Case 4:14-cr DLH Document 44 Filed 05/30/14 Page 1 of 39 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NORTH DAKOTA NORTHWESTERN DIVISION

Transcription

1 Case :-cr-0000-dlh Document Filed 0/0/ Page of UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NORTH DAKOTA NORTHWESTERN DIVISION United States of America, ) ) Plaintiff, ) ) vs. ) File No. :-mj-0 ) James Terry Henrikson, ) ) Defendant. ) TRANSCRIPT OF DETENTION HEARING Taken at United States Courthouse Bismarck, North Dakota January, 0 BEFORE THE HONORABLE CHARLES S. MILLER, JR. -- UNITED STATES DISTRICT COURT MAGISTRATE JUDGE --

2 Case :-cr-0000-dlh Document Filed 0/0/ Page of APPEARANCES MR. GARY LEE DELORME U.S. Attorney's Office 0 E. Rosser Ave. P. O. Box Bismarck, North Dakota 0-0 FOR THE UNITED STATES MR. WILLIAM D. SCHMIDT Assistant Federal Public Defender Federal Plaza North Third Street, Suite Bismarck, North Dakota 0 FOR THE DEFENDANT GOVERNMENT WITNESS Page POSTAL INSPECTOR THOMAS IRVIN Direct Examination by Mr. Delorme Cross-Examination by Mr. Schmidt Examination by The Court Redirect Examination by Mr. Delorme Certificate of Court Reporter - Page

3 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0 0 (The above-entitled matter came before the Court, The Honorable Charles S. Miller, Jr., United States District Court Judge, presiding, commencing at : p.m., Tuesday, January, 0, in the United States Courthouse, Bismarck, North Dakota. The following proceedings were had and made of record in open court with the defendant present:) THE COURT: We'll go on the record in Magistrate's Number --, United States of America versus James Terry Henrikson. Present in court is the defendant, along with his court-appointed counsel, Mr. Schmidt. Mr. Delorme is here on behalf of the United States. This is the time that the Court set for the detention hearing in this matter. The Court has received and reviewed a copy of the Pretrial Services' report that will be made a part of the record of this proceeding. Mr. Delorme, you may proceed. MR. DELORME: Thank you, Your Honor. The United States is going to call Inspector Thomas Irvin to the stand. POSTAL INSPECTOR THOMAS IRVIN, having been first duly sworn, was examined and testified as follows: DIRECT EXAMINATION BY MR. DELORME: Q. Inspector Irvin, could you please state and spell your name for the record?

4 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 A. Thomas Irvin, I-R-V-I-N. Q. And what is your current occupation? A. United States postal inspector. Q. And how long have you been a postal inspector? A. Since 00. Q. Inspector Irvin, are you familiar with the case entitled United States of America versus James Terry Henrikson? A. I am. Q. And how are you familiar with this matter? A. Sometime in June of 0, this past year, I became involved in a fraud investigation with several other agencies into the defendant's business activities, as well as his wife's, Sarah Creveling, C-R-E-V-E-L-I-N-G. Q. And just for a little background, Inspector Irvin, can you just give us a short, like one-or-two-minute version of the investigation and what you were looking at? A. The initial investigation, which joined with other agencies, including IRS and Homeland Security, involved mail fraud, wire fraud, and money laundering. And subsequent to that investigation, we developed information through talking with witnesses regarding the defendant's possible possession of firearms. Q. And throughout your investigation, were you aware that Mr. Henrikson had prior felonies that prohibited him from -- A. I was.

5 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 Q. -- possessing firearms? A. I was. Q. And just to give us a little bit better of a background of your information, can you just kind of explain a little bit more of how you knew that Mr. Henrikson -- or how you came to know that Mr. Henrikson was possessing firearms? A. One of the witnesses that we interviewed pursuant to our fraud investigation indicated that the defendant, in fact, slept with a firearm and held a safe with several firearms at the residence. Q. Did you have any other information that indicated that he was possessing firearms? A. On January th I applied for a search warrant regarding the fraud investigation, as well as evidence of firearms and ammunition that was approved by this Court, which led us to execute a search warrant on January th at the defendant's residence in Watford City. Q. And through the search warrant, were you able to recover any firearms? A. We were. Pursuant to the search warrant we located a safe located in the shared master bedroom. The safe contained seven firearms, as well as a large amount of ammunition. There was a magazine recovered from the master -- a master bedroom closet as well that contained. caliber ammunition. Q. And just so the Court is aware, you said seven firearms

