of the U.S. Border Patrol received information that there was a crew working on a large water tank in Havre and that about a dozen of the workers were illegally in the country. Some of the workers had been deported multiple times. An investigation found that a North Carolina business was a subcontractor and had workers on the job.

Border Patrol agents observed one of the North Carolina company’s work trucks at a local restaurant. Three of the suspected water tower workers came out of the restaurant and walked toward the truck. An agent approached, identified himself and asked if the men were part of the crew working at the water tower. The men, including Ventura-Padilla, responded yes. Ventura-Padilla told the agent he was in the country illegally and did not have immigration documents.

Ventura-Padilla has two prior convictions for illegal reentry. He was last deported in 2010 after having served time on federal convictions and re-entered in 2015.

Assistant U.S. Attorney Paulette Stewart is prosecuting the case, which was investigated by the U.S. Border Patrol.

XXX

BILLINGS—Billings resident Jennifer Anne Thaw, who admitted embezzling approximately $390,680 from her employer where she worked as the office manager, was sentenced in federal court today to one year and one day in prison, three years supervised release and ordered to pay restitution, U.S. Attorney Kurt G. Alme said.

Presiding U.S. District Judge Susan P. Watters also ordered six months of house arrest after prison and set restitution at $392,930.71.

Thaw, 45, pleaded guilty in March to four counts of wire fraud.

Thaw, who worked as a controller and office manager for J & S Recovery, Inc., embezzled the money during a five-year period, from 2012 to August 2017. Through her job, Thaw had access to the company’s financial and banking information, including online access to the firm’s bank account.

As part of her scheme to defraud the company, Thaw used the online access to transfer money from the company’s bank account into her own personal checking account at a different bank. To conceal the missing money, Thaw did not record the transfers in the company’s financial accounting software program.

Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the FBI.

 

XXX

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

Appearing before U.S. Magistrate Judge John T. Johnston on Dec. 4 in Great Falls and pleading not guilty was:

MICHELE WOODS, 50, of Great Falls, on charges of theft from a program receiving federal funding. If convicted of the most serious charge, Woods faces a maximum 10 years in prison, a $250,000 fine and three years supervised release. The case was investigated by the FBI. Pacer case reference. 18-94.

Appearing on Dec. 6 and pleading not guilty was:

ELY MASON SCOTT WILLIAMS, 20, of Great Falls, on charges of receipt of firearm by person while under indictment. If convicted of the most serious charge, Williams faces a maximum five years in prison, a $250,000 fine and three years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department. Pacer case reference. 18-88.

SHEVYN EUGENE MARSHALL, 35, of Belt, on charges of conspiracy to distribute explosives without a license and possession of stolen explosives. If convicted of the most serious charge, Marshall faces a maximum 10 years in prison, a $250,000 fine and three years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Russell Country Drug Task Force. Pacer case reference. 18-90.

Appearing before U.S. Magistrate Judge Timothy J. Cavan on Dec. 4 in Billings and pleading not guilty was:

ANGEL ALBERT ALVARADO, 50, of Billings, on charges of conspiracy to possess with intent to distribute a controlled substance and possession with intent to distribute a controlled substance. If convicted of the most serious charge, Alvarado faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years supervised release. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 18-121.

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.

  

XXX

 

GREAT FALLS – Two employees who worked for the Blackfeet Tribe’s Head Start Program in Browning admitted in federal court on Thursday to stealing money through an overall scheme involving others in which an estimated $232,000 was fraudulently claimed as overtime pay, U.S. Attorney Kurt G. Alme said.

Patrick H. Calf Boss Ribs, Jr.,  44, of Browning, and Theresa Marie Calf Boss Ribs, 51, each pleaded guilty to theft from an Indian tribal government receiving federal funding and to wire fraud.

U.S. District Judge Brian M. Morris presided at the hearings. Judge Morris set sentencing for both defendants for March 14. Both defendants are released.

Each defendant faces a maximum 20 years in prison, a $250,000 fine and three years supervised release.

Patrick H. Calf Boss Ribs, Jr., also faces restitution and a money judgment of $33,496.46, which is the amount he received in overtime claims.

Theresa Calf Boss Ribs also faces restitution and a money judgment of $57,048.24, which is the amount she received in overtime claims.

