E-Mails Expose Inner Workings of Palfrey's Escort Service

WASHINGTON - "Why did you do this to me? I never did anything to you."

That accusatory two-sentence e-mail from alleged D.C. madam Deborah Jeane Palfrey to an escort she considered her "little sister" and one of her most trusted confidantes came moments after Palfrey realized her assets had been frozen by the U.S. Department of the Treasury.

"My first thought because of the timing was that (Jennifer) was working with the government," writes Palfrey, in a series of e-mails to WTOP.

"Jennifer" was the name escort customers knew for a legal secretary at Akin Gump Strauss Hauer & Feld, a prominent D.C. law firm. The woman was fired in May 2007, shortly after revealing to the firm that she had moonlighted for Palfrey's Pamela Martin & Associates between 2002 and 2006.

Palfrey faces federal racketeering and money laundering charges in U.S. District Court in Washington for allegedly running a prostitution ring. Palfrey maintains her company provided legal escort services in the nation's capital, catering to adult fantasies from 1993 until 2006.

WTOP is not identifying "Jennifer" by her given name, as she has not been charged with any crimes. Her lawyer confirms his client has been contacted by the prosecution, and at trial would testify against Palfrey.

"If my client is called as a witness, she intends to testify," says Athan Tsimpedes, attorney for "Jennifer."

Channing Phillips, spokesman for U.S. Attorney Jeffrey Taylor, refused comment on "Jennifer," citing pretrial secrecy rules.

Ever since Palfrey was indicted in March, she's wondered, theorized and hypothesized how she came to the attention of the U.S. government, since Pamela Martin operated without arrest for 13 years in a city which is home to dozens of escort services. Palfrey has alleged she is the target of selective prosecution.

On Oct. 4, 2006, when Palfrey learned her assets had been frozen and her home searched by federal agents as part of a joint Internal Revenue Service-U.S. Postal Inspection Service investigation, she initially believed "Jennifer" provided the government with the impetus to bring a criminal case against her.

Palfrey quickly changed her mind.

"I immediately backed off," Palfrey writes. "I have continued to maintain she -- like the other escorts -- probably is a victim."

The indictment against Palfrey states 14 of her escorts described to the grand jury how they sent money by mail to Palfrey's Benicia, Calif. home. Prosecutors say the money facilitated the operation of an unlawful activity -- a major component of the federal Racketeer Influenced and Corrupt Organizations Act, or RICO charge. If she were convicted on the organized crime charge, Palfrey could lose most of her assets permanently.

Palfrey's second thought was apparently the correct one. Tsimpedes says the first time his client had any contact with the federal government was after Palfrey's home had been searched and her assets seized. One of the items recovered from Palfrey's home was a file containing contact numbers for her employees. Tsimpedes believes that's how the government learned the identity of "Jennifer."

"My client had no involvement with the government as far as them looking at her for anything. She received a subpoena," in relation to Palfrey's case.

Palfrey's fondness for "Jennifer" was, in large part, due to their long business association. WTOP has learned the escort's phone number appears 1,052 times in Palfrey's records between April 3, 2002 and May 21, 2006.

"She was in her late 20s, a five foot and no inches tall, pretty, busty blonde," writes Palfrey.

A recent traffic citation lists the former Akin Gump employee as 5 feet tall and 110 pounds.

In her day job, WTOP has learned "Jennifer" was a legal secretary for John M. Dowd, the head of Akin Gump's criminal litigation group. Sheila Turner, director of communications for the firm, would not specify for whom the woman worked or provide any details on her employment.

"This is an internal personnel matter, and as such we will not provide comment."

"She was very smart," writes Palfrey, "I was very fond of her, if for no other reason than she had her head on straight."

Tsimpedes, the attorney for "Jennifer" says while at times she did provide outcall escort services, "she was not involved in prostitution. She did nothing wrong." Tsimpedes and Palfrey agree that for the past few years, much of his client's work had involved working the phones for Palfrey, setting appointments for customers. Both say "Jennifer" had stopped working for Palfrey by mid-2006.

On Oct. 2, 2006, two days before Palfrey's home was searched and her assets frozen, "Jennifer" broached the subject of reuniting. In e-mails from her Akin Gump account obtained by WTOP, she typed, "Just wanted to drop you a line to see if there is another contact number for me to call in case I wanted to pick up a few nights or has everything been shut down?"

Palfrey, in Europe at the time, informed "Jennifer" that she'd closed her business in August.

"I simply could not take it anymore," Palfrey wrote at the time, declaring frustration with temperamental escorts, who "acted as if they hardly could stomach the business, the job, and most especially me when on call."

Yet, Palfrey was willing to consider passing-along her business to Jennifer.

"It is plain 'foolish' to take a perfectly viable revenue stream (of any kind) and just throw it away, without solid justification," Palfrey wrote.

Palfrey detailed the steps "Jennifer" would need to take to revive the business. One of those steps involved pulling-back the curtain on what was apparently a secret between Palfrey and her most trusted employee -- the other escorts' real names. "Haley's # is 202-xxx-xxxx and her real name is Paula...Angela's # is 202-xxx-xxxx and her real name is Donna and McKenzie's # is 202-xxx-xxxx and her real name is Lynette."

As previously reported by WTOP, "Paula" is Paula Neble, a former escort Palfrey is suing for breach of contract.

In her criminal and civil cases, Palfrey has said her escorts were independent subcontractors, who signed contracts pledging they would not engage in illegal activities. WTOP has reported Neble, whose customers included Sen. David Vitter, R-La., told a grand jury she considered her work for Palfrey to be prostitution.

Palfrey says a few months before her life began tumbling down she helped "Jennifer" buy a small horse farm in Maryland, "by vouching as her other or second employer with a lender."

Tsimpedes says the former secretary is trying to pick up the pieces of a broken legal career. WTOP has learned she is working in the debt collection business.

"She was wrongfully fired. Akin Gump did her an injustice. She was imprisoned by her firing. It doesn't take much to figure out who she was," Tsimpedes says.

In an Internet search of previous news articles, it appears the law firm has never publicly identified "Jennifer."

Palfrey realizes the irony that one of her most-trusted confidantes in their shared secret world may someday take the witness stand against her.

"I have always stated the girls ("Jennifer" included) were bullied by the government in the grand jury proceeding and absolutely had no prior predilection to hurt or harm me," Palfrey writes.

Despite her intention to "fight to the death" in her criminal case, "When this is all over," Palfrey writes, "I look forward to reconnecting with each and every one of the women, if they so desire. I hope to have some very long and long overdue lunches and dinners in my future."

(Copyright 2007 by WTOP. All Rights Reserved.)