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 Ostby in Billings on April 28, 2016 and entering pleas of Not Guilty were:

• TAWNYA BEARCOMESOUT, a 39-year-old resident of Lame Deer, appeared on charges of voluntary manslaughter, and involuntary manslaughter.  If convicted of the most serious charge contained in the indictment, BEARCOMESOUT faces 15 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. 16-13

Appearing before U.S. Magistrate Ostby in Billings on April 26, 2016 and entering pleas of Not Guilty were:

• DUANE TIMOTHY SMITH, a 34-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm not registered in National Firearms Registration and Transfer Record.  If convicted of the most serious charges 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 Federal Bureau of Investigation.  PACER Case Reference. 16-46

• THOMAS DEAN SMITH, a 42-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charges contained in the indictment, SMITH faces life in 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. 16-46

Appearing before U.S. Magistrate Johnston in Great Falls on April 25, 2016 and entering pleas of Not Guilty were:

• RAFAEL RAMOS-ROMERO, a 29-year-old resident of Mexico, appeared on charges of illegal reentry.  If convicted of the charge contained in the indictment, RAMOS-ROMERO faces 10 years in prison, $250,000 in fines, and 3 years supervised release.  The case was investigated by the Department of Homeland Security.  PACER Case Reference. 16-14

• RYAN JASON TATSEY, a 31-year-old resident of Spokane, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, TATSEY faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Bureau of Indian Affairs, Drug Enforcement Administration and Glacier County Sheriff’s Office.  PACER Case Reference. 16-16

Appearing before U.S. Magistrate Ostby in Billings on April 25, 2016 and entering pleas of Not Guilty were:

• PEDRO CARRASCO, JR., a 33-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, felon in possession of a firearm, 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, CARRASCO faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference. 16-41

• MATTHEW DENNIS COZZENS, a 32-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, COZZENS faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference. 16-43

• JOSHUA DON RAY, a 37-year-old resident of Ashland, appeared on charges of distribution of methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, RAY 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. 16-47

• GEORGIA ANN WILSON, a 40-year-old resident of Ashland, appeared on charges of distribution of methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, WILSON 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. 16-47

• TROY DEE WILSON, a 21-year-old resident of Ashland, appeared on charges of distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, WILSON 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. 16-47

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  – The U.S. Attorney’s Office for the District of Montana will participate in a reentry training event at the Montana State Prison in Deer Lodge today, as part of the Department of Justice’s national reentry week events.  The event will be one of more than 500 reentry week events across the nation, promoting the importance of reentry issues.

President Obama kicked off reentry week events on Saturday with remarks that stressed the economic and societal costs of high rates of incarceration and the importance of investing in alternatives to prison such as drug courts and mental health treatment.  On Monday, Attorney General Loretta Lynch announced the “Roadmap to Reentry,” the Department’s comprehensive vision to reduce recidivism through reentry reforms at the Federal Bureau of Prisons (BOP).  The initiative is intended to respond to the needs of more than 600,000 citizens who return to neighborhoods and communities after serving time in federal and state prisons.  

The principles Attorney General Lynch outlined in the “Roadmap to Reentry” are aligned with the work of the Federal Interagency Reentry Council, which has been working for the past five years to reduce recidivism and improve employment, education, housing, health and child welfare outcomes.  These principles include the formulation of individualized reentry plans; educational, employment, life skills, and substance abuse programs during incarceration; resources to maintain and build family relationships for inmates while incarcerated; establishment of halfway house and supervised release programs that cater to the needs of individuals; and the provision of comprehensive reentry-related information and resources necessary for former offenders to succeed as citizens.

Thursday’s event is a combined effort that will include a presentation by the Montana U.S. Attorney’s Office Reentry Coordinator, Michael Lahr; the American Indian Liaison for the Montana Department of Corrections, Harlan Trombley; and the Vice-President of the Northern Cheyenne Tribe, Winfield Russell, as well as Reentry Specialist Jim Pagels of the Montana Department of Corrections.  The presentation to the inmates will focus on federal firearms laws and address general reentry issues.  The Northern Cheyenne Vice-President, the DOC American Indian Liaison and the USAO Reentry Coordinator will also meet with prison officials regarding reentry efforts with a particular focus on Native American inmates.

This event follows a Tribal Reentry Training held on March 29 and 30, 2016, and co-hosted by the Montana U.S. Attorney’s Office and the Tribal Defenders Holistic Defense Program of the Confederated Salish and Kootenai Tribes (CSKT) on the Flathead Indian Reservation.  The training included presentations by members of the Muscogee (Creek) Nation Reintegration Program, which is considered a model for effective reentry programs, presentations by the CSKT Tribal Defenders on the Flathead reentry program, which is currently under development, and presentations from the Montana Department of Corrections Staff about the Montana Reentry Task Force.  The program concluded with a presentation by the United States Probation Office on reentry issues from the federal perspective.

Following that training, U.S. Attorney Michael Cotter met with United States District Court Judge Brian Morris on April 6, 2016 to discuss expanding reentry efforts by the courts.  Judge Morris invited U.S. Attorney Cotter to provide him with information about reentry initiatives in Montana and across the country with the goal of integrating reentry concepts into judicial practices.  Some of the topics discussed included special courts, including drug and veterans courts, along with mentoring and training programs.  The high recidivism rate of Native Americans was also a major topic as Judge Morris handles cases involving four of Montana’s seven Indian reservations.

“Successful reentry is a critical issue both on and off of Montana’s reservations,” said U.S. Attorney Mike Cotter.  “The Department of Justice has made clear through its ‘Roadmap to Reentry’ initiative that our approach must be holistic, rather than focused merely on prosecution of offenders.  It is in the best interests of federal, tribal, state, and local governments to ensure that offenders who have paid their debt to society are given a meaningful opportunity to rebuild their lives and participate in their communities.  This Office’s reentry efforts, with the help of our tribal and state partners, are a critical part of that initiative.”

The “Roadmap to Reentry” initiative can also be seen as an extension of former Attorney General Eric Holder’s Smart on Crime Initiative.  While Smart on Crime looks to change policies to reduce incarceration rates and reserve BOP resources for the most hardened criminals, Attorney General Lynch is looking to advance target programs while individuals are in prison so that they are more productive when they return to their communities and are less likely to reoffend.  More information on DOJ’s reentry week programs and the “Roadmap to Reentry” can be found at: https://www.justice.gov/reentry.

BILLINGS – Leon Seminole, 58, of Lame Deer, was convicted of assault and strangulation for punching and attempting to strangle a female victim.  Seminole was convicted yesterday by a Billings jury following a two-day trial.  U.S. District Court Judge Susan Watters presided over the trial.  Sentencing has been set for August 31, 2016.

In documents filed with the Court, The United States Attorney’s Office outlined the proof presented at trial.  On August 17, 2014, Seminole punched, kicked, and attempted to strangle the victim.  The victim was able to escape from Seminole.  After the assault,  one of the victim’s family members attempted to confront Seminole, but Seminole had a gun in his hand and the family member retreated.

Witnesses testified that the victim’s face was red and swollen and she looked like she had been beaten up.  Medical evidence presented at trial documented that the victim had suffered multiple contusions to her head and face.  Both eyes were swollen and one was swollen shut.  The victim had a broken tooth, which she said had been broken as she struggled with Seminole.  Photos taken by the BIA officer present when the victim was seen at Indian Health Services showed substantial swelling and various other injuries. 

This case was investigated by the Bureau of Indian Affairs and prosecuted by the United States Attorney’s Office.

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 April 21, 2016 and entering pleas of Not Guilty were:

• CHRISTOPHER CONVERSE HARLING, of Missoula, appeared on charges of receipt of child pornography.  If convicted of the charge contained in the indictment, HARLING faces 20 years in prison, $250,000 in fines, and lifetime supervised release.  The case was investigated by the Internet Crimes Against Children Task Force, Montana Division of Criminal Investigation and Missoula Police Department.  PACER Case Reference. 16-18

Appearing before U.S. Magistrate Johnston in Great Falls on April 19, 2016 and entering pleas of Not Guilty were:

• FX DRILLING COMPANY, of Shelby, appeared on charges of negligent discharge of oil into waters of the United States in a quantity that may be harmful.  If convicted of the charge contained in the indictment, FX DRILLING COMPANY faces 5 years in prison, $500,000 in fines, and 1 year supervised release.  The case was investigated by the Environmental Protection Agency.  PACER Case Reference. 16-20

• ERIC J. MARTELL, a 44-year-old resident of Wolf Point, appeared on charges of obstruction of the mail.  If convicted of the charge contained in the indictment, MARTELL faces 6 months in prison and $5,000 in fines.  The case was investigated by the United States Postal Service Office of Inspector General.  PACER Case Reference. 16-02

Appearing before U.S. Magistrate Johnston in Great Falls on April 13, 2016 and entering pleas of Not Guilty were:

• JACQUELINE MARIE KIRKALDIE, a 29-year-old resident of Harlem, 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, KIRKALDIE faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference. 16-32

Appearing before U.S. Magistrate Ostby in Billings on April 13, 2016 and entering pleas of Not Guilty were:

• DAVID LAWRENCE SCHEIN, a 59-year-old resident of Billings, appeared on charges of conspiracy to manufacture methamphetamine, possession with intent to distribute methamphetamine, and manufacturing methamphetamine.  If convicted of the most serious charges contained in the indictment, SCHEIN 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. 16-39

Appearing before U.S. Magistrate Ostby in Billings on April 12, 2016 and entering pleas of Not Guilty were:

• MATTHEW STONEY OLSON, a 37-year-old resident of Circle, appeared on charges of receipt of child pornography, and possession of child pornography. If convicted of the most serious charge contained in the indictment, OLSON faces 20 years in prison, $250,000 in fines, and lifetime supervised release.  The case was investigated by the Homeland Security Investigations and Montana Division of Criminal Investigation.  PACER Case Reference. 16-30

Appearing before U.S. Magistrate Johnston in Great Falls on April 11, 2016 and entering pleas of Not Guilty were:

• CLIFFORD AIMSBACK, a 21-year-old resident of Browning, 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, AIMSBACK 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. 16-33

• CHRISTIE MARIE FARMER, a 37-year-old resident of Browning, 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, FARMER 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, Drug Enforcement Administration and Federal Bureau of Investigation.  PACER Case Reference. 16-28

• THOMAS BLACKFACE GRANT, a 67-year-old resident of Heart Butte, appeared on charges of aggravated sexual abuse.  If convicted of the most serious charge contained in the indictment, GRANT faces life in prison, $250,000 in fines, and lifetime supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference. 16-34

• JOHN ALVIN HODSON, a 44-year-old resident of Browning, 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, HODSON faces life in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Bureau of Indian Affairs, Drug Enforcement Administration and Federal Bureau of Investigation.  PACER Case Reference. 16-25

• JOSIE MARIE MAFFITT, a 38-year-old resident of Great Falls, 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, MAFFITT faces 40 years in prison, $5,000,000 in fines, and 4 years supervised release.  The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-31

• LAVONNIE JEAN MCMANUS, a 39-year-old resident of Hungary Horse, 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, MCMANUS faces 20 years in prison, $10,000,000 in fines, and 5 years supervised release.  The case was investigated by the Bureau of Indian Affairs, Drug Enforcement Administration, and Federal Bureau of Investigation.  PACER Case Reference. 16-26

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 - Joseph Dean Lee, 27, of Scobey, was sentenced for assault with the intent to commit aggravated sexual abuse and assault with the intent to commit abusive sexual contact on April 19, 2016.  Lee was convicted following a jury trial in January.  U.S. District Court Judge Brian M. Morris sentenced Lee to 110 months of imprisonment, three years of supervised release, and a $200 special assessment. 

In documents filed with the Court, Assistant U.S. Attorney Ryan Weldon outlined the proof presented at trial.  On January 28, 2015, at approximately 3:00 a.m., the victim called 911 while she was being raped.  The 911 operator heard the victim begging Lee to stop, telling Lee to quit “choking” her, and stating that Lee “ripped” her pants down.  The 911 operator immediately dispatched law enforcement to a rape in progress.  Lee released the victim, and law enforcement found Lee in the victim’s bed after arriving on scene.  When interviewed at the police station, Lee claimed that he never touched the victim.  Law enforcement swabbed Lee’s penis, and it showed that, to a reasonable degree of scientific certainty, the foreign DNA on Lee’s penis was the victim’s DNA.

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

This case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribe.

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 Ostby in Billings on April 6, 2016 and entering pleas of Not Guilty were:

• FRANK E. BARNES, a 35-year-old resident of Billings, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, BARNES 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. 16-25

• DARRELL DUANE BAUMGARTNER, a 43-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, BAUMGARTNER 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.  16-31

• ROPER RAY BLANKENSHIP, a 22-year-old resident of Miles City, 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, BLANKENSHIP faces life in prison, $5,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  16-07

• DERRICK LEE DEAN MOORE, a 31-year-old resident of Cartwright, North Dakota, appeared on charges of unlawful 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, MOORE faces 10 years in prison, $250,000 in fines and 3years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  16-17

Appearing before U.S. Magistrate Ostby in Billings on April 5, 2016 and entering pleas of Not Guilty were:

• ANTJUAN MARIO BROWN, a 44-year-old transient, appeared on charges of failure to register as a sex offender.  If convicted of the charge contained in the indictment, BROWN 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.  16-08

• JONATHAN GRIMALDO CASTRO, a 23-year-old resident of Billings, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, CASTRO 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.  15-120

Appearing before U.S. Magistrate Lynch in Missoula on April 5, 2016 and entering pleas of Not Guilty were:

• CHRISTOPHER ISSAC COX, a 25-year-old resident of Butte, appeared on charges of felon in possession of a firearm and possession of stolen firearms.  If convicted of the most serious charge contained in the indictment, COX 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.  16-07

Appearing before U.S. Magistrate Johnston in Great Falls on April 5, 2016 and entering pleas of Not Guilty were:

• JASON CHAULK, a 40-year-old resident of Columbia Falls, appeared on charges of theft of government property.  If convicted of the charge contained in the information, CHAULK faces 1 year in prison, $100,000 in fines and 1 year supervised release.  The case was investigated by the National Park Service.  PACER Case Reference.  16-13

Appearing before U.S. Magistrate Ostby in Billings on March 31, 2016 and entering pleas of Not Guilty were:

• SHAWNA RAE WILSON, a 36-year-old resident of Garryowen, appeared on charges of assault with a dangerous weapon and use and discharge of a firearm during and in relation to a crime of violence.  If convicted of the most serious charge contained in the indictment, WILSON faces life in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  16-36

Appearing before U.S. Magistrate Johnston in Great Falls on March 31, 2016 and entering pleas of Not Guilty were:

• SUNDOWN WILLIAM NELSON, a 38-year-old resident of Great Falls, 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 charge contained in the indictment, NELSON faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Homeland Security Investigations and Russell Country Drug Task Force.  PACER Case Reference.  16-23

Appearing before U.S. Magistrate Johnston in Great Falls on March 29, 2016 and entering pleas of Not Guilty were:

• BRIAN KELLY EAGLEMAN, a 53-year-old resident of Box Elder, appeared on charges of conspiracy to defraud the Chippewa Cree Tribe, scheme to defraud the Chippewa Cree Tribe/wire, and theft from and Indian tribal organization.  If convicted of the most serious charges contained in the indictment, EAGLEMAN faces 20 years in prison, $250,000 in fines and years supervised release.  The case was investigated by the U.S. Department of Interior Office of Inspector General, U.S. Department of Health and Human Service Office of Inspector General, Internal Revenue Service, and the Federal Bureau of Investigation.  PACER Case Reference.  16-22

• KEVIN DAVID McGOVERN, a 46-year-old resident of Billings, appeared on charges of conspiracy to defraud the Chippewa Cree Tribe, scheme to defraud the Chippewa Cree Tribe/wire, and bribery/offering.  If convicted of the most serious charges contained in the indictment, McGOVERN faces 20 years in prison, $250,000 in fines and years supervised release.  The case was investigated by the U.S. Department of Interior Office of Inspector General, U.S. Department of Health and Human Service Office of Inspector General, Internal Revenue Service, and the Federal Bureau of Investigation.  PACER Case Reference.  16-22

Appearing before U.S. Magistrate Lynch in Missoula on March 29, 2016 and entering pleas of Not Guilty were:

• NICHOLAS RICHARD AXELBERG, a 36-year-old resident of Lakeside, 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, AXELBERG faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Missoula HIDTA and the Drug Enforcement Administration.  PACER Case Reference.  16-11

Appearing before U.S. Magistrate Ostby in Billings on March 28, 2016 and entering pleas of Not Guilty were:

• WENDY REINHOLZ, a 59-year-old resident of Molt, appeared on charges of misappropriation of postal funds.  If convicted of the charge contained in the indictment, REINHOLZ faces 10 year in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the U.S. Postal Service Office of Inspector General.  PACER Case Reference.  16-20

Appearing before U.S. Magistrate Johnston in Great Falls on March 24, 2016 and entering pleas of Not Guilty were:

• AARON DOUGLAS WILCOX, a 44-year-old resident of Great Falls, 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 charge contained in the indictment, WILCOX faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Homeland Security Investigations and Russell Country Drug Task Force.  PACER Case Reference.  16-23

Appearing before U.S. Magistrate Ostby in Billings on March 24, 2016 and entering pleas of Not Guilty were:

• JESSE MARIO GONZALEZ, a 38-year-old resident of Billings, appeared on charges of prohibited person in possession of a firearm.  If convicted of the charge contained in the indictment, GONZALEZ faces 10 year 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.  16-32

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system 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 – Following a four day federal trial, a Montana jury found Joseph David Robertson, 77, guilty on two counts of unauthorized discharge of pollutants into waters of the United States and one count of injury or depredation of United States property.

Robertson was indicted by a grand jury in May of 2015 as a result of illegal ponds he built on two parcels of land near Basin, Montana, one on Beaverhead-Deerlodge National Forest land and the other on adjacent private property.  The ponds resulted in the discharge of dredged and fill material into a tributary stream and adjacent wetlands and caused widespread damage to both properties.

At trial, the government introduced evidence that in October of 2013, a United States Forest Service (USFS) Special Agent visited the National Forest property to determine whether Robertson had complied with previously issued conditions of probation for misdemeanor violations of USFS regulations.  The Agent testified at trial that during the site visit, she observed multiple ponds dug into an existing stream on both USFS and adjacent private property.

