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August 1, 1998

Director Greg Steel writes:

Vince (producer) and I have signed a deal with a well-known prominent movie-studio to film and complete my project "TRIBAL" for a theatrical release with some rather highly talented cast members being tossed around. The budget was approved at $2,000,000.00 with the principal leads taking points on the back-end while working for union-scale upfront. Vince and I, accompanied by our (DP) director of photography and our press agent, are leaving for Managua, Nicaragua on Aug. 19 of this month for a scouting and press conference that will announce our intentions to the media as we will be the first film production ever allowed to film in their Country. The government of Nic. is very excited about this project and have extended us more than ever imagined any help we requested. We will be meeting with the gov. officials and I must say we are a tad nervouse about the attention that will be brought on by all this. At the same time I believe this is exactly what a Wicked owner described as the "NEXT LEVEL", although he could never attain such a level as this..."

AIM doctor Steven York sent out this fax 7/30:

Re: HIV status of Lilly Lynn a.k.a. Kristin

On July 17, a DNA PCR screening test for HIV was reported with the result "Detected."

Subsequently, she has had multiple negative tests. These include RNA PCR viral load tests, Elisa tests, as well as a Western Blot.

I feel that the original result was aberrant. i.e. WRONG. Laboratories, like all of us are imperfect. That is why, despite quality control measures, confirmatory testing is required.

"Quarantine" notification which was given, pending confirmation is canceled.

A.I.M.'s policy calls for notification to be made immediately if a screening test is reported to detect HIV. In the interest of protecting other performers, this is done before confirmatory results are available. The names of performers potentially at risk of infection are also made available to relevant parties.

Confirmatory testing is made available at no charge to a potentially infected performer.

Kristin has undergone tremendous stress as a result of this initial report, as have those close to her. I wish to personally thank her and Matt for their cooperation. During this trying time, they showed great strength, and are to be commended.

Friday, 7/31/98:

I arrive at Star World at 9:30AM to not miss Rob Spallone's first meeting with VCA owner Russ Hampshire. Rob's dad Joe was told by his old friend Russ to muzzle his son. Russ was concerned by a quote attributed to Rob by Luke about f---ing 16-year old girls in the ass like they supposedly do at World Modeling.

Rob, who hasn't had a manicure in three weeks and still walks with a limp from his unnecessary apendectomy two weeks ago, called Russ and arranged the meeting for Friday, 7/31/98 at 11AM.

I ask Rob, "Are you ready for our meeting?"

Rob: "What do you mean we?"

Luke: "You've never met Russ. I know him. He's my buddy. We'll go together and I'll introduce you."

Rob horrified: "No Luke, I don't think that is a good idea. You're my buddy, but you're the main reason for this meeting. Your writing on the internet is stirring up everyone. I think it best I go alone."

Luke: "Rob, trust me. Russ Hampshire is my buddy. He'll be thrilled to see me."

Rob: "I don't think so Luke."

Eddie Pierce, make-up artist and good guy, walks in, his hair a fresh new shade of purple. He says that John Bowen bounced him checks worth $700, forcing him to borrow money from his mom to pay the rent.

Luke finally bamboozles Rob into allowing him to come along to VCA. Luke still feels keenly his lack of an invitation to Gavin Brown's 2nd Grade birthday party, and his April dismissal from his favorite orthodox synagogue in LA.

We arrive at 10:45. Russ walks in a few minutes later and flips when he sees me.

Russ: "Luke, what are you doing here?"

Luke: "I wanted to introduce you to Rob Spallone. Russ, this is Rob Spallone. Rob, this is Russ Hampshire."

Russ: "I shouldn't even allow you [Luke] in my building. I don't know what to do with you. You print lies. You don't check your facts. You're on my s--- list."

Rob goes with Russ into VCA while I wait in the air-conditioned lobby. Around 10:30, veteran VCA salesmen Marty Turkel and Ed Kaile stop by. Marty has returned triumphant from a checkup with the doctor. I introduce myself. They know who I am.

They have a copy of a fax that I sent to the LA TIMES in the Spring of 1997, calling for an investigation of HIV cases in the industry, and the possible presence of organized crime. Somehow a copy of my fax to the Times has been widely distributed around the porn industry. Russ was very angry when he first heard about it. He called my manager. Since then Russ and I have met, and talked on the phone, and I thought we'd smoothed over our differences. I was wrong.

