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Gary Kremen - The loneliest millionaire

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sasquatch

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Consider this tale of love and irony: Gary Kremen,40, is a multi-millionaire. He lives in a 9,000-square-foot house in Rancho Santa Fe, the wealthiest community in the U.S. He's Jewish, has never been married and has no children. He started the website Match.com, the largest online dating service on the web.

The irony? He still can't find a date.

Kremen is so desperate to find a nice Jewish girl that he's offering a reward of $25,000 to the person who sets him up with his future Jewish bride or a woman willing to convert and marry. Even if the relationship doesn't lead to marriage, he's offering a $1,000 donation to a Jewish charity for the person who sets him up with a lady who's willing to go out with him for at least 10 dates.

So what's the catch? You'll have to find someone willing to go out with him. He's a former speed addict who would sometimes work for five days straight without sleep. Kremen kicked the speed habit about 18 months ago, but he's still addicted to his many business ventures. He's a workaholic with multiple phone numbers that don't stop ringing. He is pudgy and balding. His speech is fast-paced and nasally. George Costanza comes to mind, without the glasses and possessing slightly more hair and a much stronger entrepreneurial spirit.

But even George Costanza was loveable in his own way, like an irritable teddy bear. The baby-faced Kremen has a similar appeal. He possesses a combination of computer science genius and business acumen. He can be charming and accommodating.

Ladies: Kremen has lots of potential. Unlike Costanza, Kremen is growing.

A personal trainer visits Kremen's house daily. He practices yoga on an almost daily basis. He's eating healthier and he's even trying to be a nicer boss and businessperson. This is not easy for somebody whose motto could be "Sue Everybody."

Kremen's house is typical for the Rancho Santa Fe Covenant area, gorgeous yet so big you could lose your soul somewhere in its seven bedrooms. In the backdrop of the immense foyer, ripe lemons the size of softballs hang proudly from trees that stand next to a tennis court, a pool adorned with a magnificent fountain, and a hot tub, accoutrements requisite for a neighborhood that's home to the Bancrofts (Wall Street Journal), the late Joan Kroc (McDonald's) and even Bill Gates (a part-time resident).

"They wouldn't let me join the [Rancho Santa Fe] Association," says Kremen. "It took me about eight months of lawyers and official deeds to be able to join the Association." Kremen speculates that the powers-to-be in the Association wouldn't let him join because of his high profile and the nature of his business.

Like a gold-rush maverick of 150 years ago, Kremen gobbled up Internet domain names during the '90s, on the hunch they would soon become valuable virtual property. Two of the names he registered were Match.com and Sex.com. He didn't do much with Sex.com, at least until it was stolen. In October 1995, he realized that Network Solutions, central registrar for all Internet domain names at the time, transferred ownership of Sex.com to a five-time felon, Stephen Michael Cohen. All Cohen had to do to get Sex.com was forge a letter and make a phone call to Network Solutions. He didn't do it by e-mail because, as Cohen said in the letter, Sex.com didn't have e-mail.

After a three-year legal battle that cost Kremen $4.4 million and left him nearly broke, the courts returned Sex.com to Kremen in November 2000. Cohen, who turned Sex.com into a half-million dollar-a-month pornography site, was ordered to pay Kremen $65 million in damages. Cohen didn't pay a cent. He fled the country and remains a fugitive, presumably living in Mexico. (Up until 2001, Kremen was offering a $50,000 reward for his capture.) After Cohen fled, Kremen took what he could. The house in Rancho Santa Fe? That used to be Cohen's.

"I don't feel spooky at all living here," says Kremen. "For a while I slept in the guest house, but now I'm over it."

Kremen doesn't give a grand tour of the house, which is mostly devoid of furniture. "It's a typical frickin' house in Rancho Santa Fe," he laughs. "You don't need the tour." Kremen's office, one of the only decorated rooms in the house, is where his future-bride-to-be will most likely find him.

The wooded walls of his office are adorned with framed articles and his first job-wanted postings for Match.com. He points to a Forbes article written about his success with Match.com and proudly says that, "I'd like to think I've made a great contribution to the planet. I've created more love than anybody else."

Despite his wealth from other Internet ventures, Kremen didn't make a lot of money from Match.com. Even though the company was sold and resold for $50 million, Kremen, according to the San Jose Mercury News, only got $50,000 and a lifetime membership. You can still find his profile - "thefounder" - on the site.

