FriendFinder’s Latest Scandal Sexier Than a Penthouse Letter

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FriendFinder’s Latest Scandal Sexier Than a Penthouse Letter

A porn star draping boobs over a member of staff’s mind. Lapdances regarding the ongoing business dime. $50 million in straight back taxes. These are merely a number of the fees Penthouse publisher FriendFinder Networks is dealing with from an ex-employee.

Natalie Cedeno, the business’s former HR director, says that ongoing company professionals retaliated against her for pointing away violations of work legislation. She ended up being an executive that is top the net region of the company, profoundly associated with its operations for eight years, before FriendFinder fired her without cause in January, she claims. She claims the organization then attempted to withhold the two many years of pay she had been owed under her contract unless she decided to remain quiet about FriendFinder’s misdeeds a move her attorney characterizes as «extortion.» Cedeno intends to register complaints with all the Equal Employment chance Commission and California’s Department of Fair Employment and Housing month that is next.

And a complaint that is juicy would be. FriendFinder Networks was previously called Penthouse Media Group before it acquired Inc. this is certainly various operator of Adult FriendFinder and other online personals internet web web sites, in 2007 for $500 million. The office cultures of Florida-based Penthouse and Silicon Valley-based Various Inc while they’re both porn companies. where Cedeno worked prior to the merger could not were more various. That became apparent may 2, 2008, if the ex-Penthouse professionals, now responsible for the combined company, made a decision to deliver in a passel of Penthouse Pets towards the old different workplaces.

Whenever administration announced that the venerable magazine that is porn stable of nude models could be stopping by the workplace to serve ice cream, one feminine worker objected, as Cedeno informs the storyline. Once they arrived, among the scantily clad Pets produced beeline for the dissenter. «They arrived to her workplace and put her breasts on the mind so as to humiliate her, and additionally they had somebody willing to simply just just take images,» Cedeno claims. The employee stop right after the event.

The night before Cedeno had been ended month that is last she states she mentioned at a gathering of professionals a worker that has charged 1000s of dollars in lapdances towards the business a cost the business’s pre-Penthouse administration would not have tolerated. «The president laughed and stated the CEO had taken care of lapdances for investment bankers with business cash final week-end,» Cedeno states.

But wait an additional: are not we referring to an organization whose primary item is porn? Exactly what are a workplace that is few at a company helping to make cash away from nude women? Well, there is so much more than Cedeno’s pay at risk. FriendFinder filed to go general general public a year ago. It desperately requires the $460 million it hopes to increase in an IPO so that you can reduce $420 million with debt. In the event that business has problems that are legal work dilemmas beyond just exactly what it disclosed in its SEC filings, its executives could face hefty charges, while the IPO would probably be scotched.

Penthouse Porn IPO to Pay for Adult FriendFinder Founder’s Vehicle

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Andrew Conru, a geeky technical engineer turned porn baron who founded one of many Internet’s

FriendFinder Networks CEO Marc Bell would not get back a note kept asking for touch upon Cedeno’s allegations. The SEC restricts exactly exactly what organizations in registration for the IPO can state publicly about their company away from regulatory filings, a necessity referred to as «quiet duration.»

Relating to Cedeno, Various operated Adult FriendFinder as well as other adult that is x-rated for seven years without drawing just one sexual-harassment lawsuit from employees. The organization ended up being because buttoned-down as nearby NASA contractors. Office guidelines limited employees from publishing any pictures on workplace walls, and even having screensavers that are naughty. Cedeno states the organization’s longtime postman had to ask her, after six many years of delivering mail, exactly just exactly what the business really did. And founder Andrew Conru, whom took no investment capital and for that reason owned almost all associated with ongoing business, is famously mild-mannered. (The raciest he gets: He when told a magazine he’d possessed escort service in West Valley City UT a mnage- -trois.)

A billionaire under Silicon Valley’s nose

You should know three reasons for having Joel Stein’s function in operation 2.0 on Andrew Conru of

Valleywag had formerly heard rumblings of discontent during the business. Within the summer time, Anthony Previte, a Penthouse professional who had been COO of this business, apparently prompted a mutiny among the list of Sunnyvale workers by attempting (and failing) to displace all of the operations group. We additionally been aware of a messy shooting within the product sales department. But that has been simply the end associated with the iceberg, relating to Cedeno.

FriendFinder Networks IPO delayed as designers mutiny

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What’s happening over at FriendFinder Networks, ne Penthouse Media Group? Evidently the

Every thing changed after Penthouse purchased the ongoing business and changed its title to FriendFinder Networks, she claims. Within a month, FriendFinder had its very first work problem, and very quickly received two more. The business’s previous controller intends to register an age-discrimination lawsuit, Cedeno says.

Cedeno claims management that is new unresponsive to her issues. Whenever she stated violations of overtime legislation, the business’s VP of operations emailed her, «This trash stops now.» (He intended her complaints, perhaps maybe not the violations.) She states she ended up being bought to lie and blame pay discrepancies in the organization’s outside payroll vendor. She refused.

She additionally states that in January 2008, Rob Brackett, president of this business’s Web team, told her that CEO Marc Bell had reported to him in December the very first time he arrived to see Penthouse’s brand brand new purchase that the ladies in FriendFinder’s technology division had been «ugly» and that Cedeno should dispose of them and change all of them with more desirable employees to help keep the male workers pleased. Brackett pressed Cedeno, asking her just how she would definitely satisfy Bell. The request was refused by her.

The organization has admitted with its S-1 filings that it did not gather fees owed on online bought into the European Union for a long time. This has currently charged $64 million up against the purchase cost of different. (It now states the purchase as costing the organization $401 million, down from $500 million, because of this along with other costs.) However it hasn’t disclosed the extent that is full of pending income tax bills. Cedeno claims the rear taxes in Germany alone arrived at $40 million together with business owes ten dollars million an additional country that is european.

FriendFinder seemingly have produced enemy that is formidable. Cedeno has employed Amanda Metcalf, a prosecutor that is former in personal training whom’s most widely known for her part in case against Death Row Records. I inquired Metcalf why she took in Cedeno’s situation. «Woman done incorrect,» she responded. If Cedeno demonstrates her allegations in court, FriendFinder’s professionals will discover a difficult class: It is a very important factor to make money from ladies. It really is another to make use of them.

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