<![CDATA[Gawker: valleywag, cristina warthen]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, cristina warthen]]> http://gawker.com/tag/valleywag/cristinawarthen http://gawker.com/tag/valleywag/cristinawarthen <![CDATA[Legendary Valley Escort Ordered To Lay Around House]]> Cristina Warthen, who worked her way through Stanford Law as an escort and later pled guilty to tax evasion, has been sentenced to one year home detention and ordered to pay $243,000 in back taxes and fines.

Warthen, who advertised escort services under the name "Brazil," was accused by the Feds of prostitution. According to the San Francisco Chronicle story about her sentencing, Warthen is also now divorced from her husband David Warthen, the Ask.com co-founder who married her just four months after the government seized $61,000 in cash from her apartment, safe-deposit box, a storage locker and discarded law-school textbooks they found in her trash. Whatever will naughty Warthen do at home all day to pay back the government? We imagine Warthen's other tech entrepreneur friends must have some ideas.

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<![CDATA[Self-Proclaimed Stanford Escort Pleads Guilty to Tax Evasion]]> Before she married an Ask.com cofounder, Cristina Warthen (née Schultz) advertised escort services online as "Brazil" and boasted of making enough to pay for her Stanford law degree. She has pleaded guilty to tax evasion.

Prosecutors brought charges against Warthen in October, after a long-running investigation whose highlight was a 2004 bust in her Oakland apartment. Police found $61,000 in cash there and in a storage locker; some of the bills were found in an old law-school book. Her husband, David Warthen, whom she married in May 2004, claimed that the money was a gift from him.

"I have paid off 100% of my loans, and I have tried to send a positive message to SF escorts re: assumptions about the nature and social status of women in the business," she wrote on an Internet message board devoted to "high-dollar hotties," investigators wrote in an affidavit filed in the case.

Prosecutors accused Cristina Warthen of failing to pay $25,424 in taxes on $133,000 in income in 2003, but in the settlement, she agreed to pay $313,000, the entire amount of her profits from what the IRS deemed an "illegal enterprise." She will also spend a year confined to her home.

Warthen has an "authorized biography" on Classmates.com. It reads: "I am a wannabe socialite and supporter to my crew of friends. I have four birds, three stepchildren and a husband." And her current employment? "Relax — I'm retired."

One thing that has always puzzled us: With her Stanford law degree, how did she manage to get in such deep trouble with the law? A person who represents himself is said to have a fool for her client. But Warthen hired professional help. Here's an email her lawyer, Jay Bettinger, sent us last year:

We attached our evidence, which includes a defamatory reference to my client as a “call-girl”.

We have noted and recorded your slanderous and unfounded comment below which was wrongly published in the email to at least four individuals. In particular, you have indicated that my client is a prostitute and you base the opinion on 124,000 search results in Google. This is patently false. See the attached screenshots. Clearly there is a pattern of behavior here and your email below supports this position.

The content is defamatory, slanderous and has had an adverse impact on my client. The content is also misleading in that it indicates to the reader to think that the “alleged” events transpired in 2008. The one article appears to be dated February, 2008, which is within the statutory 1 year period to assert defamation. Finally, the usage of my client’s names in metatags and within the link is not authorized and the defamatory tagging of references to my client is wrongful. We are curious to know how you came to use the pictures you have posted and why you have presumed that the pictures are of my client. It would seem that is wrongful as well. The content also falsely suggests that my client is affiliated with pornography.

We again request the removal of the content, slanderous metatags and references from any and all websites, blogs or other postings that you or your clients are affiliated with or otherwise have caused the posting. The next request will be a demand and will include attorneys’ fees.

Thank you in advance for your cooperation. We look forward to written confirmation that you and your clients will cooperate.

Jay Bettinger

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<![CDATA[How a Stanford grad flunked the escort test]]> Geeks always think they will trick the system by being smart. They fail. It's no different when intensely brainy women take up escorting over the Internet, like Stanford Law graduate Cristina Warthen, in court this month facing federal tax evasion charges. As sophisticated as the sex trade is, there's still no magic solution for how to hide the money. The Feds claim Warthen hid cash in a safe-deposit box, her apartment, a storage locker, and even law-school textbooks they found in the trash. I've watched clients nerd out over this on message boards for years, trying to come up with the foolproof plan. There isn't one.The under-the-mattress route. The plus side: You'll avoid getting caught up in antiterrorism sweeps. From loading up throwaway debit cards at Walgreen's to starting offshore corporations under proxy boards in Nevis, there's just no way to handle thousands of dollars in cash without straying into money-laundering territory. The risk here is that large stacks of dollar bills can be found if your home is searched. Not being Al Capone. An escort who finds an understanding tax attorney could just pay the Fed what they're due — or at least, close enough. Warthen tried this route. It, too, failed her. And why? Living smaller. Her Benz and her pad didn't add up for someone who only declared $13,000 in annual income. As one message board client who claims to have known Warthen wondered, how different might this have gone down if she'd just driven a Honda Accord? Watching the weakest link. No matter what elaborate James Bond ideas you've got, there's always a coworker crazier than you who, when she gets into her own trouble, will out you. It wasn't a client sting or even a tax audit that brought "Brazil" to the attention of the lawman: it was a careless Orange County madam. When she was picked up by her own local law enforcement, that led cops to investigate Warthen. That's why they were sitting in wait outside of her apartment, and that's why they found $2,400 in cash tucked into law books thrown out with her trash. (Photo by RM Studios)]]> http://gawker.com/index.php?op=postcommentfeed&postId=5058202&view=rss&microfeed=true <![CDATA[Ask.com cofounder's wife charged with tax evasion]]> Cristina Warthen, née Schultz, aka Brazil, has been charged with the crime of federal tax evasion stemming from $25,424 in unpaid taxes in income earned as an escort in 2003. A previous civil case stemming from a seizure of $61,000 in cash from her Oakland apartment in 2004 after authorities found her bragging about her income on escort service message boards was settled in 2006. Warthen is married to Ask.com cofounder David Warthen, who had asserted the cash on hand was a gift to his then girlfriend. Prosecutors allege that the Stanford Law graduate earned $133,717 in 2003 and took home $81,797 after expenses, for which she owes federal income tax. Warthen has a date scheduled at the federal district court in San Jose later this month.

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<![CDATA[So I married a Stanford-brained escort]]> Stanford's new financial aid policy, had it gone into effect a bit sooner, might have killed the Valley's own Pretty Woman story: David Warthen, cofounder of Ask.com, married alleged Stanford Law escort Cristina "Brazil" Shultz just four months after Schultz's assets — $61,000 in cash — were seized by the government. From her postings on escort's clients' review boards, bragging of paying off student loans with her new night job, the IRS deduced she must have a lot of unpaid taxes: At $1,300 per two-hour "modeling" appointment, $5,000 for "overnight," and over 80 men claiming they'd been her clients — hey, do the math. After becoming her husband, Warthen was able to convince the Feds that the money was a gift from him, meant as "a benefit for the both of them". Talk trash if you must, but since they likely met on the job, Warthen is telling the truth. Carry on, Jeeves! (Photo by RM Studios)

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