During a subsequent site visit in November of 2013, Robertson admitted to Environmental Protection Agency (EPA) and USFS Criminal Special Agents that he had performed the work on the National Forest property using an excavator.  State and federal officials visited the site again in May of 2014, and observed that Robertson had done additional work.  The site was now approximately 1.2 acres in size, and extended beyond the National Forest property to a private property that he did not own.  The work consisted of nine ponds of varying sizes, including some as large as approximately 4900 square feet that were placed directly in the stream and wetlands area.  Unconsolidated dredged material from the ponds had been used to create the berms and had been placed in and around the stream and wetlands.  Robertson admitted that he had completed the additional work.  Additional investigation revealed that Robertson continued to construct ponds on the USFS property after May of 2014, despite being told repeatedly that he had no legal right to do so.

One of the central legal issues at trial was whether the waters polluted by Robertson were “waters of the United States” for purposes of the Clean Water Act.  The United States introduced evidence and expert testimony from the Army Corps of Engineers and the EPA that the stream and wetlands had a significant nexus to traditional navigable waters, and therefore were “waters of the United States.”  Fishery biologists from the Montana Fish, Wildlife and Parks (FWP) and the USFS testified that this headwater and wetland complex provided critical support to trout in downstream rivers and fisheries, including the Boulder and Jefferson Rivers.

“This verdict sends a message that the United States will not stand by and allow streams and wetlands of the United States to be polluted, or National Forest lands to be injured,” said United States Attorney for the District of Montana Mike Cotter.  “Clean and healthy waterways are a critical resource for all forms of life and are a Montana value.  It is imperative that we protect this increasingly scarce resource.  The collaborative efforts of multiple state and federal agencies in cases like this help ensure that individuals who seek to degrade it will be held accountable.”

“Rivers, streams and wetlands provide essential habitat for fish and wildlife which must be protected, and EPA and its law enforcement partners are committed to protecting these invaluable natural assets as well as the communities around them,” said Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Montana.  “The defendant’s illegal activity took place not only on public land but also on private property he didn’t own.  Today’s guilty verdict demonstrates that polluters will be held accountable for their actions."

The case was prosecuted by Assistant U.S. Attorney Bryan Whittaker and Special Assistant U.S. Attorney Eric Nelson from the United States Environmental Protection Agency.  This case was investigated by multiple state and federal agencies including the United States Forest Service, the Environmental Protection Agency Criminal Investigation Division, the Army Corps of Engineers, and the Jefferson County Sheriff’s Office.    Other agencies that assisted the investigation included Montana Fish, Wildlife and Parks and the Jefferson Valley Conservation District.

MISSOULA – Following a three day federal trial, a Montana jury found Kyle Robert Wick, 31, of Stevensville, guilty of manufacturing and dealing in firearms without a license.  The charges stemmed from Wick’s advertisement and sale of “Uzi parts kits” on a gun sale website.  Sentencing has been set for July 22, 2016.

Wick was originally indicted by a grand jury in October of 2015, for transfer of firearms not registered in the National Firearms Registration and Transfer Record.  A superseding indictment containing additional counts, including manufacturing and dealing firearms without paying tax, registering as a dealer, or having a license, was filed in March 2016.  The Jury acquitted on counts related to transfer of unregistered firearms and failing to pay tax or register as a dealer, but found Wick guilty of dealing firearms without a license.

At trial, the government introduced evidence that in April of 2013, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), found an advertisement for an “Uzi parts kit” for sale on the website gunbroker.com.  In May of 2013, a confidential informant made contact with the seller, who was located in Stevensville, Montana.  The seller identified himself as Kyle Wick.  The informant purchased an Uzi parts kit from Wick for $1,200.  Wick explained to the informant how to machine the parts to assemble them as a semi-automatic weapon.

The parts kit was turned over to ATF.  An ATF officer was able to reassemble the parts into a functioning machinegun configuration.  The ATF conducted a search for Kyle Robert Wick in the National Firearms Registration and Transfer Record (NFRTR), and failed to locate his name.  The Uzi parts kit likewise was not registered with the NFRTR.  ATF agents conducted a search of Wick’s Stevensville residence in March of 2014 and seized firearms parts and computers.

The agents interviewed Wick during the search of his residence.  Wick said that he had conducted sales on gunbroker.com for approximately four years.  He acknowledged that he did not have a license to manufacture firearms or machineguns.  He stated that he had sold “at least several dozen” Uzi parts kits in addition to the one purchased by the informant.  He said that he did all of the welding work in his garage.  The ATF recovered numerous additional kits that Wick had sold online, which contained parts capable of assembling semi-automatic or fully automatic machineguns.  Wick did not possess a license to manufacture or deal in firearms as required by the Gun Control Act of 1968.

“The US Department of Justice is dedicated to enforcing our existing gun laws and to ensuring that gun sales are conducted only by reputable dealers in compliance with the law,” said U.S. Attorney Michael Cotter.  “The Jury’s verdict in this case reinforces the truth that nobody is above these laws, and that individuals like Mr. Wick, who attempt to circumvent them, will be held accountable.”

“Wick intentionally bypassed federal regulations by manufacturing and dealing firearms without a license,” said ATF Special Agent in Charge Ken Croke. “These federal firearms regulations were enacted to protect American citizens by restricting criminals’ access to guns and assisting law enforcement investigations related to violent gun crime.”

The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and Special Assistant U.S. Attorney Adam Duerk.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives.

 

PABLO  – The U.S. Attorney’s Office for the District of Montana and the Tribal Defenders Holistic Defense Program of the Confederated Salish and Kootenai Tribes (CSKT) will present a training on offender reentry issues on March 29 and 30, 2016, on the campus of the Salish Kootenai College in Pablo, Montana.  The program is titled “Reentry in Tribal Communities” and will focus on the difficulties faced by Native American offenders returning to their communities following incarceration in state and federal prison facilities.

The training is in keeping with efforts in recent years by both the State of Montana and the US Department of Justice to reduce the rate of recidivism and promote successful reintegration into society for individuals who have been incarcerated.  The goal of such efforts is to break the cycle of incarceration that is too prevalent in both tribal and non-tribal communities.  A critical step towards accomplishing that goal is to address the many obstacles to successful reentry that offenders face following their release.  The speakers bring a broad range of knowledge and expertise on how to navigate those obstacles.

The focal point of Day One of the training will be presentations by members of the Muscogee (Creek) Nation Reintegration Program, which has received national recognition and is considered a model for effective reentry programs.  The second day will begin with a presentation on historical trauma by University of Montana professor Dr. Gyda Swaney, followed by a presentation by the CSKT Tribal Defenders on the Flathead reentry program, which is currently under development.  Their program includes work programs for returning offenders, reentry intake and assessment tools, mental health issues for reentering adults, and the collateral consequences of convictions and special legal issues faced by those returning to the community after incarceration.  Day two will also include presentations from Montana Department of Corrections staff.  They will discuss the accomplishments of the Montana Reentry Task Force, and the resources available through the Task Force.

“This training reflects a concerted federal, tribal, and state effort to reduce recidivism and promote successful offender reintegration into our tribal communities,” said U.S. Attorney for the District of Montana Mike Cotter.  “The diverse range of expertise possessed by the presenters represents a unique opportunity to share and exchange experience and knowledge about successful reentry techniques both on and off the reservation.  By continuing to work cooperatively and to share our accumulated knowledge, we can facilitate successful reentry in all Montana communities.”

“This training will give a perspective regarding the circumstances of reentry in a tribal community, said Ann Sherwood, Managing Attorney for the CSKT Tribal Defenders.  “We also hope to begin a discussion regarding better ways for the criminal justice system to address mental health and addiction issues in order to reduce recidivism.”

The Training will take place at the Johnny Arlee and Victor Charlo Theatre on the Salish Kootenai Campus.

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 March 23, 2016 and entering pleas of Not Guilty were:

• GEORGE GERALDO a 42-year-old resident of Las Vegas, Nevada, appeared on charges of conspiracy to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, GERALDO 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.  16-15

• JAMIE RYAN MISCAMPBELL a 31-year-old resident of Kila, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, CAMPBELL faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Northwest Drug Task Force and Homeland Security Investigations.  PACER Case Reference.  16-17

• ANDREW JOSEPH SHIELDS a 32-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, SHIELDS faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Northwest Drug Task Force and Homeland Security Investigations.  PACER Case Reference.  16-17

Appearing before U.S. Magistrate Johnston in Great Falls on March 22, 2016 and entering pleas of Not Guilty were:

• TYRELL HENDERSON, a 26-year-old resident of Box Elder, appeared on charges of involuntary manslaughter. If convicted of the charge contained in the indictment, HENDERSON faces 8 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.  16-10

• ARIANNE LATRAY, a 23-year-old resident of Harlem, appeared on charges of second degree murder. If convicted of the charge contained in the indictment, LATRAY 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.  16-21

Appearing before U.S. Magistrate Lynch in Missoula on March 22, 2016 and entering pleas of Not Guilty were:

• STEVE ALAN BRITTNER a 50-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, BRITTNER 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.  16-15

Appearing before U.S. Magistrate Lynch in Missoula on March 21, 2016 and entering pleas of Not Guilty were:

• KAULIKA THARA ARENSBERG, a 35-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine.  If convicted of the charge contained in the indictment, ARENSBERG faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Missoula HIDTA and the Drug Enforcement Administration.  PACER Case Reference.  16-11

• JAMES MICHAEL RANDALL, a 31-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine.  If convicted of the charge contained in the indictment, RANDALL faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Missoula HIDTA and the Drug Enforcement Administration.  PACER Case Reference.  16-11

Appearing before U.S. Magistrate Lynch in Missoula on March 18, 2016 and entering pleas of Not Guilty were:

• JENNIFER BROOKE BUSHNELL, a 30-year-old resident of Bozeman, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.  If convicted of the most serious charges contained in the indictment, BUSHNELL faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Missouri River Drug Task Force.  PACER Case Reference.  15-13

• GABRIEL CALVIN SMITH, a 39-year-old resident of Bozeman, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.  If convicted of the most serious charges contained in the indictment, SMITH faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Missouri River Drug Task Force.  PACER Case Reference.  15-13

Appearing before U.S. Magistrate Johnston in Great Falls on March 17, 2016 and entering pleas of Not Guilty were:

• JONATHAN JAY EAGLEMAN, a 50-year-old resident of Box Elder, appeared on charges of false statements to a federal agency.  If convicted of the most serious charges contained in the indictment, EAGLEMAN faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Environmental Protection Agency.  PACER Case Reference.  16-06

Appearing before U.S. Magistrate Johnston in Great Falls on March 15, 2016 and entering pleas of Not Guilty were:

• LOREN JAMES RIDER, a 38-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury/aiding and abetting.  If convicted of the charge contained in the indictment, RIDER 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.  16-17

Appearing before U.S. Magistrate Lynch in Missoula March 15, 2016 and entering pleas of Not Guilty were:

• KELLY GORDON DUPUIS, a 26-year-old resident of Polson, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, DUPUIS faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Missoula HIDTA and the Drug Enforcement Administration.  PACER Case Reference.  16-11

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 U.S. Attorney’s Office for the District of Montana and the Missoula Police Department will host a two-day training titled “Sex Trafficking: Investigation and Prosecution.”  The Mansfield Center at the University of Montana, the Montana DOJ Children’s Justice Center, FBI’s Montana Regional Violent Crime Task Force and the Montana Human Trafficking Task Force have also collaborated on the event.  The training will take place at the University of Montana March 23-24, 2016, and is open to registered law enforcement personnel.  Attendees come from Idaho, Montana, Utah, and Washington.

The training is designed to help law enforcement personnel gain a comprehensive understanding of the crime of sex trafficking, recognize common indicators to identify victims, and learn effective techniques for victim interviews and investigative strategies.  A primary goal of the training is to promote law enforcement awareness and provide tools and techniques for the successful prosecution of sex trafficking that law enforcement personnel can take back to their communities.

This training is one of several held this year in Montana that reflect the Office’s focus on the issue of sex trafficking.  Similar trainings hosted by the U.S. Attorney’s Office and the FBI were held earlier this year on three Montana Indian Reservations  for the benefit of law enforcement officers working in Indian Country.  Following this training, the U.S. Attorney’s Office will have collaborated in the training of more than 300 law enforcement personnel from multiple jurisdictions.

“This training reflects our shared commitment to eradicating the scourge of sex-trafficking that plagues communities regionally, nationally, and internationally,” said U.S. Attorney for the District of Montana Mike Cotter.  “Human trafficking is a crime that occurs in the shadows, in the margins of our country and around the world.  It is not just a federal matter; it is a matter that needs to be tackled with all available resources:  by federal, state, tribal and local law enforcement along with our community and faith based organizations.”

“This training is a product of the long-standing collaborative relationship between the Missoula Police Department, the U.S. Attorney’s Office, and the FBI,” said Missoula Police Chief Mike Brady.  “Our Department has been working with the Federal Government on this issue for some time.  This training gives us the opportunity to share the results of that collaboration with the regional law enforcement community.”

The training is closed the public and the press.

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 March 8, 2016 and entering pleas of Not Guilty were:

• CHERYL LYNN LITTLE DOG, a 43-year-old resident of East Glacier, appeared on charges of harboring a fugitive, and false statements to federal law enforcement.If convicted of the most serious charge contained in the indictment, LITTLE DOG faces 5 years in prison, $250,000 in fines and 3 years supervised release.The case was investigated by the Federal Bureau of Investigation and the United States Marshals Service.PACER Case Reference.  16-09

• HEATHER RAE SCHWARZROCK, a 25-year-old resident of Poplar, appeared on charges of theft from a local government receiving federal funding and theft.If convicted of the most serious charge contained in the indictment, SCHWARZROCK 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.  16-07

Appearing before U.S. Magistrate Ostby in Billings on March 8, 2016 and entering pleas of Not Guilty were:

• ASHLEY SHANTELL REYNA, a 28-year-old resident of Billings, appeared on charges of false statement during purchase of a firearm.If convicted of the charge contained in the indictment, REYNA 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.  16-29

• TERRY MALENE SEMINOLE, a 54-year-old resident of Lame Deer, appeared on charges of assault resulting in serious bodily injury.If convicted of the charge contained in the indictment, SEMINOLE faces 10 years in prison, $250,000 in fines and 3 years supervised release.The case was investigated by the Bureau of Indian Affairs.PACER Case Reference.  16-11

Appearing before U.S. Magistrate Johnston in Great Falls on March 7, 2016 and entering pleas of Not Guilty were:

• SEIVERT DAYDRILL RUNNINGCRANE, a 34-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury.If convicted of the charge contained in the indictment, RUNNINGCRANE faces 10 years in prison, $250,000 in fines and 3 years supervised release.The case was investigated by the Federal Bureau of Investigation and Blackfeet Law Enforcement Services.PACER Case Reference.  16-17

Appearing before U.S. Magistrate Ostby in Billings on March 7, 2016 and entering pleas of Not Guilty were:

• JOSE ANTONIO GOMEZ-GRANDA, a 37-year-old citizen of Peru, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine.If convicted of the most serious charge contained in the indictment, GOMEZ-GRANDA faces life in prison, $10,000,000 in fines and 5 years supervised release.The case was investigated by the HIDTA.PACER Case Reference.  16-28

• ROBERTA LOUISE HART, a 28-year-old resident of Lame Deer, appeared on charges of assault resulting in serious bodily injury.If convicted of the charge contained in the indictment, HART faces 10 years in prison, $250,000 in fines and 3 years supervised release.The case was investigated by the Bureau of Indian Affairs.PACER Case Reference.  15-130

Appearing before U.S. Magistrate Ostby in Billings on March 4, 2016 and entering pleas of Not Guilty were:

• RENE FLORES, a 38-year-old resident of Tacoma, Washington, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine.If convicted of the most serious charge contained in the indictment, FLORES faces life in prison, $10,000,000 in fines and 5 years supervised release.The case was investigated by the HIDTA.PACER Case Reference.  16-28

Appearing before U.S. Magistrate Ostby in Billings on March 3, 2016 and entering pleas of Not Guilty were:

• JOHN LAWRENCE FELLER, JR., a 34-year-old resident of Lame Deer, appeared on charges of felony child abuse.If convicted of the charge contained in the indictment, FELLER faces 10 years in prison, $50,000 in fines and 3 years supervised release.The case was investigated by the Bureau of Indian Affairs.PACER Case Reference.  16-10

Appearing before U.S. Magistrate Ostby in Billings on March 2, 2016 and entering pleas of Not Guilty were:

• NATHAN MARTIN SHIKE, a 42-year-old resident of Billings, appeared on charges of felon in possession of a firearm.If convicted of the charge contained in the indictment, SHIKE 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.  15-152

Appearing before U.S. Magistrate Ostby in Billings on February 29, 2016 and entering pleas of Not Guilty were:

• CODY ALAN CHURCHILL, a 22-year-old resident of Roundup, appeared on charges of possession of an unregistered firearm.If convicted of the charge contained in the indictment, CHURCHILL 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.  15-119

• JEFFERSON SCOTT PERRIGO, a 42-year-old resident of Laurel, appeared on charges of possession of a stolen firearm.If convicted of the charge contained in the indictment, PERRIGO 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.  15-120

• RUSSELL KAY VANDYKE, a 38-year-old resident of Billings, appeared on charges of felon in possession of a firearm and ammunition.If convicted of the charge contained in the indictment, VANDYKE 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.  16-23

  Appearing before U.S. Magistrate Johnston in Great Falls on February 29, 2016 and entering pleas of Not Guilty were:

• THOMAS JOSEPH WEHNER, a 40-year-old resident of Moyie Springs, Idaho, appeared on charges of distribution of methamphetamine resulting in death, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, felon in possession of firearms, possession of stolen firearms, and transportation of stolen firearms.If convicted of the most serious charges contained in the indictment, WEHNER faces life in prison, $10,000,000 in fines and 6 years supervised release.The case was investigated by the Russell Country Drug Task Force and the Great Falls Police Department.PACER Case Reference.  16-14

• 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 – Former Chief Executive Officers for Plain Green, the Chippewa Cree Tribe’s internet lending business, were both sentenced today to several years in prison by U.S. District Judge Brian Morris in Great Falls.  Neal Paul Rosette, 54, of Box Elder, who served as the lending corporation’s CEO from its origination until January of 2012, was sentenced to 38 months in prison and restitution of $1,488,472.  His colleague, Billi Anne Morsette, was sentenced to 41 months in prison, and $1,421,045 in restitution.

