1 00:00:00,000 --> 00:00:03,700 Goldberg: An FBI raid over cutout coupons? 2 00:00:03,804 --> 00:00:05,744 You gotta see it to believe it. 3 00:00:05,839 --> 00:00:08,479 How did a mother of three turn clipping 4 00:00:08,575 --> 00:00:11,775 into a $31 million rip-off? 5 00:00:11,879 --> 00:00:13,779 Did I hear that right? Like, $31 million? 6 00:00:13,881 --> 00:00:15,421 Everybody knows you pick up a pair of scissors, 7 00:00:15,516 --> 00:00:17,446 you cut out coupons, you go to the store, 8 00:00:17,551 --> 00:00:18,851 but there is a darker side to couponing. 9 00:00:18,952 --> 00:00:21,452 "Oh, you’re getting 89 of these free? 10 00:00:21,555 --> 00:00:23,595 Yeah, that makes sense to me." Boop boop. 11 00:00:23,690 --> 00:00:25,760 Miller: Get a little e-mail that basically said, 12 00:00:25,859 --> 00:00:29,599 "I know somebody who’s creating a lot of counterfeit coupons." 13 00:00:29,696 --> 00:00:31,696 It’s impossible to know they’re fake. 14 00:00:31,798 --> 00:00:34,068 Thomasson: I started monitoring the mail, 15 00:00:34,167 --> 00:00:36,637 and the return address was MasterChef Designs. 16 00:00:36,737 --> 00:00:38,907 Probably ’cause they’re cooking up them coupons. 17 00:00:39,006 --> 00:00:44,676 There were counterfeit coupons in every crevice of the house. 18 00:00:44,778 --> 00:00:47,378 We dug through her trash. 19 00:00:47,481 --> 00:00:49,981 Looking for coupons. 20 00:00:50,083 --> 00:00:53,423 I guess I can call her the Virginia Beach Robin Hood. 21 00:00:53,520 --> 00:00:54,620 [ Laughs ] 22 00:00:54,721 --> 00:00:56,461 Goldberg: Robin Hood? Hold up. 23 00:00:56,557 --> 00:00:58,257 Is she taking from the rich, 24 00:00:58,358 --> 00:01:00,058 or is she making herself rich 25 00:01:00,160 --> 00:01:03,330 with some do-it-yourself counterfeiting? 26 00:01:03,430 --> 00:01:07,600 This is the largest coupon fraud case in the history of coupons. 27 00:01:07,701 --> 00:01:10,901 Miller: MasterChef needed to be stopped. 28 00:01:11,004 --> 00:01:12,814 She conned America. 29 00:01:12,906 --> 00:01:16,176 I’m Whoopi Goldberg, and this is "The Con." 30 00:01:16,276 --> 00:01:17,836 [ Cash register beeps ] 31 00:01:17,945 --> 00:01:25,725 ♪ 32 00:01:25,819 --> 00:01:30,489 We needed someone who could read the fine print of a coupon con, 33 00:01:30,591 --> 00:01:32,261 so we got Laci Mosley, 34 00:01:32,359 --> 00:01:35,399 known to her fans as Scam Goddess. 35 00:01:35,495 --> 00:01:36,955 Mosley: I think a lot of times when you’re dealing with 36 00:01:37,064 --> 00:01:40,274 scammers or con artists, ambition really is the downfall. 37 00:01:40,367 --> 00:01:42,967 Ambition can be tied to greed and wanting more 38 00:01:43,070 --> 00:01:44,340 and wanting to be successful, 39 00:01:44,438 --> 00:01:47,568 but it can also be tied to wanting to be acknowledged. 40 00:01:47,674 --> 00:01:49,584 And I think that’s what everybody wants in this life, 41 00:01:49,676 --> 00:01:52,346 is to be seen and to feel important. 42 00:01:52,446 --> 00:01:53,776 There’s a lot of layers to this. 43 00:01:53,880 --> 00:01:56,120 This isn’t just a woman who was a bored housewife 44 00:01:56,216 --> 00:01:58,116 who decided to commit fraud. 45 00:01:58,218 --> 00:02:02,888 ♪ 46 00:02:02,956 --> 00:02:04,986 We’re talking about Lori Talens. 47 00:02:05,058 --> 00:02:06,358 She’s a woman of color. 48 00:02:06,426 --> 00:02:08,796 She spent most of her childhood destabilized, 49 00:02:08,862 --> 00:02:10,802 moving around the country. 50 00:02:10,864 --> 00:02:12,574 Her father was oftentimes deployed, 51 00:02:12,666 --> 00:02:13,726 and her mother was a single mother 52 00:02:13,800 --> 00:02:16,570 basically taking care of two kids. 53 00:02:16,637 --> 00:02:19,667 Eventually, Lori Ann makes her way to Virginia Beach. 54 00:02:19,740 --> 00:02:22,110 She’s staying very close to a military base. 55 00:02:22,175 --> 00:02:25,005 There’s a huge Filipino community out there. 56 00:02:25,078 --> 00:02:27,208 Goldberg: Being a military brat meant Lori Ann 57 00:02:27,280 --> 00:02:29,720 had to quickly fit into new social groups, 58 00:02:29,816 --> 00:02:32,716 and Virginia Beach was no exception. 59 00:02:32,786 --> 00:02:35,316 Orpilla: As far as the Filipino community in Virginia Beach, 60 00:02:35,389 --> 00:02:37,019 a lot of the kids have grown up together 61 00:02:37,090 --> 00:02:39,530 so we have each other’s back and support each other. 62 00:02:39,593 --> 00:02:43,163 When I met Lori, I think we were at least 18. 63 00:02:43,230 --> 00:02:46,030 I do remember eating at Olive Garden, 64 00:02:46,066 --> 00:02:48,426 and so that was the beginning of our friendship. 65 00:02:48,468 --> 00:02:50,938 Goldberg: But Lori didn’t just hustle to make friends, 66 00:02:51,004 --> 00:02:54,674 she was driven to succeed in just about everything. 67 00:02:54,741 --> 00:02:58,111 Orpilla: Lori, as a late teenager, was really into fixing cars. 68 00:02:58,145 --> 00:02:59,755 She actually wanted to know the mechanics 69 00:02:59,813 --> 00:03:02,183 and be able to fix them herself. 70 00:03:02,249 --> 00:03:04,019 And because she was also attractive, 71 00:03:04,084 --> 00:03:06,724 that started her foray into car modeling. 72 00:03:06,820 --> 00:03:08,560 She’s gorgeous, but is she smart? 73 00:03:08,622 --> 00:03:10,462 Yeah, she was. She was very business-minded. 74 00:03:10,524 --> 00:03:11,934 She always knows what she’s doing. 75 00:03:11,992 --> 00:03:13,092 She was always planning 76 00:03:13,193 --> 00:03:14,593 and always had, like, a bigger picture, 77 00:03:14,661 --> 00:03:16,131 and she wanted a really good life. 78 00:03:16,196 --> 00:03:17,796 If she tried to do something, she’d always make sure 79 00:03:17,864 --> 00:03:19,504 that she was always the best at doing it. 80 00:03:19,566 --> 00:03:22,096 Mosley: That kind of magnetism that she had 81 00:03:22,135 --> 00:03:25,835 led her to bringing more women into the car modeling industry 82 00:03:25,939 --> 00:03:29,179 and even becoming a car modeling agent. 83 00:03:29,242 --> 00:03:32,512 As her business expanded, she was marketing. 84 00:03:32,579 --> 00:03:34,779 She was reaching out to people, she was creating business cards, 85 00:03:34,815 --> 00:03:38,755 and that created an interest for her in graphic design. 86 00:03:38,819 --> 00:03:41,119 Goldberg: Lori Ann was thriving in Virginia Beach. 87 00:03:41,154 --> 00:03:44,024 She married her husband, Pacifico, in 2010 88 00:03:44,091 --> 00:03:46,091 and quickly added a couple of kids. 89 00:03:46,159 --> 00:03:49,229 With a combined income of over six figures, 90 00:03:49,296 --> 00:03:51,456 they were living the American dream. 91 00:03:51,531 --> 00:03:53,531 Bopp: When I first moved to Virginia Beach, 92 00:03:53,600 --> 00:03:54,730 I was in the Navy. 93 00:03:54,801 --> 00:03:56,941 I was an aviation maintenance administrator. 94 00:03:57,003 --> 00:04:00,073 So just live, work, that’s it. [ Laughs ] 95 00:04:00,140 --> 00:04:04,240 Lori Ann and I met through one of my friends 96 00:04:04,311 --> 00:04:06,181 that was in the Navy with me. 97 00:04:06,246 --> 00:04:08,776 When I met her, she was pretty successful, 98 00:04:08,849 --> 00:04:10,479 but at the same time, 99 00:04:10,550 --> 00:04:12,720 she wanted to spend time with her family. 100 00:04:12,786 --> 00:04:15,956 At the time, her son was 3 and so was mine, 101 00:04:16,056 --> 00:04:18,016 and when we were hanging out together, 102 00:04:18,125 --> 00:04:19,695 she was always cooking. 103 00:04:19,793 --> 00:04:20,863 I would always complain to her 104 00:04:20,927 --> 00:04:22,297 that she was trying to make me fat. 105 00:04:22,362 --> 00:04:24,902 [ Laughs ] She loved to cook. 106 00:04:24,965 --> 00:04:27,935 Actually, my son, he loves food, 107 00:04:28,001 --> 00:04:29,501 so he’s like, "You’re a MasterChef. 108 00:04:29,569 --> 00:04:30,869 I love how you cook." 109 00:04:30,937 --> 00:04:34,067 And she’s actually one of my best friends. 110 00:04:34,141 --> 00:04:37,641 Lori Ann definitely was the full package. 111 00:04:37,677 --> 00:04:40,177 She likes nice things, you know? Who doesn’t, right? 112 00:04:40,247 --> 00:04:43,317 You have to have the nice things in order to look good. 113 00:04:43,383 --> 00:04:45,423 She always had her nails, her hair done, 114 00:04:45,519 --> 00:04:47,789 and she was always dressed to impress. 115 00:04:47,854 --> 00:04:49,264 If she was to go to sleep and wake up, 116 00:04:49,322 --> 00:04:50,692 she’d be ready to go out the door. 117 00:04:50,791 --> 00:04:53,061 ♪ 118 00:04:53,126 --> 00:04:56,296 Goldberg: In 2014, Lori was put on bed rest 119 00:04:56,363 --> 00:04:58,633 while pregnant with her third child. 120 00:04:58,698 --> 00:05:03,598 Pacifico’s electrician salary was their only source of income. 