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HELENA (AP) - Bayer Corp. has agreed to pay the Montana Medicaid program $190,000, as part of a settlement between the pharmaceutical company and the Medicaid Fraud Control Unit.

Also in the settlement is $378,971 in federal matching funds.

Unit director Gordon Hage said Bayer failed to make the lowest prescription rates available to Medicaid participants.

Bayer was accused of offering a private-label antibiotic and a private-label hypertension medicine to the health maintenance organization Kaiser Permanente, without reporting the private-label price to Medicaid. Participants in Medicaid paid a higher price for the medicines than did Kaiser-Permanente, Hage said.

"Each year we see more and more cases of drug manufacturers entering into Medicaid agreements, then breaching those agreements to maximize their profits," Hage said.

BOZEMAN (AP) _ A former Forest Service ranger in Oregon is the new deputy supervisor for the Gallatin National Forest.

John Allen was the ranger for the McKenzie River District of Oregon's Willamette National Forest. He has extensive experience in recreation and wilderness management.

As deputy supervisor he succeeds Rich Inman, who retired.

GREAT FALLS (AP) _ A new chief executive officer took over the Davidson Cos., financial services companies based here, on Thursday.

Bill Johnstone has been the president of D.A. Davidson & Co., the regional securities brokerage firm and largest of the four Davidson Cos. The other companies are Davidson Trust Co., Davidson Investment Advisors and Davidson Travel.

Johnstone succeeds Vinney Purpura, who announced last fall that he would step down as chief executive. Purpura will serve as vice chairman of the Davidson Cos. board of directors.

Johnstone said that as president and chief executive he plans no major changes for the Davidson Cos., which employ about 730 people.

Before joining the Davidson Cos., Johnstone was managing partner of Dorsey & Whitney, a law firm based in Minneapolis. He also served as president and chief executive of Rauscher, Pierce and Refsnes, a Dallas-based investment firm that became Dain Rauscher.

Johnstone holds a bachelor's degree in history from Montana State University and a law degree from the University of Minnesota.

BOZEMAN (AP) _ A property developer has pleaded guilty to brandishing a handgun and threatening to shoot a man who was removing gopher traps from the developer's land.

District Judge Mike Salvagni sentenced Thomas Kallenbach, 42, to 10 days in jail and ordered him to write a letter of apology to Mike Long and Lauren Sakel.

Kallenbach was arrested in April after a dispute at a subdivision that he developed.

Court documents say Kallenbach spotted Long and Sakel, both of whom live in the subdivision, walking on his property.

The couple told investigators that dogs apparently had been eating gopher poison. Kallenbach arrived as the two were removing gopher traps from his land.

In an argument, Kallenbach called Sakel "rabid." Long then approached Kallenbach, who was in his vehicle and grabbed a revolver that he pointed at Long, verbally threatening to shoot him.

BILLINGS (AP) _ A Crow Agency man, with a previous child pornography conviction, has admitted in federal court that he possessed additional child pornography.

Jason Dean Pitsch, 34, pleaded guilty Wednesday to charges of possession of child pornography and must forfeit all property used to commit the crime.

Prosecutors said that in early 2001, Pitsch had child pornography on two computers at Crow Agency.

Pitsch was on probation when the latest offense occurred. He was nearing the end of his probationary period when his probation officer received information that Pitsch had used computers in violation of the terms of his probation. Authorities seized two computers.

Pitsch faces a possible penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for April 21.

BILLINGS (AP) _ A Bozeman college student accused of using the Internet to arrange sex with an undercover agent posing as a minor appeared in federal court here Thursday.

Erik Andrew Paye, 19, a computer-science student residing at Montana State University, waived a preliminary hearing and was released to await further proceedings. The case will be presented to a grand jury.

Paye was arrested in Bozeman late Wednesday.

According to an affidavit by FBI Special Agent John Teeling, another FBI agent working undercover and posing as a female under the age of 16 was contacted online Tuesday by a person using the screen name "murphys_law7603." Authorities later identified the person as Paye.

The undercover officer told Paye that he was a female under 16 and Paye replied that he was 19, and sent his picture, according to the affidavit. It says Paye initiated contact again Wednesday and asked if sex was desired.

Paye was arrested after arriving at a location agreed upon with the undercover agent.

Paye's computer equipment has been seized.

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