District of Montana

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

 

Appearing before U.S. Magistrate Johnston in Great Falls on December 14, 2017 and entering pleas of Not Guilty were:

 

• LAFAVEN DESHAWN ADAMS, a 46-year-old resident of Paramount, California, appeared on charges of conspiracy to possess with intent to distribute oxycodone, and possession with intent to distribute oxycodone.  If convicted of the most serious charge contained in the indictment, ADAMS faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.  The case was investigated by Homeland Security Investigations and the Russell Country Drug Task Force.   PACER Case Reference.  17-49

 

Appearing before U.S. Magistrate Johnston in Great Falls on December 12, 2017 and entering pleas of Not Guilty were:

 

• KORDELL KYLE BIG KNIFE, a 23-year-old resident of Box Elder, appeared on charges of assault resulting in substantial bodily injury.  If convicted of the charge contained in the indictment, BIG KNIFE faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.   PACER Case Reference.  17-79

 

• WACEY MOUNTAIN CHIEF, a 30-year-old resident of Browning, appeared on charges of strangulation.  If convicted of the charge contained in the indictment, MOUNTAIN CHIEF faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the, Federal Bureau of Investigation.  PACER Case Reference.  17-83

 

Appearing before U.S. Magistrate Lynch in Missoula on December 12, 2017 and entering pleas of Not Guilty were:

 

• TYRELL BELGARDE, a 27-year-old resident of Browning, appeared on charges of strangulation and assault resulting in substantial bodily injury.  If convicted of the most serious charge contained in the indictment, BELGARDE faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-72

 

Appearing before U.S. Magistrate Johnston in Great Falls on December 5, 2017 and entering pleas of Not Guilty were:

 

• CHERYLE WHITE HAWK JORDAN, a 50-year-old resident of Sidney, appeared on charges of mail fraud, false claim to the federal government, and false statement to federal agent. If convicted of the most serious charges contained in the indictment, JORDAN faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the U.S. Department of Interior Office of Inspector General.   PACER Case Reference.  17-74

 

• GEORGIE ELAINE RUSSELL, a 36-year-old resident of Box Elder, appeared on charges of theft from an Indian tribal government receiving federal grants, theft from an Indian tribal organization, and false statements regarding federal funding.  If convicted of the most serious charges contained in the indictment, RUSSELL faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the, Federal Bureau of Investigation, Bureau of Indian Affairs, and the U.S. Department of Interior Office of Inspector General.   PACER Case Reference.  16-46

 

 

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

 

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

BILLINGS—Robert David Lund, a 53-year old resident of Salt Lake City, Utah, was sentenced today to 120 months in prison and five years of supervised release after pleading guilty to conspiracy to possess with the intent to distribute and to distribute methamphetamine and possession with intent to distribute methamphetamine.  United States District Judge Susan P. Watters issued the sentence.

 

During an investigation into a group of individuals responsible for the distribution of multiple pounds of methamphetamine in the Billings area, agents were led to Salt Lake City, Utah in search of the group’s supplier of methamphetamine.  On June 7, 2016, they seized approximately one pound of methamphetamine from a coconspirator and identified Lund’s residence as the source of that methamphetamine.  Later in the day, agents executed a search warrant on Lund’s residence.  There, they discovered 3,333.5 grams of actual methamphetamine along with 957.2 grams of marijuana, a Winchester shotgun within arm’s reach of the methamphetamine, and $14,731 in United States Currency.

 

The case was prosecuted by Assistant U.S. Attorney John Sullivan and investigated by the FBI Transnational Organized Crime Western Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force.  

 

The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana.  A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime.  Today’s sentencing is part of the Project Safe Neighborhoods program.

BILLINGS – John Thomas Giblin, III, a 45-year-old resident of Frenchtown, was sentenced today to 108 months in prison followed by 3 years supervised release after pleading guilty to conspiracy to possess with intent to distribute controlled substances.  U.S. District Judge Susan Watters handed down the sentence.

 

During three different occasions, Giblin sold a total of 215 Oxycodone pills, 40 Morphine pills, 35 Methadone pills, 29 Demerol pills, and 10 Valium pills valued at more than $9,000 dollars to an undercover agent from the Drug Enforcement Administration.  On May 27, 2015, Giblin then made arrangements with the undercover agent to buy 1 kilogram of cocaine and ½ pound of methamphetamine in exchange for money, marijuana, and more prescription pills.  Giblin agreed to meet the undercover agent in the parking lot of the Cracker Barrel restaurant in Missoula.  Law enforcement surveilled the drug purchase and after the package containing the cocaine and methamphetamine was delivered to Giblin, he was arrested.  Giblin had brought approximately $12,000 in cash to the drug deal.  He was interviewed after the arrest and admitted that he was planning to re-sell the methamphetamine in order to make money. 

 

The case was prosecuted by Assistant U.S. Attorney Bryan R. Whittaker and investigated by the Drug Enforcement Administration.

BILLINGS –  Following a four-day trial with testimony from fourteen government witnesses, Dimarzio Swade Sanchez, 20, of Busby, was convicted by a Montana jury of first degree murder.  Sanchez will be sentenced on March 29, 2018 and faces mandatory life in prison for the murder.  He also faces a $250,000 fine, and up to five years of supervised release. U.S. District Judge Susan Watters presided over the trial.

 

Evidence presented at trial by Assistant United States Attorneys Lori Suek and John Sullivan showed that on April 17, 2016, the victim received a ride from Dimarzio Sanchez, Angelica Jo Whiteman, Frank James Sanchez, and others.  On the way to Crow Agency, an altercation ensued in the vehicle.  The vehicle stopped on Castle Rock Road.

 

The evidence showed that the victim was beaten when Dimarzio and Frank Sanchez retrieved a gas can from the trunk of the vehicle.  The victim was stripped naked, covered in gas and set on fire.  All the remaining occupants of the vehicle then left the scene.  The victim remained in the field for approximately fourteen hours until discovered and given emergency medical treatment.  The victim, who suffered third degree burns and severe frostbite of the legs, was hospitalized in Salt Lake City until pronounced dead on June 28, 2016. 

 

U. S. Attorney Kurt Alme stated, “We are pleased with the jury’s verdict.  It is the result of hard work by Assistant U. S. Attorneys Lori Suek and John Sullivan, FBI and BIA law enforcement; and the victim and witness staff and other staff of the FBI and BIA and the U. S. Attorney’s Office.  Our sympathies go out to the victim’s family and the Crow tribal community for their loss.”

 

Co-defendant Angelica Jo Whiteman, 19 of Lame Deer, pleaded guilty to aiding and abetting first-degree murder on August 30, 2017.  She is scheduled to be sentenced on January 3, 2018 and is facing life imprisonment, a $250,000 fine and five years of supervised release.   Co-defendant Frank James Sanchez, 19 of Lame Deer, pleaded guilty to misprision of a felony and accessory after the fact on March 14, 2017.  Sanchez is scheduled to be sentenced on January 18, 2018 and is facing maximum punishment of fifteen years in prison, $125,000 fine and three years supervised release.

 

The case was a cooperative investigative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.

MISSOULA - Yancy Lee McCrea, 31 of Missoula, was sentenced today to 132 months in prison followed by five years of supervised release after pleading guilty to possession with intent to distribute methamphetamine. United States District Judge Dana L. Christensen handed down the sentence.

 

On June 3, 3016, law enforcement officers found Yancy McCrea, a Montana State fugitive, in his vehicle.  They searched the car and seized approximately 95.9 grams of pure methamphetamine, two handguns, four magazines, 112 rounds of ammunition, and $3,350 in cash.  McCrea pleaded guilty to possession with intent to distribute methamphetamine in August of this year. 

 

The case was prosecuted by Assistant U.S. Attorney Tara Elliott and investigated by the Northwest Drug Task Force and the United States Marshals Service. 

 

The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana.  A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime.  Today’s sentencing is part of the Project Safe Neighborhoods program.

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

 

Appearing before U.S. Magistrate Cavan in Billings on November 30, 2017 and entering pleas of Not Guilty were:

 

• ROBERT CHARLES SCOTT, a 37-year-old resident of Billings, appeared on charges of felon in possession of a firearm, and possession of a firearm by a person under a domestic order.  If convicted of the most serious charge contained in the indictment, SCOTT faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-134

 

Appearing before U.S. Magistrate Cavan in Billings on November 28, 2017 and entering pleas of Not Guilty were:

 

• CHRISTOPHER RICHARD MUNDT, a 27-year-old resident of Billings, appeared on charges of robbery affecting commerce.  If convicted of the charge contained in the indictment, MUNDT faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Billings Police Department.  PACER Case Reference.  17-132

 

• HEATHER LYNN STOUT, a 36-year-old resident of Billings, appeared on charges of felon in possession of a firearm, and possession of a stolen firearm.  If convicted of the most serious charge contained in the indictment, STOUT faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Probation Office.    PACER Case Reference.  17-137

 

Appearing before U.S. Magistrate Johnston in Great Falls on November 28, 2017 and entering pleas of Not Guilty were:

 

• RICHARD CEYNAR, a 34-year-old resident of Williston, North Dakota, appeared on charges of conspiracy to illegally hunt, kill, and traffic mountain lions, interstate transport and possession of illegally killed mountain lions and false labeling.   If convicted of the most serious charges contained in the indictment, CEYNAR faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the United States Fish and Wildlife Service.  PACER Case Reference.  17-18

 

• ERNEST JABLONSKY, a 51-year-old resident of Plains, appeared on charges of conspiracy to illegally hunt, kill, and traffic mountain lions, illegal sale of outfitted mountain lion hunts, and false labeling.   If convicted of the most serious charges contained in the indictment, JABLONSKY faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the United States Fish and Wildlife Service.  PACER Case Reference.  17-18

 

• MITCH THEULE, a 29-year-old resident of Townsend, appeared on charges of conspiracy to illegally hunt, kill, and traffic mountain lions, and illegal sale of outfitted mountain lion hunts. If convicted of the most serious charge contained in the indictment, THEULE faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the United States Fish and Wildlife Service.  PACER Case Reference.  17-18

 

• ANTONIO TODD TIGART, a 21-year-old resident of Great Falls, appeared on charges of prohibited person in possession of a firearm.   If convicted of the charge contained in the indictment, TIGART faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department.  PACER Case Reference.  17-75

 

Appearing before U.S. Magistrate Cavan in Billings on November 22, 2017 and entering pleas of Not Guilty were:

 

• LARRY DARNELL SIMS, a 44-year-old resident of Billings, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, SIMS faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-136

 

• ARSCENIO TONY NOT AFRAID, a 30-year-old resident of Hardin, appeared on charges of felon in possession of a firearm and ammunition, and possession of a unregistered firearm.  If convicted of the most serious charge contained in the indictment, NOT AFRAID faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-109

 

Appearing before U.S. Magistrate Cavan in Billings on November 21, 2017 and entering pleas of Not Guilty were:

 

• CHRISTINA ANN JACKSON, a 42-year-old resident of Boise, Idaho, appeared on charges of transportation of a person with intent to engage in criminal sexual activity.  If convicted of the charges contained in the indictment, JACKSON faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-117

 

• WHITEBIRD LIMPY, a 34-year-old resident of Lame Deer, appeared on charges of second degree murder.  If convicted of the charge contained in the indictment, LIMPY faces life in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation and the Bureau of India Affairs.  PACER Case Reference.  17-130

 

• DEREK DEXTER SHOULDERBLADE, a 23-year-old resident of Ashland, appeared on charges of second degree murder.  If convicted of the charge contained in the indictment, SHOULDERBLADE faces life in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-135

 

Appearing before U.S. Magistrate Johnston in Great Falls on November 14, 2017 and entering pleas of Not Guilty were:

 

• JAMES V. DAY, a 48-year-old resident of Thompson Falls, appeared on charges of conspiracy to illegally hunt, kill, and traffic mountain lions, and false labeling.   If convicted of the most serious charges contained in the indictment, DAY faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the United States Fish and Wildlife Service.  PACER Case Reference.  17-18

 

 

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

 

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

GREAT FALLS - The United States Attorney’s Office announced today that Mauri Gourneau was sentenced to 40 months in prison, four years of supervised release, and a $100 special assessment.  U.S. District Judge Brian Morris presided over the hearing.   

 

Gourneau previously entered a guilty plea to possession with intent to distribute methamphetamine.  In April 2017, Gourneau was stopped by the Montana Highway Patrol on US Highway 2.  Following a search of her vehicle and possessions, Gourneau was found in possession of a digital scale and a plastic baggie containing 76.7 grams of pure methamphetamine.  Gourneau was selling methamphetamine on the Fort Peck Indian Reservation, primarily in Poplar. 

 

In a sentencing memorandum filed in federal court, federal prosecutors noted, “The distribution of methamphetamine is crippling communities, including the Indian reservations. Possessing with the intent to distribute methamphetamine is an offense against society as a whole and the mere existence of methamphetamine is detrimental.”  It continued “[Gourneau’s] possession of over 70 grams of pure methamphetamine in alarming considering how many people could purchase from her and get high.” 

 

Judge Morris sentenced Gourneau to over three years in federal prison, with four years of supervised release to follow.  Because there is no parole in the federal system, Gourneau will likely serve all of the time imposed by the court.  In the federal system, Gourneau does have the opportunity to shorten the term of custody by earning credit for good behavior.  However, this reduction will not exceed 15% of the overall sentence.      

 

The Gourneau case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, Fort Peck Tribes Department of Law and Justice, Roosevelt County Sheriff’s Office, and other federal, state, and local agencies. 

 

The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana.  A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime.  Today’s sentencing is part of the Project Safe Neighborhoods program.

GREAT FALLS - The United States Attorney’s Office announced today that Deborah Joy Durand, a 55-year-old resident of Fruitland, Idaho, was sentenced to 15 months in prison, two years of supervised release, and ordered to pay $903,316.48 in restitution and forfeiture.  U.S. District Court Judge Brian Morris Morris presided over the sentencing hearing.  

