District of Montana

BILLINGS-A Washington man, who led a major drug trafficking organization that distributed large amounts of pure methamphetamine in Montana, particularly in the Bakken Region, was sentenced in federal court today for the offense of possession of methamphetamine with intent to distribute. Billings United States District Court Judge Susan P. Watters sentenced Robert Farrell Armstrong, also known as "Dr. Bob," to 240 months in prison, to be followed by a term of 5 years supervised release. Armstrong, 49, is from Moses Lake, Washington.

Assistant United States Attorneys Joseph Thaggard and Brendan McCarthy prosecuted the case, which is a part of Project Safe Bakken. That project is an interagency effort by the United States Attorneys for Montana and North Dakota and the Attorneys General for Montana and North Dakota, as well as a number of federal, state, local, and tribal law enforcement agencies. It designed to fight crime in the Bakken Region of eastern Montana and western North Dakota. The Drug Enforcement Administration (DEA), Montana Division of Criminal Investigations (MDCI), Sidney Police Department, Sweet Grass Sheriff's Department, Montana Highway Patrol, and the United States Border Patrol participated in the investigation of Armstrong and his accomplices as part of "Operation Oil Patch Kids." Thus far, the investigation has resulted in the convictions of 19 individuals for federal crimes related to Armstrong's drug trafficking organization.

The conspiracy at the heart of the charges against Armstrong and his accomplices began in approximately April 2012 and continued until October 2013, when a federal grand jury in Montana returned indictments that charged Armstrong and his associates with federal drug trafficking and firearms offenses. In a court document filed prior to Armstrong's sentencing, Thaggard wrote:

By the summer of 2012, the Defendant was living in Sidney, Montana and distributing large amounts of essentially pure methamphetamine through a network of subordinate drug traffickers. The methamphetamine came from the state of Washington. Sometimes the Defendant and his accomplices obtained the drugs in Washington. At other times, they met the source of supply in places in western Montana, then transported the drugs to Sidney. At other times the drugs were delivered directly to Sidney. Some of the members of the conspiracy carried firearms. Others acted as enforcers who collected drug debts."

Michael Cotter, the United States Attorney for the District of Montana, praised the sentence, stating "This defendant and his associates damaged the social fabric of Montana by distributing large amounts of pure methamphetamine in our state. The sentence handed down to Mr. Armstrong today should send a clear message to those who seek to commit similar crimes that such conduct will not be tolerated. With the dismantling of Mr. Armstrong's drug trafficking organization, Montana is a safer place to live."

Because there is no parole in the federal system, Armstrong will have to serve at least 85% of his sentence before he is released from prison.

The case was investigated by the DEA, MDCI, Sidney Police Department, Sweet Grass County Sheriff's Office, Dawson County Sheriff's Office, and the United States Border Patrol.

Fort Peck Reservation Gets Money for Special Assistant U.S. Attorney

HELENA - On August 26, 2014, Associate Attorney General Tony West announced $3 million dollars in grants from the Office on Violence Against Women (OVW) to increase local and tribal capacity to prosecute crimes of violence against women and provide services to victims of sexual assault, domestic violence and stalking in the Bakken Region of North Dakota and Montana. Of the five groups awarded grants, two are from Montana: Fort Peck Assiniboine and Sioux Tribes and the Montana Coalition Against Domestic and Sexual Violence. The Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation will also receive a three-year $450,000 grant to support the salary, travel, and training costs of a tribal prosecutor, who will be cross-designated to serve as a tribal Special Assistant United States Attorney (SAUSA) in the District of Montana U.S. Attorney's Office.

This news comes at a meaningful time in Montana," said U.S. Attorney Michael Cotter. "Communities in and around the Bakken are witnessing its impact, and this grant provides critical resources, including mental health counseling, legal assistance, and other resources to prevent violence against women and help victims recover."

OVW's Bakken Region special initiative launched in April 2014 and is the first large scale project targeting resources to support the expansion of services to victims of sexual assault, domestic violence and stalking as well as aid the local criminal justice system in responding to these crimes in the Bakken region.

With Justice Department funding, these grantees will be able to enhance responses to domestic violence, dating violence, sexual assault, and stalking, and expand mental health assistance, advocacy, legal assistance, prevention education, sexual assault forensic examiner programs, Sexual Assault Response Teams, and law enforcement training. The grants are part of the Justice Department's ongoing commitment to protecting women from violence and strengthening the capacity of communities to respond to domestic and sexual violence.

MISSOULA - A Bozeman man was sentenced Thursday for embezzling over $300,000 entrusted to him by the Social Security Administration, the Veterans Administration, the U.S. Railroad Retirement Board, and private funds for 36 individuals needing help with their money by reason of age or disability. William Wise, 50, was sentenced to 30 months in prison and 3 years supervised release. In addition, Wise was ordered to pay $369,582 in restitution. He was also ordered to forfeit $369,582 to the United States.

Wise was sentenced in connection with his May 2014 guilty plea to mail fraud.

In a sentencing memorandum, Assistant U.S. Attorney Chad Spraker told the court that in 1994, William Wise started a consulting business, Walking Cross Incorporated (WCI), with his friend John Heintz. In or about 2000, WCI began providing personal financial services for elderly and disabled clients, including those receiving money from the Social Security Administration (SSA), the Veterans Administration, and the U.S. Railroad Retirement Board. The agencies appointed WCI to act as a representative payee to manage federal money for the benefit of those having difficulty managing their own affairs.

In the Fall of 2007, Audrey Reese became a client of WCI, and Wise had a power of attorney over her financial accounts. Reese died in April 2011. Helen Carey, a family friend of Reese, was appointed as Reese's personal representative. In the process of administering Reese's estate, Carey requested bank records from Wise. Wise did not respond to Carey's multiple requests, so she obtained copies of Reese's bank records directly from the bank. Upon reviewing the records, Carey discovered that Wise had written large checks from Reese's account beginning in fall 2007.

Bank records for WCI show that numerous checks, often in amounts of $1000 or $2000, were drawn from Reese's bank account and deposited into the WCI account. The checks did not bear any indication that they were drawn for Reese's personal expenses and were deposited into the WCI account on days when it was nearly overdrawn. Wise also transferred money from other client accounts into the WCI account during times when it was close to being overdrawn.

After his records were seized through a search warrant, Wise was interviewed in April 2012. Wise told investigators that he used WCI funds to pay several credit cards used for personal expenses. Wise admitted that WCI was not an approved fee-for-service organizational representative payee, which would have allowed WCI to charge clients for administering their benefits. Nevertheless, Wise charged fees to SSA beneficiaries at a rate of $35 a month for clients with Supplemental Security Income and $50 a month for clients with Social Security Disability Insurance. He also stated that when clients had negative balances, other SSA beneficiaries' funds would be used to cover the shortfall.

Wise was interviewed again on December 21, 2012. According to Wise, his misuse of fiduciary funds started before 2000, when he "advanced" approximately $2000 from M.H.'s account to WCI. Wise admitted to using money from the WCI account to send his children to summer camp and purchase catering products for a side business. Wise also stated that his personal living expenses were paid out of the WCI account. When clients asked him questions, he would show them balances when in fact the clients had no money. In total, Wise embezzled $369,582 of his clients' money.

Assistant U.S. Attorney Chad Spraker prosecuted the case. The investigation was collaborative effort between the State of Montana Division of Criminal Investigations; Social Security Administration, Office of Inspector General; Federal Bureau of Investigation, Department of Veteran's Affairs, Office of Inspector General; and the U.S. Railroad Retirement Board, Office of Inspector General.

The United States Attorney's Office today 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 Judge Strong in Great Falls on August 21, 2014, and entering pleas of Not Guilty were:

ERIN ELLIOT HOLCOMB, an 18-year-old resident of Great Falls, appeared on charges of possession of an unregistered firearm and transfer of an unregistered firearm. If convicted of the most serious charge contained in the indictment, HOLCOMB faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-59

JANA NYGARD, a 28-year-old resident of Brockton, appeared on charges of embezzlement of government property and theft of mail by an officer or employee. If convicted of the most serious charges contained in the indictment, NYGARD faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Postal Service. PACER Case Reference: 14-60

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 United States Bureau of Alcohol, Tobacco and Firearms (ATF) has awarded a former Montana federal prosecutor the ATF Honor Award for her work on a multi-defendant operation that convicted 22 defendants in federal court in 2012 and 2013. Marcia Hurd, a former United States Assistant Attorney in Billings, Montana, prosecuted a series of cases as part of "Operation Billings Area Criminals (BAC)," a one-year, multi-agency covert investigation focusing on identifying and investigating the criminal activity of violent offenders in the Billings area. BAC was a collaborative effort between the ATF, Drug Enforcement Administration, United States Marshal's Service, Montana Division of Criminal Investigation, Billings Department and Yellowstone County Attorney's Office.

Following several 2009 and 2010 shootings in the Billings area associated with illegal narcotic and firearm activity, the ATF launched operation BAC. ATF personnel planned and executed a long-term undercover operation at a business in Billings. During the operation, undercover personnel infiltrated criminal organizations in the Billings community, stopped planned criminal activity from being commenced, stopped the distribution of methamphetamine, cocaine, marijuana, ecstasy and prescription pills, and took 52 unlawfully-possessed guns off the streets.

In addition to the federal prosecutions, the work of the undercover personnel involved in BAC resulted in the capture of Cleveland Boyer, a suspect in the murder of Danny Valenzuela. Valenzuela was shot outside a downtown Billings convenient store in 2010. Within 24 hours of the homicide, ATF personnel were able to put a plan in place, execute the plan, and take Boyer into custody in Bozeman, Montana. Boyer was charged with the murder of Danny Valenzuela in Yellowstone County District Court. ATF agents assisted in the trial by providing testimony. Boyer was ultimately convicted of the murder and sentenced to life imprisonment.

Operation BAC is a testament to the profound power of agency collaboration," said Michael Cotter, U.S. Attorney in the District of Montana. "Law enforcement identified a dangerous and escalating situation in our community and battled it head on. This award is a distinct honor for Ms. Hurd and the U.S. Attorney's Office for the District of Montana."

She worked tirelessly prosecuting and managing the legal aspects of this long-term and complex investigation," said Ken Bray, Resident Agent in Charge of ATF in Montana. "Ms. Hurd's substantial efforts have made the Billings area a safer place to live. We are proud to present her with this award."

Hurd is currently working in D.C. serving as Counsel to the Director in the Office of Tribal Justice at the U.S. Department of Justice. She received the award during the 18th Annual ATF Awards Ceremony on Thursday, August 21, 2014 at ATF National Headquarters in Washington, DC.

BUTTE - A former Belgrade woman was convicted on August 20, 2014 of five counts of aiding or advising a false tax return. Francis Bercaw faces 3 years in prison, $250,000 in fines, and 1 year supervised release for each count. Bercaw has been released pending sentencing on December 4, 2014, in Missoula.

During a three-day trial at the U.S. District Court in Butte, the government presented evidence that Frances Bercaw prepared false tax returns in order to boost clientele for her tax preparation business, Fran's Tax Service. Clients would patronize her business, and Bercaw would fabricate numbers on the clients' tax returns in order to maximize their refunds. Five former clients testified that Bercaw created false business expenses on their tax returns. Bercaw's scheme was revealed when the clients were audited by the IRS and the Montana Department of Revenue.

Bercaw started Fran's Tax Service in Virginia in 1974 before moving it to Montana in the early 2000s. In 2007, Bercaw's daughter-in-law Michelle Caudle joined her in Bozeman. Bercaw and Caudle consistently prepared false returns in order to increase their clients' refunds. Bercaw would create a Schedule C (Profit or Loss from a Sole Proprietorship) for her clients even though they did not own a business. Bercaw did not review the returns with the taxpayers prior to filing. They eventually discovered the false Schedules C after being audited.

Agents testified they interviewed Bercaw on April 14, 2010. When asked about the returns she prepared, Bercaw stated that all the mileage from the taxpayer's home to his or her work was treated a commuting, and she did not intentionally include commuting mileage as a business expense. According to Bercaw, if a person was trying to make a profit, it would be considered a Schedule C business. It would not be a business if someone was just engaged in a hobby. Bercaw also stated she tried to review all tax returns with her clients upon completion. She also stated that a taxpayer had to provide a receipt to get an expense. In fact, Bercaw previously told Caudle that driving back and forth to work is considered a deductible expense. Bercaw also told Caudle to create a Schedule C if someone hunts or fishes. Bercaw also stated it was okay to create a Schedule C for a hobby.

Caudle previously pleaded guilty to aiding or advising a false tax return and is scheduled to be sentenced on December 4, 2014 in Missoula.

The case was investigated by the Internal Revenue Service, Criminal Investigations Division. Assistant U.S. Attorney Chad Spraker prosecuted the case for the government.

The United States Attorney's Office today 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 Judge Ostby in Billings on August 20, 2014, and entering pleas of Not Guilty were:

PATRICIA ANN WEBB, a 56-year-old resident of Columbus, appeared on charges of wire fraud and filing false tax returns. If convicted of the most serious charges contained in the indictment, WEBB faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation. PACER Case Reference: 14-75

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.

The United States Attorney's Office today 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 Judge Ostby in Billings on August 19, 2014, and entering pleas of Not Guilty were:

SCOTT JAMES NICHOLS, a 42-year-old resident of Lockwood, appeared on charges of sexual exploitation of children, attempted sexual exploitation of children, distribution of child pornography and possession of child pornography. If convicted of the most serious charges contained in the indictment, NICHOLS faces 30 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation and Billings Police Department. PACER Case Reference: 14-81

Appearing before U.S. Magistrate Judge Lynch in Missoula on August 19, 2014, and entering pleas of Not Guilty were:

ROBERT DOUGLAS KORTUM, a 59-year-old resident of Anaconda, appeared on charges of possession with intent to distribute prescription drugs. If convicted of the most serious charges contained in the indictment, KORTUM faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Drug Enforcement Administration and Montana Division of Criminal Investigations. PACER Case Reference: 14-18

Appearing before U.S. Magistrate Judge Strong in Great Falls on August 19, 2014, and entering pleas of Not Guilty were:

JOHN GRIMSON LYON, a 60-year-old resident of Clifton, Virginia, appeared on charges of wire fraud; false claims and theft of government property. If convicted of the most serious charges contained in the indictment, LYON faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by U.S. Department of Interior Office of Inspector General. PACER Case Reference: 14-57

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

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

GREAT FALLS - A former Great Falls dentist has been sentenced to 40 months imprisonment and two years supervised release for tax evasion. James Zander, 63, of Great Falls, Montana was sentenced Friday in federal court in Great Falls, Montana, for criminal conduct resulting in a tax debt of over one million dollars.

