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69chevelle click here to view user rating
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01-Oct-08, 07:03 AM (PST)
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"I.R.S. always trying to get their share..."
 
http://www.mercurynews.com/ci_10600922?source=most_viewed

Feds: Stanford law school grad failed to pay taxes on prostitution earnings

By Howard Mintz
Mercury News

Article Launched: 09/30/2008 02:31:40 PM PDT


A Stanford law school graduate suspected of paying off her costly student loans by running a high-priced escort service has now been hit with federal tax evasion charges.

In court papers filed Tuesday in San Jose federal court, prosecutors allege that Cristina Warthen failed to pay taxes on more than $133,000 she earned as a prostitute in 2003, jetting off as a call girl for clients in Washington, D.C., Chicago, New York and other cities. The government has charged her with felony tax evasion for failing to pay about $25,000 in federal income taxes.

Warthen's business as a reputed high-priced hooker was first revealed several years ago, when the federal government searched her then-home in Oakland and seized more than $61,000 in cash suspected to be linked to her escort business. Court papers allege that starting in 2001, Warthen, then Cristina Schultz, used the name "Brazil'' and advertised her escort services on a Web site, TouchofBrazil.net.

Since then, the 34-year-old Schultz married David Warthen, the wealthy co-founder of the online search engine Ask Jeeves, now known as Ask.com. In a prior court fight over the seized cash, Warthen's lawyers insisted he gave the money to his then-girlfriend for "vacations, wedding and/or honeymoon.''

Brian Getz, Cristina Warthen's attorney, declined comment on the charges. But he told the Mercury News in 2006 that it was easier for the government to target her for tax fraud than prostitution. "We never conceded she was an escort,'' he said then.

Warthen is scheduled to appear in court Oct. 16.

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escort4us click here to view user rating
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01-Oct-08, 09:03 AM (PST)
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1. "RE: I.R.S. always trying to get their share..."
In response to message #0
 
>http://www.mercurynews.com/ci_10600922?source=most_viewed
---

I prefer the view "Someone always trying to get out of what they owe..."


Pay attention ladies..the IRS is real...

Fujiwara tofu rocks!

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bbblacksharkj
Member since 23-Sep-08
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01-Oct-08, 09:26 AM (PST)
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2. "RE: I.R.S. always trying to get their share..."
In response to message #0
 
   Just CURious, how much do the average escorts make a year? And since it's a lot of cash under-the-table can money laundering be a hassle? I figure that escorts probably buy a lot of assets. Do you have permanent residences or do you stick everything in the hotel room?

Code name:

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neversatisfied click here to view user rating
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01-Oct-08, 09:55 AM (PST)
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3. "RE: I.R.S. always trying to get their share..."
In response to message #2
 
   Legalize it and tax the girls. Problem solved.

Neversatisfied

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mofomonger click here to view user rating
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01-Oct-08, 10:50 AM (PST)
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4. "RE: I.R.S. always trying to get their share..."
In response to message #3
 
   Not to mention, it will be a great bit of cash influx into our faltering economy.

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RickVanWolford click here to view user rating
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01-Oct-08, 10:56 AM (PST)
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5. "RE: I.R.S. always trying to get their share..."
In response to message #2
 
LAST EDITED ON 01-Oct-08 AT 10:57 AM (PST)
 

I don't think a plethora of ladies are going to start posting their annual incomes in response to your invitation to do so. They probably aren't going to volunteer a lot of information about their investments and assets either. Unless of course, you think it's OK for them to ask all the gentlemen for the same information in this public forum.

And to think they live in hotel rooms? Yikes. You may be very disconnected from reality or seeing too many advertisers from CL.

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bbblacksharkj
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01-Oct-08, 11:16 AM (PST)
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6. "RE: I.R.S. always trying to get their share..."
In response to message #5
 
   Take it easy Rick.

Code name:

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RickVanWolford click here to view user rating
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01-Oct-08, 12:13 PM (PST)
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8. "RE: I.R.S. always trying to get their share..."
In response to message #6
 
Will do. Standing down now ....

