While the bulk of the indictment against John Kenneth Coil and co-defendants pertains to alleged tax fraud and financial schemes, 15 counts of obscenity violations were leveled over the distribution and sale of five videos over the last three years.
The videos named in the indictment are: Elegant Angel’s Gang Bang Angels 16, Nympho Bride ”Die Mannstolle Rraut“ a German hardcore tape distributed by Video Team, Wet Cotton Panties Volume 5 and Deep Oral Ladies Vol. One, and Pretty Anal Ladies Volume 6 all part of the Annaka collection distributed by CDI.
Coil’s co-defendants include his daughter, Katherine Dagninno, his son John Altaire Coil, business associates Curtis Wayne Castro, and business associate Charles Phelps, Jr.
According to the indictment, Coil owns a number of adult businesses through the Southwest, real estate, and stock in a variety of companies including one that operates under the name California Exotic Novelties, though that is not the adult novelty maker based in California.
Listed elsewhere in the 68-page indictment issued last week, but not for obscenity, is Coil’s wife Patricia, who was named on a tax charge, and Charles Joseph Phelps, 22,charged with one count of conspiracy to defraud the IRS. Charles Joseph Phelps assists his father’s business.
Gang Bang Angels 16 was directed . The video stars Susane and Sandra, who are gang banged by ten men at a mechanic’s shop.
Wet Cotton Panties Volume 5 shows an a2m and a scene where a woman takes a cumshot in her eye.
Each video was indicted on one count each of importation or transportation of obscene matters (Sec 1462), transportation of obscene matters for sale or distribution (Sec. 1465), engaging in the business of selling or transferring obscene matter (Sec. 1466).
Sec. 1462 can result in no more than five years and/or a fine for the first offense, and up to ten years and/or a fine for each offense after, violations of Sec. 1465 and 1466 are both punishable by a five-year jail sentence and/or a fine.
John Kenneth Coil and his family turned themselves in, as did business associate Curtis Wayne Castro, when the indictment was unsealed last week. They were released and are awaiting a date for their preliminary trial.
Their lawyer John Sweeney had no comment regarding the case.
Charles Phelps Jr., 47, San Juan; and his son, both of San Juan are also named in the indictment and are still at large.
The indictment comes from a five-year probe conducted by the IRS Criminal Investigation, the Dallas County District Attorney’s office and the U.S. Bureau of Immigration and Customs Enforcement.
The indictment alleges the owners never paid taxes on millions of dollars in income and details an elaborate web of business deals that were allegedly designed to hide money and the liability of Coil for any obscneity charges.
"This is only a piece of this case," said Vincent Klink, resident agent in charge of the bureau's Austin office, where the investigation is centered, told the San Antonio News-Express. "There are 100 subjects (under investigation). There will be an additional indictment and additional defendants."
