Porn or Ponzi?
 

Last June, Francis Koenig, the founder of the hedge fund firm AdultVest, accepted the Hedge Fund Launch of the Year award at a black-tie dinner at the Cipriani Club that included fund managers from Blackstone Group and Paulson & Co.

Today, Koenig is fighting fraud allegations as the porn industry in which he invests suffers right along with the rest of the economy.

According to two sources who spoke to the trade publication FINAlternatives, Koenig's operation, which he calls the adult industry's first hedge fund, is just another fraud. One former investor alleges that Koenig looted the fund's coffers to finance his "fine art, expensive wines, cars, personal trips and alimony."

A former employee of Koenig's firm also claims that the fund is quickly running out of money and the assets in which it has invested, including the domains iporn.com and handjob.com, are not worth what Koenig claims they are.

Koenig denies the charges, saying the investor is in a tough financial position and is frustrated after trying to redeem his money after it was already deployed in new investments. He says that iPorn.com is doing well and the money he spends on his lifestyle comes from his own paycheck, not the company's funds.

The January issue of Atlantic Monthly included a story about the porn industry in which Koenig was quoted saying that AdultVest was up 50 percent last year. Koenig now claims he was misquoted, but the story online does not include a correction to that effect.

So is Koenig legit? If what his former employee says is true, the picture certainly looks bleak for AdultVest's future:


The former employee, who says there were about 11 employees when he worked at the firm, claims that some of the few remaining staff members, including a secretary and the firm's Web site manager, have had their salaries halved because the firm is running out of money. He also says that they are only coming into the office once or twice a week.

Even the porn industry has one-hit wonders.

Article Here

It's a scam.
I believe it was conceived to scam-
and I also predict Koenig goes to jail.

I have one of his investors constantly hitting me up telling me how they are all looking for the money he spent and I laugh like hell at them.

$250K for Iporn.com

:1orglaugh:1orglaugh:1orglaugh:1orglaugh:1orglaugh


Shit, I am still laughing from three years ago when David Joseph at Redlight told me he bought Iporns.com for an insane amount of money.


fools and their money....

$250k? wow!

Bwahahahaha.

Gee, I don't think anyone saw that coming.

KB wasnt it you trying to convince me that iporn was buying AVN, you and pornlaw.....

Hello GFY, I've been away for a while. Hope everyone had a great PHX Forum. Just to add a comment or two about this current iPorn story: Being a former independent contractor of iPorn, and having worked in the Adultvest/iPorn offices, I will confirm the story from the other employee. I personally witnessed Koenigs misuse of investors funds and can tell you that he is a flat out liar about using his "paycheck" to pay for his "fun". I personally witnessed him meeting a Brazilian, let's just say, lady of the evening during the 2008 AVN show. He brought her back to LA to live in his house for about a month and complained to all of us that worked for him, that he had spent nearly 30grand that month on her. That, only to come home and find her in his bed with someone else. Now if he says that he only spent his "paycheck", then that must meant his paycheck had to be in excess of 40K/mth because just his house note and his BMW payment alone was in excess of 7-9K/mth. Not to mention the monthly check we all witnessed his wife coming into the office to get once a month. Let's also not forget that all of his travels, even ones not job related were all paid for with the black amx card that is linked directly to the fund. I, along with other employees all witnessed these things with our own eyes. That doesn't even include me actually witnessing when he was drunk in Vegas at the last Gentlemens Club expo, put down the same black card numerous times at the gaming tables. He's a flat out liar and he knows it. I'm sure there will be more to come, just stay tuned.

It was 100% TRUE
The deal fell through when they realized The Emperor had NO CLOTHES

smells fishy in here