Did LA Direct Models break the law yet again?

According to an old old article on the Mike South website about Manwin being unable to buy up a talent agency because of a conflict of interest, I realized that Derek Hay and LA Direct Models has been doing that for a long time – I mean the conflict of interest part.

They have a direct interest in many of the girls personal websites and as such it would be a direct violation of California Labor Code section 1700.40.

(b) No talent agency may refer an artist to any person, firm, or corporation in which the talent agency has a direct or indirect

financial interest for other services to be rendered to the artist, including, but not limited to, photography, audition tapes, demonstration reels or similar materials, business management, personal management, coaching, dramatic school, casting or talent brochures, agency-client directories, or other printing.

(c) No talent agency may accept any referral fee or similar compensation from any person, association, or corporation providing services of any type expressly set forth in subdivision (b) to an artist under contract with the talent agency.

For years they’ve been violating US labor laws. Now this. Plus they’ve been double dipping, yet another violation (where they charge both the client and the talent booking fees. And that’s not even touching the whole escorting thing.

So why has nobody taken this jackass down yet?

HELLO? Plain and simple, he takes a percentage of money from the girls website. He has a DIRECT FINANCIAL INTEREST in them. How is this not a violation of the labor law?