In a sentencing memo filed by Assistant U.S. Attorney Chad Spraker, the government told the court that from 2002 to 2010 the defendant, James Zander, evaded his 2001 tax liability through several means, including filing a return filled with zeros and funneling income from his dental practice to a various entities. Zander also obstructed IRS collection efforts by sending notices and demands to government employees and filing a frivolous lawsuit against an IRS Revenue Agent. Zander also failed to file legitimate tax returns for the 2002 to 2009 tax years, incurring a total tax debt of over $1 million.

Zander last filed a legitimate individual income tax return for the 2000 tax year. He then told his tax return preparer that he found a method for not filing his tax returns. The preparer warned Zander on multiple occasions that he should be filing. Zander's tax preparer prepared a 2001 individual income tax return and a Form 1120S for Zander's solely owned corporation, Dental Care of Great Falls. Zander did not file the individual 2001 return but did sign and file the corporate return.

On February 20, 2002, Zander formed Solid Rock Partners, LP; on July 16, 2003, he formed Royal Priesthood Society (RPS), a corporation sole; and on June 10, 2008, he formed American Humanitarian Project another corporation sole. Zander opened bank accounts for RPS, Rock Solid, and American Humanitarian Project. From 2002 to 2009, Zander purchased five parcels of land in the name of Solid Rock Partners and RPS. Zander maintained two bank accounts for Dental Care.

On February 17, 2004, Zander filed a 2001 individual income tax return listing zeros in each section for his income, adjusted gross income, and tax liability. The return requested a $27,131 refund for the amount he had withheld. He also attached a two-page document espousing tax defier arguments. In later years Zander either filed a return filled in with zeros or no return at all.

In July 2004, the IRS sent Zander a letter informing him that his 2001 return was frivolous and warned him of the consequences of not paying his taxes. Based upon the 2001 Form 1120S for Dental Care, a W-2 issued to Zander, and other documents received by the IRS, the IRS assessed Zander's 2001 tax liability at $100,972.81 total liability as of March 10, 2010. In May 2006, the IRS again warned him of the consequences of failing to pay his taxes.

In December 2007 and January 2008, the IRS issued notice of levies to Zander with respect to his bank accounts at Stockman Bank. In response, Zander sent letters to Stockman Bank asserting that the levies were unlawful and he is not subject to taxation. After the IRS collected approximately $2,000 from the levies, Zander closed the accounts.

On October 23, 2009, and November 2, 2009, Zander sent the U.S. Treasury Secretary two $300 million "Private Indemnity Bonds" purporting to offset his pre-existing and future liabilities. The IRS placed liens on Zander's property at the Cascade County Clerk and Recorder's Office. An IRS Revenue Officer delivered three letters to Zander warning of IRS collection for 2001 and 2005. Zander responded with an October 19, 2009, letter espousing tax defier arguments. The following month, Zander sent the officer a document making a claim against Murray for several million dollars.

Zander made approximately $2.9 million in unreported income from 2001 to 2009.

BILLINGS - A Wyoming man who stole over 500 pounds of explosives from the U.S. Forest Service has pleaded guilty to federal charges arising from the theft. Budd Nesius, a 33-year old resident of Wheatland, Wyoming pleaded guilty to possession of stolen explosives. He faces 10 years in prison, $250,000 in fines and 3 years supervised release. Sentencing has been set for December 4, 2014 in Billings before U.S. District Judge Susan Watters. Nesius is being detained pending sentencing.

In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government told the court that in April 2013 in Red Lodge, the defendant knowingly possessed approximately 500 pounds of stolen explosive materials. On the weekend of April 26, 2013, Nesius met a female friend at the Yodeler Motel in Red Lodge to go camping. After picking up the female, the two drove into the mountains. At one point, the two of them split up and she returned to Red Lodge to get food. Nesius continued driving around looking for a place to camp and eventually drove down a dirt road and arrived in the area of a U.S. Forest Service ("USFS") bunker which contained explosives. This explosives magazine/bunker is located several miles west of Red Lodge on USFS property. Nesius saw signs in the immediate vicinity warning of the explosives. Nesius later joined back up with the woman and told her that he intended to break into the bunker he found and steal explosives. Nesius thought he might be able to sell the explosives and make a little money.

The female parked at the bottom of the dirt road leading up to the bunker to be a "lookout." Shortly before dark, Nesius walked down to the bunker and cut the locks with a pair of bolt cutters. Once the door was open, Nesius took one box of explosives and attempted to walk back to where his truck was parked above the bunker. Because the explosives box was heavy, he left the box there and returned to his truck. Nesius then drove down next to the bunker, where he loaded approximately 10 boxes of explosives into the back of his truck.

This amounted to more than 500 pounds of explosives and was enough to fill up the front area of his truck bed. Once he loaded up the stolen explosives, Nesius left the area and met the female back in Red Lodge. Nesius spent that night in a hotel/motel in Red Lodge. Nesius left his truck, loaded with the stolen explosives, backed up against a wall at a local business so that the truck topper would not open. Nesius parked the truck in this manner because he did not want the truck with the stolen explosives near him and because his truck topper did not lock. Nesius also covered the boxes of explosives with a tarp to conceal them. The following morning Nesius transported the stolen explosives from Red Lodge to his hometown of Wheatland, Wyoming. Sometime thereafter, Nesius attempted, on at least one occasion, to sell the stolen explosives.

On or about June 7, 2013, evidence and information led ATF agents to visit Nesius' home in Wheatland, Wyoming where they made contact with Nesius' mother in the late afternoon/evening hours. Nesius was not home at the time. Nesius' mother consented to let the ATF agents search her home and several other buildings on the property. No explosives or evidence of criminal activity was located. The next morning, however, law enforcement received information that a concerned citizen had discovered boxes of explosives abandoned approximately a quarter mile east of Wheatland reservoir. The explosives were approximately 15 feet off the roadway stacked in boxes. The responding sheriff deputies observed that the explosives had USFS stickers on some of the cardboard boxes and had been recently discarded there because the boxes had not been damaged by the weather. An examination of the serial numbers on the recovered explosives determined that these were in fact the same stolen explosives taken from the USFS in Red Lodge, Montana. The location where the explosives were recovered was approximately 35 miles south and west of Nesius' Wheatland, Wyoming residence. After ATF agents visited Nesius' home, his brother called him to tell him about the ATF agent's visit. The defendant then told his brother that there were stolen explosives concealed on their family property in a travel trailer of Highway 34. The brother agreed to drive to the location of the stolen explosives and to load them into his truck to dispose of them. The brother then moved the explosives down Highway 34 and unloaded them on the side of the road in the middle of the night.

This volume of explosives in the wrong hands is an obvious threat to public safety," said Michael Cotter, U.S. Attorney for the District of Montana. "Our office is pleased to have played a role in holding Nesius accountable for his dangerous and intentional decision to steal over 500 pounds of explosives."

We will vigorously pursue those responsible for such acts, dedicating any and all investigative resources needed in order to bring these matters to a successful conclusion," said Ken Bray, ATF's Resident Agent in Charge in Montana. "All the stolen explosives in this case have been recovered. The public can rest assured that this matter has been resolved."

The case was investigated by the Bureau of Alcohol, Tobacco and Firearms.

The United States Attorney's Office today 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 Judge Lynch in Missoula on August 14, and entering pleas of Not Guilty were:

STANLEY FLEMING, a 56-year-old resident of Ronan, appeared on charges of health care fraud. If convicted of the charge contained in the indictment, FLEMING 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: 14-37

KYLLIAN N. LOTT, a 42-year-old resident of Libby, appeared on receipt and possession of child pornography. If convicted of the most serious charges contained in the indictment, LOTT faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 14-38

JENNIFER KAY TRUMBLE, a 28-year-old resident of Kalispell, 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, TRUMBLE faces life in prison, $10,000,000 in fines and at least 5 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 14-35

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

After beating a man to death at an elementary school, Victor Michael Vielle was sentenced in federal court to 170 months in prison followed by five years of supervised release. Vielle was sentenced on August 14, 2014 in Great Falls, before U.S. District Judge Brian M. Morris. As part of the sentence, VIELLE is also required to pay restitution to the family for the victim's funeral expenses.

In April of this year, Vielle entered a guilty plea to Second Degree Murder.

In an Offer of Proof, Assistant U.S. Attorney Ryan Weldon stated that if the case had proceeded to trial, the government would have proven that on October 6, 2012, Vielle and a friend walked to the Browning Elementary School. While at the school, VIELLE beat his friend to death for no apparent reason. The following morning, Vielle was covered in blood and bragged to others about the beating.

At sentencing, the government stated, "Vielle is a dangerous man. He fights, and now the Court is aware that he is capable of killing." The government explained that Vielle's actions are not those of a "friend." Instead, "they are the actions of a man who committed Second Degree Murder."

Because there is no parole in the federal system, the truth in sentencing guidelines mandate that VIELLE will likely serve all of the time imposed by the court. In the federal system, VIELLE 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.

The United States Attorney's Office today 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 Judge Strong in Great Falls on August 8, 2014 and entering pleas of Not Guilty were:

JENNELL MOZEL DOWNING, a 34-year-old resident of Great Falls, 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, DOWNING, 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 Russell Country Drug Task Force. PACER Case Reference: 14-58

KYLE JOEANIEL GOBERT, a 28-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury, assault with a dangerous weapon and discharge of a firearm during a crime of violence. If convicted of the most serious charges contained in the indictment, GOBERT 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: 14-63

WAYNE DELVIN LITTLECROW, a 49-year-old resident of Brockton, appeared on charges of aggravated sexual abuse, abusive sexual contact and sexual abuse of a minor. If convicted of the most serious charges contained in the indictment, LITTLECROW 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: 14-62

BRANDON PETER REDHEAD, 25-year-old resident of Browning, appeared on charges of felony child abuse. If convicted of the charge contained in the indictment, REDHEAD faces 10 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-64

Appearing before U.S. Magistrate Judge Ostby in Billings on August 11, 2014 and entering pleas of Not Guilty were:

LESLIE BEAR COMES OUT, a 32-year-old resident of Lame Deer appeared on charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, possession with intent to distribute methamphetamine on premises where children are present and felony child endangerment. If convicted of the most serious charges contained in the indictment, BEAR COMES OUT faces life in prison, $4,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference: 14-79

DELPHINE MEDICINE HORSE, a 40-year-old resident of Lame Deer appeared on charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, possession with intent to distribute methamphetamine on premises where children are present and felony child endangerment. If convicted of the most serious charges contained in the indictment, MEDICINE HORSE faces life in prison, $4,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference: 14-79

DONNIE DARRELL NOLAN, a 44-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the most serious charge contained in the indictment, NOLAN faces 10 years in prison, $250,000 in prison, and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 114-13

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 - Christopher James Michelotti, a 30-year-old resident of Great Falls, pleaded guilty to possession with intent to distribute methamphetamine and brandishing a firearm in furtherance of a drug trafficking crime. Michelotti's plea could result in a term of life in prison and his sentence can be no less than 12 years. Michelotti is being detained pending his sentencing on November 11, 2014 at 9:00 am in front of U.S. District Judge Brian Morris.

In an Offer of Proof filed by Assistant U.S. Attorney Jessica Betley, the government told the court that during the summer of 2013, the Russell Country Drug Task Force was investigating the defendant for methamphetamine distribution in Great Falls, Montana. The defendant and his co-defendant, Dustin Steele, employed other people in Great Falls to sell methamphetamine for them. Around that time, one man owed the defendant approximately $700.00 for a drug debt.

During the early morning hours of August 20, 2013, the defendant and Steele began to look for the man and the money. Later that evening, the man with the debt agreed to meet the defendant in the parking lot of a restaurant in Great Falls. The man arrived and found the defendant and Steele were both present. They forced the man into a blue Chevy pickup and demanded the money. Steele possessed a handgun, and the defendant wore brass knuckles with a knife.

The defendant and Steele then picked up another man at a local casino who was also responsible for the drug debt. As the defendant and Steele drove through Great Falls, the defendant was yelling that he only picks up a gun when he intends to use it.

As the night progressed, the first man with debt pleaded that he could get the money from his girlfriend. They went by the girlfriend's house, and the man told his girlfriend she only had a half-hour to obtain the money or he and the other man were going to die. Once they left, the girlfriend alerted the police to the kidnapping. The man who had been picked up at the casino was able to escape at this point. Meanwhile, Steele called a friend to come pick them up in order to get a different vehicle. He said they were running from the cops and he had hostages with him.

The friend went to pick up the defendant and Steele, and then drove them to Upper River Road to get a different truck. The defendant and Steele instructed the man to drive the new truck back to the blue Chevy pickup to make sure it was secure. The defendant and Steele had repeatedly said "there was life in the truck," meaning there were drugs and a loaded gun inside the truck. On the way back, the man proceeded to the area of the truck and saw that the police had arrived. He went for help. The police arrested the defendant and Steele.

A search of the 2003 Chevy pickup revealed a backpack with methamphetamine and a stolen gun. Specifically, detectives found a loaded Taurus Judge .45LC/410 Gauge pistol. Four shells were found in the pistol, as well as a box of 410 shotgun shells. Inside the backpack, detectives found 20.3 grams of actual (pure) methamphetamine. Detectives also searched a known stash house later that day used by the defendant and found 6.7 grams of actual (pure) methamphetamine.

