In 2003, Friedman was convicted in a case involving prostitution and drug usage. Friedman had been accused of offering cocaine to Ukrainian prostitutes he had ordered through an escort service that was being investigated for forced prostitution. Friedman's crime was discovered almost by chance, when police wiretaps for the investigation into forced prostitution led them to the name "Paolo Pinkas", which turned out to be Friedman's alias when using the service. Investigators raided his home and found small quantities of cocaine. He was fined EUR17,400 for possession of cocaine, on July 8, 2003. The settlement enabled him to avoid a trial.