Porn Mogul Sentenced to Federal Prison

AUSTIN, Texas — The owner of 27 adult-oriented businesses was sentenced to more than five years in federal prison last week and ordered to forfeit $8.1 million in property after he pleaded guilty to racketeering, obscenity and fraud charges, according to a statement released by the Justice Department.

After an investigation that involved the Internal Revenue Service, U.S. customs officials and the Department of Homeland Security, John Kenneth Coil, 61, along with his wife, daughter, son and four other employees, was charged with the interstate transportation of obscene material and mail fraud, as well as withholding $4.5 million in taxes from the federal government.

On Friday, United State District Court Judge Harry Lee Hudspeth sentenced Coil to 63 months in federal prison and ordered him to pay a $5,000 fine and forfeit all business properties located in Texas.

“You break the rules, you cheat the federal government, you make millions selling this smut, and you don’t even pay your taxes to the tune of multi-millions of dollars, you will be held to account,” said U.S. Attorney Johnny Suttion.

According to Justice officials, Coil was the head of a three-state tax evasion scheme that involved placing properties in his children’s names without their consent and skimming money from his stores.

Coil also pleaded guilty to obscenity for the interstate transportation of hardcore German video “Nympho Bride,” a movie that federal officials referred to as “sadistic.”

“John Kenneth Coil has been a long time pornography merchant who has made millions selling obscenity and cheating on his taxes,” said Sutton. “He is finally on his way to federal prison for his crimes. American families have won a battle today in the fight against pornography.”

Seven other co-defendants were sentenced earlier by Hudspeth, including Coil’s business partner Charles Phelps Jr., also known as “Mr. D” and “Dave Smith,” who received 42 months in federal prison. Coil’s wife, daughter and son each received three years probation.

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

2026 TEAs Nominees Announced

Nominees for the 2026 Trans Erotica Awards (TEAs), presented by Clips4Sale, have been announced. The ceremony will return to the Avalon in Hollywood on Sunday, March 8.

Paradise Debuts 'Illumination' Line

Paradise Pleasure Products has introduced its new Illumination collection of pleasure products.

Orion Debuts New Styles From 'Svenjoyment' Line

Orion Wholesale has released four new styles from its Svenjoyment undergarment line.

JD Directs New Arya Santana Showcase

Evil Angel has released director JD’s latest showcase, titled "Bad Behavior: Arya Santana."

Viben Acquires Get Lucky, Mini Halo Brands

Viben has acquired the Get Lucky and Mini Halo pleasure product brands.

Paul Reutershan Joins National Sales Team

Paul Reutershan has joined the sales team at National Distribution.

Starship Introduces New Wellness, Pleasure Product Lines

Starship has debuted its new On My Mind lubricant line and Devil Got Bound bondage collection.

The Game to Bring West Coast Fire to X3 Expo Grand Finale

Multi-platinum West Coast rapper The Game will close out X3 Expo grand finale, presented by Chaturbate, with a high-octane live performance at the Hollywood Palladium on Saturday, Jan. 17, delivering a finale built on swagger, legacy and raw LA energy.

Anna Bella Makes Her Studio Debut in Latest From Immoral

Anna Bella has made her studio debut in the latest release from Immoral Productions, alongside Matt Bird and studio honcho “Porno Dan” Leal.

Eldorado, Paradise Ink US Distro Deal for 'Art of Illumination' Collection

Eldorado Trading has inked an exclusive U.S. distribution deal with Paradise Pleasure Products for the new Art of Illumination collection of pleasure products.

Show More