121 00:05:03,670 --> 00:05:05,940 Orpilla: Lori, when she got pregnant with her daughter, 122 00:05:06,006 --> 00:05:07,466 she had bad edema. 123 00:05:07,541 --> 00:05:09,781 She had the edema in her legs and feet, 124 00:05:09,843 --> 00:05:12,053 so her legs were really swollen and everything like that, 125 00:05:12,112 --> 00:05:14,152 and at that time, I believe she was the breadwinner 126 00:05:14,214 --> 00:05:15,784 because she had all the different businesses, 127 00:05:15,849 --> 00:05:17,519 and that’s how they were making their income. 128 00:05:17,584 --> 00:05:20,254 So that really hurt them, you know? 129 00:05:20,320 --> 00:05:23,860 This is where she starts to get a little stir-crazy. 130 00:05:23,957 --> 00:05:25,827 When you’re used to being successful, 131 00:05:25,926 --> 00:05:27,026 running your own business, 132 00:05:27,093 --> 00:05:28,533 and being this excellent salesman, 133 00:05:28,595 --> 00:05:30,265 it kinda feels like such a waste of potential 134 00:05:30,330 --> 00:05:32,600 to just be laying up in bed eating cheese curls 135 00:05:32,699 --> 00:05:34,899 waiting for this freeloading baby to pop out. 136 00:05:34,968 --> 00:05:36,868 [ Indistinct talking on TV ] 137 00:05:36,970 --> 00:05:38,340 While she’s on bed rest, 138 00:05:38,405 --> 00:05:40,475 she’s flipping through TV channels, 139 00:05:40,540 --> 00:05:42,010 and what does she see? 140 00:05:42,075 --> 00:05:44,175 "Extreme Couponing." 141 00:05:44,277 --> 00:05:45,947 And I think that gave her ideas because, 142 00:05:46,046 --> 00:05:47,576 one, it was accessible. 143 00:05:47,681 --> 00:05:49,651 She could get coupons, bring them to her home. 144 00:05:49,716 --> 00:05:53,746 He spent nothing out of pocket for 100% savings. 145 00:05:53,820 --> 00:05:57,590 But two, she’s not working and she wanted to save money, 146 00:05:57,657 --> 00:05:59,527 or maybe even needed to save money. 147 00:05:59,593 --> 00:06:00,693 What is our total? 148 00:06:00,794 --> 00:06:02,204 Zero, zero, zero. 149 00:06:02,262 --> 00:06:04,632 [ Cheers and applause ] 150 00:06:04,698 --> 00:06:06,598 This was the perfect thing for her. 151 00:06:06,666 --> 00:06:08,626 Bopp: After she was off bed rest, 152 00:06:08,702 --> 00:06:11,002 she started doing some couponing, 153 00:06:11,104 --> 00:06:13,114 and I was like, "Oh, I wanna learn." 154 00:06:13,173 --> 00:06:15,543 ’Cause who doesn’t wanna buy a whole bunch of things 155 00:06:15,609 --> 00:06:17,209 for like a dollar? 156 00:06:17,277 --> 00:06:18,747 She was cutting up coupons, 157 00:06:18,812 --> 00:06:21,952 and we would be running around to different stores. 158 00:06:22,015 --> 00:06:25,025 Of course, it’s very exhausting to do that. 159 00:06:25,085 --> 00:06:27,955 Goldberg: Not as tiresome as waiting behind 160 00:06:28,021 --> 00:06:31,691 one of those deal chasers in the checkout line. 161 00:06:31,791 --> 00:06:35,901 Lori Ann did the couponing because it was lucrative. 162 00:06:35,962 --> 00:06:38,662 She wanted to give more to her family 163 00:06:38,732 --> 00:06:41,302 without being away from them. 164 00:06:41,368 --> 00:06:44,198 Walton: So Lori starts getting into this extreme couponing thing, 165 00:06:44,304 --> 00:06:46,244 and she has a knack for it. 166 00:06:46,339 --> 00:06:48,339 She starts her own couponing group called 167 00:06:48,441 --> 00:06:51,411 757 Couponing Brags and Deals, 168 00:06:51,511 --> 00:06:52,981 and people start joining, 169 00:06:53,046 --> 00:06:55,746 and sharing in her love and passion and zeal 170 00:06:55,849 --> 00:06:57,449 for extreme couponing. 171 00:06:57,517 --> 00:07:00,887 Goldberg: These clippers take their savings very seriously, 172 00:07:00,987 --> 00:07:04,587 and Lori emerges as a coupon queen. 173 00:07:04,658 --> 00:07:06,528 She was always willing to help others. 174 00:07:06,593 --> 00:07:09,863 She would donate to the dog shelters 175 00:07:09,930 --> 00:07:12,400 or, like, I remember seeing boxes of things 176 00:07:12,465 --> 00:07:14,965 that was going to church. 177 00:07:15,035 --> 00:07:16,405 Orpilla: When my husband passed away -- 178 00:07:16,469 --> 00:07:17,939 he died, he had a heart attack -- 179 00:07:18,038 --> 00:07:19,568 she came and brought me bags of stuff, 180 00:07:19,639 --> 00:07:21,439 so I’m looking at it and I’m like, 181 00:07:21,508 --> 00:07:23,008 "Oh, that must be from her couponing." 182 00:07:23,076 --> 00:07:28,246 I mean, there was, like, shampoo bottles, lotion, ramen, 183 00:07:28,315 --> 00:07:31,125 various miscellaneous stuff, toothbrush, toothpaste. 184 00:07:31,184 --> 00:07:34,624 She hung out with me till like 3:00 or 4:00 in the morning. 185 00:07:34,688 --> 00:07:36,218 She was there to console me, you know, 186 00:07:36,323 --> 00:07:37,493 at, like, my darkest hour. 187 00:07:37,557 --> 00:07:39,757 My husband just passed away, you know? 188 00:07:39,826 --> 00:07:42,826 Not many people would do that, and she did that for me. 189 00:07:42,896 --> 00:07:45,466 Goldberg: Lori used coupons to spread the love, 190 00:07:45,532 --> 00:07:47,702 but how exactly do they work? 191 00:07:47,734 --> 00:07:49,904 Does anybody out there understand the coupon? 192 00:07:49,970 --> 00:07:52,100 I need somebody to explain this to me. 193 00:07:52,172 --> 00:07:54,412 Cataldo: I teach consumers to coupon via workshops. 194 00:07:54,474 --> 00:07:55,744 I write a syndicated weekly column 195 00:07:55,809 --> 00:07:57,109 which runs all over the country, 196 00:07:57,210 --> 00:07:58,580 and I also work on the industry side, 197 00:07:58,645 --> 00:08:01,315 helping brands understand how consumers use their coupons. 198 00:08:01,348 --> 00:08:02,978 I mentioned in one of my blog posts to my readers 199 00:08:03,049 --> 00:08:04,719 that I have a black belt in tae kwon do. 200 00:08:04,784 --> 00:08:05,924 One of my readers came back and says, 201 00:08:06,019 --> 00:08:07,649 "Well, you’ve had one in couponing for years." 202 00:08:07,721 --> 00:08:10,291 So yes, I have a black belt in couponing, too. 203 00:08:10,357 --> 00:08:14,027 Goldberg: Wow, a black belt couponer. 204 00:08:14,127 --> 00:08:16,057 Many consumers don’t know the ins and outs 205 00:08:16,162 --> 00:08:17,462 of how coupons work. 206 00:08:17,564 --> 00:08:19,474 You cut the coupon, you hand it to the cashier, 207 00:08:19,566 --> 00:08:20,796 you save your dollar. 208 00:08:20,900 --> 00:08:22,670 What happens after that? 209 00:08:22,769 --> 00:08:24,469 The store takes that coupon 210 00:08:24,571 --> 00:08:26,271 and submits it to a clearinghouse. 211 00:08:26,373 --> 00:08:27,543 They actually get that dollar back 212 00:08:27,640 --> 00:08:29,710 from the manufacturer of the product. 213 00:08:29,809 --> 00:08:32,039 I consider coupons a win-win-win -- 214 00:08:32,145 --> 00:08:34,185 I’ve saved a dollar, my store has still sold the product 215 00:08:34,280 --> 00:08:35,950 for the price that they want to get for it, 216 00:08:36,049 --> 00:08:37,179 they get the dollar back, 217 00:08:37,283 --> 00:08:39,293 and the brand has invested that dollar 218 00:08:39,386 --> 00:08:41,386 in me having the product in my house. 219 00:08:41,488 --> 00:08:44,188 Aside from the aspect of saving money, it’s exciting, 220 00:08:44,290 --> 00:08:45,560 and when you start watching your bill 221 00:08:45,658 --> 00:08:48,028 come down and down and down, there is a definite thrill 222 00:08:48,128 --> 00:08:49,398 that keeps you doing this. 223 00:08:49,496 --> 00:08:50,856 Goldberg: A perfect system, 224 00:08:50,964 --> 00:08:53,274 but what happens when you add a con artist? 225 00:08:53,366 --> 00:08:55,996 Spoiler alert -- not everybody wins. 226 00:08:56,002 --> 00:09:06,852 Goldberg: Coupons have an obsessive following 227 00:09:06,946 --> 00:09:09,076 for people like Lori Ann Talens. 228 00:09:09,182 --> 00:09:11,382 Who are these people with the scissors? 229 00:09:11,484 --> 00:09:12,924 You know, everyone has this mental picture 230 00:09:13,019 --> 00:09:14,249 when you say "couponing" of a mom 231 00:09:14,354 --> 00:09:16,194 sitting at the kitchen table with a pair of scissors, 232 00:09:16,289 --> 00:09:18,089 and there are plenty of us doing that. 233 00:09:18,191 --> 00:09:20,291 But when you start to look at the demographics 234 00:09:20,393 --> 00:09:21,833 of who’s actually couponing, 235 00:09:21,928 --> 00:09:25,598 it really is not limited to any specific race, 236 00:09:25,698 --> 00:09:27,928 age, sex, all -- everybody. 237 00:09:28,034 --> 00:09:29,744 Everybody likes a deal. 238 00:09:29,836 --> 00:09:32,636 But the average consumer may not be aware 239 00:09:32,739 --> 00:09:35,509 that there’s an entire other side of couponing, 240 00:09:35,608 --> 00:09:39,278 the dark side, let’s call it, where there are counterfeits. 