Born in 1943 to Jack
and Lucille Mohney, Harry Virgil was the youngest of two children. He
remembers few good things about his childhood. He was nine when his
father left home. His mom married a man he hated.
Harry left home at age
15 and lived with a teenage couple in downtown Battle Creek. He worked
odd jobs at night, stacking boxes in a Kellogg plant, cleaning chickens
in a slaughterhouse. At age 16, he was arrested for breaking and entering.
Mohney spent a year in reform school. He eventually worked on the railroad
and married his high school sweatheart Mary Jane.
He began his porn career
in the 1966. In his early 20s, he worked as a projectionist at the Eastown
Theatre, an X-rated movie house in Battle Creek, owned by Floyd Boss.
When Boss ran into financial
difficulties, Mohney lent him several thousand dollars for "adequate
interest." Harry and Floyd became partners.
They opened a drive-in
X-rated theater on the edge of Durand, a small town near Flint, MI,
known as "the Durand Dirties." Mohney showed movies like Swingin'
Swappers and Thar She Blows. Soon police had to direct traffic off the
highways on nights the movies played.
Mohney opened up a distribution
outlet for the sex industry in Durand, employing more than 200 persons.
He gave generously to Little League programs and the Durand high school
football team. Probably the city's largest employer, he was well-liked.
With his partners, Harry
began buying up cheap theaters and bookstores across Michigan. Most
became porn outlets. "Everybody was moving to the suburbs and there
were these big old barns in cities across the country sitting empty,"
says porn lawyer John Westin.
From an income of $2,000
in 1966, Mohney was worth $6 million in 1970.
In October of that year,
Bloss's only daughter, Debbie, an 18-year old Western Michigan University
student, was stabbed to death in the basement of one of his theaters.
"There was a movie going on at the theater when she was stabbed,"
says Harry who broke the news to his partner. "People heard her
screaming but they thought it was part of the film."
Distraught by his daughter's
death and by his legal battles, Bloss sold out to Mohney and retired
to Hawaii where he still lives.
By 1973, Harry owned
more than 100 outlets in ten states and 20 cities. These holdings generated
income of over $6 million a year.
Mohney began to reorganize
his affairs, using trusts and corporations to conceal his business interests
and to avoid taxes.
He separated from Mary
Jane, the mother of his four children, before divorcing her in 1977.
He took on 18-year old Gail Palmer as his mistress.
Mohney built his fortune
on peep machines, rising to become one of the three main pornographers
behind Reuben Sturman and Mike Thevis according to Parade magazine 8/19/79.
Mohney imported large
quantities of Euro-porn and controlled about 60 adult bookstores, a
string of massage parlors, X-rated theaters and drive-in movies, go-go
joints and a topless billiard hall. He shared Reuben Sturman's passion
for privacy.
Mohney worked closely
with the LCN Colombo and DeCavalcante families who dominated East Coast
porn distribution with the Gambinos. (Meese Commission, p. 1230)
During the 1980s, Harry
owned and operated Caribbean Films (Hyapata Lee was a contract girl
for three years) and the dominant mid-West distributor of X-rated movies,
Entertainment World International.
Due to screwups by federal
investigators, Mohney and Sturman were just two of six pornographers
who escaped personal conviction in the MIPORN sting. The last of the
MIPORN cases, Mohney pled guilty in 1987 to a corporate charge against
his company Wide World of Video.
Retired FBI agent William
Kelly remembers discussing morality with Mohney. "There's no such
thing as right and wrong," Harry claimed. "What if I shot
you in the head?" asked Bill. "That would be killing,"
said Mohney, "but not immoral."
Mohney and Kelly developed
a good relationship during Mohney's MIPORN trial in 1987.
Mohney's mistress Gail
Palmer helped make eleven movies for him, including the Candy series
starring Carol Connors. When Gail and Harry split in 1984, she told
authorities about his tax evasion. At the same time, an investigation
of a New Year's Day fire in Indianapolis uncovered documents that led
to a search of Mohney's Michigan warehouse. Agents learned that Harry
ran more than 70 corporations and skimmed more than $1 million a year
from just one of them.
In 1990, federal prosecutors
called Mohney the nation's second-largest purveyor of pornography and
estimated his net worth at more than $100 million. Prosecutors said
Mohney held interest in more than 100 cabarets, peep shows, movie theaters
and book stores in 15 states.
On 10/16/92, Mohney
began serving three years in prison for tax evasion at Boron Prison
in California's Kern County (outside Bakersfield).
"Mr. Mohney's empire
was a moneymaking machine that raised pornography to the heights of
a major, well-run business," says Assistant U.S. Attorney Richard
Delonis who prosecuted Mohney. "He used scores of corporate entities
to hide himself in a very effective way. I have not encountered anyone
who took cheating on their taxes to this kind of level."
