Scambusters, Preventing Internet Scams & Phishing Attempts

This blog is dedicated to help preventing internet fraud and internet scams. Scambusters was a radio show I started in Albany Oregon, but due to defaulted payment by the radio station we took the show offline. Regardless of this issue we still wish to help prevent internet fraud and save people from internet loss. I have been interviewed and featured in various publications such as the Wall Street Journal, New York Times & Daily News, The London Times & AARP Newsletters. Please watch this blog for latest tips and tricks and scams to avoid.

Friday, February 29, 2008

3 Years Prison for eBay Fraud - No Coins from Kary

Man sentenced for eBay fraud.

Fort Oglethorpe resident Kary Dean Head will spend three years in federal prison for defrauding eBay bidders out of more than $150,000.

Head had pleaded guilty in September to nine counts of wire fraud and fraud by swindle after charging more than 100 people for 1-ounce American Eagle Silver coins that he never delivered.

U.S. District Judge Harold L. Murphy read Head’s sentence Friday morning.

A victim of the scheme and an eBay fraud investigator testified at the two-hour sentence hearing.

Keith Melancon, an officer in the Air Force, testified how he had paid $120 for coins to reward his troops for jobs well done. He said he tried numerous times to contact Head regarding his purchase, but finally had to contact eBay to report fraud after waiting weeks for his shipment that never came.

eBay Fraud Investigator Jeremy Roybal described Head’s scheme as a “breakout fraud” where online merchants sell less valuable items in order to establish a good track record and then try to sell more expensive items in a short amount of time to cash in – without delivering the goods.

“It looks like an account that’s just bringing in money and nothing’s going out,” Roybal said of Head’s eBay activity.

Roybal said after the hearing that “it’s not common” for such grand-scale fraud to happen on eBay.

“I am deeply deeply sorry for the errors I have made,” Head told the court before hearing his sentence. “I am here today to ask for your mercy.”

But Federal Prosecutor Lawrence Sommerfeld told the court, “It’s unclear whether (Head) fully accepts responsibility for his crime.”

In a letter he sent to Judge Murphy in December after pleading guilty, Head describes a coin business that was growing so rapidly that it must have caused a “red flag” with eBay, prompting the company to shut his account down.

“eBay always shoots first and ask (sic) questions later,” Head wrote in the letter. He later implied that eBay had shut him down before he could deliver certain coins to certain customers.

But Sommerfeld reiterated it was not a “business mistake” that had happened with Head’s sBay account, but fraud.

Judge Murphy said it was “very said that a man is being sent to prison” because, among other things, he was trying to support his family.

“Mr. Head appears to be genuinely regretful, and it would do no good to punish him more harshly,” Judge Murphy said.

Head could have received as much as 20 years in prison.

In addition to serving time, Head must also pay $137,000 in restitution.


Thomas Stinnett said...

L and K automotive (Lisa and Kary Head are the owners) employed my husband for about three months. At first, they paid him every Friday like they were suppose to. The last few weeks, when it was time to pay him, they "had no money". My husband was suppose to be paid $450 yesterday and all the money they would give him is 100 dollars and they refused to give him any more money. The shop he worked at was on McFarland Avenue in Rossville and they have no OSHA requirements and they forged titles and pawned them. They had another employee, who quit due to the fact that they held money out of his check and wouldn't give him his money. When he quit, they blocked his car in that he had been paying for through them. They sold cars that had serious issues and would not tell the buyers. They are ripping everyone off. Kary has been arrested for internet and ebay fraud and was held in a federal prison for two years.

Anonymous said...

Kary Head is a known scumbag. He defrauded me out of $2300 in an eBay silver coin scam, and threatened to kill me when I reported him to the authorities. He wound up getting caught for defrauding 105 different people for $150,000 in total and went to jail for 3 years. He is the lowest of low. He even had his 21 year old son Joshua helping in the scam.

Anonymous said...

Kary also robbed $1900 from me. I bought many boxes of silver eagles from him, sent the money to him, and never got the coins. After contacting him, he promised payment plans , and then never paid what he agreed to. He paid me back precisely $0 of the $1900 he stole from me