AFYI Continues Year in Review- BusinessPress Continued to Hound Francis Koenig With Fraud Charges

You can always look at David Elms as an enterprising guy who made a few errors in judgment. Elms was the guy who launched TheErotic in 1999 as a place for prostitutes and their customers to share information, write reviews and correspond.

The site according to some reports attracts up to 1 million visitors a month, and Elms was once considered “the most influential man in the prostitution business in America” certainly an accolade on par with Time Magazine’s man of the year.

Although The Erotic Review issued a press release saying the Netherlands-based company had “parted ways” with Elms, many think the two entities were one and the same. Included in that list was a target of a would-be contract killing, who sued Elms. The 32-year-old woman, sued for copyright infringement under the name “Jane Doe” to protect her identity, claiming Elms launched an online attack on her by reproducing photographs from her Web site on one of his own.

Elms’ site revealed the woman’s true name, address and purported lies about herself to eliminate her as a competitor, according to a lawsuit filoed on behalf of Jane Doe by none other than Michael Fattorosi.

“Elms directed his anger and vengeance at Doe because she refused to engage in sexual intercourse with him and because Doe refused to allow her name to be published on a Web site he controls,” the suit states.

Fattorosi claimed Elms ruined the woman’s life by revealing to her father that she worked as an escort and sending strange men to her residence.

“Other women have shared similar complaints against Elms,” Fattorosi said.

“I have had other women contacting me, reiterating how he has attempted to cajole, strong arm and even rape women in regards to getting them to perform service for him in order to keep their reviews up on The Erotic Review,” Fattorosi said in an interview. [Remember the case of AVN’s Mike Ramone and Emily Evermoor?]

You won’t see this one among the AVN nominees this year, but there was a case of a woman who taped a POV threeway with two canines. Sarasota County Deputies arrested Caroline Willette who videotaped herself having sex with two dogs while watching kiddie porn with a friend. To make matters even more wholesome, the 53-year-old Willette then gave a CD with the images to an acquaintance, who turned it over to police. Willette was charged with three counts of possessing child porn. Willette admitted to detectives that she had sex with the animals in her home and watched young girls perform sex acts on the Internet.

Then we had the University of Maryland’s decision to cancel the viewing of Pirates II, a story that made headlines on CNN, Fox, ABC, CBS, NBC, Washington Times, Washington Post, Baltimore Sun and Sacramento Bee. It also was on, the “Laura Ingraham Show,” Australia’s, and countless additional publications and blogs. The downside was Maryland’s legislature threatening to cut funding to the school if the flick was shown.

Far be it for us to sling arrows and make accusations, but a CondeNast website wrote some thought-provoking stuff on Francis Koenig, the founder of the hedge fund firm AdultVest.

“Today, Koenig is fighting fraud allegations as the porn industry in which he invests suffers right along with the rest of the economy,” they reported.

“According to two sources who spoke to the trade publication FINAlternatives, Koenig’s operation, which he calls the adult industry’s first hedge fund, is just another fraud. One former investor alleges that Koenig looted the fund’s coffers to finance his ‘fine art, expensive wines, cars, personal trips and alimony.'”

“A former employee of Koenig’s firm also claims that the fund is quickly running out of money and the assets in which it has invested, including the domains and, are not worth what Koenig claims they are,” the story continued.

“Koenig denies the charges, saying the investor is in a tough financial position and is frustrated after trying to redeem his money after it was already deployed in new investments. He says that is doing well and the money he spends on his lifestyle comes from his own paycheck, not the company’s funds….So is Koenig legit? If what his former employee says is true, the picture certainly looks bleak for AdultVest’s future:

“The former employee, who says there were about 11 employees when he worked at the firm, claims that some of the few remaining staff members, including a secretary and the firm’s Web site manager, have had their salaries halved because the firm is running out of money. He also says that they are only coming into the office once or twice a week.”

