Java Juggs owner pleads guilty in prostitution case

EVERETT — A Snohomish woman admitted Tuesday that she operated drive-through brothels out of her bikini espresso stands and laundered the hefty profits to conceal her crimes.

Carmela Panico was in Snohomish County Superior Court to answer to allegations that her coffee huts, Java Juggs and Twin Peaks, were prostitution operations that made her millions. In an agreement reached before the hearing, Panico pleaded guilty to second-degree promoting prostitution and money laundering, both felonies.

In exchange, the former exotic dancer will surrender her claims to the nearly $250,000 Everett police seized from her home in 2013. Panico also agreed to walk away from her coffee businesses, turning her five Snohomish County stands over to the city of Everett. She also promised not to operate any new coffee huts in the county.

Panico, 52, also must provide “testimony against others who were involved in her criminal activities.” That could mean she will testify against Darrell O’Neill, a former Snohomish County sheriff’s sergeant accused of helping Panico avoid detection by police. O’Neill allegedly was given sex in exchange for his help. Panico admitted on Tuesday that she personally provided sexual favors to the former sergeant.

O’Neill’s trial is scheduled to begin in November.

Snohomish County deputy prosecutor Bob Hendrix plans to recommend that Panico be sentenced to two days in jail and be given credit for two days already served. She is scheduled to be sentenced in March and faces up to a year in jail.

After Tuesday’s hearing, surrounded by television cameras, Panico shook hands with Everett police investigators. She declined to speak with reporters.

Detectives say that before Panico went into the coffee business, she was connected to Talents West, a company owned by Frank Colacurcio and his son. The Colacurcios ran multiple strip clubs, including Honey’s in Lynnwood. The Colacurcios were forced to shut down their nightclubs as part of federal organized-crime prosecution.

Court papers say FBI agents agreed to help with the investigation into Panico’s stands because of her past.

Panico, a college graduate, opened Java Juggs in 2008 and operated as many as eight stands, mainly along Highway 99. She preferred to hire women with previous “dancer” or “escort” experience. Her stand in Edmonds included a “stripper pole.”

Baristas were expected to make a certain amount of money during their shifts. They kept what was left over. The women engaged in sex shows and prostitution to earn bigger tips. Baristas told investigators that Panico knew about the illegal activity and at times encouraged it.

She discouraged her employees from calling police to report customers who engaged in lewd behavior. She said the “customers paid more to be allowed to do this and that it was allowed at her stands,” Hendrix wrote in court documents.

Some of the baristas reported earning hundreds of thousands of dollars. One baristas told detectives she made $500,000 working for Panico.

Investigators dug deep into Panico’s finances. They learned that she had deposited more than $2 million in her bank accounts over a period of about three years. She purchased multiple espresso stands, often with cash. Detectives alleged that Panico used proceeds from criminal activity to finance a “lavish lifestyle” that included expensive hobbies, including horses and boats. She also paid for several plastic surgeries, court papers said.

Investigators say the profit margin at the Java Juggs stands at times was twice that of well-run, established coffee huts.

Panico was arrested in the past for lewd conduct at her Edmonds stand. Her businesses came under scrutiny again when Kent police launched an investigation into sexually explicit shows at her Twin Peaks stand there.

It was during that investigation that police were told about a “dirty cop.” Everett police began investigating O’Neill’s alleged involvement and the nature of Panico’s businesses.

Both were arrested last year after raids at the stands. Since then, Panico has sold off a couple of coffee huts and leased others. She sold her Snohomish home in February.

The city of Everett is expected to give Panico a month’s notice when they plan to take possession of the stands. Panico agreed to “terminate all leases or other entanglements” and prepare the huts to be seized.

The city hasn’t finalized what will happen to the stands.

“We are currently exploring our available options, and will likely sell the stands, but not for operation at their current location,” city spokeswoman Meghan Pembroke said. “Under no circumstances will the city go into the coffee business at these locations, either as operators or landlords.”

Everett leaders also are developing new legislation to address some of the associated crimes that have turned up at bikini coffee stands such as Panico’s, she said.