Asked how many millions he's worth, Kremen replies, "It depends on what the value of Sex.com is. Maybe it's worth about five million." Kremen's net worth on paper could be in the high seven figures to low eight figures, considering all his investments and stakes in other companies. (For a list of the companies he's involved with, visit Kremen.com.)

Despite his wealth Kremen doesn't want a trophy wife; he desires a family with a strong Jewish identity, adhering to the religion's values and morals. It's a tough claim when you're CEO of Sex.com but Kremen doesn't see himself as a pornographer. "There's no hardcore imagery on Sex.com," he says. "You won't find any images on Sex.com that you wouldn't see on cable TV."

Sex.com is a directory of online adult entertainment. The images and language on the page are no more graphic than what you'd see on HBO's Real Sex, but hardcore porn is only a click away.

"Hardcore porn is only a click away on AOL," Kremen counters.

Kremen is not addicted to pornography, nor does he seem like a pervert. Although his presence is sometimes required at debauchery-laden adult entertainment industry events, Kremen would rather pontificate on the science behind computer search engines or Israeli-Palestinian relations.

Kremen's Jewish self-realization occurred during his sophomore year of high school, when neo-Nazis planned to march through his hometown of Skokie, Illinois, a heavily Jewish town with literally thousands of Holocaust survivors. The neo-Nazis, with the help of the largely Jewish American Civil Liberties Union, won the right to march but never did hit the streets of Skokie. They held rallies in Chicago instead.

"The Nazi march made me want to learn more about my Jewish identity," Kremen says. "Why are these people against us; what did we do?"

Kremen considers himself a politically conservative Jew. He hates what he calls "Jew-hating Jews," those who would attend a pro-Palestinian, anti-Israeli demonstration. Spending several years in San Francisco, Kremen encountered many liberal Jews. "The Jewish film festivals in San Francisco would make me sick. If I were to donate to a Jewish charity in San Francisco, the money might be used to buy potassium nitrate, which would wind up strapped on a 17-year old suicide bomber." Kremen says he donates to charities every month, such as CAMERA (Committee for Accuracy in Middle East Reporting in America) and ASACP (Adult Sites Against Child Porn).

Living alone, desiring a Jewish soul mate, and endlessly conducting business affairs, Kremen admits he's lonely. "I'm the perfect example of money not buying happiness," he says.

Kremen would actually make a good father and husband. His potential mate would have to be nurturing and patient, enjoy decorating his empty house, and not mind that even though he doesn't produce or sell the content, he still profits from pornography. Any offers?

12/2003

http://www.sdjewishjournal.com/stories/dec03_4.html
 

sasquatch

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On May 19, 1994, Gary Kremen registered with Internet Solutions the most valuable internet domain name Sex.com. Kremen got the name for free and without any official contract. Over a year later, however, he found that the name had been stolen from him by notorious felon Stephen Michael Cohen. Kremen sued to regain the name and eventually prevailed on 11/27/00.

It was a long and bitter struggle for Kremen who went through a string of lawyers until guided to victory by attorney Charles Carreon.

In 1998, Seth Warshavsky (ClubLove.com) and Ron Levi (Cybererotica.com) agreed to help fund Kremen's legal fight to regain the domain name Sex.com. After Warshavsky quickly dropped out of the deal, Levi kept paying to the eventual tune of either $10,000 or $150,000, depending on who you talk to, until he quit in disgust with Kremen's attorney of the time Joel Dichter.

Kremen next gave the case to a female attorney (Katie Deamer) who seemed intimidated by Cohen's crack legal team. She also appeared to be killing Kremen's case, which looked dead until Gary brought on Carreon. Though many, perhaps most, internet pornographers loathe Cohen, many of them did not think his legal team could be beat. They were wrong.

Kremen and Carreon have disputed Carreon's fee for winning the case. Charles says he deserves a piece of sex.com.

Cohen's a close friend of convicted crook Michael Milken. They spent time in jail together in Northern California and they talk on the phone several times a day. Stephen met his invaluable business partner Marshal Zolp, a con artist, at the same correctional facility.

Zolp runs stock scams out of Tijuana. He's wanted by the FBI and federal marshalls. American law enforcement can't get the Mexican authorities to cooperate in the handing over of Zolp. Marshal lives under aliases and the Mexican government is not concerned with American financial crimes.

