Texas trail that ended with child porn arrests in Britain

The Sunday Telegraph ^ | January 19, 2003 | Julian Coman

[MadIvan]

An American couple grew rich on the misery of children until a tip-off on a post box number shattered the anonymity of the internet. Julian Coman in Fort Worth talks to the team who caught them

Postal inspectors at the Jack D Watson Post Office in Forth Worth, Texas, spend most of their days investigating credit card fraud, the theft of parcels and other abuses of the US mail system. Early in 1999, however, a very different kind of case came along.

The tip-off that would eventually lead to the arrest of Pete Townshend, the guitarist with The Who, came from an acquaintance of Bob Adams, a postal inspector.

The friend, from Minnesota, who has never been named, stumbled upon a website operating under the name Landslide Productions Inc.

The name of the site was innocuous; its content was not. At the bottom of Landslide Productions' home page, which was illustrated with a scenic mountainside view, was an invitation to click on a button marked "child porn".

Viewers were invited to subscribe by credit card. For those who had no card and wanted to pay by cheque, however, the website also gave a mailing address: a post office box in Fort Worth, Texas.

Mr Adams contacted the nearby Dallas police department, which had set up a unit to investigate the exploitation of children on the internet.

The undercover investigation that followed uncovered the biggest child pornography enterprise in American history. The Dallas police provided Steve Nelson, one of its detectives, with a fake identity and credit card number.

After entering Landslide's child porn site, Mr Nelson found a menu advertising selections such as "children forced to porn", "child rape" and "children of God".

Each selection cost $29.95 for a month's subscription. To join up, the surfer needed to give credit card details and choose a password.

Landslide Productions was traced to Tom and Janice Reedy of Fort Worth, a couple who had recently arrived in the city.

Tom Reedy was a former nurse and had never owned a home. Janice Reedy had lived most of her life in a trailer. Now the couple lived in a mansion and each drove a Mercedes.

The postal inspections service and the Dallas PD brought their investigation to the attention of Terri Moore, an assistant district attorney with a reputation for typically Texan straight-talking.

Under her guidance, the agencies tightened the net around the Reedys. America's laws on child pornography place a far greater burden on investigating authorities to show that a crime is being committed.

"The bigger this became, the more careful we were to get everything right," Ms Moore told The Telegraph.

A consultant from Microsoft was hired to make copies of the sites. The Reedys' bank accounts were tracked. Gradually the scale of the operation became clear.

Tom and Janice Reedy were not running a grubby backstreet service for local paedophiles. They were the middlemen for a global child pornography business, procuring customers to view horrific images of child abuse, usually shot far way in eastern Europe and Asia. More than 7,000 of their customers were British.

At a conservative estimate, Landslide Productions was making $1.3 million (£810,000) a month profit. "We discovered that this couple were making an absolute fortune," said Kenny Smith, a postal inspector at the Jack D Watson building.

Most subscribers, it turned out, could not resist sampling as many of the porn categories as they could afford. In all, there were 2,000 available.

A separate site of "adult classifieds" included entries from fathers advertising their children for sex. The company's outgoings included payments to Russia and Indonesia, where the images originated.

When the Reedys' lavish home was raided, a database was removed containing the names and credit details of 350,000 subscribers in 60 countries.

"Tom Reedy had been playing the role of a madam in a whorehouse and this was a list of the visitors," said Ms Moore.

"I went through my area of Fort Worth straight away and looked for the prominent names. There were lawyers, doctors, teachers. The database was a cross-section of respectable society."

The frustration for the assistant DA, however, was once again that American law requires prosecutors to catch subscribers online.

Had Townshend lived in America, Ms Moore could not have arrested him for previous visits to child pornography sites.

Instead, prosecutors monitored the website, intercepted letters and emails and amassed evidence. Then they moved against the Reedys.

In December 2000 a federal jury convicted the couple on more than 85 counts of child exploitation. Tom Reedy was sentenced to 1,335 years in prison. Janice, for aiding and abetting, received 14 years.

"Reedy's emails buried him," said Ms Moore. "We read somewhere that he was trying to get stronger stuff on the sites. He was saying that customers weren't satisfied."

