Busted: prostitution ring that catered to Wall Street clients
Reuters) - Seventeen people were indicted on Wednesday on charges of running a high-end prostitution ring that catered to Wall Street clients who often spent more than $10,000 in a night, authorities said.
The ring pulled in more than $7 million over three years, Brooklyn District Attorney Charles Hynes said at a news conference.
"The business of high-end prostitution is enormously profitable," Hynes said.
The prostitution service, named High Class NY, was run 24 hours a day out of an office in Brooklyn and charged from $400 to $3,600 an hour for its services, according to the 144-count indictment. It also provided customers with cocaine and other narcotics, the indictment said.
Hynes said clients often spent in excess of $10,000 in a single night.
They were "all high-end customers coming from the financial markets. People with nothing but money," he said.
Police said the business was extremely sophisticated, running several escort websites and using dummy corporations with misleading names and codes during business-related phone calls.
High Class NY even had a law firm draw up employment contracts for its prostitutes, who described themselves as models and fraudulently agreed to refrain from sexual contact with clients, police said.
"They were on the high-end of sophistication," said Vice Detective Joe Panico.
Among those indicted were High Class NY owner Mikhail Yampolsky and his wife Bronislava, who allegedly used the proceeds from their business to finance expensive trips to Atlantic City and luxury car purchases, Hynes said.
Also indicted were Yampolsky's son Alexander, step-son Jonathan, 11 managers and supervisors and two investors, Efim Gorelik and Yakov Maystrovich, he said.
Each of the investors had put $700,000 into High Class NY and were being paid back with interest, he said.
Each of those indicted faces the possibility of 25 years in prison if convicted. Two prostitutes face separate indictments on prostitution and drug charges.
After 17 people were busted yesterday for running a prostitution ring that catered mostly to Wall Street clients, word is that the Brooklyn DA is considering charging the "Johns," the clients who ordered the ladies, too.
So far, only 30 people total have been charged.
But everyone expects more people to be arrested, because basically, besides how the prostitution ring worked, all the Brooklyn DA (Charles Hynes) spoke about at a press conference covered by NBC is how this case involves some of "New York's "wealthiest," most "sophisticated" and "high class" people on Wall Street.
It seems like he's dying to tell us some of these names. In a press conference yesterday, he said:
"For people like that, money is irrelevant."
"Everything was about people who have unlimited money. Instead of paying $20 for cocaine, they were paying $170 for cocaine."
Those who used credit cards - many charging $10,000 per night - are at risk. So was it worth it?
Hynes says the men were paying "exorbitant amounts" to do "god knows what" with these women.
So last night, NBC went undercover and called the number on "www.angelsofyourchoice.com," one of the websites cited in the case. (Others: "Classy NY," "NY Adult Dating," and High Class NY.")
Here's what happened. An undercover reporter called the website and asked for a model. The service arranged for him to meet her at a hotel. When he arrived, she insisted that she cost $600 per hour, but that she was only for "companionship."
But when the DA went undercover earlier, Hynes says, the conversation turned more explicit in the hotel room.
They give one PG-13 rated detail: the code word for cocaine was champagne.
Yeah I agree, I myself would not seek out "services" but, have no problem with those who do. I don't care what anyone else does so long as it doesn't affect me. It would be nice if more people thought as I do and not tell people how to live thier lives by legislating behaviours that are contrary to thiers. This case in particular was victimless...who was harmed by these acts ?
The funny thing with this stuff is like the last time I had a one night stand, the woman got a 2 dollar cup of coffee and a semi bullshit story from me about wanting a relationship.
Perfectly legal..If I had been honest though and given her $11k we could both go to jail.
Just completely absurd.
On another note, the topic of the story..... what's generally wrong with catering to 'Wall Street Clients?' That's like being upset that Bentley caters to wealthy people. The people that wrote the story make it sound like the problem is not the illegal activity, but who their clients where.
If we knew publicly everything they did, then I do believe once sunlight touched it, they would be behind bars. Not all of them, but a great many. Of course, the # of speeding tickets I have is surely a felony!