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Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 00:00:06,016 --> 00:00:07,346 Woman: Jeane Palfrey has come to be known 2 00:00:07,383 --> 00:00:09,033 as the D.C. Madam. 3 00:00:09,066 --> 00:00:11,996 And for those listening, you owned and operated 4 00:00:12,033 --> 00:00:16,183 a legal escort service providing sexual fantasies. 5 00:00:16,216 --> 00:00:19,016 Palfrey: I had a very influential clientele 6 00:00:19,050 --> 00:00:22,070 for a substantial period of time, 13 years. 7 00:00:22,100 --> 00:00:24,380 Woman: And the question begs, who and/or what does 8 00:00:24,416 --> 00:00:27,166 the United States government believe Ms. Palfrey knows 9 00:00:27,200 --> 00:00:30,270 to have gone after her and her alone as they have? 10 00:00:30,300 --> 00:00:34,120 Palfrey: They think I know something that's of some value to them. 11 00:00:34,150 --> 00:00:36,470 I'm starting to I realize that my life will never be the same. 12 00:00:37,000 --> 00:00:40,370 This is, needless to say, a life-altering experience 13 00:00:40,400 --> 00:00:42,280 which will take me in directions 14 00:00:42,316 --> 00:00:45,396 I never thought I would go in this lifetime. 15 00:00:45,433 --> 00:00:55,203 ♪♪ 16 00:00:55,233 --> 00:01:00,323 ♪♪ 17 00:01:00,350 --> 00:01:03,070 Hi, everyone. Welcome to "How It Really Happened." 18 00:01:03,100 --> 00:01:04,280 I'm Hill Harper. 19 00:01:04,316 --> 00:01:05,466 When Deborah Jeane Palfrey 20 00:01:06,000 --> 00:01:08,320 was looking to start up a high-class escort service, 21 00:01:08,350 --> 00:01:10,100 she chose Washington, D.C. 22 00:01:10,133 --> 00:01:12,023 It had everything she was looking for, 23 00:01:12,050 --> 00:01:14,080 high-powered men with money to burn 24 00:01:14,116 --> 00:01:16,266 and certain needs to be met. 25 00:01:16,300 --> 00:01:19,370 It wasn't long before Palfrey, known as the D.C. Madam, 26 00:01:19,400 --> 00:01:23,070 had a thriving business and influential clientele, 27 00:01:23,100 --> 00:01:27,180 but when Federal Agents went after her, Palfrey fought back, 28 00:01:27,216 --> 00:01:30,266 threatening to reveal the names of her powerful clients, 29 00:01:30,300 --> 00:01:35,250 and then, in a shocking twist, she was found dead. 30 00:01:35,283 --> 00:01:39,073 Did she kill herself, or was she murdered? 31 00:01:39,100 --> 00:01:42,080 Was the D.C. Madam a woman who knew too much? 32 00:01:42,116 --> 00:01:44,316 What really happened? 33 00:01:44,350 --> 00:01:46,250 Woman: Are you a madam? 34 00:01:46,283 --> 00:01:47,273 Palfrey: I'm a business owner. 35 00:01:47,300 --> 00:01:48,330 -You're a business owner. Absolutely. 36 00:01:48,366 --> 00:01:50,476 But everybody calls you the D.C. Madam. 37 00:01:51,016 --> 00:01:52,326 I'd prefer Washington Madam or just Jeane. 38 00:01:52,366 --> 00:01:53,446 The Washington Madam. 39 00:01:56,266 --> 00:01:59,176 I was in business for 13 years. 40 00:01:59,216 --> 00:02:02,196 We went through two Clinton administrations 41 00:02:02,233 --> 00:02:05,273 and 1 1/2 Bush administrations. 42 00:02:05,300 --> 00:02:07,200 The point is that the clientele 43 00:02:07,233 --> 00:02:10,053 was very influential and very powerful. 44 00:02:10,083 --> 00:02:11,373 This is Washington, D.C. 45 00:02:11,400 --> 00:02:12,430 You know, call me a snob, 46 00:02:12,466 --> 00:02:15,196 but I think I had the best agency in town. 47 00:02:15,233 --> 00:02:18,373 It catered to the high and the mighty, so to speak. 48 00:02:18,400 --> 00:02:23,470 ♪♪ 49 00:02:24,000 --> 00:02:26,450 Police in Florida say a woman who apparently committed suicide 50 00:02:26,483 --> 00:02:30,083 near Tampa today is Deborah Jeane Palfrey, 51 00:02:30,116 --> 00:02:31,476 the so-called D.C. Madam. 52 00:02:32,016 --> 00:02:35,016 She was awaiting sentencing after being convicted last month 53 00:02:35,050 --> 00:02:37,280 of running a high-end prostitution ring. 54 00:02:37,316 --> 00:02:40,076 Zarella: Servicing some of Washington's political elite. 55 00:02:40,116 --> 00:02:42,016 But did she really commit suicide 56 00:02:42,050 --> 00:02:44,000 to avoid spending time behind bars, 57 00:02:44,033 --> 00:02:46,283 or was her death something much more sinister? 58 00:02:46,316 --> 00:02:52,476 Was it suicide or cold-blooded murder staged as suicide? 59 00:02:53,016 --> 00:02:54,226 Young: The victim of an apparent suicide 60 00:02:54,266 --> 00:02:58,176 by hanging has been identified as Debra Jeane Palfrey 61 00:02:58,216 --> 00:03:01,146 by her 76-year-old mother, Blanche Palfrey. 62 00:03:01,183 --> 00:03:04,183 Palfrey discovered her daughter had apparently hung herself 63 00:03:04,216 --> 00:03:06,316 using a nylon rope from a metal beam 64 00:03:06,350 --> 00:03:08,230 on the ceiling of the shed. 65 00:03:08,266 --> 00:03:10,166 Reporter: What did her mother do after she found her? 66 00:03:10,200 --> 00:03:11,180 Did she try to...? 67 00:03:11,216 --> 00:03:13,116 She immediately called 911. 68 00:03:13,150 --> 00:03:15,120 She's 76 years old. 69 00:03:15,150 --> 00:03:16,480 Getting her daughter down would've been 70 00:03:17,016 --> 00:03:18,226 almost impossible for her. 71 00:03:22,316 --> 00:03:24,196 And I -- 72 00:03:24,233 --> 00:03:27,133 I just started screaming, "Help me. Help me." 73 00:03:39,300 --> 00:03:41,280 When I heard that she had killed herself 74 00:03:41,316 --> 00:03:43,096 and that they said it was suicide, 75 00:03:43,133 --> 00:03:44,353 I did not believe it. 76 00:03:44,383 --> 00:03:47,373 I didn't believe it then, and I don't believe it now. 77 00:03:47,400 --> 00:03:49,470 The Debbie that I knew in high school 78 00:03:50,000 --> 00:03:53,030 would not have done that to her elderly mother. 79 00:03:53,066 --> 00:03:57,076 When Jeane Palfrey died, a lot of people were suspicious, 80 00:03:57,116 --> 00:04:00,446 and, in fact, many thought maybe she'd been killed. 81 00:04:00,483 --> 00:04:04,133 Grace: Was Palfrey threatening to come forward and name names 82 00:04:04,166 --> 00:04:08,076 of D.C. power brokers in order to get a lighter deal 83 00:04:08,116 --> 00:04:10,326 for herself in court? 84 00:04:10,366 --> 00:04:12,326 Was foul play involved in the death 85 00:04:12,366 --> 00:04:15,426 of the highly publicized D.C. Madam? 86 00:04:15,466 --> 00:04:17,366 Zarella: Pretty simple theory that some are throwing around: 87 00:04:17,400 --> 00:04:19,220 Deborah Palfrey may have had the names 88 00:04:19,250 --> 00:04:21,400 of D.C.'s elite politicians, 89 00:04:21,433 --> 00:04:23,323 maybe still has the power to take them down. 90 00:04:23,350 --> 00:04:26,420 Kathleen Koch is following this shocking story for us. 91 00:04:26,450 --> 00:04:28,350 Kathleen, what are you learning? 92 00:04:28,383 --> 00:04:32,053 Well, Wolf, those who know her are calling this a tragic end 93 00:04:32,083 --> 00:04:33,433 for a woman who all along maintained 94 00:04:33,466 --> 00:04:35,126 she'd done nothing wrong. 95 00:04:35,166 --> 00:04:37,216 I got to know Jeane Palfrey incredibly well 96 00:04:37,250 --> 00:04:39,220 in the last year of her life, 97 00:04:39,250 --> 00:04:43,450 and she was a very complicated, layered person. 98 00:04:43,483 --> 00:04:46,483 She was very empathetic. 99 00:04:47,016 --> 00:04:49,166 She had quite a sense of humor. 