Billings, Montana – A Billings man who authorities say was transporting a large quantity of methamphetamine from Arizona into Montana has admitted to a federal drug charge and now faces a lengthy prison sentence.
According to Acting U.S. Attorney Mark Steger Smith, 45-year-old Jason Daniel Schauer pleaded guilty to one count of possession with intent to distribute methamphetamine.
The charge stems from a traffic stop near Livingston in 2025 that ultimately led investigators to discover approximately five pounds of methamphetamine hidden inside a vehicle.
Schauer faces a mandatory minimum sentence of 10 years in federal prison, a fine of up to $10 million, five years of supervised release, and a $100 special assessment.
Timothy J. Cavan presided over the proceedings. A sentencing date has not yet been announced, and Schauer remains on pretrial release while awaiting further court action.
Traffic stop leads to drug investigation
Federal prosecutors alleged that Schauer was involved in transporting methamphetamine from Arizona to Montana.
The investigation began on July 3, 2025, when a Montana Highway Patrol trooper observed Schauer and a companion driving recklessly near Livingston.
According to court documents, the trooper witnessed the pair “tear through a (gas station) parking lot at a high rate of speed.” The traffic stop that followed led officers to notice items believed to be drug paraphernalia inside the vehicle.
Those observations increased law enforcement’s suspicions that drug trafficking activity might be involved. Investigators then sought and obtained a search warrant for the vehicle.
During the search, troopers discovered five cellophane-wrapped bundles concealed beneath the rear seat. The packages weighed approximately five pounds in total.
Laboratory testing conducted by the Drug Enforcement Administration later confirmed the substance was methamphetamine weighing 2,202 grams.
Defendant admitted details of purchase
Following the discovery, Schauer was interviewed by agents with the Montana Department of Criminal Investigation.
According to prosecutors, Schauer told investigators that he had paid $4,500 for the methamphetamine. He also stated that he obtained the drugs in Phoenix, Arizona, from individuals he described as being “cartel associated.”
The guilty plea resolves the charge against Schauer, although his final punishment will be determined at a future sentencing hearing after the court reviews federal sentencing guidelines and other legal factors.
The case was investigated by the Montana Highway Patrol, the Montana Department of Criminal Investigation, and the Drug Enforcement Administration. Prosecutors with the U.S. Attorney’s Office are handling the case.
The prosecution is another example of federal and state law enforcement agencies working together to target the transportation and distribution of illegal narcotics moving through Montana. If sentenced to the maximum penalties allowed under federal law, Schauer could spend a significant portion of his life behind bars.