Diana Hefley: 425-339-3463, hefley@heraldnet.com. Twitter: @dianahefley.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

A firefighter stands in silence before a panel bearing the names of L. John Regelbrugge and Kris Regelbrugge during the ten-year remembrance of the Oso landslide on Friday, March 22, 2024, at the Oso Landslide Memorial in Oso, Washington. (Ryan Berry / The Herald)
‘Flood of emotions’ as Oso Landslide Memorial opens on 10th anniversary

Friends, family and first responders held a moment of silence at 10:37 a.m. at the new 2-acre memorial off Highway 530.

Julie Petersen poses for a photo with images of her sister Christina Jefferds and Jefferds’ grand daughter Sanoah Violet Huestis next to a memorial for Sanoah at her home on March 20, 2024 in Arlington, Washington. Peterson wears her sister’s favorite color and one of her bangles. (Annie Barker / The Herald)
‘It just all came down’: An oral history of the Oso mudslide

Ten years later, The Daily Herald spoke with dozens of people — first responders, family, survivors — touched by the deadliest slide in U.S. history.

Victims of the Oso mudslide on March 22, 2014. (Courtesy photos)
Remembering the 43 lives lost in the Oso mudslide

The slide wiped out a neighborhood along Highway 530 in 2014. “Even though you feel like you’re alone in your grief, you’re really not.”

Director Lucia Schmit, right, and Deputy Director Dara Salmon inside the Snohomish County Department of Emergency Management on Friday, March 8, 2024, in Everett, Washington. (Ryan Berry / The Herald)
How Oso slide changed local emergency response ‘on virtually every level’

“In a decade, we have just really, really advanced,” through hard-earned lessons applied to the pandemic, floods and opioids.

Ron and Gail Thompson at their home on Monday, March 4, 2024 in Oso, Washington. (Olivia Vanni / The Herald)
In shadow of scarred Oso hillside, mudslide’s wounds still feel fresh

Locals reflected on living with grief and finding meaning in the wake of a catastrophe “nothing like you can ever imagine” in 2014.

Everett mall renderings from Brixton Capital. (Photo provided by the City of Everett)
Topgolf at the Everett Mall? Mayor’s hint still unconfirmed

After Cassie Franklin’s annual address, rumors circled about what “top” entertainment tenant could be landing at Everett Mall.

Everett
Everett man sentenced to 3 years of probation for mutilating animals

In 2022, neighbors reported Blayne Perez, 35, was shooting and torturing wildlife in north Everett.

The Washington State University Snohomish County Extension building at McCollum Park is located in an area Snohomish County is considering for the location of the Farm and Food Center on Thursday, March 28, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Year-round indoor farmers market inches closer to reality near Mill Creek

The Snohomish County Farm and Food Center received $5 million in federal funding. The county hopes to begin building in 2026.

Dorothy Crossman rides up on her bike to turn in her ballot  on Tuesday, Aug. 1, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Everett leaders plan to ask voters for property tax increase

City officials will spend weeks hammering out details of a ballot measure, as Everett faces a $12.6 million deficit.

Starbucks employee Zach Gabelein outside of the Mill Creek location where he works on Friday, Feb. 23, 2024 in Mill Creek, Washington. (Olivia Vanni / The Herald)
Mill Creek Starbucks votes 21-1 to form union

“We obviously are kind of on the high of that win,” store bargaining delegate Zach Gabelein said.

Lynnwood police respond to a collision on highway 99 at 176 street SW. (Photo provided by Lynnwood Police)
Police: Teen in stolen car flees cops, causes crash in Lynnwood

The crash blocked traffic for over an hour at 176th Street SW. The boy, 16, was arrested on felony warrants.

The view of Mountain Loop Mine out the window of a second floor classroom at Fairmount Elementary on Wednesday, Jan. 10, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
County: Everett mining yard violated order to halt work next to school

At least 10 reports accused OMA Construction of violating a stop-work order next to Fairmount Elementary. A judge will hear the case.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.