D.C. Madam scandal
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In June 2004, the United States Postal Inspection Service and Internal Revenue Service began an investigation into an illegal prostitution business being run in Washington, D.C.[9] During the course of the investigation, Palfrey was identified as the operator of the prostitution ring.[9] In October 2006, agents with the United States Postal Inspection Service posed as a couple who were interested in buying Palfrey's home as a means of accessing her property without a warrant.[10][9] Agents subsequently froze bank accounts worth over US$500,000, and seized papers relating to money laundering and prostitution charges.[9][11]

As her case proceeded, it was revealed that Palfrey's escorts charged as much as $300 per hour, and many have had professional careers. Palfrey continued to reside in California, and cleared some US $2 million over 13 years in operation.[6] Palfrey appeared on ABC's 20/20 as part of an investigative report on May 4, 2007.[12]

In response to Palfrey's statement that she had 10,000 to 15,000 phone numbers of clients, several clients' lawyers contacted Palfrey to see whether accommodations could be made to keep their identities private.[13] Ultimately, ABC News, after going through what was described as 46 pounds (21 kg) of phone records, decided that none of the potential clients[14] were sufficiently "newsworthy" to bother mentioning.[15]

On July 9, 2007, Senator David Vitter (R-LA) acknowledged that he had been a customer of her escort service.[16]

Thirteen former escorts and three former clients testified at her trial.[17][18][19]

On May 1, 2008, roughly two weeks following her April 15 conviction, Palfrey was found hanging in a storage shed outside her mother's mobile home in Tarpon Springs, Florida. Police found handwritten suicide notes in the bedroom where she was staying, dated a week before her death. The autopsy and the final police investigation concluded her death was a suicide.[3][5][28]

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