Feds dismantle interstate drug ring: Colorado woman handed 11-year sentence

CASPER, Wyo. — A Colorado woman received more than 11 years in federal prison for her role as a distributor in a multi-state drug trafficking ring that pumped large quantities of methamphetamine and fentanyl across state lines.

Nicole Rae Phipps , 42, was sentenced Sept. 16, 2026, by U.S. District Judge Scott W. Skavdahl to 133 months in federal prison, followed by five years of supervised release. Phipps previously pleaded guilty to possession with intent to distribute methamphetamine.

The Wyoming Division of Criminal Investigation, the Drug Enforcement Administration and Homeland Security Investigations uncovered the drug ring during a joint probe into illicit operations across Colorado and Wyoming.

According to federal court documents, investigators began tracking Phipps and co-defendant Denny Jason Shrove in August 2025. Wiretaps and surveillance revealed the pair made weekly supply trips to Colorado to obtain methamphetamine and fentanyl. Communications intercepted by federal agents indicated no fewer than five smuggling trips in October 2025 alone. Investigators calculated that Phipps was conservatively responsible for trafficking between 22 and 44 pounds (10 to 20 kilograms) of methamphetamine.

A federal complaint filed in January named Phipps and six co-defendants. Dozens of other co-conspirators were charged in state court. Phipps waived her right to an indictment and pleaded guilty May 18, admitting to possession of 500 grams or more of methamphetamine with intent to distribute.

U.S. Attorney Darin Smith issued a stern warning to trafficking networks operating within the state, emphasizing that federal prosecutors are working with law enforcement to aggressively dismantle regional distribution networks entirely.

"This isn't just about making arrests. It’s about taking our streets back," Smith said. "We are pooling every ounce of local, state and federal power to lock up the drug peddlers driving this crisis, and we will not stop until our neighborhoods are safe."

Assistant U.S. Attorney Z. Seth Griswold prosecuted the case.

Case No. 26-CR-00048-SWS.

This case is part of  Operation Take Back America , a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhoods (PSN).

Source: U.S. Attorney’s Office — Wyoming — U.S. Department of Justice press release.

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