$170 Million Fed Contract for Adam & Eve Founder's Nonprofit

A nonprofit organization founded by one of the adult industry’s top producers has received a nearly $170 million federal contract to manage health programs, including those addressing sexually transmitted diseases - despite a history that included a seven-year investigation of his porn activities by the Justice Department.

Philip Harvey may be the head of the nonprofit Population Services International, but he's also the main brain behind Adam & Eve, the popular porn video and Internet outfit and mail-order distribution operation out of North Carolina. And PSI's landing of the U.S. Agency for International Development contract has prompted a call for an immediate investigative review, the Washington Times has reported.

USAID officials told the paper the agency's administrator, Andrew S. Natsios, had no idea Harvey had anything to do with Adam & Eve. And Harvey told the paper there was no conflict of interest between what he does with PSI, which he founded in 1971, and what he does with Adam & Eve, which he founded three years later as a mail-order business.

Harvey is said only to remain on the PSI board of directors, having had no management responsibilities at the nonprofit for several years.

"He is not involved in PSI nor is PSI involved in whatever you just mentioned, whatever it's called," PSI president Richard A. Frank told the Times when asked about the Adam & Eve operations. "We have nothing to do with what he does in his private life and I don't know much about his private life but it has zero to do with us."

For a related story, click here.