UNITED STATES ATTORNEY GRETCHEN C.F. SHAPPERT
WESTERN DISTRICT OF NORTH CAROLINA

FOR IMMEDIATE RELEASE
THURSDAY, NOVEMBER 15, 2007

CONTACT: SUELLEN PIERCE
704.338.3120
FAX 704.227.0264

THREE FROM CHARLOTTE AREA INDICTED BY FEDERAL GRAND JURY IN CONNECTION WITH INTERNET-BASED PROSTITUTION SERVICE
Charlotte Woman Charged in Seventeen Counts in U.S. District Court CHARLOTTE, NC - Sallie Wamsley-Saxon, 57, her husband, Donald Saxon, 52, both of Charlotte, and Glen Fox, 58, of Taylorsville, NC, have been indicted by a federal grand jury in Charlotte on numerous counts alleging conspiracy in connection with an exclusive internet-based prostitution service and transportation for illegal sexual activity. Sallie Wamsley-Saxon and Donald Saxon were also charged in the indictment with allegations of travel in interstate commerce in aid of racketeering enterprise, and conspiracy to commit money laundering.

Today’s announcement was made by Gretchen Shappert, United States Attorney for the Western District of North Carolina. The indictment was formally filed with the court on Thursday, November 15, 2007 and can be accessed at www.ncwd.uscourts.

Shappert was joined in today’s announcement by Nathan T. Gray, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina; Charles Hunter, Special Agent in Charge, IRS Criminal Investigations in North and South Carolina and Chief Darrel Stephens of the Charlotte-Mecklenburg Police Department.

According to the charges contained in the indictment, beginning about January 2001 and continuing through October 2007, Defendant Sallie Wamsley-Saxon and others owned, controlled, and operated an exclusive internet-based prostitution service from her residence in Charlotte. The alleged prostitution service, referred to in the indictment as “HUSHHUSH,” operated under two shell companies, one a North Carolina corporation with Defendant Wamsley-Saxon being the registered agent. The indictment alleges that the prostitution enterprise operated primarily in Charlotte and catered to affluent male clients, and that it was affiliated with other prostitution services in several states including Georgia, Missouri, and Illinois. The indictment describes Defendant Wamsley-Saxon’s hiring and business practices with regard to employees, as well as clients. According to the indictment Defendant Wamsley-Saxon kept one or more “HUSHHUSH” prostitutes “on-call” in Charlotte during any given week, and charged clients up to $700 per hour for a session with a prostitute, sometimes giving discounts to clients who scheduled multiple-hour sessions or multiple prostitutes at a time. Among other things, the indictment alleges that Defendant Wamsley-Saxon generally allowed her prostitutes to keep 70% of clients’ fees but required the prostitutes to pay 30% to her; that her husband, Defendant Donald Verdery Saxon, picked up payments from prostitutes at or near the hotels in which they worked; and that Defendant Glen Fox conducted photo shoots of new “HUSHHUSH” employees at upscale hotels in the Charlotte area, taking dozens of nude photos which would later be posted on one or more of the internet sites managed by Defendant Wamsley-Saxon.

In the 17-count federal bill of indictment, Sallie Wamsley-Saxon, Donald Verdery Saxon, and Glen Fox are charged with one count alleging conspiracy to cause individuals to travel in interstate commerce to engage in prostitution and to use the mail and other facilities in interstate commerce with the intent to distribute the proceeds of an unlawful activity. In addition all three defendants are charged in eight separate counts alleging causing an individual to travel in interstate commerce to engage in prostitution. In Counts Ten through Sixteen, Sallie Wamsley-Saxon and Donald Verdery Saxon are charged in seven separate and additional counts alleging they caused a facility in interstate commerce to be used with the intent to distribute proceeds of an unlawful activity and to promote the unlawful activity (racketeering). In Count Seventeen Sallie Wamsley-Saxon and Donald Verdery Saxon are each charged in that count, which alleges conspiracy to commit money laundering.

If convicted, the defendants face maximum statutory penalties, as follows:
Count One - Conspiracy: 5 years/$250,000
Counts Two - Nine - Mann Act Violations: 20 years/$250,000 per count
Counts Ten - Sixteen - Travel in Interstate Commerce in Aid of Racketeering Enterprise: 5 years/$250,000 per count
Count Seventeen - Money Laundering Conspiracy: 20 years/$500,000 or twice the value of the monetary instrument or funds involved, whichever is greater
However, it is important to note that any sentence received upon conviction will be influenced by the Federal Sentencing Guidelines, which the Court consults in order to determine each defendant’s actual sentence. Sentences are based upon a formula that takes into account the severity and characteristics of the offense and each defendant’s criminal history, if any.

The charges contained in the indictment are only allegations. In the American justice system, a person is presumed innocent unless and until he or she is proven guilty in a court of law.

The indictment includes a Notice of Forfeiture and Finding of Probable Cause that the Defendants forfeit to the United States all of the property involved in the offenses with which they are charged in the indictment, and all property traceable to such offenses. Real property listed in the Notice of Forfeiture includes that located at 5840 Coatbridge Lane, Charlotte, North Carolina. Other property listed in the Notice of Forfeiture includes all currency and monetary instruments which were received during the crimes alleged in the indictment including approximately $3 million in proceeds and $55,000 in cash and approximately $50,00 in gold coins seized on or about November 2-5, 2007; one 2007 Toyota 4Runner; Green Dot cards and account balances in the names of the defendants and/or their aliases; Wachovia Securities accounts in the names of the defendants and/or their aliases; and Sun Trust accounts in the name of Soft Touch Promotions or in the names of the defendants and/or their aliases.

United States Attorney Shappert said the indictment represents the result of an extensive and ongoing investigation by officers of the Charlotte-Mecklenburg Police Department and Special Agents of the IRS Criminal Investigation Division and FBI.

Assistant United States Attorneys Keith Cave and Thomas Cullen of the Criminal Division of the U.S. Attorney’s Office in Charlotte will handle the prosecution for the government.

U.S. v. Sallie Wamsley-Saxon, et al
Docket No.
SALLIE WAMSLEY-SAXON
also known as “Sallie McAfee Wamsley”, “Sallie Foy”, “Sallie Bradford”, “Sandy Bradford”, “Sallie Saxon” and “Sallie Panos”
Charlotte, NC

DONALD VERDERY SAXON
Charlotte, NC
GLEN FOX
Taylorsville, NC