SANTA ANA – from www.ocregister.com- A Florida woman appeared in federal court here today, accused of having pocketed more than $8.5 million from an online prostitution business that employed pornography stars and fashion models.
Michelle Braun – accused of charging clients as much as $50,000 or more per night with a prostitute – pleaded not guilty to two charges filed in March. She is charged with money laundering and transporting an individual from Orange County to New York City for the purposes of prostitution.
Today, U.S. Magistrate Judge Robert Block allowed Braun to remain free on $20,000 bond pending her next pretrial hearing before U.S. District Judge Cormac Carney on June 29. Braun is expected to change her plea to guilty on that day or at a later date.
Braun, who lives in Boca Raton, has agreed to cooperate fully with federal authorities, according to her plea agreement, filed on March 31.
The agreement indicates that prosecutors and Braun suggest the judge sentence her to five years of probation with no more than six months of home confinement, as well as a $30,000 fine.
She had faced between 12 to 18 months in prison and between a $3,000 and $30,000 fine, according to the government’s calculation of federal guidelines.
During today’s hearing, Assistant U.S. Attorney Doug McCormick told Block he did not oppose Braun remaining out of custody – noting that she traveled here from Florida to be at the hearing. He also said Braun has been aware of the government investigation into the case, which he said has lasted 18 months.
Braun and her lawyer, Ellyn S. Garofalo, later declined to comment on the case. When asked about her occupation, Braun said she “ran an investment fund.”
McCormick also declined to comment.
Braun allegedly operated an online business through her corporation, Global Travel Network, Inc., with the assistance of her husband and sister, according to court records in a separate money-forfeiture case involving Braun.
The company was “disguised as a travel and security business and was used to facilitate the laundering of Braun’s prostitution proceeds,” wrote Assistant U.S. Attorney Frank D. Kortum. The government is seeking to take about $325,000 in the related case.
Braun’s clients paid thousands of dollars to be set up with the prostitutes – who were advertised to be adult film stars, top professional fashion models, centerfolds and actresses, Kortum wrote.
Braun’s clients first paid a $1,500 introduction fee, according to the government.
“Travel fees started at $8,000 per day and the Platinum Club range started at $8,000 and went up to more than $50,000 for an evening of undiluted pleasure,” Kortum wrote.
On one Web site, Braun listed specific details of “guaranteed privacy, exclusivity and quality,” according to court records.
Seventy-one women worked for Braun – 50 who were listed online as residing in Los Angeles, while two lived in Orange County, according to Kortum. Each of the women had a photograph and a detailed bio, which listed their sexual fantasies, he wrote.
The alleged ring was discovered after an undercover FBI agent submitted a membership application on the Web site in March 2006, according to Kortum.
After paying a $2,500 retainer fee, the agent had access to photos of 138 women, including porn star McKenzie Lee, Kortum wrote.
Laura Eimiller, an FBI spokeswoman, said the case against Braun is part of an ongoing investigation and that additional charges or arrests are possible.