241 00:09:39,379 --> 00:09:40,749 I think counterfeits have been around 242 00:09:40,847 --> 00:09:42,617 almost as long as couponing has been around, 243 00:09:42,715 --> 00:09:44,515 but it’s become very sophisticated. 244 00:09:44,617 --> 00:09:46,147 Goldberg: In the digital age, 245 00:09:46,252 --> 00:09:48,852 coupons are now bought and sold online. 246 00:09:48,955 --> 00:09:51,285 Something bad made worse by the Internet? 247 00:09:51,391 --> 00:09:53,761 [ Gasps ] Quelle surprise? 248 00:09:53,860 --> 00:09:57,600 The fake coupons are largely distributed in online groups, 249 00:09:57,697 --> 00:09:59,797 social networks, private groups, 250 00:09:59,899 --> 00:10:01,829 secret groups, private messaging. 251 00:10:01,935 --> 00:10:03,945 Once you join one of these groups, 252 00:10:04,037 --> 00:10:07,437 you will find not only counterfeit coupons being sold, 253 00:10:07,540 --> 00:10:09,340 some of them will actually create the coupons for you. 254 00:10:09,442 --> 00:10:10,682 Well, what product do you want? 255 00:10:10,777 --> 00:10:12,277 How much dollar value do you want? 256 00:10:12,378 --> 00:10:13,848 To me, there’s no way these people 257 00:10:13,947 --> 00:10:16,547 do not realize that these are fakes, 258 00:10:16,616 --> 00:10:18,316 but there does seem to be a disconnect 259 00:10:18,418 --> 00:10:19,948 for some of these shoppers. 260 00:10:20,019 --> 00:10:22,859 If you wouldn’t use a counterfeit dollar bill 261 00:10:22,922 --> 00:10:25,292 or a counterfeit hundred -- let’s go big -- at the store, 262 00:10:25,391 --> 00:10:26,731 you know, everybody backs off of that 263 00:10:26,793 --> 00:10:27,993 and says, "Oh, no. There’s consequences. 264 00:10:28,061 --> 00:10:29,901 That’s counterfeiting. You could go to jail." 265 00:10:29,963 --> 00:10:32,573 Well, you can with this, too. It’s still counterfeiting. 266 00:10:32,632 --> 00:10:35,202 But for many people, I believe that thrill 267 00:10:35,301 --> 00:10:36,771 of getting the deal takes over, 268 00:10:36,836 --> 00:10:39,506 and they’ll do whatever they need to do to get it. 269 00:10:39,539 --> 00:10:42,439 Goldberg: Chasing that thrill takes a heavy toll, 270 00:10:42,542 --> 00:10:46,512 because retailers lose more than $100 million per year 271 00:10:46,579 --> 00:10:48,149 to fake coupons. 272 00:10:48,248 --> 00:10:49,718 It’s a huge problem for the industry, 273 00:10:49,782 --> 00:10:51,522 it’s a huge problem for your stores, 274 00:10:51,584 --> 00:10:54,294 and it’s a huge problem for your average consumer like me. 275 00:10:54,354 --> 00:10:55,594 Someone has to pay, 276 00:10:55,655 --> 00:10:58,055 whether it’s the store taking the loss or the brand. 277 00:10:58,158 --> 00:11:00,788 If the brand takes the loss, it filters down to us. 278 00:11:00,894 --> 00:11:02,464 It hurts everyone. 279 00:11:02,529 --> 00:11:04,659 Mosley: When you go to a grocery store 280 00:11:04,731 --> 00:11:07,631 some checkout cashier making minimum wage 281 00:11:07,734 --> 00:11:10,044 may not be interested in researching 282 00:11:10,103 --> 00:11:13,443 how you’re getting $24 off of a pack of Pampers. 283 00:11:13,540 --> 00:11:14,610 What do they have to gain from that? 284 00:11:14,707 --> 00:11:15,737 Nothing. 285 00:11:15,842 --> 00:11:18,012 I would just boop, boop, boop, boop, 286 00:11:18,111 --> 00:11:19,911 "Oh, you’re getting 89 of these free? 287 00:11:19,946 --> 00:11:21,806 Yeah, that makes sense to me." Boop, boop. 288 00:11:21,915 --> 00:11:23,585 I wouldn’t say anything, either. 289 00:11:23,650 --> 00:11:25,220 So then, by the time that this coupon 290 00:11:25,318 --> 00:11:27,348 reaches the manufacturer, 291 00:11:27,420 --> 00:11:29,690 it’s been so much time that’s elapsed, 292 00:11:29,756 --> 00:11:31,516 there’s probably not that much of a record 293 00:11:31,591 --> 00:11:33,361 of who made these purchases, 294 00:11:33,459 --> 00:11:35,899 so it makes it very difficult to stop this kind of fraud. 295 00:11:35,962 --> 00:11:38,562 Goldberg: You know it can take almost a month for the system 296 00:11:38,631 --> 00:11:40,331 to catch a fake coupon, 297 00:11:40,400 --> 00:11:42,600 and by then, the customer is gone, 298 00:11:42,669 --> 00:11:45,339 leaving behind only the cost. 299 00:11:45,405 --> 00:11:48,415 The reality is that counterfeit coupons does have a consequence. 300 00:11:48,474 --> 00:11:49,644 You know, it hurts both the brand 301 00:11:49,742 --> 00:11:51,242 and it hurts the manufacturer. 302 00:11:51,311 --> 00:11:54,151 This is not a situation of a guilt-free crime. 303 00:11:54,214 --> 00:11:56,624 Goldberg: In 2017, Lori is still running 304 00:11:56,683 --> 00:11:59,053 with a legitimate coupon crowd, 305 00:11:59,152 --> 00:12:02,992 but that doesn’t stop others from running into her. 306 00:12:03,056 --> 00:12:05,286 Lori’s the head of her own coupon group. 307 00:12:05,358 --> 00:12:09,458 An admin for another couponing group notices Lori’s group 308 00:12:09,562 --> 00:12:11,002 and starts looking into Lori 309 00:12:11,064 --> 00:12:13,204 and sees that she has a background in marketing 310 00:12:13,266 --> 00:12:15,496 and a background in graphic design 311 00:12:15,535 --> 00:12:18,575 and hits her up one day, shows her a coupon and says, 312 00:12:18,638 --> 00:12:21,138 "Hey, what do you think of this?" 313 00:12:21,174 --> 00:12:24,944 So Lori takes one look at that coupon and immediately says, 314 00:12:25,011 --> 00:12:28,311 "This is horrible. I can do better than this." 315 00:12:28,348 --> 00:12:33,288 And almost overnight, she comes up with a fake coupon 316 00:12:33,353 --> 00:12:35,863 that looks exactly like the real thing. 317 00:12:35,922 --> 00:12:38,022 The admin is so impressed, 318 00:12:38,091 --> 00:12:39,961 she offers to pay her to do more. 319 00:12:40,059 --> 00:12:42,899 So Lori becomes a part of that new group. 320 00:12:42,962 --> 00:12:45,102 They’re paying her to make these fake coupons. 321 00:12:45,164 --> 00:12:48,174 Lori Ann taught herself how to make barcodes, 322 00:12:48,268 --> 00:12:50,498 so her coupons are next level 323 00:12:50,536 --> 00:12:53,036 because the bar codes are legit and they work. 324 00:12:54,040 --> 00:12:55,370 We have to remember that this woman 325 00:12:55,441 --> 00:12:56,841 was accustomed to being the breadwinner. 326 00:12:56,909 --> 00:12:59,349 She’s had businesses since she was in her late teens. 327 00:12:59,412 --> 00:13:02,182 She loved the thrill and excitement of doing business 328 00:13:02,248 --> 00:13:03,648 and participating in sales, 329 00:13:03,716 --> 00:13:05,916 and now that she had become a stay-at-home mother, 330 00:13:05,985 --> 00:13:08,115 which for a lot of women is a dream, 331 00:13:08,187 --> 00:13:11,057 she was a working woman who found a lot of value 332 00:13:11,124 --> 00:13:13,594 in contributing financially to her household. 333 00:13:13,660 --> 00:13:14,930 So she was naturally inclined 334 00:13:15,028 --> 00:13:16,758 to try to fill that space in her heart 335 00:13:16,863 --> 00:13:20,203 and that kind of hole where she used to thrive. 336 00:13:20,266 --> 00:13:22,696 Goldberg: So Lori Ann has a glimpse of her value 337 00:13:22,802 --> 00:13:24,042 on the dark web 338 00:13:24,103 --> 00:13:28,213 and sees this as a way to become her own boss. 339 00:13:28,241 --> 00:13:32,181 Once she had created these new counterfeit, working coupons 340 00:13:32,245 --> 00:13:35,385 she had a new counterfeit coupon social media group 341 00:13:35,448 --> 00:13:37,278 where she started distributing them, 342 00:13:37,350 --> 00:13:39,250 and a lot of this starts that way. 343 00:13:39,352 --> 00:13:40,822 Walton: At that point, 344 00:13:40,920 --> 00:13:44,590 the people in her illegal couponing group could literally 345 00:13:44,624 --> 00:13:47,434 think of anything they want under the sun 346 00:13:47,493 --> 00:13:50,833 and ask Lori to create a coupon for it. 347 00:13:50,897 --> 00:13:55,097 That high-dollar name-brand detergent for $25, 348 00:13:55,168 --> 00:13:58,298 Lori can get you a coupon so it’s $5. 349 00:13:58,371 --> 00:14:02,171 Lori is like a magician. She can create anything. 350 00:14:02,241 --> 00:14:05,951 Goldberg: By selling excessive discounts on staple goods, 351 00:14:06,012 --> 00:14:09,722 Lori Ann now has the revenue for some luxuries. 352 00:14:09,816 --> 00:14:11,376 There was a lot of home improvements. 353 00:14:11,451 --> 00:14:13,151 You would just see her postings on Facebook. 354 00:14:13,219 --> 00:14:16,189 There was the addition of the pool, there was the roof, 355 00:14:16,255 --> 00:14:18,955 and then the tiles being replaced in the house. 