Marty, Ed and I agree that the adult industry has many scumbags but that Russ Hampshire is a good guy. Russ supports many charities. He gives work and hence dignity to many down on their luck. He's loaned money and materials to people so that they have not needed to rely on charity. Russ maybe the biggest financial contributor to the FSC, and I've heard that he pays Jeffrey Douglas' salary. Russ denies this last claim. Hampshire says he accounts for 15-20% of the FSC's funding.

Russ tells Rob Spallone that the FSC has disassociated itself from PAW/AIM. That AIM is completely separate from the FSC. Who then pays Sharon Mitchell and Bill Margold's salary? Who pays the expenses of AIM? Dr. Steven York? Who pays for the rent of the AIM/PAW offices next to Jim South's World Modeling?

Russ says that AIM pays the salaries of AIM employees like Sharon Mitchell and Margold and that Dr. York pays the rent for the AIM offices in Jim South's office building. Blood is drawn on these premises under the license and supervision of Dr. York who provides the flebotomist.

Phone calls from the AIM office, like calls from PAW before it turned into AIM several weeks ago, carry the caller ID of "Free Speech Coalition." But Russ says that PAW and AIM are completely separate from the FSC.

Everything at AIM looks exactly the same as it did two weeks ago when it was run as PAW, formerly funded by the FSC. Since two weeks ago, AIM employees have told me that they can no longer speak to me. I was told, and I inferred from what was said, that the FSC/Douglas was behind this. FSC President Gloria Leonard denies this. Other sources indicate that Jim South has told AIM that he will cancel their lease if they allow me in their office and if they talk with me.

Marty and Ed, known as two of the nicest guys in the business, invite me into their office. Russ Hampshire, while giving Rob a tour of his facilities, finds out. He flips. He storms into the office and throws me out of VCA. He tells Marty and Ed to not speak to me. "Don't you know who this guy is? This is Luke F-rd. He is not allowed in this building."

I try to go into another VCA building and inquire if Jim Holliday is around. Apparently Jim stops by most days. Today he is not in. I talk to someone close to Russ. Russ becomes furious when he finds out and tells me to not write about XYZ. I agree.

Tom Chapman stops by to see production supervisor Stephanie Ross. Tom tells me about a big mainstream project he's working on but I am not allowed to publish the details.

I spot several VCA employees talking outside. I get close to them to try to find the scoop but they scatter and tell Russ.

I sit in the lobby and make notes of who's phoning into VCA. The VCA receptionist (or another VCA employee) tells Russ. I ask a couple of VCA employees questions about how to spell Ed and Marty's last names. Russ finds out.

Marty and Ed come out to the lobby and invite me outside to talk to them. We discuss what a good guy Russ Hampshire is.

They ask me what I think of porn. I say that I am ambivalent, in the middle, I sympathize neither with those who view porn as evil or with those who view porn as a great thing. I think of porn as I do of cigarettes and alcohol - dangerous for some, harmless to those who are disciplined and use it moderately. Ed and Marty agree with me.

Russ comes out with Rob. Russ is truly angry now. He demands that I not report on XYZ… I agree. Rob tells Russ that he should strangle me when I get out of line. Russ says he does not operate like that. Rob told Russ that I misquoted him about f---ing 16-year old girls. Russ upraids me for doing so.

I ask Russ if I can write about him throwing me out of the office. He agrees.

Russ says to me, "You don't like us [pornographers], do you?"

Luke: "I'm ambivalent."

Russ: "Bulls---. You don't like us… You're always looking for a story…to cause trouble."

Russ yells at Marty and Ed for talking to me.

"Why not become known as the nicest guy in the industry," Ed tells Luke at one point.

"AVN already fills that role," Luke says. "I have my own niche."

We kibbitz for a few minutes. Russ Hampshire wants me to fax him stuff before I publish it on my internet site. I agree that I will do more often. I say that I will try to do so with this story. [I fail to fax it to him before I publish as I said that I would do.] Then Rob and I drive away.

