New D.C. Sex Scandal Looming?
Feds target escort service in money launder, prostitution probe
it's the stress OUR D.C. is under ? um maybe ?
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New D.C. Sex Scandal Looming?
OCTOBER 9--With the capital already mired in its
latest sex scandal, federal agents last week raided the home of a woman
they allege has, for the past 13 years, operated a Washington, D.C.
escort service that dispatched college-educated prostitutes to the homes
and hotel rooms of well-heeled clients. A two-year probe by Internal
Revenue Service and Unites States Postal Inspection Service agents has
targeted the Pamela Martin & Associates escort service and its
owner, Deborah Jeane Palfrey. In coordinated actions last week, agents
searched the 50-year-old Palfrey's northern California home and froze
nearly $500,000 in assorted bank and stock trading accounts. A copy of
the seizure affidavit, sworn out by IRS Agent Troy Burrus and filed in
U.S. District Court, can be found below. According to investigators,
Palfrey charged clients about $300 per session and split the take with
her stable of prostitutes, who were encouraged to 'work at least three
nights a week.' Palfrey, who started Pamela Martin & Associates in
1993, was previously convicted of running a California prostitution
business and served 18 months in prison (Palfrey is pictured in the
above mug shot). In a TSG interview Monday, Palfrey admitted operating
an escort firm, but claimed that her workers did not engage in 'illegal
sexual activities.' There are 'a lot of erotic activities that one can
do without participating in things that are illegal,' she claimed.
Investigators contend that after Palfrey hires a prostitute, she sends
the woman to a 'screening' appointment where she is required to have sex
'without payment' so as to ensure that the prospective hooker is not a
law enforcement officer. Palfrey, who spoke to TSG from Germany, said
that agents raiding her home would have found nothing since she did not
keep computerized records and regularly shredded documents. Asked about
the nature of her clientele, Palfrey called the identity of her johns a
'salacious detail' of which she was unaware. 'I never kept records,' she
claimed. 'I protected the client's confidentiality...they trusted me.'
But Palfrey did speculate that she may have come to the attention of
federal agents because her operation had somehow intersected with a more
high profile case, like that of convicted ex-congressman Randy 'Duke'
Cunningham. Investigators are reportedly examining charges that a
defense contractor provided hookers to Cunningham as part of an
influence-peddling scheme. Palfrey did not claim a nexis between her
escort service and Cunningham, but invoked the disgraced pol's name
while saying that she would wager that the basis for the federal probe
of her business 'had solely to do with some Duke Cunningham-type bigwig
client that got caught up in something and started to say, 'Do you know
this?' and 'Do you know that?' And that he might have been able to lead
them to somebody.' Palfrey, who said she started her service in D.C.
because 'it's a very liberal, sophisticated, cosmopolitan area,'
advertised her company as featuring women '23 and older, with two or
more years of college education, who either work and/or go to school in
the daytime.' Palfrey told TSG that she shuttered her escort business in
mid-August because her female employees were 'driving me crazy. They
were a pain in the ass to deal with.' She added, 'It was just time to
start a different life and do different things, move on.' (7 pages)
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