356 00:14:19,025 --> 00:14:21,365 Lori not working and me seeing all those posts on Facebook 357 00:14:21,427 --> 00:14:22,757 with all the home improvements, 358 00:14:22,795 --> 00:14:24,095 I mean, there was a lot of speculation 359 00:14:24,197 --> 00:14:25,597 wondering how was she doing that. 360 00:14:25,665 --> 00:14:27,075 A lot of people are like... 361 00:14:27,133 --> 00:14:29,643 Goldberg: At what point does extreme thrift 362 00:14:29,702 --> 00:14:32,302 become outright greed? 363 00:14:32,372 --> 00:14:33,912 Walton: I understand the allure. 364 00:14:34,006 --> 00:14:35,566 I might get sucked into that, too, 365 00:14:35,641 --> 00:14:39,211 but at some point, I’d be like, "You know what? This is wrong." 366 00:14:39,245 --> 00:14:41,705 Maybe I’d be the one to call the Coupon Information Center. 367 00:14:41,781 --> 00:14:44,021 Goldberg: I’m sorry. You’re calling who? 368 00:14:44,117 --> 00:14:47,647 Mosley: The Coupon Information Center, or the CIC, 369 00:14:47,720 --> 00:14:49,390 is an organization that’s dedicated 370 00:14:49,489 --> 00:14:52,089 to being a watchdog in the coupon industry 371 00:14:52,158 --> 00:14:55,158 to prevent counterfeit coupons. 372 00:14:55,228 --> 00:14:57,928 Bud Miller is the head of the CIC. 373 00:14:57,997 --> 00:15:01,667 Now Bud, he’s an advocate for coupon legitimacy, 374 00:15:01,734 --> 00:15:03,204 a coupon cop, if you will. 375 00:15:03,302 --> 00:15:06,512 Miller: I’m the executive director 376 00:15:06,606 --> 00:15:08,336 of the Coupon Information Center, 377 00:15:08,408 --> 00:15:10,978 and we fight coupon fraud. 378 00:15:11,077 --> 00:15:13,807 One day in June of 2017, 379 00:15:13,913 --> 00:15:16,853 I just get a little e-mail via the website. 380 00:15:16,949 --> 00:15:19,619 It basically said, "I know somebody who’s creating 381 00:15:19,719 --> 00:15:23,059 a lot of counterfeit coupons, please contact me." 382 00:15:23,156 --> 00:15:27,126 Goldberg: The coupon community runs much deeper than I imagined. 383 00:15:27,226 --> 00:15:30,496 They have tipsters when someone has tainted the well. 384 00:15:30,596 --> 00:15:31,856 Cataldo: So, why would a member of a group 385 00:15:31,964 --> 00:15:33,974 turn these counterfeiters in? 386 00:15:34,066 --> 00:15:36,436 Guilty conscience, I think, is number one, you know? 387 00:15:36,536 --> 00:15:39,336 Number two is the coupons stop working. 388 00:15:39,439 --> 00:15:41,839 They bought these, and they didn’t work, and they’re angry. 389 00:15:41,941 --> 00:15:43,811 Now they’re gonna turn in the counterfeiter. 390 00:15:43,910 --> 00:15:45,710 Those tend to be the two things 391 00:15:45,812 --> 00:15:47,682 that turn someone into a tipster. 392 00:15:47,780 --> 00:15:49,010 Goldberg: With this hot tip, 393 00:15:49,115 --> 00:15:52,355 Bud dives headfirst into this new case. 394 00:15:52,452 --> 00:15:54,722 Miller: We started working with that informant, 395 00:15:54,821 --> 00:15:58,061 and we learned more about what was going on. 396 00:15:58,157 --> 00:16:00,787 They said the counterfeiter, or the con artist, 397 00:16:00,893 --> 00:16:04,033 was using the name MasterChef. 398 00:16:04,130 --> 00:16:06,370 Then we started seeing 399 00:16:06,466 --> 00:16:09,966 some of the images of counterfeit coupons. 400 00:16:10,069 --> 00:16:14,239 Very high-value counterfeits, $9 apiece. 401 00:16:14,340 --> 00:16:16,440 You don’t really see very many legitimate coupons 402 00:16:16,542 --> 00:16:19,112 at $9 apiece. 403 00:16:19,212 --> 00:16:22,052 MasterChef really had a good recipe 404 00:16:22,148 --> 00:16:24,048 to create these counterfeits. 405 00:16:24,150 --> 00:16:27,690 The graphics of the coupons were very well done. 406 00:16:27,787 --> 00:16:30,887 Some of them were printed on professional printers. 407 00:16:30,990 --> 00:16:34,790 MasterChef is operating at a very high level. 408 00:16:34,894 --> 00:16:37,704 It’s impossible to know they’re fake. 409 00:16:37,797 --> 00:16:40,097 Miller: It was clear that MasterChef, 410 00:16:40,199 --> 00:16:43,139 whose coupons were being redeemed all over the country, 411 00:16:43,236 --> 00:16:45,336 needed to be stopped. 412 00:16:45,438 --> 00:16:48,838 Goldberg: How do you tack down an unknown fake coupon mastermind? 413 00:16:48,941 --> 00:16:52,511 Just as you suspected -- through the mail. 414 00:17:00,219 --> 00:17:02,819 ♪ 415 00:17:02,889 --> 00:17:07,189 Goldberg: A tipster has informed coupon cop Bud Miller 416 00:17:07,293 --> 00:17:09,363 that there’s a new fraudster on the scene, 417 00:17:09,462 --> 00:17:13,072 and Bud is determined to take them down. 418 00:17:13,165 --> 00:17:15,695 At this point, Bud has no leads. 419 00:17:15,801 --> 00:17:18,571 He just has a tip and a dream, 420 00:17:18,604 --> 00:17:22,574 and he finds out that the person who’s running this coupon ring 421 00:17:22,675 --> 00:17:26,015 is going by the alias "MasterChef." 422 00:17:26,078 --> 00:17:28,548 Probably ’cause they’re cooking up them coupons. 423 00:17:28,614 --> 00:17:31,254 Goldberg: Gotta have an alias on the dark web. 424 00:17:31,317 --> 00:17:33,847 Rule number one -- don’t use your legal name 425 00:17:33,920 --> 00:17:36,220 when you’re doing illegal stuff. 426 00:17:36,322 --> 00:17:39,492 Miller: We knew that, you know, you have somebody called MasterChef 427 00:17:39,525 --> 00:17:43,095 creating kind of a toxic brew of counterfeit coupons 428 00:17:43,162 --> 00:17:46,002 ranging from standard-looking coupons 429 00:17:46,065 --> 00:17:48,225 like you would get in the Sunday paper, 430 00:17:48,301 --> 00:17:52,401 to discounts that you could use at fast-food restaurants. 431 00:17:52,471 --> 00:17:55,511 It was very clear that MasterChef was big leagues 432 00:17:55,608 --> 00:17:58,338 because of how well MasterChef was hidden. 433 00:17:58,411 --> 00:18:00,881 Goldberg: To join MasterChef’s group, 434 00:18:00,947 --> 00:18:03,277 you needed someone to vouch for you, 435 00:18:03,382 --> 00:18:05,252 a picture ID and proof 436 00:18:05,351 --> 00:18:07,191 that you’d already dirtied your hands 437 00:18:07,286 --> 00:18:09,586 with counterfeit coupons. 438 00:18:09,655 --> 00:18:12,185 No one wandered in there by mistake. 439 00:18:12,258 --> 00:18:16,328 MasterChef wanted to make sure that corporate security 440 00:18:16,395 --> 00:18:20,695 or law enforcement would never penetrate their groups. 441 00:18:20,800 --> 00:18:23,540 Goldberg: MasterChef is an elusive criminal, 442 00:18:23,603 --> 00:18:26,373 so Bud needs a law enforcement agency 443 00:18:26,439 --> 00:18:28,569 that knows how to track things down. 444 00:18:29,575 --> 00:18:30,875 Thomasson: The Postal Inspection Service 445 00:18:30,943 --> 00:18:34,153 is the law enforcement arm of the post office. 446 00:18:34,213 --> 00:18:36,523 We enforce over 200 federal statutes 447 00:18:36,582 --> 00:18:38,752 as they pertain to the United States mail, 448 00:18:38,818 --> 00:18:41,548 the postal infrastructure, and our employees. 449 00:18:41,621 --> 00:18:42,961 Most people have never heard of us. 450 00:18:42,989 --> 00:18:44,889 We used to be known as, like, the silent service. 451 00:18:44,991 --> 00:18:46,331 Nobody knew we were out there, 452 00:18:46,359 --> 00:18:49,129 but we’re one of the oldest federal law enforcement agencies 453 00:18:49,195 --> 00:18:51,005 in the country. 454 00:18:51,097 --> 00:18:53,167 I found out about this case through a phone call 455 00:18:53,232 --> 00:18:54,502 from Bud Miller. 456 00:18:54,600 --> 00:18:56,870 He introduced himself from the CIC, 457 00:18:56,936 --> 00:18:59,506 and, you know, I started going through my mind 458 00:18:59,572 --> 00:19:01,542 something like, was that counterintelligence something? 459 00:19:01,641 --> 00:19:03,681 And then he went further to explain, 460 00:19:03,776 --> 00:19:05,906 Coupon Information Center. 461 00:19:05,978 --> 00:19:08,108 I was like, "Did he just say coupons?" 462 00:19:08,180 --> 00:19:11,050 And he was calling to pitch the case to me, 463 00:19:11,117 --> 00:19:13,717 and he was wanting to know if I’d be interested in working it. 464 00:19:13,786 --> 00:19:16,356 Miller: There’s a number of elements you need 465 00:19:16,422 --> 00:19:19,062 for a successful law enforcement case. 466 00:19:19,125 --> 00:19:22,765 You need to be able to prove, is there a violation of the law? 467 00:19:22,828 --> 00:19:25,498 Mailing counterfeit coupons 468 00:19:25,598 --> 00:19:30,098 is a violation of the federal law called mail fraud. 469 00:19:30,169 --> 00:19:32,239 Miller: A dollar amount drives the interest 470 00:19:32,304 --> 00:19:33,874 of the US Attorney’s Office. 471 00:19:33,939 --> 00:19:37,679 What is the impact of the community or the nation? 472 00:19:37,743 --> 00:19:40,453 He didn’t have loss amounts for me. 473 00:19:40,513 --> 00:19:42,983 He didn’t have a total number of victims 474 00:19:43,082 --> 00:19:44,452 or anything at this point in time. 475 00:19:44,517 --> 00:19:47,017 So I actually turned him down, but not a hard no. 476 00:19:47,119 --> 00:19:50,159 It was a, "Go do some homework." 