Friday, February 6, 2009
Hypocrisy, it's the American way!
By ANNA SCHECTER, RHONDA SCHWARTZ and BRIAN ROSS
Wall Street Exposed as Convicted Escort Boss Reveals Client List of 9,800
Wall street lawyers, investment bankers, CEOs and media executives often used corporate credit cards to pay for $2,000 an hour prostitutes, according to the madam who ran one of New York's biggest and most expensive escort services until it was busted last year.
But prosecutors in the Manhattan District Attorney's office chose not to pursue any of the corporate titans, says Kristin Davis, who pleaded guilty last year to charges of running a prostitution business that used more than a hundred women.
"They showed no interest," said Davis in an interview for broadcast Friday on the ABC News program 20/20.
"Some of these guys, I was invoicing on corporate credit cards," she said. "I was writing up monthly bills for computer consulting, construction expenses, all of these things, I was invoicing them monthly so they could get it by their accountants," Davis said.
A spokesperson said district attorney Robert Morgenthau had "no comment" on the handling of Davis' case or her allegations.
Davis provided ABC News with a print-out of her computerized client list, the same one she says that was offered to the district attorney.
The document shows Davis kept meticulous notes about her clients, their credit card numbers and mobile phone numbers.
- Good girl. But do you think that will come out? I doubt it!
Among the names ABC News was able to confirm on the list:
- a vice president of NBC Universal
- the part owner of a Major League Baseball team who "loves Kelsey"
- the CEO of one of the country's largest private equity firms who met "Cameron" at the Peninsula Hotel
- a major New York real estate developer who, according to the list, "will come to the door wearing women's panties," and who spent nearly $100,000
- a partner at the Wall Street law firm Cravath Swaine Moore "looking for a party girl to come fully equipped" and spent a total of $20,000
- an investment banker from Lehman Brothers who saw "Kelsey and Keely together" and later saw "Aria and Skyler at the same time"
- an investment banker at JP Morgan Securities who "loves Brooke" and spent $41,600
- an investment banker at Goldman Sachs who "only wanted all-American girls" and spent $27,000
- a managing director from Merrill Lynch who saw "Lana" using the name "Nataly"
- a managing director from Deutsche Bank "who called about seeing Nataly again"
A spokesman for JP Morgan said the company is looking into the matter.
Manhattan Madam Says Clients Had Payments Disguised
Some of the men contacted by ABC News denied they used their corporate cards, and ABC News could not independently confirm if the credit card numbers listed were corporate accounts.
Davis says one CEO ordered her to send him invoices for "roof repair on a warehouse" to disguise the payment for prostitutes from corporate funds.
"That is fraud," said former New York prosecutor Sid Baumgarten, who told 20/20 the district attorney should have investigated the men.
"Not necessarily just for the patronizing but for the use of these business records and credit cards to see what kind of fraud or tax fraud was being used. And if so, that is a major offense," Baumgarten said.
When ABC News contacted that CEO, he said he used his corporate card to pay for the escort service to entertain clients, but that there was no sex involved.
Brought Down After Revelation of Client #9
Davis operated her escort service as a prostitution conglomerate, with five different "brands" over a four year period, each with its own "price point" and websites.
At the high end was an escort service called Carlyle Trust, mimicking the name, but not connected in any way, to a prestigious investment firm. Davis said she recruited top fashion models who charged up to $2,000 an hour for clients of Carlyle Trust.
Her lower cost services charged $400 an hour for a "body rub," she said.
The "best little whorehouse on Wall Street" was located just a few blocks from the New York Stock Exchange, in apartment 3A at 136 William Street.
Davis operated three other "in-call" locations in the mid-town area of Manhattan.
The escort business took in as much as $200,000 a week, Davis estimated.
But it came to a screeching halt last year in the crackdown that followed the revelation that then-New York Governor Eliot Spitzer was client #9 of a rival escort service.
- And why was he not charged with a sex crime? Picking up prostitutes is illegal, and he should be on the sex offender registry!
In a book to be released Feb. 6, "Manhattan Madam," Davis claims Spitzer had earlier been a client of her service but was banned because of his aggressive behavior trying to get girls to have unprotected sex with him.
Manhattan psychotherapist Jonathan Alpert, who works with many Wall Street clients, told ABC News that many of his clients who patronize escort services are accustomed to high risks and high stakes on the job, and seeing a prostitute, especially if one is married, provides the same rush. "You're playing with fire...it's part of the culture of Wall Street. A lot of drugs, cocaine use, fast times, sex--it's part of the culture."
