Erotica author, publisher accused of stealing more than $125,000 in royalties

(Photo: Weld County District Attorney's Office)

WELD COUNTY, Colo. — A writer and publisher of erotica and romance novels has been charged with altering her clients’ book sales and keeping the stolen royalties, the Weld County District Attorney’s Office said Tuesday.

Jana Koretko of Johnstown was arrested Monday and has been charged with nine counts of computer crime, five counts of money laundering, four counts of felony theft and three counts of tax evasion.

According to an affidavit, Koretko owns JK Publishing, which is primarily exclusive to romance and erotica authors.

RELATED: Jana Koretko affidavit

The district attorney’s office has accused her of stealing more than $125,000 from 15 clients over a two-year period.

An author notified the district attorney’s office of the alleged scheme in August 2015 after noticing several discrepancies in her royalty payments.

Authorities found Koretko was manipulating the monthly and quarterly sales reports from e-book retailers, including Amazon, iTunes, Barnes and Noble, and Kobo, to show lower sales.

Prosecutors say Koretko would sometimes inflate or exaggerate sales to make the authors believe the novels were doing well.

Investigators found that Koretko under-reported book sales of 15 authors by more than 10,000, netting more than $125,000 in royalty losses.

Koretko is also accused of falsifying her income on a tax return and not filing returns for two consecutive years.

Her first court appearance will be July 7.