477 00:19:50,256 --> 00:19:53,126 Goldberg: While Bud is tackling his homework on loss numbers, 478 00:19:53,192 --> 00:19:56,432 Lori Ann is expanding her counterfeit empire. 479 00:19:56,462 --> 00:19:59,302 She wasn’t creating coupons just for manufactured products. 480 00:19:59,398 --> 00:20:00,468 There were restaurants. 481 00:20:00,533 --> 00:20:02,073 There were other retailers involved. 482 00:20:02,168 --> 00:20:03,838 In her case, probably started thinking, 483 00:20:03,903 --> 00:20:05,943 "What else can I make? What else is going to work? 484 00:20:06,038 --> 00:20:07,008 What else can I sell?" 485 00:20:07,106 --> 00:20:09,106 She’s got thousands of members. 486 00:20:09,175 --> 00:20:12,645 She’s drafted her husband, Pacifico, 487 00:20:12,712 --> 00:20:16,482 to start mailing out coupons to all these people every day. 488 00:20:16,549 --> 00:20:18,549 He’s become kind of her assistant. 489 00:20:18,617 --> 00:20:21,117 Goldberg: Despite Lori Ann’s secretive operation, 490 00:20:21,220 --> 00:20:26,060 Bud is tireless in finding the numbers he needs to open a case. 491 00:20:26,125 --> 00:20:27,965 Miller: That took some time in doing 492 00:20:28,027 --> 00:20:30,327 because you don’t have your hands 493 00:20:30,362 --> 00:20:35,302 on every single counterfeit the suspect is associated with. 494 00:20:35,367 --> 00:20:38,667 So you have to base it off the purchases. 495 00:20:38,738 --> 00:20:40,738 Goldberg: With the help of a coupon service, 496 00:20:40,806 --> 00:20:44,036 Bud is finally able to estimate the scale of loss 497 00:20:44,143 --> 00:20:45,683 from the fraud. 498 00:20:45,778 --> 00:20:49,448 So once we were able to identify that this was costing 499 00:20:49,515 --> 00:20:52,185 hundreds of thousands of dollars and more, 500 00:20:52,251 --> 00:20:55,351 then we were able to reach out to law enforcement. 501 00:20:55,421 --> 00:20:58,461 He contacted me again, it was in the summer of 2018, 502 00:20:58,557 --> 00:21:00,727 with a six-figure loss amount, 503 00:21:00,793 --> 00:21:02,793 which is enough to attract the interest 504 00:21:02,828 --> 00:21:06,098 of the US Attorney’s Office in Norfolk at the time. 505 00:21:06,165 --> 00:21:08,805 I knew that Bud’s source was using Telegram 506 00:21:08,868 --> 00:21:11,068 to communicate with whoever’s selling these. 507 00:21:11,137 --> 00:21:13,807 So I naturally went to the FBI 508 00:21:13,873 --> 00:21:15,613 to shop the case to see if I could find an agent 509 00:21:15,708 --> 00:21:17,638 that was interested in joining it. 510 00:21:17,710 --> 00:21:20,150 Specifically, I looked for someone on their cyber squad 511 00:21:20,212 --> 00:21:22,312 who would understand the geek speak, 512 00:21:22,414 --> 00:21:24,054 for lack of a better term, 513 00:21:24,116 --> 00:21:27,216 and I came across Special Agent Brill. 514 00:21:27,319 --> 00:21:29,489 Brill: I’m an FBI Special Agent 515 00:21:29,555 --> 00:21:31,795 based out of the Norfolk Field Office in Virginia, 516 00:21:31,857 --> 00:21:34,727 and I currently work cyber-related crime. 517 00:21:34,827 --> 00:21:37,957 This case first came from Inspector Thomasson, 518 00:21:38,063 --> 00:21:41,033 and honestly, the first time that he pitched it, I -- 519 00:21:41,133 --> 00:21:44,603 I laughed, um, because who cares? 520 00:21:44,703 --> 00:21:45,773 It’s counterfeit coupons. 521 00:21:45,871 --> 00:21:47,471 What kind of damage could be done? 522 00:21:47,573 --> 00:21:50,283 Goldberg: I’ll tell you, this is not a victimless crime. 523 00:21:50,376 --> 00:21:51,806 We all pay. 524 00:21:51,911 --> 00:21:54,251 When the losses from the toothpaste industry 525 00:21:54,346 --> 00:21:57,746 are passed onto you, you smile just a little less. 526 00:21:57,850 --> 00:21:59,420 ♪ 527 00:21:59,518 --> 00:22:00,618 Thomasson: Shannon came on board. 528 00:22:00,719 --> 00:22:02,219 We started digging into the case, 529 00:22:02,321 --> 00:22:05,521 still not knowing who it is that’s doing this. 530 00:22:05,624 --> 00:22:06,764 We knew it was Virginia Beach 531 00:22:06,859 --> 00:22:08,459 ’cause this is where the mailings originated. 532 00:22:08,561 --> 00:22:10,101 This is where the first scan was 533 00:22:10,196 --> 00:22:12,326 on the tracking information for the mailing, 534 00:22:12,431 --> 00:22:14,101 but we didn’t know the return address. 535 00:22:14,200 --> 00:22:16,840 So we didn’t know where it’s being mailed from. 536 00:22:16,936 --> 00:22:18,396 Is it being dropped at a blue box? 537 00:22:18,504 --> 00:22:19,974 Is it being dropped at a post office? 538 00:22:20,072 --> 00:22:21,472 Where is this scam originating? 539 00:22:21,574 --> 00:22:23,814 Goldberg: If you’re looking in Virginia Beach, 540 00:22:23,909 --> 00:22:27,279 let me suggest a certain newly remodeled house. 541 00:22:27,379 --> 00:22:28,779 There’s a woman by the pool 542 00:22:28,881 --> 00:22:31,451 who just might have some questions to answer. 543 00:22:31,550 --> 00:22:34,787 ♪ 544 00:22:34,787 --> 00:22:41,987 Goldberg: In 2019, 545 00:22:42,094 --> 00:22:45,504 the feds, the Postal Service, and the coupon cops 546 00:22:45,598 --> 00:22:47,698 are a year into their pursuit 547 00:22:47,800 --> 00:22:52,170 of a fake coupon savant known as MasterChef. 548 00:22:52,271 --> 00:22:54,671 Miller: We’d interviewed Bud’s source at length, 549 00:22:54,773 --> 00:22:57,713 and they told us they had received a picture 550 00:22:57,810 --> 00:23:00,550 of whoever’s selling these coupons to them, 551 00:23:00,613 --> 00:23:02,013 and they said on the metadata, 552 00:23:02,081 --> 00:23:05,581 I found longitude and latitude of where the picture was taken. 553 00:23:05,651 --> 00:23:07,521 And I’m like, well, that’s amazing, you know? 554 00:23:07,620 --> 00:23:09,390 Who would think of that, to look for that information? 555 00:23:09,455 --> 00:23:11,165 So I plugged the longitude and latitude coordinates 556 00:23:11,257 --> 00:23:12,617 into Google Maps, 557 00:23:12,725 --> 00:23:15,595 and it pops to a house in Virginia Beach. 558 00:23:15,661 --> 00:23:19,731 I then used databases we have access to to run that address, 559 00:23:19,798 --> 00:23:21,928 and the house comes back associated with 560 00:23:22,034 --> 00:23:25,544 Lori and Pacifico Talens. 561 00:23:25,604 --> 00:23:27,474 I pulled Lori Ann’s DMV information, 562 00:23:27,573 --> 00:23:28,973 and as soon as I saw her photo, 563 00:23:29,008 --> 00:23:31,478 I told Special Agent Brill, I said, that’s her. 564 00:23:31,577 --> 00:23:32,607 She’s like, "Why do you think that?" 565 00:23:32,711 --> 00:23:33,951 I said, "Well, remember the picture 566 00:23:34,046 --> 00:23:35,306 that the source sent us of her 567 00:23:35,414 --> 00:23:38,224 with the really nice French manicure on the hand?" 568 00:23:38,317 --> 00:23:39,547 She’s like, "That’s a bit of a stretch." 569 00:23:39,618 --> 00:23:42,388 I was like, "That’s her." 570 00:23:42,454 --> 00:23:43,824 Investigators have a good lead, 571 00:23:43,923 --> 00:23:45,593 but they have to build a case now 572 00:23:45,658 --> 00:23:48,428 and make it airtight before they confront Lori. 573 00:23:48,494 --> 00:23:52,264 Goldberg: How exactly are they building this case? 574 00:23:52,331 --> 00:23:54,871 Tracking down a suspect’s manicure 575 00:23:54,934 --> 00:23:58,674 would only scratch the surface of this criminal enterprise. 576 00:23:58,771 --> 00:24:00,771 Now you start digging into the person, 577 00:24:00,806 --> 00:24:02,936 figuring out who they are, what makes them tick, 578 00:24:03,008 --> 00:24:04,438 what is their history? 579 00:24:04,510 --> 00:24:06,010 So you start pulling criminal histories, 580 00:24:06,078 --> 00:24:07,708 you start looking for work histories, 581 00:24:07,780 --> 00:24:10,580 you start doing physical surveillance of the property, 582 00:24:10,649 --> 00:24:12,179 sitting outside and just watching, 583 00:24:12,251 --> 00:24:13,851 who’s coming, who’s going, 584 00:24:13,953 --> 00:24:17,463 what belongs, what doesn’t belong? 585 00:24:17,523 --> 00:24:19,463 Mosley: They drove to Lori’s neighborhood, 586 00:24:19,558 --> 00:24:23,828 and they sat in a car and watched them, 587 00:24:23,862 --> 00:24:26,502 I guess hoping to see groceries being brought home? 588 00:24:26,532 --> 00:24:29,332 Too many groceries? 589 00:24:29,401 --> 00:24:30,801 Thomasson: While doing physical surveillance, 590 00:24:30,869 --> 00:24:34,469 we saw a building permit posted on the front of the house. 591 00:24:34,573 --> 00:24:36,343 So I subpoenaed the City of Virginia Beach 592 00:24:36,408 --> 00:24:38,578 for all building permits that were associated 593 00:24:38,644 --> 00:24:40,714 with this particular residence. 594 00:24:40,779 --> 00:24:42,909 We got in touch with those contractors. 