100 00:04:49,200 --> 00:04:52,270 And throughout all our conversations, 101 00:04:52,300 --> 00:04:57,400 her main concern was that she had been unfairly singled out, 102 00:04:57,433 --> 00:04:59,323 and she did not understand why. 103 00:04:59,350 --> 00:05:02,370 There were some 40 other escort services 104 00:05:02,400 --> 00:05:04,370 operating in the District of Columbia 105 00:05:04,400 --> 00:05:07,070 advertising in the yellow pages, 106 00:05:07,100 --> 00:05:11,030 and not one of them was prosecuted contemporaneously 107 00:05:11,066 --> 00:05:12,996 or in the 9 years since. 108 00:05:13,033 --> 00:05:16,023 The Big $64,000 Question: who knows what it is? 109 00:05:16,050 --> 00:05:18,080 Was it -- did I have a black book? 110 00:05:18,116 --> 00:05:19,326 Did they think I was really part 111 00:05:19,366 --> 00:05:22,396 of some sort of money-laundering scheme? 112 00:05:22,433 --> 00:05:24,153 I just don't know. 113 00:05:24,183 --> 00:05:26,233 I ran a very legitimate business from day one. 114 00:05:26,266 --> 00:05:27,396 It was very transparent. 115 00:05:27,433 --> 00:05:29,323 I filed taxes. 116 00:05:29,350 --> 00:05:32,250 I'm here talking to you on CNN. 117 00:05:32,283 --> 00:05:33,383 I have nothing to hide. 118 00:05:33,416 --> 00:05:36,046 I've never had anything to hide. 119 00:05:36,083 --> 00:05:38,103 Augenstein: Jeane Palfrey was always very emphatic 120 00:05:38,133 --> 00:05:40,233 that the women who were working for her 121 00:05:40,266 --> 00:05:43,146 were not allowed to break any laws. 122 00:05:43,183 --> 00:05:45,433 In other words, Palfrey said they weren't allowed 123 00:05:45,466 --> 00:05:48,096 to have illegal sex with their clients. 124 00:05:48,133 --> 00:05:50,433 Sibley: She originally had a little contract her employees signed, 125 00:05:50,466 --> 00:05:53,396 and one of the terms that they had to initial was, 126 00:05:53,433 --> 00:05:57,173 "individuals caught performing illegal activities 127 00:05:57,200 --> 00:05:59,400 of any nature will be terminated." 128 00:05:59,433 --> 00:06:04,423 In addition, no promises or claims directly or indirectly 129 00:06:04,450 --> 00:06:06,420 was ever made to a client 130 00:06:06,450 --> 00:06:08,380 that he should expect the associate 131 00:06:08,416 --> 00:06:11,326 to perform illegal acts for hire. 132 00:06:11,366 --> 00:06:13,096 The only two things that are considered 133 00:06:13,133 --> 00:06:16,073 basically illegal are prostitution, 134 00:06:16,100 --> 00:06:18,320 intercourse of any kind and oral sex. 135 00:06:18,350 --> 00:06:21,330 Otherwise, everything is absolutely legal 136 00:06:21,366 --> 00:06:24,026 for all intents and purposes. 137 00:06:24,066 --> 00:06:26,196 Ward: Jeane was very, very clear 138 00:06:26,233 --> 00:06:29,433 that she was not selling prostitution. 139 00:06:29,466 --> 00:06:32,446 She was selling what she called a fantasy-escort service. 140 00:06:32,483 --> 00:06:34,283 Palfrey: There are three types of services 141 00:06:34,316 --> 00:06:37,376 out there in the adult escort world. 142 00:06:37,416 --> 00:06:40,366 One is social service, which is $50 to $100 143 00:06:40,400 --> 00:06:44,220 an hour to accompany someone to a function or a banquet. 144 00:06:44,250 --> 00:06:47,230 The second is fantasy, which is this in-between place 145 00:06:47,266 --> 00:06:49,296 where I resided, which was truly, 146 00:06:49,333 --> 00:06:54,123 absolutely 100 percent sexual, but it was not illegal sex. 147 00:06:54,150 --> 00:06:55,450 The third is prostitution. 148 00:06:55,483 --> 00:06:57,453 King: You were providing the women, right? 149 00:06:57,483 --> 00:07:00,003 You weren't one yourself, or am I wrong? 150 00:07:00,033 --> 00:07:01,133 No, that's correct. 151 00:07:01,166 --> 00:07:04,446 I ran the business long-distance from San Francisco, 152 00:07:04,483 --> 00:07:06,083 the Bay area. 153 00:07:06,116 --> 00:07:09,076 And were most of the clients in Washington? 154 00:07:09,116 --> 00:07:12,016 They were all in Washington and some in Baltimore, 155 00:07:12,050 --> 00:07:17,100 the Washington, D.C./Baltimore corridor and surrounding areas. 156 00:07:17,133 --> 00:07:18,473 Augenstein: Jeane Palfrey's escort service 157 00:07:19,000 --> 00:07:21,330 was called Pamela Martin and Associates. 158 00:07:21,366 --> 00:07:23,176 Palfrey: I promoted it in the yellow pages 159 00:07:23,216 --> 00:07:26,066 because, you know, when I started back in 1993, 160 00:07:26,100 --> 00:07:27,100 we didn't have the Internet. 161 00:07:27,133 --> 00:07:29,103 We barely had cellphones back then, 162 00:07:29,133 --> 00:07:32,423 but mostly the yellow pages and, of course, word of mouth. 163 00:07:32,450 --> 00:07:36,000 I employed independent contractors ages 164 00:07:36,033 --> 00:07:39,073 23 to 25 years of age 165 00:07:39,100 --> 00:07:45,120 and up to age 55 with 2 to 4 years of college education. 166 00:07:45,150 --> 00:07:49,050 Many had graduate-school educations. 167 00:07:49,083 --> 00:07:51,173 Jeane Palfrey often described the women 168 00:07:51,200 --> 00:07:53,470 that she hired as the Ann Taylor look. 169 00:07:54,000 --> 00:07:58,070 Ward: Pantsuits, sensible colors, sensible shoes, 170 00:07:58,100 --> 00:08:00,150 little drop earrings. 171 00:08:00,183 --> 00:08:02,373 She did the this because it was very important 172 00:08:02,400 --> 00:08:06,130 that they not stand out in a hotel lobby. 173 00:08:06,166 --> 00:08:11,116 Both the independent contractors and the clientele were upscale 174 00:08:11,150 --> 00:08:14,050 and came from the more refined walks of life 175 00:08:14,083 --> 00:08:16,053 here in the nation's capital. 176 00:08:18,250 --> 00:08:21,000 Sibley: Jeane was actually running her operation from her house. 177 00:08:21,033 --> 00:08:22,373 She ran it from the laundry room 178 00:08:22,400 --> 00:08:24,020 where she would answer the phone and -- 179 00:08:24,050 --> 00:08:25,480 and book the clients and the customers. 180 00:08:26,016 --> 00:08:28,296 Ward: And then she would sit by the phone in her basement 181 00:08:28,333 --> 00:08:33,073 beside the washer and the dryer and wait to do business. 182 00:08:33,100 --> 00:08:35,200 That was how she did it. 183 00:08:35,233 --> 00:08:39,073 Augenstein: If a customer was looking for some companionship, 184 00:08:39,100 --> 00:08:42,130 he would dial a local number. 185 00:08:42,166 --> 00:08:44,176 She had three different numbers, a Maryland, 186 00:08:44,216 --> 00:08:46,266 a Virginia and a D.C. number. 187 00:08:46,300 --> 00:08:48,350 They would all be forwarded automatically 188 00:08:48,383 --> 00:08:51,103 to her cellphone in California. 189 00:08:51,133 --> 00:08:52,233 Ward: She would answer. 190 00:08:52,266 --> 00:08:55,026 She called herself Julia, and she would ask them 191 00:08:55,066 --> 00:08:58,296 very matter-of-factly what they were looking for. 192 00:08:58,333 --> 00:09:02,133 My God, I was on those phones every night for 13 years. 193 00:09:02,166 --> 00:09:05,396 Augenstein: Jeane Palfrey would talk with the man on the phone, 194 00:09:05,433 --> 00:09:07,473 and she would find out what he was interested in. 195 00:09:08,000 --> 00:09:09,450 Then she would call an escort. 196 00:09:09,483 --> 00:09:11,083 Sibley: Jeane would call the woman and say, 197 00:09:11,116 --> 00:09:14,076 "you have an appointment at 7 o'clock, room 201 198 00:09:14,116 --> 00:09:17,466 or this address, someone's home or apartment." 199 00:09:18,000 --> 00:09:22,300 Ward: The girls charged $300 for 90 minutes, 200 00:09:22,333 --> 00:09:28,133 but they had to send half of their "salary" 201 00:09:28,166 --> 00:09:31,466 via mail order weekly to Jeane in California. 202 00:09:32,000 --> 00:09:35,080 Palfrey: I did the best I could to keep everything running smoothly. 