In this, even a little reminiscent of a detective story, it will be about the very, that is, the real prodigal son of Internet commerce. He showed himself to all e-commerce world as a bright innovative businessman whose activity is connected with the transformation of the Internet into the global market space of the future.
Richard Gordon and Vataru TakahashiAnd there is some truth in this. Although the name of the 62-year-old Mr. Richard Gordon (Richard Gordon) doesn’t say anything to the majority of the World Wide Web users, he nevertheless played a significant role in the development of e-commerce. When Amazon.com and eBay were still taking their first tentative steps, the companies created by Mr. Gordon at the very beginning of the 90s laid the foundation for electronic transactions using credit cards - the development that formed the basis of first-generation electronic commercial projects.
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And if, according to the Broadway show “Avenue Q”, the Internet is created for porn, then it’s very natural that Mr. Gordon’s first customers were producers of entertainment “for adults”.
At a time when huge sums were earned and squandered online in the 90s, Mr. Gordon made his fortune on commissions from accompanying the sales process for a number of sites, from small highly specialized sellers to large ones like ClubLove, who published sexy photos of Pamela Anderson ( Pamela Anderson) and Tommy Lee.
Currently, his payment services company continues to operate in the sex entertainment segment. According to information from both former and current employees who are aware of the agreements, one of the companies he owns or manages, Processing Solutions, facilitates the process of credit card transactions for DTI (Digital Talk International) web sites.
DTI is located on the Caribbean island of Curacao and operates, from Los Angeles, an extensive and profitable network of adult sites targeting the Japanese market.
Together with the evolution of e-commerce in the network, Mr. Gordon himself developed. Despite the fact that the early period of his career was associated with operations with credit cards and the provision of services to producers of pornographic Internet products, he has recently rushed to a somewhat different business - Christian charities.
Until last week, his design company Bold New World, located in Los Angeles, had a lucrative contract to develop websites for the American Bible Society (American Bible Society) - a 192-year-old charity organization located in Manhattan, whose mission is to make the Bible accessible to everyone in the world.
Bold New World has also created a web site for SPCA International, a charitable organization that fights against animal cruelty, by encouraging members of the armed forces to bring homeless dogs from Iraq. This charitable organization has caused active controversy among animal rights advocates, since it does not have its own animal shelter and is not associated with any of the oldest and most recognized organizations in the fight against animal cruelty.
Although Mr. Gordon has combined such totally incompatible aspirations as pornography, the Bible and the prevention of cruelty to animals, combining the worldwide payment power of credit cards and the respectability of excellent sites, knowledgeable people say that his business is still closely connected with DTI.
There are no official data on the porn industry, but those who have studied this segment are of the opinion that DTI is the main player in the pornography market. “DTI has a leading position in the world among companies operating in the adult services market,” said MJ McMahon, owner of the AVN Online news site covering this topic.
Miles Woodlief’s lawyer, Mr. Gordon, states that "neither Mr. Gordon nor his company has anything to do with the porn business." For his part, Mr. Gordon presents his career in a more favorable light.
"I am an inventor, a creative genius and a pioneer," he claims in a statement sent by his press secretary. “For the past 30 years, I have been working with thousands of different people around the world. And most of them, including senators, governors, presidents of the United States, governors, and people who have made themselves billionaires, whom I personally informed about the mistakes I made before, admire me. ”
Dozens of former as well as working employees and business partners of Mr. Gordon say that whatever his business is now, anyway, the organization of transactions for porn sites has been his main activity for a long time. Many talk about it anonymously, for fear of prosecution for the public disclosure of its activities.
These people characterize DTI, which is owned and managed by Wataru Takahashi, a Japanese billionaire who has worked with Mr. Gordon on various projects for at least 10 years as one of his most profitable and loyal customers in the organization of operations with credit cards.
DTI is dozens of sites, for a fee offering customers everything from online video sessions with porn performers to frank cartoons manga. According to some former and current employees associated with the company's finances, the websites bring in a monthly income of about $ 15 million. Content for most of these sites is produced in Los Angeles and then sent to Japan, where strict legislation is applied to the manufacture of this type of product.
And the main link in the sales and billing of DTI are the services provided by Mr. Gordon’s company.
“Gordon organizes the credit card turnover for each site that Mr. Takahashi owns,” said Alex Becker (Alex Becker), a former top manager at Stickam, a social network based in Los Angeles. “Mr. Takahashi is dependent on Richard, and they always work together.”
