HELENA, Mont. (AP) — An 81-year-old Montana man faces sentencing in federal court Monday in Great Falls for illegally using tissue and testicles from large sheep hunted in Central Asia and the U.S. to illegally create hybrid sheep for captive trophy hunting in Texas and Minnesota.
Prosecutors are not seeking prison time for Arthur “Jack” Schubarth of Vaughn, Montana, according to court records. He is asking for a one-year probationary sentence for violating the federal wildlife trafficking laws. The maximum punishment for the two Lacey Act violations is five years in prison. The fine can be up to $250,000 or twice the defendant's financial gain.
In his request for the probationary sentence, Schubarth's attorney said cloning the giant Marco Polo sheep hunted in Kyrgyzstan has ruined his client's “life, reputation and family.”
However, the sentencing memorandum also congratulates Schubarth for successfully cloning the endangered sheep, which he named Montana Mountain King. The animal has been confiscated by U.S. Fish and Wildlife Services.
“Jack did something no one else could, or has ever done,” the memo said. “On a ranch, in a barn in Montana, he created Montana Mountain King. MMK is an extraordinary animal, born of science, and from a man who, if he could re-write history, would have left the challenge of cloning a Marco Polo only to the imagination of Michael Crichton,” who is the author of the science fiction novel Jurassic Park.
Schubarth owns Sun River Enterprises LLC, a 215-acre (87-hectare) alternative livestock ranch, which buys, sells and breeds “alternative livestock” such as mountain sheep, mountain goats and ungulates, primarily for private hunting preserves, where people shoot captive trophy game animals for a fee, prosecutors said. He had been in the game farm business since 1987, Schubarth said.
Schubarth pleaded guilty in March to charges that he and five other people conspired to use tissue from a Marco Polo sheep illegally brought into the U.S. to clone that animal and then use the clone and its descendants to create a larger, hybrid species of sheep that would be more valuable for captive hunting operations.
Marco Polo sheep are the largest in the world, can weigh 300 pounds (136 kilograms) and have curled horns up to 5 feet (1.5 meters) long, court records said.
Schubarth sold semen from MMK along with hybrid sheep to three people in Texas, while a Minnesota resident brought 74 sheep to Schubarth’s ranch for them to be inseminated at various times during the conspiracy, court records said. Schubarth sold one direct offspring from MMK for $10,000 and other sheep with lesser MMK genetics for smaller amounts.
In October 2019, court records said, Schubarth paid a hunting guide $400 for the testicles of a trophy-sized Rocky Mountain bighorn sheep that had been harvested in Montana and then extracted and sold the semen, court records said.
Sheep breeds that are not allowed in Montana were brought into the state as part of the conspiracy, including 43 sheep from Texas, prosecutors said.
The five co-conspirators were not named in court records, but Schubarth's plea agreement requires him to cooperate fully with prosecutors and testify if called to do so. The case is still being investigated, Montana wildlife officials said.
Schubarth, in a letter attached to the sentencing memo, said he becomes extremely passionate about any project he takes on, including his “sheep project,” and is ashamed of his actions.
“I got my normal mindset clouded by my enthusiasm and looked for any grey area in the law to make the best sheep I could for this sheep industry,” he wrote. “My family has never been broke, but we are now.”
FILE - This undated handout photo provided by the Montana Fish Wildlife and Parks, shows a sheep nicknamed Montana Mountain King that was part of unlawful scheme to create large, hybrid species of wild sheep for sale to hunting preserves in Texas. (Montana Fish Wildlife and Parks via AP, File)
Technology stocks helped pull stocks lower on Wall Street Wednesday, handing the market its first loss in more than a week.
The S&P 500 fell 0.4%, even though more stocks in the index notched gains than ended lower. The loss snapped a seven-day winning streak for the benchmark index.
The Dow Jones Industrial Average fell 0.3%, its first loss after five gains. The Dow and S&P 500 remain near the all-time highs they set on Tuesday.
The Nasdaq composite, which is heavily weighted with technology stocks, fell 0.6%.
