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Blackhair’s 18-Month Extortion Sentence: Reservation Businesses Bled Dry
SALT LAKE CITY, Utah – Leallen Blackhair, 47, of Utah, has been sentenced to 18 months’ imprisonment, three years’ supervised release, and $18,000 in restitution after admitting to extorting oil and gas businesses operating on the Uintah and Ouray Reservation.
According to court documents and statements made at the change of plea hearing, Blackhair used his position as the Compliance Supervisor for the Energy and Minerals Department of the Ute Tribe to extort $109,925 from 2010 to 2013. He would offer to reduce fines for businesses that paid him personally, using his position to induce and attempt to induce multiple companies to make payments.
Blackhair’s responsibilities included issuing fines to businesses that violated their access permits and business licenses. Between August 2010 and May 2013, he extorted sixty-six payments totaling $109,925. In December 2022, Blackhair pleaded guilty to eight counts of extortion and one count of attempted extortion.
As the gatekeeper for the Ute Tribe’s oil and gas industries, Blackhair determined whether businesses could return to work on the reservation. Through his extortion scheme, he more than doubled his $50,000 salary and targeted mostly small, “mom and pop” businesses. The extorted funds were spent on trips to Disneyland, Legoland, Las Vegas, Disney World, SeaWorld, Universal Pictures, airfare, hotels, rental cars, dining, and shopping.
The case was investigated by the FBI Salt Lake City Field Office’s Vernal Resident Agency. Assistant United States Attorney Cy H. Castle of the U.S. Attorney’s Office for the District of Utah prosecuted the case. Blackhair was sentenced on March 22, 2024, before Federal District Court Judge Jill N. Parish.
The Ute Tribe relies heavily on the oil and gas industries, with 95% of their revenue coming from these operations. Blackhair’s actions have left a trail of financial devastation in his wake, with many small businesses struggling to recover from the loss.
As the investigation and prosecution of Blackhair’s crimes come to a close, the community is left to pick up the pieces and rebuild. The sentence handed down is a small measure of justice for the businesses and individuals affected by Blackhair’s actions.
The FBI and the U.S. Attorney’s Office are committed to holding those in positions of power accountable for their actions. This case serves as a reminder of the importance of transparency and accountability in government and business.
Key Facts
- State: Utah
- Agency: DOJ USAO
- Category: Public Corruption|White Collar Crime|Organized Crime
- Source: Official Source ↗
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