If the case had proceeded to trial, the government would have presented the following information as evidence:

The Blackfeet Tribe operates the Head Start Program with funding from the U.S. Department of Health and Human Services. Head Start provides early childhood education and other services for low-income children and their families.

During a 15-month period, starting in April 2013, the defendants and others falsely claimed 7,800 hours of overtime and received more than $232,000 in overtime pay from the Head Start program. When the fraud was uncovered, two different firms audited the Blackfeet Head Start program. Both audits questioned the overtime claims, identifying them as “beyond necessary and reasonable” and lacking any supporting documentation.

The Blackfeet Tribe did its own internal review, agreed it could not justify the overtime claims and repaid HHS $250,620.29 for disallowed costs and other expenses.

After an on-site review of the program by government authorities from Washington, D.C., the defendants along with others met in a conference room. Despite not actually working the hours, everyone present in the room agreed to continue claiming overtime.

Theresa Calf Boss Ribs, who was the Early Head Start manager and had other roles, and Patrick H. Calf Boss Ribs, Jr., who was the nutrition manager and payroll clerk, were in charge of monitoring the time cards. At the end of the pay period, individuals in the group would stop by to sign their time cards for the pay period. The time cards were already completed by the defendants and included false overtime hours.

Other Head Start workers told investigators they never saw Blackfeet Head Start personnel working late nights or on weekends. The program’s board chairman was unaware of the overtime claims, identified budget cuts that were necessary during the time period of the fraud and was unaware of any needs that would have justified the overtime claims by the defendants.

Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which is was investigated by the FBI and HHS.

 

XXX

BILLINGS – Laurel resident David Dorrow Roundy, 42, was sentenced to two years in federal prison and three years supervised release on Thursday, U.S. Attorney Kurt G. Alme said.

Roundy pleaded guilty in August to possession of a stolen firearm, a .22 caliber bolt-action rifle.

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

In March 2017, law enforcement responded to a series of burglaries near 64th Street South in Billings and learned that a suspect had been seen fleeing on foot. At about the same time, officers received a call of a pickup truck being stolen in the area.

Officers pursued the truck, which left the road, went through a fence and across a field before becoming disabled. The suspect, identified as Roundy, fled on foot but was tracked to a garage and arrested. A pat-down search of Roundy turned up a rifle magazine and live rounds of ammunition.

Further investigation determined that ammunition found in the truck was the same brand and caliber as ammunition found on Roundy. And during a search of the immediate area of the stolen pickup, officers found a .22 caliber bolt-action rifle in the snow in an irrigation ditch. The rifle used the same magazines that were found in Roundy’s possession and were the same brand of ammunition as found in the stolen pickup.  A trace on the rifle determined that its original purchaser had been the victim of a burglary in March 2017 and lived in the same general area as the burglaries and the recovery of the stolen pickup.

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 Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.

 

XXX

 

 

BILLINGS—A Bozeman man convicted of being a felon in possession of a firearm was sentenced to 22 months in federal prison and three years supervised release on Wednesday, U.S. Attorney Kurt G. Alme said.

Anthony Jones, 27, pleaded guilty to the charge in August.

U.S. District Judge Susan P. Watters presided at the sentencing. Judge Watters ordered the sentence to be consecutive to a state District Court sentence in Gallatin County.

Jones was convicted in Gallatin County in August 2017 of criminal possession of dangerous drugs, a felony, and as a result, was prohibited from possessing firearms.

In March 2018, an individual bought a 9mm semi-automatic pistol at Livingston pawn shop. A few days later, Livingston police officers responded to an incident a local motel where Jones, the person who had purchased the pistol and another person were present.

In an interview with law enforcement, Jones admitted to possessing the firearm several times before the weekend police responded to the motel incident and had helped load and clean the pistol.

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.

 

 

XXX

MISSOULA – A West Yellowstone woman admitted today in federal court to embezzling more than a half million dollars from her employer over a seven-year period, U.S. Attorney Kurt G. Alme said.

Ann Bennett Hermanson, 54, pleaded guilty to wire fraud during a hearing in Missoula.

U.S. Magistrate Judge Jeremiah C. Lynch presided. Judge Lynch set sentencing for April 12.  Hermanson is released.

Hermanson faces a maximum 20 years in prison, a $250,000 fine and three years supervised release. A restitution agreement calls for Hermanson to pay $501,975.50.

