Oprano Adult Industry Forums - View Single Post - Porn Site Bilked Consumers For $230 Million

Mike AI · 03-19-2003

http://www.siliconvalley.com/mld/siliconva...ial/5428200.htm

Internet scam bilked porn customers
Bloomberg News

An alleged Gambino crime family member was among three people accused of running an Internet scam that bilked prospective pornography customers out of $230 million by tricking them into turning over credit card information, U.S. authorities said.

Authorities say mobster Richard Martino and two other men, Norman Chanes and Bruce Chew, ran companies that bilked thousands of people in the United States, Europe and Asia with offers of ``free tours'' of porn Web sites.

The companies conned prospective customers to turn over credit card information, saying it would only be used as a proof of age and that users would not be billed. Instead, credit cards were billed, usually at $59.99 a month after the initial visit without the consent of the users, authorities said.

``This massive scheme undermined public trust in e-commerce around the world, and now it is the defendants who will have to pay the consequences,'' said Roslynn Mauskopf, the U.S. attorney in Brooklyn, New York.

The Web sites, which include www.playgirl.com, www.highsociety.com, and scores of others, are based on magazines owned by New York-based Crescent Publishing Group, authorities said. In 2000, Crescent published more than a dozen different magazines, including Playgirl, High Society and Climax, and had almost $40 million in print revenue, authorities said. Crescent is cooperating with the investigation, authorities said.

Martino, Chanes and Chew were arrested Tuesday and charged with conspiracy to commit mail andwire fraud, conspiracy to commit credit card fraud and conspiracy to commit money laundering. The indictment also seeks forfeiture of up to $230 million in assets, including luxury homes owned by the three men in New York and California, authorities said.

In 2001, Crescent agreed to pay $30 million to settle similar civil charges brought by the U.S. Federal Trade Commission and the New York Attorney General's office. The company did not admit wrongdoing in the civil settlement.

03-19-2003	#14
Mike AI Administrator Want to see your own Advertising Here! Join Date: Oct 2002 Posts: 11,618	http://www.siliconvalley.com/mld/siliconva...ial/5428200.htm Internet scam bilked porn customers Bloomberg News An alleged Gambino crime family member was among three people accused of running an Internet scam that bilked prospective pornography customers out of $230 million by tricking them into turning over credit card information, U.S. authorities said. Authorities say mobster Richard Martino and two other men, Norman Chanes and Bruce Chew, ran companies that bilked thousands of people in the United States, Europe and Asia with offers of ``free tours'' of porn Web sites. The companies conned prospective customers to turn over credit card information, saying it would only be used as a proof of age and that users would not be billed. Instead, credit cards were billed, usually at $59.99 a month after the initial visit without the consent of the users, authorities said. ``This massive scheme undermined public trust in e-commerce around the world, and now it is the defendants who will have to pay the consequences,'' said Roslynn Mauskopf, the U.S. attorney in Brooklyn, New York. The Web sites, which include www.playgirl.com, www.highsociety.com, and scores of others, are based on magazines owned by New York-based Crescent Publishing Group, authorities said. In 2000, Crescent published more than a dozen different magazines, including Playgirl, High Society and Climax, and had almost $40 million in print revenue, authorities said. Crescent is cooperating with the investigation, authorities said. Martino, Chanes and Chew were arrested Tuesday and charged with conspiracy to commit mail andwire fraud, conspiracy to commit credit card fraud and conspiracy to commit money laundering. The indictment also seeks forfeiture of up to $230 million in assets, including luxury homes owned by the three men in New York and California, authorities said. In 2001, Crescent agreed to pay $30 million to settle similar civil charges brought by the U.S. Federal Trade Commission and the New York Attorney General's office. The company did not admit wrongdoing in the civil settlement. __________________ Make big money on your Domains! Why wait 40 days to get paid with the other guys? Parked.com pays the most for your traffic, and cuts checks twice a month!