 

At trial, the government presented the following evidence.  Durand had a back injury from her job at the Post Office.  She had back surgery and was unable to work for a period of time.  But instead of returning to work when capable, Durand obtained total disability status.  Special Agents from the U.S. Postal Service Office of Inspector General obtained evidence that Durand was feeding horses, lifting hay bales, jogging in the mornings, clearing land, running chainsaws, removing stumps from fallen trees, building fences, mowing the lawn every week, riding horses twice a week, and many other physically challenging activities. 

 

Durand also participated in other physical activities including a lengthy three-day kayaking trip where she paddled approximately 30 miles in open ocean water, among other strenuous physical activities. Durand claimed she could not sit or stand for long, and she was “totally sedentary.”  She even claimed she was unable to work in any capacity.  

 

At trial, Durand was convicted of four counts of fraud related to obtaining workers’ compensation benefits.  In total, Durand received over $664,828.16 based on her claims for workers’ compensation.  Of that amount, she received $238,488.32 for wages, despite having the ability to work at least a desk job at the Post Office. 

 

U.S. Attorney Kurt Alme stated, “The Federal Worker’s Compensation Program is there to help the truly injured.  The public should be assured that individuals who defraud that Program in Montana will be held accountable. I applaud the efforts of the USPS Office of Inspector General and Ryan Weldon of our office in bringing this case to justice.” 

 

This case was investigated by the USPS Office of Inspector General.  Acting Executive Special Agent-in-Charge Jeff Krafels said, “The majority of Postal Service employees are dedicated, hardworking, and trustworthy professionals who would never consider engaging in criminal conduct.  However, when attempts to defraud the Federal Workers’ Compensation Program arise, those acts will not be tolerated, and they will be vigorously investigated by the USPS Office of Inspector General.  The Workers’ Compensation Program is designed to ensure that individuals injured during the performance of their duties receive appropriate medical care and compensation.  The conviction and sentence in this case are a result of the commitment between the United States Attorney’s Office and the USPS Office of Inspector General, to ensure the integrity of the Federal Workers’ Compensation Program, and to hold those accountable for defrauding the program.”    

 

Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Durand will likely serve all of the time imposed by the court.  In the federal system, Durand does have the opportunity to shorten the term of custody by earning credit for good behavior.  However, this reduction will not exceed 15% of the overall sentence.     

GREAT FALLS – Ronald Ray Horner, 57, formerly of Walsenburg, CO, was sentenced today in federal court for transportation of child pornography.  On April 6, 2017, Horner was found guilty by a jury following a two-day trial.  U.S. District Court Judge Brian Morris sentenced Horner to 154 months in prison.  Following his release, Horner will be subject to supervised release for 7 years.  In addition, Horner is also required to forfeit his laptop computer. 

 

In her trial brief, Assistant U.S. Attorney Cyndee Peterson stated that on March 24, 2014, Ronald Horner was travelling north on I-15 and crossed the Coutts, Alberta border crossing into Canada.  Horner was sent to secondary inspection because he was acting suspiciously.  During secondary inspection, Canada Border Services agents inspected a Toshiba laptop computer belonging to Horner.  On the laptop were over 200 video and image files depicting child pornography.  The examiner also located Horner’s search history which showed Horner purposely sought out child pornography on the laptop.  The files included depictions of prepubescent children being sexually assaulted by adults.

 

Horner was indicted by a federal Grand Jury on May 4, 2016.  His trial was originally scheduled to commence on October 17, 2016, and Horner was released on conditions pending his trial including electronic monitoring.  In September 2016, Horner cut his ankle bracelet, left a suicide note and fled the United States.  The United States Marshals Service located the defendant in Uruguay.  Horner returned to the United States in February 2017 to stand trial.

 

Several Canadian law enforcement agencies investigated the case including the Southern Alberta Internet Child Exploitation Unit, Royal Canadian Mounted Police, and Canada Border Services Agency.  The United States DHS-Homeland Security Investigations and United States Marshals Service assisted the Canadian authorities with the investigation including the subsequent apprehension of Horner. 

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

 

Appearing before U.S. Magistrate Cavan in Billings on November 17, 2017 and entering pleas of Not Guilty were:

 

• KEVIN RAYMOND RUCKS, a 56-year-old resident of Dickinson, North Dakota, appeared on charges of distribution of methamphetamine.  If convicted of the charge contained in the indictment, RUCKS faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  17-08

 

Appearing before U.S. Magistrate Cavan in Billings on November 14, 2017 and entering pleas of Not Guilty were:

 

• MICHAEL JASON TORREZ, a 44-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering.  If convicted of the most serious charges contained in the indictment, TORREZ faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the FBI Task Force.  PACER Case Reference.  17-124

 

• DUSTIN LEE WOLFF, a 33-year-old resident of Missoula, appeared on charges of conspiracy to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, WOLFF faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the FBI Task Force.  PACER Case Reference.  17-125

 

Appearing before U.S. Magistrate Cavan in Billings on November 13, 2017 and entering pleas of Not Guilty were:

 

• IRA LEFTHAND, JR., a 42-year-old resident of Lodge Grass, appeared on charges of assault resulting in serious bodily injury.  If convicted of the charge contained in the indictment, LEFTHAND faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-115

 

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

 

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

BILLINGS – The United States Attorney’s Office for the District of Montana, through its Joint Montana Human Trafficking Task Force, is hosting a meeting and training on the status of human trafficking for the regional human trafficking task forces from across the state.  The training is in collaboration with the U.S. Department of Justice’s Office for Victims of Crime Training and Technical Assistance Center based in Washington, DC, the Laboratory to Combat Human Trafficking based in Colorado, and the Yellowstone County Area Human Trafficking Task Force.   The training will take place at the U.S. Attorney’s Office in Billings and at the Billings Public Library on November 14, 2017.  The training is open to registered law enforcement personnel and others affiliated with the state and regional task forces.  An evening session at Rocky Mountain College is open to the public and to the press.

 

The morning meeting and training is designed to discuss the current status of Montana’s state and regional task forces, as well as current trends, data, and research in human trafficking.  Regional task forces in Montana include Missoula, Great Falls and Yellowstone County, with new task forces being established in Bozeman and Kalispell.  A primary goal of the training is to discuss how each task force is operating through an assessment of their current operations, identification of potential gaps or areas for improvement, and establishing goals for each task force in the fight against human trafficking in Montana. 

 

The afternoon session is dedicated to the Colorado Project, a product of the Laboratory to Combat Human Trafficking in Colorado.  The Colorado Project was a research-based initiative in Colorado about human trafficking that then created a “replicable model for communities and states to utilize” and “establish a baseline of promising practices to understand what is working to combat human trafficking in the areas of prevention, protection, prosecution, and partnerships” (commonly referred to as the “4 Ps”).  

 

This meeting and training builds off of several human trafficking trainings held in Montana over the last two years.  This includes trainings in March 2016 held in Missoula and in May 2017 in Billings designed for law enforcement and other personnel in recognizing, investigating, and prosecuting human trafficking in Montana. 

 

A community event is being held in the evening at Rocky Mountain College.  The evening session, led by the Yellowstone County Area Human Trafficking Task Force, the FBI, and Deliver Fund is titled “Technology and Human Trafficking:  Parents and Teachers Protecting Children in the Digital Age.”  The event is from 6:00-8:00 PM at Rocky Mountain College’s Fortin Center.  All members of the community are invited. 

 

The morning and afternoon training is closed the public and the press.  The evening session is open to the public and the press. 

HELENA - The United States Attorney’s Office announced today that 67-year old William Kent Ross of Whitehall was sentenced to 15 months in prison, three years of supervised release, and a $100 special assessment.  U.S. District Judge Charles C. Lovell presided over the hearing.   

 

In August 2016, Ross possessed six firearms at his Whitehall, Montana residence.  Local law enforcement notified ATF of Ross’s firearm possession after their early August encounter at his residence when he refused to provide a DNA sample in compliance with this sex offender registration requirements.  The officer noticed two rifles in a gun cabinet with glass doors and the keys dangling from the lock.  The officer noticed a second gun cabinet inside the residence.  The six firearms included two revolvers (one was loaded), three rifles (one was loaded), and one shotgun. Ross has an extensive criminal history that includes prior sex crimes involving children and absconding from supervision.

 

The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson County Sheriff’s Office.

 

The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana.  A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime.  Today’s sentencing is part of the Project Safe Neighborhoods program.

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

 

Appearing before U.S. Magistrate Johnston in Great Falls on November 8, 2017 and entering pleas of Not Guilty were:

 

• BRIAN WALTER WEBER, a 41-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute controlled substances, and possession with intent to distribute controlled substances.  If convicted of the most serious charge contained in the indictment, WEBER faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-76

 

Appearing before U.S. Magistrate Lynch in Missoula on November 8, 2017 and entering pleas of Not Guilty were:

 

• JASON MAXWELL MEHL, a 42-year-old resident of Missoula, appeared on charges of conspiracy to distribute heroin, and possession with intent to distribute heroin.  If convicted of the most serious charge contained in the indictment, MEHL faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the Montana Regional Violent Crime Task Force and the Federal Bureau of Investigation.  PACER Case Reference.  17-29

 

Appearing before U.S. Magistrate Cavan in Billings on November 7, 2017 and entering pleas of Not Guilty were:

 

• DONALD FRIEDLICH MILLS III, a 33-year-old resident of Billings, appeared on charges of tampering with consumer products, and acquiring fentanyl by misrepresentation, fraud, forgery, and deception.  If convicted of the most serious charge contained in the indictment, MILLS faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  17-120

 

• MIGUEL MORALES, a 25-year-old resident of San Jose, California, appeared on charges of conspiracy to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, MORALES faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the FBI Task Force.  PACER Case Reference.  17-108

 

Appearing before U.S. Magistrate Johnston in Great Falls on November 7, 2017 and entering pleas of Not Guilty were:

 

• CODY SWAN JACKSON, a 39-year-old resident of Browning, appeared on charges of involuntary manslaughter and attempted witness tampering.  If convicted of the most serious charge contained in the indictment, JACKSON faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-73

 

Appearing before U.S. Magistrate Cavan in Billings on November 6, 2017 and entering pleas of Not Guilty were:

 

• BRIAN ALBERT BENTZ, a 36-year-old resident of Billings, appeared on charges of conspiracy to possess with the intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, BENTZ faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-116

 

• CHARLES JESSE SANCHEZ, JR., a 52-year-old resident of Billings, appeared on charges of conspiracy to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, SANCHEZ faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the FBI Task Force.  PACER Case Reference.  17-121

 

Appearing before U.S. Magistrate Cavan in Billings on November 3, 2017 and entering pleas of Not Guilty were:

 

• MICHAEL CHAVEZ, JR., a 64-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charge contained in the indictment, CHAVEZ faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-122

 

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

 

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

MISSOULA - The United States Attorney’s Office announced today that Max Edward Samaniego, 27, of Bozeman, was sentenced to 10 months in prison, three years of supervised release, and a $100 special assessment.  Chief U.S. District Judge Dana L. Christensen presided over the hearing.   

 

On May 28, 2016, Samaniego possessed a Smith and Wesson 9mm pistol with an obliterated serial number in Bozeman, Montana.  The pistol was found after he was stopped for reckless driving. 

 

From June until August 2016, Samaniego possessed numerous firearms that were stolen from a Bozeman area residence.  Samaniego then traded four firearms to someone in Butte for a motorcycle.  Samaniego gave one firearm to a neighbor who helped him out.  Another firearm was given to a friend. 

 

The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bozeman Police Department, and the Gallatin County Sheriff’s Office.

 

The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana.  A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime.  Today’s sentencing is part of the Project Safe Neighborhoods program.

.

GREAT FALLS - Ethyl Lee Grant, Allen Shane Goss, and Carol Hall Bird appeared before U.S. Magistrate Judge John Johnston on November 8, 2017, at 10:00 a.m., in Great Falls, Montana.  The defendants face charges of Theft from an Indian Tribal Government Receiving Federal Funding and Wire Fraud.  The charges stem from the defendants allegedly embezzling federal funds while working at the Blackfeet Head Start Program.  The maximum available penalties for these offenses include up to 30 years in prison, $500,000 in fines, full restitution, and forfeiture. 

 

In outlining the charges, the indictment explains the purpose of the Head Start Program.  It was designed to help break the cycle of poverty, providing preschool children of low-income families with a comprehensive program to meet their emotional, social, health, nutritional, and psychological needs.  The Head Start and Early Head Start programs provide services to over a million children every year, in every U.S. state and territory, in farmworker camps, and in over 155 tribal communities.  The program is one of the longest-running programs attempting to address systemic poverty in the United States by intervening to aid children. 

 

The indictment explains that the Blackfeet Head Start Program received $8.0 million in federal funding during the period of the alleged embezzlement.  According to the indictment, the fraud arose because the defendants and “others yet to be named” fraudulently claimed over 7,800 hours in overtime and inappropriately received over $232,000 in federal funds from the Head Start Program during a 15-month timeframe. 

 

Trial is set for January 8, 2018 before United States District Judge Brian Morris, in Great Falls, Montana.  The case was investigated by the Federal Bureau of Investigation and U.S. Department of Health and Humans Services, Office of Inspector General.  

 

The indictment is merely a formal charging document.  It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.

 

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

 

Appearing before U.S. Magistrate Cavan in Billings on November 1, 2017 and entering pleas of Not Guilty were:

 

• STEVEN MARSHALL MELCHER, a 34-year-old resident of Billings, appeared on charges of felon in possession of firearm and ammunition.   If convicted of the charge contained in the indictment, MELCHER faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-119

 

Appearing before U.S. Magistrate Cavan in Billings on October 23, 2017 and entering pleas of Not Guilty were:

 

• DAVID DORROW ROUNDY, a 41-year-old resident of Laurel, appeared on charges of prohibited person in possession of a firearm, and possession of a stolen firearm.  If convicted of the most serious charge contained in the indictment, ROUNDY faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-112

 

Appearing before U.S. Magistrate Johnston in Great Falls on October 23, 2017 and entering pleas of Not Guilty were:

 

• BRANDON CORDELL BENNETT, a 43-year-old resident of Great Falls, appeared on charges of sexual exploitation of a child and receipt of child pornography.  If convicted of the most serious charge contained in the indictment, BENNETT faces 30 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Homeland Security Investigations and Great Falls Police Department.  PACER Case Reference.  17-68

 

 

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

 

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

MISSOULA - The United States Attorney’s Office announced today that Terry Lynn Sturdevant was sentenced to 30 months in prison, three years of supervised release, and a $100 special assessment.  Chief U.S. District Judge Dana L. Christensen presided over the hearing.   