The conviction enabled the US authorities to pass on the identities of all the couple's foreign clients to Interpol: in September 2001 Britain's National Crime Squad received 7,200 names.

Detectives in Britain were horrified at the number of people on the list, which they knew would generate their biggest paedophile inquiry.

Carole Howlett, the assistant commissioner of the Metropolitan Police and the lead officer in the inquiry, immediately recognised more than a dozen household names on the list.

A colleague said: "The list was held in great secrecy. The few officers who did know were amazed at the extent of interest in child porn.

"We realised that most forces did not have enough expertise and manpower for a national swoop. Instead, it was decided to proceed with caution and arrest those who worked with children first."

Last month, rumours began to circulate in Texas that among those on the list was Townshend. Kenny Smith, the postal investigator, was in church when a colleague rang with the news of Townshend's arrest. "It was startling to think how far the Reedy case had gone," he said.

For Ms Moore, though, the news was painful. It reminded her that the vast majority of American subscribers were beyond her reach: the authorities could simply monitor them and hope to catch them if they reoffended.

As a music-lover, the news also affected her. "I love The Who," she said. "When I heard that Pete had been arrested it just made me sad." Townshend said that he had looked at the site only a couple of times for research.

Ms Moore remains proud of her achievement in breaking what is thought to be the biggest internet child pornography operation in the world.

"The case was pretty precedent-setting. Maybe it means a particular kid won't get molested. To feed the hunger of paedophiles is disgusting. These people were getting rich off the misery of children."

[MadIvan]

I had a difficult time reading this article without retching. The people who created this terrible child porn site are in Texas. Strap them into Old Sparky and let fly.

Regards, Ivan

[MadIvan]

Bump!

[Support Free Republic]

CAN I HAVE YOUR ATTENTION

PLEASE SUPPORT FREE REPUBLIC

Donate Here By Secure Server

Or mail checks to
FreeRepublic , LLC
PO BOX 9771
FRESNO, CA 93794
or you can use

PayPal at Jimrob@psnw.com

STOP BY A BUMP THE FUNDRAISER THREAD

[Bad~Rodeo]

Give me the IP and Ol' Rodeo from Texas will fix it.......PM Me...

[dighton]

Yep, Mr. and Mrs. Reedy need killin'.

[Palladin]

TLB--here's a heads-up on your hero PeteTownshend and the company he keeps.

[MadIvan]

It gets worse:

http://www.freerepublic.com/focus/news/825228/posts

I am physically sick.

Regards, Ivan

[MonroeDNA]

I guess I've been around here for about 5 years or so now. Time sure flies!

When Jim Robinson started this site, it was because he was fed up with the liberal media, and how they would not let people worldwide know about the corruption of the Clinton Administration. A few of us, equally concerned, (with great luck) found it fast.

In the early days, FR was a day-to-day operation, always on the brink of bankruptcy. Jim kept on, and we chipped in when it became too much. We knew how important this site was, and is. Sometimes, it came down to the wire, and we wrote checks, and sent them in, as best we could.

Look at it now. We all get our best information from this site. It is huge, with thousands of posters, and millions of readers. Yet Jim still keeps it alive because of his conviction, and he is absolutely NOT making a profit on it. He just believes. As do we.

BTW, did you know that the founder of this site is in a wheelchair (sorry Jim; I know you think it doesn't make a r*ts a$$ difference. Hey, some folks out there need to come down a peg, like I have.).

Think of it! In the darkest days of the Clinton Administration, there was a lone internet site where people with integrity, brains, and sheer gumption could discuss the dangers faced by the US. Not on CNN, for sure.

Earthmovers like Drudge, Ann Coulter, Rush, WFBuckley, his brother, Savage, Buchanan, both houses of Congress (many) check in to see what we think.

The opposition checks it out, too. Like the NY times staff, CNN, etc. Trust me, they all come here to read. Even YOUR post. You know by now how they are whining about Rush? We're next, as soon as they figure out how they can trash this site without it getting a million hits.