The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.

The case was investigated by the Russell Country Drug Task Force.

The United States Attorney's Office announced that on August 6, 2014, a federal jury found Hector Magallon-Lopez, a 25-year-old resident of Toppenish Valley, Washington, and Cristobal Sanchez-Chavez, a 36-year-old resident of Union Gap, Washington, guilty of conspiracy to possess with intent to distribute methamphetamine. Magallon-Lopez was found guilty of an additional count of possession with intent to distribute methamphetamine. Both defendants are being detained pending their sentencing, which has not yet been set by the court.

During the trial, the Government, represented by Assistant United States Attorneys Brendan McCarthy and Tara Elliot, presented evidence that on September 26 and 27, 2012, members of the St. Louis Drug Enforcement Agency (DEA) contacted members of DEA Billings regarding the drug trafficking activities of an organization out of Washington which was trafficking methamphetamine to St. Louis, Missouri. The St. Louis DEA intercepted several phone calls indicating that a Juan Sanchez-Hernandez and a Hector Magallon-Lopez were going to be transporting a large amount of methamphetamine from Washington to Minnesota.

On September 28, 2012, members of the Billings DEA and the Missouri River Drug Task Force (MRDTF) conducted surveillance near Three Forks and identified a vehicle occupied by two Hispanic males. A Montana Highway Patrolman initiated a traffic stop on the vehicle, which was registered to Magallon-Lopez at an address in Toppenish, Washington. The vehicle matched a description of a vehicle that was described on the wire. A wire allows law enforcement, with court approval, to intercept to telephone communications. The location of the vehicle was tracked by pinging the cell phone number from the wire.

During the stop, the Patrolman spoke with Magallon-Lopez, who stated that he was travelling from Washington to Minnesota to find work at a restaurant. Agents then requested a drug sniffing canine to inspect the vehicle. The first canine identified the odor of narcotics, and the car was brought to the Sweet Grass Sheriff's Office to conduct a search. However, agents learned that the canine's certification had lapsed. Therefore, agents requested a second canine to conduct a search. The second canine also indicated to the presence of narcotics in the vehicle.

Agents then applied for and were granted a search warrant to search the vehicle. During the search, agents recovered bags of methamphetamine hidden under the trunk area of the vehicle. The methamphetamine was later sent to the DEA Laboratory and the report indicates that there was approximately 975 grams of pure methamphetamine.

The case was investigated by the Drug Enforcement Administration.

MISSOULA -Whitefish father and son, Scott Joseph Hineman, 60, and Benjamin Scott Hineman, 29, were sentenced on July 31, 2014 for conspiracy to distribute cocaine in the Flathead, Montana area. Both defendants were sentenced after pleading guilty on April 22, 2014. Benjamin Hineman was sentenced to 60 months in prison, 5 years supervised release, and $100 special assessment. Scott Hineman was sentenced to 120 month in prison, 5 years supervised release, and $100 special assessment. In addition, Scott Hineman was ordered to forfeit $75,000 and a Harley Davidson motorcycle.

In an Offer of Proof filed by Assistant U.S. Attorney Tara Elliott,

June of 2012, members of the Northwest Drug Task Force (NWDTF) received information from a confidential informant (CI) indicating that Scott Hineman was distributing cocaine in the Flathead, Montana area.

From June of 2012 through March of 2013, the CI purchased varying amounts of cocaine from Hineman at the direction and under the supervision of members of the NWDTF. On April 9, 2013, the NWDTF obtained and executed a search warrant at Hineman's residence. They recovered 828 grams of cocaine and six firearms from the residence.

Hineman later spoke with members of law enforcement and admitted to traveling to Arizona to purchase kilogram quantities of cocaine and re-distributing the cocaine in the Flathead area.

In March of 2013, members of the Northwest Drug Task Force (NWDTF) received information from a confidential informant (CI) indicating that Ben Hineman was distributing cocaine in the Flathead, Montana area. The CI indicated that he had been purchasing cocaine from Hineman for the previous three years approximately twice a month in 1/4 pound quantities. The CI had just purchased five ounces of cocaine from Hineman and gave members of the NWDTF the two ounces he had remaining.

On March 22, 2013, the CI purchased four ounces of cocaine from Hineman at the direction and under the supervision of members of the NWDTF. The CI also paid Hineman $4500 that was owed from the previous purchase of five ounces of cocaine.

On April 9, 2013, the NWDTF obtained and executed a search warrant at Hineman's residence. They recovered 68 grams of cocaine and one firearm from the residence.

The investigation was conducted by Homeland Security Investigations and the Northwest Drug Task Force.

The United States Attorney's Office announced that Wilbur Harlan "Huck" Sunchild, 49, of Box Elder, Montana, was sentenced to one year in prison, two years supervised release, a special assessment of $100, and restitution of $19,735.77 during a federal court hearing in Great Falls, Montana, on July 24, 2014, before U.S. District Judge Brian M. Morris.

Sunchild was sentenced after a jury convicted him on all three counts of embezzlement from the Rocky Boy's Wellness Center. At trial, Assistant United States Attorneys Ryan G. Weldon and Jessica A. Betley proved that Sunchild created a secretive account at Native American Bank. Sunchild then diverted over $26,000 in funds for the Rocky Boy's Wellness Center to his own personal use, including gambling. Over the course of a three-month period, the account was drained. Bank records reflected that Sunchild withdrew the funds from numerous casinos in Havre, Chinook, and Great Falls. At sentencing, the government stated, "Sunchild's conduct was intentional, deceitful, and it is not his first time attempting to steal money from others for his own benefit."

Montana U.S. Attorney Mike Cotter stated, "This prosecution addresses and underscores the harm that is done to a community when individuals decide to misuse and abuse grant money. The United States Attorney's Office is committed to ensuring federal and tribal money is protected so that it can be applied to the communities it was intended to serve."

Gerald T. Roy, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services (OIG-HHS) stated, "Our office will continue to aggressively pursue those individuals who misuse HHS grant funds for their own personal benefit."

The District Court sentenced Sunchild to a year in federal prison, with two years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Sunchild will serve all of the time imposed by the court. In the federal system, SUNCHILD 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 OIG-HHS and the Federal Bureau of Investigation.

MISSOULA - Jonathan Lee Oliver, a 41-year-old Missoula resident, was sentenced to 100 months in prison for diverting money he received from customers in eastern Montana, North Dakota, and other places, and using the money to buy himself a house, several vehicles, two jet skis, a luxury motor home, a diamond engagement ring, and various other items.

On February 25, 2014, Oliver pleaded guilty to wire fraud, money laundering and structuring. In an Offer of Proof filed by Assistant U.S. Timothy J. Racicot, the government told the court that in the Fall of 2010, Oliver rented an office and warehouse space and began conducting business under the fake name of Jon Walker. He solicited payments from several victims for the construction of steel buildings, primarily in eastern Montana and North Dakota, including in the area known as the Bakken. He entered into contracts with the victims, received millions of dollars in advance payments, and completed only one steel building. Rather than build the structures, Oliver used a substantial amount of the victims' money to buy personal assets, including a down payment on a house, several vehicles, two jet skis, a luxury motor home, a diamond engagement ring, and various other items. On multiple occasions, Oliver directed his employees to tell victims that a certain phase of the construction of their building was completed in order to induce the victims to send additional installment payments, when in fact the phase had not been completed and Oliver's business lacked the materials necessary to complete the project because so many of the funds had been diverted by Oliver for personal expenditures.

The counts that Oliver pleaded to involve money he took from a victim totaling over $130,000 and Oliver's purchase of a brand-new Subaru Tribeca Limited for $33,950. Oliver also pleaded guilty to withdrawing $9,950 in cash from the bank to avoid the bank's currency transaction reporting requirements.

The Bakken is a ripe environment for fraudulent activity and Jonathan Lee Oliver saw that. Project Safe Bakken has and will continue to prosecute fraudsters like Oliver, whose greed directly harms citizens seeking to invest and grow their money in legitimate business ventures," said Michael Cotter, U.S. Attorney for the District of Montana.

At sentencing, U.S. District Court Judge Donald Molloy entered a money judgment against Oliver in the amount of $6,468,186.33. The money judgment represents the forfeiture of substitute assets and corresponds to Oliver's ill-gotten gains. The judge also sentenced Oliver to three years supervised release following his prison sentence.

The prosecution was part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota. The investigation in this case was conducted by Federal Bureau of Investigation and the Internal Revenue Service.

GREAT FALLS) The United States Attorney's Office announced that RHONDA LEE WRIGHT, 48, of Richland, Washington, was sentenced to a term of 110 months' imprisonment, to be followed by five years on supervised release, on June 19, 2014, before U.S. District Judge Brian M. Morris. Wright was sentenced in connection with her March 18, 2014, guilty plea to possession with intent to distribute methamphetamine.

Assistant U.S. Attorney Jessica Betley told the Court in an Offer of Proof that in early February 2012, Great Falls law enforcement received information that a man from the Tri-Cities area in Washington state wanted to sell methamphetamine in Montana where he could obtain a greater profit. Law enforcement introduced an undercover agent into the investigation who learned the man and his wife, Rhonda Wright, the defendant, were willing and able to distribute methamphetamine to purchasers in Great Falls. On February 9, 2012, Wright told the agent that she and her husband would bring methamphetamine to Great Falls and asked for a $2000 up-front payment on a $5000 transaction. She asked that it be sent by "money gram" and provided her full name, the appropriate store, and zip code.

On February 11, 2012, the defendant and her husband traveled to Great Falls where they met the undercover agent. Wright produced a bread crumb container and unscrewed the bottom of the container, revealing a plastic baggie containing methamphetamine. The undercover agent paid an additional $30000 and took the methamphetamine. The methamphetamine from this transaction was sent to the DEA Laboratory. The lab concluded this substance contained 55.3 grams of actual (pure) methamphetamine.

The defendant, her husband, and the undercover agent agreed to meet again in Great Falls on February 14, 2012. After being confronted by law enforcement, agents searched the defendant's car. The largest amount of methamphetamine was concealed in a lemonade can with a hidden compartment under a false top. The DEA laboratory tested this methamphetamine and found in contained 99.9 grams of actual methamphetamine. Agents found an additional 2.9 grams of actual methamphetamine in a Pringles can with a false bottom.

The term "actual" methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.

This investigation was conducted by the Great Falls Police Department and the United States Department of Homeland Security, Homeland Security Investigations.

The United States Attorney's Office today 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 Judge Lynch in Missoula on June 24, 2014 and entering pleas of Not Guilty were:

• NYA BRACKETT, a 41-year-old resident of Missoula, appeared on charges of wire fraud, theft of government property and false statements. If convicted of the most serious charges contained in the indictment, BRACKETT faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Social Security Administration Office of Inspector General. PACER Case Reference: 14-34

• RY MARK FOX, a 47-year-old resident of Hamilton, appeared on charges of false statements, use of immigration documents by fraud. If convicted of the most serious charge contained in the indictment, FOX faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 14-31

Appearing before U.S. Magistrate Judge Strong in Great Falls on June 24, 2014 and entering pleas of Not Guilty were:

• HN CHANCE HOULE, a 50-year-old resident of Box Elder, appeared on charges of bribery and obstruction of justice. If convicted of the most serious charges contained in the indictment, HOULE faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by U.S. Department of Interior Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service and Environmental Protection Agency. PACER Case Reference: 14-45

• HN CHANCE HOULE, a 50-year-old resident of Box Elder, appeared on charges of conspiracy to embezzle tribal funds, theft from an Indian tribal organization and theft. If convicted of the most serious charges contained in the indictment, HOULE faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by U.S. Department of Interior Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service and Environmental Protection Agency. PACER Case Reference: 14-49

• HN CHANCE HOULE, a 50-year-old resident of Box Elder, appeared on charges of bribery and obstruction of justice. If convicted of the most serious charges contained in the indictment, HOULE faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by U.S. Department of Interior Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service and Environmental Protection Agency. PACER Case Reference: 14-45

• HN CHANCE HOULE, a 50-year-old resident of Box Elder, appeared on charges of conspiracy to embezzle money from an Indian tribal organization, theft from an Indian tribal organization, bribery, theft and obstruction of justice. If convicted of the most serious charges contained in the indictment, HOULE faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by U.S. Department of Interior Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service and Environmental Protection Agency. PACER Case Reference: 14-50

• CHAEL A. MORRIS, 39-year-old resident of Choteau, appeared on charges of conversion of secured property and federal agricultural loan fraud. If convicted of the most serious charges contained in the indictment, MORRIS faces 5 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by U.S. Department of Agriculture Office of Inspector General.. PACER Case Reference: 14-43

• UCE HAROLD SUNCHILD, a 69-year-old resident of Box Elder, appeared on charges of conspiracy to embezzle money from an Indian tribal organization, theft from a Indian tribal organization, theft from Indian tribal government receiving federal funds. If convicted of the most serious charges contained in the indictment, SUNCHILD faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by U.S. Department of Interior Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service and Environmental Protection Agency. PACER Case Reference: 14-47

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.

GREAT FALLS -- The United States Attorney's Office announced today that former officials of the Blackfeet Tribe's Po'Ka Project, a multi-million dollar federally funded effort to address the needs of troubled youth on the reservation, were sentenced in federal court in Great Falls by U.S. District Court Judge Brian M. Morris.

FRANCIS KAY ONSTAD, 61, of Valier, the former Director of the Po'Ka Program, was sentenced to 38 months imprisonment, 3 years supervised release and $1,000,000 in restitution. Onstad had previously entered guilty pleas to Conspiracy to defraud the United States, Conspiracy to File False Claims against the United States, Theft from an Indian Tribal Government Receiving Federal Funding, and Tax Evasion.

