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Wall Street CEOs, investment bankers charged prostitutes on corporate cards

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February 07, 2009 – Comments (8)

Investment bankers racked up $100,000s in prostitution chargesVisa, Mastercard or American Express? Or maybe a credit card from JP Morgan Chase?

Wall Street CEOs, lawyers, bankers and media executives chalked up thousands of dollars in prostitution charges on their corporate credit cards -- swiping their cards for $2,000 an hour prostitutes, according to a New York madam who pleaded guilty last year.

Kristin Davis, the madam in question, went public to ABC News this week; ABC will be broadcasting her interview Friday at 10 pm. Davis says she has a list of 9,800 clients, many of whom she says New York prosecutors deliberately avoided when taking her case, even though she offered them her annotated client list.

In what's sure to create a media firestorm parallel to that of when a Washington, DC madam announced that she was publishing her client list (which included at least one senator), Davis' comments come at a time where incredible ire is already focused on Wall Street and banking executives. The pressure for her to release the list will certainly be immense.

But the pressure from New York's finest prosecuting team was nearly zero, Davis said.

"They showed no interest," Davis quipped, alleging that they ignored that numerous corporate titans had used her services.

"Some of these guys, I was invoicing on corporate credit cards," she said. "I was writing up monthly bills for computer consulting, construction expenses, all of these things, I was invoicing them monthly so they could get it by their accountants."

District attorney Robert Morgenthau's spokesman was said to have "no comment" on the handling of Davis' case or her allegations.

Davis provided the network with a print-out of her computerized client list, the same one she says that she offered the district attorney.

Among the names the network says it confirmed

* a vice president of NBC Universal (owned by General Electric)
* the part owner of a Major League Baseball team who "loves Kelsey"
* the CEO of one of the country's largest private equity firms who met "Cameron" at the Peninsula Hotel
* a major New York real estate developer who, according to the list, "will come to the door wearing women's panties"
* a partner at the Wall Street law firm Cravath Swaine Moore "looking for a party girl to come fully equipped" and spent a total of $20,000
* an investment banker from Lehman Brothers who saw "Kelsey and Keely together" and later saw "Aria and Skyler at the same time"
* an investment banker at JP Morgan Securities who "loves Brooke" and spent $41,600
* an investment banker at Goldman Sachs who "only wanted all-American girls" and spent $27,000
* a managing director from Merrill Lynch who saw "Lana" using the name "Nataly"
* a managing director from Deutsche Bank "who called about seeing Nataly again"

ABC said in their broadcast that for the individuals mentioned above, they could not confirm that the payments were made on corporate cards.

Davis told the network she disguised the charges in various ways so they would appear to be legitimate business expenses when accountants sifted through credit card statements. One CEO, she said, ordered her to send him invoices for "roof repair on a warehouse" to disguise the charge for prostitutes from corporate funds.

Davis says she hasn't yet decided whether to release the full 9,800-name list publicly.

8 Comments – Post Your Own

#1) On February 07, 2009 at 12:51 AM, infomisa (< 20) wrote:

How much of this was funded by TARP?

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#2) On February 07, 2009 at 2:17 AM, DaretothREdux (39.98) wrote:

It's good to be the King!

-Mel Brooks

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#3) On February 07, 2009 at 8:58 AM, devoish (97.09) wrote:

At least Elliot paid with his own money.

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#4) On February 07, 2009 at 11:00 AM, rd80 (98.00) wrote:

At least Elliot paid with his own money.

Not entirely.  I think the travel expenses on some of his 'business' trips to DC were charged to the good people of NY.

But, these charges should be investigated just like they were for Spitzer.  The creative billing described in the post sounds like fraud to me, which, I believe, is a little more serious than hiring a prostitute.

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#5) On February 07, 2009 at 4:10 PM, eldemonio (98.61) wrote:

When you go to Hooters, it's amazing what you get for $1000 worth of "chicken wings."

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#6) On July 11, 2009 at 9:10 AM, Tudd (< 20) wrote:

these charges should be investigated just like they were for Spitzer.  The creative billing described in the post sounds like fraud to me, which, I believe, is a little more serious than hiring a prostitute.Whats the difference between ecommerce web host and budget web host.

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#7) On August 25, 2009 at 9:17 AM, tolo1987 (< 20) wrote:

OMG, this story is so unbelievable, what to do with that?

Mike - the regcure and vimax dude. 

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#8) On September 19, 2009 at 11:36 AM, jaaysean (< 20) wrote:

Omg...Ofcourse its good to be King..

Natural colon cleanse

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