Colorado’s U.S. attorney has acknowledged that he is working with the Internal Revenue Service on an investigation of a Denver business that may have operated an escort service and that federal criminal charges may result.
Following inquiries by 9News, U.S. Attorney Troy Eid said a complicated investigation was underway. The station, citing unnamed sources who worked as prostitutes, said the IRS and other investigators had raided the business, Denver Players, on Jan. 25.
“It is an ongoing criminal investigation, and I will not comment on it,” Eid said. “It’s a substantial investigation, and there’s lots of investigation still to do.”
Women affiliated with the business, also called “Denver Sugar,” told 9News that their client list included several prominent Denver business people, athletes and local celebrities, but they declined to reveal names. The club is near 17th Avenue and Fillmore Street.
The owner of the business, Brenda Stewart, declined to comment to 9News, as did the IRS.
“No one in the IRS can discuss any investigation of any taxpayer due to disclosure laws,” said spokeswoman Jean Carl.
Women affiliated with the business told 9News that police seized business records, credit card receipts, computers and other documents from Stewart’s home and business and that Stewart kept detailed records of her clients’ information.
9News legal analyst Scott Robinson said the clients may not be charged and the public may never learn their identity.
“Traditionally, police departments are very reluctant to release the names of the clients,” Robinson said. “There are good reasons, right reasons, to not release the names of clients of prostitutes. Maybe they haven’t committed a crime.”
“The wrong reason,” he said, “is to hide the identity of the guilty because they’re a prominent member of society.”
