3 Are Accused of Swindling Visitors to Internet Sex Sites for $230 Million - GoFuckYourself.com

lawpal · 03-19-2003, 09:14 AM

http://www.nytimes.com/2003/03/19/nyregion/19PORN.html

New York Times - free registration required

3 Are Accused of Swindling Visitors to Internet Sex Sites
By WILLIAM GLABERSON, New York Times

ederal prosecutors in Brooklyn accused three men yesterday of exploiting people's prurient curiosity in what they called an Internet pornography scheme that illegally billed Web users $230 million.

Announcing the arrests of the men yesterday, Roslynn R. Mauskopf, the United States attorney in Brooklyn, said the scheme involved pornographic Web sites falsely offering ``free tours'' and then billing visitors as much as $90 a month.

``The defendants created a web of lies and deception to trap unwary consumers on the Internet,'' Ms. Mauskopf said.

A federal indictment said Web sites that were run by the men and by five companies that were also charged asked visitors for their credit card numbers, ostensibly to obtain proof of their ages. The indictment said the men ensnared their virtual visitors in the Web sites by disabling the ``back'' buttons on the users' Internet browsers.

Those charged were Richard Martino, 43, of Harrison, N.Y.; Bruce Chew, 50, of Lloyd Harbor, N.Y.; and Norman Chanes, 56, of Manhattan. All three pleaded not guilty. According to the charges, the defendants bilked thousands of people in the United States, Europe and Asia.

The prosecutors said that Mr. Martino is a soldier in the Gambino crime family and that he had passed more than $8 million from the scheme to the crime family.

The prosecutors said Mr. Chew was the chief executive of the Crescent Publishing Group, a publisher of explicit magazines, including Playgirl and Live Young Girls. The indictment said the swindle used Web sites that offered material from the magazines.

Crescent Publishing, based in Manhattan, was not charged, and the prosecutors said the company was cooperating with the investigation.

A woman who answered the telephone at the company said Mr. Chew was no longer employed there.

Mr. Chanes was identified as the president and owner of Harvest Advertising, a Manhattan company that placed advertising in magazines and on the Internet. Harvest was one of the companies charged in the indictment. Also charged were companies that the prosecutors said were in the phone-sex business and were controlled by Mr. Chanes and Mr. Martino.

The men were charged with conspiracy to commit wire fraud and credit-card fraud and money laundering. If convicted, they could face prison sentences as long as 20 years. In addition, the prosecutors are seeking to seize assets of the men, including the Southampton homes of Mr. Martino and Mr. Chanes, valued at $4 million and $11 million.

After consumer complaints to credit card companies, the Federal Trade Commission and the New York State attorney general sued Mr. Chew, Crescent and other companies in 2000. In 2001, the defendants agreed to pay $30 million without admitting liability.

Prosecutors said the Web sites were designed so that an inquisitive Web surfer might become distracted. During the ``free tour,'' the prosecutors said, vague language about the price of a visit was placed ``in the midst of sexually explicit text which was superimposed over sexually explicit images.''

Gimmy · 03-19-2003, 09:21 AM

interesting, mafia is taking over porn now, whats next????

TheFLY · 03-19-2003, 09:26 AM

That's a ho lotta money...

sandman! · 03-19-2003, 10:20 AM

This shit is old news i got hit on one of thier sites when i was a surfer a few years ago.

Dveron · 03-19-2003, 10:24 AM

Quote:

Originally posted by Gimmy
interesting, mafia is taking over porn now, whats next????

Actually I think they have already moved on to more profitable ventures like Wall St.

Seaz · 03-19-2003, 10:32 AM

should have moved to antigua or something

tony286 · 03-19-2003, 10:41 AM

If you are fucking stupid enough to give a website your cc number for something they say is free. You deserved to be fucked. lol

TDF · 03-19-2003, 10:44 AM

Quote:

Originally posted by tony404
If you are fucking stupid enough to give a website your cc number for something they say is free. You deserved to be fucked. lol

so much for free trials

greenlab · 03-19-2003, 10:45 AM

yeah..like maximum cash...with consists of 3-4 companies, all in different offshore jurisdictions......hard to find someone there

)

Brujah · 03-19-2003, 11:08 AM

Attention spans are short. The big $30 million settlement issue took place almost 2 years ago now I think.

Surfers will be whipping out their credit cards for "free" sites just like they always have.

tony286 · 03-19-2003, 03:44 PM

Sites keep fucking people and thats why its harder and harder to get a merchant account. People should be pissed, people decieving or fucking the customer makes it harder for us all to do business.

chupacabra · 03-19-2003, 03:51 PM

i wonder if this sort of thing being in the mainstream media is going to affect the various third-party merchant providers ability or desire to allow the whole "free-trial" paradigm at all. honestly, i've always thought most of them *are* in fact a scam, banking on the surfer being confused as to what they must do to avoid being billed afterall, i'm sure there are some exceptions out there but on the whole they blacken our industry in my eyes..

