Home > News > U.S. Bankruptcy Judge Finds Joe Francis in Contempt • Bookmark   • Newsletters   • Register Search Options


U.S. Bankruptcy Judge Finds Joe Francis in Contempt

U.S. Bankruptcy Judge Finds Joe Francis in Contempt
Get XBIZ News
XBIZ Research
What will drive VR headset adoption among consumers?
Adult Entertainment
Hollywood Movies
Gambling / Gaming
Video Games
Out of 161 votes. Results based on votes submitted by members of XBIZ.net social network.
Jul 19, 2014 6:00 AM PST    Text size: 

LOS ANGELES — A federal bankruptcy judge on Thursday found former Girls Gone Wild mogul Joe Francis in civil contempt, imposing reimbursement of more than $40,000 in attorneys fees to a trustee and ordering $5,000-per-day sanctions for not returning two company vehicles.

U.S. Bankruptcy Judge Sandra Klein, in her 31-page ruling, said that Francis had violated a consent order and preliminary injunction that barred him from communicating with or harassing Girls Gone Wild employees, coming within 100 feet of its offices and interfering with the trustee's control of assets.

Klein awarded $40,000 in attorneys fees to the trustee and likely will grant another $20,000 later this month.

"The court need not and will not make a credibility determination regarding what occurred because the trustee based the contempt motion on the fact that Francis [and his girlfriend's] entering the premises violated the preliminary injunction," Klein wrote.

In previous court documents, Francis told the court that he traveled over to the offices because he was concerned that the new owners — GGW Acquisition LLC  — would remove some of his property. 

GGW Acquisition bought the company for $1.825 million and took over its office lease earlier this year at bankruptcy auction.

Francis alleged in a declaration that his girlfriend, five months pregnant with twins, was "pushed and physically assaulted and battered" by a security guard hired by GGW Acquisition.

Later, a GGW Acquisition executive made a citizen's arrest and police were called. Francis was arrested on misdemeanor assault charges and spent that night in jail. He was released the following morning on $20,000 bail.

Last month, Klein warned of $5,000-per-day sanctions, without limitation, against Francis until two Girls Gone Wild company vehicles — a 2012 Bentley Flying Spur, which is valued at about $200,000, and a 2007 Cadillac Escalade — were handed over to the trustee involved in the bankruptcy.

On Thursday, she imposed those daily sanctions until the cars are returned.

Francis last month told the court that the cars were seized by a creditor in Guadalajara, Mexico.

In a declaration, Francis said that the seizure of the vehicles took place one year before debtors for Girls Gone Wild filed bankruptcy.

He declared to the court that because Girls Gone Wild failed to fulfill obligations under a promotional agreement several years ago with a local strip club, that the owner of the club — called "DGL ITSMO SA DE CV" — had a right to possession of the cars.

"Under Mexico law, I am powerless to retrieve the vehicles and the [strip club owner] refuses to return them," Francis said in the declaration.

But Klein poked holes through Francis' declaration Thursday.

"Francis' assertion that the vehicles were taken and that he cannot get them back is both difficult to believe and sufficient to demonstrate impossibility," she wrote.

Klein also noted that Francis' declaration was "self-serving" and that a declaration by a representative of DGL ITSMO SA DE CV was inadmissible because the testimony didn't follow conventional standards.

She further said that Francis never explained why the vehicles were in Mexico in the first place, and that she was skeptical over the timing of his declaration and why he never reported the seizures to authorities.

"[T]he timing of the alleged taking of the vehicles is suspect, given that Francis claims it occurred just a few days before the date Francis was required to turn the vehicles over to the trustee," Klein said.

Klein said she would continue the civil contempt hearing against Francis to July 31.

Klein said that if Francis hasn't complied with her ruling by that time, the court will consider other sanctions, including the issuance of an arrest warrant for him.

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 !


Law Between the Sheets: Independent Contractor or Employee?

All too often, adult business operators spend so much time focusing on things such as obscenity, record-keeping and intellectual property that they neglect some important corporate issues, including taxation... More »

Courtrooms in the Cloud: For 2257, What Comes Next?

In resolving the latest assault against 18 U.S.C. § 2257, a three-judge panel of the 3rd U.S. Circuit Court of Appeals roundly rejected the Free Speech Coalition’s broad assault on the substantive... More »

Raising Capital: New SEC Rules May Be a Crowdfunding Game Changer

On Wednesday, March 25, the Securities and Exchange Commission announced its unanimous approval of the final rules for Title IV of the Jumpstart Our Business Startups Act, also known as the “JOBS... More »
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.

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.


Adult Film Festival Lv

Oct 16 - Oct 18
Las Vegas, Nv

Everything To Do With Sex Show

Oct 23 - Oct 25
Toronto, Canada

Paul Raymond Awards 2015

Nov 05 - Nov 05
London, UK

Island Gathering

Nov 08 - Nov 12
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!