Arrest warrant issued for Troy man accused of felony theft

A Troy man accused of stealing thousands of dollars in unemployment benefits is being sought by authorities after missing a recent court appearance.

Austin Joel Zugg, 47, charged with two felonies, including making false claims to public agencies and theft, had a bench warrant for his arrest issued July 22 by Lincoln County District Judge Matt Cuffe after failing to attend a pre-trial conference.

Zugg first appeared in court Jan. 23, 2023, for arraignment on felony charges of theft and making false statements to public agencies after authorities say he walked away from a job. He pleaded not guilty to those charges.

Zugg was represented at the time by Todd D. Glazier. Zugg’s arraignment was scheduled for Dec. 12 and then Jan. 3 because he did not have legal representation.

Weston Young, of the state Office of the Public Defender, previously said his office had attempted to find an attorney to represent him, but three counselors declined.

According to a court filing, Young filed a motion Feb. 8, 2023, to rescind the appointment of a public defender because Zugg failed to fill out an application and provide his financial documentation.

Ben Kolter was appointed by the state to represent Zugg in May 2023. A jury trial was continued on June 10, 2023, to Jan. 16, 2024, then March 6, 2024. A change of plea hearing was set for Jan. 12, 2024, but a deal was not reached.

According to federal court documents, Zugg has also been a no-show for an initial court appearance June 6 in Missoula after he was accused of timber theft and driving off-road in the Kootenai National Forest earlier this year. A warrant for his arrest was issued on July 12.

According to the charging document filed by Zwang against Zugg in the fraud case, Montana Department of Labor and Industry Lead Fraud Investigator Michelle T. Sergeant wrote in a report that Zugg voluntarily quit his job with a Great Falls company.

Sergeant wrote that after quitting, Zugg allegedly misrepresented his employment status. From May 2, 2020, to July 18, 2020, Zugg allegedly made 12 separate weekly requests for payment of unemployment benefits. He received benefit payments totaling $13,824.

Sergeant wrote in her report that, “Based on the fact Zugg voluntarily quit his employment, he was not eligible to apply for, or receive, any UI benefits.”

The maximum penalty for a conviction on felony theft and making false statements to public agencies is 10 years in the Montana State Prison.

In the federal case, Zugg is accused of cutting several Western larch trees and driving off road in the areas of the South Yaak Campground and Leonia Road near the Idaho border.

According to a statement of probable cause by U.S. Forest Service law enforcement officers Will Chambers and Adam Nedeau, they were investigating recent timber theft and resource damage in the South-Yaak Campground on the afternoon of Jan. 23, 2024.

When they saw fresh tire tracks at the south end of the campground leave the pavement and go off-road, they followed. The tracks meandered around numerous large trees and scraped the bark off several tree trunks and roots.

Soon, they saw a white 2000 Dodge pickup truck and Chambers recognized it as a truck owned by Zugg. He used his public announcement system to call to Zugg. The accused replied he and his girlfriend Jennifer Mehlhoff were in the truck. 

Chambers saw a Western Larch log about 40 feet long attached to a chain that was connected to the truck. The officer said there were drag marks through the snow where the log had been pulled. Zugg allegedly admitted to "pulling" a tree down and cutting another as he pointed to the log behind the truck. 

Chambers wrote that there were several trees in the immediate area that had been cut but were hung up in the canopy of the surrounding trees. Zugg also allegedly admitted to driving the truck to its current location and to driving into that area at least 10 other times in the recent months. 

“As I followed the truck's tracks further into the trees, I observed numerous live-Western Larch trees had recently been cut, all within in close proximity of Zugg's tire tracks,” Chambers reported.

Chambers said he had also been investigating off-road driving and timber theft in the area of Leonia Road. Zugg allegedly admitted to cutting a stump and driving around a Kelly hump, continuing down a closed road, and subsequently cutting a tree for firewood on Jan. 21, 2024. 

“Zugg described the exact location off Leonia Road in which I was investigating,” Chambers said in the affidavit. Zugg's story corroborated what I saw as I walked the Leonia Road area. Zugg’s truck tires ripped up dirt and damaged exposed tree roots as it went around the Kelly hump.”

Zugg was cited for the offenses.

Zugg also faced federal charges in September 2023 after multiple investigations at a campsite in the Three Rivers Ranger District by Forest Service officers.

Zugg was accused of exceeding the 16-day stay limit. The site, alleged by officers, had numerous garbage bags piled up, firewood, household items and machinery spread about, a camper trailer, a pickup truck and a white car. The vehicles were approximately 150 yards off the closest designated route. 

According to the charging document, a Lincoln County Sheriff's deputy walked his trained narcotics K9 around the white car and alerted there was drugs in the vehicle. A search turned up a pipe with suspected methamphetamine in it.

In a plea deal with the government, Zugg was ordered to pay fines of $380 for damaging natural features and not disposing of garbage. Other charges, including possession of drug paraphernalia and driving while suspended and without insurance, were dropped.

Not long after, Zugg was cited again for not cleaning up the campsite he occupied earlier in the month. Officers saw a truck bed from Zugg's vehicle, several tires and several other items that appeared to be abandoned. 

He also missed a December 2023 court appearance in the matter.

Zugg ended up being ordered to pay $380 for not cleaning up the garbage and destroying natural features.

Zugg avoided drug charges nearly 20 years ago after two county sheriff’s deputies were accused of sexual misconduct and planting evidence. Zugg was accused of running a meth lab in a trailer south of Libby.