CA Attorney General Announces Grand Jury Indictment in LAD Case

OAKLAND, Calif.—The office of California Attorney General Rob Bonta released a statement Tuesday announcing that Bonta had secured a grand jury indictment against adult talent agency LA Direct Models' owner Derek Hay and two other defendants in a case launched in 2020 that now carries 20 felony charges including pandering by procuring, conspiracy to commit pimping and perjury under oath. The case was initiated by Bonta's predecessor Xavier Bercerra almost exactly three years ago, in March 2020, and at the time carried 12 counts, two of which were against Hay. Of the 20 counts in the newly unsealed grand jury indictment—which was filed with Los Angeles Superior Court September 28, 2022—Hay faces five counts, all related to the above offenses. The announcement from Bonta's office, in pertinent part, follows: California Attorney General Rob Bonta today announced securing a grand jury indictment against three defendants for allegedly operating a prostitution and sexual exploitation scheme through a company called The Luxury Companion and a talent agency called LA Direct Models. The defendants, who were initially charged with 12 felonies in 2020, now face a total of 20 felony counts of alleged pimping, pandering, conspiracy, money laundering, and perjury. Today's announcement comes after the defendants were arraigned on the indictment [Monday] at the Clara Shortridge Foltz Criminal Justice Center in downtown Los Angeles.   “If you break the law and exploit people for sex, my office will come after you,” said Attorney General Bonta. “Our investigators and prosecutors remain steadfast in their efforts to fight for public safety on behalf of the people of our state. In this case, my office has successfully demonstrated to a grand jury that there is sufficient evidence to put the defendants to trial. We won’t rest until we’ve secured justice.”   Through the indictment, the criminal grand jury determined there was sufficient evidence for the prosecution of the defendants to proceed to trial. The indictment, which was affirmed in Los Angeles County on September 28, 2022, alleges that the defendants committed the majority of the felonies from 2017 through 2018. However, alleged counts of conspiracy and perjury were committed as early as 2013 and as late as 2022. Per court filings, the defendants allegedly set up hundreds of sexual encounters in exchange for money. In at least one instance, to entice models to work with them, the defendants allegedly promised to secure a film shoot with an award-winning pornography maker. In another instance, the defendants allegedly pressured an individual into prostitution by limiting access to work in pornography. In yet another instance, the defendants allegedly also pressured an individual into participating in more adult films in order to make more money through prostitution from the individual’s increased exposure. The next court date for the defendants is currently set for April 25, 2023. During [Monday]'s arraignment, the defendants pled not guilty.   AVN reached out Wednesday to Hay's attorney, Richard W. Freeman, Jr., for comment, but had received no response as of press time.  Perhaps of interest to note, however, according to Shouse California Law Group, is that the vast majority of felony charges in California are brought by way of the preliminary hearing process and not a grand jury. A prosecutor may choose to pursue an indictment through a grand jury, the firm's resource guide explains, for reasons including that "there is high public interest in the case," "the prosecution plans to call witnesses who ... would not do well under the cross-examination that would occur at a preliminary hearing" and/or "the case against the defendant seems weak—and the prosecutor wants a chance to 'test' it out before jurors." In addition, legal site Nolo.com points out, "grand juries almost always return an indictment as requested by the prosecutor," and "prosectors often prefer grand juries because the proceedings are secret, whereas preliminary hearings are open to the public."