 

On March 5, 2016, the Jefferson County Sheriff’s Office received a call about a fight between two brothers with a knife in Whitehall, Montana.  Sturdevant was fighting with his half-brother.  According to medical personnel, he had a short-barreled revolver that he was pointing at his half-brother and a friend during the argument.  Both Sturdevant and his half-brother sustained cuts during the fight. 

 

By the time deputies from the Jefferson County Sheriff’s Office arrived, Sturdevant had fled the house. Law enforcement officers found him in the backyard.  In the same area, they also found a .22 caliber revolver loaded with one spent round and four live rounds.  In 2009, Sturdevant was convicted of felony second degree burglary in the State of New York.

 

The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson County Sheriff’s Office.

 

The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana.  A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime.  Today’s sentencing is part of the Project Safe Neighborhoods program.

BILLINGS - The United States Attorney’s Office announced today that Bradlee Scott Ledford was sentenced to 36 months in prison, three years of supervised release, and a $100 special assessment.  U.S. District Judge Susan Watters presided over the hearing.   

 

On January 2, 2016, Livingston Police Department responded to an alarm at The Plaza strip in Livingston.  Ledford burglarized the Matt Long Photography Studio and Western Drug Store and Pharmacy.  He stole two handguns and $475.00 from the photo studio and approximately 470 various prescription pills from the pharmacy.  Ledford started in the photo studio, and then used one of the stolen handguns to smash the glass at Western Drug.  Both handguns taken from the studio were retrieved - one in the trash near the building and one in the backyard of someone who lived nearby. 

 

The Western Drug burglary was recorded on surveillance video, and from that video, police officers recognized Ledford in the act. The pharmacy supplied a list of the drugs and the amounts that were stolen.  The replacement cost for the stolen prescription drugs is approximately $1400.  There was also damage to the doors to enter the pharmacy and the store.  Ledford was previously convicted in 2015 of felony theft in Yellowstone County.

 

Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Ledford will likely serve all of the time imposed by the court.  In the federal system, Ledford does have the opportunity to shorten the term of custody by earning credit for good behavior.  However, this reduction will not exceed 15% of the overall sentence.      

 

The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Livingston Police Department, and the Drug Enforcement Administration.

 

The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana.  A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime.  Today’s sentencing is part of the Project Safe Neighborhoods program.

BILLINGS – Terry Lee Feller, a 58 year-old resident of Billings was sentenced today to 33 months in prison followed by 3 years supervised release after pleading guilty to possessing a stolen firearm.  U.S. District Judge Susan Watters handed down the sentence. 

 

The case arose when Feller, a career thief with more than fifteen convictions dating back to 1983, was released from state prison in April 2015 and moved into a home in the 4200 block of Arden Ave.  Shortly thereafter, homes in the neighborhood were burglarized.  One the burglary victims confronted Feller’s landlord who told the victim that she had noticed Feller bringing several items into the home and she did not know where the items came from.  The landlord allowed the neighbor/victim to search the home and she discovered several items of her missing property in a bedroom used by Feller.  The neighbor/victim contacted Billings Police Department.  When law enforcement arrived, they searched the home as well as a car that Feller was using.  The search uncovered a stolen 9 millimeter pistol.  Feller later admitted to law enforcement that he possessed the pistol and he knew it was stolen. 

 

The case was prosecuted by Assistant U.S. Attorney Jeffrey Starnes and investigated by the Billings Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

 

The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana.  A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime.  Today’s sentencing is part of the Project Safe Neighborhoods program.

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

 

Appearing before U.S. Magistrate Cavan in Billings on October 18, 2017 and entering pleas of Not Guilty were:

 

• RODNEY TOMMIE STEWART, a 31-year-old resident of Crow Agency, appeared on charges of domestic assault by a habitual offender.  If convicted of the charge contained in the indictment, VANCE faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  14-20

 

Appearing before U.S. Magistrate Cavan in Billings on October 16, 2017 and entering pleas of Not Guilty were:

 

• VERONICA RAYE VANCE, a 24-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine.  If convicted of the charge contained in the indictment, VANCE faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  16-83

 

Appearing before U.S. Magistrate Cavan in Billings on October 10, 2017 and entering pleas of Not Guilty were:

 

• TERRI RAYE BIXBY, a 46-year-old resident of Colstrip, appeared on charges of conspiracy to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the charge contained in the indictment, BIXBY faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  17-70

 

Appearing before U.S. Magistrate Johnston in Great Falls on October 10, 2017 and entering pleas of Not Guilty were:

 

• BRIAN RUSSELL BLACKWELL, a 43-year-old resident of Helena, appeared on charges of failure to register.  If convicted of the charge contained in the indictment, BLACKWELL faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the United States Marshals Service.  PACER Case Reference.  17-13

 

• BRADLEY THORPE THOMPSON, a 32-year-old resident of Great Falls, appeared on charges of escape.  If convicted of the charge contained in the indictment, THOMPSON faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the United States Marshals Service.  PACER Case Reference.  17-70

 

Appearing before U.S. Magistrate Cavan in Billings on October 5, 2017 and entering pleas of Not Guilty were:

 

• SHANE MICHAEL COURTNEY, a 49-year-old resident of Anaconda, appeared on charges of receipt/distribution of child pornography, and possession of child pornography.  If convicted of the most serious charges contained in the indictment, COURTNEY faces 20 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, and the Internet Crimes Against Children Task Force. PACER Case Reference.  17-18

 

Appearing before U.S. Magistrate Cavan in Billings on October 4, 2017 and entering pleas of Not Guilty were:

 

• MATTHEW THOMAS JORDAN, a 40-year-old resident of Harlowton, appeared on charges of possession of an unregistered firearm.  If convicted of the charge contained in the indictment, JORDAN faces 10 years in prison, $10,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference.  17-103

 

Appearing before U.S. Magistrate Cavan in Billings on October 3, 2017 and entering pleas of Not Guilty were:

 

• JEREMY JAMES McCUNE, a 42-year-old resident of Shepherd, appeared on charges of wire fraud.  If convicted of the most serious charges contained in the indictment, McCUNE faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation. PACER Case Reference.  17-105

 

Appearing before U.S. Magistrate Cavan in Billings on October 2, 2017 and entering pleas of Not Guilty were:

 

• TIFFANEY ANN BOLAND, a 51-year-old resident of Sidney, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, BOLAND faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the State of Montana Division of Criminal Investigations. PACER Case Reference.  17-100

 

• ANTHONY CORDELL COUTURE, a 48-year-old resident of Sidney, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, COUTURE faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the State of Montana Division of Criminal Investigations. PACER Case Reference.  17-100

 

• TODD MICHAEL HARRIS, SR., a 52-year-old resident of Billings, appeared on charges of conspiracy to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, HARRIS faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.  The case was investigated by the FBI Task Force. PACER Case Reference.  17-102

 

• JULIUS ANDREW KOCH, a 35-year-old resident of Billings, appeared on charges of felon in possession of firearm and ammunition, and possession of a stolen firearm.  If convicted of the most serious charge contained in the indictment, KOCH faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference.  17-104

 

• YOLANDA MARIE MEZA, a 30-year-old, residency unknown, appeared on charges of distribution of methamphetamine.  If convicted of the most serious charge contained in the indictment, MEZA faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the Eastern Montana HIDTA. PACER Case Reference.  17-106

 

• BOBBY PAYNE, a 45-year-old resident of Sidney, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, PAYNE faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the State of Montana Division of Criminal Investigations. PACER Case Reference.  17-100

 

Appearing before U.S. Magistrate Cavan in Billings on September 27, 2017 and entering pleas of Not Guilty were:

 

• ERIC WAYDE MITCHELL, a 22-year-old resident of Baker, appeared on charges of possession of a firearm not registered in the National Firearms Registration and Transfer Record, and prohibited person in possession of a firearm.  If convicted of the most serious charge contained in the indictment, MITCHELL faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference.  17-107

 

Appearing before U.S. Magistrate Johnston in Great Falls on September 27, 2017 and entering pleas of Not Guilty were:

 

• BEN COLE BUCKLES, SR., a 49-year-old resident of Wolf Point, appeared on charges of sexual abuse of a minor.  If convicted of the charge contained in the indictment, BUCKLES faces 15 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Federal Bureau of Investigation. PACER Case Reference.  17-66

 

Appearing before U.S. Magistrate Lynch in Missoula on September 26, 2017 and entering pleas of Not Guilty were:

 

• ALICIA ROSE ROONEY, a 42-year-old resident of Boise, Idaho, appeared on charges of embezzlement and theft of labor union assets, and embezzlement and theft from employee benefit plan.  If convicted of the most serious charge contained in the indictment, ROONEY faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Department of Labor Office of Inspector General.  PACER Case Reference.  17-26

 

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

 

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

GREAT FALLS – Robert David Linn, Jr., a 52-year-old resident of Great Falls, was sentenced today to 300 months in prison followed by 5 years supervised release after pleading guilty to possession with intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime in July.  U.S. District Judge Brian Morris handed down the sentence.

 

In late 2015, the Russell Country Drug Task Force began investigating the defendant, Robert David Linn, Jr., for trafficking methamphetamine in Great Falls, Montana.  Through further investigation, law enforcement learned that the defendant typically sold a pound of methamphetamine for $15,000, or an ounce of methamphetamine for $1,250.  On occasion, the defendant sold smaller quantities of heroin.  Law enforcement also acquired information that the defendant frequently traded methamphetamine for stolen property. 

 

Throughout 2016 and 2017, law enforcement seized approximately five pounds of actual methamphetamine from various individuals in Great Falls who had all received their methamphetamine directly from the defendant.  On April 8, 2017, law enforcement arrested the defendant after receiving information that he had recently received approximately 30 pounds of methamphetamine through delivery by a shipping company. 

 

Following the defendant’s arrest, law enforcement executed numerous search warrants.  First, law enforcement went to a home in Great Falls where agents had information that the defendant stored his methamphetamine supply.  There, agents seized 4359.2 grams, or approximately ten pounds, of actual methamphetamine from a concealed location in the home.  Agents also seized 13 firearms located in extremely close proximity to the methamphetamine.  These firearms included two semi-automatic rifles, four revolvers, and seven semi-automatic pistols.  Upon further examination, two of the firearms possessed obliterated serial numbers, and agents discovered three of the firearms were stolen.  Law enforcement also seized 202.2 grams of actual methamphetamine from the defendant’s truck.  Lastly, in addition to the methamphetamine seizures, agents recovered over $250,000 in cash proceeds from the defendant and his associates. 

 

The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by the Russell Country Drug Task Force, Homeland Security Investigations, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms, and Explosives.

 

The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana.  A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime.  Today’s sentencing is part of the Project Safe Neighborhoods program.

GREAT FALLS-- A Great Falls, Montana man was sentenced today for possession of child pornography.  United States District Judge Brian M. Morris sentenced Manuel David Orozco, 42, to 120 months in prison, 10 years of supervised release, and a $5,100 special assessment.  When he was arrested, Orozco was a Tier I sex offender, because he had been convicted of sex offenses against children in the state of Oregon. 

 

The charge against Orozco was the result of an investigation by the Department of Homeland Security, the Intermountain West Regional Computer Forensic Laboratory Computer Analysis Response Team, the Great Falls Police Department, Cascade County, and the Internet Crimes Against Children Task Force.  Assistant United States Attorney Tom Bartleson prosecuted the case.

 

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

HELENA – Barbara Jean Satrom, 33, of Missoula was sentenced today to serve 27 months in prison and five years on supervised release for her participation in a conspiracy to possess with the intent to distribution and distribution of methamphetamine.  The charge stemmed from a one-count superseding information filed in May of this year.  Satrom entered a guilty plea to the single count in June.  U.S. District Court Judge Charles C. Lovell issued the sentence.

 

Judge Lovell previously sentenced Satrom’s codefendants on similar charges this summer.  Tillian Jay Gonzalez, 33, of Yakima, Washington was sentenced to 130 months in prison and five years’ supervised release on June 15, 2017.  Rebecca Jean Belling Frankforter, 33, of Helena was sentenced on June 20, 2017, to 40 months in prison and five years supervised release. 

 

Had the case proceeded to trial, the United States was prepared to prove that during the month of May 2016, controlled purchases of methamphetamine were made from Tillian Jay Gonzalez, Barbara Satrom, and Rebecca Frankforter in Missoula and Helena, Montana.  Gonzalez brought methamphetamine from Washington to Montana where Satrom and Frankfurter sold the methamphetamine for Gonzalez.  Gonzalez also sold methamphetamine himself.  The investigation ended with a pursuit of Gonzalez from Mineral County, Montana, to Shoshone County, Idaho.

 

On May 3, 2016, Barbara Satrom sold four ounces of methamphetamine to an undercover officer in Missoula, Montana.  It was later determined through the course of the investigation that Gonzalez was Satrom’s supplier of the methamphetamine. 

 

On May 6, 2016, Gonzalez sold four ounces of methamphetamine to the undercover officer in Missoula, Montana.  On May 7, 2016, Gonzalez sold another four ounces to the undercover officer in Missoula, Montana. 

 

On May 10, 2016, an undercover officer purchased eight ounces of methamphetamine from Gonzalez and Frankforter in Helena, Montana.  Arrangements were made between the undercover officer and Gonzalez, for Gonzalez to deliver one pound of methamphetamine to the undercover officer on May 15, 2016.

 

On May 15, 2016, law enforcement attempted to stop Gonzalez as he entered Montana.  A vehicle pursuit took place.  After Gonzalez stopped his vehicle in Shoshone County, Idaho, he fled on foot.  He was apprehended after he threw approximately four pounds of methamphetamine into the woods.  Law enforcement seized the methamphetamine. 

