iBill Under Scrutiny, Braces for Lawsuits

DEERFIELD BEACH, Fla – Embattled Internet Payment Services Provider iBill is weathering a lengthy review by Corporate Revitalization Partners, a Texas-based turnaround firm. The IPSP’s reputation is in ruins amid charges of misappropriating millions of dollars from clients in the adult and mainstream worlds, many of whom depended on the Florida-based company as their only means of payment. Consequently, some of iBill's adult industry clients are resorting, finally, to litigation.

“This did not 'happen' to iBill,” Cybersocket President Morgan Sommer told XBiz. “This is something iBill caused to happen.”

Cybersocket was the first to sue beleaguered iBill, Sommer said, after months of bills that were not paid, phone calls that were not returned and promises that were not kept. As the result of two separate small claims filings, Cybersocket was paid $10,000 to settle the case.

Sommer referred to the small claims suit as a “token,” not because the amount was small – iBill allegedly owes its clients millions of dollars – but because people were apathetic.

“A sad fact of this industry is that some people think [not being paid] comes with the territory,” he said.

Now the Score Group, producer of “Leg World” and Chi Chi LaRue, owner of Rascal and CCLR Internet, are also suing iBill. The Score Group’s David Uwate confirmed his company was in litigation with iBill, but was prevented from naming specifics. LaRue was unavailable for comment.

Numerous calls from XBiz to iBill’s offices in Florida were not returned.

Sommer stressed that, while iBill’s actions have removed millions of dollars from the industry, “this is not a billing company problem; this is iBill’s problem.”

He added that friendly, personal relationships where they answer the phone make for good business with IPSPs like CCBill and PayCom. For the past five years, Sommer said, his relationships with iBill’s executives were less personal.

“I used to have [iBill account executive] Bert [Metcalf] on IM, and then he just disappeared,” Sommer said.

Whether iBill’s difficulties stem from the cancellation of its merchant account by First Data Bank back in September, its troubled acquisition and subsequent dumping by a consortium of companies that included Penthouse, or its recent purchase by Deerfield Beach neighbor Interactive Brand Development, one thing is clear: it has not paid its bills and its putative financial rehabilitation – whether one that results in a bankruptcy filing or a turnaround – will do little to revive its reputation among members of the adult industry.

“Google iBill,” a staffer for Chi Chi LaRue told XBiz, “and you’ll find AdSense listings that say ‘iBill Problems?’ that lead you to lawyers and alternate billing options. iBill’s screw-up is part of the industry’s culture now.”

Corporate Revitalization Partners was awarded the Turnaround Management Association’s “Turnaround of the Year” award last year for its work with a New Jersey industrial sensor company.

Copyright © 2025 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

UK Lawmaker Calls for Ban on Choking in Online Adult Content

British lawmaker Jessica Asato stated in an interview aired on Sunday that she plans to ask Parliament to outlaw online adult content featuring the act of choking.

Feet4Cash Joins Pineapple Support as Sponsor

Feet4Cash has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

VPN Usage Surges in France After Aylo Restricts Access to Pornhub

France has experienced a surge in virtual private network (VPN) signups after Aylo, which operates Pornhub, Redtube and YouPorn, cut off access to those sites in the country in the wake of new age verification regulations, business news site MENAFN is reporting.

New Creator Directory 'TrustyFans' Launches

TrustyFans, a newly launched directory designed to help fans discover their favorite creators, is now live.

Corey Silverstein to Host Webinar on 'SCOTUS Age Verification Ruling'

Where Does Age Verification Go From Here," to livestream July 10 at 4 p.m. (EDT).

FSC Publishes Guidance on Google Analytics Lawsuits

The Free Speech Coalition (FSC) has published guidance on how adult websites can protect themselves in the wake of several consumer class action lawsuits filed against sites for using Google Analytics.

BranditScan, CreatorTraffic Partner for 'Creators & Agencies' Initiative

BranditScan and advertising network CreatorTraffic have partnered for an initiative to help creators and agencies generate traffic and protect their content.

Teasy Agency Joins Pineapple Support as Supporter-Level Sponsor

Teasy Agency has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Aylo, Pineapple Support Partner for Mental Health Video Series

Aylo has teamed up with Pineapple Support to create a safety video series aimed at educating performers and creators about mental health.

Ofcom Investigates FTV Sites for Possible AV Noncompliance

U.K. media regulator Ofcom is investigating First Time Videos, which operates the sites FTVGirls.com and FTVMilfs.com, for possible failure to comply with age assurance requirements under the Online Safety Act.

Show More