Penthouse: Billing Unit Under Anti-Trust Probe - GoFuckYourself.com

trusted source · 05-08-2004, 01:59 PM

6 May 2004
13:53
Dow Jones Corporate Filings Alert
English
(c) 2004 Dow Jones & Company, Inc.

DJ CFA SOURCE: SEC 8-K

REASON CODES:
5--Other Materially Important Events

WASHINGTON (Dow Jones)--The Department of Justice is investigating a
newly-acquired billing unit of Penthouse International Inc. (PHSLE) in an
anti-trust probe, according to a Form 8-K that the company filed Thursday
with the Securities and Exchange Commission.

As part of the investigation, Penthouse said Internet Billing Co. LLC
must provide the department with information regarding certain one-time fees
charged to merchants in 2003. The inquiry seeks to determine whether several
Internet payment providers, including Internet Billing, collaborated to set
those fees and if so, whether those practices are anti-competitive, according
to the filing.

As reported, Penthouse acquired Internet Billing in March from
InterCept Inc. through its Media Billing LLC unit. The company said it
learned of the investigation after closing the deal.

Penthouse said it is responding to the Justice Department's requests
and will continue cooperating with the inquiry.

The company added that it is protected against certain actions taken
by Internet Billing before the acquisition closed. But the company believes
the potential damage claims could exceed the $3.8 million agreed upon in the
purchase deal with InterCept, according to the filing.

As a result, Penthouse said it will withhold payments to InterCept
until the investigation is resolved or until InterCept posts "adequate"
collateral to secure its protective obligations to the company.

[ 05-06-04 1724ET ]

DJ CFA SOURCE: SEC 8-K

REASON CODES:
5--Other Materially Important Events

InterCept is also seeking $3.8 million in cash from the largest
shareholder of Penthouse International as part of its sale in April of
Internet Billing Co., according the filing.

InterCept claims that Media Billing has defaulted on a $703,749, 8%
note issued in connection with the purchase of Internet Billing, also known
as iBill.

Media Billing issued the note March 22 as part of its $10.25 million
purchase of the iBill platform, according to the filing, along with $750,000
in cash paid to InterCept and a further $2,804,000 in cash paid to First Data
Merchant Services, a business partner of iBill.

The filing also indicated that InterCept claims Media Billing failed
to cause First Data to release a $3 million letter of credit backing the
iBill purchase, and that Media Billing thus owes Intercept around $3.8
million in cash under the terms of their March 16 purchase agreement.

Media Billing's obligations under the purchase agreement, according
to the filing, are guaranteed by Luis Enrique Fernando Molina G., the
controlling shareholder of Penthouse International.

The filing also indicated a potential issue with respect to the
indemnification of Media Billing by InterCept against any pre-closing
liabilities associated with the iBill sale.

According to the filing, Intercept received notice on April 21 from a
former client of iBill demanding payment related to a dispute over fines
levied by Mastercard and passed onto iBill clients in 2003.

The demand indicated the former client's intention "to file a lawsuit
and seek class action status unless satisfactory payment arrangements can be
made immediately," according to the filing.

The damage claims in the demand were unspecified but indicate a
potential value of "eight figures" according to the filing.

acratophorum · 05-08-2004, 02:00 PM

Fletch XXX · 05-08-2004, 02:00 PM

8 figures.

torrey · 05-08-2004, 02:02 PM

"trustedsource"

MichaelP · 05-08-2004, 02:06 PM

trusted source

Registered: Mar 2004
Location:
Posts: 1

Rich · 05-08-2004, 03:05 PM

Ibill was only worth 3.8 million?

DR_PHIL · 05-08-2004, 03:06 PM

hmmmm

Pornwolf · 05-08-2004, 03:09 PM

Uh oh.

MattO · 05-08-2004, 03:11 PM

Interesting...

eroswebmaster · 05-08-2004, 03:39 PM

Guccione 's world is falling apart.

Shoplifter · 05-08-2004, 04:24 PM

Not good.

And it begs the question did all the IPSP's set the $750 registration fee arbitrarily and without any guidance from Visa?

mailman24 · 05-10-2004, 07:36 AM

skeet · 05-11-2004, 05:23 PM

Quote:

Originally posted by Shoplifter
Not good.

And it begs the question did all the IPSP's set the $750 registration fee arbitrarily and without any guidance from Visa?

Visa said they wanted X and the IPSP charged Y. Y just happened to be more then X. The feds want to make sure its all on the up and up.

tony286 · 05-11-2004, 05:29 PM

wasnt part of it supposed to be some admin charge?

Brujah · 05-11-2004, 05:49 PM

Quote:

As part of the investigation, Penthouse said Internet Billing Co. LLC must provide the department with information regarding certain one-time fees charged to merchants in 2003. The inquiry seeks to determine whether several Internet payment providers, including Internet Billing, collaborated to set those fees and if so, whether those practices are anti-competitive, according to the filing.

They would never collaborate to do that.

skeet · 05-11-2004, 06:24 PM

Quote:

Originally posted by tony404
wasnt part of it supposed to be some admin charge?

The admin charge was for the merchnat bank. FFB in a few of the cases.

I'm sure any other overages would be labeled a service charge

I don't see what the big deal is. Hey everyone has to make a buck right?

Even the two saloon owners talk to each other in Deadwood. This is not a case of price fixing IMO.