Cohen got out jail first (in 1995). Zolp (who also uses the names James Powell, Werner Wassler and Frank Williams) did time in a halfway house where he created Sporting Houses Management. Zolp has talked about doing a similar brothel in Costa Rica for the fishing industry.

Cohen, a friend of Las Vegas gambling empressario Steve Wynn, owns all the companies connected to sex.com - YNATA, Sand Man, Ocean Fund International, Omnitech. None of them have real boards of directors and nobody else has ownership interest aside from Cohen. He made up the name Sir William Douglas. He read it somewhere and decided to use it. But the real man was never involved. Sand Man and Ocean Fund etc were established to hide Cohen's ownership of Sex.com.

Cohen has incredible energy. He sleeps little. Very crude but interesting say those who know him well. Marshall, a heavy drinker, is a consummate gentleman but Steve is a vulgarian. Ocean Fund International's much publicized offer to buy Caesars Palace in Las Vegas was a stock play, not a publicity ploy. Cohen owned stock in the corporation expected to buy Caesars, Starwood. He expected the stock in Starwood would plummet based on the news that Caesars was being bought by someone else and then Cohen would buy even more of the company.

From www.redherring.com 2/7/00

"In 1995, Mr. Cohen, who had been recently released from federal prison after serving an abbreviated 46-month sentence for bankruptcy fraud, false statements, and obstruction of justice, began his plan of deception to create his Internet company, according to the lawsuit, filed by an attorney for Gary Kremen.

"According to Mr. Kremen, Network Solutions granted him use of the sex.com domain name in 1994. Such names typically are valid for a two-year period and are renewable every two years at the discretion of the party using the name.

"Mr. Kremen claims that in 1995 Mr. Cohen fradulently wrote a letter to himself using letterhead with the name "Online Classifieds Inc.," the name of Mr. Kremen's business at the time. The letter stated that Mr. Kremen had been dismissed from his position at the company and that he no longer had rights to sex.com. The letter also stated that Mr. Cohen was authorized to take title of the sex.com name.

"At the bottom of the letter was the signature of President "Sharon Dimmick." Mr. Kremen, who still owned Online Classifieds at that time, insists his company never employed a Sharon Dimmick. The letter was sent to Network Solutions.

"In what should have been a red flag, the letter stated that Online Classifieds didn't even have an Internet connection. In other words, such a letter would be like Microsoft (Nasdaq: MSFT) stating that Bill Gates doesn't have Windows on his personal computer.

"In any event, Network Solutions granted the name to Mr. Cohen. Ever since then, Mr. Kremen has been trying to wrestle back the sex.com name."

.............................

I spoke by phone Monday afternoon, 11/4/02, with sex.com owner Gary Kremen.

Gary: "There are some really mean, vindictive people in this industry. It seems that all those people do all day is knock the other people on forums such as Oprano or GFY (go****yourself.com). If there was a legal attack on the industry, everyone's running around like crazed kittens not working together. It's impossible to herd kittens. In other industries, they get cohesive around common external issues. Here there is so fragmented and there are so many past squabbles, it's bad for the common good. This sort of infighting is why the second temple [of the Jewish commonwealth 2000 years ago] fell. Because the Jews were fighting amongst themselves, the Romans to come in and conquered."

Duc: "Do you believe the new VISA regulations as part of a government-directed crackdown on the industry?"

Gary: "Maybe. It's sad if it is. Using a third party with the indirect effect of censoring legal speech is wrong. It's unfortunate that there's not a good unified industry response. It's kittens running around chasing their tails, while the coyotes eat them up and spit them out."

Duc: "What kind of job do you think the Free Speech Coalition does in representing your interests?"

Gary: "I don't think they are set up to focus on this fight - arcane but important payment regulations. They're great on obscenity and closely related issues. Here the industry needs a formal political action committee (PAC). It needs legislative protection rather than legal protection, which is has already thanks to people like the FSC. The FSC doesn't lobby congress or build political coalitions on an issue like Visa regulations.