Alpert said people also use adult sexual service as a way to cope with stress in much the same way that one may use alcohol or drugs. "It's a way to escape," said Alpert, adding that "A lot of clients I see tell me they simply want someone to speak to, someone to listen to them."
Treatment Not Fair, Madam Says
In a plea arrangement, Davis pleaded guilty to promoting prostitution and was sentenced to three-months time served. She forfeited about $500,000 in profits as part of the deal, according to court documents.
Click here to read the documents
"I, as the proprietor of a business get arrested and lose everything, when no one that was frequenting my business, spending $200,000, $300,000 a year, has been punished in any way or even looked into."
Patricia Pileggi, a defense attorney who has represented a Madam, said that targeting the Madam and not the clients does nothing to deter prostitution.
"The DA's office has some ability to prosecute the clients," said Pileggi. "If there's a real interest in deterring this kind of conduct you don't simply target the Madam, you make an effort to target the clients as well."
- Yeah, but that would expose government officials as corrupt, and they can have that!
Pileggi added that there is a provision for the different degrees of culpability in the NY statutes: "[Davis] was prosecuted for a felony and the clients would be guilty of misdemeanors."
She says she has not yet decided whether to release the full client list to the public.
- Oh, please do. It should be released, the public has a right to know about all these corrupt officials!
Not all sex offender are dangerous, and most are obeying the laws, even though they are draconian and unconstitutional! I am sick and tired of the fear-mongering BS. When are you going to be SMART on crime, and work on PREVENTION instead of torture and punishment only? Until you do that, this will never be solved, and reduced! Treating people like lepers does nothing, except push them to the fringe of society, and eventually, they will fight back. And who knows what they will do. But, we know, fear distracts the sheeple from the corruption of the government, so sex offenders have become your scapegoat, that is obvious!
Listen to this video, and what she says about DNA. She basically says that if they had had DNA of Terapon, that they could have some how predicted the future and stopped him before he harmed someone. What a load of crap!
There is an interesting comment on this video, at YouTube, which reads:
"We would be first to be criticized." So moving the registered sex offenders isn't a safety issue, but a self-image thing. "I don't think that's fair to those that are living there [...or...] the students that are living there." -- If her arguments are at all consistent, it would seem as if she is concerned about the image of the school and its effects on the community, NOT the safety of its population. Disgusting.
I am sure many can related to this video.
Parents - Kick your kids off MySpace, Facebook, etc, and go here! It's for kids only and where they should be anyway, IMO!
Why are ignorant people, who know nothing about technology, making and passing laws. So what is to stop a person on probation/parole from going to an Internet Cafe, or Cyber Cafe and using a machine there? If they want to do something and not have the Gestapo watch their every move, this would be an obvious thing for them to do.
By Camaron Abundes - NewsWest 9
MIDLAND - Background checks don't exist online and that's one reason Allen Bell, Director of Operations at Midland Adult Probation says they turned to software to monitor sex offenders who are on probation.
"Software is loaded onto the computer and it is almost like a live monitoring," Bell said.
- For those who use that special computer. It's easy to go to an Internet Cafe, or elsewhere. Maybe a friends computer?
Every move online or offline is recorded for a probation officer to review. If a sex offender visits Myspace or Facebook it triggers an automatic alert that goes to a probation officer.
Sex Offenders in the program are only allowed to use the internet if a Judge authorizes use and if they pay 25 dollars to use the software each month.
"It let's you know you're being watched and that's a big part of the deterrent, just knowing." Bell said.
- So those who are intent on committing a crime, will just use another computer somewhere else!
About 10 offenders currently have access to the internet, but all offenders are subjected to home searches and polygraphs to make sure they aren't violating the terms of their probation.
"If you can't go to the park where the kids are playing then you can't sit behind your computer and talk to them online." Bell said.
Bell says keeping predators offline is a big concern but in the age of cell phones with internet access and internet cafe's, it is an endless battle. This week, Myspace booted 90 thousand sex offenders off its social-networking site nationwide.
- Yes, they kicked them all off, which is discrimination. I am willing to bet, less than 2% were actually doing anything wrong. They kicked them off, simply due to a label! Remember the time blacks had to sit at the backs of a bus, this is very similar!
"If it takes further measures with computers fine, but I don't think it's computers," Midlander Frank Barrasso, said.
Barrasso thinks parents shouldn't let their children log on to keep them away from sex offenders.
"If they do their homework on it. It's really tough to say no, because they type their papers." Midlander Deborah Strauss disagrees, she said parents need to talk to their children.
Michelle Lyons, a spokesperson for the State Prison system says inmates who are released from prison and placed on parole are also monitored closely. Lyons said sex offenders are not allowed to go online once released and parole officers check Myspace and Facebook for local faces.