Then to make matters worse for Koenig, who’s evidently got more Teflon in him than a frying pan, weighed in by saying they were skeptical at best with Koenig’s claims.

“Sources speaking to hedge fund newsletter FinAlternatives accuse AdultVest of being a downright fraud:

“Sources close to AdultVest Inc., which manages the Priapus Investment Fund, an adult entertainment hedge and private equity fund, say that it is spending investor money on more than just investments, and that what investments there are don’t account for the returns it claims.”

“A former investor says that founder Francis Koenig is looting the fund to pay for fine art, expensive wines, cars, personal trips and alimony. Meanwhile, a former employee tells FINalternatives “there was no capital being generated” during his time at the firm.

“There is almost no money left in the fund,” claims the investor, who said he was privy to some of AdultVest’s financials via a court order.

“Koenig has an American Express black card through the company that he uses on partying, girls and high living. Most money is missing and is not worth what he says it is. It just seems to me the whole time I was there that there was no capital being generated, and it seemed like money was being spent for things that didn’t need to be bought like cars, clothes and trips.”

Koenig “vociferously” denied the accusations, calling it “slanderous.” He chalked the rumors up to a single, unnamed investor who wanted to take his money out of the fund.

FinAlternative’s sources, meanwhile, claimed the fraud had been reported to the FBI and the SEC.

By the way, any interest in the Moe, Larry and Curly Hedge Fund?

Quote of the week award went to Arrow Production’s Robert Interlandi who said, “Get This Cocksucker Off My Property!” Interlandi was referring to Steve Hirsch, and Ray Pistol was talking about Vivid’s attempt to re-make Deep Throat when he said, “I’ve been blown up and shot but nothing hurts me more than having that with the Deep Throat title on it.”

The drama unfolded on the best damn thing we’ve ever seen about the porn industry when Showtime aired the Reality Series “Deeper Throat”.

The Adult industry also did it self proud once again with the additions of Penny Flame, Kendra Jade and gay film director Duncan Roy on a New celebrity Rehab airing on VH-1.

As we say with these lawsuits, good luck in collecting. Allison Williams a former Miss West Virginia won a $7.2 million verdict against nine Internet companies and individuals who tried to sell pornographic videos they falsely claimed featured her. A jury in U.S. District Court in Clarksburg ordered each defendant to pay Williams $800,000 for damaging the 2003 beauty queen’s reputation and invading her privacy.

The videos, which surfaced in the fall of 2004, show a woman the Internet porn producers falsely claimed to be Williams engaged in sex in the back of a television news truck. Williams, 27, discovered the defamatory videos during her first semester of law school at West Virginia University while searching the Internet for a favorable newspaper article about herself to save for her scrapbook.

Williams has since graduated from law school and now works for a shipping company in Vienna, Va., while she prepares to pass the bar. Williams originally sued 59 defendants in the United States, Australia, the Netherlands, Belgium, Cayman Islands, Canada and South Africa that allegedly took part in distributing the videos.

U.S. District Judge Irene M. Kelley dismissed 28 of those defendants, a decision Williams is appealing. The nine defendants found liable during a bench trial are Castle Company Property Ltd., The Moles Trust, Russell M. Moles, Gwendoline E. Moles and Guy Blomberg, all of Australia; Vidbidness Inc. and Eric Ridley of California; and Etrax Productions and Ronald Yates of Texas.

Nah, we didn’t believe the story either when the Price is Right’s Bob Barker claimed in his book that he was offered a job to star in porn movies. If true, probably gay ones.

Barker shared the story in his memoir, “Priceless Memories.” Years ago, Barker was working at a radio station in Palm Beach and modeling on the side. He had plans to move to California, and a friend of his photographer sent him to someone who was interested in giving him work.

When Barker met with the “employer,” he realized his buff bod and good looks had gotten him an offer he had to refuse.

“Gradually it dawned on me that he was offering me a job in a pornographic movie,” Barker said. “I assured him this was not my thing and I got out of there.”