6 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 were found during this search warrant? A. That were located within the safe, correct. Q. Am I correct, Inspector Irvin, that there were three semiautomatic handguns that were found as part of the seven? A. That's correct. Q. And two rifles as well? A. Yes, there was a rifle and an assault-style rifle as well. Q. When you say "assault-style rifle," you're talking about like the -- A. AR. Q. -- AR types? Q. And then to round out the seven, there were two shotguns as well? Q. And one of those shotguns had a large capacity for ammunition, correct? A. It was found to contain -gauge shotgun rounds. Q. So not your run-of-the-mill hunting shotgun. A. I think it's phrased as a home defense type shotgun. Q. Now, part of the reason why we're here today, Inspector Irvin, is to help the Court determine if Mr. Henrikson is a threat to the community or a danger to -- of nonappearance. Insofar as a threat to the community, during your investigation did you, I guess, come upon any information that may help the

7 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 Court understand and determine if Mr. Henrikson is a threat to the community? A. As part of our investigation we've had conversations with law enforcement and review of records of law enforcement conducting other investigations, in particular, the shooting murder of Douglas Carlile in Washington. MR. SCHMIDT: Your Honor, I'm -- I understand why the Government is asking this question, but I don't believe that Mr. Henrikson has been charged with anything. His name has popped up repeatedly in The Bismarck Tribune, but as far as I know, he's not been charged with anything. The charge that we are in front of the Court today is a felon in possession charge, whether or not he should be released, and if so, under what conditions. So I would object to this postal inspector talking about anything that may or may not have been communicated to him from Washington State authorities because he's not been charged with anything. THE COURT: Well, I'm going to overrule the objection. Under the rules that govern this type of proceeding, the Court is not bound by the strict Rules of Evidence. The Court can consider hearsay testimony. On the other hand, if it's hearsay testimony, the Court has to give it whatever weight it feels it deserves under the circumstances, and so I'm going to listen to the testimony. Whether or not he's been charged or not charged with regard to that offense is

8 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0:0 0:0 0 0 not material. You may proceed. Q. (MR. DELORME CONTINUING) Mister -- or Inspector Irvin, in regards to Mr. Carlile out in Washington, what information did you obtain or gather to indicate that there may have been some threats made against Mr. Carlile by the defendant in this particular matter? A. I've reviewed reports and spoken with other law enforcement that indicated Mr. Carlile's son was, in fact, approached by the defendant regarding the payment of approximately $00,000 over some business dealings that the deceased, Douglas Carlile, had with the defendant regarding Kingdom Dynamics and business entities operating in North Dakota, as well as Washington. Q. And was there a verbal threat made in that particular instance? A. There was. The son was interviewed and indicated that Mr. Henrikson, the defendant, approached him demanding the money and made a statement along the lines of something bad could happen to you and your family. Q. Okay. And that is alleged to have been made by Mr. Henrikson, himself, to Skyler Carlile? A. That's correct. Q. And Skyler Carlile is the son of Douglas Carlile. A. Correct. Q. Douglas Carlile is the individual that was murdered in

9 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0:0 0:0 0: 0: 0: 0 0 Washington? Q. Now, did Douglas Carlile ever make any statements in reference to Mr. Henrikson? A. During the interview his son -- we learned that his son indicated his -- Douglas Carlile had told him that if anything should happen to him or if he ends up with bullets in his back, that -- tell everybody that James Henrikson was involved. Q. Now, as part of your investigation here in North Dakota, did you or any of the agents or agencies that you work with, did they have any contact with any witnesses that provided any further indication that Mr. Henrikson wished harm upon Douglas Carlile? A. Other interviews were conducted. A former employee was interviewed, who heard the defendant make threats that he wanted to kill Douglas Carlile and hurt his whole family. Q. Now, as part of your investigation, Inspector Irvin, are you familiar with another investigation that is taking place or is still in progress here in the state of North Dakota? A. Yes, I am. Q. And that case involves an individual by the name of K.C. Clarke, correct? A. Correct. Q. Could you give us an idea of what that case is about? A. K.C. Clarke was a former operations manager for the

10 Case :-cr-0000-dlh Document Filed 0/0/ Page 0 of 0: 0: 0: 0: 0: 0 0 defendant's business who went missing sometime in February of 0 and has been not located since. Q. Do investigators have any idea of his last-known location? A. I'm aware of cellphone analysis that was conducted regarding that investigation, which indicated the last known place the defendant's phone was en route to their business location. Further cellphone analysis shows that the phones were placed later on in the same area in Williston, North Dakota, which is, in fact, where the -- K.C. Clarke's abandoned vehicle was located. Q. And nobody has heard from Mr. Clarke since? A. No. Q. Did Mr. Clarke have any conversations or leave any messages with anyone prior to his disappearance? A. His roommate was interviewed, and he made a statement that if something should happen to him, James Henrikson did it. Q. Are you aware of any other potential threats of harm or conversations that were overheard and provided to law enforcement regarding Mr. Henrikson and any other individuals? A. In various interviews we've learned that -- of threats made against Sarah Creveling, his wife, as well as another individual, Tex Hall. Q. And were these similar to the -- in nature to the one that you described with Douglas Carlile, where somebody had overheard him saying something about wanting these people dead 0

