ALBUQUERQUE – Two adult video stores here are among the dozens of properties targeted for government seizure in connection with an alleged pornography-based racketeering and tax evasion ring.

A federal grand jury in Waco, Texas, earlier this month charged seven people with a host of crimes tied to the operation of 27 adult stores in New Mexico, Texas and Arizona.

According to the Department of Justice, the defendants were members of an organization established by 61-year-old John Kenneth Coil of Highland Village, Texas, in 1981. Authorities said the group profited from the operation of numerous adult bookstores and arcades that sold and distributed obscene and pornographic materials.

The indictment alleged that members transported child pornography and other obscene material across state lines and created fake businesses as fronts for the operation.

The indictment seeks $9.7 million from the defendants, including 58 pieces of property across New Mexico, Texas, Arizona, Arkansas, Louisiana, Missouri and Utah, plus stock in several corporations.

The five New Mexico properties targeted by authorities for seizure include two video businesses in Albuquerque – Mr. Peepers and Viewpoint.

Mr. Peepers is owned by Point of View Corporation, a New Mexico company, while Viewpoint is owned by a Texas corporation, Bernalillo County property records show.

The three other New Mexico properties are a home in Albuquerque, a Dona Ana County site and a Farmington location – all identified by address in the indictment.

Coil has been charged with racketeering, conspiracy to defraud the Internal Revenue Service, tax evasion, mail fraud and other crimes.

His wife, Paula Coil, is charged with conspiracy to defraud the IRS.

Other defendants, who are all from Texas, face charges that include conspiracy to defraud the IRS, importation of obscene material and interstate transportation of obscene material.