203 00:09:35,116 --> 00:09:36,196 I was the rock. 204 00:09:36,233 --> 00:09:38,373 I was the one who was there night after night. 205 00:09:38,400 --> 00:09:42,480 That was really what my J-O-B or my job description was. 206 00:09:43,016 --> 00:09:46,016 Sibley: For 13 years, she had operated in the District of Columbia, 207 00:09:46,050 --> 00:09:48,380 and not a single escort had ever been hassled 208 00:09:48,416 --> 00:09:52,026 or arrested or any way troubled by any of the 20 209 00:09:52,066 --> 00:09:54,296 or 30 different police agencies in town. 210 00:09:54,333 --> 00:10:00,083 But little did Jeane know her life was about to change. 211 00:10:00,116 --> 00:10:02,266 They were watching me and surveilling me 212 00:10:02,300 --> 00:10:04,180 for a very long period of time. 213 00:10:11,100 --> 00:10:15,170 By the fall of 2006, Jeane Palfrey had essentially 214 00:10:15,200 --> 00:10:18,150 shut down Pamela Martin and Associates. 215 00:10:18,183 --> 00:10:21,023 Jeane had decided to retire from the escort business 216 00:10:21,050 --> 00:10:22,480 she'd been running for 13 years. 217 00:10:23,016 --> 00:10:24,326 Jeane was tired with the business. 218 00:10:24,366 --> 00:10:26,126 It had finally taken her toll on her. 219 00:10:41,433 --> 00:10:43,173 Do you have a husband or partner? 220 00:10:43,200 --> 00:10:44,400 No. No, I'm single. 221 00:10:44,433 --> 00:10:46,003 So do you have children or a...? 222 00:10:46,033 --> 00:10:48,033 No, I have a mother and sister. 223 00:10:50,050 --> 00:10:52,380 Sibley: Jeane had always wanted to move to Europe. 224 00:10:52,416 --> 00:10:57,026 She had been exploring moving to Berlin of all places 225 00:10:57,066 --> 00:11:00,996 where the housing was elegant and very inexpensive. 226 00:11:01,033 --> 00:11:02,453 In fact, in October of 2006, 227 00:11:02,483 --> 00:11:06,203 she was in Berlin exploring housing options. 228 00:11:06,233 --> 00:11:09,303 Ward: She wanted to buy an apartment there. 229 00:11:09,333 --> 00:11:11,473 She had found one she liked, 230 00:11:12,000 --> 00:11:15,180 and she really wanted to begin a new life 231 00:11:15,216 --> 00:11:17,146 there far away from America. 232 00:11:17,183 --> 00:11:20,233 I was off, you know, pursuing what I thought 233 00:11:20,266 --> 00:11:21,446 would be the rest of my life. 234 00:11:21,483 --> 00:11:25,053 Sibley: She was in Germany getting ready to fly back 235 00:11:25,083 --> 00:11:28,303 when she got notice from one of her brokerage firms saying, 236 00:11:28,333 --> 00:11:30,133 "Your account has been frozen." 237 00:11:30,166 --> 00:11:32,316 Palfrey: I opened my Charles Schwab account 238 00:11:32,350 --> 00:11:36,050 to do a little day trading, and I couldn't gain access. 239 00:11:36,083 --> 00:11:37,153 Mm-Hmm. 240 00:11:37,183 --> 00:11:39,203 And I explained to the customer-service rep 241 00:11:39,233 --> 00:11:43,133 my dilemma, and he put me on hold for about 5 or 10 minutes 242 00:11:43,166 --> 00:11:46,016 and came back 10 minutes later and informed me that, 243 00:11:46,050 --> 00:11:48,220 "Ma'am, your property has been seized 244 00:11:48,250 --> 00:11:50,450 by the United States Department of Treasury. 245 00:11:50,483 --> 00:11:53,383 I advise you to get an attorney." 246 00:11:53,416 --> 00:11:56,196 I'm 6,000 miles away on another continent, 247 00:11:56,233 --> 00:11:59,053 nine time zones difference. 248 00:11:59,083 --> 00:12:02,083 I'm absolutely, I think, having a nervous breakdown. 249 00:12:02,116 --> 00:12:05,226 By this point, the government had seized $1 million 250 00:12:05,266 --> 00:12:06,996 worth of Palfrey's assets. 251 00:12:07,033 --> 00:12:10,173 They used a legal tool called Civil Asset Forfeiture. 252 00:12:10,200 --> 00:12:14,270 Civil Forfeiture is, whenever you have a criminal enterprise, 253 00:12:14,300 --> 00:12:16,270 the government can go after the money 254 00:12:16,300 --> 00:12:18,430 that you've gotten as a result of that enterprise, 255 00:12:18,466 --> 00:12:21,376 seize it, convict you and then take it. 256 00:12:21,416 --> 00:12:24,466 And it started out historically that it was part 257 00:12:25,000 --> 00:12:26,200 of the RICO statute, 258 00:12:26,233 --> 00:12:31,053 right, Racketeering Influenced Corrupt Organization Act. 259 00:12:31,083 --> 00:12:32,233 Augenstein: Jeane Palfrey had no idea 260 00:12:32,266 --> 00:12:34,326 that the government had been watching her 261 00:12:34,366 --> 00:12:36,996 and investigating her and tracking her 262 00:12:37,033 --> 00:12:38,373 for more than 2 years by then. 263 00:12:38,400 --> 00:12:40,330 I had no idea what was happening. 264 00:12:40,366 --> 00:12:43,026 After I talked to the Charles Schwab agent, 265 00:12:43,066 --> 00:12:45,266 I found out that the FED simultaneously 266 00:12:45,300 --> 00:12:47,370 while I was making the call to Schwab 267 00:12:47,400 --> 00:12:51,080 were back in California at 8 A.M. In the morning 268 00:12:51,116 --> 00:12:53,246 raiding my house. 269 00:12:53,283 --> 00:12:55,033 Sibley: Jeane's house was on the market, 270 00:12:55,066 --> 00:12:57,326 and as a result, two undercover agents from the IRS 271 00:12:57,366 --> 00:13:00,146 and the postal service contacted her realtor and said, 272 00:13:00,183 --> 00:13:01,373 "We'd like to the see the house. 273 00:13:01,400 --> 00:13:02,470 We're interested in buying it." 274 00:13:03,000 --> 00:13:05,180 On the 3rd of October, Tuesday, 275 00:13:05,216 --> 00:13:07,416 they are calling my real estate agent 276 00:13:07,450 --> 00:13:12,070 trying to obtain entry to my property. 277 00:13:12,100 --> 00:13:14,030 The realtor wasn't able to accommodate them, 278 00:13:14,066 --> 00:13:15,416 and shortly thereafter, the government went in 279 00:13:15,450 --> 00:13:18,220 and got a search warrant for the house. 280 00:13:18,250 --> 00:13:21,000 The most significant thing they seized in the search 281 00:13:21,033 --> 00:13:24,083 was the applications of 400 or 500 escorts 282 00:13:24,116 --> 00:13:27,066 who worked for Jeane during that 13-year period, 283 00:13:27,100 --> 00:13:28,270 and what it gave the government 284 00:13:28,300 --> 00:13:31,050 was the identities of those escorts. 285 00:13:31,083 --> 00:13:33,033 They were hoping to find the black book. 286 00:13:33,066 --> 00:13:35,126 That was why they were raiding Jeane's house. 287 00:13:35,166 --> 00:13:36,146 They thought, "Great. 288 00:13:36,183 --> 00:13:37,253 We're going to go into her house. 289 00:13:37,283 --> 00:13:39,033 She's going to have a list of everybody 290 00:13:39,066 --> 00:13:41,476 that ever was a customer," and they didn't find it. 291 00:13:42,016 --> 00:13:45,326 Palfrey: Right then and there confiscated every single asset 292 00:13:45,366 --> 00:13:47,416 that I owned, bank accounts, retirement accounts, 293 00:13:47,450 --> 00:13:51,400 property, everything, left me virtually penniless. 294 00:13:51,433 --> 00:13:54,383 On October 4th, 2006, 295 00:13:54,416 --> 00:13:57,376 a full 2 months after the business 296 00:13:57,416 --> 00:14:00,346 had been voluntarily closed by me, 297 00:14:00,383 --> 00:14:04,173 I came to learn I had been the target of a 2-1/2-year 298 00:14:04,200 --> 00:14:08,370 investigation by the Internal Revenue Service. 299 00:14:08,400 --> 00:14:10,430 This whole case started with a civil case 300 00:14:10,466 --> 00:14:12,126 against Jeane Palfrey. 