Accusations and sentencing
As of 2020, several accounts of sexual abuse, trafficking, and employment standards violations have been lobbied against the LA Direct Models agency and Hay. Hay, along with Dwight Cunningham and Karine Michmichian of The Luxury Companion, has also been formally charged by the California Department of Justice for an alleged participation in an illegal prostitution scheme. The complaint alleges that Hay would introduce clients of LA Direct Models to Michmichian and Cunningham for the purpose of prostitution. The complaint further alleges that Hay pressured a female client into prostitution by using the exclusivity provisions in one of his contracts to limit her access to work in pornography. On 28 May 2024 Derek Hay pleaded guilty to one charge of conspiracy to commit pandering and a charge of perjury, as part of a plea agreement with the California Attorney General. He was sentenced to 9 months in county jail. He was released after serving 21 days. ==Awards==