Federal authorities investigating Michael Louis Parrish, the Northern Virginia massage parlor owner, have been told that he intended to expand his $1 million-a-year operation into a Washington area pleasure empire serving diplomats, lobbyists and high-stakes gamblers.
Parrish, who owned 11 sexual massage outlets, was to add a Victorian-style gambling casino in Alexandria, another casino in Northwest Washington, bingo games in Alexandria, and a sex-oriented travel service. FBI agents and federal prosecutors have been told by two former parrish employes.
Two men, Clyde Ballard (Skip) Stovall, and Gary marion Van Ryzin, ave each pleaded guilty to one count of interstate racketeering in connection with their employment by Parrish. Stovall sentenced last week to four months in prison, and Van Ryzin is scheduled to be sentenced next week. Stovall and Van Ryzin spoke with a reporter in separate interviews recently.
Parrish managed to bank $206,000 in cash for himself from his massage parlor and outcall massage service, which grossed as much as $30,000 each week, the two witnesses have told federal investigators. Included in the funds was $50,000 in a secret "getaway account" to be used if Parrish ever got in trouble with the law, they said.
The federal investigators also have discovered that Judy Chavez, the woman who said she was paid as much as $40,000 in CIA funds for her companionship by Soviet defector Arkady Schevchenko, was an employe of Foxy Lady, a parrish outcall massage service.
Parrish attempted to gather more money for his empire as the secret sponsor of bingo games in Alexandria, federal authorities were told. Parrish believed he could make more money at bingo than through the massage business, Stovall said.
Parrish rented two $400-a-month apartments at the Oakwood Apartments in Alexandria for "outcall massage" visits, placed $8,000 in an escrow account to obtain electronic bingo equipment, and launched a male homosexual outcall service called Lambda in the District of Columbia, according to Stovall and Van Ryzin.
Parrish also intended to launch a travel service that would provide package tours including $1,000-a-right rooms in a refurbished Alexandria massage parior called Buddy's, demale escorts, and limousine, boat, and airplane rentals for wealthy clients, the two men said.
Sources familiar with the probe said that the information Stovall and Van Ryzin gave to a reporter is either identical to that given to federal investigators and a federal grand jury, or is consistent with other information investigators have obtained.
The interviews provide the first public look at specifics of the testimony investigators have received since they began their inquiry in mid-1977. Stovall has been characterized by federal officials as the fourth-ranked member of Parrish's operation, and Van Ryzin as a key management figure.
An FBI affidavit filed in May described the Parrish operation as the "largest, most sophisticated commercialized prostitution operation" in the Washington area, grossing more than $1 million annually.
Neither Parrish now his attorney, Jacob Stein, could be reached for comment yesterday.
The massage parlors and outcall massage services, were Parrish's base of operations, Stovall said. The enterprises were successful enough for Parrish to spend $1,000 amonth for ads in The Washington Star, $800 a month for ads in the Yellow Pages, and thousands of dollars each month for the 21 telephone lines on which customers could make appointments for traveling masseuses, according to Stovall.
The clientele included men who paid as little as $55 an hour for a "mutual nude massage," and those who paid hundreds of dollars for time with one or more women, Stovall said. Serveral Arab businessmen, visiting Washington in connection with their country's oil interests, paid $1,000 each for evenings with women, he said.
Other clients Stovall said he personally observed included a leading politician and a professional football player. Van Ryzin said he once saw a Master Charge card form signed by a famous musician.
Parrish's expansion plans were diagrammed on a large piece of heavy white cardboard that rested on an easel in Parrish's home at 1700 Mason Hill Dr., south of Alexandria, according to Van Ryzin, who said he drew it up. FBI agents seized the organizational chart when they raided Parrish's home earlier thie year, sources confirmed.
Van Ryzin said Parrish told his senior management employes no to worry about harassment form officials, asserting that he would take care of such matters. In addition to alleged interstate racketeering and prostitution violations, federal officials are known to be interested in the possibility of official corruption in connection with the Parrish operation.
Van Ryzin said he was delegated by Parrish last year to find small black churches in Alexandria in whose name bingo games could be held. At the same time Parrish tried to obtain several large pieces of bingo equipment by placing $8,000 in an escrow account, Van Ryzin and Stovall said.
A District of Columbia attorney provided Parrish with a handweitten list of 25 undercover District police officers which was photocopied and posted at all outcall massage parlors, Stovall and Van Ryzin said. The list was for the protection of masseuses, who were instructed not to go out on calls initiated by men using those names, they said.
Judy Chavez, an employe of the Foxy Lady outcall service in the District, was puzzled by the large amounts of money she was receiving from Schevchenko and twice asked other women to pick the money up for her, Stovall and Van Ryzin said.
Both men also said Parrish was a recluse who alwasys slept with an Ithaca Featherweight 12-gauge shotgun in his bed. Van Ryzin said the gun was loaded with a combination of buckshot and shotgun pellets.
A stolen 9-millimeter handgun, which once was fired at robbers at an Alexandria massage parior, was later melted down and thrown into the Potomac, they said.