Derek Hay, owner of LA Direct Models, was sentenced to 270 days (9 months) in county jail and two years probation following his guilty plea to two felony counts in what the State of California has called a “prostitution racket.”

Hay’s sentencing comes after a lengthy legal battle that began in 2020, initiated by then-California Attorney General Xavier Becerra. Hay pleaded guilty in late May to charges of perjury and conspiracy to commit pandering as part of a plea agreement. This plea deal reduced the original 12 felony counts to two. The initial charges against Hay and his co-defendants included pimping, pandering, conspiracy, money laundering, and perjury, brought forth by a grand jury indictment in September 2022 under current Attorney General Rob Bonta.

The case stems from complaints filed in 2018 by five actresses—referred to in court as the “Jane Does”—who accused Hay and his agency of labor code violations. These complaints were brought before the California Labor Commissioner’s Office by attorney Allan Gelbard. In 2020, hearing officer Patricia Salazar ruled in favor of the models, finding that Hay had violated labor laws by withholding commission payments. Hay was ordered to repay the commissions along with attorney fees and court costs. His attorney, Richard Freeman, filed an appeal for a trial de novo in the Los Angeles Superior Court, of which he was granted.

The Jane Does later identified themselves as Charlotte Cross, Shay Evans, Sofi Ryan, Andi Rye, and Hadley Viscara, testified under their performing names during the sentencing hearing on July 17. An impact statement was also read on behalf of former adult performer Bobbi Dylan.

Interestingly enough, during the criminal proceedings, the Jane Does were referred to as unindicted co-conspirators.

A person who is named in an indictment as one who took part in a conspiracy to commit a crime but who is not charged in the indictment. 

During the hearing, State Attorney Jeffrey Segal urged the court to impose the maximum penalty of six years in state prison followed by probation, citing Derek Hay’s violation of fiduciary duty and his use of a state-issued license to perpetrate a criminal enterprise.

Segal highlighted Hay’s dishonesty and lack of remorse, noting that Hay had perjured himself under direct examination by his attorney. Segal also raised concerns about Hay’s compliance with probation orders, revealing that Hay had legally changed his name to “Andrew Gallagher” in August 2022, just a month before the original indictment was filed. This name change, coupled with Derek Hay’s residency in Nevada, posed significant compliance issues.

The court added Derek Hay’s alias to the record, with Richard Freeman (his lawyer) claiming he was unaware of the name change. Segal requested no-contact orders to protect the witnesses from potential retribution and harassment, citing various negative stories written about them throughout the years.

Derek Hay was remanded into custody to start serving his sentence immediately after the hearing. He will serve his sentence in county jail rather than state prison. Due to overcrowding, it is likely he will be released within days.