Brothel Operator Sentenced For Promoting Prostitution, Money Laundering 

By Andrew Gorosko

BRIDGEPORT — A Newtown woman, who has pleaded guilty to criminal charges of promoting prostitution and money laundering, was sentenced November 29 in US District Court to five months in federal prison to be followed by five months of home confinement.

Patricia Gougelmann, 66, also known as Patricia McNally, of 74 Taunton Hill Road, Newtown, was sentenced by US District Judge Janet C. Hall, according to US Attorney Kevin J. O’Connor. Gougelmann formerly lived in Courtland Manor, N.Y. Gougelmann is scheduled to start serving her prison sentence in late January.

The conviction stems from Gougelmann’s ownership and operation of brothels that masqueraded as health spas in Danbury, Waterbury, and Bridgeport.

Judge Hall also ordered that Gougelmann pay a $5,000 fine, forfeit $26,800 in currency previously seized by law enforcement, and pay a money judgment of $104,000 to the US government.

 Last July 22, Gougelmann waived an indictment and pleaded guilty to using an interstate facility to promote prostitution, and money laundering. The interstate facility was telephone lines that were used to process credit card transactions for the prostitution business.

“Prostitution businesses damage the quality of life in the neighborhoods where they are located, and federal law enforcement is committed to shutting them down, prosecuting those responsible for their operation, and seizing any available assets,” Mr O’Connor said in a statement.

According to court documents, between January 1995 and December 2004, Gougelmann owned and operated Matrix Enterprises, Anthemion Enterprises, and Alpha Enterprises.

The firms did business as Genesis, located at 23 North Street in Danbury; Cleopatra’s Spa at 1480 Meriden Road, Waterbury; and Dolce Vita, at 2926 Fairfield Avenue, Bridgeport. The firms were registered with the State of Connecticut and identified themselves as health clubs.

According to Mr O’Connor, although the facilities advertised and promoted themselves to be health clubs offering personal services, including whirlpools and tanning, they were, in fact, houses of prostitution in which women performed sexual acts for customers in exchange for money.

Between January 1998 and March 2004, the three facilities received approximately $1,129,000 in gross receipts from credit card charges.

According to court documents, the three brothels accepted credit cards including VISA, MasterCard, and American Express as payment for prostitution. Such payments included a “house fee” based on the length of time that a client spent with an employee, plus a “tip” that equaled or exceeded the house fee.

The credit card charges originating at the three brothels were processed outside of Connecticut and then forwarded to the Fleet Bank branch office in Newtown, according to the court papers. The three brothels maintained business accounts at Fleet Bank from which business operating expenses were paid. Fleet Bank subsequently merged with Bank of America.

According to the court documents, in January 2002, Dolce Vita received its last credit card payment. Also, in May 2004, Genesis and Cleopatra’s Spa terminated their respective merchant credit card accounts and then declined to accept credit card usage by clients as payment for prostitution.

In the convictions, Gougelmann had faced a maximum prison term of 20 years and a maximum fine of $500,000.

The Internal Revenue Service’s criminal investigation unit pursued the case against Gougelmann.