Rob tells me as we drive: "The meeting was mainly about you. That I should cut you off… Then we talked about Free Speech. He told me that PAW/AIM was separate from Free Speech. He runs an unbelievable company. He knows everything that's going on.

"I begged you to not come here today. And what happened? As soon as he [Hampshire] saw you, he flipped. I was 100% right that it was a bad idea to bring you. I'm a mind reader.

"You made it so much harder for me today, again…"

Luke: "I don't think Russ likes me anymore."

Rob: "I don't think he ever liked you. He's not too happy with you writing stuff that you don't check up on. But that was nice of you to offer to fax him before you printed.

"You've got f---ing balls. The guy asks you to not come in his office. So then you go next door. He asks you to not talk to people, and you start talking to everybody. You're a sick person, Luke."

It seems that Jim South is leaping and diving in circles because of what I write on my web site. I hear that Jim (upon the suggestion of Russ Hampshire) told AIM/PAW that he would revoke their lease in his building if they talked to me. Jim was supposedly furious with Rob's supposed comment on Wednesday about getting "a 16-year old girl to f--- in the ass, just like they do at World Modeling."

At 1:30PM, Rob buys Luke a vegeburger and fries for lunch, which proves that Ford is in Rob Spallone's pocket.

Gay porn director Paul Barresi stops by to recruit actors for his next extravaganza for US MALE company. Paul plans at least 20 minutes of plot before any sex scenes. He wants to hire good actors, who he will pay $75 each for their labors.

Luke suggests to Paul that he recruit Wayne Crews for the show, as "Wayne loves to take it in the ass."

Paul is horrified. "Please don't talk that way in front of my wife."

Paul has brought in his tiny shy brunette wife who writes children's stories.

Barresi: "I incorporate the straight mentality into the gay genre. That is why my stuff is appealing."

Luke is confused. "What is your personal preference?"

Paul: "I'm married. I'm straight."

Luke: "Didn't you do gay porn?"

Paul: "If you look at the six gay films I did, I never reciprocated. I either did a masturbation which is common. There are marines who come from Oceanside who jack off in movies. You're talking about when I was a kid. I got out of the industry when the AIDS epidemic was strong. I had the common sense to know that you have to be safe. The straight world could learn a lot from the gay world, and start putting on their condoms. And stop rationalizing about their tests."

Luke: "How can you make films effectively for the gay audience if you're straight?"

Paul: "I'm just myself. Everything I do, the things I say, write, feel… I have a lot of passion for what I do… And I incorporate my own feelings into what I do. It appeals to gay and straight…"

Thomas Paine, a huge man who appears to weigh about 350 pounds, stops by. After a lengthy mainstream career that spanned six features films, and hundreds of TV commercials, he entered porn in 1985 with the determination to make the best adult feature ever. Corporate Assets. He believes he succeeded. Since then he's made hundreds of pornos, including about 70 for Spice over the past 18 months. He's married with kids. He does not care to deny rumors that he's had sexual flings with his talent.

Herschel Savage, wearing snake skin boots, a bright shirt, blue Levi jeans, and purple sunglasses, stops by. He's annoyed by my bio of him which says he "is pudgy…with little screen presence." Herschel wants to know if I copied it out of Adam Film World? Much of it.

Herschel has grown more handsome as he has aged, and through working out, he has toned up his body.

Savage proceeds to stick pins in my sloppy web site and sloppy journalism.

At 5:30 PM, I drive away to a home on Lookout Mountain Road, off Laurel Canyon, located in the hills between Los Angeles and the valley. I take a wrong turn and end up on Wonderland Avenue which hosted a murder about two weeks ago. More than ten years ago, 8763 Wonderland Avenue hosted the famous "four on the floor murders" to which John Holmes played an unclear role.

Getting my directions straight, I find the home hosting our Friday evening Sabbath dinner. An hour early, I sit in my car and read my new book - "Porn King - The Autobiography of John C. Holmes." I plough through his chapter on the murders. Then I put the book away and spend a few minutes decompressing from my day and from porn, silently taking off the armor around my psyche to return to my full humanity.

On Sunday, 8/2/98, Rob Spallone flew to New York for two weeks vacation with his wife and two boys.

