D.C. Madam found guilty

WASHINGTON - A federal jury has found D.C. Madam Deborah Jeane Palfrey guilty on all counts of racketeering and money laundering charges for running a prostitution ring.

Palfrey, in a gray suit, stood with hands clasped and sighed and quietly groaned as the verdict was read in U.S. District Court on Tuesday afternoon.

Palfrey, 52, maintained her company provided legal escort services, catering to adult fantasies from 1993 until 2006.

Earlier Tuesday, Palfrey said she was hopeful the jury was leaning her way.

Prosecutors showed no emotion as the verdict was read. Outside the courtroom, the lead investigator for the prosecution pumped his fist in the air, in celebration of the outcome.

Palfrey and her defense attorney Preston Burton declined to comment about the case.

Throughout the weeklong trial, prosecutors said even though Palfrey cleverly avoided discussing sex, she knew her escorts were having it, and she was getting half of their money.

Burton said the decision to have sex was between the escort and the customer. He acknowledged that some of the escorts did have sex, but Palfrey remained unaware.

More than a dozen former escorts and customers of Palfrey's Pamela Martin & Associates escort service testified against her after being granted immunity from prosecutors.

Palfrey faces a maximum of 55 years in prison when she is sentenced on July 24.

Prosecutors urged U.S. District Judge James Robertson to immediately put Palfrey behind bars, arguing that the verdict was a motive for her to flee. Judge Roberston denied the request, noting that Palfrey has never missed a court appearance.

The trial was the first time federal prosecutors in D.C. used federal racketeering statutes in a prostitution case.

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