According to Mr. Becker, Stickam, an online video chat designed for teenagers, is funded and managed by DTI. Scott Flacks, a former Stickam executive who quit this spring, says Gordon and Takahashi have close ties.
“There is a trust between them that prevails over the business,” he says.
Another employee who worked for several years directly at DTI claims that Mr. Gordon contributed to opening the company's accounts in at least two American banks and one German. The clerk also confirms that Gordon’s company receives monthly payments from DTI for facilitating such matters. The employee reported this information anonymously, since signed a non-disclosure agreement with DTI.
“Richard is a problem solver,” this man says. "He is definitely the intermediary between the banks and Takahashi, although you will not be able to find any papers confirming this."
In addition, Takahashi and Gordon seem to help each other hire workers, conduct trials and find the necessary political contacts. In February 2007, Takahashi, in honor of his wife's birthday, threw a magnificent party at Grand Cayman, where he spends some part of each year, living in the condominium of the Ritz-Carlton hotel.
According to the information of four people present at the holiday, about 100 guests, including Mr. Gordon and several of his colleagues, flew there from all over the world in private jets. Among those present was a representative of a large casino network in Las Vegas - Mr. Takahari is an avid player and frequent visitor to the city - as well as Stanton D. Anderson, who has long been a member of the Republican Party and consultant to the American Bible Society ). Later, Mr. Anderson declined to comment on this issue. Guests were offered a sea cruise to the Caribbean and a sumptuous dinner on the beach with an orchestra. When the guests enjoyed the lobsters - the grill and other delicacies, the casino representative and Mr. Takahashi presented the birthday girl with expensive gifts, such as a diamond tennis bracelet from Tiffany.
In 1979, six years after the honorary dismissal from the ranks of the naval forces, Gordon was arrested by the FBI. He was detained by the feds, hiding in the apartment of his friend in Washington. On the table in the living room were found four tickets for Concord's flight to Paris and back.
According to a federal appeals court in 1981, the New York authorities were investigating Mr. Gordon, who at the time was living outside Albany (Albany) and managing insurance and financial companies, for misappropriating clients ’money. According to court materials, after learning of the investigation, Gordon closed his business and left Albany, planning to leave for Europe.
In 1980, he was ultimately charged with fraud, moving a stolen check between states and providing false information to the bank. He spent more than two years, from the seven allotted to him, in federal prison in Dunbary, in Connecticut and Lompoc, in California.
“About 30 years ago, being a zealous energetic young businessman, I made a mistake. I was convicted and served a sentence, ”Mr. Gordon says about this period of his life. “Then, for almost three decades, I was a diligent and honest entrepreneur, inventor and businessman. I created jobs and career opportunities for thousands of people. ”
According to business publications of the time, after moving to Los Angeles in 1983, he worked as a business consultant throughout the 1980s. It was then that Gordon came up with another thing: carrying out payment using credit cards over the phone.
According to the reports of commercial newspapers, he began with the circulation of credit cards for 1-900 and other telephone services, mail orders and TV stores. He was also among the first to start online transactions.
At that time, credit card issuers were horrified by the prospect of web operations due to the indirect contact of transaction participants. In addition, most of the early e-commerce operators were from the so-called risk group, such as porn producers and gambling entertainment companies. Banks set higher rates for these operations, because people sometimes try to dispute the fact of making a purchase from their account, perhaps in order to justify themselves to a spouse.
At that time, when other payment operators avoided high rates, Gordon saw this as a prospect. In the 90s, his companies, including Electronic Card Systems, figured out how to reduce risk. Their method was to create a database of unreliable customers and then refuse to careless users when they log into the network again to make purchases.
“Gordon was a pioneer,” says Jeffrey D. De Petro, who worked for Electronic Card Systems as a risk manager from 1995 to 1998. “We used different ways to monitor e-commerce transactions, and I think it predetermined the pros and cons of this industry.”
Mr. De Petro and five other former employees of the time say that the Canadian gambling network CryptoLogic was their major customer. They also confirm that Mr. Gordon was involved in organizing work with credit cards for ClubLove and other sites owned by the now-defunct Internet Entertainment Group, which offered pornographic photos and videos for paying monthly membership.
“In those days, he was everything for Internet pornography,” says Steven Peisner, one of the veterans of the payment card industry who worked for Electronic Card Systems in 1997. "At that time, in order to do something with porn on the Internet, you had to contact Electronic Card Systems."
