The Amnesty Program

I had no idea that this Metropolitan Bureau of Investigation (MBI) strategy was referred to as the "Amnesty Program" until I listened to Agent Rose testify during my trial. In reality, amnesty, as the term is defined, bears no similarities to the MBI version or the ideals behind the label. In Rose's testimony he claimed that I called the MBI, stated that I was "waving the white flag, wanted to come in to speak with him, and then never showed-up." Perhaps someone called him pretending to be me, because it sure was not me, or maybe he was dreaming (pipe dreams) as he did in his sworn affidavit for the arrest warrant. Or maybe he just enjoys swearing to lies. I do not pretend to know the answer.

Agent Potters from the book is actually Agent Peters. Agent Ross is actually Agent Rose.

From the book, Chapter Four, “The Amnesty Program” and Other Intimidation Strategies:

On an afternoon in early April of 1996, Agent Potters of the MBI called me screaming:

“WE DEMAND YOUR PRESENCE IN OUR OFFICE ASAP! WHEN CAN YOU BE HERE?”

“Do you have a warrant?” I asked.

“YOU’LL FIND OUT WHEN YOU GET HERE!” he yelled at the top of his lungs like a Marine drill sergeant.

“Well, I’ll have to arrange it with my attorney. He will call you back!”

“WHAT’S HIS NAME AND NUMBER?”

I gave him the information that he demanded, hung-up the phone, and called Joe. Now Joe had been my attorney for the years that I was in business. He said that I shouldn’t worry about it and that he would take care of it. The following day Joe called to inform me that he had left two messages at the MBI number and no one returned his call as of yet. He thought that I shouldn’t even think about it, and so I didn’t. It wasn’t that hard to forget the MBI.

It was not long before I heard the full story and found out what they wanted. They had simply gone through the phonebook, dialed everyone that had an ad, and screamed the same thing at them. The big “amnesty program” was the MBI offering not to arrest and prosecute the agency owner if he or she signed an agreement that the telephone lines would be immediately disconnected, they would never open an escort service in the State of Florida again, and they agreed to forfeit any and all tangible property that belonged to their business.

This was not presented to these agency owners in any normal manner, but instead as a vicious threat. One result was the suicide of a friend that owned an agency. Agent Rose threatened to lock him up for 10 years, and when he still refused to sign, the agent stated that he'd make sure his wife joined him and their children were taken by the state. My friend had lots of life insurance and made his choice.

And that was what the MBI referred to as the Amnesty Program.

Operation Plastic Empire (MBI)

Operation Plastic Empire was the Metropolitan Bureau of Investigation (MBI) strategy to file state charges at the heels of the IRS Operation Out Call. The operational strategy was a failure, at least at the state level and in respect to the credit card processing. It wasn't a failure in relation to its accompanying toolbox – obtaining the client names from the credit card transactions and intimidating and coercing every defendant to the point that each accepted a plea deal. And then it certainly succeeded in scaring every escort service owner in Orlando that wasn't involved, with the exception of yours truly and two other operators. By the middle of 1996, this place was almost abandoned, in part due to the Amnesty Program, and by January 1997, no escort services remained in the area yellow page books, due to the Yellow Pages Fiasco, as I refer to the MBI setup of advertising representatives.

The many cases involved in this operation were separated for reasons unknown to me. One case had five defendants, several cases had one lone defendant, and another case had nine defendants. There may be additional cases that I'm not aware of with any number of defendants. As my example here I'll use Case Number 96-CF-0011913-0. This is the case with nine defendants, A through I, and it's an Orange County, Florida case that can be found at the Orange County Clerk's Office or the basic filings can be viewed online. The last time that I viewed these files in person there were six volumes, each close to 12 inches thick, and that was without all of the depositions.

