The Joplin Globe, Joplin, MO

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October 3, 2011

Carl Junction man admits massive eBay fraud

By Jeff Lehr news@joplinglobe.com

A Carl Junction man pleaded guilty Monday in federal court to defrauding more than 1,200 people across the U.S. and in other countries by selling forged celebrity memorabilia on eBay.

David B. Shryock, 49, waived indictment in U.S. District Court in Springfield, and pleaded guilty to wire fraud and being a felon in possession of a firearm. The U.S. attorney’s office for the Western District of Missouri puts the extent of the fraud committed by Shryock on eBay over the course of almost six years at more than $177,000.

A federal grand jury indicted the defendant in February on the weapon charge, which stems from an arrest Dec. 15 in Joplin. Police interrupted him in the midst of an alleged break-in at the office of attorney Ty Gaither, pursued his vehicle and caught him in possession of a 9 mm handgun taken from the attorney’s office.



FOUR-YEAR INVESTIGATION

The count of wire fraud was added as a consequence of an investigation by Carl Junction police that began nearly four years ago and grew to involve inspectors with the U.S. Postal Service.

“It’s the longest investigation I’ve ever worked,” Carl Junction police Chief Delmar Haase told the Globe on Monday.

Haase said the probe started with a tip received in December 2007 from a resident of California who purchased a counterfeit autographed album cover from Shryock through the Internet auction service eBay.

The police chief said that once the U.S. Postal Inspection Service became involved, victims starting turning up all across the nation and in other countries, such as Australia and Ireland. He said the case became too big to be prosecuted locally.

Haase said a search warrant executed in January 2008 at a home where the defendant lived on West Briarbrook Road resulted in the seizure of several albums and album covers, and a computer. A second search warrant executed in May of last year at a residence on Well Street in Carl Junction turned up more forged album covers, he said.



VAN HALEN ALBUM

Haase said Shryock specialized in forged autographs of classic rock musicians. The defendant’s plea agreement cites the example of a “signed” Van Halen album that he sold for the winning bid of $177. He also sold sports memorabilia with phony autographs, according to the U.S. attorney’s office.

Shryock admitted in court Monday that he used eight eBay accounts to defraud 1,232 victims between February 2005 and December 2010.

The federal prosecutor’s office said that to avoid detection and continue selling phony autographed memorabilia after complaints from purchasers resulted in suspensions of his eBay and PayPal accounts, Shryock opened other accounts in other people’s names. Proceeds from sales were deposited into those people’s accounts, and they would withdraw the money and pay Shryock, retaining an agreed upon percentage for their assistance, the U.S. attorney’s office said.

Haase said those who assisted Shryock would often wind up losing money because eBay or PayPal would deduct the amounts of the purchases from their accounts once the fraud was reported by victims.

The U.S. attorney’s office said Shryock defrauded the people who bought items from him of almost $175,000. The Internet companies eBay and PayPal lost $2,512 as a result of having to reimburse customers for fraudulent transactions.

Shryock could be assessed up to 30 years in a federal prison without parole and a $500,000 fine for the convictions. He also may be subject to a restitution order. A sentencing hearing will be scheduled upon completion of a pre-sentence investigation by the U.S. Probation Office.





Past conviction



DAVID SHRYOCK was assessed a suspended sentence in 2002 on a conviction in Jasper County for unlawful merchandising practices. He has charges pending against him in Jasper County of being a chronic offender of driving while intoxicated and misdemeanor identity theft.

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