Denver 7/11/2011 9:25:52 PM
News / Law

Denver madam pleads guilty to tax evasion

By: Daun Lee

Brenda Stewart, which ran an escort service accused of prostitution, originally plead not guilty to the 70 counts of tax evasion she was charged with. Today, she changed her plea to guilty for one charge of tax evasion; the IRS dropped the other 69 charges

The Denver police conducted a sting in the attempt to charge the madam with prostitution, but couldn’t get the proper evidence. Key evidence was blocked by a judge, leaving many to speculate he was listed in the escort services contact list. Often in cases where criminal activity is hard to prove, charges of tax evasion offers authorities the chance to halt the operation. A tax attorney is qualified to assist clients who are charged with tax evasion or fraud.

Stewart faces five years in jail and $45,000 in restitution. Her sentencing is in November. She purchased the business in 2005.

The man she purchased the escort service from Scott Ewing pled guilty to tax-related charges last year and has been under house arrest, he was also ordered to pay $70,000 in restitution.

Tax evasion is a serious offense and is often prosecuted to the full extent of the law. The people found charged with tax evasion has a chance to reduce the penalties by hiring an experienced tax lawyer.

Tax attorneys can work with authorities and to have the fines associated with tax evasion or failure to pay reduced.