 

All of the methamphetamine purchased and recovered was sent to the DEA laboratory for testing.  It was all 97 to 99 percent pure.

 

The case was investigated by the Missouri River Drug Task Force, the Federal Bureau of Investigation, and the Montana Division of Criminal Investigation, with the assistance of the Drug Enforcement Administration laboratory.  The case was prosecuted by Assistant U.S. Attorney Paulette Stewart.

HELENA— A Kennewick, Washington man was sentenced today for conspiring to distribute methamphetamine.  United States District Judge Sam E. Haddon sentenced Hector Ricardo Gonzalez, 30, to 260 months in prison, 5 years of supervised release, and a $100 surcharge.  Gonzalez was part of a scheme by multiple conspirators to distribute very large amounts of methamphetamine through Deer Lodge, Montana each month between January 2016 and January 2017.  Members of the conspiracy, including Gonzalez, possessed firearms in connection with the drug trafficking crimes they committed in Montana.

 

Other members of the conspiracy included Jeff Allen Trask, Chase Ryan Storlie, and Christian Jesus Ruiz.  The court previously sentenced Trask to 54 months in prison and five years of supervised release for his role in the conspiracy.  The two remaining members of the conspiracy, Storlie and Ruiz, face sentencing on January 3, 2018.

 

Gonzalez and Ruiz’s involvement in the conspiracy came to a sudden end on January 24, 2017, when the authorities arrested them in Mineral County, Montana, in possession of 20 pounds of methamphetamine.  The methamphetamine was destined for Deer Lodge.

 

The charges against Gonzalez and his codefendants are the result of an investigation by the Montana Division of Criminal Investigations, the Missouri River Drug Task Force, the Helena Police Department, the Lewis and Clark County Sheriff’s Department, the Federal Bureau of Investigation, the Mineral County Sheriff’s Department, the Powell County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Montana Highway Patrol, and the Drug Enforcement Administration.  Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Tom Bartleson prosecuted the case.

 

United States Attorney Kurt Alme explained, “This is an important step in the ongoing effort to stop the organized, unlawful distribution of controlled substances coming to Montana from other states and countries.  The case is particularly important because the defendants possessed firearms in connection with drug trafficking, a prescription for violent crime of the sort the United States Department of Justice is committed to ridding from our communities.  The Court’s sentence today sends the message that those who bring illegal drugs to Montana—particularly those who do so while armed—will be caught, prosecuted, and imprisoned.”  Alme also praised the collaborative work of the law enforcement agencies and prosecutors in the case.

 

The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana.  A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime.  Today’s sentencing is part of the Project Safe Neighborhoods program.

 

BILLINGS – Steven Neil Hopper, 29, of Billings was sentenced today to 70 months in prison and three years on supervised release for being a felon in possession of firearms.  The charge stemmed from a one-count indictment in April of this year.  Hopper entered a guilty plea to the single count in June.  U.S. District Court Judge Susan Watters issued the sentence.

 

Had the case proceeded to trial, the United States was prepared to prove that on June 5, 2016, staff at a motel in Laurel, Montana, cleaned out Hopper’s room and found two rifles, ammunition, and drug paraphernalia.  Hopper was interviewed and admitted that he found the two firearms in his motel room.  He handled them and wrapped them up.  He had the only key to the motel room and everything in the room was his – except the firearms and drug paraphernalia.  He could not explain how the firearms got into the motel room.

 

According to witnesses in the case, Hopper possessed two firearms when Hopper stayed at the Days Inn in Billings, days before he moved into the Laurel motel, and he possessed the same two firearms in his Laurel motel room.   The firearms and ammunition taken into law enforcement custody in this case are: a Ruger .22 caliber semi-automatic rifle, a Remington .22 caliber semi-automatic rifle, and 135 rounds of assorted .40 caliber, .38 caliber, and 12 gauge ammunition.

 

Hopper was previously convicted of felony Impersonating a Public Servant and felony Robbery in violation of Montana law in February 2016 in Yellowstone County. 

 

The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana.  A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime.  Today’s sentencing is part of the Project Safe Neighborhoods program.

 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laurel Police Department, along with the Montana Probation and Parole Office. The case was prosecuted by Assistant U.S. Attorney Paulette Stewart.

 

Today, Attorney General Jeff Sessions announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.

 

In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.

 

In a statement on the program, the Attorney General said:

 

"According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action.

 

“Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work.

 

“Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy.

 

“Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer."

 

The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:

 

-Additional Assistant United States Attorney Positions to Focus on Violent Crime – The Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.

 

-More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.

 

-Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes  creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions.  Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.

 

-Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others.  To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources. 

 

-Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts.  These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO. 

 

-Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year.  Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.

 

In Montana, according to the FBI’s Uniform Crime Reporting Program, violent crime increased each year from 2010 to 2016 resulting in a total increase of almost 35%.

 

Montana U. S. Attorney Kurt Alme explained, “Our office plans to reach out to federal, state, local and tribal law enforcement and community groups to identify the most significant violent crime problems and locations in Montana, and work together to try to prevent violent crime, ensure that the most violent criminals are prosecuted and make our communities safer.”

 

“The increase of substance abuse in Montana is fueling violent crimes at a frightening rate, tearing apart once safe and peaceful communities,” said Montana Attorney General Tim Fox. “I look forward to working with the U.S. Attorney’s office to reinvigorate Project Safe Neighborhood, cracking down on violent offenders and removing them from Montana communities.” 

 

Montana Department of Justice’s Division Criminal Investigation Administrator Bryan Lockerby stated, “My career has spanned over three decades in law enforcement and I’ve personally witnessed the growth of illegal drugs associated with the increase in violence, particularly with firearms.  The past federal initiative of Project Safe Neighborhood had a direct impact on violent criminal offenders and I am confident that this announcement is a major step forward in providing additional tools to keep our communities safe."

 

Billings Police Chief Rich St. John added, “I am pleased to hear today that the Department of Justice is reinvigorating the Project Safe Neighborhood program to help us deal with the rising problem of violent crime in Billings.  As I learned years ago, PSN can provide strong tools for taking the most violent offenders off of our streets and out of our community.  I look forward to working with the U. S. Attorney’s Office to help focus our efforts on a common goal—a safer, less violent Billings where law-abiding citizens can continue to thrive.”

 

For questions related to the Montana Attorney General’s Office, please contact Communications Director Eric Sell at (406)444-2031.

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

 

Appearing before U.S. Magistrate Cavan in Billings on September 21, 2017 and entering pleas of Not Guilty were:

 

• JOSHUA ABRAM DISKIN, a 47-year-old resident of Yuba City, California, appeared on charges of possession with intent to distribute methamphetamine.  If convicted of the charge contained in the indictment, DISKIN faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Montana HIDTA.  PACER Case Reference.  17-60

 

• RONALD DUANE KNAUB, a 68-year-old resident of Shepherd, appeared on charges of felon in possession of a firearm and ammunition.  If convicted of the charge contained in the indictment, KNAUB faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-99

 

Appearing before U.S. Magistrate Johnston in Great Falls on September 20, 2017 and entering pleas of Not Guilty were:

 

• BRITTANY MARTELL, a 25-year-old resident of Poplar, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, MARTELL faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.   PACER Case Reference.  17-61

 

Appearing before U.S. Magistrate Johnston in Great Falls on September 19, 2017 and entering pleas of Not Guilty were:

 

• ROBERT ALAN CONNOLLY, a 67-year-old resident of Ranson, West Virginia, appeared on charges of failure to register/update registration as a sexual offender.  If convicted of the charge contained in the indictment, CONNOLLY faces 10 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the United States Marshals Service.   PACER Case Reference.  17-60

 

• LANDON DUPREE, a 31-year-old resident of Poplar, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, DUPREE faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.   PACER Case Reference.  17-61

 

• STEPHAN DUANE KOROL-LOCKE, a 44-year-old resident of Great Falls, appeared on charges of attempted coercion and enticement.  If convicted of the charge contained in the indictment, KOROL-LOCKE faces 10 years in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by Homeland Security Investigations and Great Falls Police Department.   PACER Case Reference.  17-62

 

• JODY DOWD WOOTEN, a 50-year-old resident of Sacramento, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, WOOTEN faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by Homeland Security Investigations, Russell Country Drug Task Force, and Lewistown Police Department.  PACER Case Reference.  17-65

 

Appearing before U.S. Magistrate Johnston in Great Falls, on September 14, 2017 and entering pleas of Not Guilty were:

 

• EDWARD DEAN CASSIDY, a 50-year-old resident of Browning, appeared on charges of abusive sexual contact.  If convicted of the most serious charge contained in the indictment, CASSIDY faces life in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Federal Bureau of Investigation. PACER Case Reference.  17-59

 

• LEWIS PATRICK MARCHAND, a 57-year-old resident of Heart Butte, appeared on charges of failure to register.  If convicted of the charge contained in the indictment, MARCHAND faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the United States Marshals Service. PACER Case Reference.  17-63

 

• JONATHAN PAUL SCHULZ, a 48-year-old resident of Conrad, appeared on charges of felon in possession of firearms and ammunition.  If convicted of the charge contained in the indictment, SCHULZ faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation. PACER Case Reference.  17-64

 

Appearing before U.S. Magistrate Cavan in Billings on September 12, 2017 and entering pleas of Not Guilty were:

 

• MISTY NICOLE MARCUM, a 38-year-old resident of Bakersfield, California, appeared on charges counterfeiting and forging obligations or securities of the United States, and passing or uttering counterfeit obligations or securities of the United States.  If convicted of the most serious charge contained in the indictment, MARCUM faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the U.S. Secret Service.  PACER Case Reference.  16-99

 

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

 

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

 

MISSOULA – Domenick James Howard, 29, formerly of Helena, Montana, was sentenced today in federal court for possession of child pornography.  On May 31, 2017, Howard entered a plea of guilty to the charge.  U.S. District Court Senior Judge Charles C. Lovell sentenced Howard to 120 months in prison.  Following his release, Howard will be subject to lifetime supervised release.  Howard was also required to forfeit two computers and an external storage device that he used to commit the crime. 

 

In the court filings, Assistant U.S. Attorney Cyndee L. Peterson stated that Howard had previously been convicted of a sex offense against a child.  Specifically, in November 2012, Howard was convicted of felony sexual assault for committing a hands-on sex offense against a 6-year old in Ravalli County.  Because of that conviction, Howard was sentenced to the Montana Department of Corrections for 20 years, with 15 of those years suspended.  In December 2014, Howard was conditionally released to the community and was being supervised by the Montana Probation and Parole.  On April 13, 2016, Howard was arrested for probation violations and his electronic devices were seized and searched.  An FBI Forensic Examiner examined Howard’s devices, and located image and video files depicting children engaged in sexually explicit conduct on Howard’s desktop computer, laptop computer, and a thumb drive.  The United States said that at least one file depicted a female under the age of 12 involved in a sexual act with an adult male.

 

The investigation was a cooperative effort between the Helena Police Department, the Montana Internet Crimes Against Children (ICAC) Task Force,  and the Federal Bureau of Investigation.

GREAT FALLS - The United States Attorney’s Office announced that Zachary Brooke Roberts and Martin Gasper Mazzara were sentenced to 20 months of prison and are required to pay $2.5 million in restitution to the Chippewa Cree Tribe.  The shell company of Encore Services, LLC, was also convicted, and the court ordered it to pay the same amount of restitution.  The sentencing occurred on August 25, 2017, before U.S. District Judge Brian Morris, in Great Falls, Montana.    

Roberts and Mazzara, through a backdated and inflated 15% Fee Agreement, were paid over $3.5 million from the Chippewa Cree Tribe.  Roberts and Mazzara then funneled money from Nevada back to Montana to Ideal Consulting.  Ideal Consulting was a shell company used to distribute payments to Neal Rosette and Billi Anne Morsette, both of whom were tribal officials.  This scheme was created to conceal from the tribal people the $1.2 million in kickbacks to Rosette and Morsette.  Both Rosette and Morsette were previously sentenced for receiving bribes from Roberts and Mazzara.    

Roberts and Mazzara engaged in the above scheme by inflating their invoices from 10% to 15%, submitting those false invoices to the Chippewa Cree Tribe, and then funneling and concealing the 5% that went back to the shell company of Ideal Consulting.  In order to perpetuate the scheme, Roberts and Mazzara generated false invoices from Encore Services, LLC, and they also accepted false invoices from Ideal Consulting.  For example, Ideal Consulting submitted invoices for “consulting” services to Roberts and Mazzara, but those invoices were bogus and no consulting services ever occurred from Ideal Consulting.

When the above scheme was discovered, Roberts and Mazzara, in October of 2012, backdated a “Joint Venture Agreement” by over 15 months to act as cover for the money paid to the tribal officials through Ideal Consulting.   

In a sentencing memo filed in federal court, Assistant U.S. Attorneys Ryan G. Weldon and Bryan T. Dake stated, “This case is about an insatiable appetite to make money at the expense of others.  The defendants initially arrived on the Rocky Boy’s Indian Reservation to use tribal sovereignty to circumvent maximum interest rates and other regulations under state laws.  When that failed, the parties instead began to victimize the tribal people.  In doing so, the defendants and others concocted a scheme to funnel money back to tribal officials, all of which totaled $1.2 million.”  Weldon and Dake explained that it takes two sides to generate a corrupt transaction—a corrupt public official and a corrupt businessman.  Both must be held accountable because both are essential to the creation of a corrupt transaction.  “Such accountability also acts as a deterrent to remind future businessmen that sharp business tactics, when dealing with public officials, can easily end in the loss of everything—reputation, fortune, and freedom.” 

The convictions of Roberts and Mazzara were for conspiracy to commit wire fraud and engaging in monetary transactions in property derived from specified unlawful activity.  The convictions and sentencing of these defendants are the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts, and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011.  These cases were investigated by the Department of Interior, Office of Inspector General, Health and Human Services, Office of Inspector General, and the Internal Revenue

GREAT FALLS - The United States Attorney’s Office announced a federal court convicted Deborah Joy Durand of False Statements to Obtain Federal Employees’ Compensation Benefits, Wire Fraud, False Claims Relating to Workers’ Compensation Benefits, and Theft of Government Property.   U.S. District Judge Brian Morris presided over the 3-day trial.

