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DES MOINES, IOWA -- U. S. Attorney Nicholas A. Klinefeldt announced Thursday that five defendants have pleaded guilty to federal wire fraud conspiracy charges arising out of an organized retail theft investigation. The five defendants are William Lavern Allen,
Joseph Alan Shafer, Lynn Francis Harriman, Margaret Marie Haines, and Gretchen Christine Bacon-Starr. The investigation was led by the Ottumwa Police Department, with the assistance of the Southeast Iowa Inter-Agency Drug Task Force, Iowa Division of Narcotics Enforcement, Fort Madison Police Department, Oskaloosa Police
Department, and Dubuque Police Department.

All five defendants made factual admissions as part of their guilty pleas. Shafer and Haines admitted that they, along with others, made trips around Iowa and to neighboring states for the purpose of stealing large quantities of merchandise from retail stores, including Walmart, Sam’s Club, Menards, and others. The stolen merchandise included tools, electronics, and pet supplies, among other things. According to Shafer, the retail value of the stolen property from a single trip would often exceed several thousand dollars. Shafer admitted to stealing more than $70,000 in property over the life of the conspiracy.

Shafer admitted that he would often take the stolen property to Lynn’s Pawn Shop in Ottumwa, Iowa. Lynn’s, at the time, was owned by Harriman. According to Shafer, he and Harriman used code words regarding the source of the property and would say that it was from “up north” or “down south” to indicate that it was stolen.

Allen admitted that he would visit Lynn’s Pawn Shop frequently to purchase stolen property. According to Allen, Harriman would often put the stolen property in a special place behind the counter or in a large, walk-in cooler. Harriman admitted that he wouldsometimes call Allen to let him know the property was available. Both Harriman and Allen admitted that they knew the property was stolen.

On some occasions, Allen would purchase stolen property directly from Shafer and other thieves. By cutting out Harriman as the middleman, Allen and the thieves would make more money for themselves. Defendant Gretchen Bacon-Starr was sometimes present during the deliveries of stolen property and would help Allen gather the merchandise and count money.

Allen ultimately sold the stolen property on the website ebay.com under user IDs belonging to himself and Bacon-Starr. Bacon-Starr knew the stolen property was being sold in this manner and admitted to benefitting from the proceeds. Harriman admitted to knowing that Allen planned to sell the property on the Internet.

Allen admitted to selling thousands of stolen items on ebay.com over the life of the conspiracy and to generating more than $120,000 in revenue from those sales. Shafer and Haines also admitted to using ebay.com, as well as amazon.com, to sell stolen property.

Klinefeldt praised the Ottumwa Police Department and other state and local law enforcement agencies for their investigative work. “These guilty pleas are the culmination of many months of high-quality investigation by state and local law enforcement agencies,” he said. “Their hard work once again proves the adage that ‘crime doesn’t pay,’ and I hope it will deter other people tempted to try to make money through theft and deceit.”

Conspiracy to commit wire fraud is subject to a maximum sentence of 20 years in prison and a fine of $250,000. Sentencing will be held for each defendant at a future date.

 To see the Indictment leading to the arrests in theft ring, click here.