Police in Vancouver, British Columbia, say a reputed madam nicknamed "Pinky" sought a sales tax rebate from the Canadian government.

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Pinky allegedly also failed to pay taxes on her earnings estimated at more than $1 million a year, Canwest News Service reported.

A steady stream of male customers reportedly followed Pinky as she moved from house to house in Vancouver and then to the nearby town of Richmond where the law finally caught up with her.

Police say Pinky, 42, whose real name is Zhe Nai Xu, staffed her business with Korean women who entered Canada as tourists.

Vancouver Vice Sgt. Matt Kelly says the women would go directly from the airport to Pinky's house in Richmond and begin turning tricks almost immediately.

Kelly said police believe Pinky was the No. 1 madam operating in the Lower Mainland.