- All right, Freddy? - Yes. - [Mark] Freddy, where
are you from originally? Where'd you grow up? - So I was born in Kuwait. My dad is Lebanese, my mom is Armenian, but we moved here when I was three. To Boston. So I grew up in Boston. - [Mark] And you had a good childhood? - Great childhood. Mom
and dad were together since they were teenagers. My dad was a contractor and
my mom was a stay-at-home mom. Catholic upbringing, you know, did the the Altar boy,
you know, first communion, all that good stuff. - [Mark] Yeah typical
thing for Boston, right? - Yeah. - [Mark] And so you left home at what age? During college? - I was 13 when I left home. It had a little issue with my dad and it was either him or I. He was becoming kind of too abusive towards my mom and I stood up to him and he is from the generation
where one of us had to give and I wasn't giving and he wasn't giving. - [Mark] So at 13 you, you went where? - Left home. I used to hang out with
people older than me and we had a neighbor, two
doors down, my Italian friend. I lived in an Italian neighborhood. In Boston back in those days, you either had Irish, Italian, black whatever neighborhoods, you know? So I lived in Roslindale, which
has predominantly Italians. So a friend of mine, which was 19 at the time he lived like
two doors down from us. So I just stayed with them, stayed in their station wagon, they had it woodied. So I roughed it up for
about a couple of months. And then, but I still went to school, that was embedded in us. Graduated at 16, went to
college, went to UMass, started working at 18
as a restaurant manager, which was the only job I've
ever had working for somebody. So, yeah, that's basically it. I went to college and graduated and worked as a restaurant manager. And then I decided to
move out West in '85. - [Mark] You came to California? - Yeah, I came to San Diego. I was an amateur competitive
bodybuilder at the time. So I wanted to move out here, you know 'cause Arnold was big and
pumping iron and all that. So I wanted to come out to Venice and compete in bodybuilding
and live that lifestyle. And that's what I did. - [Mark] And then at some point you got into owning brothels. - So do you want me to talk to
you about how that happened? How I became that guy? If you had told me back then that I'll be doing that at the time, I would've said there's no way. But what happened was I got
into the nightclub business and I became one-third owner
of a nightclub called Diego's, which was really popular back in the days in Pacific beach in California. And I would have customers
come in and get drunk. You know how guys are and
every once in a while, at least once or twice a week the guy would go, we had
really beautiful, gorgeous waitresses and barmaids and they had them in
really short mini skirts. I don't know if you remember the eighties but back then everything
was miniskirt, right? And the guys will ask me, "Hey, you know can I go out with this girl?" You know and they'll start offering money. I'm like, "No, man, you
can't ask me, go ask her." You know, I wasn't even on that plane. I wouldn't even want to talk about it. I didn't want him to
know anything about it. They just it's between you and her. I bought my own club in Ridgecrest. It was the only club in town. And the same thing happened. I've always had really good looking, I've always hired good
looking help, you know, most of the 99% women. 'Cause I like, I love women. So I want to be around women. And the same thing happened. Guys would ask me, "Hey can
I go out with so-and-so?" "Can I go out with the DJ?" "Can I go..." Man, just go ask her. So now fast forward to '94, when I moved to Hawaii. I had an opportunity to a
four hour showroom in Waikiki. So I knew this guy that
they had a showdown they called Legends and Concert which they have at the Imperial palace. I don't know if it's still have now. But his name was Marvin Silverman. He said, "You know, I
have this comedy show. I don't want to do
anything with a showroom but I have another two years on the lease. If you want, take it over and you can do some sort of a show there." So, I started a show, I
called it Island Dolls. I stole the hostess of the show or the star of the show from another show 'cause she was already
well-known down there. So the show was called Island dolls. And the same thing, I would
have celebrities come in and they would, it was
basically like the show, it's called Crazy Girls in Las Vegas which is basically like a topless review. And you have a bunch of
like 12 girls on the stage and the star of the show, singing, dancing, cracking jokes, whatever MC. So I would have few celebrities come in and every once in a while they would ask, "Hey, can I go with so-and-so?" "Can I go with so-and-so?" The funny part is we
had a certain celebrity who's still pretty a
celebrity still today. And he liked the star of the show. Now at the time, the star
of the show and myself we became girlfriend and boyfriend, right? He didn't know this. So he offered 20 grand to
sleep with the girl, right? I've always been in love with her. I just wanted it to stay with the show because she was the heartbeat of the show. She was living with me at the time. So I went up to her and asked her. I said, "Hey so-and-so" She said, "Yeah I saw him he's
in the front row, whatever." I said, "Well, he's just
offered 20 grand, you know to sleep with you." I wanted to see her reaction, you know? She's like, "Oh no, I don't know because you know, you and I together." I said, "Look, I don't
care. It's up to you. That's 20 grand." You know, I was setting her up. She said, "Well, if it's okay with you, of course, you know." I learned real quick and
everybody has a price, right? And she was a Vegas girl to begin with. So that was the first time I ever had that kind of transaction. And I allowed it, you know. Of course she went and
they did whatever they did. She came the next day and
20 grand cash, you know? And that was a hook, you know,
big money sometimes hook you. So it was definitely a hook. And from then on, I
ended up moving to Vegas and start a limo service. Everybody's asking me more about
girls than the stupid limo. And I'm like okay, screw the limo. The limo is free. You know, here's the
girls and it just went on. And then I met this girl. Her name is Lisa Storm. She was a penthouse pat and she had just began
building her own website. This is 1998. And I had never heard. I've been online twice. Didn't know anything about it. Didn't know what an email was. So she started showing
me what she was doing. Beautiful girl, penthouse
pat, making good money. So I said, you know what? This is a really good thing. So I stuck with this girl,
became girlfriend and boyfriend. And that's how I got
introduced to online escorting. And it was amazing. It was such a breakthrough
