So-Called 'D.C. Madam' Granted New Lawyer

A federal judge on Monday granted Deborah Jean Palfrey, the so-called D.C. madam, a new lawyer to handle her criminal case.

Palfrey claimed irreconcilable differences with A.J. Kramer, the head of the Federal Public Defender Service's Washington office, as the reason for making the change.

Palfrey is accused of running an operation that provided $300 per hour prostitutes in the D.C. area from her California home. She was indicted by a federal grand jury in February on racketeering charges. Palfrey insists that she ran a legal escort service.

Following her court appearance Palfrey apologized to a former State Department official who resigned after admitting he used her firm.

Randal Tobias, a deputy secretary of state, resigned Friday, one day after confirming to ABC News that he had used the Palfrey's service, Pamela Martin & Associates. Tobias said no sex was involved and he only used her massage services.

Palfrey said that validates her decision to turn over to ABC News phone records that could unveil thousands of clients.

"My hope that defense witnesses could be found by combing through the information indeed is being realized," Palfrey said in a prepared statement outside the federal courthouse in Washington after a brief hearing.

Palfrey and her civil attorney, Montgomery Blair Sibley, said they expect that Tobias will be subpoenaed to testify on her behalf.

Palfrey urged reporters to look into the reasons why she's being targeted for criminal prosecution.

Palfrey's lawyer also admitted that he got calls from five attorneys asking if their clients are part of the list of phone numbers turned over to ABC News. He said some have asked if accommodations could be made to keep those clients' names private.

On its Web site, ABC News reported Monday that the list of Palfrey's customers also includes an economist in President George W. Bush's administration, a prominent chief executive officer, the head of a conservative think tank, lobbyists and military officials.

Palfrey said she gave her phone records to ABC News so the network could identify clients who could then testify that the escorts performed legal services. Prosecutors, however, have accused Palfrey of seeking to intimidate witnesses by outing them publicly.

Sibley said he does not know how many people will be outed by ABC, which is planning to air a report Friday on its "20/20" newsmagazine.

"We don't know what ABC will do anymore than you do," Sibley said.

U.S. District Judge Gladys Kessler also ruled that Palfrey does not have to continue electronic monitoring. She now has to report to pretrial services three times a week by telephone.