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Wednesday, October 1, 2008

Stanford Law Grad-Call Girl Indicted for Tax Evasion

2001 Stanford Law Grad Cristina Schultz (now Cristina Warthen after her marriage to David Warthen, co-founder of the online search engine Ask Jeeves, now known as Ask.com) was indicted in San Jose federal court yesterday for allegedly failing to pay taxes on $133,717 she earned as a prostitute in 2003.  From the Information (United States v. Warthen, No. CR-08-682):

[Defendant] operated an escort business, in which she exchanged sexual acts for money.  The business was based in the Northern District of California.  Schultz advertised her services in interstate commerce, using the stage name "Brazil," and traveled throughout the United States to service clients.

During calendar 2003, Schultz maintained a website, TouchofBrazil.net, on which she advertised her services, pricing, travel schedule, and information regarding paid memberships to her website (on which she had posted erotic pictures of herself). ...  Although the defendant possessed a law degree, she did not have any other employment or significant sources of earned income during 2003.

During calendar 2003, Schultz grossed approximately $133,717 from running her escort business.  Her expenses, which included travel, hotel, car rentals, and other incidental expenses[,] were approximately $51,920. The defendant's net income for 2003 was therefore approximately $81,797.  The total tax that would have been due to the United States from defendant Schultz for 2003 is approximately $25,424.

For further details, see Associated Press.  For prior tawdry details, see Above the Law (The Stanford Law Escort: And She Lived Happily Ever After; Summer Associate Stories: Girls Gone Wild).

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