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

Lauren Phillips, Derek Kage Cap AEBN's Top 100 Stars of 2025

AEBN has revealed its top 100-selling stars of 2025 in both gay and straight theaters.

Former IEAU Officer Sentenced to 4 Months

Amanda Gullesserian, who performed in the industry under the name Phyllisha Anne and founded the now-defunct International Entertainment Adult Union (IEAU), has been sentenced to four months’ imprisonment for making a false statement in an IEAU federal financial report.

2026 XBIZ LA Conference Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for the XBIZ 2026 conference, set to take place Jan. 12-15 at the Kimpton Everly Hotel in Hollywood.

Needemand Joins ASACP as Corporate Sponsor

French startup company Needemand has signed on as the latest corporate sponsor for Association of Sites Advocating Child Protection (ASACP).

Utah State Legislator Proposes New 'Porn Tax'

A Utah state senator introduced a bill on Monday that would impose a 7% tax on the gross receipts of adult websites doing business in that state, plus require adult sites to pay an annual $500 fee.

Carlotta Champagne is LoyalFans' 'Featured Creator' for January

LoyalFans has named Carlotta Champagne as its Featured Creator for January.

Pineapple Support Relaunches Site

Pineapple Support has updated and relaunched its website.

Arcom-Targeted Sites Implement Age Verification in France

Five high-traffic adult websites based outside of France have implemented age verification as required under the nation’s Security and Regulation of the Digital Space (SREN) law, after receiving warnings from French media regulator Arcom.

Goddess Lilith Launches 'Adultpreneurs' Networking Site

Goddess Lilith has launched Adultpreneurs, a new community and networking site.

Adult Shoot Location Marketplace 'FckSpace' Launches

FckSpace, a new platform aimed at simplifying location sourcing for adult productions, is now live

Show More