KATHRYN ELISABETH DAMON AND HEATHER MARTELL SENTENCED IN U.S. DISTRICT COURT

Bill Mercer, United States Attorney for the District of Montana, announced today that during a federal court session in Helena, on August 23, 2006, before Senior U.S. District Judge Jack D. Shanstrom, KATHRYN ELISABETH DAMON, age 39, and HEATHER MARTELL, age 22, residents of Wolf Point, appeared for sentencing.

DAMON was sentenced in connection with her guilty plea to theft to a term of:

* ? Probation: 3 years
* ? Restitution: $10,000
* ? Special Assessment: $100

MARTELL was sentenced in connection with her guilty plea to theft to a term of:

* ? Probation: 3 years
* ? Restitution: $10,000
* ? Special Assessment: $100

In an Offer of Proof filed by the United States, the government stated it would have proved at trial the following:

From the summer of 2004 until January 2005, MARTELL and DAMON worked at the Git-N-Go convenience store in Wolf Point, which is within the boundaries of the Fort Peck Indian Reservation.

During that time period, MARTELL and DAMON stole money and lottery tickets from the store and used the stolen proceeds to purchase methamphetamine and to gamble. MARTELL and DAMON helped each other purchase methamphetamine, shared the methamphetamine they purchased, and used the methamphetamine together at the store.

On January 11, 2005, the proprietor of the Git-N-Go store realized there were significant cash shortages and cash advances relating to MARTELL and the shifts that she worked at the store. In addition, just prior to January 11, 2005, he had received a bonus from the Montana Lottery based upon a large increase in the store's distribution of lottery tickets. However, he was not aware that the store had increased its lottery ticket sales.

The manager confronted MARTELL with his suspicions. MARTELL immediately became upset and stated that she would pay the money back. The manager then fired MARTELL. A few days later, MARTELL called the manager and told him that she was not the only person stealing money from the store.

The manager reviewed the store's surveillance video and determined that DAMON, as well as MARTELL, had acted in a suspicious manner inside the store.

On February 1, 2005, DAMON was interviewed by law enforcement personnel and admitted to sharing methamphetamine with MARTELL at the store. DAMON stated that she and MARTELL took turns purchasing the methamphetamine. DAMON admitted that she stole money from the store's till and attempted to cover up the thefts by ringing up "no sales" on the cash register.

Following the manager's discovery of the theft of lottery tickets from the Git-N-Go convenience store, he contacted the Montana Lottery Commission. The lottery commission then reviewed its records of the lottery activity at the store beginning in March 2004, and extending beyond the termination of the employment of MARTELL and DAMON. This review revealed a theft of between $11,000 and $13,000 worth of assorted Montana scratch lottery tickets during that time period.

Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DAMON and MARTELL will likely serve all of the time imposed by the court. In the federal system, DAMON and MARTELL do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.

Assistant U.S. Attorneys Craig W. Haller and Anna S. Peckham prosecuted the case for the United States.

The investigation was a cooperative effort between the Federal Bureau of Investigation, the Fort Peck Criminal Investigation Division, and the Wolf Point Police Department.