Often called the Howard
Hughes of porn, Mohney now owns the Deja Vu strip club chain which brings
him and his partner over $10 million a year. Harry's multimillion dollar
empire consists of nude dance parlors, peep-show operations, coin-operated
vending machines, phone-sex services and "love boutiques"
that sell X-rated magazines, sex toys, videos and CD-ROMs.
In its tax prosecution
of Mohney, the government argued that he used "a complex veil of
deceit" to conceal his ownership in the businesses, including a
network of sham corporations and front men, and that the money he skimmed
from the operations "provided (Mohney) with an untaxed, virtually
untraceable cash trove of nearly $1 million a year." Mohney's "utter
lack of remorse and denial of responsibility is merely further evidence
of his contempt for the law when it does not suit his needs."
"Harry did everything
he could to insulate himself - trusts, off-shore bank accounts, shell-after-shell
corporations," a prosecutor told the 10/20/91 Detroit News.
"My husband makes
$600,000 a year," Palmer told the News, "and we don't live
as well as Harry and I did when he and I were together and he was declaring
$120,000 in income on his tax return."
Mohney's most significant
contribution to the sex industry is the development of "gentlemen's
clubs," meaning upper class strip joints. He saw back in 1970 that
the big money lay not in seedy bookstores and peepshows but in glittering
showbars featuring nude dancer. As the industry changes, Mohney adapts.
Déjà Vu boasts a sophisticated web site.
"Hugh Hefner forgot
what he was selling," Harry told the Detroit News in 1991. "He
tried to use female sexuality as a loss leader. But we never forget
the business we're in: And that's tease and please
. Call us the
Bonanza Steakhouse of nude entertainment."
Déjà Vu uses quirky
advertising like "100s of Beautiful Girls and 3 Ugly Ones, Coast
to Coast."
According to Mohney,
the "three best things in life are pretty women, good booze and
a fine set of golf clubs."
Harry has eight kids,
four out of wedlock.
Jamie [Ralph Gardner] kindly sent me an updated draft of this article,
which I'd lost in a computer crash - here's another excerpt from a lengthy
piece I wrote about the period when I ran the San Diego strip club Jolar
in the mid-80s. The Harry Mohney referred to is the head of the Deja
Vu club chain, as well as running the Hustler Clubs, etc:
One of my worst days was when about a half dozen FBI guys showed up
in my office. It seemed Harry Mohney was in some kind of tax situation,
as well being in legal hot water that affected Jolar once the feds discovered
Harry’s company, not Jackie Hagerman, was the true owner. When feds
saw the monitoring switch and speaker on my desk that eavesdropped on
the private talk show booth phones (something Lee Bickel had set up
to keep women from entering into illegal transactions with customers),
I was handcuffed and arrested for “installing or maintaining an illegal
surveillance system.” When they found a UPS box of porn vids addressed
from the Michigan office, they threatened to file federal charges, against
me personally, for “interstate transportation of pornography,” which
they claimed could earn me twenty years in prison.
I sat there with my mouth shut (a Company edict I followed religiously)
while they tore my office apart and took away all the files, bankbooks
and records, even my own school notebook from a night class I was taking
in graphic arts. The charges against me were later dropped but the FBI
visited me a few other times. Most of their questions were about Harry,
particularly about his and the Company’s various home properties maintained
in and around La Costa. I didn’t know at the time that his ex, Gail
Palmer had filed suit against Harry in February ‘85, claiming the house
at 2520 La Costa Avenue as an asset she thought she co-owned (“I later
discovered it was placed in the name of Caribbean Films, Inc.” she wrote
in her court declaration). I was surprised to find out the FBI knew
I’d house-sat a few weekends in a couple of those La Costa homes (one
periodically occupied by Jackie, not Harry).
That’s about when I first started noticing black cars with no license
plates following me as I drove to our various bank deposit drops (we
maintained several, I knew better than to ask why). When they didn’t
turn out to be robbers, I assumed them to be feds. I wondered if someone
had been following me up to La Costa, perhaps on occasions when I was
asked to prepare Company houses for Company guests to visit. I’d be
sent off by Jackie or Harry with a shopping list of snacks, fridge drinks,
wine, condom boxes and other stuff that I was to sprinkle around for
impending guests.
I was occasionally instructed to introduce a “fun loving” dancer or
three to male Company associates, with the girls making their own deals
with Harry, Jackie and/or the visitor if there was to be monetary compensation
for their time and efforts. I know, I know…weird fucken gig. The house
Jackie frequented had all white carpets and furniture downstairs, furthering
that “Yoko-esque” association for me. She liked my girlfriend and invited
us to spend evenings and weekends there by ourselves, though usually
slotting in some shopping, dry cleaning or car-delivery errands for
me to do while up there (she had a new Mercedes with a gold hood ornament
that always needed to be moved from some airport or another, she didn’t
want her expensive oft-replaced ornament stolen from any more airport
lots).
