Red Rose Pleads Not Guilty to Obscenity Charges

PITTSBURGH, Pa. — Responding to a federal grand jury indictment for obscenity, Karen Fletcher, aka Red Rose, pled not guilty at her Oct. 17 arraignment in U.S. District Court in Pittsburgh. Fletcher is alleged to have disseminated obscene fictional stories on her website describing the torture and sexual abuse of children.

U.S. Attorney Mary Beth Buchanan announced the charges in September, saying that Fletcher violated federal obscenity laws despite the fact that no pictures of children were displayed on the site.

Attorney Warner Mariani will serve as local counsel for Fletcher’s pro bono defense team, which includes Lawrence Walters, John Weston, Jerry Mooney and Derek Brett, as well as several other prominent 1st Amendment attorneys.

While the case raises the issue of whether text can be considered obscene, Walters told XBIZ he was also troubled by how Fletcher came to the attention of authorities.

“This case apparently started as a result of a Suspicious Activity Report (SAR) by Paypal,” he said. “This is significant because it's the first time I can recall Paypal making a value judgment on erotic content, and contacting the authorities as a result.”

Walters said banking institutions are required to file SARs under the Bank Secrecy Act when they believe clients are using their services to further criminal activity. But, he said, SARs are typically filed in reference to tax evasion and money laundering cases.

“The SAR specifically stated that ‘suspect Karen Fletcher… Donora, PA, is receiving payments from a child sex/rape test, audio, chat rooms and drawing erotica from Red-Rose-Stories.com,’” FBI agent Christopher Cantrell said in his affidavit in support of a search warrant. “Stories involved strong sexual content involving minors and adults.”

While Walters could not be certain, he said that in this case, it appears Paypal may have reviewed the content of Fletcher’s site prior to filing its SAR with authorities.

A spokeswoman from Paypal declined comment to XBIZ on the specifics of the Red Rose case.

"Like all financial institutions, PayPal is subject to the Bank Secrecy Act," she said. "Therefore, we are required to file SARs in cases where we know or suspect that criminal activity has taken place or is being attempted. Those reports are filed with the Financial Crimes Enforcement Network, which is a division of the U.S. Treasury. Unfortunately, since those reports are confidential, we can’t comment on any of our customers or any suspicious activity reports that we file."

The warrant also authorized authorities to seize Fletcher’s computer, journals, documents and books — items Walters called “expressive material.”

“We view this mass seizure of all the business equipment as a prior restraint, as it effectively put her out of business,” he said.

Federal agents executed a search warrant at Fletcher’s home in August 2005, seizing her computer. At the time she told authorities that she writes the bulk of the site’s stories, with about 40 other people contributing to the site as well.

According to the FBI search warrant affidavit, Fletcher told authorities that about 29 people had paid $10 per month in membership fees. She also described her work to law enforcement officers as a “fantasy site.”

Pretrial motions are expected to be finalized in the middle of next month. Walters said the case should go to trial early in 2007.

If convicted, Fletcher faces a statutory maximum of 30 years in prison and a $1.5 million fine, but the actual sentence would be dictated by federal sentencing guidelines.

Officials from Paypal were not available for comment at time of post.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

SWR Data Publishes 'Clip Trend' Report

Adult industry market research outfit SWR Data has published a report on the performance of clip platforms and sales.

Another German Court Rejects Blocking Orders Against Pornhub, YouPorn

A German court has blocked the Rhineland-Palatinate Media Authority (MA RLP) from forcing telecom providers based within the court’s jurisdiction to cut off access to Aylo-owned adult sites Pornhub and YouPorn.

Ofcom Fines Kick Online Entertainment $1 Million for AV Noncompliance

U.K. media regulator Ofcom on Thursday fined Kick Online Entertainment 800,000 pounds (more than $1 million) for failing to implement age checks as required for compliance with the Online Safety Act.

FSC Details Legislative Outlook for 2026

The Free Speech Coalition (FSC) has laid out the legislative outlook for the industry in 2026.

AEBN Publishes Popular Searches by Country for December, January

AEBN has released the list of popular searches from its straight and gay theaters, by country, for December and January.

Jim Austin Joins CrakRevenue Team

Online industry veteran and business strategist Jim Austin has been hired by CrakRevenue.

Judge Dismisses NCOSE-Backed Suits Against Adult Sites Over Kansas AV Law

A federal judge on Tuesday dismissed lawsuits brought against two adult websites in Kansas for alleged violations of the state’s age verification law.

Aylo/SWOP Panel Spotlights Creators' Struggle for Digital, Financial Rights

Aylo and Sex Workers Outreach Project (SWOP) Behind Bars presented, on Tuesday, an online panel on creators’ rights, debanking and deplatforming.

AV Bulletin: Canada, Italy, Australia Updates

Since the Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been enacted around the United States, as well as proposed at the federal level and in other countries. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Holly Randall Soft Launches 'Wet Ink' Magazine

Holly Randall has officially soft-launched the creator-focused publication Wet Ink Magazine.

Show More