MORE CHARGES FOR HOLLYWOOD MADAM . . . AND HER DAD

Already facing a trial Aug. 22 on pandering and drug counts, reputed "Madam to the Stars" Heidi Fleiss was arraigned today on money laundering and tax fraud charges. The rap: the 28-year-old high school dropout used her alleged ill-gotten gains to pay for her mansion, but covered up that fact by having her 60-year-old pediatrician father claim he had made the real-estate purchase. Dad got arraigned, too. Today's events sent a new scare through Hollywood, suggesting that Fleiss will start naming the rumored movie stars and other big shots she claims were her clients. TIME Los Angeles reporter Martha Smilgis is betting that the media-savvy madam is bluffing: "The only thing that makes her popular is that there might be somebody behind (the prostitution ring). And if they're just over-the-hill Hollywood producers, who cares?"

Quotes of the Day »

RAY KELLY, New York City Police Commissioner, on the arrest of a New Jersey man in one of the nation's most baffling missing-children cases, the disappearance more than three decades ago of 6-year-old Etan Patz.
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