301 00:14:12,166 --> 00:14:15,176 The woman who thousands of men may have feared 302 00:14:15,216 --> 00:14:21,316 for what she knew they did that they didn't want others to know. 303 00:14:21,350 --> 00:14:24,420 Augenstein: And prosecutors were using their leverage 304 00:14:24,450 --> 00:14:27,130 that they had to say, "Look. 305 00:14:27,166 --> 00:14:28,446 You better agree to this, 306 00:14:28,483 --> 00:14:31,223 or we'll look for stronger charges." 307 00:14:31,250 --> 00:14:33,480 Palfrey: I was told, unless I pled, 308 00:14:34,016 --> 00:14:35,446 they were going to charge with me RICO. 309 00:14:35,483 --> 00:14:37,323 RICO is not applicable here. 310 00:14:37,350 --> 00:14:39,220 Nonetheless, this was their threat. 311 00:14:39,250 --> 00:14:40,450 "You either plea, or we'll now 312 00:14:40,483 --> 00:14:43,223 even do more horrible things to you." 313 00:14:43,250 --> 00:14:46,000 Sibley: What gave the government the authority to proceed 314 00:14:46,033 --> 00:14:50,053 in this matter was that Jeane was using the U.S. Mails 315 00:14:50,083 --> 00:14:52,273 to transfer money the government believe 316 00:14:52,300 --> 00:14:54,470 they could prove came from criminal behavior, 317 00:14:55,000 --> 00:14:58,200 so for example, if Jeane had only operated in Maryland 318 00:14:58,233 --> 00:15:00,283 and never had an escort leave the state 319 00:15:00,316 --> 00:15:02,216 and never sent money out of the state, 320 00:15:02,250 --> 00:15:03,480 the federal government would not have had the ability 321 00:15:04,016 --> 00:15:05,276 to charge her with anything. 322 00:15:05,316 --> 00:15:08,416 Augenstein: Jeane Palfrey was very hardheaded. 323 00:15:08,450 --> 00:15:14,020 In her mind, she was walking the line between what was legal 324 00:15:14,050 --> 00:15:15,300 and what was not legal, 325 00:15:15,333 --> 00:15:18,173 and she would be damned if she was going 326 00:15:18,200 --> 00:15:21,200 to give one penny of her money to the government. 327 00:15:21,233 --> 00:15:24,453 I told them at that point, "Let's go. Let's go. 328 00:15:24,483 --> 00:15:27,073 You're not getting one penny of my life savings 329 00:15:27,100 --> 00:15:28,470 and not 1 minute of my liberty." 330 00:15:29,000 --> 00:15:31,070 Sibley: Once Jeane said, "No, I'm not settling 331 00:15:31,100 --> 00:15:32,350 the Civil-Forfeiture case," 332 00:15:32,383 --> 00:15:34,183 the government proceeded to indict her 333 00:15:34,216 --> 00:15:36,316 on a range of criminal charges. 334 00:15:36,350 --> 00:15:38,180 They brought charges against her 335 00:15:38,216 --> 00:15:40,446 for racketeering influenced corrupt organization, 336 00:15:40,483 --> 00:15:43,153 for money laundering, for wire fraud 337 00:15:43,183 --> 00:15:46,253 because the money was being sent over the interstate wires. 338 00:15:46,283 --> 00:15:48,383 This is money that came directly out of the pockets 339 00:15:48,416 --> 00:15:51,176 of some of Washington's big power players. 340 00:15:51,216 --> 00:15:53,396 Some of the customers that used the service 341 00:15:53,433 --> 00:15:56,083 were members of the government, 342 00:15:56,116 --> 00:15:58,996 were high-ranking and powerful people. 343 00:15:59,033 --> 00:16:01,453 This was the first time that Federal prosecutors 344 00:16:01,483 --> 00:16:04,073 in D.C. had ever prosecuted anyone 345 00:16:04,100 --> 00:16:07,270 in a prostitution-related case 346 00:16:07,300 --> 00:16:10,000 using the RICO or the racketeering laws, 347 00:16:10,033 --> 00:16:14,133 so this was a very serious crime that she faced. 348 00:16:14,166 --> 00:16:15,276 Nobody in this country 349 00:16:15,316 --> 00:16:19,026 who has run a "benign escort service" 350 00:16:19,066 --> 00:16:21,076 has ever been charged with racketeering. 351 00:16:21,116 --> 00:16:25,066 I mean, racketeering is Tony Soprano territory. 352 00:16:25,100 --> 00:16:27,270 Little more space. It's just the phone is there. 353 00:16:27,300 --> 00:16:32,220 Throughout all this, Jeane Palfrey stuck to her line, 354 00:16:32,250 --> 00:16:35,000 which was, "I've done nothing wrong. 355 00:16:35,033 --> 00:16:37,023 My business is legal. 356 00:16:37,050 --> 00:16:39,230 It is not a prostitution service. 357 00:16:39,266 --> 00:16:41,316 It is a fantasy-sex service." 358 00:16:41,350 --> 00:16:43,230 It seemed as if they were charging me 359 00:16:43,266 --> 00:16:45,126 with running an escort service, 360 00:16:45,166 --> 00:16:47,216 which I wholeheartedly admit that I did run. 361 00:16:47,250 --> 00:16:48,250 Mm-hmm. 362 00:16:48,283 --> 00:16:49,433 The sticking point is whether or not 363 00:16:49,466 --> 00:16:54,076 it was an illegal sexual service or a legal sexual service. 364 00:16:54,116 --> 00:16:55,246 I'm prepared to take them on. 365 00:16:55,283 --> 00:16:57,423 I hate to sound like I'm Clint Eastwood or Rambo here 366 00:16:57,450 --> 00:16:59,300 because I'm hardly either one. 367 00:16:59,333 --> 00:17:01,153 I'm just an average, ordinary person, 368 00:17:01,183 --> 00:17:04,483 but I'm not going to let these people get away with it. 369 00:17:05,016 --> 00:17:07,366 Deborah Jeane Palfrey was a fighter from day one. 370 00:17:07,400 --> 00:17:10,370 I believe there is something very, very rotten 371 00:17:10,400 --> 00:17:13,070 at the core of my circumstance. 372 00:17:13,100 --> 00:17:16,280 I believe what motivated that fight was that she knew 373 00:17:16,316 --> 00:17:18,346 she had a secret weapon. 374 00:17:18,383 --> 00:17:21,203 Augenstein: The phone numbers of all the customers 375 00:17:21,233 --> 00:17:23,133 that had ever used the service. 376 00:17:23,166 --> 00:17:26,026 Grace: Senators, think tank, military strategists, 377 00:17:26,066 --> 00:17:28,366 corporate CEOs, military -- 378 00:17:28,400 --> 00:17:30,420 Of course, little did they know Jeane Palfrey 379 00:17:30,450 --> 00:17:32,100 was going try to track them down. 380 00:17:32,133 --> 00:17:36,003 ♪♪ 381 00:17:39,450 --> 00:17:43,020 In 2006, Federal agents raided Jeane Palfrey's home, 382 00:17:43,050 --> 00:17:44,400 and, I mean, they took basically anything 383 00:17:44,433 --> 00:17:46,273 they could find of value 384 00:17:46,300 --> 00:17:50,130 except for some boxes that were left in the basement. 385 00:17:50,166 --> 00:17:54,996 ♪♪ 386 00:17:55,033 --> 00:17:57,273 In those boxes was the telephone number 387 00:17:57,300 --> 00:18:00,400 of every single customer who had called her during the 13 years 388 00:18:00,433 --> 00:18:04,373 she had operated the escort service. 389 00:18:04,400 --> 00:18:06,380 Reporter: Remember she ran a high-priced 390 00:18:06,416 --> 00:18:08,126 prostitution ring that catered 391 00:18:08,166 --> 00:18:12,216 to D.C.'s elite lawmakers, politicians. 392 00:18:12,250 --> 00:18:14,330 So Jeane Palfrey had all of these numbers 393 00:18:14,366 --> 00:18:16,346 of high-powered people in D.C. 394 00:18:16,383 --> 00:18:20,223 Now though she had to connect names with those numbers. 395 00:18:20,250 --> 00:18:21,420 Jeane thought that if she could 396 00:18:21,450 --> 00:18:24,480 put some of her clients on the stand, 397 00:18:25,016 --> 00:18:28,026 they would be very sympathetic to her 398 00:18:28,066 --> 00:18:31,246 and that they would endorse what she was saying, 399 00:18:31,283 --> 00:18:34,373 which was that this was not a prostitution racket. 400 00:18:34,400 --> 00:18:39,120 This really was all about massages and fantasy. 401 00:18:39,150 --> 00:18:44,000 To go through those phone numbers was a real undertaking. 402 00:18:46,200 --> 00:18:48,080 We had no resources. 