Self-proclaimed rabbi in custody pending trial

Shawn Rice, a self-proclaimed rabbi and a leader in the anti-government "sovereign citizens" movement, is back in federal custody in Las Vegas facing money laundering charges after an armed standoff last month in Arizona with FBI agents.

Rice, armed with a handgun, kept agents looking to arrest him at bay for about 10 hours on Dec. 22 at his home in Seligman, Ariz . His wife and two children were inside the home throughout the confrontation.

A warrant was issued for Rice in March 2010 after he failed to show up for several hearings in the Las Vegas money laundering case. He remained a fugitive until the standoff.

Rice’s co-defendant in the money laundering case, Samuel Davis of Idaho, another "sovereign citizens" leader, was sentenced here in October to 57 months in prison. Davis, 57, liked to call himself "I am: Sam" in court documents as a symbol of his refusal to recognize the establishment.

Both men were indicted in March 2009 after a three-year undercover FBI investigation into the activities of the sovereign citizens in Las Vegas.

Agents assigned to the Southern Nevada Joint Terrorism Task Force had infiltrated the group, which taught out of a local print shop its anti-government leanings to a nationwide following. Tens of thousands of "sovereign citizens" in the movement have declared themselves above the government’s jurisdiction and not obligated to pay taxes.

The movement’s members have tried over the years to disrupt and overthrow government and other forms of authority by using "paper terrorism" tactics, intimidation, harassment and violence, law enforcement authorities have alleged.

Rice, 49, calls himself a rabbi, but federal authorities have not been able to document his claim.

In a sworn affidavit filed in Arizona federal court earlier this month, Flagstaff FBI agent James Kraus Jr. said agents showed up at Rice’s doorstep in Seligman about 7:20 a.m. Dec. 22 looking to take him into custody on the Las Vegas arrest warrant.

With the property surrounded, Kraus wrote, an agent knocked on the door and yelled, "FBI, Shawn. Come out."

Rice, wearing a bullet-resistant vest, then stepped out the back door holding a handgun. Agents ordered Rice to drop the weapon, but he didn’t and went back inside the house.

As agents tried to enter the home through the front door, Rice was heard saying he had a gun and there would be trouble if agents came inside, Kraus said. Agents backed away and called for additional law enforcement help.

After about 10 hours of negotiations, Rice surrendered about 5:35 p.m. without incident, Kraus wrote. Agents later found a 9 mm handgun with three loaded magazines, a 12-gauge shotgun and a rifle in the home.

Rice, who is facing federal charges in Arizona as a result of the standoff, was returned to Las Vegas earlier this month.

At a court appearance on Jan. 19, U.S. Magistrate Judge Bill Hoffman ordered Rice to remain behind bars here while he awaits his March 12 trial on the money laundering charges.

In court papers, prosecutors alleged that Rice and Davis laundered the $1.3 million for the undercover agents, who said the money had come from the theft and forgery of official bank checks.

The crimes occurred between about March 2008 and March 2009. Davis took nearly $74,000 in fees, and Rice took about $22,000, prosecutors alleged.

Rice also is facing federal charges here over his failure to appear in court in the money laundering case.

Contact reporter Jeff German at jgerman@ reviewjournal.com or 702-380-8135.