595 00:24:42,982 --> 00:24:46,492 One contractor talked about how nice Lori was, 596 00:24:46,518 --> 00:24:51,058 and she even gave his employees meal cards for free combo meals. 597 00:24:51,123 --> 00:24:52,623 We were like, "Oh, really?" He’s like, "Yes. 598 00:24:52,691 --> 00:24:54,291 I’ve still got some out in the truck." 599 00:24:54,360 --> 00:24:55,860 We were like, "Well, go get ’em and show ’em to us." 600 00:24:55,928 --> 00:24:59,128 He comes back in with about half a dozen combo meals. 601 00:24:59,231 --> 00:25:01,131 Lays ’em out on his desk. 602 00:25:01,200 --> 00:25:02,270 And we look at them, and we’re like, 603 00:25:02,334 --> 00:25:04,944 "Okay, well, these aren’t legitimate, 604 00:25:05,004 --> 00:25:06,574 so we’ll be taking ’em with us," 605 00:25:06,638 --> 00:25:08,208 and he’s like, "Oh, I can’t keep them?" 606 00:25:08,240 --> 00:25:10,140 Like, "No, you can’t. [ Laughs ] You can’t keep these. 607 00:25:10,209 --> 00:25:11,539 We’re taking them with us." 608 00:25:11,577 --> 00:25:14,307 Goldberg: The agents now have hard evidence that Lori Ann 609 00:25:14,380 --> 00:25:17,550 is trafficking in phony meal tickets. 610 00:25:17,616 --> 00:25:22,346 Who knew that you could tip your contractors with a cheeseburger? 611 00:25:22,421 --> 00:25:24,861 What the surveillance didn’t do for us 612 00:25:24,923 --> 00:25:27,363 is that it really didn’t tell us her pattern of life 613 00:25:27,426 --> 00:25:28,786 and that’s kinda what we wanted to establish. 614 00:25:28,861 --> 00:25:31,161 She never left the house. 615 00:25:31,263 --> 00:25:33,633 So we knew we had to do a little bit more digging to find out 616 00:25:33,732 --> 00:25:35,702 what else is going on behind the scenes. 617 00:25:35,768 --> 00:25:38,238 Some of the other tactics or techniques that we used is, 618 00:25:38,303 --> 00:25:39,913 we met up with her mail carrier. 619 00:25:39,938 --> 00:25:43,208 Mail carriers know a lot of information about you. 620 00:25:43,308 --> 00:25:44,908 They look at what mail you’re receiving 621 00:25:44,977 --> 00:25:47,107 and what mail you’re putting out there. 622 00:25:47,179 --> 00:25:48,779 And this mail carrier, this was great, he said, 623 00:25:48,847 --> 00:25:51,917 "Yeah, sometimes her mailbox is full of these envelopes." 624 00:25:51,984 --> 00:25:54,824 And that was important information for us to have 625 00:25:54,887 --> 00:25:57,017 because it showed that someone in the house 626 00:25:57,089 --> 00:26:02,429 was sending these envelopes from the actual house itself. 627 00:26:02,494 --> 00:26:04,034 Thomasson: I started monitoring the mail 628 00:26:04,063 --> 00:26:06,933 just to see what was moving through their mail, 629 00:26:06,999 --> 00:26:09,999 and I saw a mail piece that was addressed to someone 630 00:26:10,069 --> 00:26:11,639 in the Continental United States, 631 00:26:11,703 --> 00:26:14,113 and the return address was MasterChef Designs. 632 00:26:14,206 --> 00:26:16,736 ♪ 633 00:26:16,809 --> 00:26:20,549 MasterChef is the moniker that was used by the person 634 00:26:20,646 --> 00:26:22,876 that was selling the coupons on Telegram. 635 00:26:22,915 --> 00:26:25,755 I also saw that there was a Laurel, Maryland, address 636 00:26:25,818 --> 00:26:28,248 that was being used as the return address, a PO box. 637 00:26:28,320 --> 00:26:30,060 I reached out to that post office, 638 00:26:30,122 --> 00:26:31,892 and I said "Do you have this box number?" 639 00:26:31,957 --> 00:26:33,827 And they’re like, "No, that’s not a real number." 640 00:26:33,892 --> 00:26:35,532 So I knew it was a fake address. 641 00:26:35,627 --> 00:26:37,597 So that adds another part to the fraud. 642 00:26:37,663 --> 00:26:40,233 They’re trying to conceal where it’s actually coming from. 643 00:26:40,299 --> 00:26:43,469 Goldberg: So this mailbox has more than one red flag, 644 00:26:43,535 --> 00:26:45,565 but how can the authorities confirm 645 00:26:45,637 --> 00:26:49,037 MasterChef’s mail was sent by Lori Ann? 646 00:26:49,108 --> 00:26:50,708 Thomasson: Special Agent Brill and I discussed 647 00:26:50,776 --> 00:26:52,506 how are we were gonna lock them in 648 00:26:52,578 --> 00:26:54,448 that we know it’s them putting it in the mailbox, 649 00:26:54,513 --> 00:26:56,183 because if you just confront them with it, they can say, 650 00:26:56,248 --> 00:26:58,218 "Well, I don’t know who put it in my mailbox." 651 00:26:58,283 --> 00:27:02,153 We then elected to use a covert pole camera 652 00:27:02,221 --> 00:27:04,691 that was aimed specifically at their house. 653 00:27:05,791 --> 00:27:08,031 They set up a pole cam, 654 00:27:08,093 --> 00:27:10,333 and if you don’t know what a pole cam is, 655 00:27:10,395 --> 00:27:13,295 it’s when you literally put a camera on a pole, 656 00:27:13,365 --> 00:27:14,725 and it watched her house, 657 00:27:14,833 --> 00:27:17,773 because what they essentially needed was the mail fraud, 658 00:27:17,803 --> 00:27:22,043 so they needed a video of Lori taking her counterfeit coupons 659 00:27:22,141 --> 00:27:23,811 and putting them in the mailbox 660 00:27:23,842 --> 00:27:26,912 and flipping up the flag of fraud, 661 00:27:26,979 --> 00:27:29,309 and eventually, they got it. 662 00:27:29,381 --> 00:27:31,921 Thomasson: We were able to capture Lori Talens 663 00:27:31,984 --> 00:27:34,294 going to her mailbox with these parcels, 664 00:27:34,319 --> 00:27:37,619 putting them in the mailbox and putting the little red flag up. 665 00:27:37,689 --> 00:27:39,519 And that was a vital piece of evidence 666 00:27:39,625 --> 00:27:43,095 because we figured they would deny it and use that line of, 667 00:27:43,162 --> 00:27:44,402 "I don’t know who put it in my mailbox." 668 00:27:44,463 --> 00:27:46,203 Well, now you’ve got a video. 669 00:27:46,298 --> 00:27:47,968 How are you gonna dispute the video? 670 00:27:48,033 --> 00:27:49,433 Other things that we did to kind of 671 00:27:49,535 --> 00:27:51,045 help answer the questions that we had is, 672 00:27:51,103 --> 00:27:52,303 we did a trash pull. 673 00:27:52,371 --> 00:27:55,441 Those are not fun by any stretch of the imagination. 674 00:27:55,507 --> 00:27:58,237 We dug through her trash. 675 00:27:58,310 --> 00:28:00,780 Goldberg: What did they do? Oh, my goodness. 676 00:28:00,846 --> 00:28:03,006 They might be some white-collar crime fighters, 677 00:28:03,081 --> 00:28:06,151 but they are not afraid to get their hands dirty. 678 00:28:06,218 --> 00:28:07,918 We called the city, they said they’d provide 679 00:28:07,986 --> 00:28:10,716 a "clean truck" to us to dump this in. 680 00:28:10,789 --> 00:28:13,189 Clean just means nobody else’s trash is in it. 681 00:28:13,292 --> 00:28:14,432 It hasn’t been hosed out. 682 00:28:14,493 --> 00:28:17,003 It’s still got three weeks’ ago worth of stuff 683 00:28:17,062 --> 00:28:18,762 on the bottom caked on it. 684 00:28:18,830 --> 00:28:22,870 So they would go around and dump her trash can and hers only, 685 00:28:22,968 --> 00:28:24,568 or her recycling, 686 00:28:24,636 --> 00:28:26,806 and then we’d go to an offsite location. 687 00:28:26,872 --> 00:28:29,272 They’d then open the large back door of the truck. 688 00:28:29,341 --> 00:28:31,911 I would bring shopping bags and tie them on my shoes 689 00:28:31,944 --> 00:28:35,714 so I’m not tracking whatever out of the truck with me. 690 00:28:35,814 --> 00:28:38,084 We’d physically climb into the truck. 691 00:28:38,150 --> 00:28:40,550 Just think of everything you throw away, it’s in there. 692 00:28:40,619 --> 00:28:43,659 It’s rotting, it was hot, it’s nasty. 693 00:28:45,657 --> 00:28:48,857 They are rifling through this woman’s trash 694 00:28:48,927 --> 00:28:51,527 looking for coupons. 695 00:28:53,732 --> 00:28:55,802 In the recycling, we found discarded coupons. 696 00:28:55,901 --> 00:28:58,971 We found some of the packaging materials that we had seen 697 00:28:59,071 --> 00:29:01,771 in the coupons that were shipped to Bud’s source. 698 00:29:01,873 --> 00:29:04,813 There was a packing slip that she used pretty routinely 699 00:29:04,910 --> 00:29:06,210 in what she would ship out. 700 00:29:06,311 --> 00:29:08,381 We saw blank copies or copies where she had messed up on 701 00:29:08,480 --> 00:29:09,210 and just threw away. 702 00:29:09,314 --> 00:29:10,384 We found those in there. 703 00:29:10,482 --> 00:29:12,352 So now you know you’re at the right place, 704 00:29:12,451 --> 00:29:14,851 you know you’ve got the right house. 705 00:29:14,953 --> 00:29:17,123 At this point, they have amassed enough evidence 706 00:29:17,222 --> 00:29:18,322 to get what they need, 707 00:29:18,423 --> 00:29:23,463 which is a search warrant for an FBI raid. 708 00:29:23,562 --> 00:29:27,732 Goldberg: Wait till you see what they didn’t throw in the trash. 