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escort4us click here to view user rating
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02-Oct-08, 07:09 PM (PST)
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21. "RE: I.R.S. always trying to get their share..."
In response to message #5
 
>
>I don't think a plethora of ladies are going to start
>posting their annual incomes in response to your invitation
>to do so.
---
They ignore paying taxes on ANY income, at their own risk.

Trust me..I could care less what mistakes they make in ignoring that advice..the IRS doesnt care what you did to get it..theyre not the vice squad.

Ask Al Capone what put him in jail..just like Brazil.

Fujiwara tofu rocks!

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WolfgangPuck
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01-Oct-08, 11:43 AM (PST)
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7. "RE: I.R.S. always trying to get their share..."
In response to message #0
 
That's a strange article because it doesnt give us a history, as to how they went about investigating her to begin with?

$25k, relatively speaking, is not alot of money. Considering that her sugar daddy makes a kaziilion dollars.

Check that, methinks this whole thing is very disconcerting about the IRS. And how they seem to target people randomly.
I don't really care about that woman, but that could easily be a situation with one of you guys out there.
Not so much being involved in prostitution, but with a legit private biz that one might be handling.

"saugen Sie meine Wurst"

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MongerAlmighty click here to view user rating
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01-Oct-08, 01:21 PM (PST)
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9. "RE: I.R.S. always trying to get their share..."
In response to message #7
 
   $25k is not a lot of money to the IRS. But when prosecutors couldn't get her for anything else, they contacted the IRS to make a federal case out of it. Happens all the time. Think Al Capone.

BTW, for those of you who weren't around back then, Brazil was a regular poster on RB for several years, and use to brag about her exploits and jet-set lifestyle quite often. I guess she finally got what was coming to her.

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NiceMikey click here to view user rating
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02-Oct-08, 08:40 PM (PST)
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22. "RE: I.R.S. always trying to get their share..."
In response to message #7
 
From what I remember, the reason they started investigating her is that she had a high end escort "friend" who she supposedly help start in the business, when her "friend" got busted in L.A., she allegedly sold out Brazil to work out a deal on her own bust. That is what I remember... please correct me if I am wrong.

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escort4us click here to view user rating
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23. "RE: I.R.S. always trying to get their share..."
In response to message #22
 
>From what I remember, the reason they started investigating
>her is that she had a high end escort "friend" who she
>supposedly help start in the business, when her "friend" got
>busted in L.A., she allegedly sold out Brazil to work out a
>deal on her own bust. That is what I remember... please
>correct me if I am wrong.
---
If youre right..then the landscape of being investigated for tax fraud..is more dangerous than I suspect.

Loose lips sink ships..and not many people..will take the fall for someone else when offered a deal to talk.


Fujiwara tofu rocks!

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BigBill click here to view user rating
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01-Oct-08, 01:41 PM (PST)
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10. "RE: I.R.S. always trying to get their share..."
In response to message #0
 
   The ladies should report their income and pay taxes. This will prevent them from being subject to prosecution for tax evasion. They don't have to prove how you earned the money, the provider has to prove that the money was not income. If they can't, they lose.

The provider doesn't have to say exactly how they earned the money - they can say massage, escort, model, personal services. Even if they do say prostitute, information from the tax return cannot be given to other government branches to report illegal activities (exception, hired killer). I know there are providers that do track their business and pay their taxes. It's a good idea.

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Looking4thebestmoderator
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01-Oct-08, 02:08 PM (PST)
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11. "RE: I.R.S. always trying to get their share..."
In response to message #10
 
   The problem for her at least was in the under reporting of income that caught up to her when investigated:

_______________________________________________________________________

The complaint notes Schultz's tax returns reported only $28,717 in income from 1997 through 2002, but investigators found she deposited more than $45,000 cash to an account she'd opened at a Washington, D.C., Bank of America branch in 2002. Those deposits slacked off after she opened an Oakland safe deposit box from which agents seized cash in January.

"My investigation indicates that there is a large discrepancy between the income that Schultz has reported to the IRS and her expenditures and the lifestyle those expenditures have allowed Schultz to become accustomed to," reads a January affidavit filed by IRS Special Agent Anthony Ghio.

