Destroying a meth-dealing ring

Step by step, suspect by suspect, local and federal officials worked together over two years to dismantle a major methamphetamine drug ring operating in Northwest Montana.

Nicknamed the “Jamie Lake Drug Trafficking Operation,” the organization had brought several pounds of meth per week to the Flathead Valley from Spokane.

According to court documents, between 2007 and 2008, Lake, 34, of Spokane, moved meth first by ounces, then by pounds, from Washington to the Flathead Valley by using rental cars and hotel rooms as meeting places.

Once here, the drugs were moved to a mobile home at 159 1/2 Bernard Road in Evergreen, where they were distributed and sold throughout the valley.

Russ Papke, Northwest Montana Drug Task Force Commander, said the operation was one of the larger ones in Montana.

At first, the scope of the organization wasn’t clear, but then undercover task force agents began to notice that drugs they purchased were from the same source. The apparent size of the organization and the fact that illicit firearms were involved got the attention of the federal government.

In summer 2007, the Bureau of Alcohol, Tobacco, Firearms and Explosives began to receive multiple intelligence reports on illicit firearms and narcotics sales, according to Ken Bray, resident agent in charge of the ATF in Montana. 

The agency inserted an undercover agent in the Flathead, leading to arrests by the end of summer in 2008 and court appearances throughout 2008 and 2009.

At its height, an estimated 20 to 25 people were involved in the trafficking organization in some capacity, according to Bill Mercer, former U.S. Attorney for the District of Montana, who coordinated the prosecutions. Multiple legitimate organizations were unwittingly involved as well.

Beginning in summer and ending in November 2009, 11 residents of the Flathead Valley and Spokane were convicted in federal court in Missoula of being participants in the drug ring.

U.S. District Judge Donald Molloy sentenced them to a total of 80 years in federal prison, including ring leader Jamie Lake, Daniel Bennett, 49, Deanna Hamilton, 41, and Donovan Dehnel, 35, all of Spokane; and Justin Hessler, 29, Scott Shirley, 38, Christopher Fraleigh, 25, and Alfonzo Hector Pena, 33, all of Kalispell. All faced charges of conspiracy to distribute methamphetamine. They received varying sentences, depending on the level of their involvement in the operation.

“We certainly didn’t solve a problem, but we did put a significant dent” in stemming methamphetamine use in Montana, Bray said.

Very little meth is manufactured in Montana, so authorities are vigilant for any signs of importation.

“We’re always looking for regional interstate organizations responsible for bringing drugs into Montana,” Bray said. “It’s very important to be vigorous in terms of choking off the supply.”

Lake lived in Spokane. According to Bray, he had no connection with Kalispell or Montana in particular, but he did know Fraleigh, a Kalispell resident.

The two apparently met at a Washington bar and later came up with an agreement wherein Lake would supply drugs to Fraleigh, who would then help distribute them in the Flathead Valley. Lake reportedly got the drugs, originally from Mexico, in the Spokane area.

According to court documents, Lake took a hands-on approach to his new business, personally transporting meth on 17 trips between Spokane and Kalispell, where he met the major members on the Montana end.

During 2007, Lake and his associates moved numerous pounds of the stuff.

Lake, Hessler and Shirley used rental cars provided by Hamilton, who at the time was the manager of Dollar Rent-a-Car in Kalispell. She was able to set up a system so Lake could use vehicles for free, or rent with cash only, thus avoiding using his credit card, usually mandatory for vehicle rentals.

Hamilton also transported meth from Spokane to Kalispell and at times picked up meth from Lake at the Kalispell trailer. She sold approximately five ounces of meth for Lake in the Kalispell area.

In some cases, she was paid in meth for getting cars off the books for Lake. She got to know Lake through Fraleigh, who was friends with her boyfriend, Donovan Dehnel, another member of the ring.

Bennett provided security on these runs. He even kidnapped Shirley on one occasion to ensure repayment of a debt to Lake.

Quantities of the drug being imported into the Flathead Valley quickly escalated as demand increased.

According to Bray, a typical personal single use is 1 to 2 grams at a time. An 8-ball, or 1/8 of an ounce, is the typical purchase for a few people using together.

In the Kalispell area, the street value for a gram is about $100. Street value for an 8-ball runs between $200 to $300. Ounce quantities generally mean a person is dealing, and meth typically runs about $1,000 per ounce. A pound of meth sells for around $10,000.

The drugs were brought to the Evergreen mobile home, which was used as a drop location. It was owned by Shirley and leased to Freleigh and his girlfriend, then ultimately rented to Lake.

People came to the trailer to purchase meth for resale and for their own personal use. Among them were Dehnel, who also sold gram quantities of meth, and Pena, who received meth to sell in the Libby area.

Transactions in the thousands of dollars took place. Money from these transactions was wired via Western Union telegram back to Lake in Spokane.

According to Bray, by the end of the summer of 2008, authorities had enough information to begin making arrests.

According to Papke and Bray, arresting the parties involved was fairly uneventful. There was no dramatic raid on the mobile home. Suspects were apprehended one by one at their respective homes.

Beginning in summer 2009, Molloy got the cases in federal court and sentenced the drug-ring participants on charges of conspiracy to distribute methamphetamine: 

n On July 10, Fraleigh was sentenced to 120 months in prison and five years of supervised release.

n On Sept. 21, Bennett was sentenced to 200 months in prison and five years of supervised release. The same day, Dehnel was sentenced to 24 months in prison with three years of supervised release.

n Lake and Hessler were sentenced four days later. Lake received 156 months in prison and five years of supervised release. Hessler got 36 months in prison and five years of supervised release.

n On Oct. 2, Pena received a prison term of 188 months and five years of supervised release.

n On Oct. 16, Hamilton, was sentenced to 60 months in prison and four years of supervised release.

n The final player to be sentenced was Scott Shirley, who on Nov. 20 received a sentence of 64 months in prison with five years of supervised release.

The investigation was a cooperative effort between the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northwest Montana Drug Task Force; the U.S. Immigration and Customs Enforcement; The Montana Division of Criminal Investigation/Narcotics Investigation Bureau; the Flathead County Sheriff’s Office; and the Lincoln County Sheriff’s Office.

Reporter Melissa Weaver may be reached at 758-4441 or by e-mail at mweaver@dailyinterlake.com