"I am a founding member of refocused ASACP (Adult Sites Against Child Porn). Everyone wants us to do something about everything. Doing everything in the world would be insane mission creep that would be negative in effect. We should focus on getting rid of child porn. Child porn is illegal as well as immoral. The benefits to the industry in getting rid of it would be to deflect government interference. I think the best thing we could do on an effective level would be boycott any payment processor that have automatic processing for anything that could be used to enable child porn. Without money, most of these sites would be in trouble. This if certain major payment processors [such as ccBill] hypothetically did not check and periodically recheck every web site (by hand) using their services for child porn content or that their customer's site have child porn affiliates (thus receiving traffic from those with unclean hands), those payment processors should be boycotted, with their officers personally sued and jailed. Anyone using such a payment processing services that enables child porn is just as guilty as the processors itself.

"I am worried that tomorrow, Election Day, there might be a change in the balance of power not as favorable to the industry. Thus, the bad apples (whether consciously or not bad apples) should be tossed to keep unwarranted attention away from the law abiding, tax paying pornographer."

Duc: "Do you regard yourself as part of the XXX industry?"

Gary: "Yes, especially if you define the industry broadly. We're in the traffic industry, primarily adult. We don't make content or sell it but we bring qualified customers to those people."

Duc: "Why did you choose to get into the industry rather than rent or sell out the name sex.com?"

Gary: "That's an excellent question. I thought I could make more money. It shows how stupid I am. I think many of the issues that the adult industry faces are interesting. If people focus on these issues in a business manner rather than a crazy way, more money can be made. It's similar to the entertainment industry. When corporations came in, they figured out how to make true money. Paramount Pictures probably doesn't have the same fun that an independent movie producer has. Sad, but true. I'm having fun, at least some of the time."

Duc: "So you don't regret stepping in?"

Gary: "When people I don't even know blast me on forums like Oprano.com, it pisses me off and makes me depressed. I don't even know these people. Who's Hooper? What have I ever done to him? If he did not seem to have such a little dick, I would crush him like a bug, but he is not even worth the time to talk about.

"I feel sorry for Ron Levi. Everyone attacks the guy and it just makes him more defensive - it would make any normal person more defensive. As far as I know, he's a nice guy. (A long time ago, he and Seth sued me over sex.com). He keeps people such as Lee Noga and Kaiser motivated - he clearly recognized the value in people. The boards make him out to be a SOB. As far as I know, Ron's a good father, caring for his children greatly, a good employer and contributes to the community. He doesn't date flashy women. He's dating somebody nice, not a porn star like others.

"If we were making tefillin [Jewish religious articles], this would not happen to us. Would you go on a tefillin online board and talk about other people in the tefillin industry? Say that their girlfriends are fat and losers? They don't do that. That's so dysfunctional. We need industry therapy as much as we need a political action group [PAC]. We could use is a mass SWAT invasion of therapists, psychiatrists and psychologists; I volunteer to be the first analyzed."

Duc: "So are you dating the world's most beautiful women?"

Gary: "No, I'm not even getting ANY dates. As you know, I started Match.Com, the worlds largest dating service. I want a nice Jewish girl and I'm not finding any. I haven't found one nice Jewish girl in the entire industry. If you know one, ICQ me immediately."

Duc: "What role did Serge play in getting sex.com back to you?

Gary: "Serge was one of the first people who told me about a lot of Cohen's antics, his strategies and tactics. I'm going to see Serge and Sue this weekend in Oregon. He's been supportive, to the extent that Serge is supportive of anyone. He might rip me to shreds on the boards tomorrow. He has his opinions on people. Serge is very smart."

Duc: "What's going on with sex.com?"

Gary: "People are getting disgusted with certain weaknesses in the affiliate model. Many people think they're being shaved [not paid for all their traffic and signups]. A lot of people would rather be paid on a per-click basis than any other basis. People would rather buy traffic from us at fixed prices, with a cost, on average, of $10 per signup. We currently have 1347 customers.

"We break up traffic by country. If you are a US webmaster in an affiliate program, traffic from France doesn't help you because you can't convert it or usually get paid for it. Scams have been going on for years where people send traffic that is not convertible. If you want midget traffic from France, we can give you midget traffic from France seeking midget porn."

Duc: "When did you take over the operation of sex.com?"

Gary: "I got it back in October of 2001. I was working with SE Guru aka Daron Babbin. He moved on last October to New Frontier (NOOF). I hear he is doing a very good job there."

Duc: "How do you plan to develop sex.com?"

Gary: "We plan to add an entertainment aspect to it but we won't be selling content or creating content. We're good at convincing the mainstream to work with the adult. Peiple can create content or sell it 10,000 times better than me."

