The president of a self-proclaimed “prestigious” and “upscale” Miami Beach escort agency was indicted Wednesday by the Justice Department — not over pimping but on allegations of corporate and personal tax fraud.
Miami’s Dennis Zarudny understated his personal income, his spouse’s personal income and the gross income of his company, called Denzar, according to the indictment.
State records place Denzar in Miami Beach’s Akoya condominium, 6365 Collins Ave. in Miami Beach. Denzar, the indictment says, runs Elite Escort Service (also called “Elite Miami Escorts”), a company whose website bills it as a “prestigious escort agency providing 24-hour outcall escort services & adult entertainment for upscale gentlemen and couples in South Florida.”
The indictment says Zarudny declared the agency grossed $153,361 in 2011, $99,519 in 2012, $109,578 in 2013, and $114,178 in 2014. Applying the low end of Elite’s stated price range of $500 to $800 an hour, those figures would mean Elite had paying customers for less than six hours a week in 2011, less than four hours a week in 2012, and just over four hours a week in 2013 and 2014.
Zarudny is Denzar’s lone shareholder, according to the indictment. Denzar chose a tax class for which its income, losses and deductions would be reported on Zarudny’s personal tax return.
As for his individual income, the indictment says Zarudny declared $47,492 from Denzar for 2011, $46,381 for 2013 and $50,828 for 2014. Zarundy and his wife declared their total income for 2012 was $33,959 and Zarudny’s income from Denzar was $29,955.
According to records, Zarudny has a misdemeanor battery case still open in Miami-Dade Circuit Court from Jan. 1. A felony pimping charge from 2002 was dismissed before trial.