The New York Post reports that court records show that at the Feb. 23 arraignment of accused madam Anna Gristina, prosecutors said that she was arrested following a meeting with a Morgan Stanley banker, whom she'd been trying to convince to help her expand into some sort of online brothel.
"We picked her up yesterday with a Morgan Stanley banker who she counts a close friend and she had been present at his office for a meeting in which she was trying to solicit money to fund what we believe is another business venture on the Internet that involves matching up male clients with female prostitutes," court records show, according to the Post.
The prosecutors did not name him and did not allege any wrong doing on his part.
In the interview with DNAinfo, the broker describes Gristina as a social acquaintance with whom he had no business dealings. That directly contradicts the statements of prosecutors.
"I'm surprised at having to answer these questions," the broker said at the door of his Midtown apartment. "She was the mom next door."
Morgan Stanley has said that it is conducting an internal investigation and cooperating with police and prosecutors.
The broker's statement that Gristina is tied to "plenty of other people at Morgan Stanley" is a new twist in the story.
Follow John on Twitter. (Market and financial news, adventures in New York City, plus whatever is on his mind.) You can email him at firstname.lastname@example.org.
You can also be our friend on Facebook. Or subscribe to John's Facebook page. Questions? Comments? Tips? Email us atNetNet@cnbc.comor send a text message to: 917-740-8477.
Call us at 201-735-4638.