because now I don't have to, because I was doing the limo thing, I don't have to actually do it in person. I can promote the business
from home or whatever. So that was a big revelation to me. And then you can of course scale it as many times as you want, sitting at home, with your
underwear or whatever, I'm like, wow, this is great. So I took it and ran with it. I basically trained
myself how to do websites, how to promote online,
how to place the ads, where to place the ads, how
to screen through emails, how to screen through the phones. And I trained with Lisa and actually she went
from like 20 or 30 grand a month when she was doing it by herself. And towards the end four years later, she was bringing in between
a hundred and 120,000 just from the escorting part because I ended up building like three different
websites for her and yeah. So she did not want me to
work with anybody else. And of course I wanted to make more money. So I split up with her
and started my own agency. And a couple of years later, I had over 220 girls and 33 phone girls. I got a license, it's called
an out-call promoter license. And that's also a
misconception about Vegas that it was legal. It's never legal, right? Either on the strip which is Clarke County or downtown Las Vegas which is
the city of Las Vegas, right? They have an intent law, meaning as long as you show up, as long as the girl
shows up even at valet, they can bust her. They don't have the
elements that is required in state of California. For example, you should
have to have sex for money. That doesn't happen in Vegas. As long as you show up and
agree to say, "Oh yeah," Boom. Done. So, and that's what happened. And Vegas is a completely different thing than anywhere else as far
as the business model, you have out-call which is
the girl goes to the client or in-call which is the client comes to the girl's location. In Las Vegas it was a 99.9% out-call because most of our clientele, they were professionals in
town for two or three days just for a convention, for
some sort of business meeting or a conference. They had their own hotel room and they felt safer in
their own environment. And they would just call
us when they're done with their work and hanging
out with their buddies and colleagues and doing
the dinners or whatever. So we worked predominantly
from 5:00 PM to 5:00 AM, seven days a week. And that was mainly our target market which is that one person, 99.9. Here's a spoiler alert,
99.9% of the clients through our 30 years of this is they're married or attached or have a girlfriend, boyfriend. Some of them did that too but so yeah, that's how it all progressed. - [Mark] How do you pick up 220 girls? Where do you find them? - In Vegas it's really easy. Just the way Vegas is and the
energy it has and the vibe, it attracts a lot of those type of girls that want to get into either stripping or they are already doing stripping and they go to the next
level in the VIP room. Then they end up calling
somebody like me to work because they see how
much money is involved. And usually what happened with me is I treated the girls really well. And I was really fair with them. I, most of the time I gave
them 50% of everything that they brought in. And some people might say, "Well that's a lot of money" to you but really they come
in with zero experience, zero investment, zeros
on everything costs money as you know, business costs money. Ads cost money, phone girls cost money, you got to pay them 10%. So they made really good money. And the average was about
50 or 60 grand a month for each girl. So one girl would do so well. And she was treated really nice by then we had a really
good screening system which is another very important
thing in this business. The 'most important thing' other than hiring the right girls. So you had to be very careful
of picking the right clients. Not all money is good money. You don't want to let money walk but you only want good money to come in. So we focused on that professional. You know, that I explained before and girls will bring other girls. I had a lot of students,
a lot of ex strippers. A lot of them came to Vegas
with their husband or boyfriend and things didn't work out and somebody ended up being
on drugs or what have you. And they ended up with me. - [Mark] Were drugs a
big part of the picture? - I'm totally against drugs. I have zero tolerance for drugs. 'Cause I think drugs is drama. Drugs to me equal drama. I've never done drugs. I don't do drugs. I probably smoked weed once in my life. Did ecstasy maybe twice. Even when I sold Coke before
I started doing this business, that's how I got the money
to get the nightclubs, I never was into drugs, you know, but in Vegas it was difficult. You had to turn a blind eye because the majority of the girls, I would say over 50% did indulge. Whether it's coke, crystal meth, ecstasy, heroin, you name it. So what I did is I tried to make sure they didn't do it at work or
with clients as much as I can. Of course, you can't control everybody. Now, when we get to
the Orange County part, that was completely different. That was a completely
different business model. It was a completely different setup. I had changed a lot of my ways and I wanted to really clean operation. Did you want me to expand on that? So what happened was I had a
problem in 2006 with the feds. They tried to get me on a
money laundering tax evasion because they couldn't get
me on the other thing. So and I was a talent agent
for Valcom studios at the time. I was the resident talent
agent for six years. So we had Sin City Talent Agency. So what they did was they
indicted me and you know, they can indict a ham sandwich really. They're gonna just put one
plus one, okay, here you go. Here, got an indictment. And I sat for 31 months
in North Las Vegas jail, which is where they held the federal pretrial
detainees at the time. Las Vegas does not have an
MCC because it's a small town. And it took me 31 months,
no bail, of course. And I beat him. I got out. And by that time they
had taken everything. And by me bringing them back, I had lost a lot of the value
of a lot of things that I had. For example, they took seven cars of mine and took them from Las Vegas to long beach for the US marshals so they can do the, if
I had lost the case, they would have just auctioned them off. Well, it's cost me over 36
grand to bring my own cars back to Las Vegas that they'd
taken in the first place. It's just, you know, it's a whole mess. So I was really short on cash. I tried a couple of different
businesses, legal businesses. And to be honest with
you, it was too rough. And the money, you get
hooked on the money. At least I was, on really good money. In Las Vegas, I never did less
than two or 300,000 a month. You know, that was just average. Sometimes you did over a million. And this is just for
me, you know, not gross. And so it's tough to go
from that to nothing. And even when I had businesses that were making 20,000 a
