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

Our Erotic Journey Rolls Out 'Store Locator' Site Feature

Our Erotic Journey (OEJ) has debuted its new Store Locator feature on its website.

Ella Reese, Taylor Wild Topline Latest 'Lesbian Analingus' From Sweetheart Video

Ella Reese and Taylor Wild headline the 19th volume of “Lesbian Analingus” from Mile High Media studio imprint Sweetheart Video.

Segpay Partners With Corey Silverstein for Legal Services

Segpay has partnered with adult industry attorney Corey D. Silverstein for specialized legal compliance and policy support for its merchant network.

Victoria Grant Stars in Latest From TransAngels

Victoria Grant stars with Daniel Gainsbrook in the latest release from TransAngels, titled "Seduced by the Belly Dancer."

Zalo Signs Distro Deal With ECN

Zalo has inked a deal with East Coast News (ECN) for U.S. distribution.

Toendi Debuts 'Aurora 2' Vibe

Toendi has unveiled its new Aurora 2 vibrator.

Missouri Governor Signs Bill Making AV Regulations State Law

Missouri Governor Mike Kehoe signed a bill into law on Thursday requiring adult websites to age-verify users in the state, finalizing a legislative “stamp of approval” for AV rules after Missouri’s attorney general unilaterally imposed similar regulations last year.

Ameena Green Fronts Latest From Bellesa Plus

Ameena Green stars with multi-XMAs winner Alex Jones in a release from Bellesa Plus, titled “The Tailor.”

Ofcom Fines Fapello $845,000 for AV Noncompliance

U.K. media regulator Ofcom on Thursday imposed a fine of 630,000 pounds (about $845,000) against adult website fapello.com for failing to comply with provisions of the Online Safety Act.

Je Joue 'ILY G-Spot Wand' Featured in Vice Review

Je Joue’s ILY G-Spot Wand has been named Best G-Spot Wand in a new round-up of the best wand vibrators on Vice.com.

Show More