If the case had gone to trial, the government would have presented the following information as evidence:

Hermanson worked for 15 years as a para-professional in the West Yellowstone office of a regional accounting and business services company. As a para-professional, Hermanson had access to bank account information and signature stamps for the company’s customers.

Starting in 2009 and continuing until April 2016, Hermanson embezzled about $630,327.88 from several accounts belonging to the company’s customers. She has repaid some of the money and has agreed to $501,975.50 restitution.

The thefts were discovered in April 2016 when a customer reported irregularities in her business account to the company’s corporate office.

 Hermanson embezzled funds by writing checks to herself for personal credit card expenses and other bills and using customers’ signature stamps to sign the checks. She also obtained a duplicate credit card for one victim’s account and used it to make unauthorized purchases.

When approached by a company employee in April 2016 about suspicious transactions, Hermanson admitted to embezzling money. She also admitted the thefts to an FBI agent and identified five business accounts from which she stole money.

Assistant U.S. Attorney Timothy Racicot is prosecuting the case, which was investigated by the FBI.

 

XXX

 

MISSOULA – Flathead County resident Bruce Boone Wann admitted in federal court today to firearms violations after an investigation found he illegally possessed a number of weapons and made an effort to hide them from law enforcement, U.S. Attorney Kurt G. Alme said.

Wann, 61, of Kila, pleaded guilty to illegally possessing a machine gun, an unregistered silencer, a short barreled rifle and a destructive device, specifically, a grenade. Wann is facing a maximum 10 years in prison, a $250,000 fine and three years supervised release.

U.S. Magistrate Judge Jeremiah C. Lynch presided at the hearing.

If the case had gone to trial, the government would have presented the following information as evidence:

During an investigation that began in June, law enforcement learned that Wann had kept buried or hidden firearms, ammunition, a grenade, dynamite, and other items on various properties in the Marion area. Wann claimed he had stolen some of the items from a government bunker in California many years earlier.

Wann later broke into a Flathead County residence where he had previously arranged for a number of his other firearms to be stored. Wann then took not only his firearms, but also stole other firearms that did not belong to him. Investigators also learned Wann had made various threats of violence against people in Flathead County.

Judge Lynch set sentencing for April 12. Wann is detained.

Assistant U.S. Attorney Tara Elliott and Taryn Meeks, a trial attorney with the National Security Division of the U.S. Department of Justice, prosecuted the case. The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Secret Service and the Flathead County Sheriff’s Office.

XXX

 

Application deadline is 9:00 p.m. EDT, Feb. 26, 2019 

WASHINGTON – The U.S. Department of Justice, along with Montana U.S. Attorney Kurt G. Alme, this week announced the opening of the grant solicitation period for comprehensive funding to Indian Country to support crime prevention, victim services, and coordinated community responses to violence against native women.

The Department’s FY 2019 Coordinated Tribal Assistance Solicitation, or CTAS, is posted online at www.justice.gov/tribal/open-solicitations. The solicitation contains details about available grants and describes how federally-recognized tribes, tribal consortia and Alaska Native villages can apply for the funds.

Principal Deputy Associate Attorney General Jesse Panuccio said, “This funding will give tribal officials the tools they need to fight violent crime, protect their citizens, serve victims, and deliver justice.”

“This grant funding offers Montana’s tribes an opportunity to seek resources in a variety of areas to help tribal officials improve public safety, assist victims of crime and reduce violence against women. We encourage tribal officials to apply for these grants,” Alme said.

In fiscal year 2018, Montana’s tribes received an estimated award total of $1.39 million in Department grant funding. The grants went to the Blackfeet Nation, $450,000 for Violence Against Women Tribal Governments Program and $350,000 for Juvenile Healing to Wellness court; Fort Belknap Indian Community, $271,147 for Children’s Justice Act Partnerships for Indian Communities; and Ft. Peck Assiniboine & Sioux Tribes, $322,641 for Children’s Justice Act Partnerships for Indian Communities.

The funding from the Department of Justice’s Bureau of Justice Assistance (BJA), Office for Juvenile Justice and Delinquency Prevention (OJJDP), Office for Victims of Crime (OVC), Office of Community Oriented Policing Services (COPS Office), and the Office on Violence Against Women (OVW) can be used to for a variety of public safety and justice-related projects and services. Funds can be used to enhance law enforcement; bolster adult and juvenile justice systems; prevent and control juvenile delinquency; serve native victims of crimes such as child abuse, sexual assault, domestic violence, and elder abuse; improve responses to violence against native women; and support other efforts to combat crime.