month, it just wasn't enough. I had got myself used
to a certain lifestyle which is a trap, right? I'm dealing with that right now. So by 2012 I was pretty much I had, I think $1,300 left to my name. I said, "Okay, so this
is what I'm going to do. I'm going to move to Orange County.' Cause I was thinking about moving to Newport beach anyways. I had some friends over there that kept telling me,
"Hey, move over here. That's where the money
is," blah, blah, blah. And I love the area. I said, Okay. I'm going to give myself five years or a certain amount of money which was eight figures, right? Whichever one comes first, I'm done. I'm retired, Bora Bora, Costa Rica, whatever I'm done, right? So this was in 2012, which I was 49. I've always thought I'd retire early but it doesn't work that way when Kids, if you watch this, when you do something illegal, there's no such thing as easy money. Easy money is the hardest money to make. Going back to Orange County. So I said, okay, five years
are X amount of dollars. Let's say $10 million just
for the sake of this video. So I started by doing I
called them Yummy Parties, everything was pink and nice and bubbly. And basically what I did was
I wanted to test the market. See what kind of people
are living in the area. What kind of clients I have. It was different model because in Vegas, everybody came to Vegas for business and that was my client. In Orange County, the
locals were my client because some people came to Orange County, but it's mostly, I have
to depend on the locals. So a friend of mine, she
used to do the fashion shows and lingerie shows. She's from Newport beach and she had like a good list of over 650 clients. So we put together yummy parties. Basically I went to orange and they had a lot of big
mansions over there in Orange. And I rented one and we
promoted it for about a month. It was a masquerade thing. And so everybody can have a mask because it's one of those things that people don't want
to, you know, be exposed. So I said, okay, great. This around Mardi Gras will
make it like a masquerade party. And we had a really nice, huge, probably like twenty-five,
30,000 square feet mansion with a big pool in the back, nice circular driveway. It had a big iron gate in the front. Everything was gated. So I had security at the gate. Everybody had to RSVP with a
pseudonym, you know, white dog or white, you know, sky or whatever. So nobody have to use their name. We knew who they were. So they come in, they on the
list on the tablet, come on in. Everybody's dressed in tuxedos, all the security guys and everything. I had valet come in a circular driveway, drop them off. A couple of girls came out with nice, long, sexy gowns and escorted them to the main doors. Huge doors, had two big
guys opened the doors. Just the whole eyes wide
shot episode, right? The same type of atmosphere. And they came in, you have
the two big staircases and came in, had a nice big bar set up. All the girls were in lingerie. I had over 95 girls. Most of them were models. I hired models, legit models like Victoria's secret models and stuff. And of course I have the
girls that will do anything, the escort type. So the way I had it set up, they'll come in and they get
seated or they go get a drink. I had a cocktail waitresses topless, they're all topless. The barmaids were topless, come in, all gorgeous girls, get their alcohol. And we made sure we had everybody's
RSVP for what they want, like to eat and drink. And I mean, everything was really upscale. And we had a DJ and a dance floor. DJ was topless before you ask me yes, she was topless, right? And downstairs in the wine cellar, we turned it into a dungeon,
like a domination dungeon. So I had a couple of really hot girls in like a cat kind of pleather suit. You know that with the whips or whatever and the whole cross thing. And they were doing each other with the S and M and B and D just soft domination. And of course, guys can participate. And then going up to the
second floor on the right side, we called it a VIP area,
which is behind closed doors. There's a huge area, as big
as your studio, maybe bigger. And I had a stage set up with a girl, girl, girl show every couple of hours. So like nine o'clock, 11 o'clock, one o'clock, three o'clock. So it was a girl, on girl, on
girl show with whipped cream and dildos and strap ons
and you name it, right? And that was basically to give the guys something for their $500. It was $500 to get into the door. Everything's included
the drinks, the food. We had a really nice
buffet set up downstairs. You know, lobster and filet
mignon, whatever they wanted. It was all nicely catered. And the whole idea was
the guys go upstairs, they see the show or they
go downstairs or whatever. Of course they're going to get horny. Guys will be guys, right? It's not that difficult to get that blood traveling down South. So get them upstairs. They see the show. Now we on the other side of upstairs, we had five bedrooms suites, with each one had their own bathrooms, really beautiful, very well decorated. And so we had our goals
for that and they will, Kelly would go and Kelly was my friend that helped me with this. She would go and set up
the guy with the girl, that was her job. See which guy wanted which girl and what kind of girl he wanted. She knew all her clients already. So we did do really good. We had over 320 guests at the time. And after everything, I think I made after everything was paid for, the place, the girls, and I made sure everybody
was paid really well because you want to keep people happy. You don't want anybody
flapping their mouth which they're going to do anyways. So I ended up with about
50, between 50 and 70. I can't really remember exactly, but for one night it was
not bad for a month thing. And Kelly made about 25 or 30. Anyways, I ended up
doing that one more time. Then I stopped it
because girls would come, I don't even know who the hell they were. They wanted to work 'cause other girls told them,
you can't control this stuff. Clients were coming, bring
in 10 people with them which they're not supposed to. It was just getting out of control. And I didn't want it to be, you know, flash news on the five
o'clock news where, you know we got busted for whatever. So I decided to start my agency. And before I went to went ahead and leased places to
make them into brothels, I wanted to test the market. So what I did was I
hired two girls at first that they had places and
figured out the market. The market was good. It was enough to sustain
what I wanted to do to get the amount of
money I needed to make. So we went from that to six girls and I hired the girls
that didn't have places to work out of. So I had to use hotel rooms at first. So I would use like the Hilton across the street from
the John Wayne airport or the Hyatt on Jamboree and four oh five. Really nice places around. Everything was around Irvine
