UPDATE: CSPD Racketeering Investigation, 9 of 11 Suspects Now in Custody

By: KKTV
By: KKTV

A crime ring has been busted Wednesday, with nine people arrested for their role in an identity theft ring responsible for defrauding local victims and financial institutions of more than $63,000. The Colorado Springs Police Department announced eight of the arrests in a press conference Wednesday morning. The ninth arrest was made later on Wednesday.

The Financial Crimes Unit noticed an increase in reports of identity theft in March 2010, with a number of fictitious checks and counterfeit bills being passed around stores and restaurants in Colorado Springs. After a lengthy investigation involving the CSPD, U.S. Secret Service and U.S. Postal Inspection Service, direct links between a criminal organization self-identified as “Paper Cha$ers Ink” and 22 reported crimes, including identity theft and forgery, was found.

Officers say that “Paper Cha$ers Ink” commits crimes to support the members’ meth addiction, as to obtain supplies to continue their counterfeiting and identity theft operation.

Police say this group was breaking into homes and cars, stealing checks and credit cards and also printing up fake bills. They were using them at local businesses.

"They would take the lower level members of the organization and they would go into businesses and buy goods or cash checks. Then the goods were returned for cash or pawned," said Detective Wayne Lambert with the Colorado Springs Police Department.

Police say a break in the case came when phony bills and checks were found in a garbage can outside one of the suspect's rental homes. Inside the home police found equipment used to make fake money.

"We recovered three laptops we discovered had digital copies of federal reserve notes. They could alter them and print," said Ryan Campbell with the U.S. Secret Service.

Police say they later raided several other homes and motel rooms where money was also being made. This ring is accused of victimizing more than 60 families, banks, and businesses.

The primary leader of the organization has been identified as 29-year-old Nicholas R. Johnson.
His subordinate lieutenants are identified as: Lee Lacey, 35, Jennifer C. Burrell, 31 and Daimion Daniel Danyluk, 33.

Other members have been identified as: Alexandra C. Lofton, 24, Amanda R. Hall, 24, Mike Honneywell, 47, Justin James Ulmer, 21, Steven Michael Hoy, 20, Brandon Michael Bishop, 22 and Ruben Villarreal Alaniz, 55.

Johnson, Lacey, Burrell, Danyluk, Lofton, Honneywell, Hoy, Bishop and Alaniz have all been arrested. Alaniz was taken into custody Wednesday afternoon. Hall and Ulmer remain at large.

According to police, the suspects will face the following charges:

Mr. Johnson (In Custody) - one count of a Violation of Colorado Organized Crime Control Act a class 2 Felony, 5 counts of Identity Theft class 4 Felonies, and 4 Counts of Forgery a class 5 Felony. With these charges Mr. Johnson is facing a possible prison sentence if convicted of 4 - 48 years.

Mr. Lacey (Arrested) - one count of a Violation of Colorado Organized Crime Control Act a class 2 Felony, 3 counts of Identity Theft a class 4 Felony, and one count of Motor Vehicle Theft a class 5 Felony. With these charges Mr. Lacey is facing a possible prison sentence if convicted of 4-48 years.

Ms. Burrell (Arrested) - one count of a Violation of Colorado Organized Crime Control Act a class 2 Felony, one count of Identity Theft a class 4 Felony, one count of Theft a class 4 Felony, and one count of Forgery a class 5 Felony. With these charges Ms. Burrell is facing a possible prison sentence if convicted of 4-48 years.

Mr. Danyluk (Arrested) - one count of a Violation of Colorado Organized Crime Control Act a class 2 Felony, one count of Computer Crimes a class 4 felony, one count of Identity Theft a class 4 Felony, and two counts of Theft a class 4 felony. If convicted of all counts Mr. Danyluk faces a possible prison sentence of 4-48 years.

Ms. Lofton (Arrested) - one count of a Violation of Colorado Organized Crime Control Act a class 2 Felony, and one count of Forgery a class 5 Felony. If convicted of all counts Ms. Lofton faces a prison sentence of 4-48 years.

Ms. Hall (At Large)- one count of a Violation of Colorado Organized Crime Control Act a class 2 Felony, and one count of Money Laundering under CRS: 18-5-309 a class 3 Felony. With these charges Ms. Hall is facing a possible prison sentence if convicted of 4-48 years.

Mr. Honneywell (Arrested) - one count of a Violation of Colorado Organized Crime Control Act a class 2 Felony, and one count of Conspiracy to Commit Identity Theft a class 5 Felony. With these charges Mr. Honneywell is facing a possible prison sentence if convicted of 4-48 years.

