Lancaster, 24, faces up to eight months in jail when she is sentenced later this year. She pleaded guilty to two counts of second-degree promoting prostitution , a felony.
Lancaster managed the stands for Panico. In , Lancaster, then 18, was working for Bill Wheeler Sr. Lancaster and her fellow baristas never saw any jail time in connection with that case. Instead, they were warned to keep clean or face a criminal conviction.
Panico, a former exotic dancer, pleaded guilty last year to promoting prostitution out of Java Juggs and Twin Peaks and laundering the proceeds.
The espresso madam was arrested in as part of an investigation into police corruption. Baristas told detectives that they were earning hundreds of thousands of dollars providing sexually explicit shows at the stands. Some of the baristas also were engaged in prostitution at the stands and away from the coffee huts. Some told investigators that they were afraid of Panico because of her ties to the Colacurcio family.
For years, the Seattle family operated Talents West, a sex-oriented entertainment business, which included strip clubs. Facing criminal charges, Panico walked away from her stands last year and leased three of them to Lancaster. The city of Everett later ordered Lancaster to vacate the coffee shacks. The city attorney alleged that Lancaster and her employees continued to engage in illegal conduct.
