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VCA VCA is now part of the Larry Flynt Publications empire, but for 20 years, Russell Hampshire presided over the US's biggest production company VCA, which did over $20 million worth of business in 1996. A man with a fiery temper, Russ grew up in reform schools before joining the military. He earned a bronze medal in the infantry in Vietnam. Returning to America he worked assembly line jobs until graduating in 1978 from McDonald's Hamburger University in Chicago. He moved to Los Angeles and applied the McDonalds philosophy to the distribution of videotapes. "Everything I learned about porno, I learned at McDonalds," he told journalist Harris Gaffin. "Everything was timed, little margin for deviation. When I worked at McDonalds, we had a certain temperature for the French fries. We had a precise temperature for the grill for the meat. This is the way it was done - we even measured the Coke by the ounce." Russ told the 10-98 AVN: "What they [McDonald's] teach you - inventory control, things of that nature - you can probably use to run any business. I don't know how many people in the adult business, for instance, know about turning your inventory. But having good cash flow means you turn your inventory over quite a few times. Most businesses turn their inventory over six or seven times a year. We turn ours over 10, 12, 13 times a year. "There's an old saying in the adult industry that people have what they call a 90/10 rule. 90% in the pocket, 10% back in the business. Well, we have the opposite. We believe 90% in the business, 10% in the pocket. "We not only invest in our people, we invest in our premises, our plants, our facilities. We invest in new equipment: state-of-the-art editing equipment, digital cameras and the like." Russ takes pride in VCA's pristine work environment. "You walk into this building, it's just like any other business. And just like any other business, I want to create an atmosphere where people want to come to work, which in turn, creates more productivity, more efficiency." "He runs his business that way, very militant McDonald's style," says Russ's wife Betty. "Some people find it old-fashioned, a little condescending, maybe. But it works." With Walter Gernert in 1978, he shipped videotapes that his boss Chuck Bernstein had pirated. The three were busted in the MIPORN investigation though that didn't stop Russ and Walter from starting in 1978 Video Corporation of America. Hampshire appealed his MIPORN case all the way to the US Supreme Court, and ended up with only a misdemeanor for copyright violation. "I've never made a film in my life," Russ told Adult Video News in 1994. "I don't know which end of the camera to look at, so I hire people that know production." VCA began as a videotape distributor, the biggest according to Hampshire who owned the company with drug dealer Walter Gernert. Four years after the first consumer-model videocassette recorders started filtering into the marketplace, VCA began to buy films and release them to videotape. After escaping from the MIPORN investigation with paltry fines and probation, Hampshire and Gernert shifted into production. VCA's first was Cafe Flesh in 1982. Rinse Dream's movie is about as far out as VCA will go. The company avoids fetish videos. "We aim for a mainstream audience," says Hampshire. In 1984, Tony Lovett (who also directs adult videos) came on board and within a few years took charge of production. "The way production would work is, someone would bring a project to me," explains Lovett, whose email address begins "EXPLOIT." "I would look it over, find out who the director would be, and the stars, and if I thought it was viable, I would bring it to Russell for the final okay on the budget." Walter Gernert sold out his share of VCA in the late '80s, and left the porn industry. When every video production company (save Vivid and Caballero) turned to videos because of the cost of film production, VCA released several feature films per year through 1994. In 1991, VCA, Russ, and several of his employees (including Nolan Quan) were indicted on obscenity charges in Alabama. In the eventual plea bargain, the company paid two million dollars worth of fines, and Hampshire spent a year in prison. His staff received suspended sentences and probation. "His minions carry out his philosophy of the company to a high degree," Lovett told the 12-94 AVN. "He found out when he was away that the mentality of the company is his, imbued in his employees..." VCA sells cable rights to over 85% of its straight products. As of 4-98, its contract girls included Juli Ashton, Stacy Valentine, Kylie Ireland, Nikita and Vicca. "The business today is nowhere near as lucrative as it used to be," Hampshire told the 10-98 AVN. In the early '80s he sold copies of the Marilyn Chambers classic Insatiable for $60 each, whereas now his tapes sell wholesale in the $13-$15 range. Since VCA's brush with the feds, it has toned down its product, much to the dismay of porn fans such as RAME's Imperator. Once a pillar of quality porn, he writes, with the rights to most of the classics and the best directors, including Gregory Dark and John Leslie, VCA has turned bland and pretentious. "It's not just the Sex, Latex and Shock disasters; it's Leslie and Dark's departures, the unending and mind-numbing hype, the plastic, and, most of all, the spineless self-censorship of anything that might be considered remotely offensive. If there's a company that can afford to combat a nuisance obscenity lawsuit, it's VCA... VCA