At trial, the government presented evidence that Durand had a back injury from her job at the Post Office.  She had back surgery and was unable to work for a period of time.  Instead of returning to work when capable, Durand lied to her doctors, embellished her symptoms, and ultimately obtained total disability.  Agents from the Post Office conducted surveillance and saw that Durand was feeding horses, lifting hay bales, jogging in the mornings, clearing land, running chainsaws, removing stumps from fallen trees, building fences, mowing the lawn every week, riding horses twice a week, and many other physically challenging activities. 

All total, Durand received over $693,403.63 based on her claims for workers’ compensation.  Of that amount, she received $268, 892.18 for wages, despite having the ability to work at least a desk job at the Post Office. 

In order to further prove the case, undercover federal agents called Durand and told her she won a free kayaking trip.  During the ruse kayaking trip, Durand paddled approximately 30 miles in open ocean water over a three-day period.  During the trip, Durand hiked, lifted heavy objects, and karate-kicked and judo-chopped an object held by an undercover federal agent.  All of these activities were captured on video. 

Two months after the kayaking trip, agents conducted a follow-up appointment with Durand to identify if she could work for the Post Office.  Durand had no idea that the appointment was an undercover operation.  During the interview, Durand claimed she could not sit or stand for long, and she was “totally sedentary.”  She even claimed she was unable to work in any capacity. 

This case was investigated by the United States Postal Service Office of Inspector General.  Executive Special Agent in Charge Joanne Yarbrough said, “The majority of Postal Service employees are dedicated, hardworking, and trustworthy professionals who would never consider engaging in criminal conduct.  However, when attempts to defraud the Federal Workers’ Compensation Program arise, those acts will not be tolerated, and they will be vigorously investigated by the USPS Office of Inspector General.  The Workers’ Compensation Program is designed to ensure that individuals injured during the performance of their duties receive appropriate medical care and compensation. The conviction in this case is a result of the commitment between the United States Attorney’s Office, and the USPS Office of Inspector General, to ensure the integrity of the Federal Workers’ Compensation Program, and to hold those accountable for defrauding the program.”

Sentencing is set for November 30, 2017, at 1:30 p.m., at the Missouri River Courthouse, in Great Falls, Montana.

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

Appearing before U.S. Magistrate Cavan in Billings on August 17, 2017 and entering pleas of Not Guilty were:

• MICHAEL SHANE DILLER, a 23-year-old resident of Billings, appeared on charges of conspiracy to possess with the intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, DILLER faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-91

Appearing before U.S. Magistrate Cavan in Billings on August 14, 2017 and entering pleas of Not Guilty were:

• TIMOTHY SCOTT BISHOP, a 44-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine.  If convicted of the charge contained in the indictment, BISHOP faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release.  The case was investigated by the FBI Task Force.  PACER Case Reference.  17-88

• CRYSTAL DAWN SIMPSON, a 33-year-old resident of Grass Range, appeared on charges of conspiracy to manufacture methamphetamine. If convicted of the charge contained in the indictment, SIMPSON faces 20 years in prison, $1,000,000 in fines, and 4 years supervised release.  The case was investigated by the Bureau of Land Management.  PACER Case Reference.  17-97

Appearing before U.S. Magistrate Cavan in Billings on August 7, 2017 and entering pleas of Not Guilty were:

• AUTUMN FAITH CANNADAY, a 30-year-old resident of Wibaux, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, CANNADAY faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Montana Highway Patrol.  PACER Case Reference.  17-38

• ANDREW MICHAEL GINN, a 37-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine.  If convicted of the charge contained in the indictment, GINN faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release.  The case was investigated by the FBI Task Force.  PACER Case Reference.  17-94

Appearing before U.S. Magistrate Cavan in Billings on August 3, 2017 and entering pleas of Not Guilty were:

• ETHAN ROBERT CORD ESSER, a 25-year-old resident of Colstrip, appeared on charges of possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charge contained in the indictment, ESSER faces life in prison, $5,000,000 in fines, and 4 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  17-92

Appearing before U.S. Magistrate Johnston in Great Falls on August 3 27, 2017 and entering pleas of Not Guilty were:

• MICHELLE ANDRA JOYNER, a 45-year-old resident of Cascade, appeared on charges of sexual exploitation of a child, and receipt of child pornography.  If convicted of the most serious charges contained in the indictment, JOYNER faces 30 years in prison, $250,000 in fines, and lifetime supervised release.  The case was investigated by Homeland Security Investigations.  PACER Case Reference.  17-57

• TIMOTHY ALLEN WEAVER, a 35-year-old resident of Cascade, appeared on charges of sexual exploitation of a child, and receipt of child pornography.  If convicted of the most serious charges contained in the indictment, WEAVER faces 30 years in prison, $250,000 in fines, and lifetime supervised release.  The case was investigated by Homeland Security Investigations.  PACER Case Reference.  17-57

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

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

 

BILLINGS – Jesus Deniz Mendoza, 20, of Worland, Wyoming, was sentenced today to life in prison in Billings federal court after pleading guilty to a superseding information charging him with two counts of second-degree murder, assault with intent to commit murder, assault with a dangerous weapon, and three counts of using a gun during crimes of violence.  In addition, the defendant was ordered to pay $12,713 in restitution.  U.S. District Court Judge Susan P. Watters presided over the sentencing. 

The charges in this case stemmed from the following events that occurred on July 29, 2015.  At approximately 10:11 a.m., on July 29, 2015, Crow Agency dispatch received a call about a shooting on Pryor Gap Road in Pryor, Montana, between the St. Charles Mission School and Plenty Coups Park.  The first law enforcement officers on the scene saw a deceased male and a deceased female lying in the road, face down.  Also observed at the scene was a 1990 Ford Taurus, green, bearing Wyoming license plate number 20-2934, registered to the mother of Deniz Mendoza.

The daughter of the deceased male and female was with her parents when they were shot.  She was interviewed by law enforcement and stated that her mother came to her house and told her that there was a guy who needed assistance.  The three took the daughter’s car and drove past the St. Charles Mission School on Pryor Gap Road, where they met up with Deniz Mendoza who was in a green vehicle that was parked on the side of the road.  When they approached Deniz Mendoza, he stepped out of his vehicle, pointed a gun at them, and told them to get out of the car.  They complied and got out of their car.  Deniz Mendoza told them to stand behind the car and asked them for money.  They told him that they did not have any money.  Deniz Mendoza then told them to start walking away from their car.  As they were walking, the daughter heard a gunshot.  When she turned around, she saw her father lying on the road.  She started running.  As she was running, she heard her mother scream, but she did not turn around because she was scared.  She kept running and, as she did, she felt blood running down her face, which was later determined to be the result of a bullet wound.  She heard another gunshot and felt a bullet hit her in the back.  She then turned around and saw Deniz Mendoza get into her car and drive off. 

The daughter was able to yell for help, and she caught the attention of some individuals at the St. Charles Mission School.  A car drove to her location, and she told the female driver that she had been hurt.  The female driver got out of the car and walked towards the daughter’s parents lying in the road.  Fearing that the unknown male would come back, the daughter got into the female driver’s car.  When the daughter saw her car coming back toward her, she got behind the wheel of the female driver’s car and drove away. 

Two males drove from the St. Charles Mission School to the scene after someone had informed them that gunshots were fired nearby.  They were at the scene when Deniz Mendoza returned to the scene in the daughter’s car, got out of the car, and started shooting.  Because the female driver was outside of her car (the daughter had driven her car away), the males pushed the female driver into a ditch and told her to play dead.  Both males confirmed that Deniz Mendoza shot at the female driver and pointed the gun at all of them.

As a result of a law enforcement bulletin, the daughter’s vehicle was located near Meeteetse, Wyoming by a Park County Wyoming Sheriff’s Deputy.  Deniz Mendoza was driving the vehicle.

On July 29, 2015, law enforcement conducted a recorded interview of Deniz Mendoza.  During the interview, Deniz Mendoza admitted to shooting three people with a .22 caliber rifle and then driving away from the scene in the victims’ vehicle.  Deniz Mendoza also described the rifle that he used, and he told the interviewing agents that the rifle was still in the vehicle that he was driving when he was arrested. 

"The victims were good Samaritans, trying to help a stranded motorist when their lives ended in a horrible act of violence that also injured their daughter," said Supervisory Senior Resident Agent Travis Burrows.  "The cooperation among the numerous law enforcement agencies that worked this case allowed us to provide some measure of justice for the victims' family and friends."

This case was prosecuted by Assistant U.S. Attorneys Lori Harper Suek, John D. Sullivan, and Joseph E. Thaggard and investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, and the Montana Highway Patrol.

MISSOULA – Robert William Stubbins, 39, of East Helena was sentenced to ten years in prison and five years supervised release. Stubbins entered guilty pleas to conspiracy to possess with intent and to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime in April. Senior U.S. District Court Judge Sam Haddon issued the sentence.

According to the Offer of Proof filed in the case, Stubbins possessed firearms while dealing methamphetamine and heroin in East Helena from November 2016 through January 2017. During much of that time, Stubbins was armed and traded firearms for drugs and/or money. Stubbins sold methamphetamine, heroin, and a firearm during the investigation. The investigation ended in January when law enforcement executed a search warrant at his residence. Methamphetamine, heroin, and a rifle were seized.

The case was prosecuted by Assistant U.S. Attorney Paulette Stewart. The case was investigated by the Missouri River Drug Task Force, Federal Bureau of Investigation, Helena Police Department, Lewis and Clark County Sheriff’s Office, and the DEA Western Laboratory.

GREAT FALLS - The United States Attorney’s Office announced today that John William Lieba II was sentenced to 500 months (41.6 years) in prison, 5 years of supervised release, and a $300 special assessment.  U.S. District Judge Brian Morris presided over the hearing.   

The case arose because Lieba was at the park in Wolf Point, Montana.  Lieba first tried to kidnap an eleven-year-old girl, but she was too fast.  He then settled for a four-year-old girl because she was not as fast.  Lieba then vaginally raped the child, strangled her, and left her for dead in an abandoned vehicle in a remote area near Wolf Point.  Because it was the heart of winter, temperatures dipped below freezing while the victim was missing.  When interviewed, Lieba initially denied knowing of the kidnapping and never showed contrition or remorse for his actions.  Instead, he told investigators that he was upset by his lost sexual opportunities with other females.  

In a sentencing memo filed in federal court, Assistant U.S. Attorney Ryan G. Weldon stated, “Lieba, through his actions, forced every parent in Montana to confront their worst nightmare.  That nightmare became a reality in Wolf Point when Lieba kidnapped, raped, and left a four-year-old child for dead.”

Judge Morris sentenced Lieba to over 40 years in federal prison, with five years of supervised release to follow.  Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Lieba will likely serve all of the time imposed by the court.  In the federal system, Lieba does have the opportunity to shorten the term of custody by earning credit for good behavior.  However, this reduction will not exceed 15% of the overall sentence.      

The Lieba case was investigated by the Federal Bureau of Investigation, Fort Peck Tribes Department of Law and Justice, Roosevelt County Sheriff’s Office, and multiple other federal, state, and local agencies. 

GREAT FALLS - The United States Attorney’s Office announced that Natalee Christine Crumley was sentenced to 38 months in prison, $425,939.80 in restitution, $427,816.17 in forfeiture, and a $100 special assessment.  The sentencing occurred on July 25, 2017, before U.S. District Judge Brian Morris, in Great Falls, Montana.     

Crumley worked as a bookkeeper at Junkermier, Clark, Campanella, Stevens P.C. (JCCS), which is a firm providing Certified Public Accountant and business advisory services throughout Montana.  Crumley’s job duties included providing bookkeeping services for Anderson Glass Doors and Windows (“Anderson Glass”) and Doors & Hardware Unlimited, Inc. (Doors & Hardware).

In just over a year, Crumley forged over 100 checks and embezzled $425,939.80 from Anderson Glass and Doors & Hardware.  After embezzling the money, Crumley withdrew over $140,000 in cash, purchased NCAA Final Four Tickets, furniture, clothes, and took trips to Miami, Long Beach, Houston, and Spokane.  Crumley also spent significant sums of money at Victoria’s Secret and even rented a Ferrari while on vacation.    

In a sentencing memo filed in federal court, Assistant U.S. Attorney Ryan G. Weldon stated, “Ms. Crumley held a position of trust because she was supposed to know right from wrong.”  This is why the victims of the crime explained, “In today’s world, stealing has become all too common.  Why work when you can just take what you want and hope the punishment will be little more than a slap on the hand.”   

As a result, Judge Morris sentenced Crumley to 38 months in prison, $425,939.80 in restitution, and $427,816.17 in forfeiture.  All total, Crumley must now pay the victims and the United States $853,755.97. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Crumley will likely serve all of the time imposed by the court.  In the federal system, Crumley does have the opportunity to shorten the term of custody by earning credit for good behavior.  However, this reduction will not exceed 15% of the overall sentence.      

The Crumley case was investigated by the Internal Revenue Service - Criminal Investigation Division, and the Great Falls Police Department. 

GREAT FALLS - The United States Attorney’s Office announced that Toni Louise Plummer-Alvernaz (Plummer) was sentenced to one year in prison, $246,024 in restitution, and a $100 special assessment. The sentencing occurred on July 14, 2017, before U.S. District Chief Judge Dana Christensen, in Great Falls, Montana.

Plummer was the Executive Director for the Montana Native Women’s Coalition (Coalition) and the Women’s Resource Center (Resource Center). Both organizations were located in Glasgow, Montana. The Montana Native Women’s Coalition was designed to improve urban, rural, and Native American community responses to victims of domestic and sexual violence. The Women’s Resource Center offered, among other things, educational seminars to the general public on various issues, such as health, parenting, career development, and violence prevention.

The Coalition and Resource Center received approximately $1.6 million in federal grant funds from the Department of Justice, Office of Violence Against Women. Plummer embezzled approximately 15% of the grants by inflating work hours, using the organization credit cards for vacations to Mount Rushmore and California, claiming travel when no such travel occurred, cash advances, bonuses, and paying family members money that they were not entitled to receive.

