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SALT LAKE CITY — A man whose job was overseeing oil and gas businesses operating on the Uintah and Ouray Reservation, to make sure they had proper licenses, has been sentenced to federal prison for extorting those companies.
Leallen Blackhair, 47, was sentenced in March to 18 months in federal prison followed by three years of supervised release for his conviction on federal extortion charges. He pleaded guilty in December 2022 to eight counts of extortion and one count of attempted extortion.
Prosecutors say every company conducting oil and gas business on the Uintah and Ouray Reservation is required to obtain access permits.
"If a company was found in violation of the access permit or business license, the compliance officer was to escort the company from the reservation until the violation was remedied and refer all violations to Blackhair," according to charging documents.
Blackhair was the supervisor of compliance. His duties were to assess and collect fines from companies found to be in violation of the access permits.
But from about 2010 through 2013, the U.S. Attorney for Utah says Blackhair used his position to take 66 extortion payments totaling nearly $110,000 from companies.
Court documents state he did this "by requiring them to pay him a donation for tribal athletic teams, tribal athletic events and memorial funds in exchange for his agreement to waive the payment of fines for access permit, business license and other violations." Prosecutors, however, say Blackhair "used the extortion money on trips to various amusement parks, dining and shopping."
"Through extortion, Blackhair more than doubled his $50,000 salary and targeted mostly small, 'mom and pop' businesses. Blackhair spent the extorted funds on trips to Disneyland, Legoland, Las Vegas, Disney World, SeaWorld, Universal Pictures, airfare, hotels, rental cars, dining and shopping," according to a statement from the U.S. Attorney's Office in Salt Lake City.
Earlier this month, Blackhair filed notice that he intends to appeal his case to the 10th Circuit Court of Appeals.
