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Hedge Fund Execs Alleged as Escort Service Clients

Date: Friday, July 22, 2011
Author: HFN Daily Report

A Brooklyn high-end escort service allegedly catering to hedge fund industry clients has been broken up by police, resulting in the arrests of 17 people.

Brooklyn District Attorney Charles Hynes said at a Wednesday press conference that High Class NY's four owners, its management team, and two of their largest investors were named in a 144-count indictment, according to a New York Post article.

Charges brought against High Class include corruption, prostitution, money laundering, and sale of a controlled substance.

Hynes said the escort service brought in $7 million in just three years by allegedly catering to high-profile clients -- who paid upwards of $10,000 a night for sexual acts -- including those who worked in the hedge fund industry, the Post reported. Those clients were not named by Hynes since they were not charged with any crime, although Hynes warned it could happen eventually.

Hynes also said the escort service provided cocaine, and went to great lengths to conceal its activities by creating code names and hiring a law firm to draw up fake employment contracts for employees.

All four owners are currently being held on bail.