In a sentencing memo filed in federal court, Ryan G. Weldon stated, “Ms. Plummer used federal funds as a slush fund to line her own pockets.” Congress has attempted to address domestic violence in Montana, particularly in Indian Country, by providing federal funding. But “Ms. Plummer chose to victimize victims yet again” by stealing that money, which was meant for some of the most vulnerable individuals in the community. Weldon stated at sentencing that this type of crime “tears at the moral fabric of the community.”

Chief Judge Dana Christensen agreed and sentenced Plummer to a year in prison and ordered restitution of $246,024. The conviction and sentencing of Plummer is the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts, and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011. The Plummer case was investigated by the Federal Bureau of Investigation, Department of Justice - Office of Inspector General, and local law enforcement.

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

Appearing before U.S. Magistrate Johnston in Great Falls on July 13, 2017 and entering pleas of Not Guilty were:

• CINNAMON A. FULGHUM, a 49-year-old resident of Plentywood, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and use of a communication facility in causing and facilitating the commission of felonies under the controlled substances act.  If convicted of the most serious charges contained in the indictment, FULGHUM faces 20 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the United States Postal Service.  PACER Case Reference.  17-39

• JULIUS EDWARD LUPOWITZ, a 55-year-old resident of Melbourne, Florida, appeared on charges of wire fraud, and engaging in monetary transactions in property derived from specified unlawful activity.  If convicted of the most serious charges contained in the indictment, LUPOWITZ faces 20 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-40

Appearing before U.S. Magistrate Cavan in Billings on July 11, 2017 and entering pleas of Not Guilty were:

• KEVIN RAYMOND RUCKS, a 56-year-old resident of Dickinson, North Dakota, appeared on charges of distribution of methamphetamine.  If convicted of the charge contained in the indictment, RUCKS faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  17-08

Appearing before U.S. Magistrate Johnston in Great Falls on July 10, 2017 and entering pleas of Not Guilty were:

• WILLIAM BRENT LARION, a 40-year-old resident of Shelbyville, Tennessee, appeared on charges of possession of a firearm not registered in the National Firearms Registration and Transfer Record, and felon in possession of a firearm.  If convicted of the most serious charge contained in the indictment, LARION faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Drug Enforcement Administration and the Roosevelt County Sheriff’s Office.  PACER Case Reference.  17-33

Appearing before U.S. Magistrate Cavan in Billings on July 5, 2017 and entering pleas of Not Guilty were:

• RANDY RAY STARNES, a 60-year-old resident of Billings, appeared on charges of bank robbery.  If convicted of the charge contained in the indictment, STARNES faces 20 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-81

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

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

GREAT FALLS – Robert David Linn, Jr., a 52-year-old resident of Great Falls, pleaded guilty to possession with intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. Linn’s plea could result in a term of life in prison and his sentence can be no less than 15 years.

In late 2015, the Russell Country Drug Task Force began investigating the defendant, Robert David Linn, Jr., for trafficking methamphetamine in Great Falls, Montana. Through further investigation, law enforcement learned that the defendant typically sold a pound of methamphetamine for $15,000, or an ounce of methamphetamine for $1,250. On occasion, the defendant sold smaller quantities of heroin. Law enforcement also acquired information that the defendant frequently traded methamphetamine for stolen property.

Throughout 2016 and 2017, law enforcement seized approximately five pounds of actual methamphetamine from various individuals in Great Falls who had all received their methamphetamine directly from the defendant. On April 8, 2017, law enforcement arrested the defendant after receiving information that he had recently received approximately 30 pounds of methamphetamine through delivery by a shipping company.

Following the defendant’s arrest, law enforcement executed numerous search warrants. First, law enforcement went to a home in Great Falls where agents had information that the defendant stored his methamphetamine supply. There, agents seized 4359.2 grams, or approximately ten pounds, of actual methamphetamine from a concealed location in the home. Agents also seized 13 firearms located in extremely close proximity to the methamphetamine. These firearms included two semi-automatic rifles, four revolvers, and seven semi-automatic pistols. Upon further examination, two of the firearms possessed obliterated serial numbers, and agents discovered three of the firearms were stolen. Law enforcement also seized 202.2 grams of actual methamphetamine from the defendant’s truck. Lastly, in addition to the methamphetamine seizures, agents recovered over $250,000 in cash proceeds from the defendant and his associates.

Linn is detained pending his sentencing on October 19, 2017 in front of U.S. District Judge Brian Morris.

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

Appearing before U.S. Magistrate Cavan in Billings on June 27, 2017 and entering pleas of Not Guilty were:

• ROBERT JOHN BIGBACK, a 22-year-old resident of Billings, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, BIGBACK faces 10 years in prison, and $250,000 in fines.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-59

Appearing before U.S. Magistrate Cavan in Billings on June 22, 2017 and entering pleas of Not Guilty were:

• GEORGE SCOTT PRINDLE, a 60-year-old resident of Billings, appeared on charges of distribution of methamphetamine.  If convicted of the charge contained in the indictment, PRINDLE faces 20 years in prison, and $1,000,000 in fines.  The case was investigated by the FBI Task Force.  PACER Case Reference.  17-64

Appearing before U.S. Magistrate Cavan in Billings on June 20, 2017 and entering pleas of Not Guilty were:

• MATTHEW FRANCESCO MANDALA, a 29-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute heroin, possession with intent to distribute heroin, and possession of a firearm in furtherance of a drug trafficking crime.    If convicted of the most serious charges contained in the indictment, MANDALA faces life in prison, and $5,000,000 in fines.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-62

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

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

HELENA – Michael Edward Copenhaver, 28, of Belgrade, Montana, was sentenced today to 70 months in prison and three years supervised release for possession of stolen firearms.  U.S. District Court Judge Sam E. Haddon presided over the sentencing. 

In court documents, federal prosecutor Bryan Whittaker wrote that August 2016 Copenhaver burglarized Murdoch’s Ranch and Home Supply in Bozeman.  Copenhaver broke into the store in the middle of the night wearing dark clothing, a ski-mask or hat, gloves, and carrying an orange backpack. Copenhaver forced his way into the store by breaking a door and the gun cabinets in order to gain access to the store’s firearms.  He then stole 18 semi-automatic pistols and put them in his backpack.  As he climbed over the security fence when he was leaving the store, one of the firearms fell out of his backpack.  He later burned all of the clothing that he was wearing at the time of the burglary.

Several days later, Copenhaver burglarized a private residence in Montana City.  The owners of the residence had recently posted their home for sale.  The owners had been out of the house that morning.  When they were out, Copenhaver broke into the home through a back patio door and stole 16 firearms and other items such as jewelry, a World War I and World War II knife collection, and binoculars.

Several days after the home burglary, the Blackfoot Idaho Police Department (“BPD”) officers were dispatched to the State of Idaho Probation Office in Blackfoot, Idaho for a report of a suspicious vehicle.  It was reported that the male subject was asleep or unconscious inside the vehicle and was not responsive.  Upon arrival, officers asked the individual to get out of the car.  When Copenhaver exited the vehicle, he stated that he had been “wanting to talk to you guys.”  Copenhaver told officers that he needed help and said that methamphetamine was taking over his life.  He told officers that the guns inside his vehicle were stolen and he felt like a “dirt bag” for the things he had been doing lately.  He further said that he had committed a burglary at a gun store in Bozeman, Montana and broke into a house near Helena, Montana and stole more firearms from a private residence.

Copenhaver further described for the officers a burglary he had committed in Idaho Falls the previous day where he had stolen some firearms and then traveled south to Blackfoot where he arrived sometime around midnight.  After buying gas, he began to look for a place to “crash” in a nearby parking lot.  Copenhaver said that he saw the probation and parole parking lot, but had no idea what the building was.  He chose the building because it had other cars parked there and there were fewer lights.  Copenhaver fell asleep in his car.  He said that when he woke up the next morning there was someone wearing a parole agent shirt talking on the phone regarding “guns and a meth pipe” visible in the vehicle.  Copenhaver said it was “just his luck” that he had fallen asleep in a probation and parole parking lot.

Copenhaver also told officers that he was on this way to Las Vegas and California where he was planning on trading the firearms for methamphetamine.  He claimed that he could get over 20 pounds of methamphetamine.   He also had methamphetamine on his person when he was arrested and he reported that he was using methamphetamine when he committed the burglaries.

“Investigating gun store thefts is a top priority for ATF, and we will not rest until we reverse the tide of stolen guns entering our communities,” said ATF Special Agent in Charge Debora Livingston. “These guns were destined for crime and violence, but they were intercepted by sharp officers who noticed something out of the ordinary. Thanks to Montana ATF agents, Blackfoot Police Department, the Gallatin County Sheriff’s Office, Jefferson County Sheriff’s Office and the U.S. Attorney’s Office, communities around the country are safer.”

 This case was prosecuted by Assistant U.S. Attorney Bryan R. Whittaker and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Gallatin County Sheriff’s Office, Bozeman Police Department, Jefferson County Sheriff’s Office, Blackfoot City Police Department and the State of Idaho Probation Office.

GREAT FALLS – Kenneth James Hatzenbeller, 65, of Great Falls, Montana, former owner of several Montana restaurants, was sentenced today to 30 months in prison and 3 years supervised release for bank fraud.  He was also ordered to pay $1,077,866.82 to two banks.  U.S. District Court Judge Brian M. Morris presided over the sentencing. 

In court documents, federal prosecutor Chad Spraker wrote that on August of 2014, Hatzenbeller contacted Zions Bank and requested a $500,000 loan to purchase furniture, fixtures, and equipment for five Chili's restaurants operated by Shoot the Moon.  The collateral for the loan was to be the furniture, fixtures, and equipment purchased with the loan proceeds.

On September 2, 2014, Hatzenbeller signed a Disbursement Request and Authorization requesting that $500,000.00 in loan proceeds be disbursed to Penner Brokerage. That same day, Zions Bank initiated a wire transfer of $494,890 to Wells Fargo for the benefit of Penner Brokerage based on invoices listing Penner Brokerage as the vendor for various furniture, fixtures, and equipment. The account controlled by Hatzenbeller’s daughter who knew nothing of Penner Brokerage or the invoices until interviewed by the FBI.  The funds were never used for furniture, fixtures and equipment and were redirected to other company debts leaving Zions uncollateralized and unsecured.

 In early September 2015, Hatzenbeller contacted Yellowstone Bank in Billings and indicated that Shoot the Moon was planning to open a Chili’s restaurant at the Rimrock Mall in Billings.  Hatzenbeller was looking for financing for the project and stated he needed a $600,000 loan in order to purchase equipment and furnishings for the new restaurant.  Hatzenbeller advised he and his partners would also be contributing an unspecified amount of capital to the project, and they would be personal guarantors on the loan.  The bank was to have a lien on all fees, fixtures, and equipment as collateral

Due to Hatzenbeller and his partners’ strong financial statements, Yellowstone Bank did not require invoices from Shoot the Moon prior to making loan disbursements.  Nevertheless, a bank vice president asked for invoices to make himself feel comfortable that the loan money was being spent as agreed upon.  Hatzenbeller provided invoices that were either fabricated or for expenses that Shoot the Moon never incurred. 

Shoot the Moon filed for a Chapter 11 bankruptcy in October of 2015.  Hatzenbeller was deposed in the bankruptcy proceeding and admitted he used the Yellowstone Bank loan proceeds to pay expenses unrelated to the Billings Chili's restaurant.  Hatzenbeller said he used the money to pay a food vendor, pay taxes, and meet payroll.  When questioned about the September 2, 2014, $490,000 deposit from Zions Bank, Hatzenbeller falsely claimed it was a loan from his daughter and her husband.

This case was prosecuted by Assistant U.S. Attorney Chad C. Spraker and investigated by Federal Bureau of Investigation and the United States Trustee.

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

Appearing before U.S. Magistrate Lynch in Missoula on June 15, 2017 and entering pleas of Not Guilty were:

• JABRILL MUSTAFA WEATHERSBY, a 49-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, WEATHERSBY faces 40 years in prison, and $1,000,000 in fines.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missoula HIDTA.  PACER Case Reference.  17-22

Appearing before U.S. Magistrate Cavan in Billings on June 12, 2017 and entering pleas of Not Guilty were:

• DALE DUWAYNE BUERKLE, a 66-year-old resident of Plevna, appeared on charges of unlawful taking of a bald eagle, unlawful taking of a migratory bird, and unlawful use of registered pesticide.  If convicted of the most serious charges contained in the information, BUERKLE faces 1 year in prison, and $100,000 in fines.  The case was investigated by U.S. Fish and Wildlife Service.  PACER Case Reference.  17-67

Appearing before U.S. Magistrate Johnson in Great Falls on June 12, 2017 and entering pleas of Not Guilty were:

• CARI ANN MARTIN, a 47-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, MARTIN faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by Homeland Security Investigations, the Great Falls Police Department and the Russell Country Drug Task Force.  PACER Case Reference.  17-41

• JOHN KEVIN MOORE, a 54-year-old resident of Kalispell, appeared on charges of wire fraud, and engaging in monetary transactions in property derived from specified unlawful activity.  If convicted of the most serious charges contained in the indictment, MOORE faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-42

Appearing before U.S. Magistrate Lynch in Missoula on June 12, 2017 and entering pleas of Not Guilty were:

• STEPHEN ROY GOODMAN, a 23-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine and heroin, and possession with intent to distribute methamphetamine and heroin.  If convicted of the most serious charge contained in the indictment, GOODMAN faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missoula HIDTA.  PACER Case Reference.  17-19

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 so that you stay current and not miss any important developments in the case.

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

HELENA – Elizabeth Jones Powell, 52, of East Helena, Montana, was sentenced today to five years imprisonment and three years supervised release for health care fraud and tax evasion.  She was also ordered to pay $420,891.08 to four insurers and $43,514 to the Internal Revenue Service.  U.S. District Court Judge Sam E. Haddon presided over the sentencing. 

