Home > News > Adult Store Chain Seized • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Adult Store Chain Seized

Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
  39.77%
Yes, but in a few years
  37.43%
No
  22.81%
Out of 171 votes. Results based on votes submitted by members of XBIZ.net social network.
Sep 26, 2003 12:00 AM PDT    Text size: 
San Antonio -- As part of a five-year ongoing investigation by the Internal Revenue Service (IRS) and Customs Enforcement, the hammer fell today on seven people, including the owner and operator of a chain of adult entertainment businesses in Texas, New Mexico, and Arizona.

Five suspects, with two remaining at large, have so far been indicted on charges of racketeering, defrauding the IRS, tax evasion, mail fraud, and importing and distributing obscene materials, a spokesperson for the U.S. Attorney's Texas office told XBiz.

The arrests of John Kenneth Coil, his wife, daughter, son, and employees are part of a 68-page indictment that accuses the primary suspect, Coil, of profiting from millions of untaxed dollars from the sale of adult entertainment materials.

"Proceeds that this enterprise earned through the sale of obscene material were not disclosed to the IRS," the spokesperson told XBiz.

The indictment alleges that Coil ran an organized establishment of more than 27 adult entertainment stores and arcades that profited from the distribution of "lewd and lascivious" materials.

Coil is accused of using corporate shells to hide profits from the sale of adult videos and magazines, which authorities believe generated millions of dollars.

The defendant's businesses, valued at approximately $9.7 million, are now subject to forfeiture by the government, including properties in Texas, Arizona, Arkansas, Louisiana, Missouri, New Mexico, and Utah.

An indictment is a formal accusation of criminal conduct, not evidence, the attorney's office stated. A continuing investigation into Coil's business practices is underway. But if convicted, he faces up to 20 years in federal prison and an additional five years for each remaining charge against him. His wife, children, and employees also face stiff prison sentences for their involvement.

According to a representative for the U.S. Attorney's Austin Bureau, today's arrests are only the tip of the iceberg and dozens of more people will be indicted by the time the investigation concludes.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

PROFILES & BIOS

WIA Profile: Kate Hodgson-Egan

Each month, industry news media organization XBIZ spotlights the career accomplishments and outstanding contributions of Women in Adult. WIA profiles offer an intimate look at the professional lives of... More »

Q&A: Holiday Products Founder Moe Levy Reflects on Decades of Career Accomplishments

Born and raised in the Bronx, N.Y., as an only child, Moe Levy learned to become business savvy at an early age from his parents. Even more importantly, Levy says his parents instilled in him their people-oriented... More »

AWSummit’s Alexandru Gheorghe Has Eyes Set on Growth

The AWSummit has quickly made its mark and has become a top draw for chat hosts, studios and cam sites from all over the world. Founded by CEO Alexandru Gheorghe just two years ago, the cam-centric AW... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.

UPCOMING EVENTS

XBIZ 2017

Jan 09 - Jan 13
Hollywood, CA

XBIZ Awards 2017

Jan 12 - Jan 12
Los Angeles, CA

ANME Founders Show

Jan 14 - Jan 15
Los Angeles Marriott Burbank Airport

Everything To Do With Sex Show

Jan 20 - Jan 22
Montréal, Québec
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!