A Utah grand jury handed down an 11-count indictment Wednesday night against a North Carolina company that mailed sexually-oriented catalogs, video tapes and magazines to Utah.
The indictment alleges the company used the U.S. Postal Service to mail obscene material to the state on 11 occasions specified in the indictment.The grand jury indicted the company, P.H.E. Inc., and six company employees in each of the counts. Indicted were: Philip D. Harvey, Alan C. Bushnell, Ann F. Buzenberg, Frederic W. Fuller Jr., Richard W. Loy and Peggy A. Horton. P.H.E. also does business as Adam and Eve.
Each count carries a penalty of five years in prison and a fine of $250,000 for each individual convicted, said Assistant U.S. Attorney Richard Lambert. Each count carries a $500,000 fine for the company as a whole, he said.
The individuals indicted have not been arrested, said U.S. Attorney Dee Benson. They will come to Utah to answer the indictment within the next two or three weeks, Benson said.
According to the indictment, the company mailed catalogs to males in Bountiful, Salt Lake City, Logan and West Jordan, including to an 8-year-old and a 16-year-old.
The mailings occurred in the spring of 1986.
"There were a variety of factors that caused us not to take this to the grand jury until now," Benson said, explaining the 4 1/2-year lapse between the alleged commission of the crimes and the indictments.
"After the mailings occurred back in 1986, there was some discussion between the company and the prosecutors here. Those dragged on for some time. We'll have such discussions with anybody under investigation who wants an audience," Benson said.
Adam and Eve also filed a civil suit seeking to prevent any criminal prosecution by alleging bad faith on the part of the U.S. Department of Justice, Benson said.
Prosecution of Adam and Eve was put on hold until that suit was resolved, Benson said.
The statute of limitations on the case runs out in the spring, Benson said.