Billings, Montana – Three Yellowstone County residents have been sentenced to federal prison after pleading guilty to fentanyl distribution charges stemming from an investigation into drug dealing in the Billings area.
Acting U.S. Attorney Mark Steger Smith announced the sentences for Heather Ostler, 39, Louis Lester Parker, 36, and Steven Craig Lance, 41. All three had previously pleaded guilty to one count each of possession with intent to distribute fentanyl.
U.S. District Judge William W. Mercer presided over the cases and imposed the sentences this week.
Ostler, who entered her guilty plea in March 2026, was sentenced Thursday to five months in prison. After completing her prison term, she will be required to serve four years of supervised release.
Parker pleaded guilty in April 2026 and received the longest prison sentence among the three defendants. He was sentenced Thursday to two years and eight months behind bars, followed by four years of supervised release.
Lance, who also pleaded guilty in April, was sentenced Friday to one year and three months in federal prison. His sentence will also be followed by four years of supervised release.
Investigation uncovered hundreds of fentanyl pills
According to allegations contained in court documents, the case developed as authorities investigated fentanyl distribution activity in Montana. Investigators determined that Ostler, Parker and Lance were involved in dealing fentanyl in the Billings area.
A major development occurred on June 3, 2025, when law enforcement stopped Ostler and Parker. During the encounter, investigators discovered 178 fentanyl pills inside Ostler’s purse.
That discovery led authorities to obtain a search warrant for the residence shared by Ostler and Parker. Investigators searched the property and found another 540 fentanyl pills inside the pair’s bedroom. Combined with the pills recovered from Ostler’s purse, authorities found 718 pills during the stop and subsequent residential search.
Lance’s involvement was documented through a separate controlled drug transaction that occurred shortly before the June search.
On May 15, 2025, Lance sold 88 fentanyl pills to a confidential informant, according to the government’s allegations. Law enforcement officers were watching Lance’s movements and observed him meeting with Ostler before he completed the sale to the informant.
Following the transaction, the confidential informant told investigators that Lance had obtained the fentanyl pills from Ostler and Parker before selling them.
The investigation eventually resulted in federal charges and guilty pleas from all three Yellowstone County residents. Ostler entered her plea first in March, while Parker and Lance followed with their guilty pleas in April.
Assistant U.S. Attorney Tom Godfrey prosecuted the cases on behalf of the federal government.
The investigation was carried out by the Eastern Montana High Intensity Drug Trafficking Area Task Force. With sentencing now completed, each defendant faces a prison term followed by four years of federal supervision.