11 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 or taken care of? A. In regards to Creveling, yes. And I believe the statement regarding Tex Hall was that he -- he's looking for somebody to have him taken care of. Q. Sarah Creveling is Mr. Henrikson's wife, correct? A. Correct. Q. Now, Mr. Henrikson was arrested the weekend before last by federal agents, correct? A. Yes, he was. Q. Were you present for the arrest? A. I was not. Q. Did you talk directly to the agents that were involved in the arrest? A. I have. Q. Did you obtain any information from them regarding how the arrest was conducted? A. I learned that during the initial arrest the defendant did not initially comply with law enforcement's commands, and, in fact, he had his hand in his pocket, ultimately complying. Q. Was he interviewed after his arrest? A. He was. Q. Was he asked about his noncompliance during the attempt to arrest him? A. He was, and there was conversation alluding to the fact that, what would have happened if he had not removed his hand

12 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 from the pocket, and the responding investigators -- or the arresting agents believed that to mean a conversation about suicide by cop. Q. So that's the context that they believed the conversation was during that post-arrest interview? Q. Inspector Irvin, just moving on to a threat of nonappearance, are you aware of any other information the Court should be aware of regarding Mr. Henrikson and his -- the threat that he may not appear if he's released today? A. I am. One of the investors that we've interviewed pursuant to the case had a prior conversation with the defendant discussing a family member that was, in fact, arrested -- a family member of the investor that was arrested in which the investor discussed this with the defendant, and ultimately this family member fled from prosecution. The defendant told him that that's what he would have done and he has a stash placed away, and if they ever need to run, nobody would find them. Q. Okay. Just so I understand this, the investor was having a conversation with Mr. Henrikson and indicated to Mr. Henrikson that he had a relative that fled from prosecution. A. The investor had a -- Q. The investor had.

13 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 Correct. Q. And Mr. Henrikson's response was it's what he would have done. Q. Now, through your investigation, did you discover anything else in particular to Mr. Henrikson and his ability to adapt to different names that may have some significance for the Court? A. Our investigation has revealed that he's -- the defendant has utilized many different names and aliases, with the most recent name change utilizing the name James Vanderbilt as conducting investment business in the Bismarck area. Q. You got a ballpark figure of how many names he uses? A. You know, off the top of my head I would say in excess of ten. Q. Are you aware, Inspector Irvin, of -- through your investigation, your talking with witnesses, other agents talking with witnesses, are there any other individuals that are -- I guess indicated or verbalized any fear of harm to themselves from Mr. Henrikson? A. Several of the witnesses and individuals we've interviewed pursuant to this case have indicated their personal safety fears, and, in fact, some of the witnesses are, in fact, carrying firearms for their protection. Q. So you actually have some witnesses that are actually carrying right now because they're -- they're in fear of Mr.

14 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 Henrikson? Q. One last thing, Inspector Irvin. When Mr. Henrikson was interviewed after his arrest the weekend before last, did he provide anything at all that may have an effect on the Court's decision today during that interview? A. He informed the arresting agents that additional people were in danger due to his arrest and that it had ties to organized crime from California. Q. Okay. So somehow he's got ties to organized crime in California, and that's going to have an effect on the safety of others? A. That's what he relayed to the arresting agents. MR. DELORME: I have no further questions, Your Honor. THE COURT: Mr. Schmidt. CROSS-EXAMINATION BY MR. SCHMIDT: Q. Mr. Irvin, did you seek the warrant that was ultimately issued by this Court? A. I did. Q. And do you have that warrant with you? A. I do not have it with me. Q. I don't have -- we have not gotten any discovery from the United States, so I've not seen it either, but my question is

15 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0:0 0:0 0 0 whether or not the warrant -- did it require you to knock before you entered? A. It did not. Q. Did it allow you to access the safe? Q. And if I recall from the Affidavit that was attached to the Complaint, the individuals that executed the warrant were not able to access or get into the safe, so they had to get the combination? A. Correct. Q. Okay. And you weren't present when that search was conducted, is that correct? A. I was present in the residence. I don't believe I was present in the actual room when -- when those processes were made. Q. And were all of the firearms located in the safe? Q. And I assume it must be a rather large safe if, in fact, it held seven firearms, some semiautomatic handguns, some rifles, those kinds of things. A. I would say it was, you know, approximately five-feet tall, maybe, by two-to-three-feet wide. Q. And you had nothing to do with securing the combination to gain access to the safe, is that correct? A. I did not.

