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

Woodhull Survey Reveals Concern Among Sex Educators Over AV Laws' Impact on Access

A national survey of sex educators by the Woodhull Freedom Foundation found that a majority of sex educators and sexual health professionals are concerned that age verification (AV) laws will negatively impact access to information and resources.

Clips4Sale Wins Trademark Infringement Case Against Fraudulent Domain

The World Intellectual Property Organization (WIPO) has ruled in favor of content platform Clips4Sale in a case against a website using a similar domain to impersonate the site.

Pineapple Support, SextPanther to Host Stress Management Support Group

Pineapple Support and SextPanther are hosting a free online support group focused on stress management for performers.

Goddess Tangent Launches New Site Through Grooby's Blue.xxx

Goddess Tangent has launched her new membership site, TangentOD.com, through Grooby's website management company Blue.xxx.

Keiran Lee Guests on Chaturbate's 'Sex Tales' Podcast

Keiran Lee is the latest guest on Chaturbate’s “Sex Tales” podcast, hosted by Melissa Stratton and Vanniall, and streaming on the company’s “Camming Life” YouTube channel.

FSC Talks Age Verification on Capitol Hill

The Free Speech Coalition (FSC) has published a blog post detailing the organization's talks on age verification on Capitol Hill in Washington.

FTC Warns PayPal, Stripe, Visa, Mastercard Against Debanking

Federal Trade Commission Chairman Andrew Ferguson sent letters on Thursday to the CEOs of PayPal, Stripe, Visa and Mastercard, warning them against debanking practices — including denying customers access to services based on lawful business activities perceived as high-risk.

AEBN Publishes Report on Ejaculate Trends

AEBN has published a report on ejaculate categories from its straight and gay theaters.

Chaturbate to Hold 'CB15' Creator Retreat in Arizona

Chaturbate will hold its CB15 creator retreat in Scottsdale from April 20-23.

Show More