Texas – Dollar Adult Video Store in San Benito is no longer bringing in the dollars.

The business on Expressway 77/83 – along with 27 other adult-oriented businesses in Texas, Arizona and New Mexico owned by John Kenneth Coil – was seized last week by U.S. Customs Immigration and Enforcement and the Internal Revenue Service’s Criminal Investigation in “Operation Skimflick.”

The shutdowns stemmed from a case against Coil, 61, of Highland Village, who pleaded guilty on June 21 to federal charges of racketeering, obscenity, fraud and income tax evasion.

As part of his plea agreement, United States District Judge Harry Lee Hudspeth ordered that Coil spend 63 months in prison, pay a $5,000 fine and forfeit $8.1 million in property, which include more than two dozen adult video stores.

Coil was also ordered to spend an additional 42 months of supervised probation.

“John Kenneth Coil has been a longtime pornography merchant who has made millions selling obscenity and cheating on his taxes,” said U.S. Attorney Johnny Sutton of the Western District of Texas, whose office prosecuted the case. “He is finally on his way to federal prison for his crimes.”

The government was also ordered to seize Coil’s Dollar Adult Video Store at 354 E. Elizabeth in Brownsville. However, that store has been closed since at least 2000.

Denton Langford, spokesman for U.S. Customs Immigration and Enforcement in San Antonio, said officials are reviewing a pre-seizure list to determine which property is still owned by Coil and what has been sold.

According to the U.S. attorney’s office, Coil admitted to using front companies for his business. He also put some of his properties in the name of his children without their knowledge.

The government was also ordered to seize a residence at 7808 Military Highway in Brownsville. The residence is valued at $60,000 and belongs to Coil, according to a seizure list from the U.S. attorney’s office.

It was not immediately known if the residence has been seized.

Langford said federal authorities were targeting Coil’s the adult video stores first.

“That’s where the obscenity is taking place; it’s not taking place in the parking lots and rental places. (The seizures are) to take the profits out of that operation,” Langford said.

A sign posted Thursday on the Dollar Adult Video Store in San Benito said the business had been seized by the Department of Homeland Security, Bureau of Immigration and Customs Enforcement. It referred anyone who had claims to call the department.

“I was wondering why this place was closed,” said a man who had driven up to the business and read the posting.

Langford said U.S. Customs Immigration and Enforcement were involved in the investigation because Coil faces allegations of money laundering and importing the adult video “Nympho Bride” into the United States – a violation of federal law.

The IRS became involved because of Coil’s failure to file tax returns; the U.S. Postal Service became involved because Coil mailed fraudulent documents.