wants to squeeze the last cent out of the fan with minimum risk. They did not withdraw the offensive tapes from circulation after all, they chopped them abruptly and re-released them without any warning on the box." VCA tapes begin with obnoxious messages wrapped in the American flag about fans having a moral obligation to defend their rights to jerk off. "That said, VCA is no Leisure Time rip-off. The technical qualities of its major productions are impeccable. And their latest endeavor, VCA Platinum Plus, gives feature films containing at least six sex scenes and over 100 minutes long, frequently demonstrating some heat. "Juli Ashton is the hottest item in the contemporary sex scene and VCA is wise enough to capitalize on her potential. Every VCA tape gives her fan club information. Work her relentlessly, VCA. Refuse her a moment's rest. I want at least 100 movies out of this incredible creature, and I want them NOW. Gimme, gimme, gimme." (Imperator) Rame moderator Brad Williams: "I think the porn industry would want it on the fringe to avoid prosecution of producers, directors, and performers that aren't usually targeted, and to keep porn as closed as possible. If you get new money and new blood involved, most of the Hirsch-Hampshire crowd would be looking for another line of work. Look at all the changes this decade that have taken dollars out of these guys' pockets: the amateur craze that VCA and Vivid missed by a mile, interracial-theme flicks that are big sellers, and the emergence of Stagliano/Collins E-Empire. Now that Collins and Stagliano are split, the old-guards have two companies that are going to kick their ass in sales. Private is also heavily distributed in America now also. While Hirsch and Hampshire have fiddled, Rome has started falling apart. "…The "old guard" of mediocrity wants to keep you ignorant. As always, "an educated porn consumer is the industry's worst nightmare." I cherish one day in the future when Vivid, VCA, Zane, Leisure Time, etc. are nothing more than bit players. It's already happening now." (RAME) Book Says Russ Tried to Whack Walter A 1998 book alleges that VCA owner Russ Hampshire tried to hire a Mafia hitman to whack his partner of the time Walter Gernert. Hampshire totally denies the story. I quote from page 134 of The Animal in Hollywood: Anthony Fiato's Life in the Mafia by John L. Smith, published 1998 by Barricade Books, New York. Fiato: "After I bailed out Harvey Ross [aka Harvey Rosenthal, long time employee of Russ Hampshire who died of cancer in 1994, thief, assisted in the 1982 murder of actor Frank Christi with pornographers and dupers Alan Betts and Ronald Coe who are associates of Robert Zeichick aka Puggy, criminal, thief, pornographer], he started coming to the club regularly and told me all about the pornographers he knew. Now Harvey's acting like one of my crew… He tells me he's working for a place called the American Video Library for Russ Hampshire, who Harvey says wants to have somebody killed. Russ realized who I [LA mafia enforcer Anthony Fiato] was and knew me by reputation, and he's also good friends with Michael Esposito. Russ knew that Harvey [Rosenthal] was friendly with me, and he [Russ Hampshire] brought up this deal to Harvey that his partner, Walter [Gernert], was throwing away the business by doing so much cocaine. Harvey came back and told me that Russ had told him he wanted to have his partner [Walter Gernert] killed. "So I send Harvey to Radio Shack for a seventy-eight-dollar pocket recorder and arrange a meeting with Russ. I told Harvey, 'Get him [Hampshire] alone again and get him to repeat what he'd said. Harvey goes to the meeting, follows him into the men's room, and asks him if he was really sure he wanted to go through with this. Harvey gets him to say he wants his motherfucking partner dead and is willing to pay Anthony fifty-thousand to do the job. Half up front and half when it's done. We take the half up front. "After Harvey met with him, we made another meet, this time at the Tail O' Pop on La Cienega [Blvd]. Harvey, Puggy, John Di Mittia and I were at the meeting. When Russ walked in I could see the fear on his face. He only expected to be meeting me [Fiato] and Harvey [Rosenthal]. Russ was carrying a briefcase and sat down. He appeared to know everybody at the table. I told Harvey to take out the tape and play it for him. "Russ's eyes almost popped out of his head like a frog. I gave him the tape. I said, 'Here, you're lucky this came to my attention because this motherfucker Harvey was going to blackmail you.' He was so happy, he slid the briefcase over in the booth and handed over twenty-five thousand cash, just like that. We're not going to kill anybody for this guy. And we don't have to. He can't go to the cops. He can't do anything. It was sweet. "When he [Hampshire] left, we just laughed. I'd had Harvey make six copies of that fucking tape. Russ kept paying for two years until finally after the fifth or sixth time he turned his pockets inside out and said, 'All I've got left is lint. Tell Walter, tell the cops. Tell anybody you want. I don't care what you do.' "At that point we'd taken thousands from the guy and we didn't need to hurt anyone." Luke found this story 12/24/98 and immediately phoned Russ at home. Russ completely denied it but asked me to keep it off my site. I said I would hold off running it. I needed to investigate it more. My emails to the author,
Las Vegas Review Journal columnist John Smith, went unreturned. Over the
past six months, I've asked various porners about the Russ - Walter story.