The defendants in the case:

Maritza Cascante Bobber – 26 counts
Trevor Banks Campbell – 12 counts
Rhonda Liphart – 6 counts (Rhoda in my book)
Debra Watson – 2 counts (Diana in my book)
Elizabeth Helen Clifton – 12 counts
Christopher Batura – 12 counts
Robin Janeen Dickinson – 20 counts
Joseph Formosa – 14 counts
Steven Voss – 8 counts

Each defendant was charged with Racketeering, a 1st degree felony, and Conspiracy to Commit Racketeering (RICO), also a 1st degree felony. Each first degree felony is punishable by up to 30 years in a Florida prison – that's what these statutes accomplish. The MBI uses them in most prosecutions. Beyond this, every defendant except Debra Watson had at least one count, and most had many counts, of the following:

Unlawful Transport of Currency
Illegal Factoring of Credit Card Transaction
Money Laundering

Each charge, and every count, that these defendants faced, is a felony. There were no misdemeanors charged in this case. Maritza Cascante and Joseph Formosa still have a capias (warrant) for their arrests – neither showed for sentencing and both jumped bond. Debra Watson left town the minute that she heard the MBI was looking for her, and was therefore never arrested. Her charges were finally dropped in 2003. The defendants that remained made deals that included probation, jail time, years in prison – it varied, except in each case there was eventually probation. The Violation of Probation (VOP) charges began in 04/1998 and the last VOP was filed in 02/2002. I did know several of these defendants, but one that I did not know contacted me from jail while awaiting trial: Trevor Campbell related much of the information I know about the case that is not findable in the files. He was looking for help to fight the charges and had no intention of pleading guilty to anything. I felt sorry for him, and I did speak to his court-appointed public defender, but the attorney had no real clue how to fight the case and didn't sound like he intended to. At the time I was law-ignorant and there was nothing that I could do to help Trevor.

In the end, statements from the clients of the credit card transactions, including many from out-of-state that I read in the file, convinced these defendants to take the plea deal. As the appeals continued through the Florida court system, pleas to anything relating to signing-up for a merchant services account were tossed out. These files are mixed-up because of this – a judge stated that a defendant could not know that the merchant services operation handled offshore was not legal. This is a fact – I remember Debra Watson's story well. She signed-up and received a package that looked absolutely legal. I saw it. Several defendants had extremely high bonds because of the number of felonies charged and they couldn't get out of jail. Beyond this, it was the intimidation, threats of decades in prison, and court-appointed public defenders that had no clue. This was one of the biggest operations in escort service history, considering the many defendants in the list of cases and the extensive list of felonies charged to each, yet few people have any idea that it existed.

Next: The Amnesty Program

Operation Out Call (IRS)

What began as an IRS sting, Operation Out Call in the Dallas, Texas IRS office, soon evolved into Operation Plastic Empire, in Orlando, Florida, a Metropolitan Bureau of Investigation (MBI) brainstorm, which soon led to the Amnesty Program, also described in my book.

Operation Out Call was a sting the IRS dreamed-up to target escort services that accepted credit cards back in 1995. The IRS busted and then took-over Electronic Merchant Services (EMS), a company that processed credit cards for adult businesses. When it was still EMS I almost signed-up with it, with almost being the operative word. I met the EMS area representative at my office, but the paperwork required that I write-in the "type of business" and I wrote "escort service" which resulted in the rep ripping-up the contract and stating that I needed to write "tour company" or something else. I informed him that all of my business licenses, city and county, stated "escort service" so I couldn't do that. I told the guy:

"I think that's credit card factoring, or something like that, when you process credit cards by claiming to be something else. Who knows? I'm not an attorney, but what's wrong with writing the correct type of business?"

Soon he was packing his processing machine back in the box, picking-up his papers, and exiting. Quite a few people – escorts and a booker – were ticked off at me that day. We were doing little business because just about every other agency accepted credit cards.

This transpired prior to the IRS taking over EMS and signing-up escort services all over the country. I was later contacted, on several occasions, by the IRS to sign-up to accept credit cards. They had some man that sounded like a New Jersey thug calling me in an attempt to entice me, and then drilling me as to why I refused the offer. This strategy in itself gave me a clue that something was amiss. He didn't leave me alone until I told him why I'd never accept credit cards: At my agency the clients will get their privacy whether they want it or not – if I wanted the bank and the government to have client lists, I'd just fax them over a copy. The agent said that he understood my point and never called me again.

At the same time I had potential clients (really the MBI) calling me in force wanting to use credit cards, and then stating some form of "oh I understand – you are avoiding paying taxes." This continued to the point that it was absurd. Soon I was just hanging-up the phone as soon as I heard "credit card" – my ads were close to the only ads without credit card emblems. They did manage to sign-up around 15 agencies that had at least a hundred ads in area yellow pages though. I was one of very few that passed and several other agencies already accepted credit cards via other processing companies. Incidentally, EMS (and the IRS) charged 18% to process the transactions.

