Brothel Madam Jailed For £1.4M Prostitution Empire

The Jones's March Home

A brothel madam, who generated revenue of £1.4m during the decade-long tax-free illegal enterprise, has been jailed for four years.

Dorothy Jones, 64, of Dunvegan Close, Manea, March, Cambridgeshire rented three properties in south-west London, but was hunted down by HMRC, who says she dodged £386,000 in tax.

It financed the purchase of a luxury detached 2575 sq foot five-bedroom new-build house complete with an outdoor hot tub.

She pleaded guilty to managing the brothels between 2003 and 2014.

The first, named 'Sapphires', was located in a flat at 214A Burlington Road, New Malden and 'Annabella's' occupied next-door properties at 27 and 29 St. James Road, Surbiton.

Jones also pleaded guilty to cheating the public revenue of income tax between 2003 and 2013 and laundering criminal property via a Santander bank account, namely £137,000 between 2007 and 2013.

Luxury: Jones's Hot Tub

Along with her husband Stephen Jones, 52, she also admitted fraud by false representation, namely acquiring a £115,000 mortgage for their matrimonial home.

The couple produced forged documents for companies that did not exist to support the mortgage application in which Dorothy claimed to be a £48,000 a year masseuse and Stephen a £35,000 a year family entertainer.

He received a twelve-month community order for the offence, which includes 180 hours community service work and was ordered to pay £250 costs and a £60 victim surcharge.

A third defendant, Denise Oliver, 46, of 61 Springfield Place, New Malden pleaded guilty to possessing criminal property, namely £1,221 cash from the brothels, which police found during a raid of her home.

She also received a twelve-month community order, which includes 120 hours community service work.

Prosecutor Miss Sarah Selby told Kingston-upon-Thames Crown Court: “These businesses were owned by Dorothy Jones. She rented the properties and received most of the profits they generated.”

Annabella's Brothel

She did not declare the brothel income throughout the period, only disclosing minor amounts of revenue from other sources.

The couple's joint mortgage application to the Yorkshire Building Society was false, but it has been paid off and they now face selling their home to cover HMRC's application for unpaid tax.

Documents seized during the investigation revealed an estimated £1.4m turnover from the brothels, explained Miss Selby, with profits of £950,000 giving an approximate yearly income of £95,000.

Also seized was evidence she made cash deposits of £137,000 into her bank account to cover the mortgage payments.

When Oliver's home was raided the cash was found stuffed in four separate envelopes marked with the name of the prostitute who had earned it.

“She was seen at the brothels on a number of occasions,” said Miss Selby.

“How has it been allowed to go on for so long?” asked Judge Peter Birts QC, who was told the brothels were relatively low-key with only a handful of local complaints about unusual coming-and-goings.

The court heard confiscation proceedings have been initiated and a large amount of valuable personal possessions had been seized from Mrs Jones.

Her lawyer estimated she could make £70,000 to £100,000 available to the taxman after the sale of her home.