Texas couple convicted in international Internet porn ring kept lavish lifestyle - 08/10/01

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Friday, August 10, 2001



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Texas couple convicted in international Internet porn ring kept lavish lifestyle


By David Koenig

Image
Rodger Mallison / Fort Worth Star-Telegram

Janice Reedy, left, and Thomas Reedy leave the Federal Courthouse in Fort Worth, Texas, Monday, Nov. 27, 2000, after jury selection in their internet child pornography trial. A federal judge on Monday sentenced Thomas Reedy to 1,335 years in prison and Janice Reedy to 14 years.
On the Net:
U.S. Customs, child pornography enforcement
Department of Justice, how to report child pornography


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   DALLAS -- Thomas and Janice Reedy lived in an upscale Fort Worth neighborhood where neighbors say they threw all-night pool parties and where luxury cars would pull into their half-moon driveway at all hours of the night.
   They told neighbors they were in the computer business, which was partly true: They sold access to child pornography on Internet sites with names like "Cyber Lolita" and "Child Rape." Authorities say it was an international operation with 250,000 subscribers that grossed as much as $1.4 million a month.
   This week, the Reedys were sentenced to prison for conspiracy to distribute and possess child pornography
   On Wednesday, authorities announced the arrests of 100 of the couple's subscribers in what they called the largest child-pornography business discovered in the United States.
   "This is the worst kind of exploitation," said Ruben Rodriguez, a director at the National Center for Missing and Exploited Children. "To think of the image of child pornography -- a child is being molested, raped, abused. You're allowing people to pay to look at this victimization of a child."
   The Reedys' attorneys call them victims of an overzealous government.
   Susie Boese, who lives next door to the Reedys' former Fort Worth home, said Mrs. Reedy's young daughter spent a lot of time with her children.
   "We would ask the little girl what her parents did, and she just said they worked in computers and that's all she would say," Boese said.
   When the investigation heated up, the Reedys left Fort Worth for a small home in nearby Lake Worth. They were arrested in April 2000.
   In court, Mrs. Reedy, 32, testified that she met Thomas Reedy, 38, in South Texas and moved to Fort Worth in 1997 with her daughter, who was then 6.
   He was already working on a start-up Internet company, Landslide Inc. Mrs. Reedy was trained to keep the company's books. She testified that she saw offensive-sounding names of Web sites, but a woman training her in 1997 told her to ignore them.
   "She said, 'Don't worry. They're just names. They don't mean anything,"' she testified.
   For more than two years, Mrs. Reedy charged users a fee to view sexually explicit sites, kept 40 percent of the money and sent 60 percent to Webmasters in Indonesia and Russia. She said she learned the sites contained child pornography when a former employee tipped her off in 1999.
   "I went to my husband, and he said he had contacted the FBI and it was all being handled," Mrs. Reedy said.
   Less than a month later, police raided the business.
   Thomas Reedy, a licensed vocational nurse who taught himself computers, didn't testify during the five-day trial in federal court in Fort Worth. His wife was the last defense witness.
   The couple argues they were merely collecting money for other businesses.
   Attorney Steven Rozan, who is preparing their appeal, said the Reedys are victims -- Reedy was sentenced to life in prison and his wife received 14 years.
   "To lose 10 years of a person's life in prison is a helluva lot for a crime that doesn't involve death, doesn't involve maiming, but is basically a cybercrime," Rozan said. "These people were basically ticket takers."
   Investigators didn't believe Mrs. Reedy's claim to be ignorant of the child pornography.
   Ron Eddins, who helped prosecute the case, said Mrs. Reedy exchanged e-mail messages with foreign Webmasters about irate customers who complained they weren't getting all they paid for.
   "The Reedys marketed adult-porn sites and kiddie-porn sites. They charged more for the kiddie porn," Paul Coggins, who was U.S. attorney at the time, said Wednesday.
   Authorities said the investigation and arrests of customers will continue. Five Webmasters have been indicted, but none arrested.
   After their arrests, prosecutors offered Thomas Reedy a 20-year prison term and Janice Reedy a five-year term if they would plead guilty and help capture the Webmasters by luring them to countries with extradition treaties with the United States, said Eddins.
   Instead, the Reedys posted messages in Internet chat rooms announcing their arrests and asking for money to hire lawyers, Eddins said.
   The bulk of the pornographic material came from overseas, including from Russia and Indonesia. Authorities said some of the children involved were American.
   The investigation began after a tip from Minneapolis, said Dallas police Lt. William Walsh, whose department worked on the undercover case to target the Reedys' customers. The investigation was led by the U.S. Postal Inspection Service.
   After raiding the Reedys' business, undercover agents shut down the Landslide Web site and contacted its users. When subscribers ordered child pornography delivered to their homes, agents moved in.
   Investigators focused on the most egregious U.S. offenders, authorities said.
   Among those arrested: a computer consultant from North Carolina accused of producing videos depicting abuse of young girls, including a 4-year-old; and a West Virginia man who worked at a psychiatric hospital for sexually abused children.
   

Associated Press writer Alex Lyda contributed to this report.