"Based on my training and experience, generally people whose adjusted gross income is consistently less than $13,500 a year are not able to put themselves through Stanford Law School, lease a $70,000 Mercedes-Benz for $1,486 a month, live alone in a $1,800-a-month apartment, pay off almost $300,000 in loans, compile savings over $10,000, build a cash hoard of $40,000, throw away $2,400 in cash and buy postal money orders totaling $13,500 all at one time."

http://forum.myredbook.com/cgi-bin/dcforum2/dcboard.pl?az=show_thread&om=34081&forum=general

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69chevelle click here to view user rating
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02-Oct-08, 02:37 AM (PST)
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18. "RE: I.R.S. always trying to get their share..."
In response to message #11
 
>"Based on my training and experience, generally people whose
>adjusted gross income is consistently less than $13,500 a
>year are not able to put themselves through Stanford Law
>School, lease a $70,000 Mercedes-Benz for $1,486 a month,
>live alone in a $1,800-a-month apartment, pay off almost
>$300,000 in loans, compile savings over $10,000, build a
>cash hoard of $40,000, throw away $2,400 in cash and buy
>postal money orders totaling $13,500 all at one time."


Yes, the paper trail will fuck you every time...Best to hide your money in a couple of briefcases under the bed. At the same time open off shore accounts to manage your home and other expenses, put your income on a salary basis under a fictitious business name that you set up in Switzerland or Malaysia and then only get taxed when you cut a small check out every now and then as your monthly salary.


Cash is still king!

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Jacket1 click here to view user rating
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20. "RE: I.R.S. always trying to get their share..."
In response to message #18
 
   I don't know about Malaysia, but Switzerland is no longer a secret place to hide numbered accounts if that's what you're implying. Those days are over.

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RickVanWolford click here to view user rating
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01-Oct-08, 02:32 PM (PST)
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12. "RE: I.R.S. always trying to get their share..."
In response to message #10
 

"I know there are providers that do track their business and pay their taxes. It's a good idea."
Bill's exactly right - some escorts do, some don't.

But that's not really much different from many other sectors of our society.
I hired some carpenters last month to rebuild my back fence. They really wanted to be paid in cash. As it was a side job, I'm sure they were avoiding taxes.
My neighbor has a house cleaner that insists on being paid in cash each week.
And so on, and on....Just about anyone you hire from Craiglsit to do work for you is part of an underground economy.
We get so fixated on this board about how escorts live their lives, that we forget the big picture and everyone else who is similar.

rvw

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whosyourdaddy
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01-Oct-08, 02:48 PM (PST)
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13. "RE: I.R.S. always trying to get their share..."
In response to message #12
 
   she used to have alot of ads up locally on EROS and other sites. I remember she went by the name of Brazil and or Prada.

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usefulidiot click here to view user rating
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01-Oct-08, 05:48 PM (PST)
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14. "RE: I.R.S. always trying to get their share..."
In response to message #13
 
   LAST EDITED ON 01-Oct-08 AT 06:00 PM (PST)
 
A bit of knowledge here........even the IRS admits "That which is not traceable, is not taxable".

Think about it for a moment.....cash is very, very, very difficult to trace. This is partially why banks invented checks, drafts, and eventually credit cards. Sure they are a TREmendous convenience, but it allows the IRS to track everything one does with their money, except cash, very difficult to hide income today......unless you are paid in CASH. A couple of thousand here & there, no big deal, can be explained away 10 times over, but when a ho needs to move a couple hundred grand, that becomes a problem and very difficult to hide.

Used to know & date (real date not a paid for) a ho named (Sophia) who used to run with Brazil, they would go on shopping sprees together spending thousands at a time. She used to idolize Brazil because she would pull in big dollars (I believe $400 per hr, then up to $600) because she would do anything & everything with a client, swallow, take it in any hole, etc..) Brazil told her she make about 500-600k a year, now I know there can be a little brag factor here, but she did pull down the cash. Then the Jeeves guy became one of her clients & tried a relationship in the real world, then she got busted by "living large". The ho I knew/dated used to bring in 250,000 - 300,000 a year & kept it all in a safe deposit box, afraid of a paper trail (she wanted a million before she quit the bussiness), but she drove an older Honda Accord, afraid of drawing too much attention by driving a 600 SL, even though she easily could have driven a Benz.

