HIGH-TECH MADAM:

When Silicon Valley was booming, numerous young people, in there twenties and thirties became millionaires and billionaires. On any given day, you could see a 22-year old billionaire who launched a start-up in his garage, driving around in a custom convertible Lamborghini. The sky was the limit and Raeshel Keavy, 1st photo, devised a scheme, she was going to launch an exclusive escort service that catered to ‘new money.’

Keavy’s motto: Offer a high-quality product (gorgeous women) and let rich men with disposable cash and high credit limits contact her. They would get a taste of the girls they could never have in high school.

Raeshel Keavy and Mark Dudgeon, 2nd photo, (a former gay adult star) launched four high-end escort agencies servicing the San Francisco bay area and the South Bay (Silicon Valley and San Jose).

The name of the agencies were ‘Business Class Escorts,’ ‘The Platinum Club,’ Premier Model Agency,’ and ‘The Men’s Club’ (a gay agency that catered to rich and famous men).

Keavy and Dudgeon hired approximately 100 employees to work at their various agencies. Over the next year, their client list included 15,000 names of corporate raiders, celebrities, and athletes.

The hourly fee ranged from $275 to $350 and the clients had encounters with gorgeous women who resembled A-list actresses. The escorts brought Keavy their credit card receipts and cash they collected during the previous week and Keavy cut them each a check.

Each week, Keavy’s cut came to $30,000. Her gross income for each year was $1.6 million. The site drop rotated each week among 4-star hotels in San Francisco.

Keavy demanded that the escorts dress businesslike and classy. Wear nylons and not fishnets.

On a hot summer night, an escort named Angel caught the attention of hotel security, which detained her as she left the building because her attire was far from classy. The police were called and this would launch an investigation into the agency.

Detectives trailed Keavy in her silver four-door BMW and kept an eye on her San Mateo home.

When the police busted Keavy, they confiscated her laptop computer and spent the next few hours answering the phones, which were ringing non-stop. Men, some famous and not so famous, were calling from all over the world, requesting sex with and without condoms.

While Keavy was being interrogated at police headquarters, her residence was being raided in San Mateo. Cops confiscated a client database; booking logs, financial records and $19,000 in credit card receipts and $170,000 in cash.

The next day, headlines blared, “Million Dollar A Year Prostitution Ring Infiltrating Silicon Valley And The Whole Bay Area.” The two alleged ringleaders; Keavy and Dudgeon were arrested and booked on suspicion of pimping and pandering.

Keavy posted $30,000 bail the same day police booked her into Santa Clara jail.

She was shocked to learn that the police had taken $170,000 in cash out of her home, the money had been stashed in envelopes and kept in a Louis Vuitton travel bag and the phones that once rang off the hook were now disconnected. To make matters worse, authorities froze her bank accounts.

While checking into Keavy’s background, police discovered that Keavy began as a call girl for what was then known as ‘J.B. Phillips Escorts.’ She soon graduated to working as a booker.

Bookers didn’t make much as escorts ($4,000-$6,000 per month) and Keavy felt the pinch.

By this time, Keavy had decided to buy the business. The agency was owned by Steven Muro; who once bragged that he was, “The Male Heidi Fleiss of the Bay Area.”

Keavy would have a maternal relationship with her girls. She discouraged them from using drugs and even put one through rehab and she was a bridesmaid at one of their weddings.

Regarding policy, the agency practiced a “don’t ask, don’t tell” policy regarding sex. Escorts were hired as independent contractors and Keavy didn’t want to hear specifics. The agencies made additional money by charging an $85 to $100 referral fee for each date.

Whereas Heidi Fleiss fell prey to the IRS. Keavy tried to be a taxpaying citizen. She filed her income taxes on time by using the name of “Corporate Event Services.” She also issued 1099 forms to the escorts at the end of each year.

Keavy also ran half-page ads in the yellow pages throughout the bay area, mainly, in the northern cities that were lax on prostitution compared to the south bay cities (Silicon Valley, San Jose). Former San Francisco district attorney Terrence Hallinan once declared prostitution cases as a low priority but Silicon Valley and San Jose were a different story because the south bay’s population was more socially conservative. Keavy refused to run ads in the south bay yellow pages.

For the first three years of operation, Keavy managed to avoid arousing the interest of San Jose vice until the vice squad became wise to Keavy’s operation after Angel was apprehended and questioned.

After Keavy was released on bail, she found herself without any money, a business or livelihood. To make matters worse, her business partner Mark Dudgeon decided to testify against her for the prosecution to receive a lighter sentence.

Dudgeon didn’t have any major criminal history but he did have a sordid past, which police accidentally discovered.

Among evidence, they seized hardcore X-rated videos with Dudgeon on the cover under another identity. Dudgeon used the name Devon Rexman when he made porn movies.

Dudgeon toiled mostly in the gay porn bondage subculture. Dudgeon had appeared in at least an half dozen adult movies.

Dudgeon told cops that he also use to work as an escort and that his first paid date was with a physically disabled man. At first, the situation felt awkward but as the hour went on he grew more comfortable.

Dudgeon also admitted to running the gay branch of the business, he also made hiring recommendations to Keavy.

The cops would arrest Keavy again, and hold her on a $3 million dollar bond. Her lawyer argued that serial killer Wayne Ford, who walked into police headquarters with the severed breast of one of his victims was held on just $1 million dollar bail after he was arrested and charged with killing four people.

Six other women who worked at Keavy’s agency were also arrested and brought in on $250,000 warrants. Even women who had left the business more than a year before were arrested.

A grand jury would hand down an indictment of the madam and her staff.

Keavy would be convicted and sentenced to three years in a minimum-security prison.

What is unbelievable about this case, only the female escorts were arrested and charged and only the female employees (behind the scenes) were arrested and charged. None of the male escorts who represented 20 percent of the business were even called to testify, let alone face criminal charges.

Source: Will Harper for “Metro Active.com”