[troutman]

Originally Posted by VladtheImpaler

Again, we get down to technicalities - what exactly she was supplying the women for, whether any of the women were paid, whether expectations were outlined, etc...

http://en.wikipedia.org/wiki/Escort_agency

From a legal perspective, escort agencies claim that they are dispatching these individuals to provide a social or conversational service, since prostitution laws often forbid taking payment for sex or communicating for the purpose of arranging a contract for sexual services. Advertisements for escort agencies often carefully skirt the legal line, and avoid specifically offering prostitution or sexual services.

The arm's length relationship between the escort and the escort agency is designed to protect the escort agency (to some degree) from prosecution for breaking laws against prostitution. If the employee is solely responsible for arranging any illegal prostitution-oriented activities, the agency can maintain plausible deniability should an arrest be made.

I don't know to what extent different jurisdictions will try to "pierce the escort veil".