IMHO, Brazil got off easy, they could have easily caught her with much more cash than they did, but that is all the IRS could prove. Remember they must PROVE their case, not speculate. They targeted her because she had such a huge profile & drew a lot of attention to herself. She also thought she could get away with murder, so they chose her because she would be the "example" who everyone in the ho world would talk about......and I guess they were right.

P.S. she was a little shit of a gal, but she spend a lot of time in the gym, I used to work out with my gal & Brazil. She was soooo tiny, I used to think "How does she take a cock in that tiny body & that tiny hole"?

P.S.II I'd advise all the ladies to fuck the IRS/State & not pay a damn dime in taxes. Just don't live like an idiot, keep things to a minimum & stash the rest. Sure if any one ho is investigated they will eventually make a case against her, but the Government needs to get a big monetary pay-off for their time involved in the investigation, so they just will not go after anyone just for the sake of "bringing them to justice". IMHO, the Gov failed miserably against Brazil, they could only nail her with a 25K bill & some jail time when she banked about a million. Those fucking IRS agents should be fired for doing such a shitty job. They spent a lot more than 25K while investigating her. Brazil made a Hell of a lot more than 133,000 in 2003, she probably made that in 2 months!!!! So the IRS is a bunch of fuck-ups.

P.S.III Now that I think about it, Brazil wanted to start doing doubles with my gal & charge $1000 per session, but my gal was used to going solo. So I think/believe (this was a few years back & I really didn't pay attention) so Brazil got some new & young talent to "train" and do doubles with her. So since Brazil was now "pimping" out another gal, they charged her with a whole bunch of other shit, besides being a ho.


"Every time you masturbate you save $200 bucks"

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mrtbkk click here to view user rating
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01-Oct-08, 08:46 PM (PST)
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15. "RE: I.R.S. always trying to get their share..."
In response to message #14
 
   good advice and in a funny way .. i love this board

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AsianFixation click here to view user rating
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17. "RE: I.R.S. always trying to get their share..."
In response to message #15
 
   >good advice and in a funny way .. i love this board

Umm.... that was "usefulidiot" and he's the Forest Gump of RB....

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wellwhynot
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02-Oct-08, 10:02 AM (PST)
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19. "RE: I.R.S. always trying to get their share..."
In response to message #0
 
   If you are making that much money get an Accountant period. You should also incorporate, open a bank account and never ever deposit more then $10K at once. So if you are making that type of cash every month open 2 different accounts in 2 different banks. This way you will be able to save money to have money when you are ready to retire. You will have to report but having a cash business is not against the law. Just be smart and not get busted for any illegal activity. Also consult openly with an attorney on how not to get caught.

I wish I made that type of money!

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Trunks
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04-Oct-08, 08:34 AM (PST)
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24. "RE: I.R.S. always trying to get their share..."
In response to message #0
 
LAST EDITED ON 04-Oct-08 AT 08:37 AM (PST)
 
Here is Brazil's former web site stored on archive. Enjoy Looking at the pics, she was a hottie during her escort days.


http://web.archive.org/web/20060115233119/http://www.touchofbrazil.net/

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amp_preciation
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05-Oct-08, 00:57 AM (PST)
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25. "IRS now goes after small frys rather than rich guys"
In response to message #0
 
   LAST EDITED ON 05-Oct-08 AT 01:20 AM (PST)
 
If you want to see what the idiots at IRS are doing these days to nail the small frys to the wall while letting the millionaires and billionaires go Scott free because it is too resource consuming and time consuming to nail them, read Perfectly Legal. If I remember the book correctly, each year, the IRS does not collect from $200 billion to $500 billion in unpaid taxes(enough to pay for this GD War in Iraq and then some). It was sickening to learn and continues to be sickening to know what Republicans and Democrats have done to help the super rich get richer.
http://www.amazon.com/s/ref=nb_ss_b?url=search-alias%3Daps&field-keywords=perfectly+legal&x=24&y=20
a_p

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