403 00:18:48,116 --> 00:18:50,276 They actually gave the phone records to ABC News 404 00:18:50,316 --> 00:18:53,396 because apparently ABC had the manpower they didn't, 405 00:18:53,433 --> 00:18:55,483 so they could do a reverse search 406 00:18:56,016 --> 00:18:59,226 to figure out who belonged to the numbers. 407 00:18:59,266 --> 00:19:03,226 The decision ultimately was made to hand over the records 408 00:19:03,266 --> 00:19:05,476 to a responsible media outlet, 409 00:19:06,016 --> 00:19:08,416 in this case, ABC News in New York. 410 00:19:08,450 --> 00:19:13,050 I do expect their reporting to help identify 411 00:19:13,083 --> 00:19:15,253 potential witnesses for my defense. 412 00:19:25,200 --> 00:19:34,050 While ABC were plowing through Jeane's phone records, 413 00:19:34,083 --> 00:19:38,073 two high-level names in government actually got leaked. 414 00:19:38,100 --> 00:19:41,170 Two of the newsworthy names were Randall Tobias 415 00:19:41,200 --> 00:19:44,170 with the State Department and Harlan Ullman, 416 00:19:44,200 --> 00:19:46,350 who is a well-known defense strategist. 417 00:19:46,383 --> 00:19:50,453 Sanchez: Ullman said the allegations didn't merit a response. 418 00:19:50,483 --> 00:19:54,003 Ward: Randall Tobias admitted he had used 419 00:19:54,033 --> 00:19:56,353 Pamela Martin, Jeane's D.C. service, 420 00:19:56,383 --> 00:20:01,233 but he said he'd only ever had massages or a massage. 421 00:20:01,266 --> 00:20:05,166 He completely denied ever having illegal sex 422 00:20:05,200 --> 00:20:08,230 but promptly resigned from his position. 423 00:20:08,266 --> 00:20:11,416 Friday's admission by Mr. Tobias that he engaged 424 00:20:11,450 --> 00:20:15,330 in legal activity while a customer of my firm 425 00:20:15,366 --> 00:20:18,266 supports my position all along 426 00:20:18,300 --> 00:20:22,400 that I operated a sexual albeit legal business 427 00:20:22,433 --> 00:20:27,483 for 13 years from 1993 to 2006. 428 00:20:28,016 --> 00:20:29,466 As you may imagine, 429 00:20:30,000 --> 00:20:33,180 while everyone is waiting for ABC 430 00:20:33,216 --> 00:20:37,316 to come out with their findings from Jeane's phone records, 431 00:20:37,350 --> 00:20:41,130 Washington goes into turmoil, panic. 432 00:20:41,166 --> 00:20:42,476 Who's going to be outed? 433 00:20:58,350 --> 00:21:00,030 ABC's "20/20" is going to air 434 00:21:00,066 --> 00:21:02,276 a special television event tomorrow night 435 00:21:02,316 --> 00:21:05,026 in which seven names on the infamous D.C. Madam's list 436 00:21:05,066 --> 00:21:06,376 is going to be revealed. 437 00:21:06,416 --> 00:21:09,066 So we were very enthusiastic before the broadcast 438 00:21:09,100 --> 00:21:11,150 that we were going to we have the people identified, 439 00:21:11,183 --> 00:21:14,123 which would give us the position to perhaps negotiate 440 00:21:14,150 --> 00:21:16,450 a resolution that Jeane could accept. 441 00:21:19,416 --> 00:21:25,226 Then the show airs in May 2007. 442 00:21:36,183 --> 00:21:37,303 There were no members of Congress 443 00:21:37,333 --> 00:21:39,233 that we could find in these phone records, 444 00:21:39,266 --> 00:21:41,126 no White House officials. 445 00:21:41,166 --> 00:21:44,066 Quite frankly, but for the few exceptions, 446 00:21:44,100 --> 00:21:47,150 most of the men on this list just aren't newsworthy. 447 00:21:47,183 --> 00:21:50,103 All they listed was the type or professions 448 00:21:50,133 --> 00:21:52,133 of the individuals using the service. 449 00:21:52,166 --> 00:21:54,146 They didn't list any specific names. 450 00:22:08,333 --> 00:22:13,323 The "20/20" show actually became such a big deal 451 00:22:13,350 --> 00:22:17,120 for not saying anything that it became a TV punch line. 452 00:22:17,150 --> 00:22:21,230 Hey, John, boy, close call this weekend. 453 00:22:21,266 --> 00:22:24,276 I don't -- I don't know what you're talking about there. 454 00:22:24,316 --> 00:22:26,066 Don't play coy with me, Stewart. 455 00:22:26,100 --> 00:22:27,380 The D.C. Madam list comes out. 456 00:22:27,416 --> 00:22:31,046 ABC News decides not to name any names. 457 00:22:31,083 --> 00:22:33,383 Pha-shew. 458 00:22:33,416 --> 00:22:35,346 We really dodged a bullet there, hey, buddy? 459 00:22:35,383 --> 00:22:39,003 High five! 460 00:22:39,033 --> 00:22:41,183 Stephen, there's -- I wasn't on that list. 461 00:22:41,216 --> 00:22:43,326 Were you on that list? 462 00:22:43,366 --> 00:22:47,046 No, course not. 463 00:22:47,083 --> 00:22:50,433 But obviously Jeane Palfrey and Blair Sibley 464 00:22:50,466 --> 00:22:53,176 didn't find anything to laugh about. 465 00:22:53,216 --> 00:22:56,196 They were really dismayed. 466 00:22:56,233 --> 00:22:59,033 Jeane and I were livid and realized 467 00:22:59,066 --> 00:23:01,226 that we could not count on ABC News. 468 00:23:01,266 --> 00:23:03,166 So then they decide they're going to reach out 469 00:23:03,200 --> 00:23:04,330 to an investigative journalist, 470 00:23:04,366 --> 00:23:07,246 and they get in touch with someone named Dan Moldea. 471 00:23:07,283 --> 00:23:10,123 Sibley: An investigator and someone I knew and respected 472 00:23:10,150 --> 00:23:13,480 that would also help us find out who these people were. 473 00:23:14,016 --> 00:23:14,996 Moldea: My memoir is called 474 00:23:15,033 --> 00:23:16,253 "Confessions of a Guerrilla Writer: 475 00:23:16,283 --> 00:23:18,273 Adventures in the Jungles of Crime, 476 00:23:18,300 --> 00:23:20,280 Politics, and Journalism." 477 00:23:20,316 --> 00:23:23,216 But I sat down at my desk and at my computer, 478 00:23:23,250 --> 00:23:31,400 and I ran searches, reverse searches on each phone number 479 00:23:31,433 --> 00:23:33,123 that I had in the records. 480 00:23:33,150 --> 00:23:34,350 It was a very grueling process, 481 00:23:34,383 --> 00:23:38,053 and I went through hundreds of numbers. 482 00:23:38,083 --> 00:23:39,323 I had to stop someplace because it was 483 00:23:39,350 --> 00:23:44,080 such a time-consuming process, and so I decided arbitrarily 484 00:23:44,116 --> 00:23:47,246 just to stop February 27th, 2001. 485 00:23:47,283 --> 00:23:49,353 On that the day, in the phone records, 486 00:23:49,383 --> 00:23:52,323 I saw a telephone number I had not seen before. 487 00:23:52,350 --> 00:23:55,200 I took the number. I ran it through the database. 488 00:23:55,233 --> 00:23:58,103 It came up David Vitter, 489 00:23:58,133 --> 00:24:02,203 a Republican Senator from Louisiana. 490 00:24:02,233 --> 00:24:04,473 This gentleman was a Christian right, 491 00:24:05,000 --> 00:24:08,100 moral majority, sanctity of marriage act. 492 00:24:08,133 --> 00:24:11,303 Sibley: This guy was a classic hypocrite. 493 00:24:11,333 --> 00:24:13,473 So Dan alerted us fairly shortly thereafter 494 00:24:14,000 --> 00:24:16,400 that he had found Senator David Vitter's name 495 00:24:16,433 --> 00:24:18,373 repeatedly in the phone records. 496 00:24:18,400 --> 00:24:22,120 We were gratified, enthusiastic that 497 00:24:22,150 --> 00:24:25,330 we had very high-level people using the escort service. 498 00:24:25,366 --> 00:24:27,326 Happening now, a senator and his wife 499 00:24:27,366 --> 00:24:30,226 come from the shadows of the D.C. Madam scandal. 500 00:24:30,266 --> 00:24:32,316 When David Vitter did his press conference 501 00:24:32,350 --> 00:24:35,400 where he essentially confessed, I was not surprised. 502 00:24:35,433 --> 00:24:37,083 I just, you know, I just assumed 503 00:24:37,116 --> 00:24:39,096 he was going to try to get ahead of the story somehow. 