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The 'Morgan Stanley' Madam Pleads Poverty

March 13, 2012
[ by Melanie Gretchen ] The alleged madam, accused of running a high-end and highly profitable Manhattan brothel, doesn't "have two nickels to rub together," one of her attorneys told a judge earlier this week.  The claim of poverty by the mother of 4 emerged at a court hearing, in which she sought to remove her court-appointed attorney to select a new one, was at odds of the prosecutors' portrait of the alleged madam as having earned millions of dollars running an Upper East Side brothel for wealthy and well-connected clients. Charges. Anna Gristina, 44, has been charged with 1 count of promoting prostitution and is being held on a $2 million bond.  Since her arrest in late February, Ms. Gristina's attorneys have twice unsucceccfully tried to have her bail lowered, characterizing it as inappropriately high for a person accused of a single count of promoting prostitution. "The allegation is that she made over $10 million, possibly $15 million," said Manhattan State Supreme Court Justice Juan Merchan.  For her part, Ms. Gristina has been portrayed by her attorney last week as a suburban mother who was active in pig-rescue operations and wanted to set up a dating website for wealthy people. Prosecutors paint another story, saying she has made millions over a 15-year period, even warning during bail hearings that some of the money had been "squirreled away" in case she needed to flee.  In court documents, prosecutors cite wiretap conversations in which she boasts of powerful clients as well as allies in law enforcement.  The judge was incredulous over claims that Ms. Gristina is broke. Defense Request. Peter Gleason, a pro bono attorney representing Ms. Gristina, said Monday that his client would require the services of a court-appointed lawyer—and requested that the defender already designated by the court, Richard Siracusa, be dismissed.  Justice Merchan rejected the request that Ms. Gristina, be allowed to select her next court-appointed defenderon the grounds that it was preferential treatment. Going forward, the judge ordered Ms. Gristina to cooperate with her 2 current attorneys, with Mr. Siracusa to lead her criminal defense.  Mr. Gleason would be "welcome and invited to speak in court," Justice Merchan said, but only after consultation with Mr. Siracusa. Defense Bond. In support of her poverty claim, Mr. Gleason offered his $2.5 million TriBeCa apartment to secure the accused brothel owner's bond.  In addition, he invited Ms. Gristina and her family to live there while she is supervised by an electronic ankle monitor. Assistant District Attorney Charles Linehan objected to Mr. Gleason's offer, calling it "unethical."  Justice Merchan said he will study the issue and return with a decision Thursday;  his preliminary thought was that it posed no obvious violation of ethical rules. Outside of court, Mr. Gleason said his client would be in danger while in jail because prosecutors described her alleged prostitution ring as employing under-age girls.  He referred to jail-house lore that alleged abusers of minors are targets of violence by fellow prisoners. To date, Ms. Gristina has been the only person arrested in a 5-year prostitution probe by the Manhattan district attorney's office.  A co-conspirator, who has not been named publicly in court documents, is expected to turn herself into authorities Tuesday, a person familiar with the matter said. Since her arrest, Morgan Stanley broker David Walker, who prosecutors say was in talks with Ms. Gristina to set up an online prostitution business, has been put on leave.  We'd be willing to bet he won't be making a claim of poverty. For further details, go to [WSJ, 3/12/12] and [Reuters, 3/8/12].