Co-conspirator in Spokane Blu-ray scam pleads guilty to fraud
After a botched first attempt, the man who served as executive vice president for what a grand jury called a bogus Blu-ray factory in Spokane pleaded guilty Tuesday to defrauding investors.
Sean Boyd initially told U.S. District Court Judge Thomas O. Rice he thought he “was doing something good” when he solicited money from investors in Erick Hansen’s Blue Star company, which was headquartered on West First Avenue in downtown Spokane
“I believed Erick Hansen was building a Blu-ray factory,” Boyd said.
Boyd wasn’t alone. Investors poured millions into Hansen’s project, based on promises of contracts with Michael Jackson’s father and imminent production of an animated film. Hansen’s company eventually earned the backing of business leaders and former Spokane mayors Dennis Hession and Mary Verner. But the FBI raided its offices in November 2013, uncovering evidence that was later used to indict Hansen and Boyd on charges of wire and mail fraud, as well as conspiracy to commit the crimes.
Hansen, who has pleaded not guilty in the case, was in the courtroom Tuesday when Boyd made his plea. Rice set a trial in his case for April, and Hansen faces a potential maximum sentence of 20 years in prison for each of the 16 criminal counts against him.
U.S. Assistant Attorney James Goeke and Hansen’s attorney, Chris Bugbee, said they were optimistic a resolution might be reached before Hansen’s case goes to trial. FBI Special Agent Lisa Jangaard, who is the lead investigator on the case, was also present in the courtroom.
Boyd’s statement that he trusted Hansen gave Rice pause, and he ordered a recess Tuesday morning so that Boyd could discuss the case with his attorney, James Parkins, and Goeke.
“I hear from you, saying you didn’t commit a crime,” Rice said before ordering the recess. “I can’t take a guilty plea from someone who professes their innocence.”
Boyd, clad in a suit jacket and jeans, returned to the courtroom two hours later and entered a guilty plea that Rice accepted.
“I aided in raising money for a Blu-ray facility that was not making any discs,” Boyd said.
The plea agreement makes no specific recommendation on jail time, indicating imprisonment would be contingent upon the assistance Boyd provides in the investigation.
A grand jury indictment alleges Boyd contacted investors across the country on Hansen’s behalf, collecting investments for the company that totaled about $7.6 million. Prosecutors allege Boyd, who was living in Utah and Nevada, pocketed commissions totaling about $450,000 during that time.
Prosecutors allege Hansen was using the investments not to begin operations at the Blu-ray plant in Spokane, but for his own personal gain and to cover California court fines totaling more than $650,000.
Boyd is scheduled to be sentenced May 2.
Bugbee requested that Rice order Hansen’s ankle bracelet removed, as his client is essentially “landlocked” in Los Angeles. Bugbee also asked that Rice authorize the court to pay some of the travel costs associated with bringing Hansen back to Spokane to attend hearings, because of Hansen’s lack of money. Rice will rule on both requests later.