Duc: "You bridge between mainstream search engines and sex traffic?"

Gary: "Do you think mainstream search engines like Google want to have their sales force go call on facials sites? They worry about getting sued for hostile work environments, sexual harassment, etc.. They'd rather deal with adult site directly as little as possible while at the same time getting the money from the industry. It's better for them when they have an outside source they can trust to deal. We specialize in screening out the child porn, bestiality, scat, or rape sites - the illegal or immoral sites. We don't want to make money off that. Mainstream search engines don't want to either."

Duc: "How many books are in the works on you and the sex.com case?"

Gary: "Several. Most are independent journalists like you. About nine months ago, Sheri Singer Productions approached me about doing a TV movie on sex.com and the adult industry in general. I signed a deal with them in late September. They've hired a writer. Sheri Singer worked with Norman Lear and was the executive producer of the Phil Donahue show."

Kremen has received write-ups in numerous newspapers. Here is a sample:

Newsday 3/5/95

"Electronic cash will let the Internet take over TV," David Chaum, managing director of DigiCash, told a reporter. "Quote me."

Another gushing man crammed a card into Chaum's hand with the name of a San Francisco company that did not exist a year ago. It had to happen, he explained, because the whole world will need what he has to offer very, very soon.

"Classified online - it's the future," said Gary Kremen, president of Match.com. "It makes sense. Doesn't it?"

Atlanta Journal and Constitution 12/6/98:

Kevin Sinclair, who lives in a Silicon Valley suburb, is the lucky owner of http://www.computer.com, presumably one of the most valuable domain names on the World Wide Web. And now he wants to sell it for at least $500,000. So far the highest bidder has offered $300,000.

His associate representing him, Gary Kremen, insists Sinclair is not a speculator but that he planned to start an online computer store when he acquired the name in 1994. He quickly realized he did not have a shot in such a competitive market, even with the right address. So he left the working world to stay home with his children.

Kremen may be just the right guy to help him make a deal: Kremen was involved in the negotiations between Digital Equipment Corp. and Jack Marshall, who until earlier this year owned the address www.altavista.com. Digital, which owns the AltaVista search engine, paid Marshall $3 million to give the name up, reportedly the largest amount ever paid for a domain name.

San Jose Mercury News 2/9/99:

And often they fear ruining their maverick reputation. Such fear is keeping Gary Kremen, 35, from launching his fourth company, at least for now. "When you start a company, everyone knows it," he says. "It's made me a little bit gun-shy. It's a type of performance anxiety."

Among his ventures was the Web-based dating service Match.com, which was sold to Cendant Corp. for about $7 million in 1997. Currently, the San Francisco resident is advising several existing businesses, including one that puts advertising on golf driving ranges. What he calls his "risk profile" -- his tolerance for risk -- is "temporarily lower."

..............

British Documentary About Sex.com Scandal

7/24/04

I've just watched a one-hour documentary about the Gary Kremen - Stephen Michael Cohen struggle over the domain name sex.com made by the British television production company called Making Time for UK's Channel 5 network.

A young Gary Kremen (rightful owner of sex.com) with his parents Gary Kremen Luke Gary Jones, Orange County Sheriff's Department Sharon Boydston, an ex-wife of Cohen Kevin Blatt, Jonathan Silverstein Tom Hymes of AVN Online Luke Kremen Lawyer Jim Wagstaffe Ron Levi

There's enough Jews in the special to make a minyan: Stephen Michael Cohen, Gary Kremen, Luke, Kevin Blatt, Jonathan Silverstein, Ron Levi, Seth Warshavsky.

I remember producer Toby Dye and his cameraman stopping by my hovel December 10. I find Brits particularly charming and funny.

This tabloid is particularly tabloid and British in tone. Those wild and crazy Americans. About a third of the screen time is taken up by softcore footage of beautiful naked young women.

There's not much new ground that's broken here and there's one segment devoted to a reconstruction of a shoot-out in Mexico that probably never happened.

"I had the most valuable domain name on the Internet," says Gary at the beginning, sitting on the bed of a pickup truck next to a shack. "I should've made hundreds of millions of dollars. And this is what I ended up with."

He spreads his arms wide.

"It was impossible not to make money," says Tom Hymes about the early days of the porn Web (1996-97), "no matter how stupid and inept you were."

