Billings, Montana – A Yellowstone County man has admitted to a federal drug trafficking charge after an investigation into bank fraud and stolen firearms unexpectedly led authorities to a methamphetamine distribution operation in rural Montana.
Federal prosecutors announced that 49-year-old John Paul Schiemding of Worden pleaded guilty to one count of possession with intent to distribute methamphetamine.
The charge carries serious penalties. Schiemding faces between five and 40 years in federal prison, a possible fine of up to $5 million, four years of supervised release, and a $100 special assessment.
U.S. District Judge William W. Mercer accepted the plea and will determine the final sentence after reviewing federal sentencing guidelines and other legal factors. A sentencing date will be scheduled at a future court appearance. Schiemding was released back to supervision while awaiting sentencing.
Investigation Began With Bank Fraud Case
According to court documents, the investigation did not initially focus on Schiemding.
The case began on Aug. 6, 2025, when Billings police arrested a man suspected of attempting to cash fraudulent checks at a local bank. During a search of the suspect’s vehicle, officers discovered additional fraudulent documents along with a stolen handgun.
While being held in jail, the suspect allegedly sought to raise money for bond. Prosecutors said he instructed his girlfriend to sell stolen firearms and other property to Schiemding.
Investigators already knew Schiemding’s name. The Eastern Montana High Intensity Drug Trafficking Area Taskforce had previously identified him as someone with a history of meth trafficking activity in the Billings area.
Using court-authorized warrants, investigators began tracking vehicles and cell phone activity connected to the suspect’s girlfriend and another woman involved in the case.
Those efforts eventually led law enforcement to two locations: Schiemding’s residence in Worden and a Billings home belonging to his father.
Authorities later interviewed the two women, who reportedly told investigators they had regularly purchased methamphetamine from Schiemding.
Search Warrants Reveal Drugs And Stolen Guns
On Sept. 17, 2025, investigators executed search warrants at both properties.
At the Billings residence, officers discovered what prosecutors described as a “large cache of stolen firearms.”
Meanwhile, the search of Schiemding’s Worden residence uncovered evidence consistent with drug trafficking activity.
Investigators found methamphetamine and various pieces of drug paraphernalia throughout the home. Among the items recovered was a torn vacuum-sealed plastic bag containing water and methamphetamine residue that had been placed in a sink.
Authorities took the unusual step of removing the sink’s P-trap and collecting water from inside it. Testing later confirmed the presence of methamphetamine.
Officers also recovered glass pipes containing meth residue, a digital scale commonly associated with drug distribution, and cash.
Federal prosecutors alleged that the evidence supported claims that Schiemding was regularly selling methamphetamine from his rural residence.
Assistant U.S. Attorney Colin Rubich is prosecuting the case.
The investigation was conducted by the Billings Police Department, the Yellowstone County Sheriff’s Office, and the Eastern Montana High Intensity Drug Trafficking Area Taskforce.
The guilty plea marks a significant development in an investigation that began with allegations of bank fraud but eventually exposed a broader criminal operation involving stolen firearms and methamphetamine trafficking in Yellowstone County. Sentencing will take place at a later date, where Schiemding will learn how much time he could spend in federal prison.