because it's a perfect area. It's not Newport beach because
it's very conservative. So I wanted to make sure
I'm out of Newport beach, but also, I want that access. So anybody can come in and go real quick. A lot of people work in Irvine. A lot of people live in
Newport beach or Laguna beach. So that was a really
nice central location. And there's also a lot
of businesses there. And that was my target market, is that professional that
works or lives in the area and made sure the hours
were convenient for them. So we worked 11:00 AM to
7:00 PM, Monday to Friday. So we have bankers hours just like theirs. This way, they have
the opportunity to come and do their thing and go
back to work or go home. And nobody would know because their wife or their significant other
will think they're at work. So I did everything I could
to help them out that way. Yeah. I facilitated the whole thing. Anyways, so once I did the
proof of concept at the hotels, I decided to start game
places permanent places. So I ended up start hiring
girls with somewhat good credit, so I can get the places in their name and started leasing places
right around that area. All upscale places, usually one bedrooms, that's all we needed because each girl was
assigned to one place per day. So I went from six to eight to 10. I maxed out at 12. So I ended up with 12 places with 12 girls each day, five days a week. I only let the girls
work two or three days. I ended up having to
have about 65 or 70 girls on the roster to be able
to fill all the slots. And what I did was I brought
a interior decorator. I made sure those places were decorated really nice and beautiful. And each place had a different
motif and color theme than the other one. This way, nobody got bored,
especially the clients. So everything I did it was
with the client in mind. What would the client like? I put myself in their position. And I hired beautiful girls, 21 and older, made sure
that they're over age, checked their IDs of course. Some of them, I have to
do a background check because they looked so
young, because you know, I don't believe that you should
work with anybody under 21. That's just my honest opinion. So predominantly they were between 21 and I would say 35 and the
girls are in their thirties. They were really good shape. They're all beautiful. They are nines and tens on a
beauty scale from one to 10, 10 being extremely beautiful because we were charging
500 an hour minimum. So you have to make sure that you can justify that hourly rate. And I made sure that
they've never done it before because I didn't want to have them come in with bad habits. People that want to just
come and steal clients, which some of them of course try to do or the ones that want to hustle a client which I didn't allow. I made sure that those
clients were my clients. So I wanted to make sure
that I keep them very happy because the girls are expendable. You can always change them. Doesn't matter to the guys. Some guys maybe one or
2% begin to fall in love which is another whole different story. But for the most part, they
wanted a beautiful girl with a beautiful body that did a good job. So no drugs, over 21,
either going to school and they had to tell me something positive that they needed the money for, whether they want to pay student loans which was about 75% of
the girls I worked with, or few of them that had
a bad divorce with kids, single moms they needed the money. Some of them wanted to
save for a business. Some of them wanted to buy a home. I had few of them. That was very sad. And I checked, I always
check on everything. Fact check, make sure that, you know, unfortunately being in
that world for so long, you get a little jaded. So you always got to fact check, make sure that somebody is not trying to pull something over to you. I remember this girl she
worked at In and Out Burger and she was going to school and her mom had stage four cancer. And she did not have the
health insurance that covered. So I let her work. Unfortunately, this wasn't for her. So I basically told her that
she really shouldn't do it because she was getting depressed
and everything, you know? So I always made sure that you know, this is not for everybody,
not everybody can do this. You know, there's a separation between Lisa the person and
Crystal the escort, right? We use this different
name because it's like this is like stripping, right? This is not you doing it. It's just a psychological thing. But some girls, they can't
separate and they can't do it. So and I always let them know, "Look, man you shouldn't be doing it." And I didn't let them work. The same girl came a month
later and she tried to work. "What can I do? Let me just work few days
so I can make the bills." I'm like, "No, remember
last time you were, you know you're very depressed here. You did not, it was not for you. You did not feel good about yourself. And if you can't feel good
about yourself for what you do, no money in the world
is going to fix that. So forget about it." So that's what I did. They had to have something
positive, never done it before. So I wanted to train them exactly how I wanted to train them,
to be nice to the customers. I basically did this job as I would run a Fortune 500 company. I wanted the same type of employee. Good work ethic. I know it sounds weird because this field but it could happen, I did it. Good work ethic, loyal,
integrity, honesty, no lying. I hate lying. So I told them, "I will not lie to you. Do not lie to me." And that was the kind
of relationship I had. And I tried to help them as much as I can. I gave them 50% of everything and some of them would say,
"Wow, that's a lot of money.' And my thing would be,
"Okay, well, do you want to keep a hundred percent what
you're making right now? Or do you want to make 50% of this much since you're
making this" right? And also they come in no experience. I have to get the clients. I mean, I work 17 or 18 hours
a day, seven days a week. And the reason why I
did that is I made sure I was the only person behind the scene because I've been told down before, that federal case I
told you about in Vegas, one of my phone girls actually
took one of my laptops after I fired her and went to the feds. So I didn't want that
to happen to me again. So I said, "You know what? There's only one way to
do it, one man show." I can only handle so much, even though I'm really good at what I do but I want you to imagine this. You got 12 places, one girl in each place. And I had to be in between
every single transaction. We averaged between say six at a minimum sometimes up to 10
transactions per location, per girl, right? And I'm in between every
single transaction. So you can only imagine. And imagine when, before I
had accumulated the clients. And once I got to clients, it wasn't as bad because I