In court documents, federal prosecutor Chad Spraker wrote that in 2012, the Montana Surveillance and Utilization Review Section (SURS) noticed irregularities in physical therapist Gordon Jones practice’s billing to Medicaid.  In particular, from June 2009 to July 2012, Medicaid received claims for only five Medicaid beneficiaries:  Powell, her husband, and their three children.  The practice was also billing for services nearly seven days a week.

After observing the irregularities, SURS requested documents from the practice in April 2012 to support its claims.  SURS did not receive a response, so it made another request for documentation in June 2012.  SURS received documents in response to the second request, though not an adequate one.  In particular, SURS noted the records contained duplicate wording and consistent misspellings across patient files; the records failed to include dates of service one would expect in the records; the records appeared to be signed by someone other than Jones; and the records contained no written referrals for physical therapy.

A DCI Agent conducted surveillance on Jones’s business and residence for several days in August 2012 to determine whether any beneficiaries were visiting the practice.  Medicaid later received claims on those dates for one of Powell’s children who was at work at the time.  State authorities executed a search warrant on Jones’ business and residence in April 2013.  During the search, officers seized a computer showing that Medicaid patient files for the Powell family were created shortly after the SURS request.  

The agent interviewed the family members for which the practice billed Medicaid.  Claims for one of Powell’s children were billed for 233 days in 2009 and 2010 when in reality she had been to physical therapy approximately five times in her entire life.  Prior to and interview with Powell’s child, Powell called and attempted to persuade her that she received multiple physical therapy treatments from Gordon because she had hurt her neck after falling off a riding lawn mower. 

The Powell family was categorically ineligible to receive Medicaid from October 2009 to May 2013, due to the misrepresentations and omissions Powell made on their eligibility paperwork.  In addition to $290,476 in fraudulent Medicaid claims made through Gordon’s practice, the family received treatment from 63 other medical providers resulting in a $25,664 loss to Medicaid.  The Powell family also received 63 different medications resulting in an $18,343 loss to Medicaid. 

Powell also filed several false tax returns during her health care fraud scheme.  From 2010 through 2012, Powell filed IRS Forms 1099 that substantially understated her income.  According to Powell’s accountant, each year Powell provided him with figures stating the amount of income Powell received from the physical therapy practice, which the accountant then listed on Powell’s return to the IRS.  After Powell’s fraud came to light, Gordon and his son provided the accountant with a spreadsheet detailing the additional funds Powell took from the practice.  The accountant then issued Powell amended Forms 1099 listing the additional income.  Powell did not file an amended return reflecting that income.

The U.S. Attorney’s Office conducted a separate review of Gordon’s bank account and computed the monies Powell diverted from the bank account for her own benefit.  The analysis also revealed insurance checks Powell diverted from the practice and deposited into bank accounts Gordon had no control over.  Further, Powell transferred funds from Gordon’s account to bank accounts held in the names of her children before spending the money.

This case was prosecuted by Assistant U.S. Attorney Chad C. Spraker and investigated by the Montana Division of Criminal Investigation and the Internal Revenue Service Criminal Investigation Division.

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

Appearing before U.S. Magistrate Lynch in Missoula on June 6, 2017 and entering pleas of Not Guilty were:

• NOLAN DAVID BARBISAN, a 28-year-old resident of Bozeman, appeared on charges of felon in possession of firearms, false statement during firearms transaction, and possession of an unregistered silencer.  If convicted of the most serious charges contained in the indictment, BARBISAN faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lewis and Clark County Sheriff’s Office.  PACER Case Reference.  17-09

• RANDALL ALAN FRANZ, a 58-year-old resident of Sandpoint Idaho, appeared on charges of concealment of assets in bankruptcy, false oath or account, and wire fraud.  If convicted of the most serious charges contained in the indictment, FRANZ faces 20 years in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-18

• WALTER JAMES MANULA, a 64-year-old resident of Butte, appeared on charges of felon in possession of firearms and ammunition.  If convicted of the charge contained in the indictment, MANULA faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.   PACER Case Reference.  17-01

• WILLIAM KENT ROSS, a 67-year-old resident of Whitehall, appeared on charges of felon in possession of firearms and ammunition.  If convicted of the charge contained in the indictment, ROSS faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-09

Appearing before U.S. Magistrate Cavan in Billings on June 2, 2017 and entering pleas of Not Guilty were:

• JEANETTE LAMBERT SCHACHT, a 55-year-old resident of Laurel, appeared on charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and maintain drug – involved premises.  If convicted of the most serious charges contained in the indictment, SCHACHT faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the FBI Task Force.  PACER Case Reference.  17-65

• RAYMOND EDWARD SCHACHT, a 57-year-old resident of Laurel, appeared on charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and maintain drug – involved premises.  If convicted of the most serious charges contained in the indictment, SCHACHT faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the FBI Task Force.  PACER Case Reference.  17-65

• RONALD ANDREW SMITH, a 35-year-old resident of Redwood City, California, appeared on charges of possession with intent to distribute methamphetamine.  If convicted of the charge contained in the indictment, SMITH faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration, the Montana Highway Patrol, and Park County Sheriff’s Office.  PACER Case Reference.  17-55

• ISAIAH ELGIE THOMAS, a 29-year-old resident of Miles City, appeared on charges of felon in possession of a firearm, possession of a firearm by a person previously convicted of a misdemeanor crime of domestic violence, and possession of a stolen firearm.  If convicted of the most serious charges contained in the indictment, THOMAS faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-50

• JAIRO SEBASTIAN VELA-DIAZ, a 31-year-old resident of Grenada, appeared on charges of possession with intent to distribute methamphetamine.  If convicted of the charge contained in the indictment, VELA-DIAZ faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration, the Montana Highway Patrol, and Park County Sheriff’s Office.  PACER Case Reference.  17-55

Appearing before U.S. Magistrate Cavan in Billings on May 31, 2017 and entering pleas of Not Guilty were:

• SHAWN MICHAEL WENTZ, a 26-year-old resident of Bozeman, appeared on charges of receipt of child pornography.  If convicted of the charge contained in the indictment, WENTZ faces 20 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Homeland Security Investigations. PACER Case Reference.  17-24

Appearing before U.S. Magistrate Cavan in Billings on May 30, 2017 and entering pleas of Not Guilty were:

• CHAD RUSSELL MATTFELDT, a 42-year-old resident of Livingston, appeared on charges of felon in possession of a firearm, and possession of a firearm by a person previously convicted of a misdemeanor crime of domestic violence.  If convicted of the most serious charge contained in the indictment, MATTFELDT faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Park County Sheriff’s Office.  PACER Case Reference.  17-63

Appearing before U.S. Magistrate Cavan in Billings on May 25, 2017 and entering pleas of Not Guilty were:

• TERRY LEE FELLER, a 58-year-old resident of Billings, appeared on charges of felon in possession of a firearm, and possession of a stolen firearm.  If convicted of the most serious charge contained in the indictment, FELLER faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference.  17-63

• VERNON RAY HENSON, a 57-year-old resident of Colville, Washington, appeared on charges of felon in possession of a firearm and ammunition.  If convicted of the most serious charge contained in the indictment, HENSON faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference.  17-43

Appearing before U.S. Magistrate Cavan in Billings on May 24, 2017 and entering pleas of Not Guilty were:

• MICHAEL LEE LIRA, a 52-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, LIRA faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Homeland Security Investigations, Russell Country Drug Task Force, and the Great Falls Police Department.  PACER Case Reference.  17-34

Appearing before U.S. Magistrate Johnston in Great Falls on May 23, 2017 and entering pleas of Not Guilty were:

• BENGAMIN RAY YELLOW OWL, a 25-year-old resident of Browning, appeared on charges of aggravated sexual abuse, sexual abuse of a minor, and distribution of a controlled substance to a person under 21.  If convicted of the most serious charges contained in the indictment, YELLOW OWL faces life in prison, $2,000,000 in fines and lifetime supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  17-32

Appearing before U.S. Magistrate Cavan in Billings on May 23, 2017 and entering pleas of Not Guilty were:

• VIOLET JOANN AGNES BIRDINGROUND, a 22-year-old resident of Crow Agency, appeared on charges of assault resulting in serious bodily injury.  If convicted of the charge contained in the indictment, BIRDINGROUND faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  17-37

• TODD THOMAS MALMSTROM, a 52-year-old resident of Lockwood, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, MALMSTROM faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-54

Appearing before U.S. Magistrate Cavan in Billings on May 19, 2017 and entering pleas of Not Guilty were:

• EMMANUEL ARCE-GAXIOLA, a 28-year-old resident of Rock Springs, Wyoming, appeared on charges of possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, ARCE-GAXIOLA faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.  The case was investigated by the Drug Enforcement Administration and the Eastern Montana HIDTA.  PACER Case Reference.  16-113

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

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

GREAT FALLS - The United States Attorney’s Office announced that Kevin David McGovern was sentenced to 24 months of imprisonment, $880,000 in restitution (joint and several with his companies), $800,000 in fines, $500 in special assessments, and 2,000 hours of community service.  CMG Construction, Inc., was ordered to pay $1.0 million in restitution, $1.6 million in fines, and $1,600 in special assessments.  And MC Equipment Holdings, LLC, was sentenced to $380,000 in restitution, $800,000 in fines, and $800 in special assessments.  All total, McGovern and his companies were required to pay $4.58 million in restitution and fines.  The sentencing occurred on June 8, 2017, before U.S. District Judge Brian Morris, in Great Falls, Montana.  

    

In November 2016, a federal trial jury convicted Kevin McGovern and CMG Construction, Inc., of conspiracy, wire fraud, and bribery, all of which was associated with a pay-to-play scheme on the Rocky Boy’s Indian Reservation. 

 

Tony James Belcourt was in care, custody, and control of over $85 million of federal and tribal funds for the construction of a rural water project and several disaster relief projects on the reservation.  Of that amount, $52 million was associated with the Rocky Boy/North Central Montana Rural Water System, $11 million was provided by FEMA for the flash floods that occurred in June 2010, and $25 million was provided by the Tribe’s insurance carrier.

 

Between January 2010 and March 2013, Belcourt’s job duties included serving as a representative in the House of Representatives for the State of Montana, the CEO for the Chippewa Cree Construction Corporation, a member of the Tribe’s Insurance Recovery Team, and the Incident Commander for FEMA.  Belcourt and other tribal officials required contractors to pay kickbacks and bribes in order to receive contracts and contract payments.  Belcourt was previously convicted for accepting bribes and is currently serving a 90-month sentence in federal prison.   

 

In June 2011, Kevin McGovern and his company, CMG Construction, Inc., received three unadvertised, sole-sourced contracts valued at $2.5 million without being required to submit bids to the Chippewa Cree Construction Corporation.  In return, Belcourt received $324,333 through a company called MT Waterworks, LLC.  Belcourt never provided any services to MT Waterworks, LLC, which was started with $100,000 of embezzled federal funds from the rural water system.  MT Waterworks, LLC, was owned by Belcourt, McGovern, and a third businessman from Billings.    

   

In July 2011, Belcourt drove from his home in Box Elder, Montana, to Billings, Montana, and gave Kevin McGovern a $200,000 progress payment of federal funds for work performed on FEMA-related disaster projects.  The following day, McGovern gave a personal loan to Tony Belcourt in the amount of $50,000.  Then, at Belcourt’s direction, McGovern sent $25,000 as a donation to the Chippewa Cree Events Committee, which was a known slush fund for a tribal councilman who was previously convicted for accepting bribes. 

 

The jury convicted McGovern and CMG Construction, Inc., of conspiracy, wire fraud, and bribery of Tony Belcourt.  The jury acquitted McGovern and CMG Construction, Inc., of one count that involved bribery of another tribal official. 

 

In addition to bribing Belcourt for contracts, McGovern and MC Equipment Holdings, LLC, also pleaded guilty to wire fraud and theft in connection with the February 2012 sale of a “hot plant” to the Chippewa Cree Tribe.  A “hot plant” is a portable industrial paving machine that consists of several interlocking components, including an asphalt tank and silo, drum mixer, conveyor system, and control house that, when properly assembled, produced hot asphalt that can be used on paving projects, such as roads and parking lots.  McGovern inflated the purchase price of the hot plant by $380,000, of which $229,000 he paid to Belcourt.  The “hot plant” was never assembled or used by the Tribe.  It was subsequently sold at a loss by the Chippewa Cree Construction Corporation in June 2015.   

 

CMG Construction, Inc., also pleaded guilty to a false claims act conspiracy in connection with a March 2013 claim in the amount of $3.8 million submitted by the Chippewa Cree Tribe to FEMA.  This claim contained inflated invoices from CMG Construction, Inc., relating to the demolition of the health clinic.

 

In a sentencing memo filed in federal court, Ryan G. Weldon and Bryan T. Dake stated, “This case is purely about greed.  McGovern had a multi-million dollar business in Billings, Montana.  His personal bank account had almost $1,000,000.  He had everything.  CMG Construction, Inc., did not have to bribe to obtain business.  It was a thriving and legitimate venture that employed hundreds of people.  McGovern, though his companies, chose to engage in the corrupt practices at the Rocky Boy’s Indian Reservation.” 

 

Acting United States Attorney Leif Johnson said the conviction and sentence reaffirms the line that exists between corrupt business and those that are merely aggressive:  “Too often, in pursuit of a profit, a businessman seeks an advantage that is one step too far and begins a relationship involving taxpayer monies that seems too good to be true.  It starts with great promise and ends with the loss of everything—reputation, fortune, and freedom.”

 

The Department of Interior, Office of Inspector General, Western Region, Special Agent In Charge David A. House stated, “This latest corruption conviction involving the Rocky Boy/North Central Montana Rural Water System, a water project designed to deliver safe drinking water to the Chippewa Cree Tribe and several rural Montana communities.  This is another successful effort by the Montana Guardians Project wherein corruption was identified and vigorously prosecuted in an effort to stop unjust personal enrichment.  Prosecutions such as these allow federal agencies, and tribal organizations, to rebuild from criminal impact.  It also demonstrates our commitment to protecting taxpayer funds and our trust responsibilities to Tribes.”  

