Owner of Drive-Thru Bikini Coffee Stands in Washington Accused of Promoting Prositution: Former Nude Dancer Charged
The owner of a series of bikini coffee stands known as Java Juggs in Washington state is accused of money laundering and promoting prostitution after it was discovered her baristas were selling sexual acts in addition to coffee.
Snohomish County prosecutors are building a case against Carmela Panico, a former nude dancer, for allegedly running a set of drive-thru brothels throughout the area north of Seattle, as reported by The Everett Herald on Thursday.
Panico, 52, is believed to have made more than $2 million in three short years.
Authorites said her baristas made most of their money through tips and could earn hundreds of thousands of dollars. The women would make up to $14 for showing their breasts or flashing their genitals and charged more for sexual acts as reported in court documents.
As long as the baristas earned a certain dollar amount set by Panico, the women could keep the remaining money. Panico deducted money from the girls if they failed to wear high heels or makeup, according to court documents.
"Panico's businesses were driven by prostitution and lewd behavior," Snohomish County deputy prosecutor Bob Hendrix said in the documents. "The sales goals were effectively rent that the girls paid to have the opportunity to perform lewd conduct or acts of prostitution."
Panico was charged Thursday. Her attorney told the Snohomish County Superior Court that Panico had left the coffee business, selling some of her stands and leased others.
Her charges are based on claims that Panico did not report her full income to the Income Revenue Service because many of her business deals were made in cash. Last year, a search of her home uncovered nearly $250,000, which was seized.
The investigation also revealed ties to a veteran sheriff's sergeant. The officer in question, Darrell O'Neill, allegedly tipped off Panico and her employees to police investigation in return for sexual favors. He resigned following his arrest but pleaded not guilty to any wrongdoing.
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