already know the clients, I don't have to screen them. The screening is what's the killer. Out of every hundred
calls, I'm at like two. I'm very picky, right? It's gotta be a certain kind of guy. He's gonna be over 35, used to be over 40 but
they kept getting younger because it's more accepted now, to go out with an escort. Over 35, professional, have
their own business or CEO or entrepreneur or VP of a company. And I have to be able
to verify who they are. And I have my ways, of course,
it's all about screening. So imagine screening and
keeping everything going with 12 spots and you only one person. That's why I worked 17, 18 hours a day. I know you can relate to that. 'Cause you got to be the
videographer, photographer, you'll do the web design or you gotta do the advertising guy. You gotta be the
marketing, the promotions. You gotta be the security,
the screening, the CPA right? - [Mark] One man band. - That. Everything. - [Mark] Yeah. - You got to wear, I wear I'm sure you do too 25 hats, right? So that's why I tapped out at 12. Anyways, it was enough money
after everything was paid. I put away 50 a week. So that wasn't bad. Five days a week, but
I worked seven, right? Because Saturdays was for video shoots, photo shoots, interviews. And I did two or three per week. Always two or three. I got my clients really
hooked on new girls. So I had to make sure I
keep that supply coming in, just like a drug. 'Cause to be honest with you, most of them are sex addicts
and they didn't even know it. So Monday to Friday, I would
wake up at five, go to the gym, be in the office by seven. Even when I'm doing
cardio, I'm doing emails and setting up appointments
and everything else. And by 11 o'clock, I have pretty much 70 or 80% of the bookings
for the day for each girl. I would turn them over
once I have the clients see one girl or two girls or three girls, you know, at least two or three times. And I know that they're our type of client which meaning that they are professional, they have the right age. I preferred to them
between 40 and 55 or 60. They're very nice. They treated the other
two, three girls nice. The one that they thought
they were independence. I turned them over to my place was called OC Fun My Business. So I turned them over to the one website where all the girls are on that website, instead of just having a whole
bunch of websites everywhere. This way it made it easier for them. Look, man, this is what's going on. We got together. This is why I sold it. Us girls got together
with put this together. It's a username, password
protected website. It's very secure and safe and discreet. And you're a VIP now, which
made them feel better, right? That they're part of our thing. It's an exclusive club. And so it was just, you know,
all the girls under one roof and it showed the schedule for
each girl when she's working. So the guys can they all
businessmen, all professionals. So they had to make sure
that they can fit it in their schedule. Because I had a lot of doctors
at about five to 600 doctors. I had maybe as many lawyers. I had a lot of entrepreneurs,
CEOs, couple of billionaires, a whole bunch of millionaires and a lot of junior
millionaires in that area. So I was really lucky. I ended up with 8,600 clients. - [Mark] 8,600? - Yes. 12 places, 8,600 clients. - [Mark] This is just in Orange County? - This is Orange County, Yeah. - [Mark] Wow. And what
percentage were married? - Of the clients? - [Mark] Yeah. - 99%. Maybe 99.3%. I don't know, that it's overnight. So when I hired the girl,
I made a deal with her. So I'll give you an example. I had a girl that went to UCLA and she wanted to become a dentist. She owed 150,000 in student loans and she really wanted to pay it off. This girl was gorgeous. She was a Victoria secret model. She was half Scandinavian, half Korean. just gorgeous. Tall, beautiful body, amazing. And I couldn't believe she was doing this. She was so gorgeous. And I said, okay, so let's call her Sarah. We're going to do this for
a year, maybe six months. 'Cause she can only work two days a week. At the time I let them work
more than two days a week but she could only work two days a week. I said, maximum a year, maybe six months get you in and get you out. And that's what I did with all the girls. You know, when we first hired them, okay what do you need the money for? And make sure it's something positive. I'm not going to hire
somebody that's on crack. I'm not not second guessing anybody. I'm just not gonna support bad habits. I had a really bad
experience in Las Vegas. So I learned from my
lesson to pay attention. And this is why I don't really
like drugs in this business. So each girl came in, we figured out what you need the money, for how long it will take
just from experience. I got her in and got her out. Why? Because I noticed after
years of this business, that if a girl does it over a year, it's the point of no return of coming back to ever be able to be
'normal' or do something else. It really, it's this
irreversible damage that happens to that person at that point. Plus the addiction to that kind of money. It's crazy. I mean, I'm addicted to
that kind of money myself, to be honest. So I didn't want them
to fall in that trap. So I always had good
intentions towards them and I want to make sure that
I give them the best advice that I can as a friend and a coworker because I don't want the bad karma. So let's see, what else
we're going to talk about? So basically I ended up with
8,600 clients, 12 places, everything was going great. So mostly that that's
what I was dealing with. I kept it really honest. The clients, they're all happy. They couldn't believe they
had such a safe environment for them to come to
something really clean. All the places were
decorated really nicely. Showers, everything, towels, everything was just beautiful. They had music in there, candles, incense. Everything was just perfect. - [Mark] The girls were happy? The clients were happy? - Girls were happy. Clients were happy. Noise complaints. I did that for four and a half years. Finally, around May of 2000, remember I started in 2012. So around may of 2016, I started noticing weird stuff
going on in the complexes and the hallways and stuff. So I kept everybody on, I put out a 'BOLO', Be
On The Lookout', right? Because what happened was, I would come in at the end of the night and check on the places. I had all electronic locks. So once the girl left, I locked the door electronically,
you know, remotely. And they all kept the money wherever we told them to keep it. Now I used to go and check on the place and make sure everything's clean. They cleaned it up. They had a little procedure to do after they were done with the shift and I would pick up the money and go. So that May, I started noticing
some weird stuff going on. You know, I'm always paranoid, of course. When you're doing something illegal, always looking around,
