In 2004, Francis and Mantra Films agreed without admitting guilt to pay a $1.1-million penalty to settle a complaint by the Federal Trade Commission that alleged the company had enrolled customers in its video-buying programs without their knowledge and had misrepresented a money-back guarantee.
This summer, a lawyer for Francis said "the company made a business decision to resolve the matter rather than incur the substantially greater legal fees necessary to successfully defend the matter."
Francis also has been criticized for his involvement with young women during the filming of his videos.
The Times magazine article reported that Francis had had sex with an 18-year-old woman in Melrose Park, Ill., after a nightclub event sponsored by "Girls Gone Wild." The incident took place in a "Girls Gone Wild" tour bus, one of two that crisscross the country to promote the brand and gather footage of female revelers.
Jannel Szyszka alleged that on June 1 Francis gave her alcohol and brought her onboard a bus to be filmed -- with her consent. She alleged that Francis then forced himself on her even though, she said, that she him to stop. Francis denied any wrongdoing, but said through a representative that he had had consensual sex with Szyszka.
In August, Szyszka reported the incident to the police. Lt. Michael Castellan, head of investigations for the Melrose Park Police Department, said the investigation was ongoing.
Dyer said Tuesday that "the claims made by the woman in Melrose Park were not true."
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claire.hoffman@latimes.com