16 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0:0 0:0 0:0 0: 0: 0 0 Q. How many individuals in addition to yourself were present when the warrant was executed? A. I would have to review my records, but off the top of my head I would say maybe during the initial securing of the property. Q. And was Mr. Henrikson present when you went to execute the warrant? A. He was not. Q. And did he arrive at some point while the warrant was being executed? A. No, he did not. Q. Where did you pick him up? A. I was not the arresting officer, but he was -- it's my understanding he was arrested in Mandan. Q. So the search, as I understand it, occurred at a residence in Williston? A. Watford City. Q. Watford City. Q. Okay. And that was a residence that he was living at? Q. And the warrant that was issued was a no-knock warrant, which gave you the right to access the safe. And as far as you know, the safe was locked, so law enforcement had to get the combination.

17 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 A. Correct. Q. And were you present or were you involved in the arrest of Mr. Henrikson in Mandan? A. I was not. Q. And did that happen the same day? A. I believe that happened Saturday of -- the search warrant was executed on January th, which would have been a Tuesday. I believe he was ultimately arrested that Saturday. Q. Which would have been the th? A. That sounds right. Q. Okay. So about ten days later? A. I would say six or seven days. Q. Okay. And you weren't present when he was arrested. A. I was not. Q. You also talked about the alleged homicide in Washington State, and I'm assuming you're aware that a fellow by the name of Timothy Suckow has been charged with regard to that homicide. A. That's correct. Q. And did you at any time personally speak with Mr. Carlile's son, Skyler? A. I have not personally spoken with him. Q. So all of the information that you've provided today relates to information that you've received secondhand from law enforcement in the state of Washington.

18 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 A. It's through investigators involved in our case, as well as investigators there -- Q. I understand all of that. A. -- and review of -- Q. My question -- my question, very simply, have you ever talked to Skyler Carlile? A. I have not. Q. And so your basis and the testimony that you gave today is based primarily on information that other individuals, other law enforcement individuals, other individuals that are working with you have communicated to you? Q. So what Skyler Carlile told or didn't tell somebody, you're just -- what you've told the Court today is based on what someone else has told you. A. What I've told the Court today is based on what was provided to other law enforcement officers and documented in their official investigative reports. Q. And I understand all that. Do you have those documents with you? A. I do. Q. Okay. And so the information, again, that you have communicated in court today is based primarily on information that law enforcement officials in Washington and those individuals that you are working with with regard to the fraud

19 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 investigation have acquired in the context of talking with Mr. Carlile. A. A portion of what I've testified to is, yes, correct. Q. Not all those individuals -- all of those law enforcement individuals have spoken to Skyler Carlile, have they? A. I don't believe so. Q. And apparently that statement that was made by Skyler Carlile was made in June of last year, June of 0? A. I don't know the exact date off the top of my head. I could -- I could review that report, but around that time period. I would say it's -- it was sometime prior to the murder of Douglas Carlile. Q. And do you know the date of the murder? A. December th. Q. I'll use the term "alleged murder" because Mr. Henrikson hasn't been charged with anything. What time -- what date? A. December th. Q. December th? Q. Okay. And you indicated that there was a contact -- if I understood you, that your initial contact started in June of 0, and at some point Skyler Carlile was spoken to. And do you know whether that conversation occurred before or after his father was -- met his -- met the ultimate demise? A. It was before, I believe.

20 Case :-cr-0000-dlh Document Filed 0/0/ Page 0 of 0: 0: 0: 0: 0: 0 0 Q. Okay. So based on the information you have, the communication with Skyler Carlile happened before Mr. Carlile passed away. A. That is my understanding, correct. Q. Do you know whether law enforcement only spoke to Mr. Skyler Carlile on one occasion? A. I don't know that. Based on a review of the reports that I've received, it appears that it was one occasion. Q. Okay. A. But I cannot say that for sure. Q. And at least based on your recollection of the records, that conversation occurred sometime before Douglas Carlile passed away. A. May I review the report? Q. Sure. A. I could certainly, I believe, clarify that. The conversation occurred between August or September of 0. Q. And Mr. Carlile, Senior, passed away in December of 0? A. Correct. Q. So the conversation then clearly occurred before Mr. Carlile passed away. Q. You also mentioned a person by the name of K.C. Clarke, and if I understood your testimony, that individual has been missing since February of 0? 0