seeing what's going on, something out of characters,
something out of place. And so we kept an eye out
finally around June 9th, 2016, I saw, well, a couple of
girls told me they saw when they were coming into work, they saw a couple of guys on
different part of the complex. Now these complexes have
a thousand apartments in five buildings to
this particular complex. So I have one apartment here and on this building one apartment there, one want apartment there. And it's funny because they
all saw the same two guys at one point or another in the hallways. So I said, "Okay, I know what's going on." 'Cause they were trying
really hard to bust me. From like a year and a half on. From 2014 on, they've been trying. And I have such a good screening system, they could not penetrate because what they try to do
is they try to bust one girl and that's how they get in. And then that girl spilled
the beans and then that's it. You're done. That's why I made sure
that my screening system was in tip top shape. So I decided after four and a half years, I decided that it was enough. Now it's getting to be too
close for comfort security wise. Remember this is still
illegal, unfortunately. It should be legal especially
at least the way we did it and decided to shut it down. But however, I got bored. And then in December,
I decided to come back because all these clients. I had over 900 emails after like two days. 'Cause I didn't tell anybody
that we shutting down. The clients' like, "Where are you at?" "What's going on?" I was all over the boards. Like there's a yelp for
this business called The Erotic Review, right? Where they review, they
call them 'hobbyist', the clients that review the
girls, when they go see us. So this way, if you want
to see, you know, Jackie, you just go and look it up. See what other guys say about her, You know, she good, is she worth it? You know, to give her one to 10. All the stuff, details. Juicy details they call it. So we were all over the boards. "What happened to OC Fun?" "Oh my God." And I looked at my main email address. It was like over 900 emails
just in like two days, right? I'm like, "Oh man." And they kept emailing. And they kept, so I had to got rid of all the form of phones and everything. Of course, for security purposes. Finally in December,
I decided to come back which was the 'worst'
mistake I've ever made in my life and I was
already being followed. And they had GPS on all my cars. They already found the GPS on
and I had three cars in there. All of my cars, my girlfriend
is a dentist at the time. She didn't know anything. She didn't know my real name. She didn't know. I didn't tell her anything. I was struggling with it. 'Cause we were together three years. I'm having this regular life here. Meanwhile, I'm doing all this stuff. She's thinking I'm doing
this business here. And I got this office here and this, and meanwhile I'm doing this and there's no way I was
going to tell her, right? 'Cause I've been told on before. I wasn't trying to lie to her, but I just couldn't tell her. I didn't tell her my real name. I had a different ID, different name. And I found GPS, took her
car to my buddy's garage and found GPS on. And she had two cars, find
the GPS on her cars too. I'm like, "Oh man, this is bad." So now I was faced with a decision, right? Just like that movie,
"Heat", within 30 seconds what Bobby De Niro said,
"In 30 seconds and less man, if you feel the heat around
the corner, you got to go." So I'm like, "Okay, should
I just take the money and run or what should I do?" I'm like, "Man, I'm with my girlfriend, she got an eight-year-old, I'm having this family
life here, you know? I'm getting older. That's why these things don't mix. If you're going to do something here, I'm not condoning it. I'm just saying, if you're
going to do something, you cannot have both. You can have your cake and eat it too. You cannot be a family
guy here and over here, you're doing your POV videos and you're selling pussy all day right? Seriously my friend. So I decided not to say anything, but I started again just
with my OC Fun website, just with the clients I had. I picked like not even a thousand clients under like 800 clients. I said, okay, those are the ones that spent at least 500 to 1500 every time they came, you know. Our $500 an hour was our minimum. But a lot of them just came, you know, gave 1,000, 15 hundred, whatever. So I've kept the top tier VIP clients. And I only had about 18 girls working, now I went down to like five places or six places I forgot, and kept at a small. And I said, you know what? I started seeing things. I start seeing in front of the competency. It's not worth it. I said, as of January 31st, I said if this doesn't, if I
don't feel comfortable about it we're going to shut it down, right? And I told some clients and some girls. Well guess what happened January 31st? Here I am walking out to
my girlfriend's house. She lived in Ladera ranch. And by the way, you can Google my name. This is all over the news, right? January 31st 2017. I just got back from the
gym, looking down the street. I saw this SUV, is black SUV. I can tell it doesn't belong there because she lives in a really nice area. I knew who's what, I said, "Oh man." And it's all tinted windows. And I could tell from the front I looked I could see people just sitting in there. I'm like, "Oh no, this is not good." So I walked in the
house, now what do I do? Long story short. I walk out about 15 minutes
later, changed clothes. Not that it was going to matter and got rid of as much evidence as I can. I didn't have that much in her house. And sure enough, here comes
22 to 23 cops from everywhere. "Get down!" This guy over here on the left, I never forget this guy and it's in my book too. That's how I opened the book. He said, "Freeze!" And he had a machine gun, Mark. And he was so, his adrenaline because they got adrenaline, right? They get so excited. He was shaking like this. I thought he was gonna shoot me. I'm like, 'Whoa, Whoa, take it easy, man." Here I am. I'm getting arrested. I'm supposed to be nervous. But unfortunately I'm used to those situations before, right? I've been through SWAT
teams and all that stuff. I said, "Man, take it easy. You're shaking so hard right now. It's going to be okay." Here I am, I'm telling
him it's going to be okay. "Do not pull that trigger, man.' 'Cause you know, he had an
AR 15 or something, right? 'Cause you know, obviously look what we got going on now, right? - [Mark] You're not
running, you're not hiding. - No. The other guy, "Hey, get down." I'm like, it was like kind of raining a little bit, you know? So the ground was wet and I got my car in front of the house. My thing was, I'm going to get in the car, go to one of my storage units where I had a little stash of money and go down South and just chill out, you know, and go to Rosarito beach or something and just chill out, you know. I had an SL 63, so I'm like, "Okay, I know I can
