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In those instances, the sex service's only recourse would be to collect directly from the consumer.In other instances, sex services offer their own credit cards and maintain lists of bad debtors. Stiles said that the company's collection techniques included threatening to reveal to employers of clients -- some of them in the military -- that a caller was gay and had not paid bills for calls to a "gay chat line," even if the service involved did not cater to gays.

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The civil suit seeks to put the company out of business and seize its assets for distribution to the fraud victims.

Denying the Accusation The charges were denied by the company's owners, Marc Teller and Barry Miller, who spoke through their lawyer. Attorney alleges that my clients are extorting people in the worst possible way.

"I am astounded and stunned by the allegations," the lawyer, Francis Recchuiti, said today in his office in Norristown, a Philadelphia suburb. If that's what they're accused of, bring the charges," he said, referring to criminal charges. Stiles said the company had been extorting up to $100,000 a week around the country.

The company purchased from telephone-sex services lists of people who had charged sex calls to credit cards but had not paid their bills, the complaint states.

"Very often, to avoid embarrassment or disclosure of the nature of the calls, the victim would pay whatever was initially demanded," Mr. About 125 people, realizing "that these demands might never cease," complained to state and Federal authorities, Mr. The complaints began soon after the company went into business two years ago; in May 1993, the State Attorney General's office negotiated a voluntary agreement with the company.