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

XBIZ LA Conference Website Goes Live, Registration Now Open

The event website for the XBIZ LA conference is now live, offering comprehensive information about the upcoming event, taking place Jan. 7-10 at the JW Marriott L.A. LIVE.

Full Circle Expands 'My Buddy' Anal Plug Collection

Full Circle Brands has added three new vibrating anal plugs to its My Buddy line.

ERIKALUST Releases 'Close Up'

Spookie Shelbie and Delfine Dahlia star in the latest release from ERIKALUST, titled “Close Up.”

BMS Factory, Calvista Sign Distro Deal for Australia, New Zealand

Canadian pleasure brand BMS Factory has signed an exclusive deal with Calvista for distribution in Australia and New Zealand.

Lexi Lore Makes Her Vixen Debut

Lexi Lore has made her debut for Vixen Media Group's flagship imprint alongside Parker Ambrose in the studio's latest release.

Nalpac Acquires Holiday Products

Nalpac has acquired Chatsworth, California-based adult distributor Holiday Products, expanding its West Coast presence.Nalpac adds Holiday to its distribution network after previously acquiring Tempe, Arizona-based boutique distributor Entrenue in 2023.

Penthouse Names Madiiitay as October's 'Pet of the Month'

Penthouse Magazine has named Seattle content creator and professional modeling newcomer Madiiitay as Pet of the Month for October.

Wendy Marvell, Shadow Dimitri Make Their Immoral Debuts

Wendy Marvell and newly crowned XMA Europe Male Performer of the Year Shadow Dimitri have made their debuts for Immoral Productions alongside Marvell's husband Matt Bird, Irish Bull, John Price, and studio honcho "Porno Dan" Leal.

Ofcom Cites Web Prime, Porntrex for Alleged AV Violations

U.K. media regulator Ofcom on Tuesday notified two operators of adult websites of the agency’s provisional determination that the companies have failed to comply with provisions of the Online Safety Act.

Show More