One of my oddest experiences at Company homes took place at the Yoko
house. After spending the night, my girl and I awoke to the sound of
multiple voices coming from the backyard. Imagine our surprise to find
about a dozen guys setting up cameras and lights around the pool and
deck, for a morning video shoot, and I don’t mean the wedding type.
I found this was common and in fact I soon began recognizing Company
houses as backdrops in porn vids screened at Jolar.
Just as we were relaxing to the notion of what would soon be happening
around us before we even ate breakfast, the director informed that Harry
Mohney had commissioned this to be a “golden shower” video. (“Orange
juice? Um, no thanks.”)
Harry attended one of my early attempts to market Jolar to a growing,
more affluent customer base when I began bringing porn stars to the
club to do weekend personal appearances. The women signed autographs
and posed for Poloroids with fans ($10 a pop, $20 nude) and even performed
one-on-one shows in the Private Talk Show booths for $20 per three-minute
“show” (split between star and club).
Patti Petite was the first, a small bottled blonde with a Joan Rivers
voice but sexy features and a reputation for doing anything, anywhere,
anytime. We ran one of her movies on a screen in the background while
she met fans and I recall being uncomfortable the first time one of
her sex scenes came on while I was sitting right there next to her.
“My mouth hurt for days after that,” she said after one particularly
frenetic scene and I laughed, tension somewhat relieved.
I’d never met a porn star and I had no idea what kind of freak show
to expect. She was a perfectly nice young lady with a rather dirty mouth.
Harry was impressed with the line of men waiting to meet her and leading
out the front doors all night long - we grossed an additional $10,000
for the weekend, above and beyond the increased take in the booths with
local ladies and video decks.
I got a fat bonus and the Company began paying other porn stars to
fly in and stay at Harry’s homes to do these lucrative personal appearances,
which were advertised in local zines, military papers and via old fashioned
flyering of rock show parking lots and even at other dance clubs. Most
women were doing videos for Harry too, though I’m not sure if Traci
Lords was working for Caribbean when we booked her. She was due to appear
on the following month when news hit about her underage status. I was
among the merchants scurrying to empty her dozens of videos off the
shelves and return to the main office (which presumably destroyed them
all). A lot of people still showed up to see Lords, even after we put
up signs announcing her appearance had been cancelled.
Harry (or rather the Company) bought an adult bookstore on 827 National
City Boulevard and Jackie and I began converting it to be setup like
Jolar, with live dancer booths. However, there was some doubt about
whether the city would allow us to even open the doors, given new zoning
laws, cloudy property purchase records and the questionable adult-boutique
license transfer. Harry wasn’t a legal county resident, I was told,
or perhaps he was merely unwilling to apply his name to the license.
Lord knows in-house paper trails regarding his many business interests
were treated like top-secret documents – “need to know” prioritized,
arcanely coded and promptly shredded (we were only allowed to refer
to him as “Our Friend” in company correspondences and reports).
I was once nearly fired for accidentally opening a Fed-Ex envelope
addressed to Jackie containing fictitious name applications signed by
company employees, whose address-specific histories needed to be confirmed
(or created?) to obtain new operational permits in various southwest
cities.
In a meeting with Jackie and Harry, I was approached to front as owner
of the Nat’l City shop, at least temporarily, until the permits cleared
and the business could re-open. I considered the nearly six-figure offer
to put my name on the business license as “owner” and on incorporation
paperwork as “president and controlling officer” of the “new” corporation
while we remodeled the building’s cavernous interior.
We opened the front section as a bookstore only, with a Jolar part-timer
named Tom Gray “managing” who’d later go to federal prison in Boron
for dealing meth. The only reason the doors were opened was to stave
off a threat of condemnation by the city.
In what is in hindsight a rare wise decision, I declined to become
a part-owner of the National City store.
Sure enough, it was shut down a few weeks later without the remodeling
ever being finished and neither Jackie nor Harry ever referred to it
again. Harry was eyeing other San Diego locales for what would eventually
become his Déjà Vu clubs.
Downtown was seeing the death of its peep show population. At the same
time, the city was becoming a hot spot for both porn producers and resident
stars, with more and more videos being produced (and sold) within city
limits. We briefly carried, on consignment, a few vids literally hand
made by locals who’d bring them in shopping bags, with photocopied covers
and an occasional pasted-on photo print of a lady who may or may not
appear on the tape.
