MIAMI BEACH — The owner of a high-end Miami Beach escort service, has been nabbed for tax fraud.
Dennis Zarudny, 39, was booked this week on charges of filing fraudulent corporate and individual tax returns. According to federal prosecutors, he owns Elite Escort Service, “a prestigious escort agency providing 24 hour out-call escort services & adult entertainment for upscale gentlemen and couples in South Florida.”
The upscale pimp allegedly did not declare all of his income or his wife’s income, or his company profits on his tax return. He was arrested Tuesday and the indictment states that Zarudny, who has run the agency for 16 years, only acknowledged earnings of $153,361 in 2011, $99,519 in 2012, $109,578 in 2013, and $114,178 in 2014. The figures reflect that the escort agency, which charges $500 to $800 an hour, would have only operated for under six hours a week in 2011, under four hours a week in 2012, and little more than four hours a week in 2013 and 2014.
According to its website, Elite Escort Service “receives over 300 employment applications per month and only invites ten to fifteen of the most beautiful escort girls for an interview, then we only choose one or two girls who have potential to become the best in the industry.” The call girls must complete eights hours training before seeing clients.
If found guilty, Zarudny could be sentenced to up to three years in prison for each of the eight counts, as well as a period of supervised release, restitution and fines.
“The indictment further alleges that from 2011 through 2014, Zarudny filed with the IRS fraudulent corporate and personal income tax returns that under reported his business gross receipts and the income he earned from the business,” according to federal prosecutors.
The case will be prosecuted by Assistant U.S. Attorneys Joshua S. Rothstein and Trial Attorney Grace Albinson of the Tax Division.
Zarudny, whose address is listed as 6365 Collins Ave. in Miami Beach, aka the oceanfront Akoya Miami Beach, still has a misdemeanor battery case pending in Miami-Dade Circuit Court. A 2002 felony pimping charge against him was dismissed before going to trial.