In December of last year, Rosette and Morsette pleaded guilty to accepting bribes from Encores Services, a Las Vegas business, in exchange for facilitating the award and payment on fraudulent tribal contracts.  In another indictment the two pleaded guilty to helping Chippewa Cree Tribal Vice-Chairman John Chance Houle siphon off over $55,000 in tribal monies, laundering them through First American Capital Resources, the predecessor company to Plain Green, and then diverting the money to the Chippewa Cree Rodeo Association accounts which Houle had used as a slush fund.  Included in their pleas was a plea by Rosette to income tax evasion and by Morsette to willful failure to file tax returns.

In court records filed at the time of the plea, the Unites States Attorney’s office advised the Court that in May of 2010, the Chippewa Cree Tribe created First American Capital Resources, LLC (FACR) to be a partner with outside interests to provide a pay-day, on-line lending platform which, using tribal sovereignty, could be exempt from state laws and regulations regarding usury and predatory lending practices.  The FACR CEO was Neal Rosette, the FACR COO was Billi Anne Morsette, and the Chairman of the oversight board created by the tribal council to administer the internet lending program was tribal Vice-Chairman, John Chance Houle.

THE RODEO ASSOCIATION EMBEZZLEMENT:  On September 15, 2010, Houle authorized and signed a $27,949.33 check to FACR from the Chippewa Cree Tribe Tribal Grants and Contracts account.  Once the Grants and Contracts money was in the FACR account, a check for $6,000 was made payable to Rosette (signed by Morsette) and another check for $6,000 was made payable to Morsette (signed by Rosette).  Also on that same date, a check for $15,000 was written to the Chippewa Cree Tribe Rodeo Association and signed by Rosette and Morsette.  Chance Houle was the President of the Chippewa Cree Rodeo Association with exclusive control over its bank account.

The second payment from the Grants and Contracts account to FACR was made on October 5, 2010, for $27,842.94.  On that same date, a FACR check for $4,000 was made payable to Rosette (signed by Morsette) and another check for $4,000 was made payable to Morsette (signed by Rosette).  Also on that same date, a check for $15,000 was written to the Indian National Finals Rodeo (INFR), and signed by Rosette and Morsette.

THE IDEAL CONSULTING KICK-BACK SCHEME: On October 22, 2010, FACR, the Tribe, and Encore Services Corporation, of Henderson, Nevada, entered into a Management Agreement making Encore the tribe’s partner in the on-line lending business.  FACR and Encore did not make any online loans prior to April 2011.  The salaries of Rosette and Morsette were subsidized by Encore and its affiliates, along with James Eastlick, Jr., Clinical Psychologist at the Tribe, through bridge loans.  One specific loan from Eastlick to cover the salaries of Rosette and Morsette was in December 2010 for $60,000, and the note on the loan was between Eastlick and Encore.

In March of 2011, after Rosette had entered into negotiations with Think Finance of Fort Worth, Texas, the Tribe created another online lending company, Plain Green.  Plain Green was created for online installment loan lending and, as with FACR, Plain Green would utilize the Tribe’s sovereignty to shield the business from state usury and predatory lending laws.  Rosette, Morsette, and Houle all remained in the same positions for Plain Green as they had for FACR.  After Rosette’s departure in January 2012, Morsette took over both the CEO and the COO roles for FACR and Plain Green.

After a deal was struck between the Tribe, Plain Green, and Think Finance, Encore was no longer a relevant participant.  On May 4, 2011, and at the request of Encore, a revised management agreement between FACR and Encore was signed.  Under this agreement, Section 2.9 now stated the “Enterprise” shall include FACR “and any other entity formed by the Tribe to undertake business of the type conducted by FACR.”  This is after Plain Green and Think Finance have already started making loans in April.  The amended agreement was designed to provide “exclusive” rights to Encore with regard to all of the Tribe’s online lending ventures, including Plain Green.  Rosette forged Houle’s signature on the revised management agreement.

On July 11, 2015, without any written agreement as to fees, Rosette and/or Morsette wired $38,242 of the Tribe’s share of the Plain Green distribution, to Encore.  In late July 2011, a Fee Agreement was executed providing Encore Services, LLC, a newly formed company owned by the same individuals of Encore Service Corporation, 15% of all profits from the Plain Green – Think Finance venture.  This agreement was backdated to June 1, 2011, one day before Plain Green received its first payment of $199,141.

On August 3, 2011, an entity called Ideal Consulting, LLC, invoiced Encore for “5% consulting fees” for the months of May, June and July 2011.  The total billed was $50,652.40.  That same day, Plain Green wired $93,800.42 to Encore Services.  Ideal Consulting had registered with the Montana Secretary of State’s Office on August 2, 2011.  Eastlick opened a bank account using the articles of incorporation for Ideal Consulting at Wells Fargo Bank in Havre, and on August 5, 2011, an Encore affiliate wired $50,652.40 to the new account.

At its essence, the scheme that began with the second agreement was designed to put Encore back into the tribal stream of revenue from the on-line lending operation once Think had come in to supplant Encore.  In exchange for giving Encore 10% of the tribe’s revenues, Encore agreed to take 15% and kick 5% back to Rosette, Morsette, and Eastlick as a reward for keeping money flowing to Encore, even though it had not been able to establish a viable lending operation.

The relationship with Encore, and the resulting payments to Ideal, continued for the next two years, until July 31, 2013.  In that time, Plain Green paid Encore $3,523,471, and Encore paid Ideal $1,208,395.  The profits from the scheme were split evenly between Rosette, Morsette and Eastlick—each taking over $400,000.

During this period Morsette received over $800,000 in income from her salary and the payments from Ideal.  She never filed a tax return.  As part of her plea agreement she agreed to pay $165,253 in tax liability to the IRS.  Rosette filed for 2009 but did not file any returns after that.  Based upon his unreported income, Rosette agreed to pay $232,680 in tax liability to the IRS.

Rosette was allowed to surrender himself to the institution once the Bureau of Prisons designates where he will serve his sentence.  Morsette was immediately remanded into the custody of the U.S. Marshal.

The case was brought by the federal agents of the Guardians Project and was investigated by the agents of the Offices of Inspector General of the Departments of Interior and Health and Human Services, as well as by the Internal Revenue Service Criminal Investigation Division. 

BILLINGS – William Kristofer Wolf, 53, of Bozeman, Montana, was sentenced today in Billings federal court for the illegal possession of an unregistered machine gun.  U.S. District Court Judge Susan Watters sentenced Wolf to 72 months incarceration and 3 years supervised release.

Wolf was indicted by a grand jury in April of last year on two counts: Illegal Possession of a Machine Gun and Possession of a Firearm not Registered in the National Firearms Registration and Transfer Record.  At trial, the government introduced evidence that Wolf publicly and repeatedly expressed intent to acquire and possess dangerous weapons, including flamethrowers, incendiary ammunition, and napalm, and ultimately did acquire the sawed-off automatic shotgun that lead to his arrest.  Minutes after taking possession of the illegal firearm Wolf stated that he did not “believe in anything but extreme.”  He was convicted in November of last year following a three day jury trial.

In his weekly online radio show, named “The Montana Republic,” Wolf discussed his anti-government views and his plans to overthrow local, state, and federal governments by force.  He advocated the affirmative targeting of law enforcement officers, politicians, and judges and stated on numerous occasions that he considered agents of local, state, and federal government to be his “targets .”  After holding a “committee of safety meeting” on January 29, 2015, Wolf stated, “my preferred method would be to drop 500 pounds of napalm through the roof of the courthouse and burn it to the ground and roast some marshmallows on it.”  Wolf tried to recruit those at the meeting to his cause telling them, “that’s why I say you don’t want me doing this because I don’t believe in doing anything that’s not extreme and right now wiping that place out, would be my extreme movement.” 

In its sentencing arguments, the government emphasized the extreme nature of Wolf’s views, and his repeatedly articulated intent to target law enforcement officials and in effect to wage a war on all branches of government.  Wolf made repeated statements about his intent to target government and law enforcement personnel: “I just need to kill the public officials,” and “all agents of the government, all judiciary, and all police officers are targets.”  Wolf believed that law enforcement officials at every level of government had committed “constitutional violations” and that he was therefore justified in using any means necessary to “restore our constitutional republic.”  Wolf did not retreat from these views in his trial testimony or attempt to deny his ultimate intent to harm government and law enforcement officials.

Emphasizing the extreme nature of Wolf’s views, coupled with the concrete steps he took to put his violent plans into action, the government argued that the criminal sentencing guidelines did not adequately reflect the gravity of his crime and the danger he poses to society.  Taking these factors into account, the government urged the court to impose a sentence greater than that indicated by the guidelines.  The government argued that Wolf’s actions in obtaining the machine gun were merely a step towards committing other offenses, including assault on law enforcement officers and arson.  .

The government also argued that Wolf’s lack of prior criminal history was not indicative of his risk to society, given the extreme nature of his views and his articulated intent to commit mass acts of violence.  As evidence of this intent, the government cited at least 24 instances in which Wolf stated his intent to kill someone or engage in acts that would bring about deaths or serious injuries.

“The sentence in this case sends a strong message to those, like Mr. Wolf, who seek to wage a violent war not only against the government but against society as a whole,” said Montana U.S. Attorney Mike Cotter.  “It should serve as a deterrent to others who would follow his lead and choose to espouse anarchy and violence.  The FBI is to be commended for its thorough work of investigating Mr. Wolf and ultimately helping to bring him to justice.”

The case was prosecuted by Assistant U.S. Attorney Bryan Whittaker and Danya Atiyeh, Trial Attorney, from the Counterterrorism Section, National Security Division, of the United States Department of Justice.  The case was investigated by the FBI.

GREAT FALLS - The United States Attorney’s Office announced that Shad James Huston, 40, of Havre, Montana, was sentenced on February 29, 2016, before U.S. District Judge Brian M. Morris.  Huston was sentenced to 41 months of prison for Bribery, False Claims Act Conspiracy, and failure to file Currency Transaction Reports as required by law.  In addition, the district court ordered Huston to pay $500,000 in restitution.   

The Chippewa Cree Tribe of the Rocky Boy’s Indian Reservation is located in north-central Montana and has a population of 2,500 members.  Between October 2007 and September 2012, the Chippewa Cree Tribe received $420,439,495 in federal funding.  In addition, the Tribe received a $25,000,000 insurance payment after the flooding of 2010, and $8,400,000 under the Cobell v. Salazar settlement in July of 2012.  The total money received by the Tribe, during this five-year time period, was over $450,000,000.

Huston became associated with a local trucking operation, known as K Bar K Trucking.  While operating the company, Huston engaged in a “pay-to-play” scheme, where he was awarded no-bid, sole-source hauling contracts with the Tribe.  In exchange for the contracts, Huston paid Tim Rosette, Director of the Roads Branch, cash kick-backs of $100 to $200 on a per truck, per trip basis.  The financial records confirm this pattern, showing that Huston companies withdrew approximately $238,000 in cash, in close proximity to contract payments.   When questioned by business partners, Huston explained he would falsely inflate invoices in order to pay bribes to Rosette, and others, in exchange for contracts with the Tribe.  Rosette was previously sentenced to prison in December of 2015.   

In addition to submitting false claims and bribing Tim Rosette, Huston also operated various businesses, including Leon’s Buy and Sell in Havre, Montana.  These businesses were registered as Money Service Businesses with the Financial Crimes Enforcement Network (FinCEN), of the U.S. Department of Treasury.  FinCEN’s mission is to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.  

In order for FinCEN to track money laundering and other fraud, Huston, as a money service business, was required to file Currency Transaction Reports (“CTRs”) when cashing checks for others in excess of $10,000.  Huston cashed checks in excess of $10,000 for Hailey Belcourt, who was previously indicted and convicted for fraud, and other individuals implicated in fraud on the Rocky Boy’s Indian Reservation.  All total, Huston cashed 19 checks that should have been reported, but were not.  This failure to report the transactions was done with the deliberate intent to avoid exposing the transactions to FinCEN.   

Huston’s convictions for corruption and failing to file CTRs 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 Huston case was investigated by the Department of Interior Office of Inspector General and the Internal Revenue Service, Criminal 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 February 25, 2016 and entering pleas of Not Guilty were:

• STEPHEN JOSEPH MARTIN, a 75-year-old resident of Phoenix, Arizona, appeared on charges of failure to register as a sex offender.  If convicted of the charge contained in the indictment, MARTIN 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.  16-04

Appearing before U.S. Magistrate Ostby in Billings on February 24, 2016 and entering pleas of Not Guilty were:

• JUAN CARLOS DORADO, a 40-year-old resident of Tucson, Arizona, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and conspiracy to commit money laundering.  If convicted of the most serious charge contained in the indictment, DORADO faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Montana Division of Criminal Investigation, Drug Enforcement Administration, Federal Bureau of Investigation, Homeland Security Investigations and HIDTA.  PACER Case Reference.  16-05

• JUAN RAMON DELGADILLO-MEZA, a 40-year-old resident of Ephrata, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, conspiracy to commit money laundering, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charges contained in the indictment, DELGADILLO-MEZA 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.  16-12

• OTIS TAYLOR YELLOW MULE, a 29-year-old resident of Wyola, appeared on charges of escape.  If convicted of the charge contained in the indictment, YELLOW MULE 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.  16-24

Appearing before U.S. Magistrate Johnston in Great Falls on February 24, 2016 and entering pleas of Not Guilty were:

• DAVID LEE ARMITAGE, a 27-year-old resident of Great Falls, appeared on charges of possession of a firearm not registered in National Firearms Registration and Transfer Record.  If convicted of the charge contained in the indictment, ARMITAGE 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.  15-85

• LINDA D. TAYLOR, a 61-year-old resident of Great Falls, appeared on charges of desertion of mails and delay or destruction of mail.  If convicted of the charge contained in the indictment, TAYLOR faces 1 year in prison and $100,000 in fines.  The case was investigated by the United States Postal Service Office of Inspector General.  PACER Case Reference.  16-05

Appearing before U.S. Magistrate Ostby in Billings on February 23, 2016 and entering pleas of Not Guilty were:

• OMAR COTA, a 21-year-old resident of Mexico, 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, COTA faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Homeland Security Investigations and HIDTA.  PACER Case Reference.  16-04

• TOMAS COTA, a 21-year-old resident of Mexico, 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, COTA faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Homeland Security Investigations and HIDTA.  PACER Case Reference.  16-04

• BETHANY ANN FAIRCHILD, a 29-year-old resident of Pasco, Washington, 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, FAIRCHILD 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.  16-12

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.

 

WASHINGTON – The Department of Justice announced today that it has reached settlements with 51 hospitals in 15 states for more than $23 million related to cardiac devices that were implanted in Medicare patients in violation of Medicare coverage requirements.  Saint Vincent Healthcare in Billings is one of the hospitals included in the settlements.  St. Vincent is part of the Sisters of Charity of Leavenworth Health System, based in Broomfield, CO, and is one of five Sisters of Charity hospitals that together paid 1.95 million under the settlements.   

An implantable cardioverter defibrillator, or ICD, is an electronic device that is implanted near and connected to the heart.  It detects and life-threatening heart rhythms, called fibrillations, by delivering a shock to the heart, restoring the heart’s normal rhythm.  Only patients with certain clinical characteristics and risk factors qualify for an ICD covered by Medicare.

Medicare coverage for the device, which costs approximately $25,000, is governed by a National Coverage Determination (NCD).  The Centers for Medicare and Medicaid Services implemented the NCD based on clinical trials and the guidance and testimony of cardiologists and other health care providers, professional cardiology societies, cardiac device manufacturers and patient advocates.  The NCD provides that ICDs generally should not be implanted in patients who have recently suffered a heart attack or recently had heart bypass surgery or angioplasty.  The medical purpose of a waiting period - 40 days for a heart attack and 90 days for bypass/angioplasty - is to give the heart an opportunity to improve function on its own to the point that an ICD may not be necessary.  The NCD expressly prohibits implantation of ICDs during these waiting periods, with certain exceptions.  The Department of Justice alleged that from 2003 to 2010, each of the settling hospitals implanted ICDs during the periods prohibited by the NCD. 

The settlements announced today follow similar agreements announced in October of 2015 in which the Department settled with 457 hospitals for more than $250 million.  The settlements announced today represent the final stage of a nationwide investigation into the practices of hundreds of hospitals improperly billing Medicare for these devices.  The case underlying the settlements was brought as a qui tam, or whistleblower, lawsuit under the False Claims Act.  The investigation was part of the government’s Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which is a collaborative effort between DOJ and the Department of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  Since January 2009, the Justice Department has recovered a total of more than $27.4 billion through False Claims Act cases, with more than $17.4 billion of that amount recovered in cases involving fraud against federal health care programs.  With these additional agreements, the Justice Department’s investigation has now yielded settlements with more than 500 hospitals totaling more than $280 million.

The settlements were the result of a coordinated effort among the DOJ’s Civil Division Commercial Litigation Branch, the U.S. Attorney’s Office of the Southern District of Florida and HHS-OIG’s Office of Investigations and Office of Counsel to the Inspector General.  More information on the settlements announced today can be found at the DOJ’s Office of Public Affairs Website.

The claims resolved by these settlements are allegations only and there has been no determination of liability.

This lawsuit is captioned U.S. ex rel. Ford et al. v. Abbott Northwestern et al. No. 08-cv-20071 (S.D. Fla.)

