| FOR IMMEDIATE RELEASE October 2, 2008 WWW.USDOJ.GOV/USAO/CAN |
SAN FRANCISCO – United States Attorney Joseph P. Russoniello and and IRS-Criminal Investigation Special Agent in Charge Scott O’Briant announced that Cristina L. Warthen, formerly known as Cristina L. Schultz, was charged yesterday with one count of tax evasion.
According to the information, Ms. Warthen, age 35, who formerly resided in Palo Alto and Oakland, but now lives in Los Angeles, California operated an escort business in which she exchanged sexual acts for money. The defendant, who used the stage name “Brazil,” used a website, “TouchofBrazil.net,” to advertise her services, pricing and travel schedule and offer paid memberships to the website. The information also alleges that Warthen traveled to major cities throughout the United States to service her clients.
Specifically, the information alleges that, in calendar year 2003, Warthen grossed over $133,000 from her escort business and that, despite possessing a law degree, she had no other income during the year. Her net income was $81,797, resulting in a tax owing to the United States of $25,424. The information further alleges that the defendant did not file a tax return for that year and that she took affirmative steps to hide her income, including storing cash in a safe deposit box, purchasing postal money orders in amounts designed to avoid the generation of a Currency Transaction Report, and hiding cash in her apartment, a storage locker, and even tucked between the pages of a discarded law textbook.
Ms. Warthen is scheduled to appear in court for arraignment on the information on October 16, 2008, before The Honorable Howard R. Lloyd.
The maximum statutory penalty for tax evasion in violation of 26 U.S.C. § 7201 is five years imprisonment and a fine of $100,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An information contains only allegations and, as with all defendants, Ms. Warthen must be presumed innocent unless and until proven guilty.
Assistant United States Attorney David Callaway is prosecuting the case with the assistance of legal technician Tracey Andersen. These charges are the result of an investigation by IRS-Criminal Investigation with the assistance of the Postal Inspection Service.
Further Information:
Case #: CR 08-00682 JW
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