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Coffee madam laundered $2 million through Washington state bikini baristas: police

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The accused ringleader of a Washington state prostitution scheme made millions by peddling more than just coffee at a bikini barista stands, police say.

It’s believed Carmela Panico, 52, laundered more than $2 million and promoted prostitution at her coffee stands such as Java Juggs Espresso in Everett that was equipped with a stripper pole, according to a KOMO-TV report.

It’s no secret customers at the drive-thru stands were getting more than just cappuccinos at her other stands called Twin Peaks, Bella Butterscotch and the Hot Spot.

Panico’s drive-thru coffee stands are even mentioned in “Naked Coffee,” a Yelp list of bikini barista stands in the Seattle area.

The stands have been the target of Everett Police Department for years to build a case against Panico. Surveillance footage captured in 2011 show baristas pole dancing and Panico letting customers stuff cash into her breasts at Java Juggs.

Surveillance footage by Everett Police shows Carmela Panico letting a customer stuff cash in her breasts at Java Juggs during a 2011 investigation.
Surveillance footage by Everett Police shows Carmela Panico letting a customer stuff cash in her breasts at Java Juggs during a 2011 investigation.

Court documents now reveal Panico — a former stripper — ran her coffee stands like a brothel. She hired employees with stripper or escort experienced and fined the women if they didn’t wear high heels, maintain a tan or wear makeup, according to the Everett Herald newspaper.

Panico used to work with Talents West, an entertainment business that had ties to the Colacurcio crime family who owned strip clubs in Seattle. They werethe target of racketeering raids in 2008.

Records show Panico instituted a sales goal for each shift, but it was “effectively rent that the girls paid to have the opportunity to perform lewd conduct and acts of prostitution.”

Some of the baristas made at least $15,000 to $30,000 a month at the six coffee stands.

Panico claims to no longer have anything to do with the coffee stands that are being leased or run by others, but it’s believed the manager of the six stands pays rent to Panico, the TV station wrote.

The Everett Police investigation has already resulted in the arrest of a Snohomish County Sheriff’s Office Sgt. Darrell O’Neill for allegedly tipping off the girls to any cops staking out the stands that day.

The Herald reports O’Neill received sexual favors in exchange for any tips. He pleaded not guilty to his charges of conspiracy to promoting prostitution and will be tried in November.

The case also involved some undercover work where a barista was caught pole dancing and stripping for a detective and was later fired, according to another KOMO-TV report.

NHENSLEY@NYDAILYNEWS.COM