Affidavit: Adams Co. man confesses to killing, burying 2 teen boys in reported sex-video blackmail

William Otto claims boy came at him with knife

ADAMS COUNTY, Colo. - An Adams County man has confessed to shooting and killing two teenage boys, after the teens' reportedly tried to blackmail the man for $20,000 over a video where the man asked one boy for sex, court records state.

According to an arrest affidavit, William Dean Otto told Adams County sheriff's investigators that he had refused to pay the teens and shot them with a handgun Friday night after one of the boy's came at him with a large butcher knife in his home near Thornton.

Otto said he buried the boys' bodies near his family farm in Sedgwick County and directed deputies to the graves where the bodies were recovered, the affidavit said.

The affidavit identified the slain boys as 16-year-old Gustavo "Danny" Espinosa-Gamboa and 15-year-old Jonathan Gonzalez, who lived in Otto's neighborhood. The boys were last seen on Friday and reported missing Saturday.

Otto was arrested Sunday and is being held in the Adams County Jail on investigation of first-degree murder, involving a gun and non-family members, according to jail records. He is being held without bond.

Danny Espinosa-Gamboa's mother, Juanita Perez, reported him missing on Saturday afternoon. The mother told a deputy Danny had left home with his friend, Jonathan Gonzalez, Thursday afternoon to play basketball and both boys had disappeared.

Danny's sister, Jasmine Pacheco, told investigators that friends said the missing teens had planned to blackmail a neighbor man, named "Billy," over a video taken with Danny's cellphone.

A friend of the teens,  Isaiah Furley, told deputies Danny and Jonathan had showed him the video in which Otto allegedly asked Danny if he could perform oral sex on Danny and touched the teen inappropriately.

Furley said Danny and Jonathan told him they were going to Otto's house to show him the video. The boys were going to demand $70,000 from Otto and threaten to "get him in trouble by giving the video to the police" if he refused to pay up, Furley told deputies.

Emilio Baigle, another friend of the teens, said they told him Otto was pressuring Danny for sex.

"They told me that he was over here hitting on (Danny) telling (Danny) to do nasty things to him," Baigle told 7NEWS.

Baigle said Danny and Jonathan also told him they were going to use the cellphone video to extort money from Otto.

"They said that they were going to try to get some money out of it or send him to jail," Baigle said.

Furley said told Deputies he was concerned about his friends because they'd been missing for days and calls to their cellphones went straight to voicemail.

Furley said Otto let young teen boys in the neighborhood come and drink alcohol in his home at 8207 High St., the affidavit said. Furley said he'd heard from other kids that some boys had become drunk to the point of throwing up in the home.

Furley said he had gone to Otto's home about 9 a.m. Saturday, looking for his friends, and found the normally friendly Otto was agitated and in a hurry.

Furley said Otto told him to leave, saying, "I don't have time for this. I have to go," according to the affidavit.

Furley said he hung around and watched Otto come out of the garage with a gas can, a shovel and a rake and load the items in the back of his work truck next to four other gas cans that appeared to be new.

Furley said he found the change in Otto's demeanor odd and "kind of scary."

Deputies repeatedly went to Otto's home, but no one answered when they knocked and they could not see anyone through the windows. Deputies also tried to "ping" Danny's cellphone, but they couldn't locate it because it was turned off and the phone had not been used since Friday, the affidavit said.

At about 12:45 a.m. Sunday, deputies learned that Otto was coming to the sheriff's substation to "confess to a homicide," the affidavit said.

When Otto showed up with a couple, Kevin and Carol Johnson, investigators separated the trio to interview them.

Kevin Johnson told an investigator he worked with Otto at Harlan Bakeries, at 1803 E 58th Ave., where Otto was a maintenance supervisor.

Kevin Johnson said Otto called him at about 1:30 a.m. Sunday.

"Otto was upset and told Kevin Johnson that he had done something bad," the affidavit stated.

Otto told Kevin Johnson he had taken out a $14,000 loan on his retirement so he could help "at risk" youth in his neighborhood, the affidavit said.

Otto said two of the teen boys he was trying to help came to his home Friday evening. They handed him a note saying they wanted $10,000 each.

"What they f*** are you doing?" Otto asked the boys, according to Kevin Johnson. Otto told them to get out of his house.

Otto gave investigators a similar account.

Otto said the teens had seen the $14,000 he had withdrawn from his retirement account and wanted $10,000 each.

"William Otto told them that he was not going to pay them," a detective wrote in the affidavit.

Yet, nowhere in the affidavit does Otto mention a blackmail attempt or a sex video. Only the teens' friends and Danny's sister mention the blackmail plot over a sex video.

Otto said Jonathan walked into the kitchen and he heard the teen open a drawer.

Otto said he and Danny followed Jonathan into the kitchen, where Jonathan turned around, holding a large butcher knife, according to the affidavit.

Otto said he walked toward his bedroom to get his .22-caliber handgun and heard Jonathan telling Danny, "Don't let him go in there," the affidavit said.

Otto said he came into the hallway with the gun and met Jonathan holding the knife toward him, with Danny standing behind Jonathan. Otto said he fired about four times at the teens, according to the affidavit.

Jonathan fell first to the floor, followed by Danny, Otto told investigators.

"Danny called out for his mother and fell limp," Otto said, according to the affidavit.

Otto told detectives he wrapped the boys ' bodies in blankets and left them in the home. He then went to the bakery, got some plastic and returned home.

Otto said he dragged the wrapped bodies to the garage and placed them in his work truck, a blue Dodge Ram 1500 pickup, according to the affidavit.

He said he drove them out to his family farm in Sedgwick in the far northeastern plains of Colorado, where he buried them in "his favorite place on the property," the affidavit said. Kevin and Carol Johnson gave investigators similar accounts of what Otto told them.

Otto later slightly changed his story, telling detectives he'd buried the bodies about 6 miles from his farm on another man's land near the confluence of the South Platte River and Cottonwood Creek, the affidavit said.

Otto drew a map, directing investigators to the grave, south of Highway 138. Investigators found and removed the buried bodies. The Adams County Coroner has taken the body to conduct autopsies.

Aside for the homicide case, Otto only has a handful of traffic citations in Colorado.

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