I talked to Russ Hampshire at one PM, 8/3/98.

Russ: "I called him [Joe Spallone] on Rob's comment about f---ing a 16-year old girl in the ass like they do at Jim South's. We [Rob and Russ] discussed other issues when he [Rob] came into the office.

"I told Joe he should watch what his son has to say because he leaves himself open to a libel suit."

[Russ is exasperated with Luke consistently getting things wrong.]

Luke: "Isn't that what I wrote?"

Russ: "Don't you know what you wrote?"

Luke: "Let me check… I wrote that Rob was called on the carpet for his comments about AIM, FSC…"

Russ: "That's not true. Rob was not called on the carpet for his comments about AIM, FSC… He's entitled to say what he wants about AIM and Free Speech.

"I happen to know Joe for many years. It was a courtesy call. Joe called his son. His son called me and said he'd like to come over to spend 20 minutes talking to me. I said fine. Rob was not "called on the carpet" as you wrote. You got it wrong.

"Free Speech hasn't been a party to AIM for a long time. You didn't bother to call and ask."

Luke: "I printed that AIM claimed it was independent."

Russ: "AIM has been a separate corporation since day one."

Luke: "It's in the same office building as PAW. And PAW was funded by the Free Speech Coalition."

Russ: "Yes, PAW was founded by the FSC."

Luke: "And FUNDED by the FSC."

Russ: "No, they [PAW] raise their own money. It's another area you don't know about."

Luke: "PAW is an offshoot of the FSC."

Russ: "It's not an offshoot. You don't know… You've got to start checking your sources before you write things… You just assume that Rob was called on the carpet for his explosive comments about AIM/FSC. You were 100% wrong. You were 100% wrong. Number two. You said that I called Joe [Spallone] in Sacramento. You were wrong again.

"I called his office at Gourmet. Joe phoned in for his messages and Joe called me. I expressed to Joe that he should talk to his son to watch what he says… The article that you retracted or changed, correct?"

Luke: "Correct, I did add that Rob claimed I misquoted him.

"Now, is it true that AIM/PAW, Sharon Mitchell and Bill Margold do not get any money from the Free Speech Coalition?"

Russ: "Sharon Mitchell does not get paid by the FSC. Their [PAW/AIM] rent was never paid by FSC. PAW has its own checking account. They pay their own bills. Bill Margold is still paid by Free Speech [$1000 a month]. He is not paid by AIM. For years he did not receive a dime from anybody."

Luke: "When PAW/AIM phones, their caller ID says "Free Speech Coalition."

Russ: "Fine, it doesn't mean that they can't pay their own bills. They raise their own money."

Luke: "Is it true that talent have to belong to the FSC to work for VCA?"

Russ: "Correct. Anybody that shoots for me, cameraman, grip or director, must belong to the trade organization we belong to. Since I do a lot of shoots and pay a lot of people a lot of money, I'm entitled to that. If you don't want to belong, then don't shoot for me."

Luke: "Do you fund most or all of Jeffrey Douglas' salary?"

Russ: "No. I contribute X number of dollars per month to the FSC. What they do with my contributions is their business. My contributions amount to 15-20% of FSC's yearly fundraising efforts. I don't fund Jeffrey Douglas directly. I don't fund anyone directly.

"I'm happy to answer your questions truthfully about the FSC, PAW/AIM… I didn't question you about anything else you wrote, did I?"

Luke: "No. How does PAW/AIM get their money?"

Russ: "Bill Margold does fundraisers. They do all kinds of things. Don't you see their ads about Bowlathons and yard sales?"

Luke: "Bill Margold says that when he fundraises for PAW, he gives the money to the FSC who in turn fund PAW."

Russ: "Not true. Most of the money that goes to PAW comes from their own fundraising. I've never seen a check made out to PAW. PAW is a part of Free Speech and it is a separate corporation."

Luke: "AIM has just started. How do they get money to pay Sharon Mitchell, the rent…?"

Russ: "They set up a non-profit corporation and got people to donate to them. And the rent at AIM is not rented through AIM. It's rented through Dr. York. He pays the rent."

Luke: "Who pays for Sharon Mitchell?"