beat him to the border." You know, it's pretty,
it's 12 cylinder, right? And of course I didn't make it to the car even though it was like 10
feet away from the front door. But, so I said, okay, I'll you know, so I did the kiss the ground. And you know, the guys tried to put the, I'll tell you this is what the story. The guy trying to, I was 265, right? Really big, you know. I've always been big size. And the guy was trying to put my arms behind my back and trying to
handcuff me with one handcuff. But it wouldn't go because I was so big. He was like, it stops
right here, you know? I'm like, "Man, what are you trying to do? Like get my shoulders out
of my socket or something? Just put another one on that." I'm trying to tell the
guy how to do his job, "Just put another one on there, man." So yeah. So another guy, he ended up
being the Detective Hall. He was the main guy from the
human trafficking task force. What happened was I got kinda stuck with the human trafficking task force and they kept seeing my ads and they kept seeing how mine is different than anybody else. You know, you got the upscale backgrounds with these gorgeous girls and lingerie. Of course, I fogged out their faces. And of course you used fake pictures and you know prepaid phones and whatever, you know, all the safety thing. But they had me on their
surveillance for so long. And to be honest with you I can't even tell you all the details because I never even
looked at my discovery. I ended up taking a
deal after four months. They were talking about 78 years. They kept, every time he saw an ad that remotely looked
like mine and mind you, a lot of our pictures were stolen which I let people do that. At first I used to get pissed off. I'm like, Oh no, it's okay. We had our pictures in Florida. We have our pictures in Texas
and God knows where, right? And I let them use our pictures. Why? Because it confuses the thing, right? So because a lot of
them use fake pictures. So I ended up from, I had a
$3 million bail with a 1275. 1275 attachment meaning you have to show that every single penny
going towards that bail is coming from legal source. So they're going to
scrutinize every single penny. Basically, they didn't want me out. 'Cause I saw guys in there, I ended up in a Theo Lacey
in Orange County jail. I had guys in there
that were in for murder and they had a five or 600,000 all bail. Meanwhile, I'm like running an
escort service is $3 million. They didn't want me out. So after four months, Judge
Makino gave me an offer, a one time offer because the DA was not giving me any offers. The DA, all he wanted was my list. He wanted my list and he wanted
to start charging people. 'Cause he charged my own, I had a lawyer. My first lawyer was
called Walter Mitchell, who was also a client. And the DA kept telling him in court, "Listen your honor, this
guy is a client also. We can't give you the discovery." That's why I haven't seen my discovery. I went and did my time, came out. I still haven't seen my discovery, which is totally illegal, right? But, long story short, as
soon as Walter recused himself because of the pressure from the DA, just to give you an idea
what kind of DA it was, Walter got indicted and he
lost his license, right? All he had to do was stay on the case and he kept me in a really, he
left me in a really bad spot. I had already paid him
and I'm two weeks away from a speedy trial. Anyways, long story short. He wanted that list. "I want the list. I want the list." I'm getting sentenced to
10 years that I was just, you know, they found 406. They said 469,000 in that storage unit. I had just a week earlier
counted over 800,000. But it's okay. Keep it, right? Keep it. No problem. Whatever. Just get me the hell out of here. Orange County is horrible. 10 years, keep all the money. They kept a lot of properties, altogether about $10 million worth, right? Okay. Keep it. All the DA wanted, I'm
getting sentenced to 10 years, I just gave them everything. You know my underwear, everything. Go ahead, take it. The DA gets up before
I get sentenced, right? Two minutes before I get sentenced, He goes, "Oh, but Mr. Chaiban is supposed to give us the list." Why am I going to give you the list? I just gave you everything
that I have, I own, I'm taking 10 in prison for
something that should be legal. And you want me to give you the list too of people that trusted me? You know what I mean? I had, I mean, I had guys, I had two guys from his own DA's office. There were clients. You know what I mean? I like, "Man, let me just
go do my time, get out. Because these people trust me. I can't do that to these people because they're professionals,
they can lose their job. They'll lose their wife. They're going to get a
divorce that, God knows." You know? So I did my time and you know, once you trusts me I'm not
going to break that trust. So and here I am. [Mark] How many years did
you do? The second time? - I did thirty eight months on 10 years. So you got to have time because... - [Mark] So in Vegas
you did how many years? - Oh, 31 months when I
fought that federal case. - [Mark] 31? And then you did 38 - 38 - [Mark] for the orange County. - I got about almost 10
years in fighting cases and BS nine months here, six months here. There's no such thing
as easy money, right? - [Mark] That's an incredible story. So I mean, looking back, do
you regret having done this? It ended badly. - I'm going to tell you
right now, if this was legal, if I can get a license right now, this is what I'll be doing. Because this is what I know how to do. - This is what you do. This is what I do. You know, this is like, - [Mark] You clearly know
how to make it successful. - This is how you know, I know the system, Yeah, everybody's happy. They talked to some girls I guess, from my co-defendant she told me, by the way they grabbed her
to, you know, insult to injury. They grabbed her. She didn't even know my real name. She had to put up a $500,000 bail. It was a million, went down to 500,000. She stayed in jail for 10, this is a 50 some year old lady that's a dentist, had her
own practice in Ladera ranch. She was a dentist for
27 years at the time. Her face, her mugshot is right, if you go to Google my name, her mugshot is right next to mine. All over the place, right? Now she lost, automatic, she lost over 30%
percent of her clientele. And it took her a year and a
half to get the thing dismissed because they could not
believe that it was only me doing all this whole thing. They could not believe it. They can not, how, there's no way. There's no way one
person can do everything. So that's why they grabbed her. And they knew she had
nothing to do with it but they just could not
believe that this one person can do all this, you know? 'Cause we will bring it in over