Several said they had heard of it, most said they had not. Russ's friends
did not believe the story and Russ's enemies did. Screenwriter Martin Brimmer penned numerous VCA videos. He feels troubled by the harsher edge of the gonzo trend. "The Matt Zanes, Johnny Toxics, Rob Blacks have no history in this business. They haven't had to endure the legal challenges and subpoenas and scrutiny. They have no appreciation for the Russ Hampshires, Al Goldsteins… People who have done time. "I was one who sat there for a year after Russell went to jail, to review Russ's stock [VCA] in 1993. We had our list of seven deadly sins - coercion aka rape, bestiality, urination, defecation, S-M, underage inferences, violence with sex… If you're doing a Miami Vice rip off about a gun battle in the marina, that's fine so long as people aren't fucking in the middle of it. "I wrote up a report on each film. If there was objectionable content, I made a note of the time code and what the content was. Then the judgement was made within VCA whether that scene should be excised or not. "We were reactionary. There are some films we were too quick to cut... Such as a couple of minutes out of Café Flesh where Max is being dragged out of the cafe to be killed. And there was nothing wrong with that… "But when you start getting back into rape scenarios, urination… You are crossing into the lines that get people in jail. "Just because things are relaxed now… I had to write a flyer for a gay release called FAMILY VALUES. A wonderfully produced and acted film about a young man coming to terms with his homosexuality by learning that his father used to be a gay porn star. So he tracks down his father and sleeps with him. Incest! "The title alone is a red flag… Then they backed it up with incest. I advised the client to not carry the movie, especially in mail order. His response to me: 'This isn't the days of the Meese Commission.' That tells me where these people's minds are at." Luke: "Is your objection that these people could be fined and go to jail, and lose money, or that this material is truly obscene?" Martin: "That's a damn good question. Sometimes, like the Rob Black stuff, anything involving rape, or crossing the lines with religion, I find personally offensive… My main concern most of the time is for the client, that they don't run the risk of going to jail." Luke: "Clinton has been good for pornographers." Martin: "Oh yeah. Check out the Morality in Media home page. They compare the prosecutions under the Reagen-Bush era with the Clinton era. They're trying to draw some correlation between Clinton and the rise of pornography. And they're probably right. "Since February, I've been concerned about the HIV outbreak becoming inevitable. That correlates with where the marketplace is going. I screen anywhere between 40-100 titles a month. When I'm not writing and producing movies, I'm generating advertising copy for Voyages Catalogue Group out of the San Francisco Bay Area, one of the biggest mail order houses. They used to be part of Dechtar Direct which has gone under. Now they are owned by Terry Hess. I screen product for them for compliance and content. "And what I've been witnessing in the gonzo over the past year, has been the desire to get even more hedonistic, animalistic and out there… These horrendously numerical gangbangs… The gaping assholes. The double anal penetrations without condoms. You didn't have to be a physician to figure this out…" 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 fucking 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 shit 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 L-ke Ford. 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 fucking 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: "Bullshit. 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 fucking 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 fuck in the ass, just like they do at World Modeling." I talked to Russ Hampshire at one PM, 8/3/98. Russ: "I called him [Joe Spallone] on Rob's comment about fucking 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 fucking 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 fucking 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 shit?" 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."
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