Losses for tech heavyweights like Nvidia, Microsoft and Broadcom were the drag on the market. Semiconductor giant Nvidia fell 1.2%. Its huge value gives it outsized influence on market indexes. Microsoft fell 1.2% and Broadcom finished 3.1% lower.
Several personal computer makers also helped pull the market lower following their latest earnings reports.
HP sank 11.4% after giving investors a weaker-than-expected earnings forecast for its current quarter. Dell slid 12.2% after its latest quarterly revenue fell short of Wall Street forecasts.
Gains for financial and health care companies helped temper the market's losses. Berkshire Hathaway rose 0.9% and Merck & Co. added 1.5%.
All told, the S&P 500 fell 22.89 points to 5,998.74, while the Dow dropped 138.25 points to 44,722.06. The Nasdaq fell 115.10 points to 19,060.48.
Traders also had their eye on new reports on the economy and inflation Wednesday.
The U.S. economy expanded at a healthy 2.8% annual pace from July through September, according to the Commerce Department, leaving its original estimate of third-quarter growth unchanged. The growth was driven by strong consumer spending and a surge in exports.
The update followed a report on Tuesday from the Conference Board that said confidence among U.S. consumers improved in November, but not by as much as economists expected.
Consumers have been driving economic growth, but the latest round of earnings reports from retailers shows a mixed and more cautious picture.
Department store operator Nordstrom fell 8.1% after warning investors about a trend toward weakening sales that started in late October. Clothing retailer Urban Outfitters jumped 18.3% after beating analysts’ third-quarter financial forecasts. Weeks earlier, retail giant Target gave investors a discouraging forecast for the holiday season, while Walmart provided a more encouraging forecast.
Consumers, though resilient, are still facing pressure from inflation. The latest update from the U.S. government shows that inflation accelerated last month. The personal consumption expenditures index, or PCE, rose to 2.3% in October from 2.1% in September.
Overall, the rate of inflation has been falling broadly since it peaked more than two years ago. The PCE, which is the Federal Reserve's preferred measure of inflation, was just below 7.3% in June of 2022. Another measure of inflation, the consumer price index, peaked at 9.1% at the same time.
The latest inflation data, though, is a sign that the rate of inflation seems to be stalling as it falls to within range of the Fed's target of 2%. The central bank started raising its benchmark interest rate from near-zero in early 2022 to a two-decade high by the middle of 2023 and held it there in order to tame inflation.
The Fed started cutting its benchmark interest rate in September, followed by a second cut in November. Wall Street expects a similar quarter-point cut at the central bank's upcoming meeting in December.
“Today’s data shouldn’t change views of the likely path for disinflation, however bumpy," said David Alcaly, lead macroeconomic strategist at Lazard Asset Management. "But a lot of observers, probably including some at the Fed, are looking for reasons to get more hawkish on the outlook given the potential for inflationary policy change like new tariffs.”
President-elect Donald Trump has said he plans to impose sweeping new tariffs on Mexico, Canada and China when he takes office in January. That could shock the economy by raising prices on a wide range of goods and accelerating the rate of inflation. Such a shift could prompt the Fed to rethink future cuts to interest rates.
Treasury yields slipped in the bond market. The yield on the 10-year Treasury fell to 4.25% from 4.30% late Tuesday. The yield on the two-year Treasury, which more closely follows expected actions by the Fed, fell to 4.22% from 4.25% late Tuesday.
U.S. markets will be closed Thursday for Thanksgiving, and will reopen for a half day on Friday.
A sign marking the intersection of Wall Street and South Street is shown in New York's Financial District on Tuesday, Nov. 26 2024. (AP Photo/Peter Morgan)
FILE - People pass the New York Stock Exchange on Nov. 5, 2024, in New York. (AP Photo/Peter Morgan, File)
People walk past the New York Stock Exchange on Tuesday, Nov. 26 2024. (AP Photo/Peter Morgan)
A person walks in front of the Tokyo Stock Exchange building at a securities firm Tuesday, Nov. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