Employees of the time recall the extravagant offices of the company, located on the fifth, sixth and seventh floors of the Luckman Building at Sunset Boulevard in Hollywood. The walls were decorated with elegant graphics, there were always fresh flowers in the lobby. Mr. Gordon arranged for his workers magnificent parties in his house on Holliwood Hills and went to Bentley.
According to Mr. Pesner and other former employees, in the 90s Gordon created and managed many companies, but they were always interconnected and located in the same offices. In addition to Electronic Card Systems and its associated Electronic Authorization Systems, he was engaged in publishing, international telephone communications and in interior design business.
According to the company's press release in 1999, in order to maximize the benefits of the gold rush on the worldwide network, Mr. Gordon unites most of these companies into a single structure CreditCard.com. But the company had financial problems. Former employees remember from time to time the checks returned by banks, as well as the transfer of ownership of leased funds.
In accordance with the archival documents of the Court of Appeal for the Ninth District of the United States, in 1999 Mr. Gordon brought new partners from Nashville into the business, borrowing several million dollars from them, using his capital as security for the deal.
Documents related to the trial show that when Gordon was unable to pay debts to his partners, they dismissed him. The company is now called iPayment and is located in Nashville.
"He played so many games that he eventually outplayed himself," said Masih Madani, the former head of technical department at CreditCard.com, speaking about Gordon.
However, Gordon did not leave the company empty-handed. According to court documents, the new owners paid him $ 2 million to settle his lawsuit against them. Well, in the end, Gordon managed to save another valuable asset after this first, in some way, Internet raiding - his relationship with Wataru Takahashi and DTI.
But there is another person to whom Richard Gordon should be grateful for his help after the ruin of CreditCard.com - Paul Irwin, head of the American Bible Society, who from 1996 to 2004, was the executive director of the Humane Society of the United States. of the United States).
For two decades of preaching animal rights, Dr. Irwin, an adviser to the United Methodist Church (United Methodist Church), has turned the Human Society into the world's largest charitable organization for the protection of animal rights. But his tenure in this position was also overshadowed by scandal.
In 1987, USA Today reported a community expense of $ 85,000 to build Dr. Irwin’s country house in Maine. Ten years later, by a court decision, the company paid $ 1 million to the Canadian branch of the Human Society for collecting donations in Canada and then transferring money to the United States.
Dr. Irwin began using Mr. Gordon’s services towards the end of his time at the head of the Community, in April 2003. Tax reports show that the company paid $ 881,000 to the new Gordon Exciting New Technologies company.
In May 2003, according to a press release, Gordon recruited Dr. Irwin's son, Christopher (Christopher) as the head of his company's development department. It was not possible to receive comments on this from Mr. Irwin Jr. It is also not known how long he worked there.
In an interview, Dr. Irwin said that Exciting New Technologies developed a “technology platform” that allowed the Human Society to become the most powerful publicly supported animal welfare organization out of all who provide assistance after hurricane Katrina in 2005. The representative of the company said that Dr. Irwin canceled the implementation of the software implementation project in 2004, and that the company purchased the technology from another company.
However, when Dr. Irwin left the Human Society and headed the American Bible Society, he again used the services of Mr. Gordon. Then Dr. Irwin said that the society has many sites whose work must be rationalized.
Between July 2005 and June 2007, in accordance with tax reports, Christian Charity paid Exciting New Technologies more than $ 5 million. A representative of a charitable organization said that this money, in addition to design services, also includes e-mail marketing services and Bible digitization work, which were performed by subcontractors.
According to Dr. Irwin, these costs are significant, but the organization just needed quick progress in the network. “We were so far beyond the development of Internet technologies that we had to make such sacrifices. Next year you will see that the costs of this will be much less, and then they will continue to decrease. ”
However, payments to Mr. Gordon’s company raised questions within the Bible community itself. , , , , , .
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After the community was asked about its relationship with Mr. Gordon’s company, it was stated that the American Bible Community and Richard Gordon decided to terminate all business relations by mutual consent. It was also added that the investigation into Mr. Gordon’s collaboration with the community will continue.2007 , 1865 Broadway, Columbus Circle . , , Sonnenblick Goldman . , , , - 20 . , , « ».
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An E-Commerce Empire, From Porn to Puppies — New York TimesBIW