Escort Service To 'Hedge Fund People' Broken Up

Jul 21 2011 | 12:19pm ET

A prostitution ring that provided some almost unbelievably expensive services to New York's hedge fund community is no more.

The Brooklyn District Attorney's Office this week announced that it had indicted 17 people connected with the High Class New York escort service. And the only thing higher than the Sheepshead Bay-based operation's class were its prices.

High Class allegedly brought in some $7 million over a three-year period, charging $400 to $3,600 per hour to clients, many of whom worked in the "financial markets" or were "hedge fund people," Brooklyn D.A. Charles Hynes said.

"People with nothing but money, willing to pay these enormous amounts of money for God knows what," Hynes said. One client paid High Class a whopping $170,000.

Hynes has so far charged only the company's owners, investors, managers and supervisors. But he said he was "considering" charging some of High Class's clients.

"There were full-service options," Hynes said. "There were Europeans, Americans, Australians and people of all races. No one Irish," however, the Irish-American D.A. added.

And the services didn't end with women. Clients would use code words for add-ons, such as "a bottle of Champagne" for cocaine—at a price, of course.

"Instead of paying 20 bucks for cocaine, they were paying 170 bucks," Hynes explained.


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Ex-Hedge Fund Billionaire Won’t Run For Senate

Jan 23 2015 | 5:48am ET

Ex-hedge fund manager Tom Steyer will not run for Senate after Sen. Barbara Boxer...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note