DELYLE SHANNY AUGARE, 58, of Browning, the former Assistant Director of the Po'Ka Program, was sentenced to 44 months imprisonment, 3 years supervised release and $1,000,000 in restitution. Augare had previously entered guilty pleas to Conspiracy to defraud the United States, Conspiracy to File False Claims against the United States, Theft from an Indian Tribal Government Receiving Federal Funding, and Tax Evasion.

KATHERYN ELIZABETH SHERMAN, 67, of Browning, a former Po'Ka staffer who handled the In-Kind invoicing for the program starting in late 2010, was sentenced to 12 months imprisonment, 3 years supervised release, and $250,000 in restitution. Sherman had entered a guilty plea to a charge of Conspiracy to Submit False Claims against the United States.

DOROTHY MAY STILL SMOKING, 64, of Browning, was sentenced to 30 months' probation and $100,000 in restitution. Still Smoking had entered a guilty plea to a charge of Conspiracy to Submit False Claims against the United States.

Codefendant Charlotte New Breast entered a guilty plea and was sentenced in 2013. Dr. Gary Conti, formerly of Sand Springs, Oklahoma and a professor at Oklahoma State University, and now residing in Three Forks, was tried and convicted of bankruptcy fraud in March of 2014. That jury was unable to reach a unanimous verdict on 27 other counts and a mistrial was declared. In May of 2014, Conti was retried on the mistried counts and found guilty of 26 of 27 counts of corruption related offenses, including conspiracy, wire fraud, embezzlement and money laundering.

The Blackfeet Po'Ka Project was developed to help troubled Native American youth. Po'Ka was funded by a federal grant from 2005 through 2011 by the Substance Abuse and Mental Health Services Administration (SAMHSA) of the Department of Health and Human Services. Beginning in 2005 with a $1,000,000 federal disbursement, the grant ultimately became a $9.3 million program over a six year period (2005-2011). The Po'Ka Project was designed to become a self-sufficient program - entirely supported by the Tribe - by the end of the grant period. To achieve the goal of final self-sufficiency, the Tribe was required to provide in-kind or matching contributions to continue to secure federal payments with the idea that as federal participation declined tribal participation and investment would rise to fill the funding void left by the absence of federal dollars. It was the intent of the parties and SAMHSA that the Po'Ka Project would survive on its own once federal funding was no longer forthcoming.

An in-kind contribution is a non-cash contribution provided by non-federal third parties in support of the project funded by the grant, and its objectives. Third party in-kind contributions may be in the form of real property, equipment, supplies and other expendable property, and the value of goods and services directly benefitting and specifically identifiable to the project or program.

Only if Po'Ka met the in-kind contribution targets could they receive the maximum amount of federal money from the grant. Consistent with the sustainability objective of the grant, the Tribe's in-kind contribution requirement was the highest in the later years of the grant. The Blackfeet Tribe was required to provide $7.0 million of in-kind contributions from FYs 2009 through 2011. That created an environment where the appearance of substantial in-kind contributions became paramount if the maximum flow of federal money from the grant was going to continue.

However, the in-kind commitment could never be honestly met, so the conspirators began making up facts and documents to try and satisfy SAMHSA and the auditors that the in-kind contributions represented on their reports to SAMHSA were legitimate. They did so by inflating the figures related to in-kind contributions, assigning values to non-existent and illegitimate "contributions," and manufacturing fraudulent invoices and records to support fictional or inflated contributions. The misrepresentations as to in-kind amounts were made in monthly reports to SAMHSA and the documents were generated to placate auditors conducting a required annual audit of the Tribe's operations. These annual audits are required of tribe's accepting federal grant funds to insure that the grant funds are being used for their intended purpose and that the requirements of the contract agreement are being met. If auditors make negative findings, those findings can result in action by the federal agency to rescind the contract, demand repayment, or make an offset, where the government deducts money from future payments.

Several witnesses, whose names were used as in-kind contributors, denied preparing or signing the invoice and denied contributing time or goods to the Po'Ka Project, at least in the amount claimed.

Based on email evidence and the statements of cooperating witnesses, Onstad, Augare, and Still Smoking, along with others, conspired to make the false representations as to the in-kind contributions made to the Po'Ka Project, and then actively managed the creation of false documentation to cover the representations so that the auditors would not question the contributions and the federal money would continue flowing unabated. The false representations were in effect false claims that resulted in the expenditure of federal grant money

An audit report from the Department of Health and Human Services, Office of Inspector General, determined that $4.6 million in claims for grant payments paid to the Tribe on the basis of Po'Ka' s in-kind contribution are unsupported, inflated, or completely falsified.

Onstad and Augare embezzled from the program in a myriad of relatively minor ways - travel fraud, misuse of Po'Ka credit cards, exorbitant claims of overtime, etc. - but the most significant embezzlement came in the agreement they appeared to reach with the grant's national evaluator. Certain federal grants require the participation of a national evaluator; an outside observer whose job is to monitor the progress of the project. Onstad and Augare reached an agreement with the national evaluator whereby they would approve significant payments to the evaluator who would in turn kick back a sizable portion of what was provided to him. Between August 2008 and August 2011, Onstad and Augare approved over $475,000 in Po'Ka grant monies for the national evaluator, then doing business under an alias business name. In turn, between August 2008, and September 2011, the national evaluator transferred $231,550 to the Child Family Advocacy Center (commonly referred to as the Child Family Advocacy Fund or CFAF) bank accounts at the Wells Fargo Bank in Cut Bank, Montana.

Between September 2008 and September 2011, Onstad and Augare withdrew $225,482 from the CFAF accounts. Much of that money went into their personal accounts at Stockman Bank and from those accounts much was spent on gambling and travel.

In 2009, Onstad and Augare both filed federal income tax returns for the calendar year 2008 in which they claimed a certain amount of taxable income based on their salaries from the Po'Ka Program. However, they had also taken significant sums from the CFAF accounts, all of which constituted unreported income. By concealing that income from the Internal Revenue Service, Onstad and Augare paid approximately half of what was owed to the IRS.

The case was pursued by the Federal Bureau of Investigation and the Department of Health and Human Services' Office of Inspector General. The FBI and the IG also received substantial assistance from the Internal Revenue Service's Criminal Investigation Division.

U.S. Attorney Mike Cotter lauded the work of the FBI and the Inspector General's Office in the Po'Ka case as well as the myriad other cases investigated and prosecuted since the Guardians Project was made public in 2013. He commented when guilty pleas were entered that:

Rarely does government produce such an effective anti-corruption team as has been created by the agents of the Guardians Project. Abandoning the traditional model of "You work your case and I'll work mine", these agencies have committed themselves to mutual cooperation. Working closely together-providing each other with time, resources, and expertise-has made these investigators the champions of Indian Country communities eager to rid themselves of corruption and the abuses of trust and power."

GREAT FALLS - The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on June 23, 2014, before U.S. District Judge Brian M. Morris, Michael Connelly, Sr., 57, of Browning, was sentenced to a term of 24 months imprisonment, three years supervised release, and a special assessment of $125.

U.S. Attorney Mike Cotter said the conviction and sentence of Blackfeet Law Enforcement Officer Connelly represents the office's dedication to ensuring that no defendant escapes justice. "Society bestows upon law enforcement officers a tremendous amount of power and trust. Officers are typically the best stock in which to invest such tools. But sometimes an officer abuses the power that society has so generously and graciously given to him. When that unfortunate step is taken, the justice system must ensure that the officer is prosecuted, punished, and no longer able to misuse his position."

Officer Connelly was sentenced for receiving oral sex in his patrol vehicle while armed and on duty. The victim reported that Officer Connelly took her to a secluded place and threatened her with jail if she did not provide oral sex. When interviewed about the encounter, Officer Connelly lied to the FBI, telling agents that he never told the victim that she could either provide oral sex or go to jail. In a second interview, Officer Connelly admitted that he made such a statement.

A jury convicted Officer Connelly of a Civil Rights Violation and False Statement to a Federal Agent. In a Sentencing Memorandum, Assistant U.S. Attorney Ryan G. Weldon stated "Officer Connelly was a law enforcement officer and tribal prosecutor for decades. He knows that he cannot extract oral sex from passengers in his patrol vehicle, abuse his power as a law enforcement officer, or lie to the FBI. Knowing all of those things, Officer Connelly still committed the crimes."

The Court sentenced Officer Connelly to 24 months of imprisonment, with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Connelly will likely serve all of the time imposed by the court. In the federal system, Connelly 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 investigation was conducted by the Federal Bureau of Investigation.

The United States Attorney's Office announced that SHAWN JOSEPH AUGARE, 38, of Browning, Montana, was sentenced to a term of 9 months imprisonment, three years supervised release, a special assessment of $100, and restitution of $6,460.14 during a federal court hearing in Great Falls, Montana, on May 23, 2014, before U.S. District Judge Brian M. Morris.

AUGARE was sentenced in connection with his February 11, 2013, guilty plea to bank fraud. In an Offer of Proof, Assistant U.S. Attorney Ryan Weldon stated it would have proved that AUGARE cashed and deposited forged checks from the Child and Family Advocacy Center account that were drawn from Wells Fargo Bank and Stockman Bank. The Child and Family Advocacy Center (CFAC) account was an account controlled by AUGARE's father, Delyle Shanny Augare and Francis Onstad, the Directors of the Po'Ka Project. Prosecutors alleged that over $230,000 was embezzled from the Po'Ka grant and laundered through the CFAC account between August 2008 and September 2011 with the assistance of Dr. Gary Conti, who was convicted in May 2014 of 26 counts related to corruption and theft from the Po'Ka program.

AUGARE attempted to take $10,300 during the commission of the bank fraud. When interviewed by the Federal Bureau of Investigation, AUGARE admitted that he stole the money.

At sentencing, the government stated, "Augare is old enough to know better. . . [H]e has been unable to control his propensity to steal and defraud others. It is now up to the Court to ensure that Augare is properly punished and that he is deterred from continually engaging in fraudulent activity."

The District Court sentenced AUGARE to a guideline sentence of 9 months imprisonment, with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that AUGARE will serve all of the time imposed by the court.

This case was investigated by the Federal Bureau of Investigation.

The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on June 6, 2014, before U.S. District Judge Brian M. Morris, KEVIN J. DEVEREAUX, 50, of Poplar, was sentenced to a term of 20 years imprisonment and five years supervised release for the rape of a woman on the Fort Peck Indian reservation. Devereaux was sentenced for aggravated sexual assault after two earlier attempts to convict Devereaux for other sex crimes against other victims ended in acquittal or mistrial.

Following a three-day trial in Great Falls, a jury convicted Devereaux of raping a woman on the Fort Peck Reservation, burglarizing her home, and severely assaulting her in front of her 7-year-old granddaughter. The rape occurred in 2009, when Devereaux appeared in the victim's house as she was asleep on the sofa with her two grandchildren, ages two and eight months. Devereaux dragged her to the bedroom, where he raped her. He then fled the house. Days after the offense occurred, Devereaux intimidated the victim into recanting her story. In 2013, Devereaux broke into her bedroom where she was sleeping with her seven-year-old granddaughter and beat her in the head multiple times. When the child pleaded with him to stop, Devereaux screamed at her "I'm going to kill your grandma!" The victim was able to escape and call 911. During the investigation of the second offense, the Federal Bureau of Investigation interviewed the victim, at which point she disclosed Devereaux had intimidated her into changing her story regarding the rape. Due to advancements in the law, the United States was still able to prosecute the rape offense years later, when the truth came out about the circumstances surrounding the victim's statements about the rape.

Devereaux was referred to as a "serial predator" by prosecutors. Deveraux was indicted by the federal grand jury in 2012 on two counts aggravated sexual abuse and one count of abusive sexual conduct. A jury acquitted Devereaux of those charges. Devereaux was again indicted by the federal grand jury for aggravated sexual abuse of another woman, the burglary of her home, and assault with a dangerous weapon. In January 2013, a trial jury acquitted Devereaux of burglary and assault with a dangerous weapon, and could not reach a unanimous verdict on the sexual assault charge. The court declared a mistrial on that charge. Prosecutors have indicated their intention to re-try Devereaux for the sexual assault of the second victim and Devereaux has appealed, claiming double jeopardy.

The Court sentenced Devereaux to 20 years of imprisonment, with five years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Devereaux will likely serve all of the time imposed by the court. In the federal system, Devereaux does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.

This investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.

The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on June 6, 2014, before U.S. District Judge Brian M. Morris, DAVID V. CHASER, of the Fort Peck Reservation, was sentenced to a term of 54 months imprisonment, three years supervised release, and a special assessment of $200.

Chaser was charged with and pleaded to three counts of assault after hitting a man over the head with a glass bottle at a house, then taking its jagged remains and stabbing a woman in the face and neck with it. The injuries barely missed her jugular vein and an important artery, which could have led to massive blood loss or death. Chaser then ran to a nearby gas station where he reported to law enforcement that he had just stabbed someone.

The Court sentenced Chaser to 54 months of imprisonment, with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Chaser will likely serve all of the time imposed by the court. In the federal system, Chaser 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 investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.

The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on June 6, 2014, before U.S. District Judge Brian M. Morris, KEVIN J. DEVEREAUX, 50, of Poplar, was sentenced to a term of 20 years imprisonment, five years supervised release, and a special assessment of $300.

Following a three-day trial in Great Falls, a jury convicted Devereaux of raping a woman on the Fort Peck Reservation, burglarizing her home, and severely assaulting her in front of her 7-year-old granddaughter. The rape occurred in 2009, when Devereaux appeared in the victim's house as she was asleep on the sofa with her two grandchildren, ages two and eight months. Devereaux dragged her to the bedroom, where he raped her. He then fled the house. Days after the offense occurred, Devereaux intimidated the victim into recanting her story. In 2013, Devereaux broke into her bedroom where she was sleeping with her seven-year-old granddaughter and beat her in the head multiple times. When the child pleaded with him to stop, Devereaux screamed at her "I'm going to kill your grandma!" The victim was able to escape and call 911. During the investigation of the second offense, the Federal Bureau of Investigation interviewed the victim, at which point she disclosed Devereaux had intimidated her into changing her story regarding the rape. Due to advancements in the law, the United States was still able to prosecute the rape offense years later, when the truth came out about the circumstances surrounding the victim's statements about the rape.

