Reply #4: This is fraud, as Baumgarten says, whatever you think of prostitution

[muriel_volestrangler]

Davis says one CEO ordered her to send him invoices for "roof repair on a warehouse" to disguise the payment for prostitutes from corporate funds.

"That is fraud," said former New York prosecutor Sid Baumgarten, who told 20/20 the district attorney should have investigated the men.

"Not necessarily just for the patronizing but for the use of these business records and credit cards to see what kind of fraud or tax fraud was being used. And if so, that is a major offense," Baumgarten said.

When ABC News contacted that CEO, he said he used his corporate card to pay for the escort service to entertain clients, but that there was no sex involved.

http://abcnews.go.com/Blotter/Story?id=6813806&page=2

I don't know what the New York prostitution laws are, but this was tax fraud - claiming personal expenditure as company expenses. Throw the book at them. Get them sacked. People who defraud the state are a problem to us all, in times like this.