CINCINNATI—Frederick Reed, a.k.a.
“Freaky Fred,” 59, of Lima, Ohio was sentenced in U.S. District Court today to
10 years in federal prison for leading a marijuana trafficking conspiracy,
using the proceeds to buy approximately 100 parcels of real estate in and
around Allen County, Ohio, and directing a multi-state shoplifting ring
targeting numerous commercial supply stores in a number of states to get items
to maintain the properties.
Carter M. Stewart, United States
Attorney for the Southern District of Ohio; Edward J. Hanko, Special Agent in
Charge, Federal Bureau of Investigation, Cincinnati Field Division (FBI); and
Ohio Attorney General Mike DeWine and the Ohio Bureau of Criminal
Identification and Investigation (BCI) announced the sentence imposed today by
U.S. District Judge Michael A. Barrett.
Reed pleaded guilty on March 14, 2011,
to one count of conspiracy to traffic more than 1,000 kilograms of marijuana
and one count of transporting stolen property in interstate commerce. According
to court documents, Reed admitted that the organization was responsible for the
distribution of at least 33,000 pounds of marijuana.
Reed used some of the profits from the
distribution of marijuana to purchase approximately 100 pieces of real estate,
either individually or jointly with Susan Kay Risser, 55, in and around Allen
County, Ohio, that they used as rental property. To maintain the rental
properties, Reed admitted that he conspired with others to steal more than $1
million in merchandise from building and commercial supply stores in Ohio,
Indiana, Alabama, Kentucky, Arkansas, Tennessee, Florida, Pennsylvania,
Illinois, Kansas, Nebraska, New York, Georgia, North Carolina, South Carolina,
Texas, Washington, Missouri, and elsewhere.
Reed and eight others were indicted on
December 15, 2010, and arrested on December 22. Seven of his co-conspirators
have pleaded guilty and been sentenced. Risser pleaded guilty on September 16,
2011, to one count of conspiracy. Risser’s sentence includes a personal money
judgment against her of $3,694,700.
Today Judge Barrett ordered Reed placed
on home confinement due to a serious medical condition, pending a report date
to federal prison. Reed was also ordered to forfeit his interests in the real
estate.
“The U.S. Marshals Service is
coordinating their efforts with Allen County and Lima government and housing
officials to ensure as little disruption as possible for the occupants of the
properties while they are in the marshals’ custody,” Stewart said. “The
properties will eventually be sold to new owners.”
The investigation grew from a 2006
investigation based in Clermont County, Ohio, that resulted in guilty pleas
from 11 people in the case U.S. v Jose Alfonso Silveyra et al.
Reed was also fined $4,000 and ordered
to serve five years of supervised release after his prison term ends.
Stewart commended the joint
investigation by agents in the FBI’s Cincinnati Division along with agents in
the FBI’s resident agencies in Lima, Ohio, and Nashville, Tennessee, as well as
the U.S. Postal Service Office of Inspector General, Ohio BCI agents, and
deputies and officers with the sheriff’s offices in Clermont, Adams, and Allen
counties in Ohio and the police departments in Lima and Ft. Shawnee, Ohio;
along with the Davidson County (Tennessee) Sheriff’s Office; the Franklin,
Brentwood, and Gallatin Police Departments in Tennessee; and the Phoenix,
Arizona Police Department.
Stewart also commended District Criminal
Chief Kenneth L. Parker, who prosecuted the case.
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