EliteEscortService.com Owner Pleads Guilty to Tax Fraud

[Mastan]

MIAMI — The owner of a “prestigious” South Florida escort agency known as EliteEscortService.com pleaded guilty yesterday to filing false tax returns.

According to the Justice Department, Dennis Zarudny, filed false individual income tax returns for the years 2011-2014 that underreported his total income from his escort business, Denzar Inc., which found customers through EliteEscortService.com.

According to its website, “Elite Escort Service was established in December 1999 by internet marketing and escort service industry experts and currently operates over 1,000 high-traffic escort service websites. Based on a number of websites owned and the amount of traffic that they receive, Elite Escort Service is considered the No. 1 escort service agency in the U.S.”

The Justice Department said that “Zarudny allowed his customers to pay for the escorts’ services by cash, check and credit card. Zarudny reported income from credit card transactions but did not fully report the income he received from customers who paid in cash and check.”

Prosecutors filed a motion to seal Zarudny’s case in December, so the extent of his underreporting remains unavailable.

Zarudny faces up to three years in prison, as well as a period of supervised release, monetary penalties and restitution. 

U.S. District Judge Jose E. Martinez in Miami scheduled sentencing for June 11.