504 00:24:39,133 --> 00:24:44,353 I want to again offer my deep, sincere apologies to all those 505 00:24:44,383 --> 00:24:50,003 I have let down and disappointed with these actions from my past. 506 00:24:50,033 --> 00:24:55,253 I am completely responsible, and I'm so very, very sorry. 507 00:24:55,283 --> 00:24:59,283 David Vitter, after he did his mea culpa, 508 00:24:59,316 --> 00:25:02,216 was able to keep working on Capitol Hill. 509 00:25:02,250 --> 00:25:06,270 He was reelected and -- and kept on with his job. 510 00:25:06,300 --> 00:25:08,480 So of course what you had here 511 00:25:09,016 --> 00:25:14,176 was the men able to get on with their lives. 512 00:25:14,216 --> 00:25:16,466 I mean, one might have had to resign his job, 513 00:25:17,000 --> 00:25:18,380 but they're still invited for dinner. 514 00:25:18,416 --> 00:25:21,166 Meantime, Jeane Palfrey is fighting for her life 515 00:25:21,200 --> 00:25:23,080 because she is about to go to trial, 516 00:25:23,116 --> 00:25:25,116 and if that trial doesn't go her way, 517 00:25:25,150 --> 00:25:28,270 there's a good chance she's going to prison. 518 00:25:28,300 --> 00:25:31,050 I'm facing perhaps the remainder of my life 519 00:25:31,083 --> 00:25:32,433 in a federal penitentiary. 520 00:25:32,466 --> 00:25:34,996 This is not a misdemeanor crime 521 00:25:35,033 --> 00:25:36,353 by any stretch of the imagination. 522 00:25:42,016 --> 00:25:44,066 Welcome back to "How It Really Happened." 523 00:25:44,100 --> 00:25:46,320 Deborah Jeane Palfrey was working against the odds 524 00:25:46,350 --> 00:25:49,120 to find clients who'd testify on her behalf 525 00:25:49,150 --> 00:25:52,320 and say they were not paying for sex with these women. 526 00:25:52,350 --> 00:25:54,000 Federal prosecutors, meanwhile, 527 00:25:54,033 --> 00:25:55,473 were tracking down her former escorts 528 00:25:56,000 --> 00:25:59,370 to take the stand and say their clients did, 529 00:25:59,400 --> 00:26:02,470 and Jeane Palfrey's future was hanging in the balance. 530 00:26:03,000 --> 00:26:08,030 ♪♪ 531 00:26:08,066 --> 00:26:09,396 In the spring of 2008, 532 00:26:09,433 --> 00:26:13,183 Jeane Palfrey's trial got underway. 533 00:26:13,216 --> 00:26:16,366 The whole Jeane Palfrey story was one of a woman 534 00:26:16,400 --> 00:26:19,030 who supposedly had rich 535 00:26:19,066 --> 00:26:22,996 and powerful customers in Washington. 536 00:26:23,033 --> 00:26:24,303 People are coming forward. 537 00:26:24,333 --> 00:26:26,483 People have reached out to the defense 538 00:26:27,016 --> 00:26:28,246 with helpful information. 539 00:26:28,283 --> 00:26:30,203 So understandably it came as a big surprise 540 00:26:30,233 --> 00:26:31,423 when Jeane Palfrey's attorney 541 00:26:31,450 --> 00:26:34,250 didn't call a single former client, 542 00:26:34,283 --> 00:26:37,403 not one, to testify that they hadn't had sex 543 00:26:37,433 --> 00:26:39,283 with Palfrey's escorts. 544 00:26:42,066 --> 00:26:44,996 Sibley: The reason I believe Preston Burton 545 00:26:45,033 --> 00:26:46,283 didn't pursue that defense 546 00:26:46,316 --> 00:26:50,016 is that he honestly believed he had a very good shot 547 00:26:50,050 --> 00:26:53,220 at creating reasonable doubt as to whether Jeane knew 548 00:26:53,250 --> 00:26:56,230 that sex was going on between her escorts 549 00:26:56,266 --> 00:26:59,146 and the customers that were contacting her. 550 00:26:59,183 --> 00:27:02,373 Defense strategy was, Jeane was willfully blind 551 00:27:02,400 --> 00:27:06,330 to what was going on between the customers and her escorts. 552 00:27:06,366 --> 00:27:09,166 Ward: The prosecutors' biggest weapon 553 00:27:09,200 --> 00:27:12,280 was that they had all these women 554 00:27:12,316 --> 00:27:14,396 who had worked for Jeane Palfrey 555 00:27:14,433 --> 00:27:17,433 who were prepared to testify against her. 556 00:27:17,466 --> 00:27:22,096 Augenstein: These escorts came into court, most of them unwillingly 557 00:27:22,133 --> 00:27:24,373 but with immunity from the prosecution 558 00:27:24,400 --> 00:27:28,030 and told what happened when they worked as escorts 559 00:27:28,066 --> 00:27:30,316 for Jeane Palfrey. 560 00:27:30,350 --> 00:27:34,200 The escorts testified that Jeane Palfrey called them. 561 00:27:34,233 --> 00:27:36,153 They had sex. 562 00:27:36,183 --> 00:27:38,083 They got paid. 563 00:27:38,116 --> 00:27:41,226 They sent a portion of that money back to Jeane Palfrey 564 00:27:41,266 --> 00:27:44,166 via money order, and that was basically the story 565 00:27:44,200 --> 00:27:48,030 that was repeated by the escorts that came in. 566 00:27:48,066 --> 00:27:50,396 One was asked how often she ended up 567 00:27:50,433 --> 00:27:52,323 having sex with a client. 568 00:27:52,350 --> 00:27:55,020 She said 90 percent of the time. 569 00:27:55,050 --> 00:27:57,370 But what Jeane had up her sleeve 570 00:27:57,400 --> 00:28:02,230 were the contracts that all of her employees had to sign. 571 00:28:02,266 --> 00:28:06,426 Palfrey: Each subcontractor signed a legally binding contract 572 00:28:06,466 --> 00:28:09,476 at the onset of employment stating she would not, 573 00:28:10,016 --> 00:28:13,216 among other things, engage in illegal behavior 574 00:28:13,250 --> 00:28:17,000 while employed at Pamela Martin and Associates. 575 00:28:17,033 --> 00:28:20,023 On cross-examination, Palfrey's defense attorney 576 00:28:20,050 --> 00:28:23,480 questioned some of the escorts about breaking those contracts. 577 00:28:24,016 --> 00:28:26,026 I thought the defense did a pretty good job 578 00:28:26,066 --> 00:28:27,366 of raising the possibility 579 00:28:27,400 --> 00:28:31,450 that she just sent these escorts to these meetings, 580 00:28:31,483 --> 00:28:36,023 and they did what they wanted with the customers. 581 00:28:36,050 --> 00:28:39,470 I thought that the defense raised the possibility 582 00:28:40,000 --> 00:28:42,170 that she would get off. 583 00:28:42,200 --> 00:28:44,370 But in the end, it became clear to the court that, 584 00:28:44,400 --> 00:28:48,200 yes, Palfrey's escorts did have illegal sex with her clients, 585 00:28:48,233 --> 00:28:50,423 and she knew about it. 586 00:28:50,450 --> 00:28:55,400 One of them even went so far as to saying, "I asked Jeane, 587 00:28:55,433 --> 00:28:57,373 'Who provides the condoms? 588 00:28:57,400 --> 00:28:59,300 Will the client have the condoms?' 589 00:28:59,333 --> 00:29:01,323 And she said, 'No, you need to bring them.'" 590 00:29:01,350 --> 00:29:05,150 These are fairly damning things for Jeane. 591 00:29:10,300 --> 00:29:13,280 When the trial wrapped up, it didn't take long for the jury 592 00:29:13,316 --> 00:29:15,466 to decide Jeane Palfrey's fate. 593 00:29:16,000 --> 00:29:17,230 Jeane Palfrey was found guilty 594 00:29:17,266 --> 00:29:21,146 of all the criminal charges against her. 595 00:29:21,183 --> 00:29:23,353 She ran a high-Priced escort service in Washington, 596 00:29:23,383 --> 00:29:27,033 and now the so-called D.C. Madam is paying for it. 597 00:29:27,066 --> 00:29:29,446 Deborah Jeane Palfrey was convicted on all counts today 598 00:29:29,483 --> 00:29:31,323 connected to that escort service 599 00:29:31,350 --> 00:29:33,430 which catered to the rich and powerful. 600 00:29:33,466 --> 00:29:38,166 Guilty of racketeering, mail fraud and money laundering. 601 00:29:38,200 --> 00:29:41,200 Nobody else in Washington, D.C., has been targeted, 602 00:29:41,233 --> 00:29:42,383 none of the other agencies, 603 00:29:42,416 --> 00:29:44,116 none of the other independents. 604 00:29:44,150 --> 00:29:46,020 It was only me. 605 00:29:46,050 --> 00:29:49,250 The verdict was understandably devastating for Palfrey, 606 00:29:49,283 --> 00:29:52,203 but there was still a chance for an appeal. 