Federal authorities announced that Philadelphia-based corporations R.S. Duffy, Inc. and National A-1 Advertising, Inc. pleaded guilty in federal court before Judge Christopher C. Conner.

Pursuant to a plea agreement with the government, National A-1 Advertising and R.S. Duffy pleaded guilty to the money laundering conspiracy charge in the Information, will serve a probation term of 18 months, and pay a $1,500,000 fine. In addition, under the terms of the plea agreement, the defendants agreed to the criminal forfeiture of $4.9 million in cash derived from the unlawful activity, as well as forfeiture of the domain name, Escorts.com, all of which represent property used to facilitate the commission of the offenses.

Sentencing has been scheduled for March 1, 2012.

According to authorities, on November 1, 2011, an Information was filed alleging that the corporate defendants operated an Internet enterprise called Escorts.com which facilitated interstate prostitution activities. The defendants developed and operated an Internet website, using the domain name Escorts.com, and created an online network for prostitutes, escort services, and others to advertise their illegal activities to consumers and users of those services.

The defendants received subscription fees and payments in the form of money orders, checks, and credit card credits, and wire transfers from users of Escorts.com throughout the nation. The funds the defendants received were the proceeds of violations of federal laws prohibiting interstate travel in aid of racketeering enterprises, specifically prostitution, and aiding and abetting such travel.

The money laundering conspiracy charge alleged that the defendants agreed to engage in monetary transactions in property of a value greater than $10,000 derived from those unlawful activities. In addition, the Information alleged that in connection with the operation of Escorts.com, the defendants created and maintained a network of Internet customer service accounts which facilitated and caused the transfer and movement of the proceeds of these unlawful activities from locations throughout the United States, including the Middle District of Pennsylvania, to the defendants’ business operations at 106 South 7th Street in Philadelphia and to the defendants’ accounts at financial institutions, investment funds, and financial services providers.

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