 

“IRS Criminal Investigation provides financial investigative expertise while working with our law enforcement partners,” said Steven Osborne, Special Agent In Charge, IRS-Criminal Investigation for Montana.  “Pooling skills of each agency makes a formidable team as we investigate allegations of wrong-doing.  Today’s sentencing demonstrates our collective efforts to enforce the law and ensure public trust.”

 

The convictions and sentencing of McGovern, CMG Construction, Inc., and MC Equipment Holdings, LLC, are the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts, and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011.  The McGovern, CMG Construction, Inc., and MC Equipment Holdings, LLC, cases were investigated by the Department of Interior, Office of Inspector General, Health and Human Services, Office of Inspector General, and the Internal Revenue Service, Criminal Division.

MISSOULA – George Leslie Manlove, 59, of Eagle, Idaho, was convicted of 170 counts of wire fraud, money-laundering, bank fraud, false statements, bankruptcy fraud and conspiracy following a three-week jury trial. U.S. District Court Judge Dana L. Christensen presided. Sentencing occurred on May 19, 2017.

Manlove, the former CEO of Vann’s, Inc., an electronics and appliance retailer, was initially indicted in December of 2015 on 221 counts of fraud. A second superseding indictment was returned by a grand jury in March, 2016. Manlove’s fraudulent activity occurred between 2006 and 2013. Vann’s declared bankruptcy on August 5, 2012.

At trial, the government introduced evidence that Manlove, aided and abetted by co-conspirator, former CFO Paul Lyn Nisbet, established two shell-companies, JPEG and Painted Sky, LLC (Nisbet pled guilty to one count of conspiracy on Oct. 27, 2016). These shell-companies were established as part of a real-estate leaseback scheme. The defendants, with less than a $500 initial investment to create the LLC’s, obtained loans to purchase commercial property, and then leased that retail space back to Vann’s. The defendants obtained these loans without full disclosure of the lease terms, a vote from the company’s Board of Directors or even valid, written lease contracts.

In one of the schemes, Manlove purchased the Vann’s store in Helena, appraised at nearly $2.8M, for approximately $1.9M. From loan proceeds, Manlove then applied $100K towards paying down his own Home Equity Line of Credit (HELOC). Manlove continued to charge Vann’s “rent” on the properties even after the stores closed. These rent payments continued even after Vann’s declared bankruptcy. Payments made by wire transfer served as the basis for dozens of wire fraud counts.

Ultimately, the jury also found that Manlove committed bankruptcy fraud by making a claim for $2.4M against Vann’s bankruptcy estate after the company folded. The legal theory behind Manlove’s claim - by failing to continue to pay rent on the Helena Store, Vann’s “breached its contract” with Manlove, even though no written contract ever existed. 

The jury also found that Manlove defrauded his company through dozens of unauthorized credit card purchases, reimbursements, trades and other transactions. The government presented evidence of flights and hotel expenses for a “mother/daughter” shopping week in New York City; Manlove’s trades of Vann’s Accounts Receivables for diamond earrings and a Rolex watch; Manlove’s receipt of thousands of dollars for a realtor’s commission on the sale of a Vann’s property, and thousands of dollars of unauthorized travel. Chief among these unauthorized purchases was Manlove’s expenditure of over $200,000 of Vann’s funds for tuition and expenses for an Executive MBA degree at Northwestern University’s Kellogg School of Business. Shortly after obtaining this degree, Manlove used Vann’s funds to purchase resume writing services from TheLadders.com and a class ring from Kellogg totaling approximately $1,500.

Manlove himself testified at trial. On the witness stand, he claimed that he only obtained the MBA degree to help Vann’s compete in a challenging economy. However, under cross-examination prosecutors confronted Manlove with an email from the spring of his last year at school in which he had stated to a colleague: “During the second year at Kellogg, I began pondering the next chapter in my life both personally and professionally… I have decided to open the next chapter in my life and am planning my exit from our company. I believe my skills are very marketable, so it is a matter of timing and finding something I am passionate about.” 

Another of Manlove’s defenses was that one of the main reasons he went to Kellogg was to recruit talent so that Vann’s could compete with Amazon.com in online sales. However, the government produced evidence that undercut this claim. Shortly after obtaining his degree, Manlove sent an email to management at Amazon. Attached to his email was a resume and cover letter in which Manlove asked to be considered for a senior executive position at Amazon.

Manlove also claimed that his travel expenses to Kellogg, New York and elsewhere were related to efforts to obtain venture capital funds for the benefit of Vann’s, Inc. However, evidence presented at trial showed that one of Manlove’s trips to New York in 2012 occurred when he was simultaneously drawing a paycheck from both Vann’s and Velodyne Inc. – a Vann’s competitor.  No evidence of the identity of any supposed venture capitalist or any venture capital investment was offered at trial. Manlove negotiated a separation agreement with Vann’s shortly after this trip.

Prosecutors overcame an advice-of-counsel defense and were successful in striking the Defendant’s proposed expert witness testimony that the “Business Judgement Rule” provided a justification for Manlove’s conduct.  In fact, the Court excluded much of the Defendant’s expert’s testimony altogether due to that expert’s conflicts of interest (the same attorney who advised Manlove during the company’s descent into bankruptcy and who was the crux of the “advice of counsel” defense).

At the conclusion of the three-week trail, the jury rendered a guilty verdict on 170 counts of fraud.  The following day (Saturday, February 4) the jury also returned a forfeiture verdict in the amount of $2.4M.

Mr. Manlove was sentenced by U.S. District Court Judge Dana L. Christensen on May 19, 2017 to 5 years, 3 months in federal prison. After a five hour hearing, Judge Christensen ordered Manlove to self-report to begin serving his sentence in Sheridan, Wyoming. He also ordered Manlove to make payments on his forfeiture verdict of $2,467,574.56.

A former employee of Vann’s Inc., Jay Allen, wrote:

“This is yet another cautionary tale; a tale of individual greed and unchecked ego being permitted to horse collar a successful company of 200 hard-working and committed employees and scatter them across an employment landscape still reeling from the recession. A sordid story of faith breached.”

The United States would like to express sincere gratitude to the 13 men and women of the jury for their service. The United States also expresses its thanks to DOL Investigator Rachel Hackman, IRS Special Agent Martin Halko, FBI Special Agent Shaun Schrader, as well as former AUSA Kris McLean, who were all instrumental in building the prosecution of the case.

The case was prosecuted by Assistant U.S. Attorneys Adam Duerk and Zeno Baucus.

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

Appearing before U.S. Magistrate Cavan in Billings on May 15, 2017 and entering pleas of Not Guilty were:

• KRISTA LEAH ANDERSON, a 27-year-old resident of Billings, appeared on charges of possession of a firearm not registered in the National Firearms Registration and Transfer Record.  If convicted of the most serious charge contained in the indictment, ANDERSON faces 10 years in prison, $10,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-48

• CATHERINE MABEL BROCK, a 41-year-old transient, appeared on charges of failure to register as a sex offender.  If convicted of the charge contained in the indictment, BROCK faces 10 years in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the United States Marshals Service.  PACER Case Reference.  17-52

• STEVEN NEIL HOPPER, a 29-year-old resident of Laurel, appeared on charges of felon in possession of firearms and ammunition.  If convicted of the charge contained in the indictment, HOPPER faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-44

• CURTIS WAYNE OLSON, a 46-year-old resident of Billings, appeared on charges of possession of a firearm not registered in the National Firearms Registration and Transfer Record.  If convicted of the most serious charge contained in the indictment, OLSON faces 10 years in prison, $10,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  17-48

Appearing before U.S. Magistrate Johnston in Great Falls on May 15, 2017 and entering pleas of Not Guilty were:

• GREGORY CANTRELL AZURE, a 35-year-old resident of Wolf Point, appeared on charges of assault resulting in serious bodily injury, and assault with a dangerous weapon.  If convicted of the most serious charge contained in the indictment, AZURE faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.   PACER Case Reference.  17-28

• NICHOLAS DANIEL BURSHIA, a 18-year-old resident of Fort Kipp, appeared on charges of aggravated sexual abuse, and abusive sexual contact.  If convicted of the most serious charge contained in the indictment, BURSHIA faces life in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.   PACER Case Reference.  17-29

• VINCENT PAUL FUREY, a 41-year-old resident of Idaho Falls, Idaho, appeared on charges of interstate communication of a threat to injure, interstate communication with intent to extort, and interstate stalking.  If convicted of the most serious charges contained in the indictment, FUREY faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.   PACER Case Reference.  17-07

Appearing before U.S. Magistrate Johnston in Great Falls on May 11, 2017 and entering pleas of Not Guilty were:

• PAUL BRIAN HARWOOD, a 36-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury, and domestic abuse by a habitual offender.  If convicted of the most serious charge contained in the indictment, HARWOOD faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation.   PACER Case Reference.  17-30

• ROBERT DAVID LINN, JR., a 52-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charges contained in the indictment, LINN faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by Homeland Security Investigations, Great Falls Police Department, and Russell Country Drug Task Force.  PACER Case Reference.  17-31

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

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

***In order to protect the privacy of the child victim in this case, the United States Attorney’s Office is requesting that the media not disclose the victim’s name or display an image of the victim when reporting this story. We are aware that her identity and images were released to the public in the course of the Amber Alert. This is simply a request, and we understand that the decision is ultimately left to your discretion. Please do not hesitate to contact our Public Information Officer below with any questions.***

MISSOULA – Rodney Lee Zahn, 61, formerly of Madison County, Montana, was sentenced today in federal court for transporting a child in interstate commerce with the intent the child engage in criminal sexual activity, namely sexual abuse of a minor in the third degree. Zahn pleaded guilty to the charge on January 30, 2017. Chief U.S. District Court Judge Dana Christensen sentenced Zahn to 120 months in prison. Following his release, Zahn will be placed on supervised release for 10 years. Zahn is also required to pay $ 773.04 in restitution to the victim, and forfeit his Ford pickup truck and camper that was used to transport the minor victim out of Montana.

In an offer of proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that in late July 2016, Defendant Rodney Lee Zahn befriended a family in Sheridan, Montana. This included the family’s 16-year old daughter. Due to a diagnosed intellectual disability, the child cannot make sound judgments and is at risk of being manipulated by others. On the night of August 1, 2016, Zahn met the child a few blocks from the family’s residence. Zahn and the child left Sheridan that night in his truck pulling a camper trailer. After discovering she was gone the next morning, the child’s family reported her missing. On August 4, 2016, law enforcement located Zahn and the child in Casper, Wyoming. Zahn was arrested and was interviewed. Zahn admitted that he and the child left Montana, and drove through Idaho into Wyoming. Zahn admitted that he and the child had sexual intercourse twice during the trip. Zahn also stated that he knew the child was 16 years old.

Madison County Sheriff Roger Thompson stated, “It was highly unfortunate that Mr. Zahn decided to make the decision he did that created such a grave concern for the family. Getting the victim back safely was a great outcome. The cooperation and assistance the Federal Bureau of Investigation (FBI) and National Center for Missing and Exploited Children (NCMEC) provided to the Madison County Sheriff’s Office was tremendous and deeply appreciated.”

Federal Bureau of Investigation Ricky Shelbourn stated, “Rodney Zahn took advantage of a family’s trust and generosity, only to manipulate and victimize their daughter. The FBI aims to protect society’s most vulnerable from predators like Zahn. The effort is greatly enhanced because we work closely together with our law enforcement partners. In this case, inter-agency collaboration was integral to our finding the victim within 48 hours from her disappearance.”

The case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation, the Madison County Sheriff’s Office, and the Casper Wyoming Police Department.

MISSOULA – Roam Savage Chandler, 22, of Missoula, Montana, was sentenced to 120 months in prison, 10 years supervised release, and a $200 special assessment by United States District Court Judge Donald W. Molloy on Friday, May 12, 2017 for sex trafficking of a minor and using an interstate facility to promote prostitution.  In April and May 2017, Chandler sex trafficked a 17-year old girl and promoted the prostitution of a 22-year old woman in Missoula, Montana.  Chandler advertised both females on backpage.com and obtained funds through the females engaging in commercial sex acts. 

FBI Supervisory Senior Resident Agent Ricky Shelbourne said, “"Human trafficking is a devastating crime that the FBI and our law enforcement partners will continue to fight aggressively. Today’s sentencing is the result of a collaborative effort, multiple agencies working together with one goal, to keep youth and vulnerable individuals safe from those who prey on them."

Montana Regional Violent Crime Task Force Officer Guy Baker said, “This case resulted from Missoula PD patrol officers contacting the juvenile victim at a local hotel and recognizing she was a possible trafficking victim. The resulting investigation by MPD and the FBI's Montana Regional Violent Crime Task Force identified the suspect and a second trafficking victim. This is a serious crime happening in Missoula and in other communities across Montana.  The FBI and Missoula PD take a very proactive approach in investigating and prosecuting the suspects who exploit the females involved in these sex trafficking cases.”

Chandler’s investigation was conducted by the Montana Regional Violent Crime Task Force, Federal Bureau of Investigation, and Missoula Police Department. Assistant United States Attorney Cyndee L. Peterson prosecuted the case.

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

 

Appearing before U.S. Magistrate Cavan in Billings on May 4, 2017 and entering pleas of Not Guilty were:

 

• THYANNA FAITH LITTLESUN, a 23-year-old resident of Lame Deer, appeared on charges of involuntary manslaughter, and assault resulting in serious bodily injury. If convicted of the most serious charge contained in the indictment, LITTLESUN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation. PACER Case Reference. 17-45

 

• LENRAY JESS TWO TWO, a 51-year-old resident of Lame Deer, appeared on charges of aggravated sexual abuse, and abusive sexual contact. If convicted of the most serious charge contained in the indictment, TWO TWO faces life in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-51

 

Appearing before U.S. Magistrate Johnston in Great Falls on May 2, 2017 and entering pleas of Not Guilty were:

 

• ANDREW RUNNING CRANE, a 32-year-old resident of Heart Butte, appeared on charges of theft of federally provided welfare benefits by fraud, and federal welfare assistance fraud. If convicted of the most serious charge contained in the indictment, RUNNING CRANE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Agriculture Office of Inspector General. PACER Case Reference. 17-19

 

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 so that you stay current and not miss any important developments in the case.

 

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