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Madam Goes Down on Tax Charges

Chicago- A woman once dubbed the “Palos Park madam” pleaded guilty Wednesday to a series of tax fraud charges that could land her in prison for more than a year.

Dawn Hansel, 36, admitted she filed false income tax returns and lied to Internal Revenue Service agents in a guilty plea before Chief U.S. District Judge Charles Kocoras. She pleaded guilty “blind,” meaning she had no deal with prosecutors.

Hansel was twice acquitted of running a house of ill repute out of a Palos Park residence. Those allegations did not come up in federal court.

“At this point, it really doesn’t matter. She had income. She didn’t report it. It’s still an offense,” Assistant U.S. Attorney Brian Havey said.

Hansel faces one year to 18 months in prison.

Hansel was charged with three counts of filing false individual federal income tax returns and one count each of tax evasion and lying to IRS agents.

She pleaded guilty to all five counts.

Prosecutors say Hansel didn’t report about $250,000 in gross income from a business called Vogue Fashions, involving women who model lingerie. She would have owed at least $22,000 on that business, prosecutors said.

Hansel filed false tax returns from 1996 to 1999 and didn’t file any return in 1998, Havey said.

She also admitted she lied to IRS agents. She told them in an interview that her financial records went up in flames at a fire in her office, which she said was in a Chicago Ridge bar. But agents later seized the records at her home.

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