Palfrey denounced the case against her as "rotten" when she spoke after a court appearance in which she was granted a new criminal lawyer, the Washington Post reported.
Palfrey is charged with federal racketeering for running an escort service that prosecutors allege was a prostitution ring.
Palfrey challenged prosecutors to press charges against her clients and "subcontractors" who she said "disobeyed my directives ... and participated in illegal behavior" by having sex, the Post reported. Palfrey also said they should be charged with money-laundering, conspiracy and racketeering.
Last Friday, Randall L. Tobias resigned as deputy secretary of state after confirming that he had patronized Palfrey's firm, Pamela Martin & Associates. Palfrey's civil lawyers said they have been contacted by other lawyers wondering if their clients' names can be found in Palfrey's phone lists.