"It was a battle for a multi-million dollar business," intones the narrator, "that would end with a high-noon shootout in Mexico."

Baloney. This shootout never happened. It just makes for a dramatic climax.

Gary Kremen was born in 1960s Chicago to respectable middle-class Jewish parents. "His love was for the hard-drive, not the hardcore. In May 1994, he acquired sex.com (along with jobs.com, date.com, autos.com, housing.com, property.com), the most valuable domain name on the Web."

"Cohen is a criminal genius," says Gary.

"Cohen's a con man, a crook," says Luke. "He's always been a crook. He'll probably always be a crook. It's breathtaking when you encounter someone who can lie with such audacity."

"He has the lying skills unique to conmen," says Gary Kremen's lawyer Jim Wagstaffe.

"He's a megalomaniac and a sociopath," says Kremen's PI.

"Never any guilt," says Sharon Boydston, one of Cohen's five ex-wives. They married in 1987.

In 1987, Cohen started up a swing club in north Orange County (called The Club) and a BBS (Bulletin Board Service, a precursor to the WWW) The French Connection.

"He started it in my daughter's bedroom," says Sharon. "He would sit there and type in different names and be different people. Always women. He was trying to attract men customers.

"When I was married to him, I asked him, why does everything you do have to do with sex? He said, because sex sells.

"I'm sitting at home wondering what could be taking this man's time so much. Finally I find out he's been swinging.

"He wanted to be Hugh Hefner. When the guys arrested him at his swing club, they had to laugh because he came out in his robe and his pipe and he was trying to be the Hugh Hefner of swinging. He just made them roar with laughter."

Cohen then moved on to new scams. He impersonated a lawyer in an elaborate loan fraud. He got four years in federal prison.

"While he was in prison," says Luke, "he thought, I'm going to figure out how I can avoid coming back here and how I can make a lot of money and be a big success and sleep with a lot of beautiful women. This is a guy who's devoted himself to banging babes."

"In the old days," says Kevin Blatt, "you had to go to jack shacks, where truck drivers and the guys with no teeth would pay five dollars for five minutes to whack off in a booth. Sometimes they would share a movie with some derelict. Now, with the advent of the Internet, you're sitting in the privacy of your own home with your pants around your ankles and there's nobody to say, hey, what are you doing? This is what's brilliant about the Internet. You turn off the lights. You turn on your computer. You pull your pants down. It's a great formula."

"It took three years in federal prison," says the narrator, "for Stephen Michael Cohen to hatch the greatest Internet scam of all time."

"I knew that when he when he went into federal prison," says Sharon, "God help us, because he was going to pick the minds of everybody there. If there was anybody he could learn something from, he would learn it."

Kieren McCarthy, journalist: "Just months after getting out of prison, Cohen managed to get his hands on the world's most valuable domain name. He was turning that into a multi-million pound business right under the nose of Gary Kremen, who did not even know it had been stolen."

Kremen lawyer Charles Carreon: "A friend called him up and said, I thought you owned sex.com. You ought to check the Whois registration record, because it is registered to Sporting Houses."

Gary: "I'd never dealt with any criminals or confidence men. I didn't expect any bad play. I expected the company made a mistake."

To get sex.com, Stephen Michael Cohen wrote a letter from a third party to another third party, giving Networld Solutions permission to transfer the domain name to Cohen. There were over 20 typos in the letters. The word "Ads" was misspelled in the letterhead as "Ad's."

The letter says the reason Cohen is entitled to this name is that he has been using "sex.com" on his BBS since 1979. Cohen told me this several times. Problem -- the dot com nomenclature did not begin until 1984. Network Solutions should have known that.

A simple phone call to Gary Kremen would've revealed that letter as a phony.

"He [Cohen] was an IQ of a genius," says Sharon, "yet the insecurities of not being able to spell were profound for him."

But Cohen was a genius on the telephone, and that's how he persuaded Network Solutions to give him the domain name.

"Stephen Michael Cohen used sex.com as a banner farm," says Luke. "He just plastered it with banner ads for other hardcore porn paysites. He didn't have any pretense to doing anything but slutty dirty lowdown site that made tens of millions of dollars."

The documentary claims that Cohen had become one of the top three Internet porn kings along with Seth Warshavsky of Clublove.com and Ron Levi.