I've been broke; I've been not broke. I've slept in my car. I know how it feels to be squeezed tight with bills. Folks with giant bills: You're not alone, and you have friends here. :)

If you love this site as much as I do, please, please sign up for automatic payment of just $3 per month. Don't be embarrassed if you think this is too little. It absolutely is not. You $3 a month folks are our grassroots movement heroes. Be proud. Become one of the thousand points of light here, and you will so feel proud every month. We'll thank you for it, and are so glad to have you on board.

I know things are rough out there. But you are tough, and a member of the greatest grassroots freedom movement in 100 years. Together we are making history, and will change the world, as we already have. The best is yet to come.

Most countries out there would consider this website illegal. They hate us, for our freedom. Their systems cannot stand, in the face of Freedom. The people there read us when they can, when they are “allowed” to, and are not being tortured. They flock to us, America, because they want to be free. Help us help them.

Would you please, please consider signing up for just $3 a month? Please? You will make a world of difference, to, well, the world. Be proud, and please help out!

[Palladin]

From the US DOJ:

U.S. Department of Justice

United States Attorney
Northern District of Texas


1100 Commerce St., 3rd Fl Telephone (214)659-8600
Dallas, Texas 75242-1699 Fax (214) 767-2898



FOR IMMEDIATE RELEASE DALLAS, TEXAS
CONTACT: 214/659-8707 AUGUST 6, 2001

Thomas Reedy Sentenced to Life Imprisonment in Child Porn Case



United States Attorney Richard H. Stephens announced that Thomas Reedy, age 37, of Fort Worth, Texas was sentenced today to 1335 years imprisonment (180 months on each of 89 counts to run consecutively), by the Honorable United States District Judge Terry R. Means following his December 2000 conviction by a federal jury on all 89 counts of an indictment that charged him with Sexual Exploitation of Minors, Distribution of Child Pornography, and related charges. Thomas Reedy’s wife, Janice Reedy, age 32, was convicted on 87 of these 89 counts during the same trial and was sentenced today to 14 years imprisonment by Judge Means. The Reedy’s company, Landslide, Inc. was also convicted in December on 89 counts of the indictment and was sentenced today to pay a $6,950,970.28 fine by Judge Means. Thomas Reedy has been in custody since his conviction; Janice Reedy was taken into custody following her sentencing today.

Along with the Reedys, foreign webmasters, R.W. Kusuma and Hanny Ingganata of Indonesia and Boris Greenberg of Russia, were charged with Sexual Exploitation of Minors and Distribution of Child Pornography in the April 2000 indictment. Warrants have been issued for their arrest and the United States will seek extradition. These webmasters designed, launched and maintained websites that offered pictures and movies of minors engaging in sexually explicit conduct.

According to evidence presented at trial, the Reedy’s company, Landslide, Inc., provided a credit card verification service that acted as an electronic gateway to the pictures and movies of minors engaging in sexually explicit conduct at Kusuma, Greenberg and Ingganata’s web sites. Internet customers were required to provide a credit card number as well as a charge authorization in order to gain access, by a user name and password provided by Landslide, to the pornographic productions on the web sites. Landslide charged each customer approximately $29.95 per month per site for access to these pornographic images of minors and was the only gateway to these child pornography websites.

The Reedy’s and co-conspirator webmasters, Kusuma, Ingganata and Greenberg agreed to share the money collected for the sale of user names, passwords and access to the child pornography. Testimony at trial revealed that between 1997 and 1998, Landslide netted more than $1 million and the Reedy’s paid Kusuma, Ingganata and Greenberg approximately two-thirds of the money they collected.

Thomas and Janice Reedy ran the Landslide business from their home in Fort Worth, Texas and from an office in northeast Fort Worth. Thomas Reedy ran the business as its President; Janice Reedy was the bookkeeper and made the payments to the foreign webmasters, Kusuma, Ingganata and Greenberg. According to testimony at trial, when investigators searched Landslide’s northeast Fort Worth office in 1999, they found a well-organized operation with over a dozen employees including a computer programmer, customer service representative and a receptionist. An investigator testified at trial that Thomas Reedy told him that Landslide provided customers access to approximately 5700 websites that offered a variety of pornography and that between 30 and 40 percent of Landslide’s business came from providing access to websites containing child pornography.

