Porn Mogul Sentenced to Federal Prison

AUSTIN, Texas — The owner of 27 adult-oriented businesses was sentenced to more than five years in federal prison last week and ordered to forfeit $8.1 million in property after he pleaded guilty to racketeering, obscenity and fraud charges, according to a statement released by the Justice Department.

After an investigation that involved the Internal Revenue Service, U.S. customs officials and the Department of Homeland Security, John Kenneth Coil, 61, along with his wife, daughter, son and four other employees, was charged with the interstate transportation of obscene material and mail fraud, as well as withholding $4.5 million in taxes from the federal government.

On Friday, United State District Court Judge Harry Lee Hudspeth sentenced Coil to 63 months in federal prison and ordered him to pay a $5,000 fine and forfeit all business properties located in Texas.

“You break the rules, you cheat the federal government, you make millions selling this smut, and you don’t even pay your taxes to the tune of multi-millions of dollars, you will be held to account,” said U.S. Attorney Johnny Suttion.

According to Justice officials, Coil was the head of a three-state tax evasion scheme that involved placing properties in his children’s names without their consent and skimming money from his stores.

Coil also pleaded guilty to obscenity for the interstate transportation of hardcore German video “Nympho Bride,” a movie that federal officials referred to as “sadistic.”

“John Kenneth Coil has been a long time pornography merchant who has made millions selling obscenity and cheating on his taxes,” said Sutton. “He is finally on his way to federal prison for his crimes. American families have won a battle today in the fight against pornography.”

Seven other co-defendants were sentenced earlier by Hudspeth, including Coil’s business partner Charles Phelps Jr., also known as “Mr. D” and “Dave Smith,” who received 42 months in federal prison. Coil’s wife, daughter and son each received three years probation.

Copyright © 2026 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

Angela White, Madison Ivy Lead New Threesome From Brazzers

Multi-XMAs winner Angela White and Madison Ivy star with Ricky Johnson in the latest release from Brazzers, titled "Couple or Throuple?”

FTC Invites Public Comment on 'Click to Cancel' Rulemaking

The Federal Trade Commission (FTC) announced this week that it is seeking public comment on whether it should amend its Negative Option Rule to better address deceptive or unfair practices.

Taylor Wild Performs 1st DVP in Latest From New Sensations

Taylor Wild performs her first DVP with Damon Dice and Alex Legend in the latest release from New Sensations.

Icon Debuts New 'Ultra' Panty Vibe

Icon Brands has introduced its new Ultra panty vibrator.

Melissa Stratton Headlines Latest 'The Stepmother' From Sweet Sinner

Melissa Stratton toplines the 18th volume of "The Stepmother," the latest release from Mile High Media studio brand Sweet Sinner.

Leana Lovings Returns to Parasited

Leana Lovings stars with Aria Sloane in the latest scene from Parasited, titled “Strange Visitors.”

Samantha Reigns Stars in Latest Release From Evil Angel

Samantha Reigns stars with multi-XMAs winner Mick Blue in a new anal scene from Evil Angel.

Lucy Mochi Returns to Hentaied Pro

Lucy Mochi stars with Dolly Orchid in the latest scene from Futanari XXX, titled “Secret Sauce.”

Dakota Lyn, Addison Vodka Front Latest From Blacked Raw

Dakota Lyn and Addison Vodka star with Jason Luv in the latest release from Vixen Media Group (VMG) studio imprint Blacked Raw.

Show More