Skip to main content

Barista-stand owner faces prostitution charge

EVERETT, Wash. (AP) — The owner of bikini coffee stands in Washington state banked more than $2 million in just three years because her baristas were also selling sex acts, according to local prosecutors.

Snohomish County prosecutors charged Carmela Panico, a 52-year-old former nude dancer, with promoting prostitution and money laundering, alleging that she operated drive-thru brothels throughout the county north of Seattle, The Everett Herald reported Thursday (http://bit.ly/1lliY1P ).

Her baristas made money mostly on tips, saying they could earn hundreds of thousands of dollars, authorities said. The women said they could make up to $14 for baring their breasts or genitals and charged more for sex acts, according to charging documents.

“Panico’s businesses were driven by prostitution and lewd behavior,” Snohomish County deputy prosecutor Bob Hendrix wrote in the documents. Panico was charged Thursday, the newspaper reported.

Her attorney told Snohomish County Superior Court that she left the coffee business and sold some of her stands and leased others.

Authorities allege that she didn’t report her full earnings to the Internal Revenue Service by dealing in large amounts of cash. A search at Panico’s home last year resulted in the seizure of nearly $250,000.

The investigation has also led to the prosecution of a veteran sheriff’s sergeant. Darrell O’Neill is accused of tipping off Panico and her workers to police scrutiny in return for sexual favors. O’Neill resigned after his arrest last year and has pleaded not guilty. His trial is scheduled for November.

Authorities allege that baristas had a certain dollar amount they were supposed to make for Panico, and the rest the women could keep.

“The sales goals were effectively rent that the girls paid to have the opportunity to perform lewd conduct or acts of prostitution,” Hendrix wrote.

The documents say that Panico could deduct money if the women failed to wear high heels throughout their shifts, did not have a tan or failed to put on makeup.

___

Information from: The Daily Herald, http://www.heraldnet.com

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story