United States Attorney Stephens said, "I’m delighted with this sentence. The Reedy’s lived a life of luxury on the backs of the poor children they exploited. Their conduct mandated the tough sentences they received. "

United States Postal Inspector in Charge Al Holmes stated, "Today’s sentence reflects the serious intention of the United States Postal Inspection Service as well as the Postal Service to stop individuals and companies from trafficking in child pornography. We will continue our efforts to identify and bring cases such as these to the attention of the United States Attorney’s Office for prosecution."

United States Customs Service Resident Agent in Charge Wayne Frandsen said, "Individuals who traffic in child pornography are a plague on our society. The Customs Service will continue to do all that it can to bring these individuals to justice to answer for their crimes."

"Any time the sexual exploitation of children is involved, the FBI will be there," said Danny Defenbaugh, Special Agent in Charge of the Federal Bureau of Investigation.

United States Attorney Stephens praised the exceptional investigative work of the United States Postal Inspection Service, as well as that of the United States Customs Service, the Federal Bureau of Investigation and the Dallas Police Department’s Internet Crimes Against Children Task Force. The Department of Justice Child Exploitation and Obscenity Section provided invaluable legal assistance in the investigation and indictment of this case.

The case was prosecuted by Assistant United States Attorneys Terri M. Moore and Ronald C.H. Eddins.

[MadIvan]

It doesn't say what I want to hear - that these purveyors of filth should die.

Regards, Ivan

[montag813]

The frustration for the assistant DA, however, was once again that American law requires prosecutors to catch subscribers online.

Aww, poor little Nazi. It's so hard to run an efficient police state these days.

[Freedom2specul8]

TEXAS!

"An American couple grew rich on the misery of children until a tip-off on a post box number shattered the anonymity of the internet. Julian Coman in Fort Worth talks to the team who caught them...At a conservative estimate, Landslide Productions was making $1.3 million (£810,000) a month profit. "We discovered that this couple were making an absolute fortune," said Kenny Smith, a postal inspector at the Jack D Watson building."

[MadIvan]

Aww, poor little Nazi. It's so hard to run an efficient police state these days.

You want to let paedophiles off the hook even if they are subscribed? How would you like your head served back to you - raw or cooked?

Ivan

[montag813]

You want to let paedophiles off the hook even if they are subscribed? How would you like your head served back to you - raw or cooked?

My discomfort here has little to do with the subject at hand (which is repulsive), but with overzealous DA's and prosecutors, like this one, who complain about how inconvenient the Constitution is when they are trying to subvert individual rights, whether for speech, guns, assembly or otherwise. I don't trust these people who are often only looking for a headline case to boost their profile when they run for Governor (as they always do).

[MadIvan]

This is a subscriber list that they are working from. There is a whole list of paedophiles who gave out their name, address and credit card details. What the DA is complaining about is that this isn't enough - he has to actually catch them in the act online. It should be enough, however, to have signed on for something like this.

And damn your discomfort. Willingly signing up for this should be enough for any reasonable person. These are paedophiles we are discussing - the lowest form of scum there is. They have no more right to breathe God's clean air than a mass murderer.

Ivan

[Restorer]

Just curious.

How is catching subscribers actually online specifically required by the Constitution? Sounds more like a quirk of the law to me. If so, hopefully the law will be changed.

[montag813]

You want to let paedophiles off the hook even if they are subscribed?

Huh? Am I to understand that you would prosecute these people for a crime if they were only subscribed and never actually viewed the images? Ever hear of "caught in the act"? MadIvan, Minister of Thought-Crime.

[MadIvan]

Huh? Am I to understand that you would prosecute these people for a crime if they were only subscribed and never actually viewed the images?

You pay for a subscription. You are prosecuting them for purchasing child pornography.

I hope you are ready for the amount of anger that is going to come your way for suggesting that someone who actually goes through the process of buying child pornography should be let off the hook.

Ivan

[MadIvan]

By the way, if you're going to call me "Minister of Thought Crime", then I can very well call you Paedophile Enabler in Chief.

[LBGA]

Try dealing with a child who was molested, and then whine about personal liberties. It has taken me a lifetime to reconstruct a healthy self-image of a child who was abused.

This is one area where I think the government should have total access, to protect innocent children from the evil intentions of sick adults.