St. Louis, MO — A $20 million telemarketing fraud ring that preyed on elderly Americans has collapsed, with the final defendant, Timothy Murphy, a/k/a Mr. Black, a/k/a Colby Muhlberg, a/k/a Arthur Whitton, 34, of Phoenix, Arizona, pleading guilty Thursday, February 22, 2018. Murphy admitted to one count of wire fraud in connection with telemarketing and one count of conspiracy to commit money laundering before United States Judge John Ross. Sentencing is scheduled for May 22, 2018.
All twenty defendants have now pled guilty in federal court to charges stemming from a sprawling, cross-border scheme that peddled fake business opportunities across the U.S. and Canada. The Phoenix-based operation, run under multiple shell companies including Smart Business Pros LLC of Warson Woods, Missouri, used deception and high-pressure sales tactics to swindle victims—many of them seniors—out of life savings. The enterprise laundered its illicit proceeds through purchases of gold and silver coins, funneling wealth to ringleaders Michael McNeill and Joshua Flynn, known internally as Mr. White and Mr. Pink.
McNeill, 48, of Phoenix, Arizona, and Flynn, 36, of Chandler, Arizona, both pled guilty on November 20, 2017, to wire fraud and conspiracy to commit money laundering. Their sentencings are set for March 6, 2018. Donald Schnock, 34, also of Phoenix, pleaded guilty to both wire fraud and money laundering on November 17, 2017, with sentencing scheduled for March 1, 2018. Russell Hibbert, 44, of Phoenix, pled guilty to conspiracy to commit wire fraud the same day, with sentencing set for March 8, 2018.
Other guilty pleas rolled in through late 2017 and early 2018. Jason Gallagher, 36, of Gilbert, Arizona, pled guilty to conspiracy to commit wire fraud on December 12, 2017, with sentencing set for April 19, 2018. Scott Shocklee, a/k/a Fredo, 40, of Phoenix, admitted guilt to conspiracy to commit money laundering on January 4, 2018, and is set for sentencing on April 10, 2018. Dean Miller, a/k/a Jeffrey Wilkes, 44, and Michael Silver, a/k/a Michael Wright, 33, both of Phoenix, pled guilty to conspiracy to commit wire fraud on January 12, 2018, with sentencing scheduled for April 17, 2018.
Ashley Powell, a/k/a Brittany Wilson, 26, of Phoenix, Arizona, pled guilty to wire fraud on January 22, 2018, before Judge Audrey Fleissig. Her sentencing is set for May 4, 2018. Andre Devoe, 43, of Tempe, Arizona, admitted to conspiracy to commit wire fraud, while Thomas Silha, a/k/a Keith Henderson, a/k/a Dave Marsh, 56, of Phoenix, pled guilty to wire fraud in connection with telemarketing. These pleas capped a two-year federal crackdown that began with the indictment of nine suspects in October 2016, followed by ten more in February 2017, and one final defendant in July 2017.
This case marks one of the largest takedowns of a domestic telemarketing fraud enterprise in recent years. Prosecutors emphasized the sophistication of the money laundering operation and the deliberate targeting of vulnerable populations. With every defendant now convicted, federal authorities are preparing for a series of sentencings that could deliver decades in prison. The DOJ vows to keep pressure on organized fraud rings that exploit trust and technology for profit.
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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