21 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 A. 0. Q. 0. And you have cellphone records that put Mr. Clarke -- I assume it's Mister. Q. -- in the Williston area? Q. And you find an abandoned car in 0 or someone finds an abandoned car in 0? A. Law enforcement conducting that investigation did, correct. Q. Okay. And if I am correct, your investigation as a postal inspector, along with Homeland Security and IRS, didn't start until June of 0. A. My involvement with that investigation did not start until around June of 0. I cannot say with -- Q. So months -- to months after Mr. Clarke disappeared. A. That sounds about right. Q. And so all you have at least up to this point is cellphone records that ultimately lead to the abandoned vehicle, and no one has seen Mr. Clarke since February of 0. A. I'm not privy to every piece of information that that investigation has. Q. Well, you're the Government's witness, and I'm just asking you questions because I want clarification.

22 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 A. Yeah, I guess I can tell you I don't know every piece of information in that case because I'm not the case agent. Q. Okay. A. And I'm not the one handling that investigation. Q. And do you know if that investigation is occurring -- is BCI or the North Dakota Bureau of Criminal Investigation, are they involved in that? A. I believe the Bureau of Criminal Investigation is the investigating agency, and as well as Homeland Security Investigations. Q. Okay. And at least as we sit here today, you're not aware of Mr. Clarke reemerging anywhere in the United States. A. No, I'm not. Q. You also talked about interviewing Mr. Clarke's roommate? Q. Did you conduct that interview? A. I did not. Q. Who did? A. It was either one of the North Dakota Bureau of Criminal Investigations agents or a Homeland Security agent. I do not know the actual investigator that conducted that interview. Q. And I'm -- can I assume that you -- your inability to respond to that question indicates you also have not received any reports relative to that interview? A. I have not.

23 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 Q. So you don't know when that interview occurred, and more importantly, whether it occurred before or after Mr. Clarke disappeared. A. I'm not privy to the specific details, that date and time of that interview. Q. So we've got a situation where you, as a postal inspector, the IRS and Homeland Security, at least those are the agencies that you've mentioned, are investigating fraud and tax matters and those kinds of things, correct? Q. And it's my understanding that there's been a civil action of some sort commenced by the U.S. Attorney's Office in Fargo relative to seizing a lot of Mr. Henrikson's assets. Are you aware of that? I don't believe it has been finalized, but I believe it is -- Q. Well, I received an from Nick Chase on Friday wanting to know whether I would accept service of the subpoena -- A. Okay. Q. -- or the documents. And, of course, I would not, but -- A. Okay. Q. -- but at least I'm aware that there's something in the works, so as far as you know, none of that paperwork has been served on Mr. Henrikson.

24 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0:00 0:00 0:00 0:00 0:0 0 0 A. I believe the U.S. Attorney's Office may have sent that via mail -- Q. Okay. A. -- but I don't believe the process has been finalized. Q. Got you. The other questions that I have is that you indicated that there have been investors that have been interviewed that dealt with Mr. Henrikson. Did you conduct those interviews? A. I conducted some of them. Q. And were they investors primarily from North Dakota? A. No, they were not. Q. Did you meet with these individuals face to face or were they over the phone? A. I met with some of them face to face. Q. And those meetings occur in North Dakota or points beyond? A. Outside of North Dakota. Q. And can you give me an idea when those interviews -- approximately when they occurred? A. Sure. May I review my -- Q. Sure. A. I have some copies of reports here. We re-interviewed several of the individuals on the date of the search warrant. The initial interviews, I do not have those reports with me, but I believe one was around the first or second week of December.

25 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0:0 0:0 0:0 0:0 0:0 0 0 Q. Of 0? A. Of 0. And then one of the other individual investors was interviewed, I believe, several times and met with in person by either an IRS agent or a Homeland Security agent between June of 0 and to this date. Q. The interviews that you were involved in, were they generally face to face? A. I would say it would be a mix. We've conducted interviews telephonically, as well as in person. Q. And so the ones that were face to face, would they have been in North Dakota? A. No. Q. And I'm assuming at this point you're not going to give me the names of the individuals that you interviewed. A. Based on our information of people we interviewed and their fear for their safety, at this point I'm not prepared to do that unless ordered to. Q. I understand. I have to ask the question. And you also mentioned that Mr. Henrikson has used various names. Can you be a little bit more definitive as to not only the number of names, but the time frame that we're talking about? A. I know he's used various different spelling variations of the name "James Henrikson," with a D in the name, with an E, just misspelling that name various different ways. He's also been using the name Cole Johnson, James Vanderbilt, and just

26 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0:0 0:0 0:0 0:0 0:0 0 0 the different variations of Hendrikson with a D or Henrikson, variating the last few spelling -- or the last few letters of the name. Q. You also mentioned that there was some discussion, and I believe it was Mr. Henrikson that provided the information regarding organized crime in California? Q. Was that statement made to you, to law enforcement, or to another witness? A. To the arresting agents that conducted a post-arrest interview. Q. Okay. So that -- that was -- was that after he was arrested in Mandan, and was he being transported -- I don't know where he was detained originally, Burleigh County? A. I believe they interviewed him at the detention facility after he was arrested. Q. In Bismarck? A. I believe it was Burleigh County. Q. Okay. And it was during that interview that the reference to organized crime in California came up. Q. It's not your decision, obviously, Mr. Irvin, to decide whether or not Mr. Henrikson is released or not, but based on the information that you have to date, do you think he's a flight risk?

