Adult Business Owner Busted for Tax Evasion

Jan 12, 2011 4:00 PM PST
SANTA FE, N.M. — Online adult pioneer Carolynne Tilga, who once owned One World Media that operated one of the first video chat dating sites, has been ordered to pay more than $1.7 million in taxes after she and her husband pleaded guilty to one charge of conspiracy to defraud the federal government.

Tilga and her husband, Michael Chandler, are charged with using offshore corporations they set up to shelter income from the now defunct site DateCam.com, which offered a 50 percent revenue share.

Tilga must file amended tax returns for tax years 1998 through 2004 and pay a minimum of $1,735,025 to the government to cover her outstanding tax debt for those years.

In her plea agreement, Tilga admitted that, since the late 1990s, she has been a minority owner of a number of online adult related businesses that provide payment services.

Tilga also admitted that the online businesses generated substantial revenue between 1999 and 2006, and that she directed her share of the revenue to offshore entities.

Tilga did not report the revenue generated or pay taxes on that revenue.

Tilga and Chandler each face up to five years imprisonment.

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