709 00:29:27,833 --> 00:29:30,202 ♪ 710 00:29:30,202 --> 00:29:36,742 Goldberg: In May of 2020, 711 00:29:36,842 --> 00:29:40,082 after two years of digging into packages and trash, 712 00:29:40,178 --> 00:29:42,308 the FBI finally gets a warrant 713 00:29:42,414 --> 00:29:47,524 to raid the home of Lori Ann and Pacifico Talens. 714 00:29:47,619 --> 00:29:49,189 Thomasson: When we showed up at her door, 715 00:29:49,288 --> 00:29:51,258 it was very early, 6:00 a. m. 716 00:29:51,356 --> 00:29:52,756 We’re pounding on the door. 717 00:29:52,858 --> 00:29:54,658 I’m calling her cellphone, trying to get her to answer, 718 00:29:54,760 --> 00:29:56,590 to come down, ringing the doorbell. 719 00:29:56,695 --> 00:29:59,905 There’s no more hiding for Lori and Pacifico now. 720 00:29:59,998 --> 00:30:01,328 The FBI’s in front of their house. 721 00:30:01,433 --> 00:30:04,403 The neighbors know something big is up. 722 00:30:04,503 --> 00:30:07,013 Thomasson: She takes quite a while to come answer the door, 723 00:30:07,105 --> 00:30:08,705 but as soon as she answers the door, 724 00:30:08,807 --> 00:30:10,037 it’s grab her, get her out, 725 00:30:10,142 --> 00:30:11,282 ’cause we need now to clear the house 726 00:30:11,376 --> 00:30:13,176 to make sure it’s safe for us to enter 727 00:30:13,278 --> 00:30:16,108 and nobody else is in the house that we don’t know about. 728 00:30:16,214 --> 00:30:19,354 So once you clear the house, the search commences. 729 00:30:19,451 --> 00:30:25,021 There were counterfeit coupons in every crevice of the house. 730 00:30:25,123 --> 00:30:29,093 Her kitchen drawers, we went through her closets. 731 00:30:29,194 --> 00:30:32,264 Even in the pockets of the coat jackets 732 00:30:32,364 --> 00:30:34,174 were stuffed with coupons. 733 00:30:34,266 --> 00:30:37,766 Her car, every crevice. 734 00:30:37,869 --> 00:30:40,739 It was astronomical, the amount of coupons we found, 735 00:30:40,839 --> 00:30:45,109 and the coupons themselves were valued at 736 00:30:45,210 --> 00:30:47,280 about a million dollars. [ Ding ] 737 00:30:47,379 --> 00:30:52,049 We also took away her computer and her cellphone. 738 00:30:52,150 --> 00:30:55,650 Her computer especially had over 13,000 images 739 00:30:55,754 --> 00:30:57,794 of coupons on them. 740 00:30:57,889 --> 00:31:00,429 We interviewed Ms. Lori Ann, with her approval, 741 00:31:00,492 --> 00:31:02,192 and we showed her one of the envelopes, 742 00:31:02,260 --> 00:31:04,030 and the envelope had a date on it. 743 00:31:04,096 --> 00:31:06,396 We asked her how the envelope got in her mailbox, 744 00:31:06,465 --> 00:31:09,775 and she was very evasive with her answers. 745 00:31:09,801 --> 00:31:13,371 We said, "Okay, well, we’ll show you how it got in your mailbox," 746 00:31:13,405 --> 00:31:17,345 and I produced a video with the same date as the envelope 747 00:31:17,409 --> 00:31:20,109 of her putting the envelope in her mailbox, 748 00:31:20,212 --> 00:31:23,252 and at that point, you could see it in her face 749 00:31:23,315 --> 00:31:25,125 that she realized she had been caught, 750 00:31:25,183 --> 00:31:29,493 and she decided to ask for legal counsel at that point. 751 00:31:29,554 --> 00:31:31,494 Thomasson: She’s now restricted as to where she can go. 752 00:31:31,556 --> 00:31:32,856 If she stays at the house, 753 00:31:32,924 --> 00:31:34,294 she’s not free to roam around the house. 754 00:31:34,359 --> 00:31:35,689 She’s in a fixed place 755 00:31:35,794 --> 00:31:37,804 with an agent watching her the entire time. 756 00:31:37,863 --> 00:31:39,003 She opted to stay 757 00:31:39,064 --> 00:31:41,434 because her kids were still upstairs sleeping. 758 00:31:41,500 --> 00:31:44,500 So Lori’s now sitting on her couch in her front room, 759 00:31:44,569 --> 00:31:48,409 watching this parade of box after box after box 760 00:31:48,507 --> 00:31:50,777 being taken out of the house as evidence. 761 00:31:50,842 --> 00:31:52,182 I was just, like, in shock. 762 00:31:52,244 --> 00:31:55,054 I was like, "No, this is not happening to somebody I know." 763 00:31:55,113 --> 00:31:56,853 And then it’s like, now your reputation is, 764 00:31:56,915 --> 00:31:58,775 you know, messed up because of this. 765 00:31:58,850 --> 00:32:00,590 I would be embarrassed. 766 00:32:00,652 --> 00:32:02,152 Bopp: To me, it was heartbreaking. 767 00:32:02,220 --> 00:32:05,490 The last thing that I would like for any of my friends 768 00:32:05,557 --> 00:32:07,387 is to be in trouble, 769 00:32:07,459 --> 00:32:10,459 especially if they have little ones. 770 00:32:10,562 --> 00:32:13,362 Thomasson: And I think the gravity of the situation 771 00:32:13,465 --> 00:32:16,735 was just getting heavier and heavier on her. 772 00:32:16,835 --> 00:32:18,775 And by the time we were done, 773 00:32:18,870 --> 00:32:20,810 she approached us and she told us, 774 00:32:20,906 --> 00:32:22,266 after she conferred with counsel, 775 00:32:22,374 --> 00:32:23,314 she would like to schedule 776 00:32:23,408 --> 00:32:26,138 a time to sit down and speak with us. 777 00:32:26,211 --> 00:32:29,111 We were provided a great opportunity. 778 00:32:29,181 --> 00:32:32,851 The goal of the interview was largely to find out, 779 00:32:32,951 --> 00:32:35,391 okay, how did you accomplish all this? 780 00:32:35,454 --> 00:32:38,824 Did you have any assistance from within the industry? 781 00:32:38,890 --> 00:32:41,830 And, of course, what can we do to prevent this 782 00:32:41,893 --> 00:32:43,363 from happening again? 783 00:32:43,428 --> 00:32:46,628 She provided us how she got into the counterfeit couponing group, 784 00:32:46,731 --> 00:32:48,001 which was important for us to know. 785 00:32:48,099 --> 00:32:50,699 She had provided us information on how she learned 786 00:32:50,802 --> 00:32:54,942 how to produce the coupons, how she learned how to barcode, 787 00:32:55,040 --> 00:32:58,610 who she worked with, who her members were. 788 00:32:58,677 --> 00:33:00,577 She was like, "Look, yeah, I got roped into crime, 789 00:33:00,679 --> 00:33:04,719 but also I was excellent at crime, like everything else." 790 00:33:04,783 --> 00:33:09,293 Brill: Her coupons were on high quality, glossy paper, 791 00:33:09,354 --> 00:33:11,764 with the corporate logo, the product image. 792 00:33:11,857 --> 00:33:12,987 You would never know. 793 00:33:13,058 --> 00:33:16,728 They were indistinguishable from real coupons. 794 00:33:16,795 --> 00:33:20,205 We had to bring in an actual counterfeit coupon expert 795 00:33:20,265 --> 00:33:23,945 to analyze all the coupons that we obtained from her house 796 00:33:24,002 --> 00:33:25,702 to see if they were actually counterfeit. 797 00:33:25,804 --> 00:33:28,314 They were absolutely perfect. 798 00:33:28,340 --> 00:33:30,680 The financial gain came from various different sources. 799 00:33:30,742 --> 00:33:33,782 It came from, obviously, dues paid into the group. 800 00:33:33,879 --> 00:33:36,449 It came from selling the coupons. 801 00:33:36,548 --> 00:33:40,448 She also would take the coupons and utilize them herself 802 00:33:40,519 --> 00:33:41,719 so they’re making a profit off it, 803 00:33:41,786 --> 00:33:43,756 so they’re making a little bit of money. 804 00:33:43,822 --> 00:33:45,822 Goldberg: Lori wasn’t the only one clipping profits 805 00:33:45,924 --> 00:33:48,134 from this coupon con. 806 00:33:48,226 --> 00:33:50,186 Pacifico, in his interview, 807 00:33:50,262 --> 00:33:52,562 did admit that he knew about the coupons. 808 00:33:52,631 --> 00:33:53,661 Obviously, he used them. 809 00:33:53,732 --> 00:33:56,802 His role in this was helping her ship. 810 00:33:56,835 --> 00:33:59,675 He would drive by a post office or a blue collection box 811 00:33:59,771 --> 00:34:02,841 on his way to work and drop them off into the box. 812 00:34:02,941 --> 00:34:04,781 Eventually, he got tired of doing that, 813 00:34:04,843 --> 00:34:06,613 so he offered the suggestion of, 814 00:34:06,645 --> 00:34:09,215 "Why don’t we just mail these from the mailbox at the house?" 815 00:34:09,314 --> 00:34:10,624 She agreed to it, 816 00:34:10,715 --> 00:34:12,615 so that’s when they started putting them in the mailbox 817 00:34:12,717 --> 00:34:14,517 and putting the red flag up. 818 00:34:14,619 --> 00:34:16,989 The biggest piece of the puzzle that was left at this point 819 00:34:17,022 --> 00:34:20,162 was determining a loss amount and all the victims. 820 00:34:20,225 --> 00:34:21,835 I’m going through her laptop, 821 00:34:21,893 --> 00:34:25,363 and there’s just all these files of just barcodes on computers. 822 00:34:25,463 --> 00:34:28,333 There was over 13,000 images. 823 00:34:28,400 --> 00:34:32,000 The two large coupon processors in the industry 824 00:34:32,070 --> 00:34:36,540 compiled the dollar losses for every single barcode 825 00:34:36,641 --> 00:34:38,441 that we provided to them 826 00:34:38,510 --> 00:34:42,610 and verified that they were indeed counterfeit. 