New indictments unsealed on Rocky Boy corruption

Kevin David McGovern of Billings and former Chippewa Cree Tribal Business Committee member Brian Kelly Eagleman are the latest to be accused of being involved in the convoluted Rocky Boy embezzlement scandals that have already landed several people in federal prison. Both men pleaded not guilty to all charges Tuesday at U.S. District Court in Great Falls.

The indictment filed in District Court says that McGovern plotted with influential members of Chippewa Cree Tribe to sell to the tribe an asphalt mixer the tribe didn’t need for a price it wasn’t worth by promising thousands of dollars in kickbacks to those who helped facilitate the sale, Eagleman among them.

McGovern is the owner of MC Equipment Holdings LLC, a construction equipment rental company, and partial owner of MT Waterworks LLC, a pipe and pipe-fitting supply company.

In 2011, he was looking to unload an asphalt mixer he bought for $1.2 million 18 months earlier, charging documents say, adding that McGovern told Tony Belcourt, chief executive officer of the Chippewa Cree Construction Corporation, and a “person of substantial political influence on the Rocky Boy’s Indian Reservation,” that if he would help find a buyer, Belcourt would get a “finder’s fee.” Belcourt, a former state representative, has since pleaded guilty to charges in other cases alleging his involvement in the Rocky Boy corruption scandals and is serving a 90-month sentence in federal prison.

U.S. Attorney files say, by January 2012, Belcourt’s influence caused the tribal Business Committee to buy the asphalt mixer for $1.7 million. The sale agreement was made by McGovern and Director of the Chippewa Cree Tribe Roads Department Timothy Rosette, charging documents say. Rosette has been sentenced 38 months in federal prison for his guilty plea to charges in other cases.

In April 2012, files say McGovern made a payment of $91,800 from Montana Waterworks’ account to Tony Belcourt.

Five days later, McGovern allegedly issued a $229,000 check from MC Equipment Holding’s account to Huston Leasing, a company owned and controlled by Havre businessman, Shad Huston, who recently was sentenced to 41 months in federal prison for his guilty pleas to charges in other cases. The indictment file says Huston then distributed various amounts of money to the following people:

Rosette allegedly received a total of $8,000 throughout 2012.

Tribal Chairman Bruce Sunchild, who has received a 34-month federal prison sentence for his guilty pleas in other cases, received a cashier’s check of $12,558 from Huston, the documents say.

They also say Huston gave a check of $50,000 to the Internal Revenue Service for Eagleman.

McGovern and Eagleman are released on their own recognizance. Magistrate Judge John Johnson, who likely will not preside at any subsequent proceedings, said skipping bail would be an egregious mistake.

U.S. District Court Judge Brian Morris, who will preside over the case, will schedule hearings and the trial or trials.

McGovern is charged with conspiracy to defraud the Chippewa Cree Tribe, scheme to defraud the Chippewa Cree Tribe and bribery. Eagleman is charged with conspiracy to defraud the Chippewa Cree Tribe, scheme to defraud the Chippewa Cree Tribe and theft from an Indian tribal organization.

The companies MC Holdings Company and Montana Waterworks are indicted on the same charges as McGovern.