DENVER -- A Colorado businessman, dubbed by federal investigators as the country's No. 1 distributor of pornography, pleaded guilty Friday in Dallas to illegally distributing pornography and under-reporting his taxes.

Federal prosecutors said that Edward Wedelstedt, of Littleton, Colo., faces 13 months in prison and could be ordered to close his adult entertainment stores in eight Texas cities.

Sentencing is set for Feb. 9.

Wedelstedt pleaded to distributing a sexually explicit video deemed obscene by a grand jury and not reporting large sums of cash salaries and bonuses.

Wedelstedt owns Goalie Entertainment Holdings, which in March was the target of a 23-count indictment. Goalie Entertainment is headquartered in Denver.

The corporation runs a porn business out of stores like Romantix, located at Colfax and Washington in Denver, along with 60 other shops in 18 states across the country.

Wedelstedt's company has Texas stores in Abilene, Amarillo, Dallas, Hillsboro, Lubbock, Merkel, Terrell and Wichita Falls.

Wedelstedt is best known in Denver for his non-profit foundation, Eddie's Kids, which provides professional sports tickets to poor children.