827 00:34:42,681 --> 00:34:43,951 Thomasson: Bud called us, and he said, 828 00:34:44,049 --> 00:34:45,479 "I’ve got your loss amount for you." 829 00:34:45,517 --> 00:34:47,417 We were thinking maybe we’d get up to $5, $8 million, 830 00:34:47,485 --> 00:34:50,455 somewhere in that ballpark, which would be a great case. 831 00:34:50,555 --> 00:34:52,355 Bud comes out with $31.8 million. 832 00:34:54,593 --> 00:34:55,793 It just kind of takes your breath away. 833 00:34:55,894 --> 00:34:57,104 You’re amazed at that number. 834 00:34:57,162 --> 00:34:58,302 It’s like, "Did I hear that right?" 835 00:34:58,363 --> 00:35:00,973 You’re like, "$31 million?" He’s like, "Yeah." 836 00:35:01,032 --> 00:35:03,072 Goldberg: After ringing up all the evidence, 837 00:35:03,168 --> 00:35:05,238 Lori Ann and Pacifico Talens 838 00:35:05,337 --> 00:35:07,607 were both charged with mail fraud, 839 00:35:07,672 --> 00:35:12,382 and Lori Ann also got a count of wire fraud. 840 00:35:12,477 --> 00:35:16,247 Brill: The loss amount, to us, was just astronomical. 841 00:35:16,348 --> 00:35:19,218 There was, I believe, 100 companies that were victims, 842 00:35:19,317 --> 00:35:23,217 and one company in particular lost $8 million. 843 00:35:23,321 --> 00:35:26,121 Goldberg: With $31.8 million in damages, 844 00:35:26,224 --> 00:35:28,894 will Lori Ann be made an example of 845 00:35:28,994 --> 00:35:31,434 for the entire coupon community? 846 00:35:31,529 --> 00:35:33,729 ♪ 847 00:35:39,004 --> 00:35:40,204 ♪ 848 00:35:40,305 --> 00:35:41,975 Goldberg: Lori Ann and Pacifico Talens 849 00:35:42,073 --> 00:35:43,173 are under arrest, 850 00:35:43,274 --> 00:35:45,714 and their dark-web coupon con 851 00:35:45,810 --> 00:35:48,550 is brought to light by news outlets. 852 00:35:48,647 --> 00:35:51,217 The FBI has busted a couple in what they say is 853 00:35:51,316 --> 00:35:54,546 one of the largest fraud operations ever discovered. 854 00:35:54,653 --> 00:35:56,853 Female Newsreader: Lori Ann Talens created and designed 855 00:35:56,955 --> 00:35:59,125 counterfeit coupons on her home computer, 856 00:35:59,224 --> 00:36:00,534 then sold them online. 857 00:36:00,625 --> 00:36:03,785 This also shows how much of a con artist this woman was. 858 00:36:03,895 --> 00:36:07,595 Goldberg: For an artist who made so many fake coupons look perfect, 859 00:36:07,699 --> 00:36:11,039 what exactly does perfect justice look like? 860 00:36:11,136 --> 00:36:13,966 Brill: Lori Ann decided to plead to a criminal information, 861 00:36:14,072 --> 00:36:16,242 meaning that she wanted to cooperate well before 862 00:36:16,341 --> 00:36:19,111 we got to the phase of indicting with a grand jury, 863 00:36:19,210 --> 00:36:21,110 and that works out to her favor. 864 00:36:21,212 --> 00:36:22,552 It prevents her from getting slammed 865 00:36:22,647 --> 00:36:24,247 with a whole bunch of charges, 866 00:36:24,315 --> 00:36:27,185 and it shows that she’s being cooperative. 867 00:36:27,218 --> 00:36:30,618 Lori did plead guilty to mail fraud and wire fraud, 868 00:36:30,689 --> 00:36:35,359 and she ends up being sentenced to 12 years in prison for this, 869 00:36:35,427 --> 00:36:37,797 and her husband, Pacifico, pled guilty to mail fraud, 870 00:36:37,862 --> 00:36:39,262 and gets seven. 871 00:36:39,364 --> 00:36:42,074 ♪ 872 00:36:42,133 --> 00:36:43,373 Goldberg: While the investigation into 873 00:36:43,435 --> 00:36:45,775 the counterfeit coupon ring continues, 874 00:36:45,837 --> 00:36:48,837 Lori Ann’s accomplices could face charges. 875 00:36:48,940 --> 00:36:51,780 But for now, Lori Ann and Pacifico 876 00:36:51,843 --> 00:36:54,113 are the only ones in prison. 877 00:36:54,179 --> 00:36:57,779 So far, the biggest victims are their children, 878 00:36:57,849 --> 00:37:00,019 who will now be raised by their grandparents, 879 00:37:00,085 --> 00:37:03,395 a five-hour drive from their mother’s prison cell. 880 00:37:03,488 --> 00:37:05,518 Thomasson: You feel bad for the kids. 881 00:37:05,590 --> 00:37:07,330 They’ve lost both their parents now. 882 00:37:07,392 --> 00:37:09,992 But you don’t really feel sorry for Lori and Pacifico, 883 00:37:10,061 --> 00:37:11,561 ’cause they made those choices. 884 00:37:11,629 --> 00:37:13,559 At any point in time, they could have stopped. 885 00:37:14,899 --> 00:37:18,199 But she just kept expanding and getting bigger. 886 00:37:18,303 --> 00:37:20,243 Pacifico kept doing the ostrich defense -- 887 00:37:20,305 --> 00:37:22,345 stick your head in the sand and turn a blind eye to it. 888 00:37:22,440 --> 00:37:25,680 And in the end, they both paid the ultimate price, 889 00:37:25,744 --> 00:37:27,814 which is their freedom. 890 00:37:27,912 --> 00:37:29,252 Orpilla: I’m not mad at her. 891 00:37:29,347 --> 00:37:30,247 I’m a little disappointed, 892 00:37:30,348 --> 00:37:31,918 because the choices that they made 893 00:37:31,983 --> 00:37:35,153 are making their whole family suffer financially, emotionally, 894 00:37:35,220 --> 00:37:39,120 and I feel, as a mother, that that’s just really sad. 895 00:37:39,190 --> 00:37:42,360 Like, I look at my kids -- I have three kids, as well -- 896 00:37:42,427 --> 00:37:45,757 I just can’t imagine being put somewhere, you know, 897 00:37:45,830 --> 00:37:48,530 and not being able to see them every day, hug, 898 00:37:48,600 --> 00:37:51,800 you know, be there for their moments, their life moments. 899 00:37:51,870 --> 00:37:53,900 That’s -- That’s heartbreaking. 900 00:37:53,972 --> 00:37:59,542 Even though she’s a con, you know, according to the law, 901 00:37:59,611 --> 00:38:01,051 she has a good heart. 902 00:38:01,146 --> 00:38:02,706 She really does. 903 00:38:02,781 --> 00:38:08,551 She would be giving donations to church, to animal shelters. 904 00:38:08,653 --> 00:38:12,063 I guess I can call her the Virginia Beach Robin Hood. 905 00:38:12,157 --> 00:38:14,127 [ Laughs ] 906 00:38:15,026 --> 00:38:16,726 Orpilla: She was taking from these big companies 907 00:38:16,828 --> 00:38:20,298 and donating the items from her coupon haul 908 00:38:20,365 --> 00:38:22,705 to people that needed it. 909 00:38:22,801 --> 00:38:24,571 Yeah, you can look at it that way. 910 00:38:24,636 --> 00:38:25,796 That’s a lot of stuff, though. 911 00:38:25,870 --> 00:38:30,010 I mean I -- Yeah, that’s a lot of free stuff. 912 00:38:30,074 --> 00:38:32,084 Walton: A lot of people are conflicted about 913 00:38:32,177 --> 00:38:34,607 Lori and Pacifico’s jail sentences. 914 00:38:34,679 --> 00:38:36,309 On one hand, they call her a Robin Hood, 915 00:38:36,414 --> 00:38:39,124 but on the other hand, she’s just another scammer 916 00:38:39,184 --> 00:38:43,724 who figured out an ingenious way to get money from the system 917 00:38:43,822 --> 00:38:45,562 without being caught for years. 918 00:38:45,657 --> 00:38:47,057 I feel both ways about it. 919 00:38:47,158 --> 00:38:50,058 I feel bad for her kids, but I’m glad she got caught. 920 00:38:50,161 --> 00:38:52,331 She cost supermarkets and suppliers 921 00:38:52,430 --> 00:38:54,470 more than $30 million. 922 00:38:54,566 --> 00:38:56,496 Thomasson: The impact that she made, 923 00:38:56,601 --> 00:38:59,101 it doesn’t just affect the manufacturers and the retailers. 924 00:38:59,204 --> 00:39:00,774 It affects everyday Americans. 925 00:39:00,872 --> 00:39:02,112 She conned them, 926 00:39:02,207 --> 00:39:05,807 because now they’re having to pay for what she did. 927 00:39:05,910 --> 00:39:08,450 She conned America. 928 00:39:08,546 --> 00:39:10,006 Cataldo: Was justice served in this case? 929 00:39:10,114 --> 00:39:11,354 Yes, I think it was. 930 00:39:11,449 --> 00:39:14,849 From what I have read, Lori regrets what she did, 931 00:39:14,953 --> 00:39:16,793 and understands that it was wrong. 932 00:39:16,888 --> 00:39:20,118 Goldberg: Lori Ann’s story is a cautionary tale, 933 00:39:20,225 --> 00:39:22,565 one that she shares from behind the walls 934 00:39:22,660 --> 00:39:25,300 of a federal prison in West Virginia. 935 00:39:25,396 --> 00:39:27,726 [ Telephone beeping ] 936 00:39:27,832 --> 00:39:30,802 Woman: This call is from a federal prison. 937 00:40:51,382 --> 00:40:57,662 ♪ 938 00:40:57,755 --> 00:40:59,315 ♪ 939 00:40:59,424 --> 00:41:00,834 Brill: It still blows me away 940 00:41:00,925 --> 00:41:03,025 that counterfeit couponing is a thing, 941 00:41:03,127 --> 00:41:06,557 and that it’s out there, that it’s this complex, 942 00:41:06,664 --> 00:41:10,534 and to know that this is such a lucrative-type scheme 943 00:41:10,635 --> 00:41:12,575 was absolutely mind-blowing. 944 00:41:12,670 --> 00:41:16,310 ♪ 945 00:41:16,407 --> 00:41:19,437 -- Captions by VITAC --