An Olympic taekwondo athlete from New Zealand may lose his bid for the 2012 London Games for funding his Olympic efforts with proceeds from a brothel, Reuters reported.

The New Zealand Olympic Committee has threatened to sue Logan Campbell, 23, who publicly said he and a friend opened an Auckland brothel to fund his 2012 trip to the Olympics after the Beijing Games set his parents back $110,000.

Campbell is hoping to raise around $200,000 from the business so that he can concentrate on training, Reuters reported. The New Zealand Olympic Committee told Campbell he faces legal action if he does not stop linking the Olympics to his prostitution business.

"Based on the Olympic values of excellence, friendship and respect, we would place your actions as totally inconsistent with these values," TV3 network quoted the committee's letter, signed by NZOC secretary-general Barry Maister. "Your open solicitation of 'clients' for your 'business' while using the Olympic or Olympian connection must cease immediately, or the NZOC will be forced to consider taking legal action against you."

Campbell defended his fundraising goal, arguing that owning and running a brothel is legal in New Zealand, a country with relatively loose prostitution laws.

The taekwondo athlete finished out of medal contention in the featherweight division at the Beijing Olympics. He has threatened legal action of his own.

Click here to read the full Reuters report.