The Court sentenced Devereaux to 20 years of imprisonment, with five years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Devereaux will likely serve all of the time imposed by the court. In the federal system, Devereaux does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.

This investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.

The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on June 6, 2014, before U.S. District Judge Brian M. Morris, ROBET LEWIS BURSHIA, of Lame Deer, was sentenced to a term of 12 years imprisonment, three years supervised release, and a special assessment of $400.

Following trial in Great Falls, a jury convicted BURHSIA on all three counts charged in the indictment: three counts assault with a dangerous weapon and one count assault resulting in serious bodily injury. BURSHIA was charged after stabbing three women at a Fort Peck residence. The group was eating dinner out in the kitchen area, when BURSHIA suddenly pulled a knife out of his hoodie pocket and stabbed one of the women in the abdomen, claiming the group had taken his "jug" and methamphetamine. When the woman ran away, Burshia chased her. Another woman threw herself in front of the first victim and was stabbed by Burshia in the arm. When the two women ran to hide in the garage, BURSHIA went to another room where he stabbed a third woman, who was sleeping with her young children. Burshia then fled the residence, screaming that he should have killed them.

The Court sentenced Devereaux to 12 years of imprisonment, with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Burshia will likely serve all of the time imposed by the court. In the federal system, Burshia 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 investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.

The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on June 6, 2014, before U.S. District Judge Brian M. Morris, DAVID V. CHASER, of the Fort Peck Reservation, was sentenced to a term of 54 months imprisonment, three years supervised release, and a special assessment of $200.

Chaser was charged with and pleaded to three counts of assault after hitting a man over the head with a glass bottle at a house, then taking its jagged remains and stabbing a woman in the face and neck with it. The injuries barely missed her jugular vein and an important artery, which could have led to massive blood loss or death. Chaser then ran to a nearby gas station where he reported to law enforcement that he had just stabbed someone.

The Court sentenced Chaser to 54 months of imprisonment, with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Chaser will likely serve all of the time imposed by the court. In the federal system, Chaser 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 investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.

The United States Attorney's Office announced that ZACKARIA JULY CRAWFORD, 22, of Browning, Montana, was sentenced to a term of 30 months imprisonment, three years supervised release, and a special assessment of $100 during a federal court hearing in Great Falls, Montana, on March 18, 2014, before U.S. District Judge Brian Morris.

This is the first case in the District of Montana that a defendant has been sentenced for Strangulation since the inception of the statute. It is also one of the first such cases in the entire country.

U.S. Attorney Mike Cotter said the conviction and sentence of CRAWFORD represents the office's dedication to working with reservations to ensure that Native American women and families are protected from domestic violence. "The strangulation statute and VAWA offers the U.S. Attorney's Office another tool to fight crimes of domestic violence that are inflicted against women and children on Indian reservations. Victims of one episode of strangulation are six times more likely to be a victim of attempted homicide by the same partner. These same victims are seven times more likely to actually die at the hands of their loved ones. It is this type of violence that tears apart families, damages children, and can have lethal consequences. The ability to now charge crimes of strangulation will help in stopping violence before it escalates any further."

On March 7, 2013, President Obama signed into law the reauthorization of the Violence Against Women Act (VAWA). This law contains provisions that significantly improve the safety of Native women and that importantly allow federal and tribal law enforcement agencies to hold more perpetrators of domestic violence accountable for their crimes. Many of these critical provisions were drawn from the U.S. Department of Justice's July 2011 proposal for new Federal legislation to combat violence against native women.

The tribal provisions in VAWA address three significant legal gaps by: (1) recognizing certain tribes' power to exercise concurrent criminal jurisdiction over domestic violence cases, regardless of whether the defendant is Indian or non-Indian; (2) clarifying that tribal courts have full civil jurisdiction to enforce protection orders involving any person, Indian or non-Indian; and (3) creating new federal statutes to address crimes of violence, such as strangulation, committed against a spouse or intimate partner and providing more robust federal sentences for certain acts of domestic violence in Indian country.

These steps have been taken, at least in part, because a recent Center for Disease Control and Prevention survey found that 46% of Native American women have experienced rape, physical violence, or stalking by an intimate partner in their lifetime.

CRAWFORD was indicted on December of 2013 by a federal grand jury. He filed a motion to change his plea in January of 2014. That plea was accepted by Judge Morris on March 14, 2014.

In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved that CRAWFORD strangled his victim until she lost consciousness and urinated in her pants. The beating continued for approximately twenty minutes. The victim ultimately escaped the house, but CRAWFORD jumped onto the vehicle hood as the victim drove away. CRAWFORD eventually fell off the hood, and the victim went to the hospital where she was treated for strangulation. At sentencing, Weldon stated, "Deterrence of these crimes in society, as well as the Blackfeet Indian Reservation, is critical. To deter these crimes will help to save future lives, properly punish defendants who engage in such conduct, will protect women from future abuse by the defendant, and will help end the cycle of violence that currently exists in and around Montana."

Unfortunately, the impacts of strangulation do not only exist in Montana. They are widespread across the United States. Victims of strangulation have testified before the United States Sentencing Commission, explaining the circumstances behind strangulation and the impacts that such acts leave. One victim explained her experience as follows:

I write to provide the Commission my experience as a crime victim who experienced strangling and suffocation.

After two years of marriage filled with verbal abuse, shoving, and other physical abuse, one night my husband threw me down on the bed and began strangling me. Unlike any other way that he had attacked me in the past, this horror instantly sent me to a level of terror and trauma I had never known in my whole life. I knew I was seconds away from dying. This was a fear unlike anything I had ever known. Everything was suddenly different in my whole consciousness. I was going to die. The unthinking rage in his eyes made that clear.

He had even pulled a gun on me once, slapped me black and blue, but nothing felt as scary as this. There was that first part of the attack that so utterly terrified me as I anticipated my imminent death, panicking with what I could do. The fighting for freedom, the pain of his hands around my neck. Then as I began to suffocate, I could feel myself dying. Gasping for breath, desperate for air. Feeling myself slipping away, so fully conscious and hyper aware. And watching him-how personal the rage was. How he was using his bare hands to kill me-it was so intimate, he was so close to me. His skin on my skin. Like drowning, trapped in the water beneath the ice, the panic, the desperation to breathe, yet not being able to.

He felt me going limp and thankfully let go. I coughed myself back to life. What I learned in the days and the weeks after was the on-going and constant re-traumatization of the aftermath of the strangulation. For weeks, every time I moved my head, I was grabbed with pain. I couldn't sleep, I couldn't eat or drink well. Every move was a painful reminder. I had to take time off work without pay to cover up the worst of it, then I had to lie to deal with answering questions about the bruises, etc., at my teaching job. The aftermath was a constant reminder of what had happened. [Twenty] years later it is as vivid to me as any moment of my life.

The neck is so easy to grab, so vulnerable, so vital to all life, connecting breathing and heart to mind. The viciousness and harm of this terroristic act is far different than mere broken bone or a physical injury. I have suffered the range of these injuries and

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

The CRAWFORD investigation was conducted by the Federal Bureau of Investigation.

The United States Attorney's Office announced that TYRONE DEAN WELCH, 27, of Poplar, was sentenced to a term of 46 months imprisonment and three years supervised release during a federal court session in Great Falls, Montana, on May 23, 2014, before U.S. District Judge Brian M. Morris, after his conviction for involuntary manslaughter and assault.

WELCH admitted to crashing a car while under the influence of drugs, which resulted in the death of one of his passengers and serious bodily injury to the two others. Assistant U.S. Attorney Laura B. Weiss told the Court that Welch had been using methamphetamine and had not slept in several days at the time of the wreck. Welch admitted to falling asleep at the wheel because he was coming down off methamphetamine. The car drifted across the road, struck a reflector pole, rolled several times, and landed in a ditch. One victim was found dead at the scene. The other two were severely injured as a result of the crash. Welch pleaded guilty to Involuntary Manslaughter and two counts of Assault Resulting in Serious Bodily Injury. The Court sentenced Welch to 46 months of imprisonment on each count to run concurrently, with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Welch will likely serve all of the time imposed by the court. In the federal system, Welch 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 investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice Criminal Investigation.

The United States Attorney's Office announced that on May 22, 2014, a federal jury found GARY JOSEPH CONTI, 68, of Three Forks, guilty on 26 of 27 felony charges relating to his role in deceiving the government in an "in-kind" scheme that auditors have determined resulted in at least $4.6 million in fraud against a grant designed to help troubled and at-risk youth on the Blackfeet Indian Reservation.

The Blackfeet Po'ka Project was the result of a 2005 grant application from the Blackfeet Tribe and designed to provide a comprehensive support structure to assist troubled and at-risk youth. Po'ka was funded by a federal grant from 2005 through 2011. Po'ka received its funding from the Substance Abuse and Mental Health Services Administration (SAMHSA) of the Department of Health and Human Services through a grant relationship between SAMHSA and the Blackfeet Tribe. The Tribe in turn operated the Po'Ka Project as a tribal enterprise. Managers and staff were tribal employees subject to tribal employment rules and regulations, with oversight from the Blackfeet Tribal Business Council. Beginning in 2005 with a $1,000,000 federal disbursement, the grant ultimately became a $9.3 million program over a six year period (2005-2011). The funding arc started with the $1,000,000 award, rose to $2,000,000 per year for two years (2007, 2008) and then tapered off to $1,000,000 in 2010 and $300,000 in 2011.

According to the SAMHSA grant synopsis, the Po'Ka Project - also known as Blackfeet Children System of Care - was a reservation-wide children's mental health system. "Po'Ka goals are: (1) to implement the systems of care philosophy at the local Tribal level; and (2) to identify, plan for, or enhance coordination and facilitate a wraparound process enabling children with SED (Severe Emotional Disorders) and their families to access services to meet their needs."

Francis Onstad served as the Director of Po'Ka and Delyle Shanny Augare as the Assistant Director. Dr. Gary Conti, then a full professor at Oklahoma State University in Stillwater, Oklahoma, served as the national evaluator for the grant and Dr. Dorothy Still Smoking--who had received her doctorate from Montana State University when Conti was a professor in Bozeman during the 1990s-served as the local evaluator. Still Smoking, who was a full time employee with the Blackfeet Housing Authority, provided her services as an independent contractor for Conti and his business, Learning Associates, and was paid for her services through Conti. Conti's services were also billed and paid for through Learning Associates' contract with the Po'Ka Project.

Liz Sherman served as the In-Kind Coordinator for Po'Ka and Charlotte New Breast was the administrative assistant for Po'Ka.

Onstad, Augare, Still Smoking, Sherman, and New Breast were named in the 37-count indictment handed down by the Grand Jury in July 2013, but all reached plea agreements with the United States and plead guilty to charges in the indictment. There sentencing is scheduled for June 2014.

The In-Kind Contribution Requirement And The False Claims Conspiracy

The SAMSHA grant required that the Blackfeet Tribe make the Po'Ka Program self-sufficient; a completely tribal program - entirely supported by the Tribe - by the end of the grant period. The grant required that the Tribe provide a certain amount of funding. "A requirement contained in certain legislation, regulations, or administrative policies that a recipient must maintain a specified level of financial effort in the health area for which Federal funds will be provided in order to receive Federal grant funds." (Emphasis added) Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (SED), CMHS Child Mental Health Service Initiative Number: 93.104. To achieve the goal of final self-sufficiency, the Tribe was required to provide matching contributions-either cash or in-kind-to continue to secure federal payments with the idea that as federal participation declined, tribal participation would rise to fill the funding void left by the absence of federal funds. It was the intent of the parties and SAMHSA that the Po'Ka Project would survive on its own once federal funding was no longer forthcoming.

An in-kind contribution is a non-cash contribution provided by non-federal third parties in support of the project funded by the grant, and its objectives. Third party in-kind contributions may be in the form of real property, equipment, supplies and other expendable property, and the value of goods and services directly benefitting and specifically identifiable to the project or program.

A key component of the grant award was the funding arc; the ratio of federal money to in-kind contributions. Only if Po'Ka met the in-kind contribution targets could they receive the maximum amount of federal money from the grant. Consistent with the sustainability objective of the grant, the Tribe's in-kind contribution requirement was the highest in the later years of the grant. The Blackfeet Tribe was required to provide $7.0 million of in-kind contributions from FYs 2009 through 2011. That created an environment where the appearance of substantial in-kind contributions became paramount if the maximum flow of federal money from the grant was going to continue.

Evidence produced at trial revealed that the in-kind commitment could never be honestly met, so the conspirators began making up facts and documents to try and satisfy SAMHSA and the auditors that the in-kind contributions represented on their reports to SAMHSA were legitimate. They did so by inflating the figures related to in-kind contributions, assigning values to non-existent and illegitimate "contributions," and manufacturing fraudulent invoices and records to support fictional or inflated contributions. The misrepresentations as to in-kind amounts were made in monthly reports to SAMHSA and the documents were generated to placate auditors conducting a required annual audit of the Tribe's operations. These annual audits are required of tribes accepting federal grant funds to insure that the grant funds are being used for their intended purpose and that the requirements of the contract agreement are being met. If auditors make negative findings, those findings can result in action by the federal agency to rescind the contract, demand repayment, or make an offset, where the government deducts money from future payments.

Several witnesses, whose names were used as in-kind contributors, denied preparing or signing the invoice and denied contributing time or goods to the Po'Ka Project.

Based on email evidence and the statements of cooperating witnesses, Onstad, along with Conti, Sherman, and others, conspired to make the false representations as to the in-kind contributions made to the Po'Ka Project, and then actively managed the creation of false documentation to cover the representations so that the auditors would not question the contributions and the federal money would continue flowing unabated. The false representations were, in effect, false claims that resulted in the expenditure of federal grant money that would not have been expended had the principals honestly represented the woefully inadequate level of non-federal support.

