CEOs, Bankers Used Corporate Credit Cards for Sex, Says New York Madam

[Dover]

Source: ABCNews

CEOs, Bankers Used Corporate Credit Cards for Sex, Says New York Madam


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. ..> cont'd








Read more: http://abcnews.go.com/Blotter/story?id=6813806&page=1

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Wall Street CEOs, investment bankers charged prostitutes on corporate cards

...Davis provided the network with a print-out of her computerized client list, the same one she says that she offered the district attorney.

Among the names the network says it confirmed

* a vice president of NBC Universal (owned by General Electric)
* 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"
* 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"

http://caps.fool.com/blogs/viewpost.aspx?bpid=142341&t=01002649864375823131

[barbtries]

1. and the prosecutors didn't want to know about it

why? WHY?

[SpiralHawk]

2. Republicon Family Values in action

Ptoooey

[mdavies013]

3. How dare you discuss sex among republicans...

You have violated God's laws...remember the commandments

*Though shall not discuss replublican sex as no matter what the form, it is accepted by God. Now if it is anyone else, persecute, prosecute, and scream about the children.

[muriel_volestrangler]

4. This is fraud, as Baumgarten says, whatever you think of prostitution

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.

http://abcnews.go.com/Blotter/Story?id=6813806&page=2

I don't know what the New York prostitution laws are, but this was tax fraud - claiming personal expenditure as company expenses. Throw the book at them. Get them sacked. People who defraud the state are a problem to us all, in times like this.

[Dover]

5. Interesting that Spitzer's exploits were pursued but NOT these...

What's up with that?

[UpInArms]

15. well, Spitzer paid for his with his own personal money

:shrug:

only if you are charging it on a corporate account is it okay :sarcasm:

[Serial Mom]

6. Where is Eliot Ness when you need him? Get them on tax evasion!

If they claimed an "expense" for this and were invoiced for "computer consulting" and got their corporate taxes reduced, that is clearly tax fraud and tax evasion! That is what they got Al Capone for, so why not these guys!

[americanmutt]

7. Agreed

I will take the lesser of the evil (lies), just to get the fuckers out of here. God, does money corrupt all???

[lazer47]

8. I can understand,, there is a lot of stress involved

in being able to fuck up the entire economy, and make someone else pay for it:hurts: :sarcasm:

[radfringe]

9. Credit Card exec get laid, Americans get LAYED-OFF

the way I see it - my credit card balances are paid off via TARP.

as bush and the repubs were fond of reminding us "IT's YOUR MONEY" referring to the taxes we all pay

so if it's OUR money that went to TARP recipients, then it should be applied to OUR balances.

I know, in my dreams... :eyes:

if they have enough money to had out obscene bonuses, take trips, get laid, redecorate their offices - then they have no business asking for a freaking hand-out.

Credit card delinquencies are rising, and the higher the credit card companies raise their rates the more delinquencies there will be.

what if we ALL just stopped paying our credit card bills? never happen, I know... but what if.....

[McCamy Taylor]

10. OMG!

:popcorn:

[bulloney]

11. And how many of those culprits are Republican? The party of family values and morals indeed!

[ronnie624]

18. As "Wall Street CEOs, lawyers, bankers and media executives",

they are certainly members of the ruling elite, intimately connected to members of congress through campaign donations and lobbying. Collectively, they have doubtless contributed millions to members of both parties to make certain that things go their way.

[bulloney]

19. They may make contributions to both parties, but I'll bet the vast majority VOTE Republican

and are likely registered Republican. It's very common for corporates to "hedge" their political bets by contributing to both sides. Ruppert Murdoch does it. The Andreas family of ADM fame does it, and on and on.

[ronnie624]

20. I would tend to agree. n/t

[Roy]

12. Oh well.... another madam to commit suicide??

Looks like this lady hasn't noticed what happens to those who blow the whistle on the family values of republican types and their moneyed backers.

Brave lady... but maybe foolishly so.

[Gold Metal Flake]

13. Oh, look. Another rich-man's madam who thinks she can talk without being suicided.

Life expectancy is not long for those who start to divuldge details by drips and drabs. She should just come out with it all at once.

[boobooday]

14. Well, you know, if you want to get the best and the brightest

You have to provide the perks.

:puke:

[Frank Booth]

16. And I'll ask again: Why the hell are none of these people in jail?!?

I couldn't care less about hiring a prostitute, but this is clear tax fraud. I also wouldn't be surprised if this got billed to clients.

Rob $500 from 7-11 and you're in a maximum security prison for 10 years. But these fuckers don't have to think twice about stealing way more.

[Mari333]

17. names, we want names.

I am glad this is coming out now, even if it should have come out before. The Partys OVER, fellas.

[crikkett]

21. I smell a book in the offing...

*sniff*

[cherish44]

22. $2000 an hour hookers

Yeah I want someone who spends thousands of dollars just to bust off a load looking after my money...

[aquart]

23. I once temped for a "full-service" banker.

He made me sit in the office while he made appointments for himself and clients at Manhattan's best brothel. (I know it was the best because New York Magazine later did a brothel article and I recognized the address.)

Entertaining clients was considered a corporate expense.