New D.C. Sex Scandal Looming?
Feds target escort service in money launder, prostitution probe
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 (picture at right). 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.
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?'
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