Press Release
OWNERS OF BROWARD COUNTY ESCORT SERVICE INDICTED
May 13, 2009
FOR IMMEDIATE RELEASE
R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Daniel W. Auer, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, announced that on April 23, 2009, defendants Douglas J. Ketcher, a/k/a Brian Davis or Brian, 37, formerly of Broward County, now of Siloam Springs, Arkansas, and Christina L. Wypych, a/k/a Danyella Valentine, Danyella, and Danny, 29, of Broward County, were indicted for operating a prostitution ring, money laundering, and tax fraud. Defendant Ketcher had his initial appearance on May 7, 2009 before Judge Robert L. Dubé. Defendant Wypych had her initial appearance on May 11, 2009 before Judge William Turnoff.
More specifically, the 58-count Indictment charges Ketcher and Wypych with conspiracy to violate Title 18 U.S.C., Sections 1952, 2422(a) and to impede and impair the IRS, all in violation of Title 18, U.S.C., Section 371 and 2. The Indictment also charges the defendants with use of an interstate facility in aid of racketeering, in violation of Title 18, U.S.C., Sections 1952 and 2, conspiracy to commit money laundering, in violation of Title 18, U.S.C., Section 1956(h), money laundering, in violation of Title 18, U.S.C., Section 1956 (a)(1)(A)(I); enticing a person to travel interstate for prostitution, in violation of Title 18, U.S.C., Sections 2422(a) and 2; assisting in the preparation of false tax returns, in violation of Title 26, U.S.C., Section 7206(2), and filing false income tax returns, in violation of Title 26, U.S.C., Section 7206(1).
According to the Indictment, Ketcher was the president, director and sole shareholder of BDDV Associates, Inc, ("BDDV"), d/b/a "Sweeties," located in Oakland Park, FL. Defendant Wypych was the vice-president and director of BDDV. The Indictment alleges that from on or about July 2, 2002 through approximately February 2007, Ketcher and Wypych ran a prostitution business in Broward County and in other states. The defendants advertised their prostitution business as the escort service Sweeties. Ketcher and Wypych maintained "Sweeties.us," an adult Internet website, and placed ads in local newspapers to solicit the hiring of "models" and "phone operators." Ketcher and Wypych personally interviewed and hired prospective escorts and telephone operators who responded to the ads. During the interviews, Ketcher and Wypych advised the escorts to adopt "stage names" for use while working for Sweeties.
The Indictment alleges that prospective customers would call Sweeties to arrange and schedule an appointment with the desired escort, for $300 per hour. Appointments could be scheduled locally, at a pre-designated hotel, or at a location requested by the customer, including locations outside of Florida. Indeed, between October 23, 2002 and March 21, 2006, Ketcher and Wypych allegedly caused 120 escorts to take more than 800 trips out-of-state for the purpose of engaging in acts of prostitution.
Moreover, the Indictment alleges that Ketcher and Wypych issued and caused the issuance of false IRS Forms W-2, Wage and Tax Statements, and IRS Forms 1099, Miscellaneous Income Statements, by paying partial cash wages to the escorts and phone operators and not declaring those cash wages to the IRS. As well, from 2002 through 2005, Ketcher and Wypych allegedly assisted in the preparation and filing of false corporate tax returns for BDDV that understated BDDV's income. In addition, Ketcher allegedly signed and filed with the IRS false personal income tax returns for tax years 2002 through 2005.
If convicted, Ketcher and Wypych face a maximum of five years' imprisonment on the conspiracy count; a maximum of five years' imprisonment for each count of racketeering; a maximum of twenty years' imprisonment on the conspiracy to commit money laundering count; a maximum of twenty years' imprisonment for each money laundering count; a maximum of ten years' imprisonment for each count of enticing a person to travel interstate for prostitution; a maximum of three years' imprisonment for each count of assisting in the preparation of false tax returns; and a maximum of three years' imprisonment for each count of filing false income tax returns. The charges also seek the forfeiture of $1.9 million derived from the conspiracy.
Mr. Acosta commended the investigative efforts of the Internal Revenue Service, Criminal Investigation Division. This case is being prosecuted by Assistant U.S. Attorney Scott Benke of the Fort Lauderdale Office and Trial Attorney Gregory Tortella of the Department of Justice's Tax Division, Washington, DC.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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