'Manhattan Madam' dishes on running exclusive escort service to celebs, VIPs

She is one of the reasons New York is the city that doesn't sleep: Kristen Davis, once known to the world as the "Manhattan Madam."

From one-time vice president of a Wall Street hedge fund managing billions of dollars to running one of the most exclusive escort services in the nation.

Davis reportedly provided escorts to celebrities and high-powered patrons who will remain a secret.

There's perhaps the most infamous of all, disgraced former New York Governor Elliot Spitzer, otherwise known as "Client Number 9," who resigned office after accusations of spending thousands of dollars per night with escorts, some of whom were Davis's best girls.

The revelations also landed Davis behind bars, found guilty of promoting prostitution and money laundering. The Manhattan Madam was sent to Rikers Island.

Once sprung from prison, Kristen Davis bounces back and hits the ground running.

The madam who once had a hand in taking down the governor of New York now runs for the office herself, on the "pot and prostitution" platform, in favor of legalizing marijuana and the sex-for-hire industry.

"We were a protest candidate," said Davis. "We fell short, we didn't get the votes we needed, so that was a very depressing time."

But Kristen Davis wasn't done: Three years later she ran for New York City Comptroller.

And who decided to run against her? None other than Elliot Spitzer himself.

Only weeks after Spitzer announces his candidacy, the police are knocking on Davis's door again with a warrant. This time she's charged with four counts of distributing and intent to distribute a controlled substance.

Davis was sentenced to a two-year stretch at a federal prison in California, where she takes up writing for an online blog about her experience.

Today Kristen Davis has another shot at the normal life, and says she's doing everything she can to stay on the straight and narrow.

And as she looks back on her rough and tumble days, she says she has some regrets -- not so much for herself -- but for the women she once employed.

Gone are the high-class midtown Manhattan penthouses. Today she's living way up in the Bronx at a federal halfway house.

But the "Manhattan Madam" has kept herself busy in this halfway house. Davis just announced she's pregnant, and claims it happened here.

The baby daddy? Davis isn't kissing and telling. The only thing she will say is they're not together anymore. She's is due in September but has already given birth to a new career at a beauty spa.

Despite her fall from fortune, the woman who was in the business of providing pleasure has a big smile on her face again.