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Tuesday, November 1, 2011

Two Philly firms pay millions in online prostitution case

Federal prosecutors in Williamsport - upstate PA - said today they have settled money-laundering and criminal-forfeiture cases against two Philadelphia companies, RS Duffy Inc. and National A-1 Advertising, after the firms agreed to forfeit $4.9 million in gains and pay $1.5 million in fines. 

US Attorney Peter J. Smith, in this statement, alleged "that the corporate defendants operated an Internet enterprise called Escorts.com which facilitated interstate prostitution activities. The defendants allegedly developed and operated an Internet web site, using the domain name Escorts.com, and created an on-line network for prostitutes, escort services, and others to advertise their illegal activities to consumers and users of those services."

Aldo, "the defendants received subscription fees and payments in the form of money orders, checks, and credit card credits, and wire transfers from users of Escorts.com throughout the nation. The funds the defendants allegedly received were the proceeds of violations of federal laws prohibiting interstate travel in aid of racketeering enterprises, specifically prostitution, and aiding and abetting such travel.

"The money laundering conspiracy charge alleges that the defendants agreed to engage in monetary transactions in property of a value greater than $10,000 derived from those unlawful activities. In addition, the Information alleges that in connection with the operation of Escorts.com, the defendants created and maintained a network of Internet customer service accounts which facilitated and caused the transfer and movement of the proceeds of these unlawful activities from locations throughout the United States, including the Middle District of Pennsylvania, to the defendants' business operations at 106 South 7th Street in Philadelphia and to the defendants' accounts at financial institutions, investment funds, and financial services providers.

"Pursuant to a plea agreement also filed today with he U.S. District Court in Williamsport, National A-1 Advertising and R.S Duffy agreed to enter guilty pleas to the money laundering conspiracy charge alleged in the Information, to serve a probation term of 18 months, and to pay a $1,500,000 fine. In addition, under the terms of the plea agreement, the defendants have agreed to the criminal forfeiture of $4.9 million in cash derived from the unlawful activity, as well as forfeiture of the domain name, Escorts.com, all of which represent property used to facilitate the commission of the offenses." 

USAO credited Pennsylvania State Police, FBI, IRS, and prosecutors George J. Rocktashel, James T. Clancy and Amy Phillips with making the case, with help from the Philadelphia US Attorney's office and its Cybercrimes and Forfeiture units, and the Philadelphia police.

See also my earlier item based on AP report here,  Daily News stories here and here and especially here, NY Times here.
Posted by Joseph N. DiStefano @ 3:18 PM  Permalink | 1 comment
Comments   
  • 0 like this / 0 don't   •   Posted 4:55 AM, 11/02/2011
    Escort tells customers she has hiv. http://sites.google.com/site/vipbackchannel
    — terrry45


1 comments
About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column in the Philadelphia Inquirer. Joe has been a member of Bloomberg LP’s New York Finance Team, wrote the book “Comcasted,” taught writing at St. Joseph’s University, and studied economics and history at Penn. Reach Joe at 215-854-5194 and JoeD@phillynews.com
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