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Originally Posted by PR_Tom
An earlier story on it told more. What they did was paid a girl to have group sex at a private party to see if she'd be good for filming in a movie.
Thats the prostitution.. and the rest was more than likely tacked on to see if it will stick.
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A little naive there I think. Outside of certain parts of California, shoots are considered prostitiution, as it is sex for money- camera or no camera. Using prostitution to commit further offenses constitutes racketeering, which falls under the RICO act. RICO in turn allows the authorities to seize all assets without due process. Kinda hard to pay your lawyers, let alone affiliates this way.
Furthermore, paying the model's travel expenses violates the MANN act, because they are transporting people across state lines to commit indecent acts (white slavery laws)
The only thing they're missing (at this point) is IRS and a way to tie it into the Patriot Act.
This is a very serious case, with ramifications for everyone in the US who shoots content. I suspect it will set an important precident in the industry. Those boys were doing the same things that dozens of other US companies do all the time. Hopefully this will inspire them to clean up their own acts. Regardless, it hits very close to home, and if any industry related case needs our close attention (and support), I think this one is it.