Two Colorado Teens Killed in Alleged Sex Video Blackmail Plot

Aug. 13, 2013 — -- A Colorado man has confessed to shooting and killing two teenage boys who allegedly tried to blackmail him for $20,000 with a video of him asking a boy for sex, according to a police affidavit.

The accused murderer is William Otto, 43, of Adams County, Colo., and the victims are Gustavo "Danny" Espinosa-Gamboa, 16, and Jonathan Gonzalez, 15.

The boys were last heard from on Friday and when Gonzalez's sister couldn't find him, she spoke to some of the boys' friends who told her that Gustavo and Jonathan had recorded a video on Gustavo's phone of a man in the neighborhood named "Billy" who Gustavo and his friends frequently visited, the affidavit said. Billy would turn out to be William Otto, according to the police.

A friend of the boys told police that Otto was known to allow teenage boys from the neighborhood to come to his house and drink alcoholic beverages, the document states.

Gustavo's friends said that, "the video was of Billy asking Gustavo Espinosa-Gamboa to let Billy perform oral sex on Gustavo Espinosa-Gamboa. The video also showed Billy touching Gustavo Espinosa-Gamboa inappropriately," the police report states.

The boys' friends said that Gustavo and Jonathan's plan was to "show the video to Billy and blackmail him for money over the video."

Police said that when authorities responded to Otto's home, they knocked several times on the front door and rang the doorbell, but there was no answer.

"Deputy Temple said that it appeared the hallway carpet had been removed but could not tell if it had been done recently," the report said.

On Sunday, Otto showed up at the Adams County Sheriff's substation with a couple, Kevan and Carol Johnson.

Kevan Johnson told police that he worked with Otto at Harlan Bakeries where Otto was employed as the maintenance manager, the police report states.

Johnson said that Otto had called him that day to say that he had done something bad, police said.

In a police interview, Otto allegedly confessed to killing the two teens. He said that the boys showed up at his house and told him they wanted $10,000 each.

According to the police report, Otto stated that when he told the boys he would not pay them, Jonathan "got up and went into the kitchen and opened a drawer."

"William Otto followed Danny into the kitchen at which time he saw Jonathan turn around and was holding a large butcher knife," the affidavit states. As Otto went towards his bedroom, he said he heard one of the boys tell the other, "Don't let him go in there."

Otto told police he retrieved his .22 caliber revolver, came out of his bedroom and saw Jonathan standing in the hallway with the butcher knife and Gustavo standing behind him.

"William Otto then fired his handgun he believed to be four times," the police report states. "Jonathan fell to the floor first, followed by Danny. Danny called out for his mother and fell limp."

Otto told police he drove the bodies to his family farm and "buried the boys' bodies in his favorite place on the property."

He then allegedly drove home, picked up some bloody evidence, drove back to the farm and burned the evidence, police said.

That's when Otto called Johnson to tell him what he had done.

Otto was arrested and is being held on charges of first-degree murder with no bond. He made his first court appearance on Monday and is expected to be in court again on Thursday. His inmate information did not specify whether he has retained an attorney and the Adams County Sheriff's Office did not immediately respond to request for comment.