That is nonsense. Neither Cohen nor Warshavsky were ever in the top ten of the industry. Yishai Habari, Serge Birbrair, the folks running Crescent, John Bennett, Joseph Elkind, Richard and Robert Botto were all bigger players than Cohen or Warshavsky would ever be.

"Seth Warshavsky had so many scams," says Luke, "it was hard to keep track of them. Once he would get people's credit card numbers, good night. He'd charge those things up the yazoo. He'd claim to have live cam girl feeds when he was just looping old feeds."

It's funny to see Jonathan Silverstein and Kevin Blatt sitting together on a railing and Kevin looking around and scratching himself while Jonathan is talking. KB wears a white sweat suit and sunglasses and a fu manchu style beard and moustache. JStyles has a piercing in his eyebrow and an earring.

There's a bottle of Jack Daniels off camera. KB and JStyle started drinking halfway through the interview.

Cohen was charging $50,000 a month for each tiny banner ad. Cohen used his money to keep Kremen's lawyers at bay.

Gary: "Stephen Michael Cohen did not have many friends in the industry. You could count them on one hand. You could count his enemies on 50 hands."

Jonathan: "Cohen was a litigious prick. He was suing everybody who had 'sex' in their domain."

Kieren McCarthy, journalist: "In 1998, Seth Warshavsky and Ron Levi gave Gary $150,000 for his legal fight against Cohen."

I believe this number is wildly exaggereated. Warshavsky didn't give Gary anything. Ron gave him somewhere between $10,000 to $50,000 (according to various reports).

Jim Wagstaffe: "Stephen Cohen was beating Gary in the litigation game by using the very money he stole from Gary."

In July 2000, Cohen was forced to do a deposition.

"We had to cross a gulf in the law," says lawyer Charles Carreon. "At that time, there was no law about domain names."

"We had to convince the judge," says Wagstaffe, "that this was more than two guys fighting over an adult domain name."

Kieren: "To most people in the courtroom, it was just a sleazy affair between two sex-obsessed pornographers."

Cohen was forced to produce his bank records. He had his bank fax them to a kinkos where Kremen's lawyer were supposed to pick them up. But Gary impersonated one of Kremen's lawyers and took out the stuff he didn't want revealed. Unfortunately for Cohen, a Kinkos security camera captured him in the act.

"When we caught him on tape stealing evidence," says Gary, "the judge became livid."

In March 2001, Gary returned to San Francisco to launch his version of the Web site.

"Kim Wilde is our resident porn star," says Gary. "Every company in the industry should have a resident porn star."

Does that mean everyone in the company gets to f--- her?

"Gary's girlfriends and the women around him," says a Kremen employee, "he needs intellectuals around him."

Cut to pictures of Wilde getting nasty to Gary's approval. He spanks her.

"Gary views Stephen Cohen as a criminal mastermind. He respects Mr. Cohen, which I don't understand."

"I'm not into pornography," says Gary. "All I do is have a dictionary up there.

"When Cohen had sex.com, it was much more valuable than when I got it."

At Kremen's party, a guy puts his arm around Gary and says to the camera, "It's all about rock n' roll, call girls, and having a good time."

"I wouldn't go that far," says Gary, slipping out of his grasp and away from the camera.

"He's not in the adult online industry," says Silverstein, "in his mind. He believes he's in the search engine business."

Gary's PI: "Cohen has a narcissistic personality. He's a megalomaniac and a sociopath. He only cares about himself. He has a superiority complex. He thinks he's smarter than everyone else. I think he thinks he's untouchable and that will be his fatal flaw."

Gary: "He's defeated such people as five ex-wives, many gambling casinos, fraud, child support..."

Several years ago, Kremen sent Cohen a check under a different name, to a house in Mexico his private investigators suspected Cohen used, in hopes Cohen would cash it and surrender personal information. But Cohen didn't fall for the trick. Kremen says he returned the check in the mail with a note saying "Nice try" with an inflatable doll. Kremen still has the doll.

Kremen's quest

Were he not a successful entrepreneur, Gary Kremen might jump off the pages of a comic book. The Chicago native crackles with pinball-machine energy.

The self-described workaholic was forced out of Match.com, the popular online dating service he co-founded, when he objected to selling it for $7 million to consumer-services company Cendant in 1997. (Kremen's instincts were right: Cendant quickly hawked Match.com to Ticketmaster Online-CitySearch for $50 million.)