607 00:29:52,233 --> 00:29:54,453 Sibley: I had been brought back in to work on the appeal, 608 00:29:54,483 --> 00:29:57,003 and we had some very strong appellate issues. 609 00:29:57,033 --> 00:30:01,103 I was very confident that that conviction would be overturned, 610 00:30:01,133 --> 00:30:02,433 so I was actually working with her 611 00:30:02,466 --> 00:30:04,326 and talking to her on a daily basis about 612 00:30:04,366 --> 00:30:08,026 what we were doing and trying to give her good upbeat news 613 00:30:08,066 --> 00:30:09,476 and the whole nine yards. 614 00:30:10,016 --> 00:30:13,346 Even though Jeane Palfrey faced about 55 years, 615 00:30:13,383 --> 00:30:15,003 the conventional wisdom 616 00:30:15,033 --> 00:30:17,403 was that she would only serve about 6 years. 617 00:30:17,433 --> 00:30:23,233 ♪♪ 618 00:30:23,266 --> 00:30:26,476 At approximately 11:01 A.M., Tarpon Springs Fire Rescue 619 00:30:27,016 --> 00:30:30,216 have pronounced Debra Jeane Palfrey deceased. 620 00:30:30,250 --> 00:30:31,370 Are there any questions? 621 00:30:31,400 --> 00:30:33,150 So there actually were a lot of questions. 622 00:30:33,183 --> 00:30:36,353 Police did say that Palfrey committed suicide, 623 00:30:36,383 --> 00:30:41,073 but that didn't stop people from suspecting foul play. 624 00:30:41,100 --> 00:30:47,100 There was widespread speculation that she harbored some secrets 625 00:30:47,133 --> 00:30:50,023 about some very powerful people here in Washington. 626 00:30:50,050 --> 00:30:54,030 ♪♪ 627 00:30:56,216 --> 00:31:00,416 ♪♪ 628 00:31:00,450 --> 00:31:02,200 Man: The body of Deborah Jeane Palfrey 629 00:31:02,233 --> 00:31:03,303 was found by her mother 630 00:31:03,333 --> 00:31:06,003 in a small storage shed outside her mobile home. 631 00:31:06,033 --> 00:31:08,283 Woman: She was found hanged yesterday at her mother's home, 632 00:31:08,316 --> 00:31:13,166 and investigators say they have no doubt it was a suicide. 633 00:31:13,200 --> 00:31:17,020 Deep: When I heard the news and really fully digested 634 00:31:17,050 --> 00:31:20,370 the news that Jeane had committed suicide, 635 00:31:20,400 --> 00:31:27,080 it was nothing but shock, sympathy, profound sadness. 636 00:31:27,116 --> 00:31:29,446 Man: She was found hanging from a nylon cord 637 00:31:29,483 --> 00:31:31,473 in her mother's backyard shed. 638 00:31:32,000 --> 00:31:34,330 Blozik: I was listening to the news on my TV. 639 00:31:34,366 --> 00:31:35,466 I just, like, stopped. 640 00:31:36,000 --> 00:31:37,150 I just couldn't believe it. 641 00:31:37,183 --> 00:31:39,003 Woman: Police say several notes were found 642 00:31:39,033 --> 00:31:41,203 that described her intention to take her life. 643 00:31:41,233 --> 00:31:46,353 She left long handwritten notes to her mother and to her sister. 644 00:31:46,383 --> 00:31:50,473 I thought the most heartbreaking excerpt from the letter 645 00:31:51,000 --> 00:31:52,220 was the one that read, 646 00:31:52,250 --> 00:31:57,000 "I cannot live the next 6 to 8 years behind bars 647 00:31:57,033 --> 00:32:01,333 for what both you and I have come to regard as this, 648 00:32:01,366 --> 00:32:04,296 "modern-day lynching," 649 00:32:04,333 --> 00:32:09,373 only to come out of prison in my late 50s a broken, 650 00:32:09,400 --> 00:32:13,130 penniless and very much alone woman." 651 00:32:13,166 --> 00:32:14,276 That was heartbreaking. 652 00:32:14,316 --> 00:32:16,426 The reported suicide of Debra Jeane Palfrey, 653 00:32:16,466 --> 00:32:19,416 the D.C. Madam, has a lot of people 654 00:32:19,450 --> 00:32:21,320 asking a lot of questions. 655 00:32:21,350 --> 00:32:25,080 Deep: Jeane was really a feisty, tough, 656 00:32:25,116 --> 00:32:28,146 empowered woman who didn't at all seem to me 657 00:32:28,183 --> 00:32:32,353 like the kind of person who would take her own life. 658 00:32:32,383 --> 00:32:36,103 The Debbie that I knew in high school 659 00:32:36,133 --> 00:32:38,483 and the Debbie that I e-mailed back and forth with, 660 00:32:39,016 --> 00:32:41,476 I -- I did not believe that she would do that. 661 00:32:42,016 --> 00:32:43,146 It -- it -- it floored me. 662 00:32:43,183 --> 00:32:45,103 It made no sense whatsoever. 663 00:32:45,133 --> 00:32:46,483 I talked to her 2 or 3 days before, 664 00:32:47,016 --> 00:32:50,116 and we thought we were on track to take a good appeal, 665 00:32:50,150 --> 00:32:51,370 get her bailed out during appeal 666 00:32:51,400 --> 00:32:54,450 and continue to fight this thing going forward, 667 00:32:54,483 --> 00:32:57,323 so that's why it never made sense. 668 00:32:57,350 --> 00:33:00,430 I'm conflicted as to whether Jeane's death was a suicide 669 00:33:00,466 --> 00:33:05,146 or a very highly organized murder. 670 00:33:05,183 --> 00:33:10,083 Moldea: After Jeane's suicide, there was widespread speculation 671 00:33:10,116 --> 00:33:12,466 that she harbored some secrets 672 00:33:13,000 --> 00:33:15,380 about some very powerful people here in Washington. 673 00:33:15,416 --> 00:33:19,226 Sanchez: The D.C. Madam, a woman who powerful men feared 674 00:33:19,266 --> 00:33:21,266 for what she knew about them. 675 00:33:21,300 --> 00:33:23,120 Was it really suicide? 676 00:33:23,150 --> 00:33:25,230 The Internet is going bonkers with this one. 677 00:33:25,266 --> 00:33:27,366 Man: Her friends said that that's not her signature 678 00:33:27,400 --> 00:33:29,200 on the suicide note. 679 00:33:29,233 --> 00:33:32,233 There were a lot of conspiracy theories out there. 680 00:33:32,266 --> 00:33:34,276 She would've been able to make all this money. 681 00:33:34,316 --> 00:33:35,366 She would've been famous. 682 00:33:35,400 --> 00:33:36,450 There would've been book deals, movies. 683 00:33:36,483 --> 00:33:38,183 Why would she possibly do this? 684 00:33:38,216 --> 00:33:40,226 Grace: Bob, in North Carolina, hi, Bob. What's your question? 685 00:33:40,266 --> 00:33:43,176 Bob: Yeah, my question is, I mean, could these two notes 686 00:33:43,216 --> 00:33:44,376 have been written under duress? 687 00:33:44,416 --> 00:33:46,266 I mean, if someone told me they're going to murder 688 00:33:46,300 --> 00:33:48,320 my mother and my sister if I don't sit down 689 00:33:48,350 --> 00:33:53,000 and write a heartfelt suicide letter, wouldn't I write it? 690 00:33:53,033 --> 00:33:55,283 Bob, that theory is floating around. 691 00:33:55,316 --> 00:33:57,316 I want to go to Dr. Patricia Saunders, 692 00:33:57,350 --> 00:33:59,120 clinical psychologist. 693 00:33:59,150 --> 00:34:00,380 Hill: Adding to the conspiracy theories 694 00:34:00,416 --> 00:34:02,416 was a man named Joe Strizack, 695 00:34:02,450 --> 00:34:06,020 so he managed the building where Palfrey owned a condo, 696 00:34:06,050 --> 00:34:10,070 and he says she told him she felt she was in danger, 697 00:34:10,100 --> 00:34:11,480 and then this guy actually goes on 698 00:34:12,016 --> 00:34:14,166 the Alex Jones radio show to talk about it. 699 00:34:24,100 --> 00:34:25,470 At this point, people started to speculate 700 00:34:26,000 --> 00:34:29,480 about some of the similarities between Palfrey's death 701 00:34:30,016 --> 00:34:32,226 and the suicide of another D.C. area madam, 702 00:34:32,266 --> 00:34:34,476 who had also died by hanging. 