The MBI began working with the IRS on this operation and the agency was now privy to information concerning the credit card holder's name, address, bank etc…. For the MBI, each credit card user was now a potential state witness.

The story about IRS Operation Out Call is still available in the July 22, 1996 issue of New York Magazine that is published in Google Books. I had it embedded in the footer of this blog, but Blogger no longer allows frames, so go to the link and the story, titled "The Love Float," starts on page 30, which actually states, "The Screwball Scheme" as title: The Love Float by Daniel Green

Tomorrow: Operation Plastic Empire

Censorship and Your ISP

There are different areas of consideration in relation to net neutrality and website blocking. An Internet Service Provider (ISP) can block access to illegal websites; however, when an ISP selectively blocks IP addresses not relating to any legal issues, it becomes a First Amendment argument. Most people that live in the US have no clue that the websites that they have access to might be censored by their ISP. In the land of free speech there are some ISPs that play net nanny for you, and this is not only something that is done in China or Iran. I discuss this in the book as it is something that I encountered in the course of my own research, but at the time I was appalled – maybe I still am, although the shock has long since worn-off. The truth is that nothing surprises me anymore.

I recently came across an article, written by Nate Anderson and dated January 14, 2009, that discussed the UK ISP, Demon, accidentally censoring out the Way Back Machine on the Internet Archive website – the ISP's net nanny filtered the website into its child porn filtering system, which is not even remotely understandable to me. This website archives internet history, including the various versions of my own website from my former business. To me this is analogous with censoring which specific accounts of history I'm allowed to read.

If I sound indignant it's because I hear the US government knocking the People's Republic of China and Americans denouncing the practice in other countries, but what about the practice here in the US? Today it's not just China, Iran, Bahrain, or Cuba that practice internet censorship through ISPs – Germany, Australia, Denmark, Poland, and the UK recently announced intentions to utilize internet censorship tools. Censorship of blogs has created quite a stir in India and Wikia came-up with a list of ISPs that block Blogspot, Typepad, and Geocities, and that means that this harmless, yet hopefully informative, article could not be read by the great majority of people in India that have internet access.

At the very least, it's time to request information from your ISP on their censorship policies, but also consider telling your friends about this practice with the hope that they too will question. I know that I don't need my ISP to play net nanny and filter what I can view. At least in Bahrain the people have petitions circulating to put a stop to internet censorship. Where are all of the First Amendment attorneys and the ACLU? Where is the indignation?

The US System of Injustice

Lev Trakhtenberg survived the former U.S.S.R. and then left Russia in 1992, seeking a better life. For a while, the educated Russian found that life promoting and managing what began as a dance troupe, but he soon looked to other avenues in the entrepreneurial arena of American life. In truth it was a simple operation that violated only one law concerning making a false declaration on a visa application for the "dance troupe" participants from Voronezh, Russia. In November of 2004, Lev pled guilty to conspiracy and extortion in what the government referred to as a forced labor and trafficking of women case, and was sentenced in June of 2005 to 60 months in federal prison. The Victims of Trafficking Protection Act of 2000 was used in prosecuting the case.

The case itself was one more tragedy in the US system of injustice, though few would ever know this. At Lev's sentencing he had to apologize to the alleged victims and admit to acts that he never committed. I think this was the hardest thing for him – he didn't realize that we have show trials here in the US too, but he learned quickly. I ran down my cellular phone battery as a 2004 hurricane was hitting Cocoa Beach and I spoke to a distressed Lev for two hours. Both the man and the real picture were quite different than what was painted in the courtroom on the day of his sentencing.

Lev, his wife Viktoriya I'Lina, and co-defendant Sergey Malchikov hatched a plan to place ads in a newspaper in Voronezh seeking dancers, only the women were to dance in men's clubs in New Jersey. Each woman was made aware of what dancing in these clubs entailed, as was detailed in several statements that the defense obtained during the case and from reading the descriptive ads that were placed in the newspapers. The agreement included the business partners furnishing the women with apartments in Brooklyn, flight to and from the US, and transportation to and from the clubs. The women agreed to pay approximately $5600 for the package from their earnings as dancers. Malchikov threatened one of the women when she demanded to return to Russia before repaying this sum – enter the government. When Malchikov turned informant, the entire case was thrown at Lev, new to entrepreneurial capitalism, and perplexed by the potential prison sentence of over 100 years for his part in the venture.