27 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0:0 0:0 0:0 0:0 0:0 0 0 A. Well, we have evidence from one of the witnesses that we've interviewed that indicated just such, that he was -- Q. Did you interview that person? A. I have interviewed him prior to that -- or, excuse me. Q. Well, I understand that, but did he tell you when you interviewed him that he was a flight risk? A. No, he did not. Q. So the information, again, that you're relying on is something that he told another law enforcement official. A. Another agent, a co-case agent involved in this investigation with me. Q. And the same question with regard to whether or not he poses a danger to himself or the community, and I'm assuming your response relates at least in part to Mr. Henrikson's involvement or lack thereof regarding Doug Carlile and also Mr. Henrikson's involvement or lack thereof with regard to K.C. Clarke. A. Are you asking me if I think he's -- Q. I'm asking you -- A. -- a danger to -- Q. I'm asking you, would that be a concern of yours? Q. Even though he's not been charged in either of those cases. A. There are direct witness statements that we -- that we've

28 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0:0 0:0 0:0 0:0 0:0 0 0 received that he's made threats regarding individuals -- Q. Well -- A. -- that's now deceased and that -- Q. Well, I understand all that, but -- THE COURT: Excuse me just a moment. Let him finish the answer. Q. (MR. SCHMIDT CONTINUING) Well, let -- okay. Answer. A. We've -- there's been interviews conducted of several witnesses who have direct knowledge about threats made by the defendant regarding one person who is now deceased, as well as the deceased's son, and as well as a former employee. That would be what I would be basing my -- Q. And just so we're clear, you never talked to the son? A. No, I did not. Q. And you never talked to anybody about K.C. Clarke before Mr. Clarke went -- went missing. A. No, I'm not the one conducting that investigation. Q. So your statements today, based on your belief that he may be a danger or a threat to himself or to the community, is based essentially on what somebody else has told you. A. It's based on a review of official investigative -- Q. Based on what someone else has told you. A. That and a review of investigative -- Q. Based on what someone else has told you. A. I don't agree with that statement.

29 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0:0 0:0 0:0 0:0 0:0 0 0 Q. You don't have to agree with it, but the fact of the matter is -- THE COURT: I think I understand what -- MR. SCHMIDT: Well, let me -- let me finish. Q. (MR. SCHMIDT CONTINUING) You never talked to either one of these people, did you? You didn't talk to Skyler Carlile and you never talked to the witness that claims that Mr. Clarke may be missing because of something Mr. Henrikson did. A. I have -- Q. Correct? A. I have personally not, but other -- Q. That's all I want to -- A. Can I finish, Your Honor? THE COURT: Just answer his question. You did not personally talk to them, right? THE WITNESS: I did not. THE COURT: Okay. Very good. Let's move on. MR. SCHMIDT: That's all I have. EXAMINATION BY THE COURT: Q. Who -- Agent Irvin, who talked to Ms. Creveling about her concerns? A. Myself, as well as the other co-case agents. Q. And what did Ms. Creveling tell you? A. That she's in fear for her safety and not returning home.

30 Case :-cr-0000-dlh Document Filed 0/0/ Page 0 of 0:0 0:0 0:0 0:0 0:0 0 0 Q. And with regard to Mr. Hall, who talked to Mr. Hall? A. That would have been one of the co-case agents, the Homeland Security investigator involved in the case. Q. And what do you understand Mr. Hall to have said? A. Can I -- can I clarify? Mr. Hall was the recipient of the threat. Q. Right. A. Our -- one of the co-case agents in this case have not spoken with Mr. Hall regarding that threat. We've -- individuals have spoken with the individual that provided the information about the threat. Q. Okay. And what -- and who was the person who provided the information about the threat? A. Eric Guerrero (ph). Q. And who talked to Mr. Guerrero? A. Special Agent Trudell from Homeland Security Investigations. Q. And what -- what do you understand Mr. Guerrero to have said? A. As reported to the agent? Q. Right. A. That he had overheard a conversation with the defendant and another individual about making a statement about taking Tex Hall out. THE COURT: Mr. Delorme? 0

