A Whitestone woman pleaded guilty to taking part in a prostitution-and-money- laundering scheme.
Jay King, 53, pleaded on May 8 to one count of enterprise corruption for taking part in the ring operated with the help of a Manhattan-based ad agency. She is expected to be given a 3- to 9-year sentence.She will also be required to pay $100,000 in forfeiture. She will remain out of jail on $1 million bail until her sentencing.
According to state Attorney General Eric Schneiderman, King utilized income from her illegal drug-and-prostitution operations to pay Manhattan-based ad agency Somad Enterprises, Inc., which in turn created, monitored, facilitated and sold online and print advertisements for the operation including on Backpage.com, the Village Voice and cable TV stations.
King admitted to heading a large-scale prostitution business which also provided crack, cocaine and Viagra for sale. She utilized shell corporations, created with false information used to process thousands of dollars in credit card transactions.
King then utilized the income derived from her illegal prostitution and drug related business to pay Somad for their advertising services, effectively laundering money through Somad, disguising the origin of the proceeds as legitimate ad payments.
Somad boss, Milagros Katz, pleaded guilty to felony money laundering charges in the case last month.