The stories came out when some of the former dancers managed to escape the clutches of the N.J. and N.Y. federal prosecutors and returned to Voronezh, submitting sworn affidavits favorable to Lev. Several of the women stayed in the US and continued to work in these same clubs, during the case, that the government had them claiming Lev forced them to work in when they became government witnesses. Those that stayed were threatened with imprisonment if they did not testify to the government's satisfaction and offered visas and green cards for themselves and their relatives if they did. One of the ladies married a club patron. The choice wasn't that hard for women seeking the American dream.

As with many defendants in the US criminal justice system, Lev's money was forfeited so that he had no way to defend himself and his wife. To add to the plot, when he refused to plead guilty on the N.J. charges, federal prosecutors in N.Y. filed similar charges there and he received a double whammy! With no way to fight off both federal courts he gave up and took the deal. Though the case is long forgotten for many, Lev was recently released to community corrections and will soon be released by the Bureau of Prisons. This former defendant wishes him the best in his future pursuits in life.

Revenge of the Publishers

In apparent anger over Craigslist's low to nothing charges for the placement of classified ads, mainstream news organizations have prodded their respective representatives and contacts in law enforcement to pursue the classified ad giant relentlessly. Meanwhile, the print media attacks of Craigslist worms its way into the minds of law enforcement everywhere. Except that most, such as NY Attorney General Cuomo, conveniently forgot about the explicit ads in other publications. Buckmaster posted several links on his own blog to several of those unmentionable ads published by Village Voice Media. At least that's what it looks like, and if it looks like a duck, it usually is a duck, especially in relation to money.

Living in Orlando is almost like being on another planet, for a multitude of reasons, but for the sake of this discussion, I'm referring to escort ads and all other adult business ads. You see, here in Orlando we have the Metropolitan Bureau of Investigation (MBI), and there's no way that any print media is going to get away with publishing those unmentionable ads. If you have any doubt about this, feel free to contact the Orlando Weekly, AT&T, or R.H. Donnelly's Embarq Central Florida phonebook. Just ask any of the responding representatives about placing an ad in the "escort services" or "adult" categories, and they'll tell you that there are no such categories, if they don't hang-up on you first. A little more than a year ago the MBI arrested several ad representatives at the Orlando Weekly, and then took it a step further and charged the newspaper with racketeering. This is also how the agency managed to get those categories removed from the yellow page phonebooks in Central Florida back in October of 1996 – and they haven't existed since.

Not only do we not get to view explicit ads here in Orlando, we have these categories omitted entirely. It's like living in a fantasy land for children, which is great, unless you're an adult. Publications that have adult advertisements here get more attention than armed robbers. So Mr. Buckmaster – be careful what you say, or before you know it, the MBI might be training law enforcement personnel in a city near you.

The DC Madam Prosecution

Most of us realize that the prosecution of Jeane Palfrey, the accused DC Madam, had roots in the political arena, and was not solely based on the pursuit of forfeiture funds by the feds. The forfeiture was used to make sure she had no money to defend herself and would seek a plea deal. Then came the telephone records listing too many prominent names for the persecutors to feel comfortable. Jeane had to be silenced first and subsequently tossed in a federal prison for long enough to kill her credibility and ensure that no one was listening by the time she was released.

Having met with Jeane on several occasions prior to her trial, I can confidently assert that the lady had no intention of being taken easily. Jeane was a fighter. I think that this is why so many people couldn't believe that this was a suicide. Well, she had no defense in trial and few points were preserved for any appeal. Her appointed attorney in the criminal case, Preston Burton (of Monica Lewinsky fame) actually had the audacity to not present any defense witnesses and then offered-up a speech about how prosecutors did not prove Jeane's guilt. Even a non-attorney, such as myself, could see that this was no defense at all. I didn't need to wait for the jury verdict – I already knew the outcome.

Jeane's longtime civil attorney and friend, Montgomery Blair Sibley, advised her as best he could as prosecutors and the judge worked to discredit his motions, strategies, and intent to follow his client's directions. Let's face it – their strategy worked to disadvantage the defendant, ultimately resulting in her suicide. They got exactly what they wanted, except for the book, Why Just Her. If you really want to understand what happened to the DC Madam and develop an understanding of how Washington politics can work to bury damaging coverage, then read it. Montgomery Blair Sibley exposes the truth.

