In January 2010, the 65-year-old Steele solicited a man (who was not identified in the media) to kill his 50-year-old wife and her mother by staging a fatal car accident. According to the murder-for-hire plan, Steele would pay the hit man $25,000. If his wife's life insurance paid off, Steele would kick in an additional $100,000 for the double-hit.
On June 9, 2010, the man Steele had solicited for murder got cold feet and called the FBI. The next time the would-be hit man and the mastermind met, the snitch secretly recorded Steele soliciting the murders of his wife and his mother-in-law.
Shortly after the recorded meeting with the informant, FBI agents arrested Steele at his home. While the attorney sat in the Kootenai County Jail, FBI agents questioned his wife.
According to Cyndi Steele, between 2000 and 2010, her husband had sent 14,000 emails to hundreds of Ukrainian women. In 2000, she caught him soliciting relationships with Ukrainian women on Match.com. To lay a trap, Cyndi posted a phony profile of her own on Match.com under a fake name. Steele replied to her posting. Cyndi Steele filed for divorce, but not long after that, the couple reconciled.
A few days following Steele's arrest, his wife decided to get an oil change before driving to Oregon to visit her mother. When an employee of the oil change service looked under her SUV, he discovered a pipe bomb. ATF agents responded to the scene and disarmed the device.
Following the car bomb discovery, FBI agents arrested Larry Fairfax, a former Edgar Steele handyman. Fairfax confessed to planting the car bomb on May 20, 2010. According to Fairfax, Edgar Steele had given him $10,000 in silver coins as a downpayment for the murder of Cyndi and her mother. As part of the murder-for-hire plan, Fairfax was supposed to plant another pipe bomb under Edgar Steele's car, a device the murder-for-hire mastermind could detonate to make himself look like an intended victim.
On June 15, 2010, a grand jury sitting in Coeur d' Arlene indicted Edgar Steele on two counts of using interstate commerce facilities in the commission of murder-for-hire. The grand jury also indicted him for tampering with a federal witness. (From his jail cell, Steele had called his wife to tell her that the voice on the audio tape that contained the murder-for-hire conversation with the FBI snitch was not him.)
The government provided Steele, who claimed he was broke, with a federal public defender. However, by February 2011, Steele's supporters had raised $120,000 for his defense. That allowed the accused to hire Robert T. McAllister, a prominent trial attorney from Denver.
In January 2011, Larry Fairfax pleaded guilty to federal charges related to the placing of the pipe bomb on the intended victim's car. In return for his promise to testify against Steele at his upcoming trial, the judge sentenced Fairfax to 27 months in prison.
The Edgar Steele murder-for-hire trial got underway on April 30, 2011 in Coeur d' Arlene, Idaho before federal judge B. Lynn Winmill. Assistant United States Attorney Traci Jo Whelan, in an effort to establish the defendant's motive in the case, introduced several love letters Steele had written from his jail cell to a Ukrainian woman named Tatyana Loginova.
Larry Fairfax took the stand and testified that he had placed the pipe bomb under Cyndi Steele's SUV and Edgar Steele's car.
Defense attorney Robert McAllister portrayed the government's case against his client as a conspiracy based on perjured testimony and FBI wrongdoing. According to McAllister, the federal government objected to Steele's political beliefs and wanted to silence him.
Cyndi Steele took the stand to testify on her husband's behalf. (This was not the first time in a murder-for-hire case where the targeted wife stood by the husband who had plotted her death.)
On May 5, 2011, the jury of eleven women and one man found Edgar Steele guilty on all counts. Seven months after this verdict Judge Winmill sentenced the murder-for-hire mastermind to fifty years to be served at the federal corrections facility at Victorville, California.
Steele, with the help of a new lawyer, appealed his conviction to the 9th Circuit Court of Appeals in Denver. According to the appellant, Judge Winmill had improperly instructed the jury. Steele also claimed that he had been denied adequate counsel. This assertion was based on the fact that one month after the guilty verdict, attorney McAllister was disbarred for stealing money in an unrelated case. As a result, he had been so distracted by his own legal problems that he hadn't performed well for Steele.
In October 2013, the three-judge panel sitting on the 9th Circuit Court of Appeals affirmed Steel's murder-for-hire conviction. The decision, however, did not deter Steele's ardent supporters, people who claimed the FBI framed him because of his anti-government politics. They continued, without result, to fight for his freedom.