Posted 6/14/2004 3:45 PM

Ex-DEN executive admits transporting minors for sex
TRENTON, N.J. (AP) — The former chairman of a Web-casting company has admitted luring five minors across state lines so he could have sex with them.

Marc Collins-Rector, who has been in custody since his capture in Spain two years ago, pleaded guilty here Thursday to charges brought by federal prosecutors in California and New Jersey.

Collins-Rector founded Digital Entertainment Network, which created video-based sites targeting 14- to 24-year-olds. Executives planned a $75 million stock offering, but Collins-Rector his partners resigned after accusations of sexual abuse became known, and the company collapsed in 2000.

Collins-Rector, 44, remains held without bail pending sentencing Sept. 9 by U.S. District Judge Mary L. Cooper.

Each of the charges carries up to 10 years in prison, but sentencing guidelines call for less than three years. Collins-Rector faces just several months because of credit for time served, public defender David Schafer told the Los Angeles Times.

Schafer did not immediately return a call seeking comment Monday.

Collins-Rector settled a five-count federal indictment from New Jersey by pleading to one charge, transporting "J.W." from New Jersey to California, Michigan and elsewhere to engage in illegal sex from 1993 to 1997.

Collins-Rector also pleaded guilty to eight charges stemming from a 21-count California federal indictment. Those eight charges deal with transporting four minors for sex: "R.G." and "J.T." from Michigan to California in the mid-1990s, "B.L." from Minnesota to California in 1997, and "D.S." from California to Arizona in 1999.

Collins-Rector, whose last known U.S. address was in Encino, Calif., was captured in May 2002 at the Spanish resort town of Marbella.

Federal authorities had been searching for him since August 2000, when he was indicted by a federal grand jury in Newark. He was extradited Oct. 24, 2003.

Several teens who worked for Collins-Rector later filed lawsuits alleging sexual abuse, claiming they were lured to his Encino mansion only to encounter drugs, threats and sexual abuse.

Collins-Rector settled a lawsuit filed in New Jersey in 1999 with no admission of guilt. A similar lawsuit was filed in California by at least three other victims who won a $4 million default judgment when he did not respond.

Collins-Rector and Chad Shackley made millions when they formed Concentrics, an Internet service provider, in Michigan in the early 1990s. They sold it in 1995 and then formed DEN.

Shackley and Brock Pierce, Collins-Rector's business partners and housemates, had also been held in Spain, but authorities had no immediate information on their status.


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