Holly Madison has been hospitalized for morning sickness. Reuters

It's not time to start picking out something blue or pink, but Holly Madison's boyfriend and expectant father Pasquale Rotella may be picking out something orange. The Playboy model's baby daddy may be heading to jail.

In the same week that Holly Madison and Pasquale Rotella made their pregnancy announcement, E! News is reporting that Rotella is having some serious legal issues.

While Madison may have a colorful resume as a model, actress and dancer, Rotella is the CEO and founder of Insomniac Events, a company that hosts electric dance festivals like the Electric Daisy Carnival.

Unfortunately for Rotella, Insomniac and the Electric Daisy Carnival is where his legal troubles first began. According to the Huffington Post, the 2012 EDC in Las Vegas resulted in two deaths, one being a 31-year-old Florida man who was hit by a truck, and the second being a 22-year-old University of Arizona student who fell from her 27th floor hotel room.

The Las Vegas sun reported that when the police began to investigate they uncovered "multiple Areas of Concern, all surrounding the character of Mr. Rotella and the business operations of Insomniac Inc."

Rotella may be facing a 13-year-8-month jail sentence not for the deaths at his event, but for charges of conspiracy, embezzlement and bribery. The CEO along with five others are accused of stealing millions of dollars from the Los Angeles Memorial Coliseum and Sport Center.

Furthermore, E! News reports that Insomniac allegedly paid former events manager Todd DeStefano and another rave producer $1.8 million to continue the use of the Coliseum for events after the drug overdose of a 15-year old at a rave in 2010.

Despite the accusations, Gary Jay Kaufman, attorney for Pasquale Rotella, expained to E! News that the CEO "always acted lawfully and appropriately with respect to all of his dealings with the Los Angeles Memorial Coliseum. Any allegations of wrongdoing on the part of Mr. Rotella by the District Attorney's office are completely baseless and flat-out wrong, both on the law and on the facts."

"As the future goes, Mr. Rotella will vigorously defend himself to clear his good name and looks forward to being completely vindicated," continued Kaufman.

Pasquale Rotella is currently out on a $1.8 million bail. According to People, Rotella will return to court on Sept. 25 for a pre-trial conference.