five or six million a year. - [Mark] Five or six million a year? - Yeah. Gross. - [Mark] Was it stressful? - Of course, man, - [Mark] Must've been, right? - You know, even if it was
legal would be just stressful because you got girls,
you gotta deal with them. Sometimes they got issues. You gotta babysit. Basically your a modified
babysitter sometimes. You got guys sometimes with issues, you got, you know, just
that's life, you know? - [Mark] Whats the craziest
story you can share? You must have seen a lot of crazy stuff. - Oh my God, especially in Vegas. And this is why, I can tell
you a couple of stories but the reason why I don't
allow drugs in this business is because I hired this twin. They were the only twins
online, real twins. They were young or 21 cute
like 85 pounds or whatever. Anyways, I did not know that
they were hooked on Oxy. Now, I sold them as Sin City twins. So if you want to see them,
you have to see them together. Now of course, the guys
have already thought that these girls are sisters, that they're going to do things
together with the client. Come on. You know, there's a lot of
perversion out there, right? But let them think,
whatever it's all implied. Let them think whatever they think. It was a thousand dollars
per girl, per hour. And they had to book two hours. So if you want to see them,
it's 4,000 minimum, right? So these girls were making
over 10 grand a week, just going on four or
five dates, you know? I did not know that they
had a Oxycodone problem because at the time Oxy
was like 80 bucks a pill. They licked those pills,
whatever, crushed them, whatever they did. Now, the more money they
make, guess what happens? The more drugs they made. Fast forward, about
six months I'm reading, remember I told you
about The Erotic Review, that the Yelp of this
business, I'm reading a review cause I kept track of everything and this real good
client, he wrote a review. I'm like, he never told me anything. But he said, he's on a date with them, one girl is going down on him. She fell asleep. And the other girl was raiding
his wet bar and his snacks and stuff out of the suite, right? I'm like, "Oh no, this is not good." So I let them go. Well, six months later after I
fired them, six months later, I realized they have a really
big problem with Oxycodone. One of them was found at Orleans. She OD unfortunately, passed away. Yeah. What makes it crazy is a year
later, her sister comes to me. The one that survived sister and she wants a job at 80 pounds. Looked all fucked up on crystal meth and God knows what else she's on. Totally fucked up. I'm like, "Are you freaking crazy? You just buried your sister. Now you think I'm going to give you a job. Look at you, 80 pounds like skeleton." It's crazy, man. But I'll tell you this, I had clients, a lot of clients that were
like straight sex addicts. I had clients that come in every
day, sometimes twice a day. I had this one client
who was a surgeon, right? He was coming in with his scrubs. Come in, jump in five seconds. He worked for UCLA. He was one of the main
surgeon there at the hospital. Not even, sometimes he had
blood on like, the girls like "Oh my God, this guy is," I'm like, "It's okay.
Just forget about it. Let him make sure he take a shower first." But I had one other client
that was a doctor, right? For some reason, doctors are really pervy. This doctor would come in once a month and he wanted me to line them up. He said, okay, who's next? He would go from here to here to, remember each girl was in her own place. Like this, Okay. Go see a Cindy, go see a Nikki, go see, you know, Jen, go see six, seven girls in one day. I'm sure he was on Viagra but Viagra doesn't do
anything but keeps you hard. But it doesn't change
how fast you cum, right? And this guy once a month man, boom, boom. - [Mark] Different locations? - Yeah. And the same day. - [Mark] He'd drive around? - Yeah. He'll just go from one to the other to the other,
I'm like, man, this guy. And he was like, he was like 60 years old. But yeah, we had a lot
of, we had some guys I didn't do a lot of fetishes
because I don't like fetishes. It gets weird, you know what I mean? It gets really weird with them. So we don't really do fetish,
but some guys, you know like if it's something
light, like this guy liked the girl to dress
up like a school girl or a certain outfit, hey, you know, step on me or something, some light stuff, I let them do it. But other than that, you know the ones that want you to squat on a glass table and do
your number while they, no we're not going to do that. It's too much. - [Mark] That's a crazy story. Freddy, thank you so much for sharing it. - Of course. - [Mark] Good luck with your book and wherever that takes you. - Oh thank you. Madam Suzanne, it's on Amazon everywhere, but yeah, hopefully we'll turn
it into a series or a movie. - [Mark] It's a fascinating
story that goes on. - It goes and we could talk for 20 days and we could still have more. - [Mark] Is stuff like this
going on as we speak today? You know you're no longer in the business but are there other
people that are doing it? - The thing about this is
they cannot stop this, right? It's human nature. Men are wired a certain way
that they like to procreate. So they could be married, and I had a lot of clients tell me this because they got really close personally. Some of them would like to come talk to me and they'll tell you all
their problems or whatever. And they all love their
wives unconditionally and they don't want to lose their wife. But it's just that I really believe this, after years in this business, we're wired a certain way where you know there's love and there's
sex and they can go out and have sex with an escort
and go right to their and it doesn't mean they
don't love their wife, it's just that men are
wired a little differently. And some women are like that too. I had a lot of girls
that were like that too like were straighten nymphos and they would do it for free but they were getting paid so they didn't care. They loved it. They would do 20 guys a day, no problem. You know, but I'm sure it's going on. I mean, of course it's going on. Even with COVID-19, you know, I did a little research for the book, it's still going on but I can tell you one thing, it's never going to be the way I did it. Because you know unfortunately
in this business, lying, cheating, being switch, you know, conniving is part of it, I just didn't want to do it that way. It wasn't, who I am. So I refused to do with it. I refused to rip the clients off. I refused to rip girls off. Now don't get me wrong, I, you know, I will help
her get as much money as she can from a sugar daddy, which is a whole different
thing and it's in the book. - [Mark] So the book, - But yeah. - [Mark] Alright Freddy, thank you so much for sharing your story. - Of course Mark, anytime. - [Mark] Very interesting. - Anytime. - [Mark] Thank you, for sure.
