MBE started out selling porn on mobile phones... It's had a bit of a shaddy past but never an illegal one.
MBE == Mobile Active prior to 14 July 2011
Here is the thread on HC - http://hotcopper.com.au/threads/ann-change-of-name-to-mobile-embrace-limited.1503182/#.Vt4a3fl95aQ
Here is the annoucement by MBE: http://hotcopper.com.au/documentdownload?id=tuE7JrfFgm/OGe3kZXGJEW/1SxEDtwe/zg310YFYkqshSezSENtDXQpuNRullVJJ3zx5btlMcIqzotrPCY8wyeEjZA==