Nicole Rae Phipps, a Colorado woman, must serve over 11 years behind bars in federal prison after operating as a distributor for a wide-ranging drug network that moved substantial amounts of fentanyl and methamphetamine across state borders. Nicole Rae Phipps, 42, received a sentence of 133 months in federal prison, followed by five years of supervised release, handed down by U.S. District Judge Scott W. Skavdahl on September 16, 2026. Phipps had previously entered a guilty plea for possession with intent to distribute methamphetamine.
The multi-state drug trafficking ring was uncovered by a joint investigative probe conducted by the Wyoming Division of Criminal Investigation, the Drug Enforcement Administration, and Homeland Security Investigations, focusing on illicit operations spanning Colorado and Wyoming. Federal court documents show that law enforcement began tracking Phipps and her co-defendant, Denny Jason Shrove, in August 2025. Through wiretaps and physical surveillance, investigators determined that the pair made weekly supply trips to Colorado to acquire methamphetamine and fentanyl, intercepting communications that indicated at least five smuggling trips during October 2025 alone. Investigators estimated through these activities that Phipps’s involvement accounted for trafficking between 22 and 44 pounds (10 to 20 kilograms) of methamphetamine at a minimum.
Investigation and Legal Proceedings
A federal complaint filed in January formally named Phipps alongside six co-defendants, while dozens of other co-conspirators faced charges in state court. Phipps waived her right to an indictment and pleaded guilty on May 18, admitting to the possession of 500 grams or more of methamphetamine with intent to distribute. Assistant U.S. Attorney Z. Seth Griswold prosecuted the case, which is officially logged in federal court under Case No. 26-CR-00048-SWS.
U.S. Attorney Darin Smith issued a stern warning regarding regional distribution networks following the sentencing, emphasizing that federal prosecutors are working alongside local and state law enforcement to dismantle illicit operations 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.”
Broader Federal Initiative
The prosecution of Phipps and her co-defendants falls under Operation Take Back America, a nationwide Department of Justice initiative designed to target transnational criminal organizations, combat cartels, and protect communities from violent crime. The program streamlines resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhoods (PSN) to coordinate federal, state, and local law enforcement responses.