South Florida Indictments

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Whatever Happened to Ann?

In the book her name was Ann, but in reality she uses several different names, none of which is Ann. The Metropolitan Bureau of Investigation (MBI) referred to her as a witness for the state, though she witnessed nothing and simply made-up whatever the main case agent deemed fitting to the situation, so that she might weasel her way out of a credit card related mess in relation to her own escort services. Today her names are Theresa Ann Isaacs, Theresa Ann Ryssdal, Terri Rysdal, Terri Ann Raines, Theresa Ann Raines – and she's left a path of destruction and fraud through the State of Florida.

During my case she was in the appeals process of a DUI that left one woman in a wheelchair, but never had to serve the six month sentence that the Brevard County judge handed down. No, it was not overturned on appeal – Terri simply failed to appear when she was supposed to turn herself in. My investigation prior to trial revealed that Terri dialed 911/police over 160 times in just over a two-year period. She called the police on escorts that worked for her own agency, clients of her agency, her next door neighbors, a guy that she called out to detail her vehicle, her mother, her boyfriends, and then she called the police on one officer that refused to take one of her complaints, claiming that he "touched her ass". Terri called the police on anyone that got in her path, and that included me and my co-defendant, Rocky. The main case agent claims that he believed her, and still claimed this long after my trial. Was he living on Pluto?

After the trial I discovered that Terri had several warrants. One was the failure to appear to serve her six month jail sentence. One was for failure to appear for a "possession of cocaine" charge. And then there was a brand new one, for 23 counts of "theft, forgery, fraud" – the catch was that the case existed prior to my trial – the State of Florida had simply hidden it under a rock somewhere. Dusty (from the book) and I found out that Terri was working as a waitress at the Island Barbeque, on Merritt Island, and of course we went directly to the Brevard County Sheriff's Office with the information. Her bond was $250,000, and the deputies took her out in handcuffs in the middle of the lunch rush. She sat in jail for almost a week when someone (from the state no doubt) came to her rescue, the bond was reduced to 10K, and she made a deal for 3 years probation with adjudication withheld on all counts. She was released from that probation in 1 year.

I thought ole Terri had disappeared after she showed-up at my door attempting to entice my son when I was gone to work one evening, but no, she just changed names. She has a new criminal traffic case, a foreclosure, attempted to place an injunction against some woman in Melbourne, a criminal case lien in Escambia County in the Florida panhandle, and various civil judgments under her various names with varied spellings – but it's Terri. Indeed, she was of substantial assistance to the state and the feds – and now she is allowed to commit fraud related to credit and mortgages in several counties under various names, while being in arrears on child support. The State of Florida, and the MBI, must be absolutely ecstatic to refer to this piece of work as an informant and witness.

They Always Take the Deal

It shouldn't surprise me that defendants in adult business criminal prosecutions always take the deal, but it does. They start out by stating that they are innocent of the charges, or were made to give a statement "under extreme pressure" but all evidence shows their lack of knowledge as to what the escorts were doing on the calls. And then they plead guilty anyway, claiming that an attorney convinced them it was the most intelligent thing to do. It always leaves me wondering why they bothered to contact me to begin with, and if we really have so many gutless attorneys out there, or if the answer is simple: The defendant truly is guilty as charged.

I think that most people assume that I was guilty as charged, but managed to escape a lengthy prison sentence. They believe that I am the felon that got away care of a jury. I realize how unique my case was more every single day. That's not saying that I was an innocent person in every respect, though it is saying that I was not guilty of the allegations in the charging affidavit (120 pages of garbage) and criminal prosecution. It's not too often in escort service cases that a law enforcement agency needs to create the case. Usually the case is clearly spelled out.

More often than not, people believe that if police and prosecutors file a RICO case, they actually have a case and are truthful in the sworn affidavits. Why wouldn't they be? The book reveals the reasons in my case. The defendant is already judged without trial, and on the word of overzealous agents and prosecutors with an agenda. I suppose that is why I finally wrote the book – it was time to clear-up all of the misinformation and attacks of my character. It is an unparalleled and enlightening story.