Emails entered into evidence by the prosecution indicated that Conti was often consulted for advice as to how to appease auditors hired by the Tribe to perform a mandatory audit.

Auditors with the Office of Inspector General (OIG), U.S. Department of Health and Human Services, have determined that at least $4.6 million in claims for grant payments paid to the Tribe on the basis of Po'Ka' s in-kind contribution are unsupported, inflated, or completely falsified.

The Embezzlement Scheme With Conti

At trial, witnesses described how Onstad and Augare had embezzled from the program in a myriad of ways - travel fraud, misuse of Po'Ka credit cards, exorbitant claims of overtime, theft of program property, etc. - but the most significant embezzlement came in the agreement Onstad and Augare appeared to have reached with Conti wherein they would approve payments to Conti with the understanding that he would kick back a sizable portion-roughly one-half of the payment amount-to a bank account they controlled in the name of a children's charity, the Child Family Advocacy Center CFAC).

A forensic accountant with the FBI told the jury that between August 2008 and August 2011, Onstad and Augare approved over $475,000 in Po'Ka grant monies for Conti's business, Learning Associates. In turn, between August 2008 and September 2011, Conti transferred $231,550 to CFAC bank accounts at Wells Fargo Bank in Cut Bank.

Conti had declared bankruptcy in Oklahoma on April 29, 2009. Four days later Conti opened a Browning bank account for Learning Associates and began having his payments from the Blackfeet Tribe deposited into that account. Between May 2009 and August of 2011, each time a Po'Ka check would be deposited into the Browning account, Conti wrote checks from approximately half the amount to CFAC. The FBI witness testified that the amount from Conti was split roughly equally by Onstad and Augare through withdrawals from the CFAC accounts and deposits into their personal accounts and that the disposition of the money from their appeared mostly casinos and travel to Nevada.

Conti was convicted of conspiracy to defraud the United States, conspiracy to submit false claims against the United States, aiding theft from an Indian tribal government receiving federal funding, money laundering, theft of federal money, and twenty-one counts of wire fraud. Another jury found Conti guilty of bankruptcy fraud in March.

U.S. Attorney Mike Cotter lauded the jury's verdicts. "Grants like Po'Ka reflect the generous spirit of this country to help the least fortunate among us. For their objectives to be accomplished they must be protected and their integrity preserved. When a group of predatory opportunists see these grants as a golden goose ready to be exploited for personal gain, this office will respond with clear and decisive prosecution as a message to all that corruption in in any community in Montana will not be tolerated and that those who pillage public funds had best factor dire consequences into their decision to commit fraud."

The United States Attorney's Office today 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 Judge Lynch in Missoula on May 15, 2014 and entering pleas of Not Guilty were:

• MICHAEL LEWIS ANDREWS, a 64-year-old resident of Billings, appeared on charges of threatening to destroy a building with explosives, false information and hoaxes. If convicted of the most serious charges contained in the indictment, ANDREWS faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Violent Crime Task Force. PACER Case Reference: 14-26

• DEANDRE LARON CLEMONS, 28-year-old resident of Flint, Michigan, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of heroin. If convicted of the most serious charges contained in the indictment, CLEMONS faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Missouri River Drug Task Force and the Bozeman Police Department. PACER Case Reference: 14-10

Appearing before U.S. Magistrate Judge Strong in Great Falls on May 15, 2014 and entering pleas of Not Guilty were:

• TYLER ALLEN WILSON, a 25-year-old resident of Lewiston, appeared on charges of being a felon in possession. If convicted of the charge contained in the indictment, WILSON faces 10 years imprisonment, $250,000 in fines, and 3 years supervised release. PACER Case Reference: 14-24

Appearing before U.S. Magistrate Judge Ostby in Billings on May 19, 2014 and entering pleas of Not Guilty were:

• DAVID DELCARMEN, a 32-year-old resident of Los Angeles, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, DELCARMEN, faces life imprisonment, $10,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation, the Eastern Montana HIDTA, and Montana Division of Criminal Investigations. PACER Case Reference: 14-38

• BRET ALLEN HITSHEW, a 48-year-old resident of Missoula, appeared on charges of being a felon in possession of a firearm. If convicted of the charge contained in the indictment, HITSHEW faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Montana Highway Patrol. PACER Case Reference: 13-25

Appearing before U.S. Magistrate Judge Strong in Great Falls on May 20, 2014 and entering pleas of Not Guilty were:

• BRENDEN JAMES LEISCHNER, a 23-year old resident of Great Falls, appeared on charges of conspiracy to defraud the United States, federal student aid fraud/false statements, federal student aid fraud/theft of government money, and aggravated identity theft. If convicted of the most serious charges contained in the indictment, LEISCHNER faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation, U.S. Department of Interior Office of Inspector General and the U.S. Department of Education. PACER Case Reference: 14-34

• TAMMY KAY LEISCHNER, a 43-year-old resident of Laurel, appeared on charges of conspiracy to defraud the United States, federal student aid fraud/false statements, and federal student aid fraud/theft of government money. If convicted of the most serious charges contained in the indictment, LEISCHNER faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation, U.S. Department of Interior Office of Inspector General and the U.S. Department of Education. PACER Case Reference: 14-34

• MARK CRAIG LEISCHNER, a 47-year-old resident of Laurel, appeared on charges of conspiracy to defraud the United States, federal student aid fraud/false statements, federal student aid fraud/theft of government money, and aggravated identity theft. If convicted of the most serious charges contained in the indictment, LEISCHNER faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation, U.S. Department of Interior Office of Inspector General and the U.S. Department of Education. PACER Case Reference: 14-34

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 Attorneys Office announced today that a federal trial jury has just found Gary Joseph Conti guilty of the following charges: Conspiracy to defraud the United States (1 count); Scheme to Defraud the United States and the Blackfeet Tribe (21 counts); Theft of Federal Property by Fraud (1 count); Federal False Claims Act Conspiracy (1 count); Theft From an Indian Tribal Government Receiving Federal Grants (1 count); and Money Laundering (1 count). The defendant has been release pending sentencing which has been set for September 4, 2014 at 9:00 am in Great Falls.

The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on May 12, 2014, before U.S. District Judge Brian M. Morris, JASHA LASHELL FIRST RIDER, 29, of Browning, was sentenced to a term of 20 months imprisonment, two years supervised release, and a special assessment of $200.

First Rider was sentenced because she assaulted two federal officers while in jail. In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government would have proven that First Rider appeared in Blackfeet Tribal Court and had her bond set higher than she wanted. First Rider became enraged when at the Blackfeet Tribal Jail. Federal officers at the jail approached First Rider, but she punched one in the face and scratched another repeatedly.

First Rider pleaded guilty to two counts of Assault on a Federal Officer. In a sentencing memorandum, Weldon told the Court, "First Rider assaulted two correctional officers because she disagreed with a judicial decision. She disrupted the jail facility, and officers were required to shuffle inmates-a dangerous endeavor by itself-in order to ensure that First Rider did not hurt herself or others. Despite federal officers' best efforts, First Rider punched one in the face and scratched another. . . . First Rider has a pattern of assaultive conduct, including assaulting officers. Not only must the Court consider how it will deter First Rider from assaulting officers, but others must realize that such decisions will be met with severe consequences. Federal officers demand this protection and so do their families."

The Court sentenced First Rider to 20 months of imprisonment, with two years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that First Rider will likely serve all of the time imposed by the court. In the federal system, First Rider 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 investigation was conducted by the Federal Bureau of Investigation.

The United States Attorney's Office announced that KERA EVANS, 30, of Big Timber, was sentenced to a term of 96 months imprisonment, five years supervised release, and a special assessment of $100 during a federal court hearing in Billings, Montana, on May 14, 2014, before U.S. District Judge Susan Watters.

EVANS was sentenced in connection with her November 22, 2013, guilty plea to the crime of possession with intent to distribute methamphetamine. The prosecution was part of "Project Safe Bakken," an effort by led by the United States Attorneys for Montana and North Dakota, the Attorneys General for Montana and North Dakota, and a host of federal, state, local, and tribal law enforcement agencies to provide a systematic response to serious crime, including drug trafficking, in the Bakken Region. In EVANS' case the investigation was led by the Montana Division of Criminal Investigations (MDCI), the United States Drug Enforcement Administration (DEA), the Sidney Police Department, and the Sweet Grass County Sheriff's Department as part of a long term investigation.

In an offer of proof, Assistant U.S. Attorney Joseph Thaggard stated the government would have proved that EVANS was a significant player in a methamphetamine distribution ring that transported large amounts of almost completely pure methamphetamine from the State of Washington to Montana. Thaggard further stated that much of the methamphetamine was then primarily distributed in the Bakken Region of Northeastern Montana and Western North Dakota, including Sidney and Fairview.

The District Court sentenced Evans to 96 months of imprisonment, with five years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that EVANS will likely serve all of the time imposed by the court. In the federal system, EVANS 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.

U.S. Attorney Mike Cotter said the sentence reflects the seriousness of the crime and underscores the need to protect Montanans from methamphetamine trafficking and organized crime. "Methamphetamine trafficking presents a serious threat to the health and safety of our community, particularly the Bakken Region. The investigation and prosecution in this case demonstrate that all levels of law enforcement in Montana and North Dakota take that threat seriously and will seek to ensure those who engage in drug trafficking are held accountable for their crimes."

The United States Attorney's Office today 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 Judge Strong in Great Falls on May 13, 2014 and entering pleas of Not Guilty were:

• TERRY LEE MESSOM, a 45-year-old resident of Plentywood, appeared on charges of distribution and possession of child pornography. If convicted of the most serious charge contained in the indictment, MESSOM faces 20 years imprisonment, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-31

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

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

The United States Attorney's Office today 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 Judge Ostby in Billings on May 7, 2014 and entering pleas of Not Guilty were:

• JORDAN CAMPBELL-ZORN, a 22-year-old resident of Glendive, appeared on charges of receipt of child pornography. If convicted of the charge contained in the indictment, CAMPBELL-ZORN faces 5 years imprisonment, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-41

Appearing before U.S. District Judge Brian Morris in Great Falls on May 8, 2014 and entering pleas of Not Guilty were:

• ADAM BLUE COLGAN, a 33-year-old resident of Poplar, appeared on charges of possession of an unregistered destructive device and transportation of explosive material by a non-licensee. If convicted of the charges contained in the indictment, COLGAN faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 13-114

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 TODD ALLEN SCHMIDT, 50, of Great Falls, was sentenced to 96 months in prison, to be followed by four years of supervised release, during a federal court session in Helena on May 7, 2014, before Senior U.S. District Judge Sam Haddon. Schmidt was sentenced in connection with his January 2014 guilty plea to possession with intent to distribute methamphetamine.

In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the prosecution told the Court that on January 14, 2013, in Helena, an informant contacted a local methamphetamine dealer to arrange to purchase 2 ounces of methamphetamine. The first drug dealer was out of town, but told the informant that he could obtain methamphetamine from Todd Schmidt, and that he, the first drug dealer, would have Schmidt call him, the informant.

A short time later, the informant received a call from Schmidt who told the informant that he would meet Schmidt the next evening in Helena with the methamphetamine. The following evening, January 15, 2013, the informant placed several calls to Schmidt which were recorded by law enforcement. The two agreed to meet at the Grub Steak Restaurant parking lot in Helena. Law enforcement provided the informant with sufficient funds to complete the transaction and then monitored the meeting with Schmidt.

Schmidt arrived at the Grub Steak parking lot in a white Cadillac. Schmidt got out of his vehicle and into the informant's vehicle where he gave the informant approximately 2 ounces of methamphetamine in exchange for the cash. Schmidt did not count the money and immediately left the vehicle. Schmidt got back into his car and drove out of the parking lot. The informant then turned the drugs over to law enforcement which were later analyzed and found to contain methamphetamine.

The case was investigated by the Federal Bureau of Investigation, Montana Division of Criminal Investigations, and the Missouri River Drug Task Force.

The United States Attorney's Office announced that during a federal court session in Great Falls on April 28, 2014, before U.S. District Judge Brian Morris, KEITH CLIFFORD CUNNINGHAM, 70, of Kent, Washington, was sentenced to 228 months imprisonment followed by 5 years supervised release.

Cunningham was sentenced in connection with his January 2014 bench trial where he was found guilty. In a trial brief filed by Assistant U.S. Attorney Cyndee L Peterson, the government stated that the defendant Keith Clifford "Casey" Cunningham had traveled around several states, including Montana, due to his work on pipelines. In mid-August 2011, Cunningham was in Stanford, Montana. Cunningham had been intermittently visiting Stanford and frequenting the local diner for a couple years. On August 18, 2011, Cunningham saw an 8 year old girl in a local diner. Cunningham learned the girl's mother would be out of town for the day, and knew the girl was going to the local swimming pool that day.

That day, Cunningham befriended the child at the public swimming pool. Cunningham groomed the child throughout the day by doing such things as challenging her to play games at the pool, promising her chocolate bars, letting the child drive his vehicle while seated on his lap, and acting as though he was looking out for the child's well-being while her mother was out of town. Eventually, Cunningham took the little girl to the Judith Basin County Fairgrounds where he produced child pornography of the 8 year old girl. During an interview with law enforcement officers, Cunningham admitted he produced the images of the child with his digital camera stating that the child was acting "sexy" and wanted him to take the photographs.

The Grand Jury indicted Cunningham for production of child pornography in violation of federal law, and he was convicted of the crime at a bench trial on January 14, 2014. At trial, there was also evidence that Cunningham had previously purchased videos depicting child pornography online.

