Denver- A Denver man, known as one of the kings of the adult video business, may be going to prison.
Under an agreement reached in Dallas, Eddie Wedelstedt, entered a guilty plea to charges of transporting obscene materials and defrauding the government.
In Denver, he's perhaps better known for his charity work.
This is just one of some 60 adult video stores in 18 states owned by his company.
Federal prosecutors are calling the plea agreement "a warning to those who pander in hard core pornography."
Wedelstedt's 'empire' is called Goalie Entertainment and it specializes in x-rated video arcades and adult bookstores.
Wedelstedt pleaded guilty to engaging in a conspiracy to defraud the Internal Revenue Service and to transporting obscene material for distribution.
"Depicting some type of patently obscene pornographic material of adults engaging in sexual conduct," said John Harrison, of the IRS.
Even though Wedelstedt is known in the adult world, he also has a Denver charity called 'Eddie's Kids'.
In Denver, the charity buys tickets to Denver Nuggets games then gives them back to the team to hand them out to needy children.
"'Eddie's Kids' has supported youths and families that could not come to sporting events for over a decade. We will continue operating with the 'Eddie's Kids' foundation," Kronke Sports spokesman Paul Andrew said in a statement.
The IRS has already seized more than a $1 million Wedelstedt's businesses.
"Mr. Wedelstedt claims that he is the largest distributor of adult bookstore items in the nation," Harrison said.
The plea agreement calls for his bookstores and video arcades only in Texas to be shut down.
Through his attorney, Wedelstedt said he has never personally viewed the movie deemed obscene nor did he personally ship it.
Under the plea agreement, Wedelstedt could get 13 months behind bars.
He will be sentenced on February 9. The plea agreement must be approved by a federal judge.
