Steele pleads not guilty to new charges

COEUR d’ALENE — Edgar J. Steele, an attorney who has represented the Aryan Nations and other high-profile clients, appeared in U.S. District Court here Wednesday and entered not guilty pleas to three new federal charges related to an alleged murder-for-hire plot to kill his wife.

Steele, of Sagle, appeared before Chief U.S. Magistrate Judge Candy Dale, through live video conference, for his arraignment on the new grand jury charges.

Those charges include use of explosive material to commit a federal felony, possession of a destructive device in relation to a crime of violence, and tampering with a victim.

Assistant U.S. Attorney Traci J. Whelan last week filed a “superseding” indictment that included the three new charges against Steele, 65, and the charge from last month — use of interstate commerce facilities in the commission of murder-for-hire.

Court documents and testimony in the case so far allege that Steele hired Larry A. Fairfax, 49, also of Sagle, to kill Steele’s wife, Cyndi, and his mother-in-law in a car crash meant to look like an accident.

Fairfax reportedly placed a massive pipe bomb under Cyndi’s vehicle, which was spotted by an oil change crew after she stopped for vehicle service in Coeur d’Alene.

Fairfax had been working with federal investigators as an informant, recording conversations between himself and a man authorities say was Steele as the two allegedly discussed the plot. Though Fairfax was working with investigators, he apparently failed to mention to authorities that a pipe bomb had already been attached to Cyndi Steele’s vehicle.

After being arrested June 11, Steele allegedly called his wife days later from Kootenai County jail and pleaded with her to tell authorities that the voice she would soon hear on the recordings Fairfax helped obtain while undercover was not Edgar Steele’s.

Whelan played in court the conversation she said was between Steele and his wife.

The jail-house call led to the new charge of tampering with a victim. The two other new charges are related to the pipe bomb, court documents say.

The jury trial in the case is currently scheduled for Aug. 16 before U.S. District Court Judge B. Lynn Winmill in Coeur d’Alene, but Steele’s federal public defender, Roger J. Peven, has submitted documents asking for a later trial date.

Peven said the defense needs more time to file additional pretrial motions, investigate and prepare for trial. He asked for a continuance of 60 days.

Peven also asked the court for a preliminary injunction to stop investigators from searching any computer records, case files or other materials seized from Steele’s home law office. 

“The concern is that Mr. Steele is a licensed attorney and had ongoing representation of clients at the time of his arrest,” Peven wrote. “There is a concern that Mr. Steele represents clients and groups that are of interest to the government.”

Peven, in court documents, said much of the information would be covered by attorney client confidentiality and privilege.

The government seized the materials with a search warrant, but Peven said it is not known what the warrant authorized.

The government, in court documents, recommended the court deny the preliminary injunction.

Prosecutors said authorities had probable cause to believe that items within Steele’s home, including computers, contained evidence of a crime.

“The United States has exercised special care to avoid unnecessary intrusion on attorney client communications,” according to the government’s response to the injunction request.