Accused East Side Madame A Hedge Fund Vet?

Mar 27 2008 | 2:00am ET

A New York woman arrested this week for allegedly running a prostitution ring reportedly worked in the hedge fund industry.

According to Kristen Davis’ lawyer, his client has worked in the hedge fund industry, although where or in what capacity are unclear.

Davis was arrested at her New York apartment on Tuesday, where police seized $19,000 in cash, and was charged with money laundering and promoting prostitution. Authorities have also frozen some $500,000 in bank accounts linked to her.

Police said they are looking to arrest some 15 prostitutes who worked for the 32-year-old hedgie.

According to police, Davis ran four Web sites. Her allegedly illicit entertainers reportedly charged as much as $1,200 an hour, and sold their wares at two locations on Manhattan’s East Side.

A resident at one of those buildings told The New York Times that she had observed a large number of men in suits with pretty women in their 20s heading for the building’s sixth floor around lunchtime.

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