05-08-2004, 01:59 PM	#1
trusted source Registered User Join Date: Mar 2004 Posts: 1	Penthouse: Billing Unit Under Anti-Trust Probe 6 May 2004 13:53 Dow Jones Corporate Filings Alert English (c) 2004 Dow Jones & Company, Inc. DJ CFA SOURCE: SEC 8-K REASON CODES: 5--Other Materially Important Events WASHINGTON (Dow Jones)--The Department of Justice is investigating a newly-acquired billing unit of Penthouse International Inc. (PHSLE) in an anti-trust probe, according to a Form 8-K that the company filed Thursday with the Securities and Exchange Commission. As part of the investigation, Penthouse said Internet Billing Co. LLC must provide the department with information regarding certain one-time fees charged to merchants in 2003. The inquiry seeks to determine whether several Internet payment providers, including Internet Billing, collaborated to set those fees and if so, whether those practices are anti-competitive, according to the filing. As reported, Penthouse acquired Internet Billing in March from InterCept Inc. through its Media Billing LLC unit. The company said it learned of the investigation after closing the deal. Penthouse said it is responding to the Justice Department's requests and will continue cooperating with the inquiry. The company added that it is protected against certain actions taken by Internet Billing before the acquisition closed. But the company believes the potential damage claims could exceed the $3.8 million agreed upon in the purchase deal with InterCept, according to the filing. As a result, Penthouse said it will withhold payments to InterCept until the investigation is resolved or until InterCept posts "adequate" collateral to secure its protective obligations to the company. [ 05-06-04 1724ET ] DJ CFA SOURCE: SEC 8-K REASON CODES: 5--Other Materially Important Events InterCept is also seeking $3.8 million in cash from the largest shareholder of Penthouse International as part of its sale in April of Internet Billing Co., according the filing. InterCept claims that Media Billing has defaulted on a $703,749, 8% note issued in connection with the purchase of Internet Billing, also known as iBill. Media Billing issued the note March 22 as part of its $10.25 million purchase of the iBill platform, according to the filing, along with $750,000 in cash paid to InterCept and a further $2,804,000 in cash paid to First Data Merchant Services, a business partner of iBill. The filing also indicated that InterCept claims Media Billing failed to cause First Data to release a $3 million letter of credit backing the iBill purchase, and that Media Billing thus owes Intercept around $3.8 million in cash under the terms of their March 16 purchase agreement. Media Billing's obligations under the purchase agreement, according to the filing, are guaranteed by Luis Enrique Fernando Molina G., the controlling shareholder of Penthouse International. The filing also indicated a potential issue with respect to the indemnification of Media Billing by InterCept against any pre-closing liabilities associated with the iBill sale. According to the filing, Intercept received notice on April 21 from a former client of iBill demanding payment related to a dispute over fines levied by Mastercard and passed onto iBill clients in 2003. The demand indicated the former client's intention "to file a lawsuit and seek class action status unless satisfactory payment arrangements can be made immediately," according to the filing. The damage claims in the demand were unspecified but indicate a potential value of "eight figures" according to the filing.

05-08-2004, 02:00 PM	#3
Fletch XXX GFY HALL OF FAME DAMMIT!!! Join Date: Jan 2002 Location: that 504 Posts: 60,840	8 figures. __________________ Want an Android App for your tube, membership, or free site? Need banners or promo material? Hit us up (ICQ Fletch: 148841377) or email me fletchxxx at gmail.com - recent work - About me

05-08-2004, 02:02 PM	#4
torrey Confirmed User Join Date: Jan 2004 Location: Pornslinga USA Posts: 1,656	"trustedsource" __________________

05-08-2004, 03:09 PM	#8
Pornwolf Drunk and Unruly Join Date: Jan 2002 Location: Hollywood Posts: 22,712	Uh oh. __________________ I've trusted my sites to them for over a decade... Webair, bitches.

05-08-2004, 03:39 PM	#10
eroswebmaster March 1st, 2003 Join Date: Jul 2001 Location: Seat 4 @ Venetian Poker Room Posts: 20,295	Guccione 's world is falling apart. __________________ For rent - ICQ 127-027-910 Click here for more details

05-08-2004, 02:00 PM	#2
acratophorum Confirmed User Join Date: May 2004 Location: On the Sun Posts: 311

05-08-2004, 02:06 PM	#5
MichaelP Registered User Industry Role: Join Date: Aug 2003 Location: QWEBEC Corporate Office Posts: 7,124	trusted source Registered: Mar 2004 Location: Posts: 1

05-08-2004, 03:05 PM	#6
Rich So Fucking Banned Join Date: Jan 2003 Posts: 11,486	Ibill was only worth 3.8 million?

05-08-2004, 03:06 PM	#7
DR_PHIL Confirmed User Join Date: Oct 2002 Location: Never visits the same thread twice Posts: 4,099	hmmmm

05-08-2004, 03:11 PM	#9
MattO The O is for Oohhh Join Date: Feb 2003 Location: AUSTIN TEJAS Posts: 10,861	Interesting...

05-08-2004, 04:24 PM	#11
Shoplifter Richest man in Babylon Industry Role: Join Date: Jan 2002 Location: Posts: 10,002 Posts: 5,727	Not good. And it begs the question did all the IPSP's set the $750 registration fee arbitrarily and without any guidance from Visa?

05-10-2004, 07:36 AM	#12
mailman24 Registered User Join Date: Aug 2003 Posts: 17	bump

05-11-2004, 05:29 PM	#14
tony286 lurker Industry Role: Join Date: Aug 2002 Location: atlanta Posts: 57,021	wasnt part of it supposed to be some admin charge?