31 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0:0 0:0 0:0 0:0 0:0 0 0 MR. DELORME: I just -- a couple -- couple followups, Your Honor, just to, I guess, reorientate things. REDIRECT EXAMINATION BY MR. DELORME: Q. The search warrant was conducted on January th, correct? Q. And the arrest of Mr. Henrikson was the Saturday following? Q. And I know -- I think it kind of got jumbled around, but I think the date in cross-examination was the th, but that's actually the th, correct? A. If it was the following, yes, that would be correct. Q. Because he's been in -- this past weekend he was already in jail. A. Yes, that's correct. Q. The last thing, Special Agent Irvin -- or Inspector Irvin, the businesses that were being run by Mr. Henrikson and Sarah Creveling, who owns those businesses? A. Sarah Creveling. Q. Bank accounts that are linked to those businesses? A. I'm not aware of any bank accounts in the defendant's name. Q. So they would all be Sarah Creveling's as well? A. Correct.

32 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0:0 0:0 0:0 0:0 0:0 0 0 Q. At this point in time, right now where we're sitting, is it your belief that those businesses are still in operation or are they nonoperational at this time? A. It's my understanding they are nonoperational at this time. MR. DELORME: That's all the questions I have, Your Honor. THE COURT: Anything further, Mr. Schmidt? MR. SCHMIDT: No, Your Honor. THE COURT: You may be excused, Agent Irvin. THE WITNESS: Thank you. THE COURT: Any other evidence you wish to present? MR. DELORME: No further witnesses from the United States, Your Honor. THE COURT: Pardon me? MR. DELORME: No further witnesses from the United States. THE COURT: Mr. Schmidt? MR. SCHMIDT: No witnesses, Your Honor. THE COURT: Mr. Delorme, you may proceed. MR. DELORME: Thank you, Your Honor. I'm maintaining my recommendation to the Court for detention in this particular matter. I've had an opportunity to review the Bail Report in this matter, and Mr. Henrikson has quite the criminal history. It dates back quite some time. When you take that and you put

33 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0:0 0: 0: 0: 0: 0 0 that criminal history together with what Inspector Irvin provided to the Court, what we have here is we have what we know of is five verbalized threats, two of those regarding Mr. Carlile, so we're talking about four individuals. Of the four individuals, one is known to be dead. We can't say Mr. Henrikson -- at this point he's -- maybe he's alleged or maybe he's a person of interest or a primary person of interest. One individual has been missing for two years with no known whereabouts at this point in time, and two are in fear for themselves to the extent that some of them may be compelled to carry a concealed weapon. We look at the criminal history. We got -- we got two alluding police. We got eight failures to appear, contempts, two fugitive warrants that were issued, and numerous past crimes of violence in this particular matter. We have Mr. Henrikson telling one of the case agents or arresting agents that somehow this is all involved in organized crime out of California and that other people are in -- are in threat of physical harm as well. With everything that we know at this point in time, Your Honor -- I know the indication is that Mr. Henrikson wants to get out and wants to go back to running the business, but really there is no business. Ms. Creveling is the primary owner of those, and according to Inspector Irvin, there's no known business in operation at this particular time in North

34 Case :-cr-0000-dlh Document Filed 0/0/ Page of Dakota. 0: 0: 0: 0: 0: 0 0 I think, Your Honor, there's been plenty of information provided that he is a threat to the community, a threat to others, and that alone should be enough for detention. But when we throw on top of that the indications that he has made comments to others about having a stash, and alluding prosecution would be what he would do and that he would take off and go to the wind, with his experience and using aliases to cover his tracks, Your Honor, I think that would be a real possibility if he's released, so I'm maintaining my recommendation of detention to the Court at this time. THE COURT: Mr. Schmidt. MR. SCHMIDT: Thank you, Your Honor. Obviously the issues that you have to decide are set out in, whether or not the Government has established by a preponderance of evidence that Mr. Henrikson is a flight risk and whether or not the Government has established by clear and convincing evidence that he presents himself to be a danger to himself or the community. While I understand Agent Irvin's testimony and the -- a lot of the information that he has acquired, it's also very clear to me that he has not spoken with Skyler Carlile or the individual involved in the apparent missing of Mr. Clarke. While I certainly recognize from the Bond Report that Mr. Henrikson does have somewhat of an extensive criminal

