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Tuesday, January 27, 2009

Stanford Law Grad-Call Girl Pleads Guilty to Tax Evasion

I previously blogged 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), who was indicted in California federal district court for failing to pay taxes on $133,717 she earned as a prostitute in 2003 (United States v. Warthen, No. CR-08-682).  From the San Jose Mercury-News:

A Stanford law school graduate pleaded guilty Monday to federal income tax evasion charges, admitting she ran a high-priced call girl service "entertaining'' clients in cities across the country.

Under the terms of the plea agreement, filed in federal court in San Jose, Cristina Warthen agreed to pay $313,000 to the government to cover taxes on the earnings she made as a prostitute who went by the name of "Brazil.'' As part of the plea bargain, Warthen would not be sent to federal prison, but instead would serve one year of home detention and three years of probation.

During a hearing, Warthen, dressed in a gray pantsuit, said little as she agreed to the terms of the plea arrangement. U.S. District Judge James Ware set Warthen's sentencing for June 15.

Federal prosecutors in September charged Warthen, 34, with tax evasion, alleging she failed to pay taxes on more than $133,000 she earned as a prostitute in 2003. Court papers show Warthen at the time was jetting off to Washington, D.C., Chicago, New York and other cities for liaisons with clients she solicited on her steamy Web site, "TouchofBrazil.net,'' all of whom paid her in cash.

See also ABA Journal, L.A. Times, San Francisco Chronicle.  (Hat Tip: Above the Law.)

http://taxprof.typepad.com/taxprof_blog/2009/01/stanford-law-grad.html

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Comments

Did you know- that scientists are considering replacing brown rats with lawyers for laboratory experiments:
There are more lawyers than rats.
2. Lab technicians don't get so attached to lawyers.
3. There are some things that even a rat would not do.

Posted by: Sheik Yerbootie | Jan 27, 2009 5:50:53 PM

133k for one year! Wow! Must have been good. I wonder if she could get that in today's economy?

Posted by: Robert | Jan 28, 2009 8:42:48 AM

Love the blog but I have to question the value of a story like this. It embarrasses a (married) woman and doesn't really have much tax teaching value. Other than titillation, what is the point of a story like this?

Posted by: mike livingston | Jan 28, 2009 11:23:54 AM

Make her head of the IRS if she's so good at screwing everyone.

Posted by: Woody | Jan 28, 2009 2:01:23 PM

If I'm not mistaken, she was so successful because she was able to harness the internet to better market her services. She encouraged her clients to submit reviews of their time with her on www.naughtyreviews.com and then used that site as a way of gaining more and more clientele. Too bad she's been taken down as she was a real pioneer.

Posted by: jacobwrangler | Feb 11, 2009 2:45:46 PM