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 February 12, 2016 and entering pleas of Not Guilty were:

• SALVADOR ANDAYA CURIEL, a 28-year-old resident of California, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.  If convicted of the most serious charge contained in the indictment, CURIEL faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations.  PACER Case Reference.  15-01

Appearing before U.S. Magistrate Lynch in Missoula on February 11, 2016 and entering pleas of Not Guilty were:

• RICHARD CHARLES SAARI, a 32-year-old resident of East Helena, appeared on charges of sexual exploitation of children, and receipt of child pornography.  If convicted of the most serious charge contained in the indictment, SAARI faces 30 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Federal Bureau of Investigation, Internet Crimes Against Children Task Force, Helena Police Department, Lewis and Clark County Sheriff’s Office, East Helena Police Department, Homeland Security Investigations and Montana Division of Criminal Investigation.  PACER Case Reference.  16-01

Appearing before U.S. Magistrate Johnston in Great Falls on February 10, 2016 and entering pleas of Not Guilty were:

• JEROME DALE FOLLET, SR., a 26-year-old resident of Poplar, appeared on charges of felony child abuse.  If convicted of the charge contained in the indictment, FOLLET faces 10 years in prison, $50,000 in fines and 3 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.  16-12

• RAMON TROY WHITE BEAR, a 22-year-old resident of Poplar, appeared on charges of assault resulting in serious bodily injury.  If convicted of the charge contained in the indictment, WHITE BEAR faces 10 years in prison, $250,000 in fines and 3 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.  16-08

Appearing before U.S. Magistrate Johnston in Great Falls on February 9, 2016 and entering pleas of Not Guilty were:

• PAUL OLDCHIEF, a 36-year-old resident of Browning, 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, OLDCHIEF 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.  16-11

• DEREK JAMES RIGHT HAND, an 18-year-old resident of Browning, appeared on charges of aggravated sexual abuse.  If convicted of the charge contained in the indictment, RIGHT HAND 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.  16-13

Appearing before U.S. Magistrate Ostby in Billings on February 9, 2016 and entering pleas of Not Guilty were:

• GENE ANDREW TUFTON, a 44-year-old resident of Dagmar, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and conspiracy to commit money laundering.  If convicted of the most serious charges contained in the indictment, TUFTON faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation and the HIDTA .  PACER Case Reference.  16-05

Appearing before U.S. Magistrate Ostby in Billings on February 5, 2016 and entering pleas of Not Guilty were:

• EDWARD LEE DONNES, a 53-year-old resident of Belgrade, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine.  If convicted of the most serious charges contained in the indictment, DONNES 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.  16-12

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.

 

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 Ostby in Billings on February 1, 2016 and entering pleas of Not Guilty were:

• JOSEPH CURTIS MORRISON, JR., a 53-year-old resident of Ashland, appeared on charges of involuntary manslaughter.If convicted of the charge contained in the indictment, MORRISON faces 8 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.  16-06

Appearing before U.S. Magistrate Ostby in Billings on January 28, 2016 and entering pleas of Not Guilty were:

• GARRETT JAY COSTA, SR., a 44-year-old resident of Crow Agency, appeared on charges of aggravated sexual abuse.If convicted of the charge contained in the indictment, COSTA faces life in prison, $250,000 in fines and lifetime supervised release.The case was investigated by the Bureau of Indian Affairs.PACER Case Reference.  16-03

  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 – Deputy Cascade County Attorney Jennifer Quick was honored today for her work on the Cascade County Veterans Court.  Quick was presented with a certificate of appreciation from the United States Attorney’s Office for the District of Montana at the February 2nd Veterans Court graduation by Assistant U.S. Attorneys Jeff Starnes and Joe Cik, acting on behalf of Montana U.S. Attorney Mike Cotter.

The Cascade County Veterans Court was established in 2013.  In March of 2015, because of a collaborative agreement between Montana’s Eighth Judicial District Court, the Montana Federal District Court, and the U.S. Attorney’s Office, the Veterans Court began accepting qualifying veterans charged with federal crimes.  The Veterans Court serves as an alternative to prison for qualifying veterans.  Participants are required to engage in intensive multi-stage professional counseling and treatment for substance abuse, mental health, disability, and other issues including but not limited to those related to their military service.  They are also required to abide by strict conditions, follow rigorous treatment plans, and attend scheduled hearings before a judge.

Quick served as the founding prosecutor of the Cascade County Veterans Court from 2013 to 2015.  “Jennifer is personally and professionally passionate about veterans’ issues,” said Judge Greg Pinski of the Eighth Judicial District, who oversees the Veterans Court.  “She went above and beyond by engaging in outreach efforts to expand enrollment and educate other Montana prosecutors on the benefits of the Veterans Court.  Without her support and hard work, the Cascade County Veterans Court would not exist.”

“Jennifer Quick and Judge Pinski are to be commended for their instrumental roles as catalysts for the Cascade County Veteran’s Court, and we look forward to a continuing state and federal collaboration,” said Montana U.S. Attorney Mike Cotter.  “The U.S. Attorney’s Office is grateful for the opportunity to participate in the forum they have created to give veterans charged with federal crimes an opportunity to obtain structured treatment that will allow them to return to their lives, families, and communities in Montana.”

Quick’s recognition followed a graduation ceremony honoring three new Veterans Court graduates.  Since its inception in 2013, twenty-four veterans have participated in the Cascade County Veterans Court.  Today’s graduates bring the number of program graduates to eleven.  Twelve participants, including one federal probationer, are currently enrolled in the 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 Lynch in Missoula, on January 15, 2016 and entering pleas of Not Guilty were:

• JAMES ANTHONY LOVENGUTH, a 38-year-old resident of Havre, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, illegal receipt of a firearm by a person under Information, and possession of a firearm by a prohibited person.  If convicted of the most serious charges contained in the indictment, LOVENGUTH faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  16-01

• TANDA AURORA TROUT, a 36-year-old resident of Havre, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, LOVENGUTH faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  16-01

Appearing before U.S. Magistrate Johnston in Great Falls, on January 13, 2016 and entering pleas of Not Guilty were:

• HARLAN JEROME DEAN MAD PLUME, a 19-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury.  If convicted of the charge contained in the indictment, MAD PLUME faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  16-03

Appearing before U.S. Magistrate Lynch in Missoula, on January 13, 2016 and entering pleas of Not Guilty were:

• OCTAVIO GUADALOPE GARCIA-MORALES, a 29-year-old resident of Mexico, appeared on charges of conspiracy to distribute controlled substances, possession with intent to distribute methamphetamine, and distribution of heroin.  If convicted of the most serious charges contained in the indictment, GARCIA-MORALES faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Northwest Montana Drug Task Force.  PACER Case Reference.  16-05

Appearing before U.S. Magistrate Lynch in Missoula on January 12, 2016 and entering pleas of Not Guilty were:

• GEORGE LESLIE MANLOVE, a 58-year-old resident of Eagle, Idaho, appeared on charges of conspiracy, wire fraud, bank fraud, false statement to federal insured bank, bankruptcy fraud, and money laundering.  If convicted of the most serious charges contained in the indictment, MANLOVE faces 30 years in prison, $1,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation, U.S. Department of Labor and the Internal Revenue Service.  PACER Case Reference.  16-40

• PAUL LYN NISBET, a 46-year-old resident of Missoula, appeared on charges of conspiracy to commit wire fraud.  If convicted of the most serious charge contained in the indictment, NISBET faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Federal Bureau of Investigation, U.S. Department of Labor and the Internal Revenue Service.  PACER Case Reference.  15-43

Appearing before U.S. Magistrate Ostby in Billings, on January 12, 2016 and entering pleas of Not Guilty were:

• CHARITY LEIGH MENDONSA, a 39-year-old resident of Cathedral City, California, 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, MENDONSA faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Montana Division of Criminal Investigation and the Drug Enforcement Administration.  PACER Case Reference.  15-147

• JOSEPH EMMANUEL SOBECK, a 43-year-old resident of Ashland, appeared on charges of possession of a firearm not registered in National Firearms Registration and Transfer Record, and felon in possession of a firearm.  If convicted of the most serious charges contained in the indictment, SOBECK faces 10 years in prison, $10,000,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  15-153

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

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 January 7, 2016 and entering pleas of Not Guilty were:

• JAMES ANTHONY WESTERMAN, a 46-year-old resident of Helena, appeared on charges of failure to register as a sexual offender.  If convicted of the most serious charge contained in the indictment, WESTERMAN faces 10 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the United States Marshals Service, Lewis and Clark County Sheriff’s Office and Montana Highway Patrol.  PACER Case Reference.  15-14

Appearing before U.S. Magistrate Johnston in Great Falls, on January 5, 2016 and entering pleas of Not Guilty were:

• BRANDON JOE ELKINS, a 31-year-old resident of Tulsa, Oklahoma, appeared on charges of receipt of child pornography, possession with intent to distribute methadone, and distribution of methadone to individual under 21 years old.  If convicted of the most serious charges contained in the indictment, ELKINS faces 40 years in prison, $2,000,000 in fines and lifetime supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  15-79

• SANDY MEREDITH HAYES, a 52-year-old resident of Sand Coulee, appeared on charges of felon in possession of a firearm.  If convicted of the most serious charge contained in the indictment, HAYES faces 10 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department and Montana Probation and Parole.  PACER Case Reference.  15-34

Appearing before U.S. Magistrate Ostby in Billings, on January 5, 2016 and entering pleas of Not Guilty were:

• TESSIE KAY HAMILTON, a 36-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, HAMILTON 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.  15-143

• GARY LEE QUIGG, a 67-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute and distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine..  If convicted of the most serious charges contained in the indictment, QUIGG faces life in prison, $10,000,000 in fines and 4 years supervised release.  The case was investigated by the Montana Division of Criminal Investigation.  PACER Case Reference.  15-147

• EARL SAMUEL WALTERS, a 56-year-old resident of Beach, North Dakota, appeared on charges of felon in possession of a firearm and conspiracy to possess controlled substances with intent to distribute.  If convicted of the most serious charge contained in the indictment, WALTERS faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  15-91

Appearing before U.S. Magistrate Lynch in Missoula, on January 4, 2016 and entering pleas of Not Guilty were:

• SAMUEL R. FRISCIA, a 25-year-old resident of Polson, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, FRISCIA 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.  15-28

• RAINY LEE LAMERE, a 30-year-old resident of Great Falls, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, LAMERE 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 Missoula Police Department.  PACER Case Reference.  15-29

• SHACOTTA ST. ONGE, a 22-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, ST. ONGE faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation and the Montana Regional Violent Crime Task Force.  PACER Case Reference.  15-36

• WADE PATRICK WRIGHT, a 48-year-old resident of Columbia Falls, appeared on charges of possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime and possession of a firearm not registered in the National Firearms Registration and Transfer Record.  If convicted of the most serious charges contained in the indictment, WRIGHT faces life in prison, $1,000,000 in fines and 5 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Flathead County Sheriff’s Office.  PACER Case Reference.  15-25

Appearing before U.S. Magistrate Ostby in Billings, on December 29, 2015 and entering pleas of Not Guilty were:

• DALE VERNAL CAMPBELL, a 42-year-old resident of Lame Deer, appeared on charges of failure to register as a sexual offender.  If convicted of the most serious charge contained in the indictment, CAMPBELL 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.  15-85

Appearing before U.S. Magistrate Ostby in Billings, on December 28, 2015 and entering pleas of Not Guilty were:

• FRANK WAYNE REINKE, a 49-year-old resident of Billings, appeared on charges of felon in possession of a firearm and possession of stolen firearms.  If convicted of the most serious charges contained in the indictment, REINKE faces 15 years in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  15-31

Appearing before U.S. Magistrate Lynch in Missoula, on December 28, 2015 and entering pleas of Not Guilty were:

• KATRINA LYNN EVERHART, a 47-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, EVERHART faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Montana Regional Violent Crime Task Force.  PACER Case Reference.  15-42

• LOGAN RIVERS WENIGER, a 34-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, manufacturing methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, possession of a machine gun in furtherance of a drug trafficking crime, and felon in possession of firearms.  If convicted of the most serious charge contained in the indictment, WENIGER faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Montana Regional Violent Crime Task Force.  PACER Case Reference.  15-42

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 for the District of Montana announces today the conclusion of an international operation that convicted twenty-one defendants of child pornography related crimes.  These defendants were involved in the sexual exploitation of children via two international online bulletin boards where members advertised, distributed, viewed and received images depicting child pornography.

Operation Kingdom Conqueror was initiated in 2011.  FBI agents and officers from the Internet Crimes Against Children Task Force (ICACTF) received a tip regarding a potential child pornography suspect.  In early 2012, the FBI obtained a search warrant for the residence of Paul Wencewicz in Polson, Montana.  During their search, the agents discovered that Wencewicz was operating an online bulletin board where members advertised and traded sexually explicit images of young girls.  The bulletin board was named Kingdom of Future Dreams (KOFD), and was created by Wencewicz in 2009.  Between November 2009 and March 2012, Wencewicz and other members of the bulletin board sexually exploited hundreds of girls, both domestically and internationally, by trading images and videos of them.

Through their investigation, agents discovered that the KOFD bulletin board was housed on a server in the Isle of Jersey, one of the Channel Islands of the United Kingdom.  Through cooperation with local police, state and federal agents were able to track down members of the bulletin board who resided in the United States and to obtain search warrants for their residences.  Searches were conducted by federal officers in New Jersey, Maryland, Missouri, Indiana, Virginia, Washington, Massachusetts, Kentucky, Arizona, Texas, and California.  The KOFD conspiracy identified thirteen defendants in the United States in addition to Wencewicz of Polson.  Through their investigation of the KOFD defendants, agents learned that eight of the fourteen defendants were also members of a second child exploitation bulletin board called the Dark Moon, which involved a highly complex encryption scheme.  Agents gained access to the board in April of 2013 and were able to identify additional members.

As a result of this investigation and prosecution, the following individuals have been convicted of Conspiracy to Advertise Child Pornography and sentenced as follows:

• Paul Wencewicz, age 49, Polson, Montana

            Sentence – 220 months BOP, Lifetime Supervised Release, $29,859 restitution

 

• Scott Long, age 55, Portland, Oregon

            Sentence – 200 months BOP, Lifetime Supervised Release, $29,859 restitution

          

• Steve Humiston, age 58, Tacoma, Washington

Sentence – 210 months BOP, Lifetime Supervised Release, $5,000 fine, $29,859 restitution

 

• Phillip Morris, age 43, Jeffersonville, Indiana

            Sentence – 216 months BOP, Lifetime Supervised Release, $29,859 restitution

 

• Tony Bronson, age 55, Gary Indiana

            Sentence – 224 months BOP, 10 years Supervised Release, $29,859 restitution

 

• Jeffrey Woolley, age 55, Nicholasville, Kentucky

            Sentence – 180 months BOP, Lifetime Supervised Release, $29,859 restitution

 

• Charles Crosby, age 45, Trenton, New Jersey

            Sentence – 210 months BOP, Lifetime Supervised Release, $29,859 restitution

 

• John Johnson, age 59, Locust Grove, Virginia

            Sentence – 180 months BOP, Lifetime Supervised Release, $29,859 restitution

 

• Joseph Purificato, age 25, Mount Vernon, Missouri

            Sentence – 180 months BOP, 10 years Supervised Release, $29,859 restitution

 

• Ian Nosek, age 44, Charlottesville, Virginia

            Sentence – 216 months BOP, Lifetime Supervised Release, $29,859 restitution

 

• Robert Krise, age 67, Gaithersburg, Maryland

            Sentence – 180 months BOP, Lifetime Supervised Release, $29,859 restitution

 

• John Merchberger, III, age 48, Dayton, Maine

            Sentence – 220 months BOP, Lifetime Supervised Release, $5,000 fine

 

• Daniel Brown, age 27, Taylors, South Carolina

            Sentence – 180 months BOP, Lifetime Supervised Release

 

• Marc Edoria age 24, Sacramento, California

            Sentence – 180 months BOP, 10 years Supervised Release

 

• Tony Gustafson age 49, Hastings, Nebraska

            Sentence – 200 months BOP, Lifetime Supervised Release

 

• Ryan Hatfield age 26, Mount Washington, Kentucky

            Sentence – 180 months BOP, 10 years Supervised Release

 

• David Woods age 37, Corfu, New York

            Sentence – 180 months BOP, 15 years Supervised Release

 

• Shawnston Beaudoin age 31, Kennesaw, Georgia

            Sentence – 210 months BOP, Lifetime Supervised Release

 

The following defendants were convicted at trial of participating in a Child Exploitation Enterprise and Conspiracy to Advertise Child Pornography and were sentenced as follows:

 

• Joshua Petersen, age 45, Prescott, Arizona

            Sentence – 220 months BOP, Lifetime Supervised Release, $29,859 restitution

 

• Steven Grovo, age 35, Shirley, Massachusetts

            Sentence – 220 months BOP, Lifetime Supervised Release, $29,859 restitution

 

• Defendant Richard Pitts, age 28, from Cathedral City, California pled guilty to Conspiracy to Distribute Child Pornography and was sentenced to 84 months in the Bureau of Prisons and 15 years of supervised release.

The final defendant sentenced today as part of the operation in Missoula is Shawnston Beaudoin, 31, of Kennesaw, Georgia.  Beaudoin pleaded guilty to the conspiracy charge on September 30, 2015.  If called upon to prove its case at trial, the United States was prepared to demonstrate that Beaudoin became an active member of Dark Moon in October of 2012.  He remained an advanced member of the board until April of 2013.  During that time he posted to the advanced member section of the board.  His posts included URL hyperlinks and preview images of child pornography.  He also requested child pornography from other members, and responded to and commented on other members’ postings.  Chief U.S. District Court Judge Dana Christensen presided over the sentencing.

 

“The predators on these illicit websites glorified the sexual assault of little girls and encouraged each other to share images of this terrible abuse," said Assistant Attorney General Caldwell. "For the victim children, this trauma lasts the rest of their lives.  Thanks to the great partnership among federal, state and local law enforcement, these criminals will be punished for their vile crimes and prevented from harming other children."

“This collaboration of federal and state law enforcement agencies demonstrates the power of the ICACTF and the concerted strength we can bring to bear against these types of child predators when we combine forces,” said Michael Cotter, U.S. Attorney for the District of Montana.  “These operations succeeded in bringing to justice a group of dangerous and sadistic individuals, some of whom had committed prior sex offenses against children.  As a result of the operations, one threat against Montana’s children—and children everywhere—has been dismantled.  We will continue this successful collaboration and our efforts to protect our children and our communities into the future.”

Other federal agency Task Force partners expressed a similar commitment.  “The FBI is dedicated to protecting the most innocent amongst us,” said Eric Barnhart, Special Agent in Charge.  “We will continue to work with our law enforcement partners at home and abroad to identify, locate, and arrest individuals who prey on children and then attempt to hide their illegal activities behind a veil of technology.”

“Our special agents with Homeland Security Investigations have investigated child sexual exploitation cases for many years,” added David A. Thompson, special agent in charge of HSI Denver, which oversees Montana.  “However, in collaborated efforts with other law enforcement agencies like this investigation we sometimes uncover networks and are ultimately able to apprehend many predators in our communities, and rescue many traumatized child victims.  We appreciate the opportunity to continue such investigations to protect the most innocent and vulnerable members of our society.”

State law enforcement agencies were similarly committed to the successful conclusion of the operations.  “Bringing closure to this massive investigation sends a message to the cyber child pornography criminals,” said Bryan Lockerby of the Montana Division of Criminal Investigation.  “There is no place to hide and no place where we can’t get you.”