35 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 record, and obviously those criminal charges do include felony matters, I don't know that the United States has established by a preponderance that he presents himself to be a flight risk. We can certainly argue that his use of aliases or spelling his name a bit different, adding a D, adding an E, that those kinds of things suggest that he may be a flight risk, but I don't know that that in and of itself is a justification for you to conclude that he's a flight risk. I think the bigger issue is whether or not he poses a danger to himself or to the community. And while I certainly understand the concerns that the United States may have with regard to Mr. Henrikson's involvement or lack thereof in connection with the death of Douglas Carlile, I think that it's significant that Mr. Irvin has not spoken directly with Skyler Carlile; more importantly, that the conversation that occurred with Skyler Carlile happened several months before Mr. Carlile's untimely demise. Whether or not Mr. Henrikson had anything to do with the loss or the disappearance of K.C. Clarke, again, that's not something that we're here on. The real issue that you have to decide today is whether or not, based on the charge that's been filed against him by way of Criminal Complaint, that being a felon in possession of a firearm, that he poses a flight risk or a danger to the community. I would suggest that even though the Bond Report

36 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 recommends that he be detained and that there are no conditions of release that would allow him to be released, I would suggest the Court can at least consider placement in a halfway house, either BTC or Centre, Incorporated, Mandan. I know that there are always problems with regard to probation having sufficient funding, but in this instance it would seem to me that when you look at all of the evidence, a lot of it which is speculative, I think that under you can legitimately conclude that he's not a flight risk or that he's not a danger to the community. But if you are concerned about those factors, either one of them, that placement at a halfway house with no work release options would be a situation that would satisfy the factors and one which I think is fair and reasonable. So while I understand where the United States is coming from, I would suggest to the Court that you conclude that a halfway house placement is an option. If work release is off the table, that's fine, but I think in this instance placement in a halfway house rather than retaining -- or detaining him until this matter is resolved is the appropriate resolution under and we would ask you to so rule. THE COURT: Okay. Well, upon review of the Pretrial Services' report and consideration of the evidence presented today, the Court concludes that the Government has proved by a preponderance of the evidence that the defendant is a flight risk and by clear and convincing evidence that he is a current

37 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0: 0: 0: 0 0 danger to the community. Having made those conclusions, the issue then becomes whether the Court believes it can -- it can impose less restrictive alternatives to incarceration to mitigate the risk of flight and the risk to the community. And in this case the Court concludes that there are not suitable alternatives, and the Court bases all of its findings and conclusions both with regard to the fact that the Court considers that he is a risk of flight and a risk to the community as well, is that there are no mitigating -- or no alternatives -- less restrictive alternatives based on the following evidence. First of all, the defendant -- there is the evidence of the firearms that the defendant is charged with having possessed and the evidence that's been presented, which is strong, indicating that those firearms were his or under his control. And it isn't just one or two firearms. It's a number of firearms, and it's also the nature of the firearms. We're not dealing here with hunting weapons of any type. We're dealing with pistols and at least one assault rifle. The Court also reaches its conclusion based on the defendant's prior criminal history, which while not as extensive as some criminal histories the Court has reviewed recently, it does date back a number of years and includes convictions for theft offenses, burglary, assaultive behavior, and drug activity.

38 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0: 0: 0:0 0:0 0:0 0 0 Also the Court takes into consideration the defendant's conduct at the time of arrest and concludes that that contributes to a concern of risk to the community and to others. Finally, the Court also takes into consideration the evidence of the multiple threats that have been made, and that while some of the evidence is remote, and in particular the evidence with regard to K.C. Clarke, that Clarke -- the Court is not going to consider any of the evidence regarding K.C. Clarke, having concluded that that's just too remote in terms of its presentation to -- not substantial enough for the Court to consider. But even putting that evidence aside, there is evidence that the defendant has been engaged in multiple threats of others, and it's the cumulative weight of that evidence that is of concern to the Court. The Court makes no conclusion whether the defendant was involved in any murder or murder-for-hire scheme of the person who was -- who is now deceased in South Dakota (sic). And -- and the Court indicated it's not going to take into consideration the evidence regarding K.C. Clarke, so obviously no conclusion is drawn regarding whether or not the defendant had any involvement in that matter. The defendant will be held in custody then pending further proceedings. Court is adjourned. (Proceedings concluded at :0 p.m., the same day.)

39 Case :-cr-0000-dlh Document Filed 0/0/ Page of 0 CERTIFICATE OF COURT REPORTER I, Sandra E. Ehrmantraut, a Certified Realtime Reporter, DO HEREBY CERTIFY that I recorded in shorthand the foregoing proceedings had and made of record at the time and place hereinbefore indicated. I DO HEREBY FURTHER CERTIFY that the foregoing typewritten pages contain an accurate transcript of my shorthand notes then and there taken. Dated: May 0, 0 /s/ Sandra E. Ehrmantraut Certified Realtime Reporter 0