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<br /> . <br /> I <br /> ~ 2<.J/S"u I <br /> - Extent of Orqanized Crime Involvement in Pornoqraphy (1978). Sturman, who .. <br /> 1;1 reportedly controls half of the $8 billion United States pornography industry, was <br /> recently indicted by a federal grand jury in Las Vegas for racketeering violations and by . <br /> a federal grand jury. in Cleveland for income tax evasion and tax fraud. Newsweek, <br /> , August 8, 1988, p. 3. I <br /> Evidence of the vulnerability of sexually oriented businesses to organized crime I <br /> involvement underscores the importance of criminal prosecution of these businesses <br /> when they engage in illegal activities, including distribution of obscenity and support of <br /> prostitution. Prosecution can increase the risk and reduce the profrt margin of I <br /> conducting illegal activities. It may also disclose organized crime association with local <br /> pornography businesses and increase the costs of criminal enterprise in Minnesota. I <br /> In addition to prosecution, forfeiture of property used in the illegal activities related I <br /> to sexuallyo[iented businesses can cut deeply into profits. Regulation to permit license <br /> revocation for conviction of subsequent crimes may also expose and increase control <br /> over criminal enterprises related to sexually oriented businesses. e. <br /> PROSECUTORIAL AND REGULATORY ALTERNATIVES I <br /> The regulation of many sexually oriented businesses, like other businesses dealing . <br /> in activity with an expressive component, is circumscribed by the First Amendment of <br /> the United States Constitution.~1 Nonetheless, the First Amendment does not impose I <br /> a barrier to the prosecution of obscenity, which is not protected by the First <br /> Amendment, or to reasonable regulation of sexually oriented businesses if the I <br /> ~I The First Amendment provides: . <br /> Congress shall make no law respecting an establishment of <br /> religion, or prohibiting the free exercise thereof; or abridging the I <br /> freedom of speech, or of the press, or the right of the people peaceably <br /> to assemble, or to petition the govemment for a redress of grievances. <br /> . The constitutional guarantee of freedom of speech, often the basis for challenges to I <br /> AI regulation of sexually oriented businesses, restricts state as well as federal actions. <br /> See, ~, Fiske v. Kansas, 274 U.S. 380, 47 S. Ct. 655 (1927). .1 <br /> i <br /> -20- . <br /> m <br />