Prosecutors for the United States are Assistant U.S. Attorney Cyndee L. Peterson along with Maureen C. Cain with the U.S. Department of Justice, Child Exploitation & Obscenity Section.  The investigation is a cooperative effort between the Federal Bureau of Investigation, United States Department of Justice - Child Exploitation and Obscenity Section, Montana Department of Criminal Investigations, the Helena Police Department, Homeland Security Investigations, and the Montana Internet Crimes Against Children Task Force.

The Judgments in this case are the product of diligent work by the very dedicated and skilled professionals who were involved in Operation Kingdom Conqueror and Operation Moon Runner.  Protection of the public is one of our primary missions in these cases.  Children within the United States as well as around the world are safer because these boards have been taken down.  As long as children continue to be sexually exploited through the use of the Internet and these bulletin boards, this office will remain committed to that mission,” concluded United States Attorney Cotter.

An international operation that led to the conviction of 21 defendants for child pornography-related crimes concluded today in the District of Montana.  These defendants were involved in the sexual exploitation of children via two international online bulletin boards where members advertised, distributed, viewed and received images depicting child sexual exploitation. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Michael W. Cotter of the District of Montana, Special Agent in Charge Eric Barnhart of the FBI’s Salt Lake City Division, Special Agent in Charge David A. Thompson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Denver Field Office and Division Administrator Bryan Lockerby of the Montana Division of Criminal Investigation made the announcement.

Operation Kingdom Conqueror began in 2011 when FBI agents and officers from the Internet Crimes Against Children Task Force (ICACTF) received a tip that ultimately led to the discovery of Kingdom of Future Dreams (KOFD), an online bulletin board operated by Paul Wencewicz, 49, of Polson, Montana, that members used to advertise and trade sexually explicit images of young girls.  Between November 2009 and March 2012, Wencewicz and other members of the bulletin board sexually exploited hundreds of girls, both domestically and internationally, by trading images and videos of them.

The KOFD bulletin board was housed on a server in the Isle of Jersey.  Through cooperation with local police and British authorities, the United States obtained the boards’ data, allowing U.S. federal agents to identify 13 defendants in the United States in addition to Wencewicz and conduct searches in New Jersey, Maryland, Missouri, Indiana, Virginia, Washington, Massachusetts, Kentucky, Arizona, Texas and California.  This investigation revealed that eight of the 14 KOFD defendants were also members of a second child exploitation bulletin board called the Dark Moon, which involved a highly complex encryption scheme.  After gaining access to the board in April 2013, agents identified additional members. 

Today, the final defendant, Shawnston Beaudoin, 31, of Kennesaw, Georgia, was sentenced to 210 months in prison and lifetime supervised release.  Beaudoin pleaded guilty to conspiracy to advertise child pornography on Sept. 30, 2015.  In connection with his plea, Beaudoin admitted that he became an active member of Dark Moon in October 2012 and remained an advanced member of the board until April 2013.  During that time, he posted hyperlinks and preview images of child exploitation to the advanced member section of the board.  Beaudoin also requested child pornography from other members and responded to and commented on other members’ postings.  Chief U.S. District Court Judge Dana Christensen of the District of Montana presided over the sentencing.

In addition to Beaudoin, the following individuals have been convicted of conspiracy to advertise child pornography and sentenced as follows:

• Paul Wencewicz, 49, of Polson, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
• Scott Long, 55, of Portland, Oregon, was sentenced to 200 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;  
• Steve Humiston, 58, of Tacoma, Washington, was sentenced to 210 months in prison and lifetime supervised release and was ordered to pay a $5,000 fine and $29,859 in restitution;
• Phillip Morris, 43, of Jeffersonville, Indiana, was sentenced to 216 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
• Tony Bronson, 55, of Gary, Indiana, was sentenced to 224 months in prison and 10 years supervised release and was ordered to pay $29,859 in restitution;
• Jeffrey Woolley, 55, of Nicholasville, Kentucky, was sentenced to 180 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
• Charles Crosby, 45, of Trenton, New Jersey, was sentenced to 210 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
• John Johnson, 59, of Locust Grove, Virginia, was sentenced to 180 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
• Joseph Purificato, 25, of Mount Vernon, Missouri, was sentenced to 180 months in prison and 10 years supervised release and was ordered to pay $29,859 in restitution;
• Ian Nosek, 44, of Charlottesville, Virginia, was sentenced to 216 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
• Robert Krise, 67, of Gaithersburg, Maryland, was sentenced to 180 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
• John Merchberger III, 48, of Dayton, Maine, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay a $5,000 fine;
• Daniel Brown, 27, of Taylors, South Carolina, was sentenced to 180 months in prison and lifetime supervised release;
• Marc Edoria, 24, of Sacramento, California, was sentenced to 180 months in prison and 10 years supervised release;
• Tony Gustafson, 49, of Hastings, Nebraska, was sentenced to 200 months in prison and lifetime supervised release;
• Ryan Hatfield, 26, of Mount Washington, Kentucky, was sentenced to 180 months in prison and 10 years supervised release; and
• David Woods, 37, of Corfu, New York, was sentenced to 180 months in prison and 15 years supervised release.

The following defendants were convicted at trial of participating in a child exploitation enterprise and conspiracy to advertise child pornography and were sentenced as follows:

• Joshua Petersen, 45, of Prescott, Arizona, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay $29,859 restitution; and
• Steven Grovo, 35, of Shirley, Massachusetts, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution.

Richard Pitts, 28, of Cathedral City, California, pleaded guilty to conspiracy to distribute child pornography and was sentenced to 84 months in prison and 15 years of supervised release.

“The predators on these illicit websites glorified the sexual assault of little girls and encouraged each other to share images of this terrible abuse,” said Assistant Attorney General Caldwell.  “For the victim children, this trauma lasts the rest of their lives.  Thanks to the great partnership among federal, state and local law enforcement, these criminals will be punished for their vile crimes and prevented from harming other children.”

“This collaboration of federal and state law enforcement agencies demonstrates the power of the ICACTF and the concerted strength we can bring to bear against these types of child predators when we combine forces,” said U.S. Attorney Cotter.  “These operations succeeded in bringing to justice a group of dangerous and sadistic individuals, some of whom had committed prior sex offenses against children.  As a result of the operations, one threat against Montana’s children—and children everywhere—has been dismantled.  We will continue this successful collaboration and our efforts to protect our children and our communities into the future.”

The FBI, ICE-HSI, the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the Montana Department of Criminal Investigations, the Helena, Montana, Police Department and Montana ICACTF investigated the case.  CEOS Trial Attorney Maureen C. Cain and Assistant U.S. Attorney Cyndee L. Peterson of the District of Montana prosecuted the case.  The Criminal Division’s Office of International Affairs also provided assistance.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

GREAT FALLS – The United States Attorney’s Office today announced that James Antonio Amato, 50, a Great Falls roofer, was sentenced to 88 months in federal prison followed by 4 years of supervised release by U.S. District Judge Brian Morris. Amato entered a guilty plea in September of 2015 to possession with intent to distribute methamphetamine.  Amato faced a maximum sentence of  40 years in prison.

Assistant United States Attorney Jessica Betley told the court that in February 2015 the Russell Country Drug Task Force began to purchase methamphetamine from a local woman. Law enforcement later learned that James Amato had provided the woman with methamphetamine for redistribution in the Great Falls area.  Over the next few months, the task force completed numerous undercover purchases of methamphetamine and determined that on each occasion Amato was the woman’s source for methamphetamine. On several occasions, while the woman was under surveillance, law enforcement observed her meet the defendant and obtain methamphetamine which the agents had arranged to purchase.  Investigators also determined that Amato traveled to Helena, to meet his source, when he needed to replenish his supply of the drug.

On April 11, 2015, law enforcement stopped the defendant as he traveled back to Great Falls from Helena. Amato was searched and officers removed one-fourth of a pound of methamphetamine from his pants.  The defendant told law enforcement that he frequently picked up methamphetamine in Helena in order to transport it back to Great Falls. Officers also found seven checks in the defendant’s truck made out from the defendant to the defendant’s supplier of methamphetamine in Helena for a total of $10,562.96.

Parole does not exist in the federal system so Amato will serve all of the 7 year sentence, except for a small reduction if he maintains good behavior while incarcerated.  The investigation was conducted by the Russell Country Drug Task Force.

MISSOULA – Stephon Elijah Coakley, 20, of Coeur d’Alene, Idaho, was sentenced today in Missoula federal court for conspiracy to possess with intent to distribute methamphetamine.  Coakley was indicted on two drug related charges on March 20, 2015.  On September 23, 2015, Coakley pleaded guilty to count I: conspiracy to possess with the intent to distribute controlled substances.  Chief U.S. District Court Judge Dana Christensen sentenced Coakley to 60 months’ incarceration.  Following his release, Coakley will be subject to four years of supervised release.

In an offer of proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have demonstrated that between February and November of 2014, Coakley supplied meth to co-conspirator Yusuf Reeves and conspired with Reeves and two other co-conspirators to bring methamphetamine into Missoula County for distribution.  During that time, the co-conspirators possessed and distributed 50 grams or more of a substance containing a detectable amount of methamphetamine.

This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation, Montana Violent Crime Task Force, Missoula Street Crimes Unit, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

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 24, 2015 and entering pleas of Not Guilty were:

• SIOUX SUMMER NECKLACE, a 25-year-old resident of Poplar, appeared on charges of assault resulting in serious bodily injury.  If convicted of the charge contained in the indictment, NECKLACE 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.  15-88

• EVERETT TODD WHITE, a 47-year-old resident of Poplar, appeared on charges of conspiracy to possess with intent to distribute marijuana; possession with intent to distribute marijuana within 1,000 feet of a school, and distribution of marijuana.  If convicted of the most serious charges contained in the indictment, WHITE faces 10 years in prison, $500,000 in fines and 4 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  15-89

Appearing before U.S. Magistrate Ostby in Billings, on December 23, 2015 and entering pleas of Not Guilty were:

• SARA MARIE CLARK, a 38-year-old resident of Laurel, appeared on charges of bank embezzlement.  If convicted of the charge contained in the indictment, CLARK faces 30 years in prison, $1,000,000 in fines and 5 years supervised release.  The case was investigated by the U.S. Secret Service.  PACER Case Reference.  15-141

• MATTHEW LEE DUSTIN, a 35-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 charges contained in the indictment, DUSTIN 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.  15-55

• ARTHUR CHARLES KESTNER, a 36-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 charges contained in the indictment, KESTNER faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.  The case was investigated by the FBI Drug Task Force and the Drug Enforcement Administration.  PACER Case Reference.  15-144

Appearing before U.S. Magistrate Lynch in Missoula, on December 22, 2015 and entering pleas of Not Guilty were:

• COURTNEY A. COLLIER, a 33-year-old resident of Renton, Washington, appeared on charges of conspiracy to possess with intent to distribute oxycodone, possession with intent to distribute oxycodone, conspiracy to acquire or obtain possession of a controlled substance by deception and acquiring or obtaining possession of a controlled substance by deception.  If convicted of the most serious charges contained in the indictment, COLLIER faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-21

• RYAN DAVID HIPPENSTIEL, a 36-year-old resident of Hayden Lake, Idaho, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.  If convicted of the most serious charges contained in the indictment, HIPPENSTIEL faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation and the Montana Regional Violent Crime Task Force.  PACER Case Reference.  15-36

Appearing before U.S. Magistrate Ostby in Billings, on December 18, 2015 and entering pleas of Not Guilty were:

• JON LEE FIGHTER, a 30-year-old resident of Pryor, appeared on charges of assault resulting in serious bodily injury and felony child abuse and neglect.  If convicted of the most serious charges contained in the indictment, FIGHTER faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  15-75

• KODY GORDON WINFREY, a 42-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 charges contained in the indictment, WINFREY 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.  15-104

• MICHAEL SHAWN YATES, a 41-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 charges contained in the indictment, YATES faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.  The case was investigated by the FBI Drug Task Force.  PACER Case Reference.  15-65

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.

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 Ostby in Billings, on December 17, 2015 and entering pleas of Not Guilty were:

• CHERYL LAVONN HILARIO, a 65-year-old resident of Billings, 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 charges contained in the indictment, HILARIO 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.  15-138

Appearing before U.S. Magistrate Johnston in Great Falls, on December 15, 2015 and entering pleas of Not Guilty were:

• PAIGE LARANN DEMARCE, a 26-year-old resident of Fort Kipp, appeared on charges of bank employee fraud and aggravated identity theft.  If convicted of the most serious charges contained in the indictment, DEMARCE faces 30 years in prison, $1,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation and Fort Peck Tribes Department of Law and Justice.  PACER Case Reference.  15-82

• SARAH RAE LARSON, a 32-year-old resident of Trout Creek, appeared on charges of uttering counterfeit obligations.  If convicted of the most serious charges contained in the indictment, LARSON faces 20 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the United States Secret Service. PACER Case Reference.  15-81

• AMANDA MIKHA CHERI ST. MARKS, a 21-year-old resident of Wolf Point, appeared on charges of bank employee fraud and aggravated identity theft.  If convicted of the most serious charges contained in the indictment, ST. MARKS faces 30 years in prison, $1,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation and Fort Peck Tribes Department of Law and Justice.  PACER Case Reference.  15-82

Appearing before U.S. Magistrate Johnston in Great Falls, on December 7, 2015 and entering pleas of Not Guilty were:

• MARIO JESUS PARRA CETINA, a 25-year-old resident of Seattle, Washington, appeared on charges of possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm.  If convicted of the most serious charges contained in the indictment, CETINA faces life in prison, $1,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  15-86

Appearing before U.S. Magistrate Johnston in Great Falls, on December 4, 2015 and entering pleas of Not Guilty were:

• SILAS JOHN DRUM, a 48-year-old resident of Brockton, appeared on charges of aggravated sexual abuse and abusive sexual contact.  If convicted of the most serious charges contained in the indictment, DRUM 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.  15-84

• TY ROBERT GRAY, a 22-year-old resident of Browning, 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, GRAY 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.  15-83

• LATONNA MARIE SPOTTED EAGLE, a 43-year-old resident of Browning, 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, SPOTTED EAGLE 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.  15-83

Appearing before U.S. Magistrate Lynch in Missoula, on December 2, 2015 and entering pleas of Not Guilty were:

• JAY WILLIAM ISLES, SR., a 52-year-old resident of Kalispell, appeared on charges of illegal export/attempted illegal export, and mailing firearms.  If convicted of the most serious charges contained in the indictment, ISLES 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, U.S. Postal Inspection Service, and Immigration and Customs Enforcement.  PACER Case Reference.  15-32

• TANNA LEE MEAGHER, a 25-year-old resident of Kalispell, appeared on charges of illegal export/attempted illegal export, felon in possession of firearms, straw purchase/false statement in connection with a firearms transaction, and mailing firearms.  If convicted of the most serious charges contained in the indictment, MEAGHER 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, U.S. Postal Inspection Service, and Immigration and Customs Enforcement.  PACER Case Reference.  15-32

• BRIAN SPAIN., a 29-year-old resident of Kalispell, appeared on charges of illegal export/attempted illegal export, felon in possession of firearms, transferring firearms to a prohibited person, dealing firearms without a license, unlawful transfer of firearms to an out-of-state resident, possession of firearms with obliterated serial numbers, and mailing firearms.  If convicted of the most serious charges contained in the indictment, SPAIN 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, U.S. Postal Inspection Service, and Immigration and Customs Enforcement.  PACER Case Reference.  15-32

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system 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 – Following a two day federal trial, a Montana jury found Ryan Anthony Cislo, most recently of Billings, guilty of being a felon in possession of firearms on Thursday.  Judge Susan Watters presided over the trial.  Sentencing has been set for March 23, 2016.

Cislo was indicted by a grand jury in December of 2014 on two counts, which included the felon in possession charge as well as a possession of stolen firearms charge.  At trial, the government introduced evidence that in June of 2014, Cislo was being supervised for a 2009 felony conviction from Flathead County.  He had been released from custody in May of 2014, and was periodically living in the home of his girlfriend’s mother between May 7 and June 9.  The homeowner called Cislo’s probation officer on June 9 to report that Cislo had shown her three handguns and requested that the officer come to her home to search Cislo’s belongings and remove the firearms.

Four officers with Montana Probation and Parole responded and searched the room that Cislo had been using.  Cislo was not present during the search.  The officers found two handguns stuffed between the mattress and the box spring of the bed.  One of the guns was loaded and had a live round in the chamber.  The other contained a loaded magazine.  The officers also found a Sentry gun safe and a wallet containing Cislo’s driver’s license, Social Security card, and various credit cards.  Through a seam in the safe, the officers could see that it contained at least ammunition.

Because they had only found two of the three reported firearms, the officers called in an officer with the Bureau of Alcohol, Tobacco, Firearms & Explosives to assist with the search.  The ATF officer pried open the gun safe and found a .22 caliber derringer inside along with multiple rounds of ammunition of varying caliber.  All together, the firearms included a Taurus .45 caliber semi-automatic pistol, a Hi-Point 9mm caliber semi-automatic pistol, and a Cobra .22 caliber derringer.

In a subsequent interview with law enforcement, Cislo denied ever living at the house in question or knowing anything about the firearms found there.  However, he had listed the address where the firearms were located as his residence on a monthly probation report from May 2014 and stated later in a jail call admitted at trial that he had stayed at the residence for at least ten nights.

The case was prosecuted by Assistant U.S. Attorneys John Sullivan and Lori Suek.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and Montana Probation and Parole.

BILLINGS – Following a two day federal trial, a Montana jury found Olaf James Haugen, 29, of Lame Deer, guilty of aggravated sexual abuse on Tuesday.  Judge Susan Watters presided over the trial.  A date for sentencing has not been set.

Haugen was indicted by a grand jury in January on the single count of aggravated sexual abuse.  At trial, the government introduced evidence that Haugen physically and sexually assaulted the victim in August of 2013.  A dispute started when the victim confronted Haugen about his drug abuse.  Haugen became angry.  He threatened to kill the victim with a pocket knife, raped her, hit her several times and bit her on the back.  The assault started on the evening of August 31 and continued into the next morning.

The assault was heard by an individual in the adjoining room, but was not reported by that individual.  Later, another individual came to the house and overheard the assault continuing.  She reported the assault to the BIA and an officer responded to the scene.  When the officer arrived, the victim opened a window and asked the officer to help her because Haugen was beating her up.  Haugen initially refused to allow the officer into the room and threatened to stab himself, but eventually calmed down and was arrested.