Some of the Jolar girls appeared in Harry’s porn mags, given away on
site, and others made their own X-rated tapes which they sold in the
shop (minus a commission for the house, of course). The Company saw
the future was clearly in “Live Nude Girls,” especially those industrious
enough to market themselves with trinkets like handmade vids, Poloroids,
and even worn undergarments (which we briefly offered to customers free
as a “happy hour” promotion, part of a paid booth “Talk Booth” show
and given right off the ladies’ backs, as it were).
The Company opened new stores patterned after Jolar, like Pandora’s
Box on 6th Avenue in Tucson, Arizona. Similar shops were started in
Phoenix, Galveston, Las Vegas and elsewhere, and Jackie and I trained
some of the new managers in Tucson or at Jolar. Porn star events continued
to be more popular, with occasional media coverage. Not always positive
coverage (“You’ll be shocked to hear what’s happening in YOUR neighborhood!”),
but anything that mentioned us was considered good press and inevitably
resulted in a rush of new and often devotional patrons (note to guys
trying to impress strippers – you ALL bring f----- flowers to the club,
it’s not charming, it’s not original, the ladies AND their boyfriends/girlfriends
are laughing at you and it’s not gonna get you laid – “once a john,
always a john,” just bring cash).
The dancers were making far too much money for Jackie’s liking. She
came to visit for a week (her gold Mercedes hood ornament stolen twice
while parked out front, I suspect by angry dancers) and revamped the
whole system. She rebooked each girl as an “independent contractor”
and rented them booth space at the club to perform! We charged $75 off
the top of anything they made, and then took 50% of their tips, all
of which went into lockboxes between them and the customers. The women
never got to handle their own money until the end of the week, when
we’d deduct our booth rental fees and our half of her week’s tips.
This pissed off a lot of dancers but none that I recall quit. In fact
competition became fierce to rent booths on the best weekend nights,
with women paying days in advance to keep their preferred booth and
shift. Rent soon went up to $100 per booth shift.
After only a few weeks of this system, the state department of equalization
came down on us over the girls’ benefit-less non-employee status. I
was visited June 26, 1985, by Deputy Labor Commissioner Victor Rojas,
who brought with him several vice cops and a fire inspector, Captain
Marion Stillwell. Stillwell kept me busy with eight cited violations
while Rojas and vice grilled the dancers. The labor board then informed
us that dancers had to be treated as employees from that point forward,
threatening us with years’ worth of dancers’ back taxes if we challenged
the decree. Jackie chose not to fight and put all the dancers on the
payroll, requiring them to clock in (I had to buy a time-clock) and
paying them a minimum hourly wage. All their tips went into lockboxes
which the Company kept for each woman until the end of the week. Then
Jolar would cut them a check for 50% of their total tip earnings, which
still netted the average girl a couple thousand dollars a week for only
a few nights’ work.
It wasn’t just vice and the city campaigning to erase the pornographic
blight on College Grove’s landscape. There were also occasional protestors
to deal with. The twenty or so matronly ladies carrying “Jolar Exploits
Women” signs around the building for four consecutive weekends (10am
to 2am, same shifts as the dancers), during summer 1986, were my favorite.
They actually listened to the dancers when they went outside to inform
that they weren’t being sold into slavery and that the lowest wage earner
among them took home more cash per night than the club manager. “Who’s
exploiting who?” they posited. The protest signs didn’t come down but
it was entirely enjoyable and amusing to see such very disparate women,
leading such unrelated lives, having a lively discussion in the front
parking lot about a woman’s right to buy a condo off wages legally earned
while nude.
The club was raided again, this time by vice cops holding warrants
for the arrest of several dancers and myself. One of the dancers, “Angie,”
had solicited an undercover cop and others had been caught performing
“forbidden acts” in private booth shows for secret Sheriff shoppers
(many of whom, the dancers insisted to me, exposed themselves and masturbated).
POLICE REPORT against Ellwest, excerpt: “The window in booth permitted
each side to view the other, and customers were asked to expose their
penises and masturbate to show that they were not police. Each officer
made excuses, however, and the performers did not insist. Officers saw
defendant perform twice, each time with another woman. Each time, the
performers fondled and licked each others' breasts and masturbated.
One performer also squeezed milk from her breasts. Officers who watched
other performances testified that women other than defendant fondled
and licked each other vaginally as well…manager arrested for operating
or maintaining a house of prostitution and pandering, class 5 felonies.”
I’d never spent more than a couple of hours in jail for the Company,
someone always bailed me out while the handcuffs were still warm and
took care of virtually all my court appearances. I can’t recall ever
being in an actual courtroom for them despite being arrested (by local
authorities) four times, over dancer infractions (in addition to the
unnerving if never-pressed FBI bust). Charges, against ME anyways, were
always eventually dropped, if ever filed at all. For some reason, this
time I had to spend the entire night in a downtown holding cell, and
I was rather unhappy about this, as you can imagine. Besides, there
were still those unmarked black cars I kept seeing…