Man once dubbed Porn's New King pleads guilty in fraud case

AP News
Posted: Jul 21, 2016 6:22 PM

NEW YORK (AP) — A Los Angeles man once dubbed Porn's New King has pleaded guilty to securities fraud and other crimes in New York.

Jason Galanis entered the plea Thursday in federal court. Prosecutors say the charges pertain to a manipulation of the market for a publicly traded company, Gerova Financial Group Ltd., from 2009 to 2011.

U.S. Attorney Preet Bharara (buh-RAH'-ruh) says Galanis was the ringleader of a multimillion-dollar fraud scheme that secretly acquired shares of Gerova and then manipulated the market by cashing out.

Forbes magazine labeled Galanis Porn's New King in 2004 after he bought the nation's biggest payment processor for Internet porn.

Sentencing is scheduled for December.

In May, Galanis was charged in a separate scheme with cheating a Native American tribe and investors out of $60 million. He has pleaded not guilty.