The victim was examined by Indian Health Services after the assault.  Her injuries included abrasions and contusions consistent with being struck, a large bite mark on her back and an abrasion on her throat consistent with having a knife held against it.  The victim did not initially disclose the rape but was convinced by a family member to do so and reported the rape two days later.  Haugen claimed the intercourse was consensual but gave conflicting accounts of the incident at trial and to investigating officers following his arrest.

The case was prosecuted by Assistant U.S. Attorney John Sullivan.  The case was investigated by the FBI and the Bureau of Indian Affairs.

MISSOULA – Blaine Garrett Reposa, 47, of Livingston, Montana, was sentenced today in Missoula federal court for distribution of child pornography.  Reposa pleaded guilty to the charge in August.  Chief U.S. District Court Judge Dana Christensen Sentenced Reposa to 60 months incarceration.  Following his release, Reposa will be subject to 20 years supervised release.

In an offer of proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have introduced evidence that in January 2014, an Internet Crimes Against Children Task Force detective received a cyber-tip that images of child pornography had been uploaded to a Tumblr account.  The IP logs for the upload were associated with Reposa’s residence.  A search of the residence produced numerous digital devices, which, on examination, provided evidence that Reposa uploaded images of child pornography to the Tumblr account in question between October 2013 and January 2014.

This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Internet Crimes against Children Task Force.  Reposa will have to serve at least 85% of his sentence before he will be eligible for parole.

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 Ostby in Billings, on December 3, 2015 and entering pleas of Not Guilty were:

• ROSS DUANE BRESHEARS, a 36-year-old resident of Billings, appeared on charges of felon in possession of a firearm and possession of a firearm by a person convicted of a misdemeanor crime of domestic violence.  If convicted of the most serious charge contained in the indictment, BRESHEARS 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.  15-140

• RICHARD EDGAR YOUNGBLOOD, a 28-year-old resident of Miles City, appeared on charges of felon in possession of a firearm and possession of a firearm with an obliterated serial number.  If convicted of the most serious charge contained in the indictment, YOUNGBLOOD 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.  15-146

Appearing before U.S. Magistrate Lynch in Missoula, on December 2, 2015 and entering pleas of Not Guilty were:

• LUKE ALDON HAYES, a 33-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, felon in possession of firearms, possession of unregistered silencers, and possession of silencers with no serial numbers.  If convicted of the most serious charges contained in the indictment, HAYES faces life in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the Montana Regional Violent Crime Task Force.  PACER Case Reference.  15-35

Appearing before U.S. Magistrate Johnston in Great Falls, on December 1, 2015 and entering pleas of Not Guilty were:

• JAMES DEBERRY, a 21-year-old resident of Box Elder, appeared on charges of sexual abuse of a minor and abusive sexual contact.  If convicted of the most serious charges contained in the indictment, DEBERRY 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.  15-73

Appearing before U.S. Magistrate Johnston in Great Falls, on November 30, 2015 and entering pleas of Not Guilty were:

• ROBERT LEE KETCHUM, a 32-year-old resident of Big Sandy, appeared on charges of conspiracy to possess with intent to distribute and 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, KETCHUM faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Russell Country Drug Task Force.  PACER Case Reference.  15-49

Appearing before U.S. Magistrate Ostby in Billings, on November 24, 2015 and entering pleas of Not Guilty were:

• JEFFERY JOHN BROWN, a 29-year-old resident of Lame Deer, appeared on charges of assault resulting in serious bodily injury.  If convicted of the most serious charge contained in the indictment, BROWN faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  15-126

• KIMBERLEE DUNN, a 64-year-old resident of Billings, appeared on charges of wire fraud and tax evasion.  If convicted of the most serious charges contained in the indictment, DUNN 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.  15-129

• THOMAS WILFRED MEURET, a 38-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, MEURET faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration.  PACER Case Reference.  15-132

• JUSTIN DAVID RIDDLE, a 34-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, RIDDLE 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.  15-116

Appearing before U.S. Magistrate Johnston in Great Falls, on November 24, 2015 and entering pleas of Not Guilty were:

• MARCUS GERALD FAST HORSE, a 24-year-old resident of Poplar, appeared on charges of assault resulting in serious bodily injury, assault with a dangerous weapon, and kidnapping.  If convicted of the most serious charges contained in the indictment, FAST HORSE 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 Fort Peck Tribes Department of Law and Justice.  PACER Case Reference.  15-80

Appearing before U.S. Magistrate Lynch in Missoula, on November 24, 2015 and entering pleas of Not Guilty were:

• ALAN J. COOK, a 38-year-old resident of Grand Junction, Colorado, appeared on charges of interstate communication of a threat.  If convicted of the most serious charges contained in the indictment, COOK 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.  15-34

Appearing before U.S. Magistrate Johnston in Great Falls, on November 23, 2015 and entering pleas of Not Guilty were:

• MONICA VERNETTE CAMPBELL, a 52-year-old resident of Wolf Point, appeared on charges of theft from an Indian tribal organization.  If convicted of the charge contained in the indictment, CAMPBELL faces 5 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Department of Interior Office of Inspector General and the Fort Peck Tribes Department of Law and Justice.  PACER Case Reference.  15-72

Appearing before U.S. Magistrate Ostby in Billings, on November 23, 2015 and entering pleas of Not Guilty were:

• CODY PEYTON BROWN, a 22-year-old resident of Wilson, North Carolina, appeared on charges of receipt of child pornography and transfer of obscene matter to a minor.  If convicted of the most serious charge contained in the indictment, BROWN faces 20 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Federal Bureau of Investigation. PACER Case Reference.  15-125

• LUTHER GEROME DAVIS, a 43-year-old resident of Madera, California, appeared on charges of transportation of a person with intent to engage in criminal sexual activity.  If convicted of the charge contained in the indictment, DAVIS 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.  15-114

• ELMER HOUSTIN ESTILL, a 54-year-old resident of Billings, 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, ESTILL faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.  The case was investigated by the Homeland Security Investigations, the Drug Enforcement Administration and the Eastern Montana HIDTA.  PACER Case Reference.  15-142

• RAYMOND LEE TOULOUSE, JR., a 30-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine, and conspiracy to commit money laundering.  If convicted of the most serious charges contained in the indictment, TOULOUSE faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the Homeland Security Investigations, the Drug Enforcement Administration and the Eastern Montana HIDTA.  PACER Case Reference.  15-145

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 former Director of the Chippewa Cree Tribe Roads Branch was sentenced to 38 months in federal custody today for taking bribes from contractors.  U.S. District Judge Brian Morris sentenced Timothy Warren Rosette, 52, of Box Elder, in connection with his earlier guilty pleas to two counts of bribery and one count of theft from an Indian tribal organization, to serve two years of supervised release and pay $600,000 in restitution to the Tribe.

At Rosette’s guilty plea in July 2015, the prosecution told the Court that Rosette served as the Director of the Roads Division, with the authority to select contractors, award contracts, and approve contract payments relating to the Roads Division’s operations.  Rosette also served as the Director of the Rocky Boy Health Clinic’s Environmental Health Unit, and in this role had authority to select contractors, award contracts and approve contract payments relating to the tribe’s community water supply (lagoons, pipes, sewers, storm drains, etc.).

In October 2009 a contractor called Hunter Burns Construction, LLC, (HBC), which was a business owned and controlled by Rocky Boy’s area contractor Hunter Burns and Dr. James Eastlick, a clinical psychologist at the Rocky Boy Health Clinic, purchased $6,219.57 worth of furniture for Rosette which was delivered in November 2009.  On October 14, 2009, HBC deposited $18,600 from the Clinic for a construction contract.  The furniture purchase occurred five days after the deposit from the health clinic.

In November 2011, Rosette, Eastlick, and Tribal Vice-Chairman John Chance Houle agreed to inflate a contractual payment from the Clinic to HBC for a sum of $20,000.  The HBC invoice dated November 28, 2011, indicated that the payment was an increase to an original invoice for transportation of “bio-hazard material.”  On November 28, 2011, a Clinic requisition was signed by Rosette and a $20,000 check was issued.  When interviewed, Rosette admitted the $20,000 given to HBC in this transaction was fraudulent.  Rosette also admitted to receiving $2,000 in cash from Eastlick on behalf of HBC for completing this transaction.

Between August of 2009 and January of 2013, Eastlick and HBC made hundreds of cash payments to Rosette in relation to HBC construction and trucking contracts, many of them on a per truck load, per day basis.  The last known gratuity made to Rosette by Eastlick and HBC took the form of an expense-paid trip to Las Vegas, Nevada, for Rosette and five of his family members in December 2011.  Eastlick and HBC covered the cost of airfare and hotels for Rosette and his family members during this Las Vegas trip.

Between August 2009 and January 2013, payments from the Clinic to HBC totaled $831,475.50.  Between August 2010 and July 2013, payments from the Chippewa Cree Tribe’s Roads Division to HBC totaled $690,798.59.

There came a time during this period when HBC was unable to handle all of the trucking work required by the Roads Branch, as the Tribe attempted to make infrastructure repairs after the 2010 floods and complete American Recovery and Reinvestment Act (ARRA) projects on the reservation.  HBC was also a subcontractor on the Tiber Project, and therefore, had commitments of equipment and labor on that project as well.

Shad Huston, a Havre businessman, controlled, either exclusively or jointly, several companies that did business with the Chippewa Cree Tribe. In July 2010, Huston became the business manager for K Bar K Trucking (K-K Trucking).  Eastlick enlisted Huston to assist in the trucking business with the Tribe and Huston then secured sole-source hauling contracts with the Roads Division.  Like Eastlick, Huston paid Rosette cash kick-backs on a per truck per day basis.  Investigators identified in excess of $111,000 in cash withdrawals from the K-K bank account.  Between July 2010 and July 2012, K-K Trucking was paid approximately $833,000 from the Roads Division.  Rosette admitted to investigators that he accepted cash payments and property from Huston.  Huston advised an associate inquiring about the inflated amount of the trucking invoices that the increased amount was necessary to “pay a tax” to tribal officials.

In October 2011 Rosette approved for payment two false invoices from “KN Trucking,” totaling $120,000, knowing that KN Trucking had not performed the work itemized on the invoices.  A tribal payment of $120,000 was actually issued to Huston’s company, K&N Consulting.  The $120,000 payment was the first deposit into the newly created K&N Consulting bank account at Independence Bank.  Rosette, Huston, and Eastlick all admitted to investigators that this claim was entirely fraudulent and designed only to extract money from the tribe.  The investigation determined that K&N Consulting was providing claim service consultation to the Tribe with respect to their insurance claim from the 2010 floods, as well as the Tribe’s claims filed with FEMA.  Investigators identified in excess of $99,000 in cash withdrawals from the K&N bank account.

The prosecutors told the Court that in March of 2012, Huston paid a $3,000 down payment at Tilleman Motor towards Rosette’s personal purchase of a new Suburban.  Other property Rosette received from Huston consisted of a ring, a pair of diamond earrings, and a saddle, all merchandise provided through Leon’s Buy and Sell pawn shop in Havre.

TMP Services was another Huston business; this one established to obtain tribal contracts to provide storage for property after the flood (medical equipment, windows, furniture, etc.).  Basically TMP Services was a collection of storage containers. TMP Services did business with the Chippewa Cree Construction Corporation (CCCC) and received over $372,000 in contract payments.

In the summer of 2012, TMP Services submitted a $30,000 invoice for “consulting services” to the CCCC for services provided to the Roads Branch.  Investigators recognized the transaction as suspicious because the construction corporation would not, legitimately, be paying the expenses of the Roads Branch as they are entirely separate entities with separate financial interests.  The investigation revealed that the invoice was indeed fraudulent and that no consulting services were provided.  The invoice was designed to extract tribal monies for the personal benefit of Huston and Rosette.  Rosette, as a member of the Board of Directors for the construction corporation, signed off on the check for $30,000.  The check was also signed by Sunchild.  Investigators also identified—and Rosette confirmed—that Rosette received two check payments from TMP Services totaling $7,500 and three check payments from Huston Leasing totaling $8,000.  Investigators also identified in excess of $28,000 in cash withdrawals from the Huston Leasing bank account.

There is no parole in the federal system.  Rosette will have to serve the entirety of the sentence less credit for good behavior which cannot exceed 15% of the sentence imposed.

The case was investigated by agents of the Guardians Project, including agents from the Offices of Inspector General for Departments of Interior and Health & Human Services, EPA, and the Criminal Investigations Division of the Internal Revenue Service.      

U.S. Attorney Michael W. Cotter announced today that the Montana United States Attorney’s Office collected $4.9 million in Fiscal Year (FY) 2015 related to criminal and civil actions.  In some cases, the U.S. Attorney’s Office worked in conjunction with litigating components of the U.S. Department of Justice.  During the past five fiscal years, the U.S. Attorney’s Office for the District of Montana has collected $53.3 million in criminal and civil actions.

Attorney General Loretta E. Lynch announced on December 3, 2015 that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015.  The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.

"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch.  “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver.  I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”

“The collections program illustrates an important aspect of the USAO’s public service mandate that is often overlooked,” said U.S. Attorney Michael W. Cotter.  “By recovering funds for victims and the federal treasury that are commensurate to our annual operating budget, we ensure that taxpayer dollars are maximized in our efforts to reduce crime, to compensate its victims, and to ensure that its perpetrators are unable to profit from their illegal activities.”

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the department?s Crime Victims? Fund, which distributes the funds to state victim compensation and victim assistance programs.

Occasionally, assets from criminals are forfeited by court action.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.  Forfeited assets include currency or bank accounts, real property and cars purchased with illegal proceeds or used to facilitate crimes, guns held by convicted felons, and computers used for child pornography.

Those who regularly follow the news are aware of the function of the United States Attorney’s Office regarding federal criminal prosecution.  Equally important, but perhaps not as well known, is the mission, function and success of the Montana USAO in recovering money for the benefit of victims of crime and the U.S. Treasury.  This critical mission is accomplished in large part by the Financial Litigation Unit (FLU).  The FLU collects criminal restitution, fines, and penalties ordered to be paid to federal agencies when federal programs are defrauded.  In addition the FLU Unit helps federal prosecutors identify and forfeit assets that represent the proceeds of or that were used to facilitate federal crimes.

MISSOULA – David Michael McLean, 75, of Anaconda, MT, was sentenced today in Missoula federal court.  In August, McLean pleaded guilty before U.S. Magistrate Jeremiah Lynch to two counts of wire fraud and one count of aggravated identity theft.  Senior U.S. District Court Judge Robert H. Whaley, of the Eastern District of Washington, Sentenced McLean to 18 months on the wire fraud counts—to run concurrently—and an additional 24 months on the aggravated identity theft charge for a total of 42 months.  McLean will also have to serve three years of supervised release and pay an as yet undetermined amount of restitution.  McLean was charged by indictment in July with five counts of wire fraud and five counts of aggravated identity theft.

Assistant United States Attorney Timothy Racicot stated in court documents that if called upon to prove its case at trial, the United States would have been prepared to demonstrate that McLean embezzled money from his clients and from the Montana Chapter of the American Board of Trial Advocates (ABOTA) from 2009 until 2014.  During that time, McLean stole approximately $465,614 from his clients and $62,325 from ABOTA.  He later incrementally repaid $29,611 of the ABOTA funds.  McLean served as ABOTA’s secretary/treasurer during this period.

McLean wrote checks from ABOTA’s account to himself or his law firm, signing his own name as treasurer and forging another ABOTA officer’s signature, and deposited the checks in his own firm’s operating account.  McLean stole money from his clients by settling cases without the client’s knowledge or consent, retaining the proceeds in accounts he controlled, and lying to his clients about the status of their cases.  He also forged his clients’ names on settlement documents.  This fraudulent behavior was ultimately discovered in July of 2014.  McLean subsequently admitted his fraud and reported himself to the State Bar’s Office of Disciplinary Counsel (“ODC”).  As a result of the ODC investigation, McLean was ultimately disbarred by the Montana Supreme Court in March of 2015.

In its his sentencing memo on behalf of the United States, Assistant U.S. Attorney Racicot emphasized the significance of McLean’s breach of trust both to the organization of which he was an officer and more particularly to his clients.  The memo stressed the importance of the sentence in sending a deterrent message to other attorneys who might be tempted to misappropriate client funds.

“The duty of loyalty an attorney holds on behalf of his clients is a sacred one, and McLean breached that duty,” said United States Attorney Mike Cotter.  “Because we belong to a largely self-policing profession—one moreover in which we are entrusted with the most sensitive personal and financial information of our clients—It is vital that a breach of this severity be punished appropriately.  Pure and simple, Attorney McLean broke the law.  The court’s sentence reflects the gravity of McLean’s offense and sends a message to the broader legal community that this type of behavior will not be tolerated.”

This case was prosecuted by Assistant U.S. Attorney Timothy Racicot and investigated by the FBI.

MISSOULA – A federal judge sentenced Douglas James Gosnell, 62, of Anaconda, Montana, to 33 months in prison today for receipt of a firearm while under indictment.  Chief U.S.  District Court Judge Dana Christensen also sentenced Gosnell to three years of supervised release.  The sentence follows Gosnell’s August 11, 2015, guilty plea and will run concurrently with the remainder of a state sentence that Gosnell is serving.

Assistant United States Attorney Paulette Stewart stated in court documents that on May 18, 2013, Gosnell obtained a .357 caliber revolver while he was subject to prosecution for violation of a protective order in a state court action.  This instance is one of many in Gosnell’s criminal history in which he illegally possessed or used a firearm.  According the United States’ Sentencing Memo, Gosnell had multiple convictions over a period of nearly forty years, for a number of crimes including partner and family member assault, automobile theft, and four separate weapons possession offenses.

Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anaconda-Deer Lodge County Law Enforcement Agency.  Gosnell will have to serve at least 85% of his sentence before he is eligible for parole.

