Holistic Wisdom Corporation

Attack On Tax Evasion & Porn Smells Fishy

A federal grand jury in Texas has indicted a Denver-based pornographer and six associates, accusing them of underpaying sales taxes and distributing obscene movies to stores in 18 states. Edward Wedelstedt, 62, who heads Goalie Entertainment, a porn empire run out of a nondescript brick building faces racketeering, obscenity and tax evasion charges outlined in a 54- page indictment. It took them 5 years to try and get Goalie for Taxes, so it seems they have now combined their charges with distributing porn that they deem obscene.

Goalie admits that it is one of the largest distributors of adult entertainment in the country. But Wedelstedt's attorney, Henry Asbill, scoffed at the indictment, saying it was an attempt by a new regime at the U.S. Justice Department to take a swipe at his client after the federal government's tax investigation of Wedelstedt went nowhere. "He distributes adult movies to consenting adults in adult-only stores," said Asbill, based in Washington. "It's legal."

He is accused of conducting transactions in such a way that the enterprise's true revenues were obscured. Asbill said the evidence will show that Wedelstedt's companies actually paid more than their fair share in taxes. Prosecutors are attempting to seize at least $48 million in proceeds acquired over the last dozen years and all shares of stock owned by Wedelstedt and his companies.

Luke Lirot, a lawyer who routinely represents adult entertainment operators, said Wedelstedt is well-known in the industry. Lirot called him a good businessman with a philanthropic soul. Wedelstedt's nonprofit foundation, called Eddie's Kids, has given thousands of tickets for Denver Nuggets and Colorado Avalanche games to poor children, Lirot said. During conventions for porn executives, Wedelstedt would pressure his peers to donate to his foundation, said Lirot, based in Tampa, Fla.

Indeed, Wedelstedt's name appears in society columns over the years as attending and holding fundraisers. Lirot said the case will boil down to a jury's perception of whether the material is obscene by common standards in their community. And he wondered why the case was pursued in the Northern District of Texas, instead of

Videos deemed obscene included 1 Pink & 1 Stink that features multiple double vaginal scenes in addition to double anal from cover girl Jayna Oso.

Denver, which is generally considered to be more liberal. "That doesn't pass the smell test," Lirot said

The allegedly obscene videos named in the indictments are In The Pink # 1, In The Stink # 5 (Red Light District); American Bukkake # 7 and # 8 (JM Productions); Cumshots # 4 (Anabolic Video); Gangbang Angels # 11 (Elegant Angel Productions) and Tits and Ass # 8 (Devil’s Films). According to Wedelstedt’s attorney Hank Asbill, the government’s tax investigation went nowhere, and the expanded indictments are an attempt by a new regime at the DOJ to take a swipe at his client.