The United States' Attorneys Office for the District of Montana is committed to the safety and well-being of every child and has placed a high priority on combating sexual exploitation of minors. This case was prosecuted by an Assistant U.S. Attorney specifically designated to be a Project Safe Childhood for the District of Montana. Project Safe Childhood is a Department of Justice initiative launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. The threat of sexual predators soliciting children for physical sexual contact is well-known and serious. The danger of sexual perpetrators who produce child pornography - like Mr. Cunningham -- is equally, if not more, dramatic and disturbing.

Through a network of federal, state, tribal, 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. Project Safe Childhood is implemented through partnerships including the organizations who were involved in this case: Homeland Security Investigations, the Montana DOJ Division of Criminal Investigation, the Montana Internet Crimes Against Children Task Force, the Fergus County Sheriff's Office, and the Judith Basin County Sheriff's Office.

The United States Attorney's Office announced that on April 24, 2014, RONALD RANDOLF JOHNSON was sentenced to a year in prison and a year of supervised release by Senior U.S. District Judge Sam Haddon. Johnson, of Couer d'Alene, Idaho, was sentenced in connection with his guilty plea to obtaining Oxycodone, a potent pain killer available only by prescription, by deception. In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, told the Court that on September 10, 2010 and on October 3, 2011, Johnson signed an Agreement and Consent for Controlled Medication Therapy for Chronic Pain with Dr. Deborah Kern at Community Health Partners in Bozeman, Montana. In that agreement, he agreed that he would only use one provider to prescribe controlled substance(s). He further agreed that he would not request any pain medications or controlled substance from other providers. And, that he would inform any other health care provider that he was taking controlled substance(s) from Dr. Kern. Johnson further represented that his date of birth was 4/10/1959. Based upon Johnson's representations, he was able to obtain prescriptions from Dr. Kern for Oxycodone. Johnson deceived Dr. Kern because he was in fact seeing other physicians from whom he was also obtaining Oxycodone and the birthdate, a common method of verifying patient identity, was a fake.

Upon learning that Johnson had not been truthful about his treatment with other physicians, and that he had been prescribed narcotics from other physicians, Dr. Kern terminated her care of Johnson and on August 15, 2012, sent Johnson a letter stating, "This letter is to inform you that I will no longer be able to prescribe narcotics for you for your chronic pain effective today. It has come to my attention that you are on a pain contract with a provider in Idaho for narcotics as well."

Johnson made similar misrepresentations to pharmacies in order to obtain large quantities of Oxycodone. For example, on September 27, 2012, at a pharmacy in Liberty Lake, Washington, Johnson attempted to fill a prescription for Oxycodone from Dr. Heidi Kallestad. When Johnson went to fill the prescription he was asked by the pharmacist to verify his date of birth. Johnson verbally stated that his date of birth was 4/10/1959. This date of birth was different than the date the pharmacy had on record for him. When asked for identification he provided an Idaho license which had a crease down the center and the date of birth had been punched out by what looked like a sharp object. Local law enforcement was called and Johnson was arrested.

Using a correct and truthful date of birth is critical when filling prescriptions because it is one method used by physicians, pharmacies, and law enforcement to detect fraudulent prescriptions and to prevent patients from obtaining a greater amount of a controlled substance than they would otherwise be entitled. Furthermore, Johnson did not notify any of the physicians that he was being treated by any other physicians or that he was already receiving a controlled substance from a separate/different physician. During the period of time charged in the indictment, Johnson fraudulently obtained prescriptions for more than 13,000 pills of Oxycodone through his deception, fraud, and misrepresentations made to physicians and/or pharmacies.

The United States Attorney's Office announced that ENRIQUE LOPEZ SOLANO, 40, from Moses Lake, Washington, was sentenced to 51 months imprisonment followed by 3 years supervised release during a federal court session in Missoula on April 29, 2014, before Senior U.S. District Judge Donald Molloy. Solano was sentenced in connection with his guilty plea to possession with intent to distribute methamphetamine.

Assistant U.S. Attorney Joseph E. Thaggard told the Court that in early 2013, the Montana Division of Criminal Investigation (MDCI), Sidney, Montana Police Department, and the Drug Enforcement Administration (DEA) began to investigate a drug trafficking organization that was distributing methamphetamine in the Sidney, Montana area. The investigation disclosed that a courier involved with the drug trafficking organization had met with "Jane Doe," another member of the organization, during a meeting in Livingston, Montana in mid-March 2013 wherein the courier distributed methamphetamine to Jane Doe. Jane Doe subsequently identified Solano as the drug courier she met in Livingston in mid-March 2013 and from whom she received methamphetamine. On June 15, 2013, the Montana Highway Patrol stopped a rental car Solano had rented and in which he was a passenger at the time of the stop. A search of the vehicle revealed more than 200 grams (roughly 7 ounces) of methamphetamine hidden in or near the air filter of the car.

The prosecution was part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota working together to stem the rising tide of drug trafficking in the oil boom region of the Bakken Fields.

The United States Attorney's Office announced that JAMES EUGENE FRAY, 59, of Missoula, was sentenced to 57 months imprisonment, $10,000 in fines and 3 years supervised release, during a federal court session in Missoula on April 29, 2014, before Senior U.S. District Judge Donald Molloy. Fray was sentenced in connection with his December 2013 guilty plea to being a felon in possession of a firearm.

Assistant U.S. Attorney Paulette L. Stewart told the Court that between September 25, 2013, and October 4, 2013, Fray, a federally convicted felon, possessed ten firearms in Missoula, Montana. Fray has a federal conviction for a violation of 18 U.S.C. Section 922 (h), being a convicted felon receiving a firearm, that prohibits him from possessing firearms. The case agent obtained a certified copy of the Judgment from the United States District Court in North Dakota which documents Fray's name as James Anthony Frey. Due to a previous ATF investigation, the case agent verified that James Eugene Fray and James Anthony Frey are one and the same person.

Some of those firearms were stolen. On October 3, 2013, Missoula area law enforcement executed a search warrant on Fray's Toyota pickup truck. During the search warrant execution, the officers recovered firearms and ammunition. The firearms were stolen from a storage shed in the Missoula area. Investigation revealed that Fray purchased the firearms knowing that they were stolen.

The United States Attorney's Office announced that during a federal court session in Great Falls on May 5, 2014, before U.S. District Judge Brian Morris, JAMES ZANDER, 63, pled guilty to one count of Tax Evasion. Zander faces a potential sentence of five years in prison, $250,000 fine, the costs of prosecution and three years of supervised release. Restitution will include unpaid taxes, interest and penalties.

In an Offer of Proof filed by Assistant U.S. Attorney Chad Spraker, Spraker told the Court that Zander, a dentist who owned and operated Dental Care of Great Falls beginning in 1992, filed individual income tax returns until the 2001 tax year. Zander's tax preparer prepared an IRS Form 1040 2001 individual income tax return for Zander and an IRS Form 1120S for Zander's solely owned corporation, Dental Care of Great Falls. Zander did not file the individual 2001 return. Dental Care of Great Falls, however, filed the corporate return, which was signed by Zander. The corporate return listed $101,755 in officer compensation and $117,769 in pass-through income. Dental Care of Great Falls also submitted a 2001 IRS Form W-2 to the IRS listing Zander's wages at $101,755. Spraker provided the Court Zander's filing history to establish his knowledge of the filing requirements.

On February 20, 2002, Zander formed Solid Rock Partners, LP in Nevada; on July 16, 2003, he formed Royal Priesthood Society, a corporation sole, in Nevada; and on June 10, 2008, he formed American Humanitarian Project, another corporation sole, in Arizona. Zander opened and maintained bank accounts for each of these entities.

Zander maintained two bank accounts for Dental Care of Great Falls. According to Zander's assistant, one account funded office bills and the other account funded Royal Priesthood Society. Zander used money from Royal Priesthood Society for personal expenditures. According to Zander's bookkeeper, Zander instructed her to classify checks from Dental Care to Royal Priesthood Society as charitable contributions. From 2006 to 2009, $271,000 in checks was issued from Dental Care of Great Falls to Royal Priesthood Society. From 2002 to 2009, Zander purchased five parcels of land in the name of Solid Rock Partners and Royal Priesthood Society.

On February 17, 2004, Zander sent a signed IRS Form 1040 2001 individual income tax return to the IRS listing zeroes in each of its sections for income, adjusted gross income, and tax liability. The return requested a $27,131 refund, the amount Zander had withheld that year.

On July 2, 2004, the IRS sent Zander a letter informing him that his 2001 return was frivolous and warned him of the consequences of not paying his taxes. Based upon the 2001 IRS Form 1120S for Dental Care of Great Falls, the W-2 issued to Zander, and other documents received by the IRS, the IRS completed an audit and assessed Zander's 2001 tax liability at $86,195.37. On May 10, 2006, the IRS sent Zander a letter with the proposed assessment and again warned him of the consequences of failing to pay his taxes. When Zander did not respond to the letter, the IRS issued him a June 30, 2006, notice of deficiency, and on February 26, 2007, the IRS assessed his 2001 tax liability at $87,694.90. The IRS later revised its assessment and calculated a $100,972.81 liability as of March 10, 2010 for the tax year 2001.

In December 2007 and January 2008, the IRS issued a notice of levy to Zander with respect to bank accounts he held at Stockman Bank. In response, Zander sent letters to Stockman Bank asserting that the levies were unlawful and Zander is not subject to taxation. After the IRS collected approximately $2,000 from the levies, Zander stopped making deposits into the Stockman accounts and closed them on November 18, 2008.

On April 13, 2009, IRS Revenue Agent Graves served summonses on other financial institutions holding Zander's money, including First Interstate Bank. Zander closed his bank account at First Interstate Bank on October 16, 2009.

On October 23, 2009, and November 2, 2009, Zander sent fictitious $300 million "Private Indemnity Bonds" to the U.S. Treasury Secretary. The "Private Indemnity Bonds" purported to offset Zander's pre-existing and future liabilities.

IRS Revenue Officer Murray placed liens on Zander's property at the Cascade County Clerk and Recorder's office on October 7, 2009. The following day Murray hand delivered three letters to Zander warning of IRS collection for the tax years 2001 and 2005. On October 19, 2009, Zander responded and attached the IRS's levy notices stamped "Refused for Cause." On October 21, 2009, Murray sent Zander a letter warning him of the frivolous nature of his arguments and the potential for criminal penalties. On November 30, 2009, Zander sent Rena Moore, the Cascade County Clerk, a letter demanding she release the tax liens within ten days.

Despite Zander's tax debt, Dental Care of Great Falls earned over $1 million in gross receipts from 2006 to 2009. From 2003 to 2009, Zander spent $274,905 on precious metals, and from 2002 to 2009 he spent $108,168 on five parcels of land.

Sentencing is set for August 15, 2014, at the Missouri River Courthouse in Great Falls, Montana.

The case was investigated by the Criminal Investigation Division of the Internal Revenue Service.

The United States Attorney's Office today 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 Strong on May 6, 2014 and entering pleas of Not Guilty were:

• JONAS L. FLANSBURG, a 31-year-old resident of Dodson, appeared on charges of being a felon in possession of a firearm. If convicted of the charged contained in the indictment, FLANSBURG faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-29

Appearing before U.S. Magistrate Lynch in Missoula on May 6, 2014 and entering pleas of Not Guilty were:

• STEVEN MICHAEL CATE, a 44-year-old resident of Newport, Washington 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, CATE faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 14-21

• DANIEL ROGER RACHELL, a 43-year old resident of Darby, appeared on charges of threats against the President and threats against former presidents and certain other persons. If convicted of the most serious charges contained in the indictment, RACHELL faces 5 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Secret Service. PACER Case Reference: 14-25

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 on April 24, 204, in Billings, after a 2 day federal district court trial before U.S. District Judge Susan P. Watters, FELIS LUSIANO ROMO, a 32-year-old resident of Moses Lake, Washington, was found guilty of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and felon in possession of a firearm. He is currently detained pending sentencing.

Assistant U.S. Attorney Paulette Stewart presented evidence that in 2012 and 2013, Robert Armstrong operated a drug distribution enterprise between Moses Lake, Washington, and Sidney, Montana. Felis Romo was among those who supplied methamphetamine to Armstrong for re-distribution in the Bakken. The evidence disclosed that Armstrong had begun methamphetamine trafficking operations in the Sidney area in approximately April 2012 and the activities of Armstrong and his coconspirators continued until approximately September/October 2013. The conspiracy employed couriers who transported methamphetamine from the State of Washington to Montana. Sometimes the couriers drove the methamphetamine all the way to Sidney and other times the couriers met Armstrong, or his associates, mid-way---at Butte, Big Timber, and Livingston.

In early 2013, members of the Montana Division of Criminal Investigation (MDCI), the United States Drug Enforcement Administration (DEA), and the Sidney, Montana Police Department began to investigate Armstrong's drug trafficking organization. As part of the investigation, informants and an undercover MDCI agent made controlled purchases of methamphetamine from Armstrong and many of his associates in February and March, 2013.

In the summer of 2013, Armstrong's operation was faltering and Romo came to Sidney from Moses Lake to get things straightened out and take over for Armstrong as the organization's distributor in the Sidney/Bakken area.

A grand jury subsequently indicted Armstrong and several of his accomplices who have all since entered guilty pleas to trafficking charges.

Romo faces possible penalties of 40 years imprisonment, $5,000,000 in fines and 4 years supervised release.

The United States Attorney's Office announced that IRENE ALINA MICHELL and TYSHA LEANN MICHELL were sentenced for trafficking methamphetamine from Washington into Montana. IRENE ALINA MICHELL, age 33, of Great Falls, Montana, was sentenced to a term of 132 months imprisonment, five years supervised release, and a special assessment of $100 during a federal court hearing in Great Falls, Montana, on May 1, 2014, before U.S. District Judge Brian M. Morris. On the same date, TYSHA LEANN MICHELL, age 35, of Great Falls, Montana, was sentenced to 60 months imprisonment, four years supervised release, and a special assessment of $100. The United States also forfeited cash proceeds and a vehicle used during the commission of the offense.

