[DannyM]

Taken from wiki:

Originally Posted by WiKi

n 1994, entrepreneur Gary Kremen (now the CEO of Grant Media, LLC) registered sex.com with Network Solutions (NSI). He did not develop a site.

While working in Midcom, in October 1995 NSI transferred the domain to Stephen M. Cohen. Cohen had been trying to gain control of the domain for some time by misrepresentation, using phone calls, e-mails and forged letters. He eventually persuaded an employee of NSI to change the ownership details, apparently through a fake fax, although this was not entirely clear during most of the legal proceedings that followed.

After gaining control of the domain, Cohen developed it, producing an advertising-heavy web site hosting which gained up to 25 million hits a day. From payments for click-throughs and other advertising it was reported that Cohen was making $50,000 to $500,000 every month.

Kremen undertook steps to recover the domain, but found it extremely difficult. Cohen claimed he obtained the domain legally from Online Classifieds (OCI), and a five-year legal battle ensued, led by cyberlawyer Charles Carreon. Kremen was victorious in November 2000, when Network Solutions was ordered to return the domain to Kremen and Cohen was ordered to pay $25 million into court.
Stephen Cohen's Sex.com Business Card
Stephen Cohen's Sex.com Business Card

In April 2001 the California District Court awarded Kremen an additional $40 million for lost earnings, for a total of $65 million. Cohen appealed the judgement and refused to allow assessment of his business – providing false information or none at all, declaring most of his companies bankrupt and illegally moving assets out of US jurisdiction. When an arrest warrant was issued, Cohen fled the country to Mexico. Kremen offered a $50,000 reward for information, but Cohen remained at large. Cohen continued to file appeals but they were rapidly rejected. In October 2005, Cohen was arrested in Tijuana, Mexico for immigration violations, and was handed over to US authorities.

Thats the brief summary, but IIRC Channel 5 had a bit more info and they were some little twists and turns in it.

I gotta take my hat off to Cohen, to steal such a domain name is pretty good, however stupid. Now the original owner doesnt seem to take full advantage of it @ all. Channel 5 mentioned that he makes 40% of what Cohen used to make when he owned it.