Feeds

Net pornographer jammed up in Federal probe

Pam and Tommy may laugh last

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Federal officials in the USA are investigating renowned Internet pornographer Seth Warshavsky and his on-line porn company, Internet Entertainment Group (IEG), on suspicions of credit-card fraud and income tax evasion, the Washington Post reports.

It wasn't long ago that IEG won praise in the mainstream press as one of the Internet's original commercial successes. Warshavsky attracted considerable media interest when he acquired and distributed a video of model Pamela Anderson having sex with her husband Tommy Lee. But the company has suffered a string of legal difficulties since allegations of credit card overcharging began to surface last year.

Several IEG employees testified to the allegations of overcharging, but the sworn statements were sealed when Warshavsky settled a lawsuit. Warshavsky then sued two former managers and the lawyer involved in the claim, alleging they violated a non-competition clause in their contracts and stole a company e-mail list.

Warshavsky has maintained that all the overcharges were accidental and that customers have since been reimbursed.

Now it appears that the Feds are investigating Warshavsky for possibly laundering money through foreign bank accounts to evade US income tax. Four potential witnesses have been interviewed by Assistant US Attorney Mark Bartlett and representatives from the Internal Revenue Service and the FBI.

Warshavsky said he has not been notified by the Feds, but had heard that he was under investigation. "If that is the case and there is an investigation, I'm sure they won't find any wrongdoing, and they'll drop it," he told the Post on Monday.

Warshavsky has hired a new chief accountant and says he is concentrating on putting his financial affairs in order. As for the tax evasion allegations, perhaps he will revive his previous legal strategy and cop to depositing money off shore 'accidentally'.

Well, a thing like that could happen, you know. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.