consists of s peep show coin collector business (Alpha Sentura Businesses Services), a carpentry business to build peep show booths (Woodwork, Inc.), a business to repair peep show projectors (Centre Vending Co.) and controls several bookstores in Maryland, Washington, D.C., and North Carolina. Additionally, there are an unrelated number of individuals involved in the sale of pornographic material that are dependant upon inter-state distributors for supplies. This investigation revealed various methods used by pornography entrepreneurs to successfully operate their business and avoid detection by law enforcement. Some of these methods are: 1. Names of corporate officers are used without the individual's knowledge or consent. 2. Notary Publics are employed to notarize signatures 3. 4. 5. 6. 7. without confrontation of signees. Rubber stamps of signatures are used without the authorizing individual's knowledge. Periodic changing of corporate names. Controllers do not appear on corporate papers but are major stock holders. Pornography entrepreneurs appear as corporate officers for a legitimate business which may have pornography distributors as subsidiaries. Companies owned or controlled by major distributors deliver pornographic material automatically to their subsidiaries. VI. A. RECOMMENDATIONS Another conference be held for the purpose of exchanging updated material thereby keeping the joint investigation ongoing and current. B. Criminal financial discrepancies be brought to the immediate attention of the Internal Revenue Service. C. D. E. F. (Documentation of false invoice payments, skimming, hidden ownership, money laundering operations and bankruptcy frauds.) The United States Justice Department be provided with all documentation indicative of violations of monopoly or anti trust laws. A request be made to Congress and state legislators for assistance in exposing organized crime involvement in this industry. Members of this joint investigation bring the results of this investigation to the attention of their local prosecutors and request their assistance in local law enforcement effort in obscenity areas. Members should seek cooperation also from local agencies charged with the task of licensing and incorporating pornography outlets to insure applicants comply with the law. Assistance be provided to the Federal Bureau of APPENDIX FIVE UNITED STATES DEPARTMENT OF JUSTICE ORGANIZED CRIME INVOLVEMENT IN PORNOGRAPHY JUNE 8, 1977 UNITED STATES DEPARTMENT OF JUSTICE June 8, 1977 ORGANIZED CRIME INVOLVEMENT IN PORNOGRAPHY Most of the production and distribution of pornographic material seems to take place on the east and west coasts with the west being dominant. It is thought that as far as films are concerned, about 60% of the production takes place in and around Los Angeles with New York taking second place. Members of La Cosa Nostra (LCN) moved into this lucrative field within the last ten years and their involvement apparently is on the increase. This report, prepared by Intelligence Analyst will discuss LCN involvement in pornography by state. Those states with direct LCN involvement will be mentioned first followed by those with indirect ties to the LCN. California The key organized crime figure involved in production and distribution of pornography in California, and possibly the entire nation, is thought to be Michael Zaffarano, capo in the Galante LCN Family. He is regarded as that family's West Coast representative, although he is known to have dealings with all of the organized crime families involved in the California operations. Zaffarano and his partners, Stewart Charles Segall and Tommy Sinopoli, operate Miracle Film Releasing Corporation in |