Intelius co-founder charged with lying to Seattle grand jury about strip club sex acts

Intelius founder charged with lies to grand jury

SEATTLE — An executive at the background-check company Intelius Inc. who recently promoted an iPhone application for weeding out sleazy dates has been charged with lying to a Seattle grand jury when he denied engaging in sex acts at a strip club.

John Kenneth Arnold, a co-founder and executive vice president of business development at Intelius, pleaded not guilty Thursday in federal court following his arrest.

The indictment alleges that Arnold, who is married, lied to a grand jury when he testified he had never engaged in sex acts with dancers at Rick’s. His testimony was part of the government’s racketeering investigation of the club’s owner, Frank Colacurcio Sr. — an investigation that has included secreting hidden cameras in the establishment. Colacurcio, his son and three associates were indicted in July on conspiracy to commit racketeering and other charges.

Intelius, based in Bellevue, did not immediately return a call seeking comment, and a phone listing for Arnold could not be found.

The company has recently promoted an iPhone application called “Date Check,” designed to help people run instant background checks on their dates or others they meet. One of its functions is called “Sleaze Detector,” which searches for criminal convictions.

As first reported by the Seattle technology blog TechFlash, Arnold introduced the application at a demo conference last September, telling the audience: “Letting a stranger into your life is a huge risk, and in the age of Internet anonymity, a simple online search isn’t enough to tell you everything you need to know.”

Arnold was released on his own recognizance. He was represented by a public defender at the arraignment, but must hire his own attorney for future court appearances because he can afford one.

“Truthful testimony is the bedrock of our criminal justice system,” said Emily Langlie, a spokeswoman for the U.S. attorney’s office. “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.”

Trial was set for April 5. The charge carries a sentence of up to five years.

Video of Arnold introducing the “Date Check” application is available here:

link.brightcove.com/services/player/bcpid980795693?bctid(equals sign)41348619001