Posted on 05/15/2009 1:07:38 PM PDT by Snickering Hound
Randall Bradley Jones, who authorities say cheated the Internal Revenue Service out of taxes on income from his six houses of prostitution, today was sentenced to 33 months in federal prison and ordered to pay $15,000 restitution.
U.S. District Judge Melinda Harmon sentenced Jones, who pleaded guilty in February to one count of tax evasion for failing to inform the IRS of about $665,962 in cash he acquired.
Prosecutor Charles Escher told the judge at the plea hearing that Jones and his business, Amazing Promotions Group Inc., collected the cash from the safes at the six houses he called Escape Lounges. Escher said the prostitutes put their earnings in those safes.
The government knew about Jones’ cash because a Houston police raid on the Escape Lounges in 2004 netted financial spreadsheets that listed his unclaimed income.
Harris County records show that, after the 2004 raid on his business, Jones was sentenced to five years’ probation in 2005 for engaging in organized criminal activity.
IRS spokeswoman Robin Sabin of Houston said that even income derived from illegal activities has to be reported to the IRS.
(Excerpt) Read more at chron.com ...
Of course Tim Geithner still walks free.
So he’s not going to jail for exploiting women and comitting multiple violent crimes associated with pimping, he’s going to jail for not cutting the Feds in on the action.
Yep. From what I've seen local law enforcement looks the other way unless it's in the public eye, like streetwalking. But heaven help anyone who doesn't pay their taxes.
It'd be interesting to see what a pimp/whore might put on their Schedule C as a description of their business.
Al Capone finally got sent up for income tax evasion, too.
“...income derived from illegal activities has to be reported to the IRS.”
Stupidity .... Officially reporting one’s self as engaged in “illegal” activity?
Believe it or not had he listed his occupation as "Pimp" or even "Paid Hitman" and paid his taxes the IRS would have been legally forbidden from telling any LE agency about it.
Privacy laws don'tchaknow.
L
And members of Congress, who are the worst type of prostitutes, walk free among us.
I remember when the 2004 bust went down, it was the lead story on all the local news.
They were rather brazen about advertising on the internet complete with pictures of the girls and their schedules and locations.
There was also talk of some prominent customers on those spread sheets at the time but that has long since been hushed up.
Lots of talk about the customer list too, but the only name that came out was a federal judge, Nottingham, nicknamed "judge naughty" by the girls. He later resigned, not because he had seen hookers, but because he was trying to coordinate his story with one of the gals'. In the minds of many gimlet-eyed prosecutors that's called obstruction of justice.
"Moral" of the story? You can generally get away with seeing hookers or being one, but you better pay your taxes and tell the truth about it.
“It’d be interesting to see what a pimp/whore might put on their Schedule C as a description of their business.” Maybe Independent Contractor, or Morale Specialist!
“Morale Specialist,” yeah that’s it! I wonder if that has an NAICS code???
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