Apparently, Palfrey was not convicted of prostitution.
"Channing Phillips, a spokesman for U.S. Attorney Jeffrey Taylor, tells WTOP typically in cases in which a defendant is convicted but dies before sentencing, prosecutors file a motion to abate the prosecution, along with a notice of suggestion of death, which results in court records of the conviction being vacated.
. . . .
"Palfrey was convicted on April 15 of racketeering and money laundering charges for running a prostitution ring that catered to Washington's elite, including Sen. David Vitter (R-La.), former senior State Department official Randall Tobias, and military strategist Harlan Ullman.
. . . .
"After Palfrey was convicted, prosecutors urged U.S. District Judge James Robertson to immediately put Palfrey behind bars, arguing that the verdict was a motive for her to flee. Judge Robertson denied the request, noting that Palfrey has never missed a court appearance.
"The trial was the first time federal prosecutors in D.C. used federal racketeering statutes in a prostitution case."
http://www.wtop.com/?sid=1396668&nid=25Also, as with Kenneth Lay, because she died before sentencing, technically, her conviction is as though voided.
"Lay is also no longer a criminal. It is a little known quirk of the law that a defendant who dies between conviction and sentencing is no longer guilty, at least on paper. "You're not technically convicted till after you're sentenced," explains Danny Onorato, former federal prosecutor and partner in the D.C. criminal defense firm of Schertler & Onorato. "So although he was convicted by a jury, he technically has no criminal record." You could argue that Lay had exquisite timing, muses Onorato. "You could also argue," he concludes, "that the prosecutor gave him the death penalty."
http://www.salon.com/news/feature/2006/07/06/lay/If she committed suicide, it may have been to avoid the conviction on her record. The government seized her assets quite some time ago.
http://www.pittsburghlive.com/x/pittsburghtrib/news/mostread/s_502489.htmlI do not know, but wonder whether her suicide and the vacating of her conviction will affect the government's ability to keep those assets or to enforce penalties against her estate.