Beltway Madam Deborah Jean PalfreyThe Beltway Madam pleaded not guilty to federal racketeering and money laundering charges in federal court today.

Prosecutors say Deborah Jean Palfrey, 50, ran a call-girl service in the Washington, D.C. area for 13 years, taking appointments from her California home and dispatching women to luxury hotels in Washington and Baltimore. They say the service promoted prostitution.

Palfrey is not falling on her sword for anybody. She’s letting her clients know that she will sell her ‘little black book’ of 10,000 clients to pay for her defense.

Her attorney, Montgomery Sibley, said it seeks only to suppress the names of the 132 escorts who worked for her - not the clients.

Sibley said the list includes some well-known politicians.

“It’s a statistical certainty that there are a fair amount of high-profile people who use the service, all across the government and private sector, here in the metropolitan D.C. area,” said Sibley.

Not only is Palfrey threatening to expose, embarrass and possibly subpoena clients, but she’s taking a combative tone with prosecutors. On her Web site, she admits e-mailing them and promising to make the legal situation “long and unpleasant.”

Palfrey claims her business, which she calls an adult fantasy firm, is completely legitimate and provided services that are legal - like erotic dancing - across the spectrum of adult sexual behavior.

I guess the taxpayers aren’t the only ones getting screwed by the politicians. What cha wanna bet she’s getting very generous help with her legal defense fund ……