E com was charged for tax evasion! The whole mess began with a few underage girls getting busted. They told LE about ecom... LE could NOT shut Ecom down for prostitution related charges however, they did turn it over to federal investigators who found that ecom broke several laws in regard to revenue.
1. They did NOT pay taxes... Enter IRS agents crawling all over ecom.
2. ecom used credit cards as a means of age verification on accounts. (among other things) The problem there? It is illegal to accept said information without charging the card! If they had simply charged $1.00 to the cards they had in their database...they would not have had that particular problem.
3. Sites like ecom are NOT illegal in the US. They are however, subject to the same laws which govern ALL adult based websites. As well as Business and revenue laws. (laws they clearly broke)
The 2 sure things in life are: Taxes and Death! They did not pay their taxes hence the death of their business.
ecom settled out of court on Tax evasion, revenue and fraudulent business practice related charges.
That is the inside scoop that I got.