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Adult Video owner gets five years, must forfeit 27 businesses

By CRAIG KAPITAN

Eagle Staff Writer

A federal judge sentenced Adult Video owner John Kenneth Coil to more than five years in prison Friday and ordered the 61-year-old to give up the longtime College Station business.

As part of a plea agreement, Coil previously had pleaded guilty to racketeering, obscenity, fraud and income tax evasion charges concerning his businesses in Arizona, New Mexico and Texas.

In all, the Highland Village resident was ordered to forfeit to the federal government 27 adult-oriented businesses and more than 40 other properties estimated to be worth $8.1 million. The seizures include his three Brazos County properties, Adult Video on Texas Avenue and two empty lots on Poplar Street — with a total value of about $187,000.

In June, Coil pleaded guilty to mail fraud for sending a fraudulent tax form to the Internal Revenue Service and to obscenity for transporting a film titled “Nympho Bride” across state lines. In all, Coil is believed to have bilked the government out of $4.5 million in taxes between 1981 and last year.

Coil also has admitted to illegally using front companies — such as Louisiana Development and Trinity Christians of America — to operate his businesses. In addition, he placed some of the businesses in his children’s names, he told federal authorities.

Adult Video was owned by a business called Nobby Lobby Inc. and the property was owned by his son, John Altaire Coil, according to the Brazos County Appraisal District.

John Altaire Coil was one of seven other people —including the elder Coil’s wife — also sentenced in connection with the charges.

“It took years of investigation, along with risky undercover work, to penetrate this criminal organization,” Dallas County District Attorney Bill Hill said in a written statement.

“Hard work and extensive cooperation ... brought to justice criminals who believed they were untouchable,” said Hill, who prosecuted the case along with U.S. attorneys and Department of Justice attorneys. “They now know otherwise.”

An IRS investigator described Coil and his accomplices as a “nefarious organization,” according to the same U.S. Attorney’s Office release.

Friday’s sentencing won’t mark the first time Coil has been ordered to spend time behind bars. In the mid-1980s he was convicted in Brazos County on seven counts of possessing obscene materials with intent to deliver following a raid of his College Station business.

After a lengthy appeals process, Coil disappeared from his Dallas-area home in 1989 and didn’t serve the 19-month sentence in Brazos County until authorities caught up to him months later in New Mexico.

For the recent investigation, local prosecutors provided federal authorities with two file cabinet drawers full of information on the business, County Attorney Jim Kuboviak has said.

• Craig Kapitan’s e-mail address is ckapitan@theeagle.com.

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