Worker tied to child pornography

THE ASSOCIATED PRESS

VANCOUVER, British Columbia -- Starnet Communications International Inc., a company under investigation for alleged gambling and pornography offenses, said it fired an employee who possessed illegal child pornography.

The Internet gambling and pornography company also said charges that Canadian police said will be filed will have no material effect on its business.

Starnet shares have fallen about 62 percent since Friday when police raided its Vancouver headquarters and the homes of six of its officers and directors, as part of an investigation of possible gambling offenses and allegations that Starnet distributed illegal pornography over the Internet. The company said it fired a "low-level employee" who told authorities that he had child pornography.

"Starnet management reiterates its condemnation of child pornography and emphasizes that the company has in place policy that forbids such illegal commerce by this organization," Chief Executive Mark Dohlen said in a statement.

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