2The Tar Heel Thursday, June 5, 1986
Fate of Adam i& E ve to toe decided toy Gramid Jury
By SCOTT GREIG
City editor
Federal grand jurors will convene
in Raleigh June 1 7 to consider
evidence seized from an Orange
County mail-order firm that sells
sexually oriented material.
Robert M. Hazelwood 111. postal
inspector in charge of the Charlotte
division, said the grand jury would
decide whether or not to issue
indictments based on the testimony
of federal, state and local law
enforcement officials involved in the
raid of PHE Inc., which also operates
under the name of Adam & Eve.
According to a search warrant
obtained by State Bureau of Inves
tigation agent David Hedgecock, the
raid ended a six-month investigation
of the company that was begun when
Pasquotank County sheriffs deputy
Ken Kuykendall was mailed a PHE
catalog that offered sexually oriented
movies and paraphernalia.
The warrant was served last Thurs
day when 30 officers surrounded the
PHE building, which is located on
N.C. 54 about six miles west of
Carrboro.
Officials from the U.S. Postal
Inspection Service, the SBI, and
Alamance and Orange sheriffs'
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departments took part in the raid that
saw 125 PHE employees questioned,
photographed and ordered to tesify
before the grand jury.
Charles Dunn, deputy director of
the SBI, said the investigation was
carried out by a newly formed federal
and state pornographic task force.
"Based on the six-month investi
gation, this company is a major mail
order distributor of sexually explicit
material, which we believe is obs
cene." Dunn said. "The search was
for documents and other evidence to
determine who should be indicted for
producing these video cassettes and
magazines."
U.S. Attorney Sam Currin said
evidence seized could be used by local
district attorneys to seek indictments
under the state's new obscenity law.
"We're investigating alleged viola
tions of both the federal and state
obscenity laws," Currin said. "I don't
want to make any comment on what
we feel Adam & Eve is or. is not
involved in."
Currin said over the past five years
his office has literally received
hundreds of complaints from all over
the country about the solicitations
they have received from Adam &
Eve.
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"We've probably gotten more
complaints about Adam & Eve than
any other matter we Ye dealt with,"
Currin said.
Hedgecock said the all-day search
of the company's headquarters indi
cated that the suspected obscenity
was produced outside of North
Carolina. He said agents think the
orders were received at outlying sites
and later brought to the Orange
County plant to be filled and mailed.
The state warrant gave officers
permission to confiscate:
Six video cassettes or magazines
with names like "The Sex Goddess"
and "The Ultimate O."
Records beginning on Oct. I
about the origination and dissemina
tion of the items, catalogs and
brochures listing the items for sale
or distribution, and records of people
receiving them for redistribution in
North Carolina.
Records of sales to Kuykendall
or David Hunt, a psuedonym used
by Hedgecock to order material from
the company.
The names and job descriptions
of anyone "directly involved in the
transfer" of material to Kuykendall
or Hunt, and of "officials of the
corporation down to and including
the persons responsible for the day-to-day
operation of Adam & Eve
Videomail, including department
managers and especially marketing
and advertising departments."
Internal memos or corporate
minutes that address how the new
obscenity law would affect PHE and
THE GOLD
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10-7 Friday 30 Day Layaway
12-7 Saturday Jack Tomkoyik, Owner
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Next to Johnny T-Shirt
its subsidiaries in its sale of the
suspected items. It exempted docu
ments "on a lawyer's stationary, etc."
Records of bank deposits and
money transfers involving David
Hunt or Kuykendall, showing how
the money was accounted for and
transferred from Adam & Eve and
Videomail to PHE.
Hedgecock told Superior Court
Judge Anthony M. Brannon of
Durham that Kuykendall received
the unsolicited catalog from Video--mail.
Kuykendall then forwarded the
solicitation to the Pasquotank
County district attorney, who for
warded it to Alamance County
officials.
As part of the investigation, which
was begun in October, Hedgecock
ordered four video cassettes from the
company. He paid for them by
drawing $280.96 from the SBI's
. Special Funds account.
With the movies, Hedgecock said
he received free pornographic paper
backs, magazines and paraphernalia.
Working with agents of the Alam
ance City-County vice squad, Hedge
cock traced telephone numbers and
post office boxes to PHE President
Phillip Harvey and executives Frank
Broome and Skip Loy.
Randall Roden, a Raleigh lawyer,
released a statement that said PHE
officials have always cooperated fully
with law enforcement agencies in the
past.
"This business has always operated
openly and above board and has
made a special effort to be a good
ECT
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citizen of the community," the
statement said. "We have always tried
to cooperate with the authorities at
all levels and have had close consul
tations with our local law enforce
ment officials. We are disappointed
to find that our willingness to comply
with government requests has appar
ently been overlooked."
PHE's statement said the materials
and records confiscated "could have
been obtained in a far less costly and
- disruptive manner," but pledged to
"do our best to operate our business
in conformity with the law ..."
PHE officials added that if a
simple request had been made for the
materials and records by the agents,
they would have been voluntarily
turned over to the proper authorities.
The statement also said PHE
would refuse further comment on the
advice of its attorneys.
Policeman
arrested
From Associated Press reports
FAYETTEVILLE A Fayette
ville police officer was charged with
possession with intent to sell or
distribute cocaine and distribution of
the drug following his arrest in
Raleigh.
Tyrone McLaurin, 34, a member
of the department since February
1980, was placed in the Wake County
Jail under $5,000 cash bond after his
arrest Sunday.
Cuyler Windham, assistant direc
tor of the State Bureau of Investi
gation, said Monday the arrest took
place in a Raleigh motel by an
undercover agent assigned to the SBI
Drug Enforcement Division.
McLaurin had been transferred to
the police department's Service
Division on May 27 and was assigned
to the City-County Bureau of
Narcotics.
Windham said McLaurin was
under close supervision by police in
Fayetteville from the time of the
transfer until his arrest and was not
in a position to obtain any drugs.
Fayetteville Police Chief Ron
Hansen said he was notified of the
arrest by telephone at about 1 a.m.
Sunday and McLaurin was imme
diately placed on suspension without
pay.
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