Desert Divas Investigation

The ongoing Desert Divas investigation brought 19 more arrests in Maricopa County, Arizona this month alone, with the initial indictments handed down last August – by my count the arrests and indictments now surpass 90! In my opinion they will all plead guilty, but that's another story for another day. The prostitution ring has been labeled the largest in Arizona history by law enforcement, and we could expect no less from Sheriff Joe Arpaio, the man that moves illegal immigrants into a tent city and has male prisoners wearing pink underwear.

By February 2009, the client books were released, and given that this is a Maricopa County investigation, we can expect plenty more arrests. Though I'm not a fan of Arpaio and would never live in Phoenix, I do appreciate that the company owners and the telephone bookers are not the only ones targeted for prosecution. Without the client calling to begin with, and ultimately desiring and expecting prostitution services, and without the escort overstepping her contractual boundaries, there could be no crime.

Although I do not believe that prostitution should be considered a crime, as it isn't in most of Eastern and Western Europe, I must give kudos to the State of Arizona, Sheriff Arpaio, and the city and county prosecutors for equally and fairly enforcing the law. Prosecutors in the states of New York and Florida, to name two examples, and federal prosecutors in the District of Columbia, could indeed learn from them.

New York Indictments

In other news today, there were seven defendants indicted on various charges for running a prostitution ring with the business name of Room Service Entertainment. New York AG Cuomo claims in the press release that the business only operated on Craigslist, but then admits that initially the business also "advertised in The Village Voice and other local papers." Obviously it was the cost of advertising that led the company to the internet classified ad giant, Craigslist. It sounds like the pursuit of Craigslist has too much to do with the low to nothing cost of advertising on the website when we reflect on Cuomo's recent attacks of the company in the news and the headliner for this press release: ATTORNEY GENERAL CUOMO ANNOUNCES TAKEDOWN OF PROSTITUTION RING OPERATING ON CRAIGSLIST.

As for the seven defendants that face up to twenty-five years in prison for their alleged parts in this business: Not to worry, the NY AG's Office usually settles for time served and probation when you take the plea deal. The Manhattan Madam, Kristin Davis, can attest to that.

Craigslist Fights Back

Today attorneys for Craigslist filed an "action for declaratory and injunctive relief pursuant to 42 U.S.C. 1983 and the Declaratory Judgment Act, 28 U.S.C. 2201, to enjoin a threatened prosecution in violation of federal law and the U.S. Constitution and to obtain a declaration of the respective rights of the parties." The lengthy legal document can be read in its entirety on Wired.com (Threat Level).

The internet classified publisher has decided to fight the South Carolina AG and Buckmaster is doing his best to prevent any criminal legal case from being filed with this action. I'd be willing to bet that this AG packs up his rhetoric toolbox and goes home. Overzealous prosecutors and law enforcement agencies have managed to run the criminal justice system into the ground, but caution should be their first thought as states run out of money to pursue with a vengeance and violate constitutional rights in the process. Some people do fight back.

The Past

Usually when people from the past reappear in my life these days I automatically figure that they are working as an informant for some law enforcement agency, either state or federal, but today the voice from the past was one of a true friend, a long lost friend from the past. I wrote of my relationship with the classy lady from Trinidad, Natasha, in Part One of the book. She was not mentioned thereafter as she disappeared and I never saw her again after 1996. I couldn't recall Natasha's last name, making any type of search impossible.

Natasha just happened to do a Google search for my name last night, as she wondered what ever happened to me, and to her surprise, found my Google profile. She never knew of my arrest and subsequent trial, but did indeed have her own experience with the Metropolitan Bureau of Investigation (MBI). The agency threatened her with racketeering charges during "the Amnesty Program" back in early 1996. She took their advice, turned off the telephone lines, and got the hell out of Orlando.

We spoke for two hours – there was so much to reminisce about – from some famous clients of past to recounting our lives from 1996 forward. Natasha went through a hell worse than my own when she relocated to South Florida, but today she has a beautiful family and a wonderful new life and has left Florida far behind. Oddly enough, the conversation actually made me appreciate the MBI for what they do, when they're not doing it to me, here in Central Florida. I must imagine that if not for the existence of Orlando's morality police this area would be much like South Florida. Oh wait - I love South Florida!

In Pursuit of Craigslist

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The Craigslist Dilemma

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