03-19-2003, 09:14 AM	#1
lawpal Confirmed User Join Date: Feb 2002 Location: Miami Posts: 824	3 Are Accused of Swindling Visitors to Internet Sex Sites for $230 Million http://www.nytimes.com/2003/03/19/nyregion/19PORN.html New York Times - free registration required 3 Are Accused of Swindling Visitors to Internet Sex Sites By WILLIAM GLABERSON, New York Times ederal prosecutors in Brooklyn accused three men yesterday of exploiting people's prurient curiosity in what they called an Internet pornography scheme that illegally billed Web users $230 million. Announcing the arrests of the men yesterday, Roslynn R. Mauskopf, the United States attorney in Brooklyn, said the scheme involved pornographic Web sites falsely offering ``free tours'' and then billing visitors as much as $90 a month. ``The defendants created a web of lies and deception to trap unwary consumers on the Internet,'' Ms. Mauskopf said. A federal indictment said Web sites that were run by the men and by five companies that were also charged asked visitors for their credit card numbers, ostensibly to obtain proof of their ages. The indictment said the men ensnared their virtual visitors in the Web sites by disabling the ``back'' buttons on the users' Internet browsers. Those charged were Richard Martino, 43, of Harrison, N.Y.; Bruce Chew, 50, of Lloyd Harbor, N.Y.; and Norman Chanes, 56, of Manhattan. All three pleaded not guilty. According to the charges, the defendants bilked thousands of people in the United States, Europe and Asia. The prosecutors said that Mr. Martino is a soldier in the Gambino crime family and that he had passed more than $8 million from the scheme to the crime family. The prosecutors said Mr. Chew was the chief executive of the Crescent Publishing Group, a publisher of explicit magazines, including Playgirl and Live Young Girls. The indictment said the swindle used Web sites that offered material from the magazines. Crescent Publishing, based in Manhattan, was not charged, and the prosecutors said the company was cooperating with the investigation. A woman who answered the telephone at the company said Mr. Chew was no longer employed there. Mr. Chanes was identified as the president and owner of Harvest Advertising, a Manhattan company that placed advertising in magazines and on the Internet. Harvest was one of the companies charged in the indictment. Also charged were companies that the prosecutors said were in the phone-sex business and were controlled by Mr. Chanes and Mr. Martino. The men were charged with conspiracy to commit wire fraud and credit-card fraud and money laundering. If convicted, they could face prison sentences as long as 20 years. In addition, the prosecutors are seeking to seize assets of the men, including the Southampton homes of Mr. Martino and Mr. Chanes, valued at $4 million and $11 million. After consumer complaints to credit card companies, the Federal Trade Commission and the New York State attorney general sued Mr. Chew, Crescent and other companies in 2000. In 2001, the defendants agreed to pay $30 million without admitting liability. Prosecutors said the Web sites were designed so that an inquisitive Web surfer might become distracted. During the ``free tour,'' the prosecutors said, vague language about the price of a visit was placed ``in the midst of sexually explicit text which was superimposed over sexually explicit images.''

03-19-2003, 11:08 AM	#10
Brujah Beer Money Baron Industry Role: Join Date: Jan 2001 Location: brujah / gmail Posts: 22,157	Attention spans are short. The big $30 million settlement issue took place almost 2 years ago now I think. Surfers will be whipping out their credit cards for "free" sites just like they always have. __________________ Free Premium Domain Lists and Tools at Clickmojo.com For Sale: Obscenity.com

03-19-2003, 09:21 AM	#2
Gimmy Confirmed User Join Date: Jul 2002 Location: My ass Posts: 1,069	interesting, mafia is taking over porn now, whats next????

03-19-2003, 09:26 AM	#3
TheFLY So Fucking Banned Join Date: Jan 2001 Location: http://www.thefly.net/ --- Quit your job and live off steady traffic. Posts: 11,856	That's a ho lotta money...

03-19-2003, 10:20 AM	#4
sandman! Icq: 14420613 Industry Role: Join Date: Mar 2001 Location: chicago Posts: 15,432	This shit is old news i got hit on one of thier sites when i was a surfer a few years ago.

03-19-2003, 10:32 AM	#6
Seaz Confirmed User Join Date: Mar 2002 Location: Montreal Posts: 773	should have moved to antigua or something

03-19-2003, 10:41 AM	#7
tony286 lurker Industry Role: Join Date: Aug 2002 Location: atlanta Posts: 57,021	If you are fucking stupid enough to give a website your cc number for something they say is free. You deserved to be fucked. lol

03-19-2003, 10:45 AM	#9
greenlab Confirmed User Join Date: Oct 2002 Posts: 252	yeah..like maximum cash...with consists of 3-4 companies, all in different offshore jurisdictions......hard to find someone there )

03-19-2003, 03:44 PM	#11
tony286 lurker Industry Role: Join Date: Aug 2002 Location: atlanta Posts: 57,021	Sites keep fucking people and thats why its harder and harder to get a merchant account. People should be pissed, people decieving or fucking the customer makes it harder for us all to do business.

03-19-2003, 03:51 PM	#12
chupacabra Confirmed User Join Date: Sep 2002 Posts: 3,626	i wonder if this sort of thing being in the mainstream media is going to affect the various third-party merchant providers ability or desire to allow the whole "free-trial" paradigm at all. honestly, i've always thought most of them are in fact a scam, banking on the surfer being confused as to what they must do to avoid being billed afterall, i'm sure there are some exceptions out there but on the whole they blacken our industry in my eyes..