Russ: "She hasn't been paid. Before she was part of AIM, when she was a member of FSC and worked through PAW, and tried to create all the lists and other things to help the talent, Free Speech paid her X number of dollars per hour [$13 an hour]. When AIM was created, she resigned from Free Speech. She is now paid through AIM."

Luke: "Who funds AIM?"

Russ: "A bunch of different people."

Luke: "Have you donated to AIM?"

Russ: "I intend to. I haven't donated yet. I have nothing to do with AIM. I have not seen their books. I don't write their checks…"

Luke: "What kind of a job has PAW/AIM done?"

Russ: "I think, considering the circumstances, they've done an excellent job. Supposedly one girl had a false test. But it wasn't put on MTV. It was unfortunate that MTV walked around like you do, and they have their ears perked up... and they catch conversations, and maybe they don't get all of it, like you do. But they say these things. Just like you wrote. You just walked around VCA trying to get a story. Correct?"

Luke: "Basically."

Russ: "That's you. Unfortunately, this one thing happened [Kristin]. When something comes back positive, it's our responsibility to quarantine the other talent until we get additional tests back to either confirm or deny it [initial positive test]. I would think that would be standard procedure. If you knew that somebody had a test that supposedly came back positive, wouldn't you want to be quarantined, etc?"

Luke: "Yes."

Russ: "That's what it's all about. All AIM and Sharon Mitchell is trying to do is put out the information."

Luke: "Do you think Sharon Mitchell is qualified to run an organization like AIM?"

Russ: "Uhh, she supposedly has all these licenses… Dr. York thinks so. She is licensed. FSC, PAW and AIM do not take blood. Dr. York's people take blood. Did you know that?"

Luke: "Umm…"

Russ: "It's licensed through Dr. York. He rents the offices."

Luke: "What's going down between you and Mike Ross?"

Russ: "Mike Ross is going to be my guest at the dinner dance as my guest [at Russ's table]. He has a good concept about putting together a videotape about lobbying and the inner workings of the government… And I agreed to send him up my people to help him shoot it. I think it's a great tool that can be used throughout the United States. "

Luke: "What kind of job do you think Jeffrey Douglas is doing?"

Russ: "An excellent job."

Luke: "And Gloria Leonard?"

Russ: "An excellent job. She's only been in office three months. She's a versatile, articulate lady who expresses what she feels. She's not a yes-person. She has no problem with making speeches, confronting people and trying to deal with the issues."

Russ plans to attend the World Porn Conference.

At 4PM, Russ and I engage in a truly open, heart to heart 30-minute conversation by phone.

Russ: "I'm the one who told AIM to not talk to you. Keep him out of your f---ing building because he only writes half-truths. You know it and I know it."

Luke: "You're right. I am very lazy."

Russ: "That's my whole point. That's why you have the worst f---ing credibility in the whole world. I'm the one who requested to not allow you there and to not speak to you."

Luke: "I heard that Jim South told them that he would revoke their lease if they allowed me in."

Russ: "I told Jim South. I explained to Jim: 'Why would you allow this man to hang around? Why would you let this man hang out in the halls and listen to half-sentences where he makes up the rest? Do yourself a favor.' He said: 'You're right, Russ.'

"I tell you the truth, Luke. I understand that you have to have a little controversy to get people to your web site. You always have to put your spin on things. You embellish."

Luke: "How's Walter Gernert?"

Russ: "To the best of my knowledge, he's fine."

Luke: "Come on, you talk to him a lot."

Russ: "No. I talked to him last week. I talked to him twice in July. Your information sucks, I don't know where you get it from."

Luke: "You're still doing business with him?"

Russ: "Yes, but I don't need to talk to him to do business with him. He lives in Brazil. He has a large company."

Luke: "What sort of company?"

Russ: "I don't know and I won't tell you. Why do you always have to stir up the s---?"

Luke: "I just want a good story. Walter's a fascinating guy."

Russ: "You know nothing about him. All you know is what you've read and what you've heard."

Luke: "I know a bit."

Russ: "You've never met him."

Luke: "No, I've never met him. But I've talked to Greg Dark [his former partner]. I want the scoop on Walter."

Russ: "You'll get no scoop on Walter."

Luke: "Not from you."

Russ: "Not from anybody."