Intelius co-founder accused of lying about sex acts

A co-founder of the Bellevue-based people-finder service Intelius has pleaded not guilty to a charge of lying to a grand jury about having sex with dancers at Rick's as part of the ongoing prosecution of strip-club owner Frank Colacurcio Sr. and the government's efforts to shut his clubs down.

John Kenneth Arnold, 47, appeared before U.S. Magistrate Judge Brian Tsuchida during an arraignment Thursday in Seattle in which federal prosecutors said he could face up to five years in prison and a fine of up to $250,000. He was released on his own recognizance.

The indictment was issued last September, but only unsealed Thursday morning upon Arnold's arrest. Assistant U.S. Attorney Todd Greenberg, who is spearheading the Colacurcio case, would not say why Arnold wasn't arrested last fall.

The indictment alleges that during sworn testimony on Feb. 18, 2009, Arnold was asked a series of questions about whether he had engaged in sex acts with dancers at Rick's. Arnold answered no.

The indictment alleges Arnold lied. It claims that Arnold, "on numerous occasions and over a period of years," had engaged in sex acts with the exotic dancers at Rick's.

Arnold was represented at Thursday's arraignment by federal public defender Paula Deutsch, who said afterward that Arnold was a "decent man caught up in difficult circumstances."

Tsuchida said Arnold — who property records show paid $8 million for his home on 1.5 acres in Des Moines in 2000 — would have to bring his own lawyer to the next hearing. A trial date was set for April 5 before U.S. District Judge Marsha Pechman.

Greenberg declined to comment on the government's evidence. However, search warrants and a lengthy indictment filed in the Colacurcio money-laundering, prostitution and racketeering prosecution revealed that agents had hidden cameras in an executive area of the club.

The grand jury has also obtained evidence and testimony from dancers.

The 92-year-old Colacurcio, his son, Frank Jr. and three longtime associates — Leroy R. Christiansen, David C. Ebert and Steven M. Fueston — were indicted last July on charges of conspiracy to commit racketeering, conspiracy to use interstate facilities in aid of racketeering, conspiracy to engage in money laundering and mail fraud.

A fourth associate, Colacurcio's longtime friend and caregiver, John Gilbert "Gil" Conte, 76, pleaded guilty to prostitution-related conspiracy charges in November.

They operated four clubs, including Rick's, which the government is now trying to seize.

Indictments for lying to a grand jury are relatively rare, and the U.S. Attorney's Office was clearly sending a message with this one.

In a statement, office spokeswoman Emily Langlie said, "Truthful testimony is the bedrock of our criminal justice system. When a witness seeks to mislead the grand jury, or the court, on a material matter, the consequences are significant and the punishment can be substantial. Our indictment today seeks to hold Mr. Arnold accountable for untruthful testimony to the grand jury."

Arnold is listed as one of Intelius' co-founders. The company offers a number of online directories and services, including a "sleaze detector," which allows subscribers to obtain criminal and other background information on prospective dates.

According to the company's Web site, Arnold has served as executive vice president of business development since Intelius was formed in 2003. Before that, he was an executive vice president at InfoSpace.

Telephone messages seeking comment from Intelius were not returned.

Mike Carter: 206-464-3706 or mcarter@seattletimes.com

Seattle Times news researcher Miyoko Wolf contributed to this report.