703 00:34:35,016 --> 00:34:37,046 Sibley: Brandi Britton was an escort who worked for Jeane 704 00:34:37,083 --> 00:34:38,483 for a period of time, branched out 705 00:34:39,016 --> 00:34:42,076 and started her own escort service in the Baltimore area. 706 00:34:42,116 --> 00:34:44,176 Woman: Police arrested 42-year-old Brandi Britton 707 00:34:44,216 --> 00:34:47,326 after she allegedly offered an undercover police officer sex 708 00:34:47,366 --> 00:34:49,046 for $400. 709 00:34:49,083 --> 00:34:53,183 Brandi Britton committed suicide right before her trial 710 00:34:53,216 --> 00:34:55,066 was about to start. 711 00:34:55,100 --> 00:34:58,230 Grace: Now we learn not one but two women 712 00:34:58,266 --> 00:35:02,116 are claimed to have committed suicide by hanging, 713 00:35:02,150 --> 00:35:05,130 both sitting on a bombshell of evidence 714 00:35:05,166 --> 00:35:08,016 against countless D.C. insiders? 715 00:35:08,050 --> 00:35:11,050 Now that's some coincidence. 716 00:35:11,083 --> 00:35:14,123 Hill: Turns out Palfrey herself had questioned Britton's suicide 717 00:35:14,150 --> 00:35:16,000 on the Alex Jones radio show. 718 00:35:29,133 --> 00:35:32,203 Jeane Palfrey herself started speaking out ahead of the trial. 719 00:35:32,233 --> 00:35:35,083 She was on that same radio show and really made it clear 720 00:35:35,116 --> 00:35:37,196 that she had no intention of giving up. 721 00:35:59,400 --> 00:36:03,070 Jeane herself said many times privately to me 722 00:36:03,100 --> 00:36:07,270 as well that she was not going to commit suicide, 723 00:36:07,300 --> 00:36:09,380 but she was going to be the exception. 724 00:36:09,416 --> 00:36:11,176 She was going to fight. 725 00:36:11,216 --> 00:36:14,246 She was going to expose the government. 726 00:36:14,283 --> 00:36:15,453 That was her line. 727 00:36:15,483 --> 00:36:20,023 So here you have two women who not only worked together, 728 00:36:20,050 --> 00:36:23,170 but they both knew secrets about some very powerful people 729 00:36:23,200 --> 00:36:27,020 in Washington, and they both died by hanging. 730 00:36:27,050 --> 00:36:29,270 And the coincidence is just one of those 731 00:36:29,300 --> 00:36:31,400 of several very troubling things about this -- 732 00:36:31,433 --> 00:36:33,453 The death of Deborah Jeane Palfrey. 733 00:36:33,483 --> 00:36:35,383 Augenstein: Think some people were willing to believe 734 00:36:35,416 --> 00:36:38,066 that Jeane Palfrey must have had something 735 00:36:38,100 --> 00:36:40,180 on somebody high and -- and -- 736 00:36:40,216 --> 00:36:42,366 and rich and powerful in the government, 737 00:36:42,400 --> 00:36:45,020 someone who would be willing to kill her. 738 00:36:49,200 --> 00:36:55,230 ♪♪ 739 00:36:55,266 --> 00:36:59,216 When Jeane Palfrey was found hanging in this shed, 740 00:36:59,250 --> 00:37:00,350 there was plenty of speculation 741 00:37:00,383 --> 00:37:03,123 that she'd been killed for what she knew 742 00:37:03,150 --> 00:37:05,350 except that people who knew her the best said 743 00:37:05,383 --> 00:37:09,333 she had a really specific reason for taking her own life. 744 00:37:12,133 --> 00:37:14,283 Augenstein: Jeane had already spent some time in prison, 745 00:37:14,316 --> 00:37:18,166 and she was really afraid of -- of going back there. 746 00:37:18,200 --> 00:37:21,330 In the early '90s, she'd done time for pandering, 747 00:37:21,366 --> 00:37:25,116 which is essentially pimping, in -- in California. 748 00:37:25,150 --> 00:37:26,220 Jeane was originally arrested 749 00:37:26,250 --> 00:37:28,400 for running an escort service in California. 750 00:37:28,433 --> 00:37:30,433 She was working as a cocktail waitress. 751 00:37:30,466 --> 00:37:33,316 It escalated into her being a prostitute 752 00:37:33,350 --> 00:37:37,280 and then managing other prostitutes. 753 00:37:37,316 --> 00:37:40,196 Augenstein: She hated the experience of being in jail, 754 00:37:40,233 --> 00:37:44,383 and she was really determined to never go back to jail. 755 00:37:44,416 --> 00:37:47,376 Sibley: She told me she had been raped repeatedly, 756 00:37:47,416 --> 00:37:50,326 so that was a very brutal experience for her. 757 00:37:50,366 --> 00:37:54,476 Ward: She talked about that experience in some detail to me, 758 00:37:55,016 --> 00:37:58,246 and she said it was horrifying. 759 00:37:58,283 --> 00:38:04,433 She came out physically and mentally damaged. 760 00:38:04,466 --> 00:38:06,416 Hill: Jeane Palfrey's own mother, Blanche, 761 00:38:06,450 --> 00:38:08,270 had told a local TV station that, 762 00:38:08,300 --> 00:38:10,320 in the days leading up to her death, 763 00:38:10,350 --> 00:38:12,480 her daughter was inconsolable. 764 00:38:13,016 --> 00:38:15,116 Blanche: That girl, that whole week, 765 00:38:15,150 --> 00:38:17,080 every time I turned around, she was laying 766 00:38:17,116 --> 00:38:19,996 over my shoulder, crying like a baby. 767 00:38:20,033 --> 00:38:22,103 She just -- she just sobbed. 768 00:38:22,133 --> 00:38:24,283 She said, "I can't live this way." 769 00:38:24,316 --> 00:38:29,146 She says, "Mom, it's live free or die." 770 00:38:29,183 --> 00:38:32,123 She told me on no fewer than three occasions that, 771 00:38:32,150 --> 00:38:33,320 in lieu of going back to prison 772 00:38:33,350 --> 00:38:36,280 where she had spent 18 months back in the early '90s, 773 00:38:36,316 --> 00:38:39,166 she would commit suicide. 774 00:38:39,200 --> 00:38:42,400 Jackson: There was no evidence at all that Jeane Palfrey was murdered. 775 00:38:42,433 --> 00:38:46,083 It was a pretty clear case that she committed suicide. 776 00:38:46,116 --> 00:38:47,316 The forensics proved it. 777 00:38:47,350 --> 00:38:51,280 The suicide note proved it, that Jeane Palfrey hung herself. 778 00:38:51,316 --> 00:38:55,426 The police agreed and said they found nothing to indicate 779 00:38:55,466 --> 00:38:58,046 this was anything other than a suicide. 780 00:39:00,200 --> 00:39:03,350 This was a useless death. 781 00:39:03,383 --> 00:39:05,123 It really was. 782 00:39:05,150 --> 00:39:07,270 She didn't deserve all this. 783 00:39:07,300 --> 00:39:10,380 Allow me to leave you with this thought if I may. 784 00:39:10,416 --> 00:39:13,246 Surely most people have established by now 785 00:39:13,283 --> 00:39:17,473 that mine is a very bizarre and rather unusual case. 786 00:39:18,000 --> 00:39:20,370 I believe there is something very, very rotten 787 00:39:20,400 --> 00:39:22,430 at the core of my circumstance, 788 00:39:22,466 --> 00:39:26,316 and I must rely upon your acumen and talent in the press 789 00:39:26,350 --> 00:39:29,320 and the media to uncover the truth. 790 00:39:29,350 --> 00:39:31,370 I thank you for your professionalism 791 00:39:31,400 --> 00:39:33,150 in this regard and good day. 792 00:39:33,183 --> 00:39:37,233 ♪♪ 793 00:39:37,266 --> 00:39:40,176 We may never know why Jeane Palfrey's escort service 794 00:39:40,216 --> 00:39:42,416 was singled out for Federal prosecution. 795 00:39:42,450 --> 00:39:45,080 The district attorney's office in Washington, D.C., 796 00:39:45,116 --> 00:39:47,196 declined to comment on her case. 797 00:39:47,233 --> 00:39:49,273 Palfrey's trial and her conviction 798 00:39:49,300 --> 00:39:52,070 certainly raise questions about what the point of it 799 00:39:52,100 --> 00:39:55,220 all was because a quick Google search will show you 800 00:39:55,250 --> 00:39:59,150 that escort services are thriving all across America, 801 00:39:59,183 --> 00:40:01,433 hiding in plain sight. 802 00:40:01,466 --> 00:40:03,246 Thanks for joining us. 803 00:40:03,283 --> 00:40:04,483 Have a good night. 804 00:40:05,016 --> 00:40:08,426 ♪♪ 65148

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