Saturday, February 7, 2009

Ex-NY Madam: Clients paid using corporate credit cards

Sat, Feb 7 06:18 AM

A former madam of a high-priced New York prostitution ring alleges in a U.S. television interview to be aired on Friday that investment bankers, Wall Street lawyers, CEOs and media executives often paid for her services using corporate credit cards.

The former madam, Kristin Davis, said her clients included investment bankers from JPMorgan, Goldman Sachs, Merrill Lynch, Lehman Brothers and Deutsche Bank, according to an article about the interview posted on ABCNews.com.

The banks either declined comment or did not immediately respond to a request for comment from Reuters.

ABC news said that Davis' client list also included a vice president of a major media company, the part owner of a Major League Baseball team, the CEO of one of the country's largest private equity firms and a major New York real estate developer.

"Some of these guys I was invoicing on corporate credit cards," Davis told ABC's "20/20" news magazine, according to the station's website.

"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," she said, according to the website.

The ABC article said: "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," the ABC article said.

Davis started her business after being fired from a hedge fund, she told ABC. She was arrested last March and later pleaded guilty to promoting prostitution.

She was sentenced to time served and ordered to forfeit $475,000, a spokeswoman at the Manhattan District Attorney's office said.

Davis' arrest came the same month another escort service, the Emperor's Club VIP, also was broken up after then-New York Gov. Eliot Spitzer was identified as one of its clients.

In a book being released Feb. 6, Davis alleges Spitzer, at one point, was one of her clients as well.

The interview with Davis will be aired on Friday night on ABC's "20/20" news magazine.

Davis also said in the interview that she offered the Manhattan District Attorney's Office evidence about her clients' corporate ties, but prosecutors declined to pursue the lead.

A spokeswoman at the Manhattan District Attorney's office declined to comment.

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