The Dept. of Justice announced the indictment of a retired FBI agent, William Roy Stone Jr., 62, for allegedly swindling a Granbury, Texas woman out of more than $800,000 by convincing her she was under “secret probation” for drug crimes.
Stone allegedly perpetrated the fraud by claiming he was still an active agent with the FBI.
The indictment was brought by Prerak Shah, acting U.S. attorney for the Northern District of Texas.
Stone pleaded not guilty and was released on his own recognizance.
“Mr. Stone denies each and every allegation,” defense attorney Gregg Gallian told Dallas NBC affiliate KXAS-TV. “He has entered his plea of not guilty and looks forward to exposing the truth of these misguided allegations in the courtroom.”
Gallian said in a statement that he is not commenting on the case specifically. “However, I can say that Mr. Stone will clear his name in the courtroom and, in doing so, will bring the actual facts of this case to light. There is much more to this story.”
Stone was indicted on:
- seven counts of wire fraud
- one count of wire fraud conspiracy,
- false impersonation of a federal officer,
- engaging in monetary transactions in property derived from unlawful activity
- false statements to law enforcement
If convicted on all counts, Stone faces up to 178 years in prison.
Stone retired from the FBI’s Dallas Field Office in October 2015. The alleged swindling began the next month. The indictment alleges that the scheme continued from November 2015 to August 2019.
The indictment alleges Stone worked with a coconspirator, referred to in the indictment by the letter “A” who received some or possibly most of the allegedly swindled proceeds.
These two defrauded the Texas woman, also anonymous, identified in the indictment by the initials C.T., by stating she was under secret federal probation for drug crimes in “Judge Anderson’s court in Austin, Texas.” and under the supervision of Stone and A.
Stone allegedly told C.T. that the fictitious federal judge appointed Stone and A to “mentor” and “supervise” C.T., and allegedly was forbidden from disclosing her secret probation status to anyone or risk imprisonment and the loss of her children.
- Claimed to C.T. he had the ability to monitor her cell phone communications
- Told C.T. that he discussed her probation with a psychiatrist and telling C.T. about those discussions
- Enlisted another person to leave messages on Stone’s phone purporting to be from the U.S. Drug Enforcement Administration “Intelligence Center.”
- Placed “spoof” calls between himself, C.T., and the fictitious Judge Anderson.
- Told C.T. that he needed to travel to Austin, Texas on many occasions to meet with Judge Anderson and discuss C.T.’s probation and that she had to pay Stone’s expenses associated with those trips.
- Convinced C.T. that her family wanted to take her inheritance away from her and that she should distance herself from them
- Told C.T. there were many terms and conditions of the alleged probation, including:
- C.T. had to report to Stone and Individual A on her activities and conduct while on probation
- C.T. could not travel outside of the State of Texas without the judge’s approval;
- C.T. had to provide a list to Stone of all the property and assets she had recently inherited from her grandmother
- C.T. had to transfer some of the inherited assets out of a trust and put those assets into her name
- C.T. was only allowed to use social media to promote her business
- C.T. could not disclose to anyone that she was on federal probation.
- Repeatedly threatened C.T. with incarceration and losing her children if she did not follow the alleged terms and conditions of probation.
Stone allegedly deposited monies he received from C.T. into his bank account or caused C.T. to pay third parties on his behalf.
Allegedly he used the money to purchase and remodel a property at 6812 Kennedy Drive, Colleyville, Texas, and a 2017 Toyota Tacoma, and a 2016 Mercedes CLS with some of the funds.
The government is seeking Stone’s forfeiture of any property, real or personal derived from proceeds traceable to the alleged crimes;
The indictment lists the following transfers of money from C.T.s accounts. to Stone:
- 6/3/2016 Cash $9,000
- 6/17/2016 Check to Park Place Mercedes $76,816
- 6/21/2016 Check to Park Place Mercedes $18,500.
- 6/24/2016 Cash $5,000
- 9/1/2016 Check payable to Texas Toyota of Grapevine $24,003.
- 9/13/2016 Cashier’s check to Stone $154,500
- 10/18/2016 Check payable to Bath Kitchen Design center $25,000.
Some Unanswered Questions
The total transfers of money from C.T. to Stone totals $312,819, leaving about $500,000 unexplained in the indictment.
The indictment alleges, “At Stone’s direction, C.T. also gave property to Individual A for his participation in the scheme.”
The indictment is silent on how much A received for his role in the alleged scheme or if A was granted immunity or received lesser charges in return for his or her “truthful testimony” in the case.
The indictment is silent on whether CT was previously convicted for the sale of drugs, a not unreasonable assumption for otherwise how would CT become convinced she was on secret probation for drug crimes – unless she believed in secret convictions as well.
It is also not mentioned in the indictment if CT is mentally competent. If not incompetent, CT is clearly an uninformed person. She did not know enough to Google “Judge Anderson” or find out if there is such a thing as secret probation.
The indictment also does not state how Stone met the alleged victim or whether Stone, as an FBI agent, had anything to do with her original drug charges, if she had any.
Curiously, and in support of Stone’s attorney’s statement that “there is much more to this story.”, the indictment alleges Stone “proposed to marry” CT, claiming “he would then seek discharge of her probation.”
The indictment is silent as to when Stone proposed or what her answer was or whether their relationship could be characterized somewhat differently by the defense.
Frank Report will be watching this case with interest.