Derek Hay, the owner of LA Direct Models, has been released from custody after serving just three weeks of his 270-day sentence in county jail. Hay was sentenced to nine months behind bars and two years of probation following his guilty plea to two felony counts in what the State of California has labeled a “prostitution racket.”

Hay’s sentencing concluded a protracted legal battle that began in 2020, initiated by then-California Attorney General Xavier Becerra. In May, Derek Hay pleaded guilty to perjury and conspiracy to commit pandering as part of a plea agreement that significantly reduced the original 12 felony counts brought against him and his co-defendants. The initial charges, filed by a grand jury in September 2022 under current Attorney General Rob Bonta, included pimping, pandering, conspiracy, money laundering, and perjury.

During the sentencing hearing, State Attorney Jeffrey Segal pushed for the maximum penalty, advocating for six years in state prison followed by probation.

Segal argued that Hay had violated his fiduciary duties by using his state-issued license to conduct a criminal enterprise. He also pointed to Hay’s dishonesty during the proceedings, noting that Hay had perjured himself while under direct examination by his attorney.

Segal raised additional concerns regarding 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 indictment was filed. This name change, coupled with Hay’s residency in Nevada, posed significant challenges for ensuring compliance with California’s probation requirements. The court acknowledged Hay’s alias, with his attorney, Richard Freeman, stating he was unaware of the name change.

Segal also requested no-contact orders to protect the witnesses involved in the case, citing concerns over potential retribution and harassment, particularly in light of negative stories written about the witnesses over the years.

Despite the serious nature of the charges and the state’s request for a lengthy sentence, Hay’s time in jail was cut short, as is common in LA County.