Michael Lacey, a co-founder of the notorious classified ad website Backpage.com, was sentenced on Wednesday to five years in federal prison and fined $3 million for a single count of money laundering. This case has exposed a yearslong scheme in which Backpage allegedly facilitated and profited from prostitution through its... Read More »
Florida Woman Sentenced for Role in Laundering Money for International ‘Child Modeling’ Websites
A Florida woman has been sentenced to five years and three months in federal prison for her role in a money-laundering conspiracy that related to a subscription-based website that sexually exploited “child models.”
53-year-old Patrice Eileen Wilowski-Mevorah is accused of laundering at least $2.3 million for an internet-based business called Newstar Enterprise. Newstar Enterprise operated a series of websites called the Newstar Websites that offered a subscription-based content service. According to the Justice Department, the Newstar Websites depicted “sexual exploitation of vulnerable children under the guise of ‘child modeling.’”
Officials explain that after Wilowski-Mevorah joined Newstar Enterprise in 2009, she created a phony jewelry business. Under this business, she opened several payment processing accounts and bank accounts. Wilowski-Mevorah then used these different accounts to launder money that was obtained by Newstar Enterprise from its criminal dealings. After the money was put into the accounts, Wilowski-Mevorah would then transfer the money to principal members of Newstar Enterprise. Officials explain that Wilowski-Mevorah helped launder money for the company for at least ten years.
Newstar Enterprises was created in 2005 and operated through servers that were based in the U.S. and overseas. Officials explain that the company generated content that consisted of minors, both male and female. The minors, some who were young as six, posed in sexually explicit poses and provocative costumes including cheerleader and nurse outfits. The children were recruited as “child models,” and many of them were recruited from countries in Eastern Europe including Ukraine and Moldova. Through its operations, Newstar Enterprises shared over 4.6 million exploitive images of children. The DOJ explains that law enforcement officers were able to execute search warrants in the U.S. and abroad in order to seize the servers. Following the seizure, the Newstar Websites were disabled.
After generating the content of sexually exploitative images, Newstar Enterprises sold the content to subscription-paying customers. The company had a membership list of customers with subscribers ranging from at least 101 different countries. The Department of Justice details that over the course of the company’s operation, the company generated over $9.4 million.
The Middle District of Florida has also charged five other individuals in connection to the scheme. Tatiana Power faces 100 years behind bars if found guilty on her money laundering charges. Plamen Velinov is awaiting extradition and is facing charges related to child pornography. If convicted, he faces 50 years behind bars. Mary Lou Bjorkman has pleaded guilty to her charges of money laundering and is awaiting sentencing.
Two other co-defendants - Anthony Lee Kendall, who faced money laundering charges, and Kenneth Power, who faced child pornography charges - have since passed away.
In addition to Wilowski-Mevorah’s plea deal, the government required forfeiture of $236,410.70.
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