Owner of Texas Porn Empire Indicted for Tax Evasion

Gretchen Gallen
AUSTIN, Texas – The state of Texas is about to see the lights go out on scores of adult video stores if the federal government has its way.

John K. Coil, 62, and his son stand accused by the feds of tax evasion to the tune of between $2.5 million and $5 million. Both men have pleaded guilty to all charges of corporate and income tax evasion. They have also pleaded guilty to mailing fraudulent tax returns.

The Coil family of Highland Village have operated a porn chain throughout the Southwest portion of Texas for the past 30 years.

Additional charges against Coil senior include transporting a video called "Nympho Bride," which authorities intend to prosecute as obscene material.

Attorney General John Ashcroft announced the Coil indictment in September 2003. Coil has been quoted as saying that Ashcroft's obscenity charges are based on religion and carry no legal merit.

According to earlier reports, Coil's son owns the 24-Hour News Stand at West Mount Houston and the North Freeway. All business contact information is listed in Lewisville.

The exact number of adult stores under Coils control is not full known, however, he has been confirmed as the owner of B.J.'s Adult Video, Zone D'Erotica, Pinemont Video, and Far West News and Video.

Adult stores in San Antonio, College Station, El Paso and Houston are expected to close within the coming months.

Both Coil men entered their pleas in U.S. District Court in Austin, the Associated Press reports.

The Coils are scheduled to go to trial next week, the AP reports. Coil senior faces a maximum sentence of 10 years, whereas family members, including his son, also face jail time if found guilty. Their sentencing is scheduled for August.

Federal agents had originally tried to seize 58 properties owned by the Coils, but later settled for 45 properties, which included houses, offices, vacant lots, and an undisclosed number of adult video stores.