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Watertown Man Indicted on 29 Counts of Child Pornography Following Drug Arrest

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Northeast Radio SD News – Watertown, SD - A Watertown man already facing felony drug charges is now facing a massive new federal or state indictment after authorities allegedly discovered child pornography on his cellular device.


Michael Lee Stadheim, 63, was recently indicted on 29 counts of child pornography. The illicit material was uncovered during the execution of a search warrant on his cell phone, stemming directly from an investigation into a March traffic stop where he was caught with methamphetamine. Following these new charges, his bond has been set at $10,000 cash only.


According to court documents, the initial investigation began on the morning of March 20, 2026, at approximately 9:20 a.m. Officer John Waldner of the Watertown Police Department pulled over a gray 1999 Chevrolet Silverado driven by Stadheim in the 5400 block of 9th Avenue Southwest after clocking the vehicle at 71 mph in a 65 mph zone.


During the stop, Officer Waldner—noting that Stadheim was recently discharged from parole—observed that he exhibited signs of nervousness and bodily tremors. Stadheim consented to a search of the truck, which was heavily cluttered with garbage. Inside, the officer found three syringes hidden inside a pair of work gloves near the driver’s seat; one syringe was filled with a cloudy liquid that tested presumptively positive for methamphetamine.

Stadheim refused a urine sample, claiming a friend must have left the syringes in his truck, and was booked into the Codington County Detention Center.


Grand Jury Indictments and Habitual Offender Status

Prior to the child pornography charges, a Codington County Grand Jury had already returned a true bill on May 4, 2026, formally indicting Stadheim on one count of Possession of a Controlled Substance, a Class 5 Felony. He was also charged with misdemeanor possession of drug paraphernalia and speeding.


Because of his extensive criminal record, the Codington County State’s Attorney’s Office filed a “Part II Information for Habitual Offender” notice on May 5, 2026, aiming to enhance any potential penalties. The state cited three prior felony convictions for ingesting a controlled substance, spanning between 2018 and 2022. Court records also show Stadheim has a prior 1993 conviction for first-degree rape and a 2010 conviction for failing to register as a sex offender.

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Current Status and Bond

Stadheim now faces two separate tracks of severe criminal charges. For the initial drug and paraphernalia charges, Third Judicial Circuit Magistrate Judge Bob Pesall had originally set a $1,000 cash bond with conditions including twice-weekly urinalysis testing.


However, with the addition of the 29 counts of child pornography discovered during the subsequent phone search, Stadheim’s custody status has intensified significantly, with bond for the new charges now set at an additional $10,000 cash only. Future court dates for both matters are currently pending.

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