The plea agreement, which is pending court approval, ends a criminal probe that thrust the elusive, homegrown porn baron into the media spotlight. For Cohen, the $6.4 million in penalties is a mere dent in his fortune.
The agreement does not name Cohen, the chief executive of National A-1, and he is not charged with any crime. Cohen's attorney, Andrew L. Miller, declined comment. Joseph P. Grimes, the attorney for R.S. Duffy, did not return a phone call from the Daily News.
The companies, which developed and operated Escorts.com out of an office building on 7th Street near Chestnut, made revenue from women who advertised on the site and men who used it, prosecutors said.
"The defendants received subscription fees and payments in the form of money orders, checks, and credit cards from escorts and users of Escorts.com throughout the nation," U.S. Attorney Peter J. Smith wrote in the filing. "To conduct their operations, the defendants maintained a number of accounts at various financial institutions, investment funds, and financial services providers affecting interstate and foreign commerce."
Under the settlement, the U.S. Attorney's Office will not bring any additional criminal charges against the two companies or Cohen's other ventures, which include Hotmovies.com and PrimeTel Communications. The agreement does not bar the IRS from bringing any tax-related charges and fines.
The money-laundering and criminal-forfeiture charges grew out of a State Police investigation in central Pennsylvania, where a trooper uncovered a link between online prostitution in the Williamsport area and Escorts.com.
