On October 5, 2005, while Little was in Barcelona, Spain to attend an international FICEB Erotic Expo, the offices of Max World Entertainment were raided by the FBI. Five video titles and the office's computer servers were seized, ostensibly for research toward a federal obscenity indictment or a charge related to the 2257 record-keeping law.
In the execution of the search warrant, one officer accidentally discharged their weapon into the floor of an upstairs office, as the housekeeper was being detained below. No one was injured.
In response to this action, Hardcore released the following statement:
"Once again, the government is wasting tax dollars and otherwise invaluable law enforcement resources to try to force a minority view of morality on all of America. Five of my movies have been targeted by the Federal Prude Patrol. There is no indication of any crime to be alleged except obscenity. If indicted, I will fight to protect my liberty, as well as the liberty of consenting adults to watch other adults engage in lawful, consensual, pleasurable sexual action. Shame on the Bush Department of Justice. I am proud of the movies I make and proud of those who buy and sell those movies."[5]
In 2007 Paul F. Little and his company Max World Entertainment, Inc. were indicted by the United States Department of Justice Child Exploitation and Obscenity Section on 10 counts of federal obscenity charges relating to 5 movies[6][7] showing fisting, urination and vomiting.[8] Little was subsequently found guilty on all charges,[8] and sentenced to 46 months in prison.[9] Though the convictions have been appealed to the 11th Circuit Court of Appeals in Atlanta, Georgia,[10] Little began serving his sentence on January 29, 2009.[10][11]
The jury ordered the internet domain MaxHardcore.com to be forfeited but declined to forfeit Little's house.[8]
Paul F. Little is prisoner number 44902-112 at The Metropolitan Detention Center (MDC) in Los Angeles and due to be released 05-29-2012[12].