"It comes back to family, and there are a lot of families that do not have the support out there that they need." Resident Deborah Chapman said.
And like I've said many times, which common sense would tell anyone who is willing to get over the hate, anger and emotions of such cases, will reveal, that these laws will not, and are not going to work. If someone is intent on committing a crime, 10 million laws will not prevent that. Never will! So this is why we need to move away from "TOUGH ON CRIME," and move toward "SMART ON CRIME," IMO! What about creating a way, for those who may be having inappropriate thoughts, to be able to go to a therapist to get help before abusing someone? Right now, that is not an option. When they do this, they are almost always reported and possibly arrested, even if they have not committed a crime.
By BETH DeFALCO - Associated Press Writer
A new federally funded study examining sex offenses in the state where Megan's Law was created concluded that the law hasn't deterred repeat offenses.
The report released Thursday found that registering sex offenders in New Jersey makes it easier to find them when they are accused of crimes, but does little to alter the types of sex crimes committed or the number of victims. The study also suggests the costs associated with the laws may not be justified.
The study estimated the cost of implementing Megan's Law in New Jersey at around $555,000 in 1995. By 2007, the annual costs of maintaining the programs totaled around $4 million.
New Jersey was among the first states to enact laws requiring community notification and sex offender registration. The laws, now in all 50 states, are named for Megan Kanka, a 7-year-old New Jersey girl who was raped and killed in 1994 by a twice-convicted sex offender who lived near her home.
- And it's these few, high profile, high emotional cases, which cause the "knee-jerk" reactions to punish ALL sex offenders. Punishing all offenders for the sick deeds of a few, is wrong! If we did this for all crimes, we'd all be in prison now!
Megan's Law requires law enforcement agencies to notify the public about convicted sex offenders living in their communities.
When the most dangerous sex offenders move to a neighborhood, police go door to door to personally notify citizens and past victims. Those considered to have a lower risk of re-offending are listed on an Internet registry available to the public. The lowest risk offenders must register but aren't subject to notification laws.
Kanka's mother, Maureen Kanka, says the laws were never intended to alter the behavior of sex offenders.
"It was to provide an awareness to the public, which it has done," Kanka said Friday. "We never said it would stop them from going somewhere else and sexually abusing."
She added: "Would having that knowledge have made a difference for my daughter? Absolutely. She'd have been alive and well."
- That might be true, but you are assuming this would be the case, and you can never know that!
But Kristen Zgoba, one of the lead authors of the report and a research supervisor for the state Corrections Department, said that increased awareness alone doesn't result in safer communities.
"There's no other way to increase safety other than to decrease the likelihood of these crimes taking place," Zgoba said.
A public defender, Michael Buncher, said the money spent on Megan's Law would be better used for improved supervision of sex offenders and sex offender therapy in prisons.
The report is among only a few to use hard data to evaluate the effect of the laws on the crime rate. Recent studies in New York and Arkansas have come to similar conclusions. Other previous studies, however, have used mostly anecdotal evidence to support use of Megan's Laws.
The New Jersey study was conducted by the state Department of Corrections with help from Rutgers University. It was funded by the National Institute of Justice.
The authors found that New Jersey has seen an overall reduction in the number of sexual offenses since the early 1990s, but that reduction can't be directly associated with the passage of the notification laws in 1995.
Other factors may be at play. In 1998, New Jersey started civil commitments of sex offenders deemed the most likely to re-offend.
Those who treat sex abusers say registration and notification programs are helpful, but aren't comprehensive enough and don't help rehabilitate the offenders.
"There's a whole containment approach that means that people from a bunch of disciplines - probation and parole, sex offender treatment, victim advocacy and local law enforcement - are working to make sure they don't re-offend," said Alisa Klein of the Association for the Treatment of Sexual Abusers.
"Those types of programs seem to be the most effective way to ensure they don't re-offend, opposed to programs that monitor where they are or residence restrictions that a lot of states are investing money into now."
Some studies suggest that notification laws are counterproductive. A 1999 study noted that the fear of exposure may cause offenders to avoid treatment, and may encourage pedophiles to seek out children as a result of adult isolation.
I am not sure which bill they are referring to, but you can go here, to search.
By The Associated Press
CHEYENNE - A bill to restrict Internet access for convicted sex offenders died in a legislative committee Thursday.
The House Judiciary Committee voted unanimously against the bill. The committee's chairman, Rep. Keith Gingery (Email), R-Jackson, says the bill was too flawed to go to the House floor.
Laramie County District Attorney Scott Homar says convicted sex offenders already are subject to Internet restrictions and computer searches, even if the offender's crime did not involve the Internet.