Mitch Buday, Wetland Pollution, MT 2002

MONTANA – A scheme to illegally develop a Montana wetland into luxury home sites culminated in years of legal battles, probation violations, escape, and eventual apprehension, according to federal court records reviewed by GrimyTimes. The case, originating in 2000, involved the filling of wetlands at the “Mountain Valley Ranch” and the subsequent discharge of pollutants into Fred Burr Creek, a tributary of the Clark Fork River.

Mitch Buday, the initial defendant, was indicted in October 2000 on six counts of violating the Clean Water Act (33 U.S.C. 1311) for the illegal discharge. He later pled guilty and, in April 2001, received a sentence of 48 months probation, 200 hours of community service, and was ordered to pay $36,462 in restitution to the Environmental Protection Agency (EPA). However, Buday was far from the only player in this complex environmental crime.

The investigation broadened to include David Allan Phillips, who faced a staggering 27 counts including Clean Water Act violations (33 U.S.C. 1311), conspiracy (18 U.S.C. 371), various forms of fraud (18 U.S.C. 1341, 18 U.S.C. 1343), and even charges under the Racketeer Influenced and Corrupt Organizations Act (RICO – 18 U.S.C. 1956). Phillips, along with a co-defendant Zinger who received a three-month probation sentence and $2,500 in restitution, marketed the properties nationally, falsely claiming all necessary permits were in place. A jury convicted Phillips on 15 counts in July 2001.

Phillips’ initial sentence of three months incarceration, 60 months probation, a $20,000 fine, and $43,000 in restitution proved insufficient to ensure compliance. In February 2003, his probation was revoked after evidence surfaced indicating he’d provided false financial information to both the U.S. District Court and the 9th Circuit Court of Appeals. This led to an additional 33-month prison sentence. But the legal drama didn’t end there. In March 2004, Phillips *escaped* from federal prison in Oregon, becoming a fugitive for four years.

A collaborative effort between Mexican law enforcement, U.S. Marshals, and the EPA’s Criminal Investigation Division (EPA-CID) finally led to Phillips’ capture and deportation from Mexico in March 2008. He subsequently pled guilty to escape (18 USC 751) in November 2008, receiving another 12 months incarceration and 24 months probation. Finally, in July 2009, Phillips was sentenced to a combined 27 months incarceration and 36 months probation, with an additional restitution order of $3,690. The case serves as a stark reminder of the lengths some developers will go to circumvent environmental regulations, and the enduring consequences that follow.

Key Facts

Defendant(s): Mitch Buday, David Allan Phillips, Zinger
Location: Mountain Valley Ranch, Montana
Year of Initial Indictment: 2000
Crimes Committed: Clean Water Act violations, conspiracy, fraud, RICO, escape, perjury
Statutes Violated: 18 U.S.C. 1956, 18 U.S.C. 1343, 33 U.S.C. 1311, 18 U.S.C. 1341, 18 U.S.C. 371, 18 USC 751, 18 U.S.C. 1623
Penalties: Probation, community service, fines, restitution, imprisonment (up to 33 months + additional time for escape), and lengthy periods of supervised release.
The properties were marketed with false claims of permit approval.

Source: EPA ECHO Enforcement Case Database

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