Update: Bail hearing set for Big Island man charged in federal court on firearm, meth charges

This story has been updated to reflect the outcome of the initial court appearance in federal court on O‘ahu this morning.

A man taken into custody on drug and firearm offenses in Puna appeared in federal court on O‘ahu this morning, where he was assigned counsel and a detention hearing was set to discuss bail.

Shannan Hostetler, 54, of Pāhoa, was arrested on June 24 after Hawai‘i Island police, in partnership with Homeland Security Investigations, executed a search warrant on Hostetler’s two properties finding a variety of guns, cocaine, methamphetamine and a meth conversion lab.

During Monday morning’s hearing, Judge Kenneth J. Mansfield asked Hostetler if he understood the general nature of the charges alleged in the criminal complaint, his Constitutional rights, including his right to counsel, and to set further hearing dates in the case.

“Defendant affirmed that he understood the general nature of the charges to the court,” court minutes indicate.

Catherine P. Gutierrez was assigned as counsel for Hostetler.

Hostetler was officially charged in federal court on June 26 with possessing with intent to distribute and manufacture methamphetamine, possessing with intent to distribute cocaine, unlawful possession of firearms, and unlawful possession of explosives.

U.S. Assistant Attorney Johnathan Slack filed a motion to hold Hostetler without bail, citing a myriad of reasons, including the concern that the defendant will flee. A hearing on the motion is scheduled for Thursday.

If convicted of the charged offenses, Hostetler faces a maximum sentence of life in prison and fines of up to $10 million.

According to the official complaint, the investigation into Hostetler began six months ago. Hawai‘i Island police received a community tip indicating that a known narcotics trafficker was frequently visiting Hostetler’s property under a suspected arrangement to stash firearms, money and narcotics.

Through the course of the search last week, investigators found shotguns, a bolt-action rifle, a glock 43 handgun and suspected liquid meth in glass vessels. It appeared Hostetler was attempting to crystallize the substance, indicating a meth-conversion operation.

During the search, bomb-squad personnel from the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Maui Police Department, and the Kaua‘i Police Department assisted case investigators by clearing and seizing suspected explosive devices from the premises.

According to court documents, investigators also found flash powder near a composition notebook filled with recipes and notes for making explosive compounds. Also near the flash powder, investigators seized a cylindrical-shaped device having an appearance similar to that of a homemade explosive or firework salute.

During the search, officers recovered:

• 289 grams of methamphetamine
• 459 grams of cocaine
• More than 1,700 grams of methamphetamine oil
• Seven firearms
• More than 6,000 rounds of ammunition
• More than $14,000 in U.S. currency

Less than 24 hours after the law enforcement concluded its search of Hostetler’s properties, an interested third party—having learned of the search— contacted investigators and turned over 20 more firearms, including at least five AR-15 style assault rifles, a 45 ACP carbine, a 12-gauge shotgun, and a 6.5 Grendel tactical rifle outfitted with a scope and bipod. Some of the firearms were loaded with extended magazines.

Hostetler was previously convicted in Arkansas in 1995 on manufacturing, delivering, or possessing with intent to manufacture or deliver a schedule IV or V controlled Substances, which was a class C felony.