LOS ANGELES : Fleiss Prosecutors Hint of Witness to Back Tax Charges

Federal prosecutors publicly hinted Wednesday that they may have evidence to support allegations that Heidi Fleiss and her father failed to report income she earned from a high-priced call girl ring.

Prosecutors told U.S. District Judge Consuelo Marshall that a woman who worked at Dr. Paul Fleiss’ office gave them a sworn statement concerning a “bogus” employment arrangement between the father and daughter.

Assistant U.S. Atty. Alejandro Mayorkas declined to discuss the witness’ statement.

The implication is that the testimony would support the tax evasion charge against the convicted Hollywood madam. Prosecutors allege that Fleiss, 29, failed to report substantial income on her 1992 federal tax return and lied about where she got it.

Fleiss reported that she earned $33,000, including $21,000 in wages as her father’s employee and $12,000 as a counselor, according to the indictment against the father and daughter.

Prosecutors also allege that Heidi Fleiss turned over checks made out to cash for prostitution services to her father and sister, both of whom endorsed and deposited the checks in bank accounts.

The indictment alleges that Paul Fleiss hid the money in the purchase of a $1.6-million Beverly Hills-area villa. Prosecutors contend that the house was bought with proceeds from the call girl ring.