New to CTAS for FY 2019 is funding designated specifically to address violent crime in native communities (Purpose Area 10). Additionally, the Comprehensive Tribal Victim Assistance Program will be replaced by the Tribal Victim Services Program (Purpose Area 7) in FY 2019. This new program will provide funding to a larger number of applicants and provides funding for a broad range of activities, including a needs assessment, strategic planning, program development and implementation, program expansion, and other actions to address the victim service needs of tribes.

Applications for CTAS are submitted online through the Department’s Grants Management System, or “GMS.” Applicants must register with GMS prior to submitting an application. The application deadline is 9 p.m. EDT, Feb. 26, 2019.  Applicants will submit a single application and select from any or all of the 10 competitive grant programs, referred to as “purpose areas.” This approach allows the Department’s grant-making components to consider the totality of a tribal nation’s overall public safety needs.  

The 10 purpose areas are:

• COPS Office’s Public Safety and Community Policing
• Comprehensive Tribal Justice Systems Strategic Planning
• BJA’s Tribal Justice Systems
• BJA’s Tribal Justice System Infrastructure Program
• OVW’s Violence Against Women Tribal Governments Program
• OVC’s Children’s Justice Act Partnerships for Indian Communities
• OVC’s Tribal Victim Services Program
• OJJDP’s Juvenile Tribal Healing to Wellness Courts
• OJJDP’s Tribal Youth Program
• BJA’s Addressing Violent Crime in Native Communities

Fact sheets detailing each of the individual purpose areas can be found online at: www.justice.gov/tribal/grants. The Department will also facilitate a series of webinars to guide applicants through the CTAS application requirements. Details, including how to register for these webinars, will be made available online in coming weeks at www.justice.gov/tribal/open-solicitations.

Additionally, tribes and tribal consortia may also be eligible for non-tribal federal grant programs and are encouraged to explore other funding opportunities, which may be found at DOJ’s Tribal Justice and Safety website at www.justice.gov/tribal/open-solicitations or the www.grants.gov website.

In FY 2018, the Department funded 125 tribes with 225 awards across nine grant programs totaling more than $113 million.

CTAS is administered by the Department’s Office of Justice Programs, Office of Community Oriented Policing Services and Office on Violence Against Women.

The announcement is part of the DOJ’s ongoing initiative to increase engagement, coordination and action on public safety in tribal communities.

XXX

 

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

Appearing before U.S. Magistrate Judge Timothy J. Cavan in Billings on Nov. 26 and pleading not guilty was:

CHARLES FABIEN IDHEN, 38, of Billings, on charges of prohibited person in possession of a firearm and possession of a stolen firearm. If convicted of the most serious crime, Idhen faces a maximum 10 years in prison, a $250,000 fine and three years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 18-136.

Appearing on Nov. 27 and pleading not guilty was:

DARRELL LEE WHITEMAN, JR., 29, of Lame Deer, on voluntary manslaughter. If convicted, Whiteman faces a maximum 15 years in prison, a $250,000 fine and three years supervised release. The case was investigated by the FBI. Pacer case reference. 18-145.

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

GARY ALLEN JIMENEZ, 24, Heart Butte, on charges of sexual abuse of a minor and distribution of a controlled substance to a person under 21. If convicted of the most serious crime, Jimenez faces a minimum mandatory one year to 40 years in prison, a $2 million fine and six years supervised release. The case was investigated by the Blackfeet Nation law enforcement and FBI. Pacer case reference. 18-91.

Appearing before U.S. Magistrate Judge Jeremiah C. Lynch on Thursday in Missoula and pleading not guilty was:

JOHN GREGORY ALEXANDER HERRIN, 27, Helena, on charges of interstate transportation of stolen property, money laundering and attempted witness tampering. If convicted of the most serious charge, Herrin faces a maximum 20 years in prison, a $250,000 fine and three years supervised release. The case was investigated by the FBI and Secret Service. Pacer case reference. 16-15.

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.

 

 

XXX

MISSOULA—Flathead County resident Allen Duane Turman, 43, pleaded guilty on Thursday in federal court to sexual exploitation of a child, said U.S. Attorney Kurt G. Alme today.

