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Old 02-12-2020, 11:31 AM
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Default ISRAELI man & 'woman' busted by feds in sprawling Manhattan prostitution operation


Pair busted by feds in sprawling Manhattan prostitution operation
By Gabrielle Fonrouge and Ben Feuerherd
February 11, 2020 | 7:28pm

A Colorado woman and an Israeli man were arrested by federal authorities for allegedly running a sprawling, high-end prostitution ring that operated in Manhattan, authorities said Tuesday.

The suspects, Tracy Reynolds and Izhak Cohen, allegedly laundered more than $10 million through thousands of bank accounts and financial institutions in the US and overseas, according to federal prosecutors from the Southern District of New York.

Reynolds and Cohen allegedly set up their prostitution company, called “VIP Escorts,” in 2012 and arranged for prostitutes to meet clients in Manhattan and other areas across the country, prosecutors said in a statement.

After the prostitutes charged the clients thousands of dollars for sex work, they deposited their profits into thousands of different bank accounts controlled by Reynolds, authorities said.

More than $10 million in total was passed through accounts owned by Reynolds in the prostitution operation, according to prosecutors.

Reynolds then allegedly passed more than $1 million to Cohen in Israel in small amounts to hide the transactions.

Reynolds was arrested in Florida Tuesday morning at Tampa International Airport while boarding a flight to Mexico. Cohen was taken into custody by Israeli authorities, and federal authorities are seeking his extradition to the United States.

They were each hit with money laundering and a conspiracy charge and face a maximum of 60 years in prison if convicted.
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