"Gary is good as anyone — including the Google guys — at Internet marketing," says Ron Posner, a longtime venture capitalist who helped fund Match.com.

Despite his legal odyssey to regain Sex.com — which he says cost him $4.5 million in legal fees — Kremen isn't crying poor. Last year, VeriSign, the Internet address keeper that acquired NSI, paid Kremen a settlement stemming from a 1998 lawsuit filed by Kremen. As part of the 2001 court ruling, Kremen received an 8,900-square-foot mansion near San Diego that was once owned by Cohen.

"I've done OK," says Kremen, who says he rakes in $8 million a year in advertising revenue from Sex.com, a hub of adult-entertainment Web sites offering products and services.

But, like Cohen, Kremen says he doesn't like porn and finds it dull. "It's just another commodity," he says. Given his druthers, he would rather be an investor. Like Cohen, he pines for success in another profession.

http://www.usatoday.com/tech/techinvestor/industry/2005-03-31-sexcom_x.htm
 

mike031

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man.. that is a whole lot of reading... i managed to get through it though.... very intresting :eek:k:
 

Poker

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Interesting Capp...
 

MediaHound

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great info thanks for the posts, Cap
 

DNGeeks

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A good read, interesting, long, and informative
 

Jack Gordon

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hey... I went to high school in Skokie...
 

ceo

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Beautiful article there ! Great reading...
 

VisualDigits

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interesting article, didn't read the whole thing though :p
 

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This guy's problem is so painfully obvious:

1. $25,000 to the person who sets him up with his future Jewish bride or a woman willing to convert and marry. Even if the relationship doesn't lead to marriage, he's offering a $1,000

2. Kremen was offering a $50,000 reward for his capture (Cohen's)

This guy is a cheap cheap muther ****er .. 9000 foot house .. multi-millionaire.. yet I could open my walet wider than that.

I bet 50 G's he's single in a five years :) ROFL
 

jazzpetals

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Heck, I'd maybe date him but I think he'd dump me when he found out my last name was Cohen


Chaiki said:
This guy's problem is so painfully obvious:

1. $25,000 to the person who sets him up with his future Jewish bride or a woman willing to convert and marry. Even if the relationship doesn't lead to marriage, he's offering a $1,000

2. Kremen was offering a $50,000 reward for his capture (Cohen's)

This guy is a cheap cheap muther ****er .. 9000 foot house .. multi-millionaire.. yet I could open my walet wider than that.

I bet 50 G's he's single in a five years :) ROFL
 

SFSun

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Who would think the founder of Match.com can't even find a date for himself.
 

draqon

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a jewish multimillionaire cant find a nice jewish girl to marry? what sort of bizarre alternative universe are we living in. just on the east coast alone there are approximately 27 million jewish american princesses just waiting for a knight in shining .999 troy silver armor to sweep them off their feet.
 

JuniperPark

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In the early 90's, I ran one of the most successful singles BBSes in the country, and had several articles in the LA Times and TV shows about my system.

This guy (subject of this story) called me up one day and told me he was starting Match.com, and wanted me to advertise for him on my system. Obviously, he was a competitor, so I asked if he wanted to PURCHASE advertising; he said no. I asked if he wanted to TRADE ads: no. He just wanted me to giev him my customers, period. I laughed at him and hung up.

If he's as much of an idiot in dating as we is at business, this explains why he is single. Match.com has never been a great system, but it was in the right place at the right time. Funny that he now lives in Ranch Santa Fe, about 15 minutes' drive from me!
 

mike031

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who cares about his personal life.... either way, got to give him props for his baby -- match.com it's a great site
 

peekaboo

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"The self-described workaholic was forced out of Match.com, the popular online dating service he co-founded, when he objected to selling it for $7 million to consumer-services company Cendant in 1997. (Kremen's instincts were right: Cendant quickly hawked Match.com to Ticketmaster Online-CitySearch for $50 million.)

Despite his wealth from other Internet ventures, Kremen didn't make a lot of money from Match.com. Even though the company was sold and resold for $50 million, Kremen, according to the San Jose Mercury News, only got $50,000 and a lifetime membership. You can still find his profile - "thefounder" - on the site."


how is it that he got only 50k out of it? and how is it that he was forced 'out'?

i guess stanford mba didn't help him much?...lol
 

Steen

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mike031 said:
got to give him props -- match.com it's a great site
He doesn't own it.
 
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