The online virgins scam has unraveled. "Mike" and "Diane," two supposedly 18-year-old virgins who were going to surrender their virginity live on the Internet, have confessed they aren't 18, aren't virgins, and aren't planning to have sex. In a press conference before angry reporters at a condom shop, they defended their stunt, saying it was meant to be "a moral lesson" and "the biggest public service announcement ever" on behalf of safe sex and abstinence. The company that was hired to transmit the event to computer users says it was a money-making hoax. "Mike" and "Diane" said they hoped the event would launch their careers. They announced their real names, which Slate has mysteriously forgotten. (7/22/98) "Mike & Diane" Just actors Unmasked -- The Mastermind Behind Internet Virgin Sex-Scam The mastermind behind the bizarre Internet scam that promised millions of computer users a chance to see two teenagers lose their virginity is a former video store owner who went broke fighting obscenity charges for renting sex tapes. Ken Tipton, 45, hoped to reap millions from his scheme despite the fact that the 18-year-old couple -- known as "Mike" and "Diane" -- were actually actors, according to Seth Warshavsky, president of the company that was providing the Web site for the computer sex show. Tipton has moonlighted as a bodyguard and also works as a bit actor in Hollywood. He once worked for IBM before opening a string of video stores in the St. Louis area in the early 1980s. But the subject of sex threw the father of four into hot water even then. He spent his last dime fighting obscenity charges before being acquitted. He turned to stand-up comedy and then acting before coming up with his Internet idea. Tipton used the alias "Oscar Wells" to promote his scheme, according to Warshavsky as a tribute to Orson Welles, who panicked America 60 years ago with a radio broadcast of a Martian invasion. But "Oscar" hoped to fool millions into paying five dollars a pop for the sex show, Warshavsky said. NOTORIOUS Web site offer was a total fraud. The planned event touched off a firestorm of outrage, and even sparked an angry denunciation by U.S. Senator John McCain. But Warshavsky declared the event was nothing more than a scam, and disclosed that Oscar Wells was really Ken Tipton. He terminated the contract with Tipton. "Tipton told me these two people -- 'Mike' and 'Diane' -- don't even exist," Warshavsky, president of the Internet Entertainment Group (IEG), told The ENQUIRER. "The whole thing was well-scripted," said Warshavsky, adding that after everyone paid money the couple was going to say they weren't ready to have sex. -- JEFFREY RODACK The Enquirer.