The retired host said that when it happened, he couldn’t wait to run home and tell his wife.

She responded without hesitation, “Did you take it?”

Another porn legend passed from our midst with the death of Jack Wrangler. Legendary porn star turned musical theatre actor Wrangler came from a prominent Hollywood family and got his start in Christian television only to go on to become one of the first gay porn actors to achieve star status and cult following in the 1960s and ‘70s. He made over 80 adult films, including Wanted and Sex Magic. His rugged, masculine good looks helped define the sexual attractions of a generation of gay men.

Wrangler stunned fans when he switched over to straight porn later in his career and then even more so when he retired from porn all together after meeting and eventually starting a relationship with pop singer Margaret Whiting. That relationship would last the rest of his life. Wrangler went on to enjoy a successful career in musical theater. He was 62 years old.

Now we know how Tito Ortiz feels – all the time. Gina Lynn’s Hubby Travis Knight got beat in celebrity Boxing Match. The bout took place at the Philadelphia Airport Ramada Inn, in Essington. There, former “Survivor” Gervase Peterson defeated porn performer Knight as Lynn looked on.

Gary Coleman added to his glittering theatrical resume by accepting a part to play a midget porn mogul then turned on his people for getting him this “demeaning” part in Midgets vs Mascots which premiered at New York’s Tribeca Film Festival.

We don’t recall anyone holding a gun to his head, but Coleman who stars as a miniature adult film mogul in the project insisted he only took the part to cope with mounting expenses during the worldwide credit crunch.

The actor and wife Shannon Price also appeared on U.S. TV show Divorce Court to air their differences with intent to save their marriage. In a rant posted on video sharing website, Coleman blamed the film for causing strain in their relationship. And he’s issued a violent warning to the agent who helped him land the part.

Coleman said, “It was worse than any film school project. I shouldn’t be in this movie in the first place, but the mortgage keeps coming. This movie almost cost me my relationship with my wife. It has caused me grief… I’m going to bash my fists right in my agent’s face.”

No truth to the rumor that Gary was starring in yet another Tiger Woods porn spoof featuring an all little people cast and a miniature golf course.

Aping the highly successful Octomom business model, Kick Ass Pictures announced that they were offering Susan Boyle, the 47 year old Magilla Gorilla virgin songstress from Britain, $1 million to appear in a porno. Not only that, Kick Ass also set up a web site in which they were asking fans to vote on such things as the title of the flick and who should be her co-star.

Never send a mainstream writer to do a man’s job we always say. Such was the case when writer Carol Forsloff on behalf of wrote something of an eulogy to Marilyn Chambers who also died last year.

Describing Marilyn as “the last of the big three porn stars,” Forsloff identified the other two as Linda Lovelace and John Holmes.

Forsloff should have stopped while she was ahead, but she continued with a fractured history lesson for her Mr. Peabody readers in which she extolled her knowledge of the film Deep Throat.

She said that Linda Lovelace was the star of the movie. She got that right. But then she went off the track by saying Lovelace’s co-star was none other than John Holmes. If fact, Forsloff also claimed that Deep Throat was John Holmes first film. We’re sure Harry Reems would be surprised to learn that information.

The owners of the Adult World Superstore and Wayne Philpot, along with their corporations, R.J.J.W. Enterprises, Inc. had their day in court in Arkansas when they stood trial for promoting obscene materials.

The trial had been postponed on a couple of occasions with H. Louis Sirkin of Cincinnati selected by the Philpots as their “counsel of choice.”

The Philpots, along with R.J.J.W. Enterprises, Inc. and J&W Investments, Inc., were charged with two counts of promoting obscene materials. The charges alleged that the two men in their capacity as principal incorporators of the two corporations violated state law by selling obscene materials from the two stores located near the intersection of Hwy. 38 and Interstate 40.

Employees and members of management had been arrested for selling obscene materials in the past, but the new charges were the first against the corporations and its owners.

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