Not exactly. Probably worse, actually...
Brock Pierce, the founder of IGE, and two associates were indicted for the molestation of underage male interns at their previous internet start-up, Digital Entertainment Network. When they fled the USA, DEN (an appropros moniker for their venture) collapsed, taking a $75M IPO with it.
The founder of our beloved IGE, and his buddies, hid out in Spain for a while, but they were eventually tracked down and arrested at a seaside villa in Spain, which was allegedly stocked with "enormous amounts of child ****".
One of Brock Pierce's associates did jail time, but Brock Pierce beat the rap and did not go to jail.
See "Play Money", Julian Dibbell, pages 195 - 200:
http://www.amazon.com/Play-Money-Millions-Trading-Virtual/dp/B000PHWDMG/ref=pd_bbs_sr_1/103-1367402-7583033?ie=UTF8&s=books&qid=1179036955&sr=8-1