California Con Man Sentenced to 16 Months for $3.3M Email Heist

A 47-year-old Inglewood, California, man, Leslie Redd III, was sentenced to 16 months in prison for his role in a brazen email compromise scheme that swindled over $3.3 million from two boatbuilding companies.

According to the U.S. Attorney’s Office for the Western District of Washington, Redd, 47, pleaded guilty to conspiracy to commit wire fraud and wire fraud. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez expressed concern over the severe impact the crime had on the victim businesses and their employees, causing delayed and reduced pay, and threatening the companies’ viability.

Redd’s scheme, which began in October 2018, involved a co-conspirator in Pennsylvania and others. A malicious link was sent to an employee’s email address at an engine-building company, allowing the conspirators to gain access to the company’s email system and review various emails, including those transmitting invoices.

The conspirators then posed as a billing executive at the engine manufacturing company and sent the boat-building company instructions to wire the payment funds to a specific bank account set up by the conspirators in Pennsylvania. On October 29, 2018, the boat builder paid the invoice for $3,316,730 by wiring the funds as directed by the fraudulent emails.

Redd was ordered to pay $2,802,368.24 in restitution, the amount of the outstanding loss. He will also serve three years of supervised release following his prison sentence. The case was investigated by the FBI Seattle Office Cyber Task Force and prosecuted by Assistant U.S. Attorney Andrew Friedman and former Assistant U.S. Attorney Siddharth Velamoor.

The brazen scheme highlights the increasing threat of cybercrime and the importance of vigilance in protecting against email scams. Redd’s sentence serves as a warning to those who would seek to exploit the vulnerabilities of others for personal gain.

In a statement, U.S. Attorney Tessa M. Gorman said, “This case demonstrates the importance of holding individuals accountable for their crimes, no matter how sophisticated the scheme may seem. We will continue to work tirelessly to protect the public from these types of crimes.”

The case is a reminder that cybercrime knows no borders, and those who engage in such activities can have far-reaching consequences. Redd’s actions not only damaged the victim businesses but also threatened the livelihoods of their employees.

As the cybercrime landscape continues to evolve, it is essential that individuals and businesses take proactive steps to protect themselves against these types of scams. By staying informed and being vigilant, we can all play a role in preventing these types of crimes and holding perpetrators accountable.