Feds Shut Down Major Fentanyl Operation Run Out of a South Side Billings Home

A 47-year-old Billings man has admitted in federal court to selling fentanyl pills from his South Side home, Acting U.S. Attorney Mark Steger Smith announced.

David Douglas Davis Enters Guilty Plea in Billings Federal Court

David Douglas Davis pleaded guilty on June 11, 2026, to one count of possession with intent to distribute fentanyl and one count of possession of a firearm in furtherance of a drug trafficking offense. The case was heard before U.S. District Judge Timothy J. Cavan, who will determine Davis's sentence at a future date. Davis remained released pending further proceedings.

Federal Fentanyl Penalties: Facing Decades in Prison for Billings Drug Charges

Davis faces significant federal penalties on both counts. On the fentanyl distribution charge, he faces between five and 40 years in prison, a fine of up to $5 million, four years of supervised release, and a $100 special assessment. On the firearm charge, he faces five years to life in prison, a fine of up to $250,000, five years of supervised release, and a $100 special assessment. The judge will consider U.S. Sentencing Guidelines and other statutory factors before imposing a final sentence.

Billings Police Investigation: How the Hallowell Lane Fentanyl Operation Was Exposed

The investigation began in October 2025 when the Billings Police Department's Street Crimes Unit received a credible tip that a man named David was selling fentanyl from an address on Hallowell Lane. Investigators spoke with a known fentanyl dealer who identified Davis as her supplier and said she had been purchasing fentanyl pills from him for approximately six months.

Billings South Side Raid Yields 88 Grams of Fentanyl, Cash, and Guns

On October 29, 2025, officers executed a search warrant at Davis's Hallowell Lane residence. Inside the home, they discovered 88.4 grams of fentanyl, which is approximately 883 pills, along with six firearms and $16,870 in cash. A search of Davis's vehicle yielded an additional firearm and $2,520 in cash.

Davis allegedly told officers he had begun selling fentanyl in April 2025 "to make money" and that he traveled out of state to purchase the pills.

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Joint Investigation: FBI and Billings Police Department Crack Down on Fentanyl

The Billings Police Department and the FBI jointly conducted the investigation. The U.S. Attorney's Office for the District of Montana is prosecuting the case.