Grimy Times

Mitch Buday, Wetlands Fraud, Montana 2002

Published October 11, 2000

Missoula, MT – A Montana developer and his associates faced years of legal battles and, in one case, international flight, after illegally developing a residential area on protected wetlands, according to federal court records. The case, centered around the Mountain Valley Ranch development, exposed a scheme to defraud both landowners and environmental regulators, culminating in prison time, hefty fines, and a four-year run from justice.

The initial indictment in October 2000 targeted Mitch Buday, alleging violations of the Clean Water Act (33 U.S.C. 1311) for unlawfully filling wetlands and discharging pollutants into Fred Burr Creek, a tributary of the Clark Fork River. Prosecutors argued Buday knowingly proceeded with construction of the recreational home sites – properties marketed nationally for “several hundred thousand dollars each” – while falsely claiming all necessary environmental permits were in place. Buday ultimately pled guilty to the CWA charge in December 2000 and received 48 months probation, 200 hours of community service, and was ordered to pay $36,462 in restitution to the EPA.

However, Buday was far from the only player involved. David Allan Phillips, a key figure in the development, faced a far more extensive list of charges. Indicted in March 2001, Phillips was accused of not only violating the Clean Water Act but also conspiracy (18 U.S.C. 371), multiple forms of fraud (18 U.S.C. 1341, 18 U.S.C. 1343), and even racketeering (18 U.S.C. 1956) under the RICO Act. A jury convicted Phillips on all 15 counts in July 2001, leading to a three-month prison sentence, 60 months probation, a $20,000 fine, and $43,000 in restitution.

Escalating Legal Troubles & Escape

Phillips’s legal woes didn’t end there. In 2003, he was accused of violating his probation by submitting false financial affidavits to both the U.S. District Court of Montana and the 9th Circuit Court of Appeals. This prompted a new indictment for perjury (18 U.S.C. 1623), and after a probation revocation hearing, Phillips was sentenced to 33 months in federal prison. But in March 2004, while incarcerated at a federal facility in Sheridan, Oregon, Phillips *escaped*. He remained a fugitive for four years, evading authorities until his apprehension in Mexico in March 2008 – a collaborative effort between Mexican law enforcement, U.S. Marshals, and the EPA’s Criminal Investigation Division.

Following his extradition, Phillips pled guilty to escape (18 USC 751) in November 2008, receiving an additional 12 months imprisonment and 24 months probation. His final sentencing, in July 2009, added 27 months to his incarceration and another 36 months of probation, along with a further $3,690 in restitution. Zinger, another associate, received a lighter sentence of three months probation and $2,500 restitution to the landowner after pleading guilty to a CWA violation in April 2001.

Key Facts

The Mountain Valley Ranch case serves as a stark reminder of the potential consequences of environmental crimes and the lengths to which individuals will go to profit from illegal development. The investigation and prosecution, spanning nearly a decade, highlight the EPA’s commitment to enforcing environmental regulations and holding perpetrators accountable, even when it requires international cooperation and years of relentless pursuit.

Source: EPA ECHO Enforcement Case Database

Source: https://echo.epa.gov/enforcement-case-report?case_id=CR_1099