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 Ostby in Billings, on November 19, 2015 and entering pleas of Not Guilty were:

• CLAY DOUGLAS SIEMSEN, a 55-year-old resident of Lockwood, appeared on charges of conspiracy to possess with 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, SIEMSEN faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation Task Force.  PACER Case Reference.  15-138

• NOEL THOMAS WHITEMAN, a 38-year-old resident of Lodge Grass, appeared on charges of failure to register as a sexual offender.  If convicted of the charge contained in the indictment, WHITEMAN 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.  15-135

Appearing before U.S. Magistrate Ostby in Billings, on November 17, 2015 and entering pleas of Not Guilty were:

• RACHAEL RUIZ, a 30-year-old resident of Kalispell, 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, RUIZ faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration.  PACER Case Reference.  15-133

Appearing before U.S. Magistrate Ostby in Billings, on November 13, 2015 and entering pleas of Not Guilty were:

• BRUCE ROBERT LEWIS, JR., a 46-year-old resident of Pasadena, Texas, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, LEWIS 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.  15-106

Appearing before U.S. Magistrate Johnston in Great Falls, on November 12, 2015 and entering pleas of Not Guilty were:

• SAUL VALENCIA, a 39-year-old resident of Mexico, 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, VALENCIA faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the Russell Country Drug Task Force and the Havre Tri-Agency Task Force.  PACER Case Reference.  15-78

Appearing before U.S. Magistrate Lynch in Missoula, on November 12, 2015 and entering pleas of Not Guilty were:

• MATTHEW ERIC BOUDREAU, a 21-year-old resident of Victor, appeared on charges of theft from a federal firearms licensee, possession of stolen firearms, and 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, BOUDREAU 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 Ravalli County Sheriff’s Office.  PACER Case Reference.  15-26

Appearing before U.S. Magistrate Lynch in Missoula, on November 9, 2015 and entering pleas of Not Guilty were:

• RICHARD WAYNE STROH, a 35-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.  If convicted of the most serious charge contained in the indictment, STROH faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation and the Montana Regional Violent Crime Task Force.  PACER Case Reference.  15-31

Appearing before U.S. Magistrate Johnston in Great Falls, on November 2, 2015 and entering pleas of Not Guilty were:

• JOSEPH DEAN LEE, a 27-year-old resident of Wolf Point, appeared on charges of aggravated sexual abuse, assault with the intent to commit aggravated sexual abuse, and assault with the intent to commit abusive sexual contact.  If convicted of the most serious charges contained in the indictment, LEE faces life in prison, $250,000 in fines and lifetime 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.  15-63

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 – Donald “Ski” Johnson, 49, of Silver Spring, Maryland, was sentenced yesterday to five years of probation, with six months spent under house arrest, for wire fraud.  In July, a jury convicted Johnson following a two-day federal trial in Butte, Montana and determined that Johnson had defrauded Big Brothers Big Sisters of Gallatin County, Montana, by misrepresenting himself as a Grammy-nominated artist soliciting funds for a children’s cancer foundation.  In reality, Johnson was never nominated for a Grammy and used money in the foundation’s account for his personal expenses.  Chief U.S. District Court Judge Dana L. Christensen issued the sentence.

At trial, Assistant United States Attorney Chad C. Spraker presented evidence that in May 2012, Johnson contacted a large Montana resort using the alias Kevin Wright.  The resort was partnering with Big Brother Big Sisters to put on a charity celebrity golf tournament.  “Wright” claimed he was a Sony Records representative and an agent of Grammy-nominated saxophonist Ski Johnson.  He also claimed that Johnson ran a charity known as the Jazz for Life Foundation, a children’s cancer charity.  “Wright” stated that Johnson would donate two Grammy tickets to Big Brothers Big Sisters with one half of the proceeds going to Big Brothers Big Sisters and the other half going to Jazz for Life.  Grammy tickets may not be transferred or resold, and Grammy tickets provide that tickets obtained in contravention of their terms will not be honored, and their holders shall be deemed trespassers.  Big Brothers Big Sisters paid for Johnson and his associate’s travel expenses, lodging, food, and green fees.  Big Brothers Big Sisters held the tournament in July 2012 and auctioned the tickets for a bid of $6,000.  Big Brothers Big Sisters stopped the transaction after learning of Johnson’s true identity.

In making its sentencing recommendations, the United States noted that Johnson had perpetrated similar frauds previously between 2011 and 2014.  In one instance he organized a black-tie charity gala and promised the attendance of numerous celebrities, none of whom had ever committed to attend.  Johnson ultimately canceled the event, but not before the PayPal account associated with Jazz for Life had received nearly $14,000 in proceeds.  Johnson also used the approach he employed with Big Brothers Big Sisters on many other occasions.  The United States urged the court to consider the losses associated with these frauds in its sentencing determination and argued that they were perpetrated as part of a common scheme.  The United States pointed out that of the $120,000 deposited in the Jazz for Life Account between July 2012 and December 2013, only $20 was actually contributed to a charity.  The United States also argued that losses included tens of thousands dollars expended by various charities on Johnson and his associates for travel expenses and other perks as a result of Johnson’s false representations.

Assistant U.S. Attorney Chad C. Spraker prosecuted the case, which was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.

MISSOULA – Frederick Glen Johnson, 47, of Spokane Valley, Washington, was sentenced today in Missoula federal court for drug and prostitution-related racketeering crimes.  In June, Johnson pleaded guilty to one count of conspiracy to possess with the intent to distribute methamphetamine and heroin and one count of interstate travel in aid of racketeering before U.S. Magistrate Judge Jeremiah Lynch.  Chief U.S. District Court Judge Dana Christensen Sentenced Johnson to 120 months in prison on the conspiracy to distribute charge and 60 months on the racketeering charge.  The sentences will run concurrently.  Following his release, Johnson will be subject to five years of supervised release for the drug charge and three years for the racketeering charge, also to run concurrently.

In an offer of proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have demonstrated that between February and November of 2014, Johnson possessed and entered into an agreement with co-conspirators to distribute 50 grams or more of methamphetamine and 100 grams or more of heroin.  During these transactions, Johnson brandished a .25 caliber semi-automatic handgun.  In addition, between June and August of 2014, Johnson traveled in interstate commerce with the intent to promote, manage, establish, carry on or facilitate prostitution.  The government was prepared to prove that during this time period, Johnson traveled between Spokane, Washington, and Missoula, Montana, with five women.  While in Missoula, Johnson drove the women to meet customers and would ensure their safety during the meetings, in order to facilitate the crime of prostitution.  Johnson is the third of four co-conspirators to be sentenced in this prostitution and drug-running operation.

This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation, Montana Violent Crime Task Force, Missoula Street Crimes Unit, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

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 Billings, on November 6, 2015 and entering pleas of Not Guilty were:

• DEAN JAMES SMALL, a 48-year-old resident of Lame Deer, appeared on charges of assault on a federal officer and use of a firearm during and in relation to a crime of violence.  If convicted of the most serious charge contained in the indictment, SMALL 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 Indian Affairs.  PACER Case Reference.  15-137

Appearing before U.S. Magistrate Lynch in Missoula, on November 4, 2015 and entering pleas of Not Guilty were:

• KENNETH MICHAEL MARKEE, JR., a 35-year-old resident of Billings, appeared on charges of possession of a firearm with an obliterated serial number.  If convicted of the charge contained in the indictment, MARKEE faces 5 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 Bozeman Police Department.  PACER Case Reference.  15-33

• JAMES EARL WILLIAMS, a 34-year-old resident of Billings, appeared on charges of failure to register as a sex offender.  If convicted of the charge contained in the indictment, WILLIAMS 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.  15-110

Appearing before U.S. Magistrate Anderson in Billings, on November 3, 2015 and entering pleas of Not Guilty were:

• TIMOTHY PATRICK PINE II, a 36-year-old resident of Fortine, 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, PINE faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation.  PACER Case Reference.  15-133

• SHAWN LEE STEWART, a 38-year-old resident of Wyola, appeared on charges of felon in possession of a firearm and ammunition and possession of an unregistered firearm.  If convicted of the most serious charge contained in the indictment, STEWART 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.  15-134

Appearing before U.S. Magistrate Johnston in Great Falls, on November 2, 2015 and entering pleas of Not Guilty were:

• JOHN EDMONSTON, a 54-year-old resident of Great Falls, appeared on charges of conspiracy to defraud the United States and theft of federal property by fraud.  If convicted of the most serious charge contained in the indictment, EDMONSTON faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by Homeland Security Investigations and Malmstrom Air Force Base Office of Special Investigations.  PACER Case Reference.  15-69

• JASON DANIEL WALKER, a 37-year-old resident of Lewistown, appeared on charges of felon in possession of firearms.  If convicted of the most serious charge contained in the indictment, WALKER 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.  15-36

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system 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 – Taj Tesfaye Hayes, 39, of Oceanside, California, was sentenced today in Billings federal court to prostitution-related racketeering charges.  On July 31, Hayes pleaded guilty to one count of interstate travel in aid of racketeering.  U.S. District Court Judge Susan Watters Sentenced Hayes to 18  months incarceration and 2 years supervised release.

In an offer of proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have produced evidence that Hayes traveled in interstate commerce with the intent to promote, manage, establish, carry on or facilitate prostitution.  Specifically, the government was prepared to prove that on February 20, 2015, Hayes rented a car in Oceanside, California.  On March 25, Hayes  drove the rental car to Las Vegas and then to Salt Lake City with a woman.  While in Salt Lake City on the night of March 26, Hayes and the woman posted advertisements for commercial sex with the woman on www.backpage.com, an online classified ad site.  On  March 27, 2015, Hayes drove with the woman to Billings.  They again posted advertisements on www.backpage.com advertising commercial sex with the woman.

An undercover FBI agent responded to the advertisement.  The agent negotiated a price and arranged to meet the woman at the Crowne Plaza hotel in Billings.  Agents met the woman and Hayes at the hotel and both were questioned.  Both Hayes and the woman denied knowing one another, despite evidence to the contrary, including luggage containing male and female attire in the woman’s hotel room, two baseball caps in Hayes’ backpack that had been worn by the woman in the backpage.com ads, and a debit card issued in the woman’s name tucked into the hat Hayes was wearing.  One of the Agents called the number listed in the backpage.com ad, and it rang to a phone taken from Hayes.

This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation and the Montana Division of Criminal Investigation as part of an operation targeting sex trafficking in the Billings area.

BILLINGS – Following a three day federal trial, a Montana jury found William Krisstofer Wolf, 53, of Bozeman, guilty on two counts: Illegal Possession of a Machine Gun and Possession of a Firearm not Registered in the National Firearms Registration and Transfer Record.  Judge Susan Watters presided over the trial.  Sentencing is set for March 3, 2016.

At trial, the government introduced evidence that Wolf had repeatedly expressed an intent to acquire and possess dangerous weapons, including flamethrowers, incendiary ammunition, and napalm, and ultimately did acquire the fully automatic sawed-off shotgun that lead to his arrest.

In his weekly online radio show, named “The Montana Republic,” Wolf discussed his anti-government views and his plans to overthrow local, state, and federal governments by force.  He advocated the affirmative targeting of law enforcement officers and stated on numerous occasions that he considered agents of local, state, and federal government to be the enemies.  After holding a “committee of safety meeting” on January 29, 2015, Wolf stated in his “extreme movement…my preferred method would be to drop 500 pounds of napalm through the roof of the courthouse and burn it to the ground and roast some marshmallows on it.”  He also told people at the meeting, that “my great fatal flaw is I’m gonna’ tell you what I’m going to do to you, and the bottom line is, I do it to you.”

In pursuance of his aims, Wolf stated his intent to acquire the “most devastating weapons he could use” including machine guns and flamethrowers.  The FBI arranged for Wolf to meet a Confidential Informant (“CI”), who posed as a like-minded individual in order to determine Wolf’s true intentions.  Over time, Wolf communicated to the CI his desire to obtain or build a “blowtorch gun” or flamethrower which could be used to target law enforcement officials and vehicles including the Bozeman Police Department’s recently acquired BearCat vehicle.  Wolf agreed to be introduced to a friend of the CI who could help him obtain these items.  The CI’s “friend” was actually an undercover FBI agent known only to Wolf as “Dirty.”  During his discussions with both the CI and Dirty, Wolf demonstrated his knowledge of flamethrowers, how to make napalm, and fully automatic weapons, including his ability to describe in detail the merits and functionality of such weapons.  Dirty offered to help Wolf procure a flamethrower; Wolf responded, “try to get me a Russian automatic shotgun too.”  During a subsequent meeting with Dirty, Wolf stated his preference for the Saiga 12 fully automatic shotgun.  Wolf also told Dirty that any fully automatic shotgun “will handle most riot crowds and cops.”  When Dirty told Wolf that there would be “no paper” with the sale, Wolf replied, “I love that.”  Wolf later sent a text message to the CI that he wanted a military-grade (sawed off) barrel on the machine gun he had previously requested from Dirty.

The FBI obtained a Saiga 12 by modifying a semi-automatic shotgun with a standard barrel to the specifications requested by Wolf.  The FBI agent made a video demonstrating the fully automatic capabilities of the gun and forwarded it to the CI.  The CI showed Wolf the video.  The CI told Wolf he would have to pay an additional $125 for the conversion to fully automatic.  Wolf readily agreed.  Wolf communicated to the CI that he intended to build a flamethrower to mount under the barrel of the shotgun and observed that the shortened barrel was ideal for this purpose.  Wolf stated, “the purpose of the gun is not to go hunting with, it’s to clean house.”  Wolf agreed to purchase the gun.  On March 25, 2015, Wolf met the FBI agent at a truck stop in Livingston, Montana.  The agent communicated to Wolf that the weapon had been modified from semi-automatic to fully automatic, which Wolf acknowledged.  Minutes before taking possession of the machine gun, Wolf told the agent, “I just need to kill the public officials.”  The FBI agent also told Wolf that the weapon was an illegal firearm.  Undeterred, Wolf paid the agent and transferred the firearm to his vehicle, at which point he was arrested by the FBI.

At trial, the government used a combination of Wolf’s recorded radio show, excerpts of his conversations with the CI and undercover FBI agent, and post-arrest recordings to demonstrate to the jury that Wolf was aware of the features of the gun that brought it within the scope of the statute requiring registration.

“The members of this Montana jury have sent a strong message that those, like Mr. Wolf, who seek anarchy and violence, and who willingly break federal firearms laws will not be tolerated in Montana,” said Montana U.S. Attorney Mike Cotter.  “The agents of the Federal Bureau of Investigation are to be commended for their diligent work and effort in this investigation.”

The case was prosecuted by Assistant U.S. Attorney Bryan Whittaker and Trial Attorney Danya Atiyeh, from the Counterterrorism Section, National Security Division, of the United States Department of Justice.  The case was investigated by the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

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 Anderson in Billings, on October 28, 2015 and entering pleas of Not Guilty were:

• BRETT WADE CLOUSE, a 36-year-old resident of Absarokee, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, conspiracy to commit money laundering, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charges contained in the indictment, CLOUSE faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation.  PACER Case Reference.  15-127

• MAYNARD PAUL CROOKED ARM, a 51-year-old resident of Crow Agency, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, CROOKED ARM 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.  15-128

• RINDA LEE MORGAN, a 42-year-old resident of Helena, 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, MORGAN faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation.  PACER Case Reference.  15-127

• JESSE DALE VANHOOK, a 32-year-old resident of Missoula, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, VANHOOK faces 10 years in prison, $250,000,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  15-23

Appearing before U.S. Magistrate Johnston in Great Falls, on October 28, 2015 and entering pleas of Not Guilty were:

• SCOTT MITCHELL BUMMER, a 51-year-old resident of Helena, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of firearms in furtherance of a drug trafficking crime.  If convicted of the most serious charges contained in the superseding indictment, BUMMER faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Russell Country Drug Task Force.  PACER Case Reference.  15-46

• ULYSSES GARCIA, a 26-year-old resident of Salem, Oregon, appeared on charges of possession with intent to distribute methamphetamine.  If convicted of the charge contained in the indictment, GARCIA 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.  15-74

• LLOYD THOMAS RIDER, III, a 28year-old resident of Great Falls, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, RIDER faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  15-68

• PETER MICHAEL RUSSETTE, a 37-year-old resident of Great Falls, appeared on charges of felon in possession of a firearm and obstruction of justice – witness tampering.  If convicted of the most serious charge contained in the indictment, RUSSETTE 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.  PACER Case Reference.  15-67

Appearing before U.S. Magistrate Johnston in Great Falls, on October 27, 2015 and entering pleas of Not Guilty were:

• KALVIN JOSEPH GOBERT, a 29-year-old resident of Browning, appeared on charges of sexual abuse of a minor.  If convicted of the charge contained in the indictment, GOBERT faces 15 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Bureau of Indian Affairs.  PACER Case Reference.  15-75

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 – Roy Eugene Baker, Jr., 71, of Missoula, MT, was sentenced today in Missoula federal court.  In July, Baker pleaded guilty before U.S. Magistrate Jeremiah Lynch to one count of Aiding or Advising a False Tax Return.  Chief U.S. District Court Judge Dana Christensen Sentenced Baker to five years’ probation and the payment of $11,768.24 in restitution.  Baker was initially charged by indictment with six counts of Aiding or Advising a False Tax Return and one count of False Statements to a Government Agency.

The IRS began investigating Baker and his tax preparation company, Bak-Tax Management Service, following a complaint by one of Baker’s clients that Baker had falsely inflated business expenses on the client’s tax return.  Two undercover IRS agents went to Bak-Tax to have tax returns prepared.  Baker prepared a return for one of the agents that included false business expenses in the amount of $4,433.  When the agent questioned Baker about the figure, Baker responded, “I gave you a few more supplies there.”

When subsequently questioned by the IRS about the cost of goods figure reported on the undercover agent’s tax return, Baker lied, stating that the figure had been supplied by the client.  An audit of all of Baker’s clients revealed $467,737 in underreported tax to the IRS.  The Government charged Baker based on $59,789 of criminal loss to the IRS from those clients whose records and testimony could prove beyond a reasonable doubt that Baker falsified their tax returns.  Baker’s methods included creating false schedule C businesses, inflating business expenses, and omitting income reported to him by his clients.  When some of Baker’s clients confronted him, he claimed ignorance and refused to help them with the audit process.  In its recommendation for sentencing, the United States noted that Baker’s actions resulted in a significant fraud against both the United States Treasury and his own clients, many of whom owed substantial amounts to the IRS as a result of Baker’s actions.

This case was prosecuted by Assistant U.S. Attorney Chad Spraker and investigated by the Internal Revenue Service.

MISSOULA – Anthony Dane Roberty, 54, of Bozeman, Montana, was sentenced today to 84 months incarceration followed by 15 years supervised release, for receipt of child pornography.  Chief U.S. District Court Judge Dana Christensen sentenced Roberty following a July 16, 2015, hearing held before U.S. Magistrate Jeremiah Lynch, in which Roberty pleaded guilty to the offense.  The sentence will run concurrently with state sentences Roberty is serving for felony DUI.

