2. A & A News

Part: 
Four
Chapter: 
4
Anthony DeFalco and Paul Gorman, Chicago, Illinois. During a meeting at A & A News in March 1978, an agent was taken to an area in the warehouse behind a "fake" brick wall. Behind the brick wall were the eight millimeter films. In a metal cabinet behind the fake brick wall were the "animal" films depicting acts of bestiality.

Paul Gorman said he could obtain sound projectors for Golde coaste Specialities at a very good price. He said that these projectors were often "too hot to touch" and that there might be a truck having an accident in the near future, at which time he would have several hundred projectors available.

On March 15, 1978, in a tape recorded conversation Gorman said that Anthony DeFalco was in court today because one of the stores had been "hit", that is, searched by police. Gorman said that in the past they had almost been "hit" while a load of child pornography was still on the premises but that the police had gotten to the film room one 'day late. Gorman said they had shipped the child pornography the previous day and that the police were jerks for not grabbing the stuff earlier.

In October 1978, the agents met with Tony DeFalco and Paul Gorman. DeFalco mentioned the fact that he had received numerous inquiries in the past several months regarding the agents and that there were rumors around the industry that the agents were "the heat." DeFalco said that the pornography business was a close knit group of individuals, with virtually everyone in the industry has known each other for many years, and that it is almost impossible for someone new to break into the business.

DeFalco said that the hard core market was shifting from eight millimeter film to video tape cassettes. The agents told DeFalco that they had conversations with California International Distributors (CID) regarding the shipment of eight millimeter films to Miami, Florida. DeFalco was told that CID said they were on probation in Florida and would not ship hard core to Florida. DeFalco said he would handle the shipment of eight millimeter hard core film and video tape cassettes to Golde Coaste Specialties in Miami from CID in Los Angeles, California. DeFalco said the agents should contact CID, place an order and it would be shipped directly to him in Chicago, Illinois. DeFalco said that upon receiving the shipment he would immediately reship it from Chicago to Miami, Florida. DeFalco said he wanted to make a few dollars on the transaction for his trouble, but would be happy to enter into this arrangement with the agents and CID of Los Angeles, California.

DeFalco said he had received a letter from a person "established" in the pornography business which stated in effect that anyone dealing with the agents should be wary of them being cops.

DeFalco and the agents discussed Golde Coaste Specialities' interest in the purchase of L.W. Sales, Chicago, Illinois. DeFalco said he had never been able to get along with Leo Weintraub in the past and would prefer to have the agents running Weintraub's operation in Chicago. DeFalco said Weintraub continues to run his wholesale operation out of his warehouse on Milwaukee Avenue-but that he sold all five of his bookstores. DeFalco would not identify the individual to whom these stores were sold. DeFalco said that the peep machines were owned by another individual and said that the new owner of the stores would receive only a percentage of the earnings from the peep show operation.