(Newswire.net — August 31, 2014) — It’s believed Carmela Panico, 52, laundered more than $2 million and promoted prostitution at her coffee stands such as Java Juggs Espresso in Everett that was equipped with a dancing pole.
She bought property and coffee huts with other cash, sometimes bringing along a money counter to dole out the bills. Her baristas reported making hundreds of thousands of dollars out of her stands, working mainly for tips.
The woman told the police the price for a cup of coffee started at $6 and customers typically paid with a $20 bill. The baristas kept the rest to shake their breasts or expose their genitals. They charged more for sex acts with the droves of men who stopped at the stands, mainly located along Highway 99 in Snohomish County.
Prosecutors on Thursday charged Carmela of Snohomish, with promoting prostitution and money laundering. They allege that Panico was the madam of drive-through brothels, raking in millions of dollars and laundering the illegal profits through property acquisitions.
“Panico’s businesses were driven by prostitution and lewd behavior,” Snohomish County deputy prosecutor Bob Hendrix wrote in charging documents. “Her profit margin at times was twice that of well-run, established coffee stands,” Hendrix said.
Panico allegedly under-reported her earnings to the Internal Revenue Service when dealing with large quantities of cash. Investigators seized nearly $250,000 from her Snohomish home during a raid last year. The city of Everett has taken legal steps to keep the cash, alleging the money is profits from a criminal enterprise.
It’s no secret customers at the drive-thru stands were getting more than just cappuccinos at her other stands called Twin Peaks, Bella Butterscotch and the Hot Spot.
Court documents now reveal Panico — a former exotic dancer — ran her coffee stands like a brothel. She hired employees with stripper or escort experienced and fined the women if they didn’t wear high heels, maintain a tan or wear makeup, according to the Everett Herald newspaper.
A former Snohomish County sheriff’s sergeant also remains charged with multiple crimes in connection with the lengthy investigation into Panico’s Java Juggs stands. Darrell O’Neill is accused of tipping Panico and baristas off to ongoing police investigations.
A 30-year veteran with the sheriff’s office resigned after his arrest last year. He has pleaded not guilty to the charges.
According to court documents, O’Neill was given sexual favors in exchange for the information. Five of Panico’s stands were located in his patrol area in south Snohomish County, mainly along Highway 99.
Panico is scheduled to appear in Snohomish County Superior Court next week to answer to felony charges. She remains out of custody. Her attorney has told the court that Panico is no longer in the coffee business and has sold off some of her stands and leased others.