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FLEISS AND FATHER PLEAD NOT GUILTY TO FRAUD CHARGES

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Heidi Fleiss and her father have pleaded not guilty to federal charges that they concealed hundreds of thousands of dollars in earnings from a prostitution ring and funneled them into a $1.6 million home in Benedict Canyon.

Fleiss, 28, and pediatrician Dr. Paul Fleiss, 60, appeared Monday before U.S. District Judge Consuelo B. Marshall to enter their pleas to charges of money laundering, conspiracy, bank fraud and tax fraud.Trial was set for Oct. 11. Both are free on bail.

Heidi Fleiss also faces trial in state court Aug. 22 on pandering and drug charges.

Heidi Fleiss, wearing a dark suit, made no comments outside court. She and her father - a pediatrician in the Los Feliz area of Los Angeles - did not speak to each other and stood apart with their separate lawyers.

Outside federal court in Los Angeles, attorney Anthony Brooklier told reporters he expected a "favorable resolution" to both cases against his client, Heidi Fleiss.

"We expect to be exonerated," Brooklier said. "These are mere allegations at this point. She has pleaded not guilty. We expect to do battle with the government."