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Fantasy Adult Video Sued by General Manager over Booth Sex and Other Issues

Pregon- The proprietor of the adult entertainment empire Fantasy Adult Video – and former owner of the Wilma Theatre has been sued for allegedly firing the general manager of his adult video outlet store in Portland, Ore., in part because the employee refused to terminate coworkers who had contracted AIDS.

In a lawsuit filed Tuesday in Multnomah County Circuit Court in Oregon, Denny O’Neil Jr. accuses the company and its owner of discrimination, wrongful discharge, a hostile work environment, retaliation and breach of contract, in violation of both state and federal laws.

O’Neil contends he was terminated by owner Tracy Blakeslee in February after complaining about employees having sex with customers inside the store’s coin-operated video booths, known as “the arcade.”

According to the lawsuit, Blakeslee was reluctant to institute a policy against such actions because he felt the employees’ conduct was “good for business.”

The suit also alleges Blakeslee and his domestic partner, a company manager named Maurice Cooper, told O’Neil in October 2006 to fire certain employees who had contracted AIDS in order to cut down on rising health insurance costs.

Blakeslee, who sold the historic Wilma building last month after 14 years of ownership, is president of Fantasy Adult’s parent company, Oregon Entertainment Corp., which is named in the lawsuit. Blakeslee operates two Fantasy stores in Missoula and six in the Portland area.

Bradley J. Woodworth, attorney for Oregon Entertainment Corp., said the company would “vigorously defend itself in court.”

“It’s very unfortunate that this individual who was given the opportunity of a lifetime to perform for a world-class company and failed to do so has himself elected to retaliate for his own poor performance in this manner,” Woodworth said.

O’Neil’s suit also alleges that Blakeslee and his partner subjected him to a “constant barrage of sexual discussion,” including discussion of “Blakeslee’s personal sex life and sexual escapades,” and sexual harassment.

It alleges that Blakeslee encouraged O’Neil to hire a prostitute using the company’s expense account, required O’Neil to accompany Blakeslee while he solicited a prostitute in Los Angeles, and that Cooper made veiled propositions to engage in sexual activity.

O’Neil’s lawsuit lists nine claims for relief and seeks $2.7 million in lost wages and damages and $1 million in punitive damages.

Woodworth said he plans to remove the case to federal court in Oregon.

“The allegations are a combination of federal and state statutory claims, so we believe the appropriate jurisdiction is in federal court,” he said.

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