U.S. District Judge Dana L. Christensen presided at the hearing.

Turman faces a maximum sentence of 15 years to 30 years in prison, a $250,000 fine and five years to life supervised release. He is detained.

In October 2017, law enforcement received a call about a thumb drive that belonged to Turman. An analysis of files on the thumb drive found it contained a video of a girl who was under the age of 18 and that the video was created a year or two earlier in Kalispell. The video depicts the girl engaged in sexually explicit conduct. Other files on the device indicated that Turman had created the video.

When interviewed in August 2018, Turman said he was using drugs at the time and that his memory was poor. While he did not specifically recall making the video on the thumb drive, he did not dispute that he created it.

Assistant U.S. Attorney Cyndee Peterson is prosecuting the case, which was investigated by the Flathead County Sheriff’s Office, the Billings Police Department and the Montana Internet Crimes Against Children Task Force.

This case was initiated under the Department of Justice’s Project Safe Childhood, which was launched in 2006 to combat the increase in technology-based 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. The project is implemented through partnerships including the Internet Crimes Against Children Task Force.

XXX

MISSOULA—A Butte man was sentenced to 10 years in federal prison on Thursday for his role in a large methamphetamine conspiracy, U.S. Attorney Kurt G. Alme said.

Steven Francis Reychler, 70, was sentenced to five years in prison for conviction on conspiracy to possess meth for distribution, a consecutive five years in prison for possessing a firearm in furtherance of a drug trafficking crime and five years supervised release. He pleaded guilty to the charges on Aug. 16.

U.S. District Judge Dana L. Christensen presided at the sentencing.

An investigation found that in March 2016, Reychler sold a confidential informant four ounces of meth in Butte and mentioned bringing multiple pounds of meth to Butte from Las Vegas. Two months later, law enforcement officers arrested co-defendant Jennifer Lynn Marshall, who is Reychler’s niece, in Dillon. Marshall was headed to California to buy four pounds of meth. She had $12,000 and a handgun in her possession when arrested. Judge Christensen recently sentenced Marshall to eight years in prison for her conviction in the case.

When interviewed, Reychler admitted to investigators he had sent Marshall to California to buy four pounds of meth for him and gave her his .380 pistol when she asked to take along a firearm.

The four ounces of meth the March 2016 sale was found to contain 112 grams of pure meth, which is the equivalent of about 896 doses.

Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by the Montana Division of Criminal Investigation, the High Intensity Drug Trafficking Area Task Force and the Missouri River Drug Task Force.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.

XXX

BILLINGS—A man who admitted to illegally possessing a firearm was sentenced to federal prison on Thursday, U.S. Attorney Kurt G. Alme said.

U.S. District Judge Susan P. Watters sentenced Charles Jestin McCalister, 34, to 50 months in prison and three years of supervised release.

McCalister pleaded guilty on July 30 to being a prohibited person in possession of a firearm.

An investigation began on April 30, when a Billings Police officer conducted a traffic stop for speeding and observed McCalister, the driver, appear to be putting something under his seat.  The officer arrested McCalister on outstanding warrants. McCalister consented to a search of the vehicle and told the officer there was a firearm in it. The officer recovered a 9mm semi-automatic pistol.

McCalister, who has a record of felony and misdemeanor convictions for partner/family member assault and possession of dangerous drugs, was prohibited from possessing firearms.

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.

XXX

GREAT FALLS—A Wolf Point woman convicted of trafficking methamphetamine on the Fort Peck Reservation was sentenced on Wednesday to 41 months in prison and four years supervised release, U.S. Attorney Kurt G. Alme said.

Taurean Grandchamp, 31, pleaded guilty on Aug. 23 to possession with intent to distribute meth.

U.S. District Judge Brian M. Morris presided at sentencing.

In October 2017 and in January, the Montana Highway Patrol made two traffic stops of vehicles with Arizona license plates on the reservation and near Wolf Point. The driver and passenger were the same in both stops. Drug information from those stops led law enforcement officers to Grandchamp, who admitted to distributing meth on the reservation. She told law enforcement that she was provided with one pound of meth for distribution in 2017. Other individuals also described Grandchamp selling meth with the driver and passenger of the vehicles that were stopped by the MHP.

Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI and the Fort Peck Department of Law and Justice.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.

 

XXX