Child-porn trial nears its conclusion
Wife testifies she didn't know of illegal images

By Nancy Calaway Fort Worth Bureau of The Dallas Morning News  
Published December 1, 2000

Janice Reedy testified Thursday that she was not aware of images of child pornography linked to an Internet site she and her husband owned, despite maintaining company financial records for more than two years.

Mrs. Reedy, 32, and her husband, Thomas Reedy, 37, have pleaded not guilty to more than seven dozen criminal charges related to child-pornography distribution. Closing arguments will be presented Friday in the U.S. District Court trial.

Mr. Reedy did not testify Thursday. His attorney, Wes Ball, said he thought the defense had successfully argued its points during cross-examination of the prosecution's witnesses and through defense witnesses who took the stand Thursday.

As the defense team's last witness, Mrs. Reedy politely and calmly answered questions from her attorney, Mike Heiskell.

She said Mr. Reedy was working on his start-up Internet company, Landslide Inc., when she met him in South Texas and moved to Fort Worth in 1997.

Mrs. Reedy worked at the company as a bookkeeper and in customer relations, she said, before marrying Mr. Reedy, who adopted her now-9-year-old daughter. Their daughter has been staying with her grandfather since the indictments.

After the Reedys' marriage, Mrs. Reedy began recording the company's financial transactions, which included charging users a fee to view sexually oriented sites, keeping 40 percent of the income and giving 60 percent to the Webmasters who provided the content.

But it was during her job training in August 1997 when she first saw names of companies that she called offensive. She said she dismissed them after questioning the woman who was training her.

"She said: 'Don't worry. They're just names. They don't mean anything,'" Mrs. Reedy said.

Her husband also told her "the names didn't necessarily mean what was in the site."

She said the first time she heard that child pornography might be on some of the Web sites was in the summer of 1999, when a former employee told her of the illegal content.

"I went to my husband, and he said he had contacted the FBI and it was all being handled," she said, adding that police raided their business less than a month later.

But Assistant U.S. Attorney Terri Moore questioned Mrs. Reedy's testimony, challenging her ignorance of child pornography for more than two years at the company and also on Mr. Reedy's two home computers.

A financial document that listed explicit names of sites to be paid, including "XXX Preteens" and "Russian Underage," was shown to the nine-man, three-woman jury.

"So this is something you're using in your job, and you're telling the jury that you did not know that there was child pornography?" Ms. Moore asked.

"No, ma'am, I never went to any of those sites," Mrs. Reedy answered.

Two FBI agents also testified for the defense. They said they contacted Mr. Reedy about possible child pornography being distributed through his site.

Both agents, one from Philadelphia and one from Dallas, testified they were interested in finding the Webmasters, who were outside the United States. They said Mr. Reedy had been cooperative.

Before the prosecution rested Thursday morning, they presented an accountant who examined Landslide's books and testified that the company made almost $1.3 million in less than one year.