In an Offer of Proof filed by Montana Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have proven that in March 2014, an FBI agent downloaded files depicting child pornography as part of an online investigation to identify individuals trafficking in child pornography using BitTorrent.  The IP address for the downloaded files was connected to Roberty’s residence.  The agent obtained a search warrant and conducted a search of Roberty’s residence in September of 2014.  Roberty was interviewed on the day of the search and admitted he used BitTorrent and that agents would find child pornography on his computer and an external hard drive.

A computer and portable hard drive seized from Roberty’s residence were found to contain child pornography.  A forensic examiner determined that the computer contained BitTorrent client software and had been used to send and receive files using BitTorrent.  The examiner discovered numerous graphics depicting children engaged in sexually explicit conduct, including sexual conduct between children and adults.  The examiner also found video files that depicted child pornography.  The files were created between February and April of 2014.

“Once again, our partnerships with state and federal law enforcement agencies have given us the resources to track down consumers and distributors of child porn,” said Montana U.S. Attorney Mike Cotter.  “By working together under the Department’s Project Safe Childhood Initiative, we help keep children from being victimized by these types of predatory criminals.”  David A. Thompson, Special Agent in Charge of Homeland Security Investigations in Denver stated: “this significant prison sentence reflects the serious criminal nature of child exploitation, and the resulting permanent trauma inflicted on its young and helpless victims.  Our HSI special agents are trained to identify, investigate and pursue prosecution against these child predators, and rescue their victims – and we take that responsibility very seriously.”

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.  Investigative agencies involved in the case included the FBI, Homeland Security Investigations, the Montana Division of Criminal Investigation and the Bozeman Police Department.  Assistant United States Attorney Cyndee Peterson prosecuted this 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 Ostby in Billings, on October 23, 2015 and entering pleas of Not Guilty were:

• JORDALE THOMAS REDWOLF, a 27-year-old resident of Wyola, appeared on charges of felon in possession of a firearm, possession of a stolen firearm, possession of an unregistered firearm, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charges contained in the indictment, REDWOLF faces 10 years in prison, $250,000 in fines and 5 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  15-76

Appearing before U.S. Magistrate Ostby in Billings, on October 22, 2015 and entering pleas of Not Guilty were:

• ANTHONY DAVID HOPWOOD, a 30-year-old resident of Billings, appeared on charges of possession of a firearm by a person convicted of domestic violence and possession of a stolen firearm.  If convicted of the most serious charge contained in the indictment, HOPWOOD 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.  14-106

Appearing before U.S. Magistrate Lynch in Missoula, on October 20, 2015 and entering pleas of Not Guilty were:

• PAUL GEE CHIANG, a 41-year-old resident of Renton, Washington, appeared on charges of conspiracy to possess with intent to distribute oxycodone, possession with intent to distribute oxycodone, conspiracy to acquire or obtain possession of a controlled substance by deception, and acquiring or obtaining possession of a controlled substance by deception.  If convicted of the most serious charges contained in the indictment, CHIANG faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-21

Appearing before U.S. Magistrate Johnston in Great Falls on October 20, 2015 and entering pleas of Not Guilty were:

• NEAL PAUL ROSETTE, a 53-year-old resident of Box Elder, appeared on charges of conspiracy to defraud the Chippewa Cree Tribe, scheme to defraud the Chippewa Cree Tribe/wire fraud; bribery/accepting, income tax evasion and willful failure to file tax returns.  If convicted of the most serious charges contained in the indictment, ROSETTE 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, Internal Revenue Service, U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.  PACER Case Reference.  15-61

Appearing before U.S. Magistrate Ostby in Billings on October 19, 2015 and entering pleas of Not Guilty were:

• MORGAN MARIE ANDERSON, a 24-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, ANDERSON 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 Task Force.  PACER Case Reference.  15-94

• CHRISTOPHER BRADLEY CHASE, a 25-year-old resident of Billings, appeared on charges of felon in possession of a firearm.  If convicted of the charge contained in the indictment, CHASE 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.  15-95

• REGINA DENISE HARDEMAN, a 54-year-old resident of Barstow, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, HARDEMAN faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-111

• CHRISTOPHER L. HARGITT, a 41-year-old resident of Glendive, appeared on charges of felon in possession of a firearm, possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the most serious charges contained in the indictment, HARGITT faces life in prison, $5,000,000 in fines and 5 years supervised release.  The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  PACER Case Reference.  15-92

• LARRY BURNELL SEPT, JR., a 43-year-old resident of Richmond, California, appeared on charges of transportation of a person with intent to engage in criminal sexual activity.  If convicted of the charge contained in the indictment, SEPT 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.  15-114

Appearing before U.S. Magistrate Ostby in Billings on October 16, 2015 and entering pleas of Not Guilty were:

• JERRY RAY DEGOLYER, a 51 year-old resident of Sidney, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, DEGOLYER faces 40 years in prison, $5,000,000 in fines and 4 years supervised release.  The case was investigated by State of Montana Division of Criminal Investigations and the Drug Enforcement Administration.  PACER Case Reference.  15-108

• ROBERT LELAND HICE, a 68-year-old resident of Billings, appeared on charges of distribution of child pornography, receipt of child pornography and possession of child pornography.  If convicted of the most serious charges contained in the indictment, HICE faces 20 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  15-99

• WILLIAM WOODROW SPRINGFIELD, SR., a 53-year-old resident of Lodge Grass, appeared on charges of possession with intent to distribute methamphetamine.  If convicted of the charge contained in the indictment, SPRINGFIELD 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.  15-121

Appearing before U.S. Magistrate Lynch in Missoula on October 14, 2015 and entering pleas of Not Guilty were:

• CHAD WILLIAM HEDGES, a 41-year-old resident of Bozeman, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine and felon in possession of a firearm.  If convicted of the most serious charges contained in the indictment, HEDGES faces life in prison, $10,000,000 in fines and 5 years supervised release.  The case was investigated by the Missouri River Drug Task Force.  PACER Case Reference.  15-28

Appearing before U.S. Magistrate Ostby in Billings on October 13, 2015 and entering pleas of Not Guilty were:

• TAVIS ALAN-CODY PAIR, a 31 year-old resident of Billings, appeared on charges of possession of an unregistered firearm and felon in possession of a firearm and ammunition.  If convicted of the most serious charge contained in the indictment, PAIR 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.  15-30

• TAVIS ALAN-CODY PAIR, a 31 year-old resident of Billings, appeared on charges of possession of conspiracy to distribute methamphetamine and distribution of methamphetamine.  If convicted of the most serious charges contained in the indictment, PAIR 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.  15-101

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 – Drumlummon Gold Corporation (DGC) and its operator, Seibert Smith, 74, of Helena, MT, pleaded guilty yesterday to failing to comply with a U.S. Department of Labor Mine Safety and Health Administration (MSHA) order.  The charge stemmed from a superseding information filed in late September by the United States.  Smith and a representative of the Corporation appeared before District Court Judge Charles Lovell in Helena to enter the guilty pleas.  Judge Lovell ordered DGC to pay a $17,500 fine and a $17,500 community service payment to the State Department of Labor, Mine Safety Bureau.  Smith must pay a $1,750 fine.

The sentences were a result of a plea agreement entered into by the United States and the defendants.  Had the case proceeded to trial, the United States was prepared to prove that DGC, the operator of an underground gold mine at Marysville, Montana, operated in such a way and produced products that affected interstate commerce from 2011 to 2013.  During this period, Smith was a manager or agent of DGC and served as the mine’s safety supervisor.    The maximum penalty for failure to comply with an MSHA order is one year imprisonment and $250,000 in fines for individuals, and $250,000 in fines for an organization.

Acting on an anonymous complaint about an unreported accident at the mine involving a utility vehicle, MSHA sent an inspector to investigate and interview the mine superintendent alleged to be responsible for the accident.  Smith was initially unable to supply the superintendent’s training records but subsequently provided records indicating that the superintendent had been trained on the utility vehicle in September of 2011.  Upon further inspection, the MSHA inspector noted that the records appeared to have been falsified.  MSHA determined that the equipment-specific training allegedly provided to the Superintendent could not have occurred in 2011 as indicated by the training records, because the utility vehicle did not arrive on mine property until March of 2012.  The United States was prepared to demonstrate that Smith was aware of the fact that the superintendent could not have received the training on the date indicated in the training record he provided to MSHA.

Smith and DGC were originally indicted in May 2015 on two counts of false statements and falsification of mine records.  Smith and DGC ultimately pleaded guilty to the superseding information filed by the United States on September 28th, alleging failure to comply with an MSHA order.  In briefing provided to the court, the United States supported a sentence requiring payment of community service to the State Department of Labor and Industry Mine Safety Bureau.  That agency administers grants for mine safety training.  The community service payment by DGC will provide safety training to Montana miners required by both state and federal law.

“This is the first criminal case prosecuted under the Mine Safety and Health Act in Montana” said U.S. Attorney Mike Cotter.  “The decision to pursue criminal sanctions is symbolic of the United States’ commitment to stringently protect the safety of workers in this industry.”  MSHA Assistant Secretary Joseph A. Main stated: "Mine operators are responsible for training their miners so that they can work safely in the mining environment, and when they don’t, they will be held accountable.  It’s an investment that will help ensure these men and women return home to their families after every shift."

The case was investigated by the U.S. Department of Labor Mine Safety and Health Administration and was prosecuted by Assistant U.S. Attorney Kris McLean.

GREAT FALLS –The United States Attorney’s Office announced that DARIN LEE MILLER, 43, of Havre, Montana, pleaded guilty during a federal court hearing in Great Falls, Montana, on October 13, 2015, before U.S. District Judge Brian M. Morris, to filing false federal income tax returns in which he did not report the interest he received from extensive tribal loans. In a plea agreement with the United States, Miller will serve a sentence of nine months in jail, pay a $90,000 fine, and pay the Internal Revenue Service $73,125.50 in taxes, penalties and interest within 18 months of his sentence.  Although the government presented the plea agreement as conditioned upon Miller receiving that sentence, Judge Morris ordered a presentence investigation and set sentencing for January 21, 2016.  Judge Morris may at that time reject the plea agreement and allow Miller to proceed to trial on felony charges of tax evasion.

During the period of the Superseding Information, Darin Miller was a pharmacist at the Rocky Boy Health Clinic (RBHC or the Clinic).  The psychologist at the Clinic was Dr. James Eastlick.

Eastlick operated a loan program—called the JE Loan Program—with the Chippewa Cree Tribe, wherein he loaned money both to the Tribe in large amounts and to individual tribal employees in smaller amounts.  After a couple of years running the loan program, Eastlick brought in Miller as a partner with the intention of turning the business over to Miller. The loans Eastlick made for the Tribe generally included interest rates of 10%, and were paid back within 10 weeks of Eastlick loaning the money.  On an annualized percentage rate (APR) basis, loans from the JE Loan program would constitute a 70% to 80% return.

With regard to the loans to the tribal employees, Eastlick and Miller had an arrangement with the Tribe that they would provide loans to tribal employees, and to guarantee the repayment of those debts, money would be taken from the employee’s paycheck, consolidated with other debtors of the JE Loan program, and then tribal checks would be regularly issued to Eastlick and Miller representing both interest and principal.  The JE Loan Program had a similar working relationship with the Finance Offices of the Tribe’s various subsidiary enterprises, such as the Rocky Boy Health Clinic and the Rocky Boy’s School District, which handle their payroll internally and not through the Tribe’s main finance office.  These loans were also short-term loans that carried an interest rate of between 10% and 15%; with an annualized rate being significantly higher—75% to 100% return if the loans were calculated over the full year.

Both Eastlick and Miller were responsible for their own tax liability for the interest income they earned.  Miller claimed $10,000 of interest income on his 2010 tax return, but did not claim interest income from the tribal loan program on any other years.  Once under investigation, Miller sought the services of a Great Falls accountant to amend his returns to include interest from the lending business.  Miller told the accountant, at the time he originally filed his returns, he did not think he had to claim the interest income until he used it.  However, Miller had claimed interest income from other sources and had claimed interest income on his prior years’ tax returns and even the returns filed for the tax years under investigation—2009, 2010, and 2011.

The amounts of unreported interest income were significant.  Miller earned $17,148.68, $76,373.37, and $23,378.17 in interest income from tribal loans in 2009, 2010, and 2011 respectively.  According to the accountant, Miller had not kept track of the interest in the tax years in which it was realized and Miller and his accountant had to retrieve records from the Tribe to have his tax returns amended.  Even when amended, Miller’s returns failed to account for significant interest received.

According to the accountant, Miller did not reveal that at some point during these years he increased the interest rate he charged for individual loans from 10% to 12.5% until after the amended returns had been prepared.  It would have been important for a tax preparer to know that interest rate had been increased to 12.5% in order to accurately amend Miller’s tax returns.  Eastlick also knew Miller had increased the interest rate he charged to 12.5% when he took over the loan program with the CCT.  Some employees of the RBHC and loan recipients also verified Miller raised his interest rate to 12.5%.

Miller had a bank account with Wells Fargo Bank.  From 2009, when Miller first became involved with Eastlick’s loan program, and 2011, Miller deposited $635,818.48 in tribal loan checks into his Wells Fargo Bank account.  This figure does not include any checks Miller transacted into cash at Wells Fargo.  In addition to the bank account with Wells Fargo, during the same time period, Miller cashed $71,109.53 in checks at Leon’s Buy & Sell and another $142,042.87 at Leon’s Finance, businesses operated by Havre businessman, Shad Huston.   

Miller’s conviction on tax charges is the latest in a series of prosecutions brought and convictions obtained by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011.

Once Miller plead guilty to the tax charges, the Court remanded him into custody to begin serving the sentence outlined in the agreement.

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 October 8, 2015 and entering pleas of Not Guilty were:

• JACOB FINLEY, a 23-year-old resident of Browning, appeared on charges of false information and hoaxes.  If convicted of the charge contained in the indictment, FINLEY faces 5 years in prison, $250,000 in fines and 1 year supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  15-65

• RICHARD LITTLE DOG, a 50-year-old resident of East Glacier, 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, LITTLE DOG 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.  15-66

• CHARLES PAUL REEVIS, a 24-year-old resident of Browning, 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, REEVIS 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.  15-64

Appearing before U.S. Magistrate Ostby in Billings on October 8, 2015 and entering pleas of Not Guilty were:

• QUINDELL JORDAN BULLTAIL, a 25-year-old resident of Lodge Grass, appeared on charges of depredation of government property and theft of government property.  If convicted of the most serious charge contained in the indictment, BULLTAIL faces 10 years in prison, $250,000 in fines and 3 years supervised release.  The case was invested by the Bureau of Indian Affairs.  PACER Case Reference.  15-89

Appearing before U.S. Magistrate Lynch in Missoula on October 7, 2015 and entering pleas of Not Guilty were:

• NATASHA OAKLEY, a 34-year-old resident of Sammamish, Washington, appeared on charges of conspiracy to possess with intent to distribute oxycodone, possession with intent to distribute oxycodone, conspiracy to acquire or obtain possession of a controlled substance by deception, and acquiring or obtaining possession of a controlled substance by deception.  If convicted of the most serious charges contained in the indictment, OAKLEY faces 20 years in prison, $1,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-21

• VERA OAKLEY, a 64-year-old resident of Sammamish, Washington, appeared on charges of conspiracy to possess with intent to distribute oxycodone, possession with intent to distribute oxycodone, conspiracy to acquire or obtain possession of a controlled substance by deception, and acquiring or obtaining possession of a controlled substance by deception.  If convicted of the most serious charges contained in the indictment, OAKLEY faces 20 years in prison, $1,000,000 in fines and 5 years supervised release.  The case was investigated by the Drug Enforcement Administration.  PACER Case Reference.  15-21

Appearing before U.S. Magistrate Johnston in Great Falls on October 6, 2015 and entering pleas of Not Guilty were:

• LORALEE WAXCHA RED DOG, a 21-year-old resident of Poplar, appeared on charges of bank employee fraud, aggravated identity theft and theft from tribal express.  If convicted of the most serious charges contained in the indictment, RED DOG faces 30 years in prison, $1,000,000 in fines and 5 years supervised release.  The case was investigated by the Federal Bureau of Investigation.  PACER Case Reference.  15-53

• CASSIDY WINTERS, a 28-year-old resident of Great Falls, appeared on charges of distribution and receipt of child pornography.  If convicted of the most serious charges contained in the indictment, WINTERS faces 20 years in prison, $250,000 in fines and lifetime supervised release.  The case was investigated by the U.S. Secret Service, Flathead County Sheriff’s Office and Montana Internet Crimes Against Children Task Force.  PACER Case Reference.  15-58

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system 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 – A 42-year-old Lockwood man was sentenced today to 120 months in federal prison followed by 15 years supervised release, for two counts of coercion and enticement of a minor, two counts of attempted coercion and enticement of a minor, and one count of distribution of child pornography.  Scott James Nichols, a former Billings West High School basketball coach, pleaded guilty to all five counts in June of this year.  U.S. District Court Judge Susan Watters handed down the sentence.

In an Offer of Proof filed by Montana Special Assistant U.S. Attorney Ole Olson, the government stated that if the case had proceeded to trial, the government was prepared to prove that Nichols engaged in multiple Facebook chats with at least four adolescent girls ranging in age from 13 to 15 years old.  Nichols posed as a high-school aged student or an adolescent girl during these chats.  Using an alias, he requested that the girls send sexually explicit pictures of themselves to his cell phone, or, in one case, expose their genitalia to him on a web cam.  Two of the victims were identified and the government was prepared to present their testimony at trial.  The Facebook accounts associated with Nichols’ aliases were accessed from IP addresses associated with the Billings Public Schools and Nichols’ home computer.  The Government would additionally have proven that Nichols sent images of minors engaged in sexually explicit conduct from the same aliases he used to request images from underage girls.  The Government was prepared to present at least 16 emails with attached images.  Finally, the Government would have offered expert testimony that a forensic analysis of multiple electronic devices owned or used by Nichols, including his personal and work computers and his cell phone, were used to engage in the prohibited activity.

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.  Investigative agencies involved in this case include the FBI, the Montana Division of Criminal Investigation, and the Bozeman and Billings Police Departments.

Special Assistant United States Attorney Ole Olson prosecuted this case.  Because there is no parole in the federal system, Nichols will have to serve at least 85% of his sentence before he is released from prison.