Mr. Ulmer (At Large)- one count of a Violation of Colorado Organized Crime Control Act a class 2 Felony, and one count of Identity Theft a class 4 Felony. With these charges Mr. Ulmer is facing a possible prison sentence if convicted of 4-48 years.

Mr. Hoy (Arrested) - one count of Conspiracy to Commit Identity Theft a class 5 Felony. With this charge Mr. Hoy is facing a possible prison sentence if convicted of 1-3 years.

Mr. Bishop (Arrested)- one count of Theft by Receiving a class 4 Felony. With this charge Mr. Bishop is facing a possible prison sentence if convicted of 1-3 years.

Mr. Alaniz (At Large)- - Solicitation to Commit Money Laundering under CRS 18-18-408 a class 4 Felony, and one count of Forgery a class 5 Felony. With these charges Mr. Alaniz is facing a possible prison sentence if convicted of 1-12 years.

Anyone with any information about these crimes are asked to call CSPD at 444-7000 or leave an anonymous tip by calling Crime Stoppers at 634-STOP.


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  • by trustnoone on Dec 30, 2010 at 11:38 PM
    Look no one really knows the real deal but how about this for some truth k nick aka as chaos was the master mind behind it all see it all started with johnson dating jen burrel but then chaos fell in love with mrs lofton aka brooklynn who by the way works with the cops or I should say did but now she is to strung out on dope so now she is being. Charged so let's see clear back in may jen gets mad cas the cops on nick lee lacey and johnson and bishop all get pulled john is the only onea
    Arresrested lee tells the cops they can search the room that in his name now it get better back at the room justin mike and lofton are all there they find fake money printers so on and so on but yet no one else goes to jail wow now that the way to do a good job cops and as far as hoy he had notthingg to do with any of this and hall she didntt even meet any body in this group till august so all I know is this has to be the worest detective work I have ever seen not to mention the fact thatt they say its a crime ringg okay it would help if the detectives
    would do their jobs instead of leaving it up to a bunch of tweakers to snitch on each otther way to go oh yeah and where is lee lacey wiffe mentioned since she was in the car ahen thhey had the high speed chase and she wass one of the main printers sounds like the cops really know whhat there not




  • by puddintame Location: somewhere over the rainbow on Dec 23, 2010 at 08:32 PM
    legallity and morality aside;divide the $63k by the amount of total time sentenced.divide again by 11(people)"Crime does'nt pay"
  • by bre Location: colorado springs on Dec 19, 2010 at 04:17 PM
    how sad....i dnt kno who u r but u need 2 shut up i kno him and i kno he had very little to do with all of this and they dont even have any evidence against him and i bet if his wife and baby momma would not be very happy with you talking about her man.......and some girl u really need to stop snitching
  • by some girl Location: colorado springs on Dec 17, 2010 at 03:11 PM
    justin ulmer is currently living with romah miller down at 236 w. iowa ave. apt#1 fountain, co 80817
  • by how sad Location: cs on Dec 16, 2010 at 01:13 PM
    Knew the Bishop kid when he was younger and always hoped somehow he would turn out better than he was then...guess not...how sad Brandon
  • by Keeping Quiet Location: Colorado Springs on Dec 16, 2010 at 12:53 PM
    Well- I'm so relieved to know that Nick is finally being charged for this stuff... Seeing as he's been in jail for several months now- it's about time. He basically ruined my life- and although i'm unwilling to go into too many details... lets just say that he really opened my eyes to his breed of criminal. I had no idea one person could create so many problems... and i guess although i'm smarter now- i wish i'd never had to experience this lesson. HOWEVER I'm relieved that I didn't end up worse off than I did... and oh by the way, Nick- Karma's a b*tch. Glad you're finally going to pay the piper.
  • by 1Tat2dGuy Location: Colorado on Dec 16, 2010 at 09:43 AM
    "11 of them and they only came away with 63k? Should have stuck with their day jobs - they probably would have made more money that way." LoL x2!!
  • by TK Location: Colorado Springs on Dec 15, 2010 at 04:56 PM
    11 of them and they only came away with 63k? Should have stuck with their day jobs - they probably would have made more money that way.
  • by Doc Brown Location: Back to the Future on Dec 14, 2010 at 05:45 PM
    Tuesday morning? I'll get the Delorean! 1.21 Jigawatts!
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