Houston businessman pleads guilty to defrauding customers in eBay scam

Forty-eight year old Steve Todd Lanni of Houston appeared before U. S. District Judge Keith Ellison this past Thursday. He pleaded guilty to defrauding forty-six customers of $191,000.00 in a scam perpetrated on eBay. Under the guise of his company, Factory Direct Spas, Lanni sold hot tubs on eBay throughout the U. S. and Europe. Lanni’s business was located near I-10 and Beltway 8 in west Houston.

Lanni began selling units on eBay in 2004. At that time, he purchased the tubs from an out of state manufacturer. In early 2005, Lanni stopped purchasing tubs and began making them in a warehouse in Houston. He advertised them on eBay at fifty to seventy percent below retail value. He would require customers to wire payment prior to delivery to his bank accounts or to send a cashier’s check, money order or personal check by overnight delivery before production would begin on the hot tub. He would then promise delivery on the unit within six to eight weeks. After that time period would pass, he not only failed to deliver the tubs, but he would provide excuses as to why they were not delivered. He even used Hurricanes Katrina and Rita as excuses for causing interruptions in production. Lanni is accused of using the money he received to pay for his lavish lifestyle that included trips around the world, for visits to strip clubs, for expensive cigars, clothing, and massages, and for dining at expensive Houston area restaurants, spending as much as $300.00 dollars per day on meals.

An investigation was opened following complaints filed with the Houston Police Department and the Internet Crimes Complaint Center and was conducted jointly with the FBI’s Houston Area Cybercrimes Task Force and the U. S. Postal Inspection Service.

Lanni faces up to twenty years in federal prison and a $250,000.00 fine along with up to three years supervised probation upon release. He was also ordered to pay restitution to his customers. He was released on bond pending sentencing on February 23, 2010.