IRENE ALINA MICHELL and TYSHA LEANN MICHELL were sentenced in connection with their January 2013 guilty pleas to conspiracy to possess with the intent to distribute methamphetamine. In an Offer of Proof, Assistant U.S. Attorney Ryan Weldon stated it would have proved that Sylvia Martinez transported methamphetamine from Washington to Great Falls, Montana. On October 31, 2013, federal agents observed IRENE ALINA MICHELL and TYSHA LEANN MICHELL and others parked at a local hotel. Agents conducted surveillance and watched several members of the conspiracy distribute methamphetamine. After obtaining a federal warrant, authorities searched the hotel that IRENE MICHELL, TYSHA MICHELL, and others were using and discovered 297.4 grams of pure methamphetamine, as well as cash.

Because there is no parole in the federal system, the truth in sentencing guidelines mandate that IRENE ALINA MICHELL and TYSHA LEANN MICHELL will likely serve all of the time imposed by the court. In the federal system, prisoners 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, the United States Probation Office, and local law enforcement agencies.

The United States Attorney's Office announced that during a federal court session in Butte on April 25, 2014, before U.S. District Judge Sam Haddon, MARY ANN McCULLEY, 55, of Bozeman, was sentenced to 12 months imprisonment and 1 year supervised release.

McCulley was sentenced in connection with her October 2013 guilty plea to false impersonation of a federal officer or employee. In an offer of proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated that on April 24, 2012, McCulley went to the home of a person identified in the pleadings only as "T.C." in Bozeman, Montana. T.C. was a witness in a civil case involving McCulley, US Bank, and American Land and Title Company. McCulley, who appeared to be wearing a disguise, told T.C. that her name was Angela Connell and she was conducting a securities investigation into US Bank. She said T.C.'s name had been mentioned in connection with the investigation, but he was not a suspect. During her meeting with T.C., McCulley represented herself to be both an FBI agent and an agent from the Department of the Interior.

T.C. eventually told McCulley that he needed to contact a lawyer before answering any more questions. McCulley told T.C. that if he refused to talk to her, he would have to speak with an FBI agent from Bozeman. T.C. agreed to meet with the Bozeman FBI and asked McCulley for their phone number. McCulley explained that she had it written down in her car. T.C. accompanied McCulley outside to her vehicle, but she could not find the number. T.C.'s wife photographed the vehicle's license plate before McCulley drove away. The plate was from New Mexico and the number was 114-PYW. Further investigation revealed that McCulley rented the car from Avis Rental Car Company at the Bozeman Airport three days prior to meeting with T.C. and his wife.

The United States Attorney's Office announced that GARRETT KIRBY LaFROMBOISE, 21, of Box Elder, was sentenced to 160 months imprisonment and 4 years supervised release in federal court on April 25, 2014, before U.S. District Judge Brian Morris, LaFromboise was sentenced in connection with his guilty plea to assault resulting in serious bodily injury. Assistant U.S. Attorney Danna Jackson told the Court that on or around October 21, 2013, LaFromboise became frustrated when an eleven month old child would not stop crying. LaFromboise admitted to investigators that he inserted his fingers in the baby's mouth and gagged him to try to make him stop crying. LaFromboise confessed that as he became increasingly anger he punched the baby in the abdomen. He denied any other infliction of injuries to the child.

The child died as a result of significant injuries.

Jackson told the Court, in a written offer of proof, that medical evidence would have shown that the victim suffered numerous injuries including skull fractures, hemorrhages and bruises to the brain, hemorrhages to the spinal nerves, abrasion to the scalp, a broken nose, bruising on the torso, rib fractures, hemorrhages to the retina, bruises on the child's forehead, nose, cheeks, and ears, lacerations and contusions to the mouth, internal injuries, bruises to the lower extremities, and lacerations on the tips of the child's left hand. The medical examiner, who issued the Report of Postmortem Examination, found that because the exact mechanism or mechanisms of death responsible for the complex skull fracture, cerebral contusions,

The United States Attorney's Office announced that Dr. James Howard Eastlick, Jr., the former Clinical Psychologist at the Rocky Boy Health Clinic, entered pleas today in three of four indictments handed down by the Grand Jury charging him with public corruption and tax fraud. Eastlick appeared before U.S. District Judge Brian Morris in Great Falls to enter the guilty pleas.

BRIBERY OF TONY BELCOURT

Eastlick pled guilty to bribery in giving $100,000 to Tony Belcourt in November of 2009 from a company in which he controlled a 49% interest-Hunter Burns Construction. United States v. Belcourt, et al, CR-13-82-GF-BMM. The payment was characterized as a "loan" but was not paid back until 2013 when Belcourt and Eastlick became the subjects of a federal corruption investigation. Belcourt had awarded Hunter Burns Construction several construction contracts from federal funds provided to the Chippewa Cree Tribe and its corporation, the Chippewa Cree Construction Corporation, of which Belcourt was the Chief Executive Officer and Contracting Officer. Belcourt had sold cattle out of trust meaning without the knowledge and consent of the Independence Bank who held a lien against the cattle to collateralize the loans made to Belcourt and his wife. When the Bank discovered the conversion, it demanded payment of $107,000 from the auction company who had sold the cattle on Belcourt's behalf, and the auction company, in turn, demanded payment from the Belcourts.

Tony Belcourt approved and authorized a Chippewa Cree Construction Corporation payment to Hunter Burns Construction on November 21, 2009, in the amount of $148,972. Two days later, on November 23, 2009, Hunter Burns Construction issued a $100,000 check to Hailey Belcourt. Hunter Burns Construction did not have the funds to make the payment to Belcourt until the federal construction funds were deposited from the Chippewa Cree Construction Corporation. The company recorded the payment as a personal loan to Hailey Belcourt who then used the money to re-pay the livestock auction company by wire transfer of $107,153.09 on November 27, 2009. Four months later, in March of 2010, Hunter Burns Construction received a $1.7 million contract from Belcourt.

Additional details can be found in the government's extensive Offer of Proof filed with the Court with that case number and accessible through PACER.

BRIBERY OF TRIBAL COUNCILMAN A

Eastlick also pled guilty to bribery in United States v. Eastlick, CR-14-33-GF-BMM which alleged that between July 28, 2009 through November 30, 2011, Eastlick and Hunter Burns Construction made $258,000 in bribe payments to a tribal councilman of the Chippewa Cree Tribal Business Committee identified in the indictment only as Tribal Councilman A. The government told the Court that Tribal Councilman A served on the Board of Directors for the Chippewa Cree Construction Corporation and the Rocky Boy's Health Care Board.

Prosecutors told the Court in an Offer of Proof that the investigation revealed that many of the transactions were not legitimate. For example, equipment purportedly sold to Hunter Burns Construction would continue to appear on Tribal Councilman A's inventory of equipment for bank loans and credit long after it was allegedly sold. One transaction was for the potential and prospective lease of property over ten years-paid in full up front-when the land was never used for any purpose by the construction company. Another payment was related to the disposal of hazardous waste which could not have been a legitimate transaction due to the regulatory requirements for the disposal of such material that Tribal Councilman A could not legally perform. Eastlick admitted that the payments were to maintain the favor of Tribal Councilman A and to keep federal contracts flowing to Hunter Burns Construction.

Additional details can be found in the government's Offer of Proof filed with the Court with that cause number and accessible through PACER.

FILING FALSE TAX RETURNS

In United States v. Eastlick, CR-14-32-GF-BMM, Eastlick pled guilty to one count of a four count indictment charging him with filing a false tax return. During the years covered by the indictment (2008-2011), Eastlick was a Clinical Psychologist for the Rocky Boy Health Clinic on the Rocky Boy's Indian Reservation. During this same period, 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, as a "pay-day" lender to individual tribal employees in smaller amounts. The loans Eastlick made for the tribe generally included interest rates of l0o/o, and were paid back within l0 weeks of Eastlick loaning the money. The annualized percentage rate (APR) for loans from the JE Loan program would constitute a 70% to 80% return. Short-term loans to individual tribal members also came with high annualized rates of interest.

In its Offer of Proof, the U.S. Attorney's Office indicated that it would prove that a significant amount of interest was never declared by Eastlick on his federal income tax returns. The government alleges that Eastlick underpaid his taxes by over $66,000 during the four year period of the indictment.

Additional details can be found in the government's Offer of Proof filed with the Court and accessible through PACER.

Eastlick's sentencing on the three felonies is set for August 15, 2014, in Great Falls.

The case was brought by the federal agents of the Guardians Project and was investigated by the Inspectors General of the Departments of Interior and Health and Human Services, and for the Environmental Protection Agency, as well as by the Internal Revenue Service Criminal Investigation Division and the FBI.

• RIFICATION**

Please be advised that Northeast Metal Traders was mistakenly named as being affiliated with STEPHEN SALVATORE INTRIERI in the news release issued below. In fact, Northeast Metal Traders has no affiliation with Mr. Intrieri or his business affairs. The wording of the press release and the document filed with the Court lacked clarity and the United States Attorney regrets any misunderstanding the drafting error may have created for the company or its customers.

ORIGINAL PRESS RELEASE DATED Wednesday, February 26, 2014 below

The United States Attorney(s Office announced that STEPHEN SALVATORE INTRIERI, 30, of Mount Laurel, New Jersey, was sentenced on February 20, 2014, to a term of 30 months in federal prison for with three years of supervised release to follow, for running an interstate scrap metal scam. Intrieri was sentenced by U.S. District Judge Dana L. Christensen in Missoula. Christensen also ordered Intrieri to pay $326,474.36 in restitution.

In an Offer of Proof filed with the Court, Assistant U.S. Attorney Tim Racicot

Whitefish Police Department initially received a complaint from an officer with a New Jersey scrap metal procurement company that buys scrap metal in the United States and sells it overseas. On February 29, 2012, the company received a call from "Tony Giordano," a salesman for Montana Metal Recyclers ("MMR"), which was allegedly doing business from Whitefish, about purchasing scrap metal. An agreement was reached and on June 8, 2012, the New Jersey company wired $19,000 to MMR's bank account at Bank of America.

The officer of the New Jersey company told police that he was cautious in his dealings with Giordano, but Giordano's knowledge of the scrap metal industry made him comfortable proceeding with the deal after receiving pictures of the material he was purchasing and Giordano's answers to some technical questions about the industry and the shipment. After he sent the money, Giordano could never be reached and the company never received the scrap metal it had purchased. When the company official was later asked if he had prior interactions with Intrieri, he described being defrauded out of $30,000 by Intrieri and Northeast Metal Traders in approximately 2009, and provided the documents from that transaction.

It is not uncommon for persons engaged in telemarketing fraud to return to prior victims-a technique referred to as "reloading"--with assurances that they want to redeem themselves by making it up to the victim with a second deal often more lucrative than the first. This scam prays on the desire to make up for lost investment and the chance to recoup lost funds is often too seductive to resist.

Another victim contacted the Whitefish police-as well as the Secret Service in New York-to report that he paid MMR $95,000 on the basis of representations made by a man who called himself "Tony Giordano," to buy scrap metal that he never received. The second victim, A.B., made two attempts to verify the legitimacy of MMR, including one with a person, A.W., whose name was referenced in a sales agreement to which MMR was a party. A.B. received a response to his email to A.W. indicating MMR was a reputable company, but when he actually spoke with A.W., he learned that A.W. did not send the email and had never heard of MMR.

The Secret Service in New York initiated an investigation into MMR, during which they discovered MMR did not have a facility or office at the address in Whitefish listed on the incorporation documents. They traced some of the money that paid to MMR to the purchase of a $37,510 engagement ring by Intrieri on February 10, 2012, from Jay Roberts Jewelers in Marlton, New Jersey. Intrieri paid for the ring with a cashier's check from RBS Citizens Bank. The owner of the jewelry store was interviewed and confirmed that a man who provided the name Steve Intrieri bought a 3-carat diamond engagement ring. Intrieri told the jeweler that he lived in Bayonne, NJ, and his parents lived in Mount Laurel, NJ.

The second victim was Facebook friends with Intrieri and told one of the investigating agents that Intrieri proposed to his girlfriend on February 11, 2012, and posted pictures of her wearing a large diamond ring. The second victim provided screen shots of the posts to the Secret Service and the owner of the jewelry store identified the ring that he sold Intrieri in the photo from the post on his fiancé's Facebook page. The owner also identified Intrieri from the RBS Citizen's Bank surveillance, which was captured at the same time he obtained the cashier's check to pay for the ring. The agents in New York eventually turned over their investigation to an agent in Montana, given that MMR was incorporated in Montana and allegedly had a business address in Whitefish.

RBS Citizens Bank froze MMR's account sometime around February 15, 2012. MMR's first statement for the Bank of America account covers the time period from February 15-29, 2012, which indicates it was opened the same time the RBS account was frozen. Intrieri wired more than $125,000 from the MMR Bank of America account into his personal Chase bank account, and nearly $10,000 was wired into his fiancé's account. Altogether, it appears that Intrieri received approximately $370,000 from the various victims of the MMR scheme. Approximately $49,000 was returned to the second victim with the RBS Citizens account was frozen.

Investigating agents found that Intrieri was affiliated with seven different businesses, at least four of which appeared to deal with scrap metal sales. Their searches revealed that Intrieri had been the subject of prior Secret Service investigations and had a criminal history. The agents also interviewed other victims of Intrieri's scheme, who provided information consistent with what was relayed by the victims who had contacted the Whitefish Police Department.

U.S. Attorney Mike Cotter reminded all Montanans to be wary of "cold calls" promising lucrative returns, particularly if you have been a prior victim of telemarketing fraud.

Unsolicited calls from people you do not know, making promises you want to believe, are most often completely fraudulent. These swindlers feed on people's dreams of an easier-more financially secure-future. With one phone call, they can steal those dreams by taking away all you've saved and everything you were saving for. And if you've been fooled before they will be back to take whatever they did not get the first time around." -- Mike Cotter, U.S. Attorney for Montana.