Mike South writes on www.mikesouth.com: This one has been whispered about for a long time and it isn’t unusual at all for the feds to take years to build a case and this time it certainly looks like the rumors have basis in fact.

The Orange County Register has run a story that Michelle Braun, who ran Nici’s girls is about to change her not guilty plea and to co-operate with feds in the investigation.

Couple this with the arrest about a month ago of Elizabeth Starr and another girl (Starr indicated it was Taylor Wane, but that has not yet been verified except via Starr’s statement.)

Starr indicated that her arrest was a joint effort between county and federal officials and that they knew who she was and even exactly what room she would be in at the hotel before she even checked in. She indicated that she was told that the feds were looking at travelling pornstars in particular and had operations going on in New York, Chicago, Detroit, Miami and other cities.

Several sources have indicated that Derek and L.A Direct supplied porn girls to these “agencies”, a move that at the very least would cost him his agency license, though word is it’s going to be a lot bigger than that.

Stay tuned….This one could get interesting.