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Third brothel ring defendant sentenced for prostitution conspiracy, wire fraud
The defendant previously pleaded guilty in February to helping operate a brothel ring out of Greater Boston and eastern Virginia.
A third defendant was sentenced May 28 in federal court for his involvement in operating a high-end Greater Boston brothel ring, according to federal prosecutors.
James Lee, 70, of Torrance, Calif., was also sentenced for fraudulently obtaining over $580,000 in COVID-19 relief funds, the U.S. Attorney’s Office for the District of Massachusetts said in a statement. Lee pleaded guilty to prostitution conspiracy, money laundering conspiracy, and wire fraud back in February.
Lee was sentenced to 27 months in prison, followed by three years of supervised release, according to the U.S. Attorney’s Office. He was also ordered to pay $569,123 in restitution for the fraudulently obtained COVID-19 funds and a $63,000 money judgment for proceeds earned through the brothel ring.
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Lee and co-defendants Han Lee, 42, of Cambridge, and Junmyung Lee, 31, of Dedham, were arrested and charged in November 2023 and indicted by a grand jury in February 2024. James Lee is not related to the other defendants, prosecutors said.
Previously:
From at least January 2022 through November 2023, the three defendants conspired to operate a prostitution network with brothels in Greater Boston and eastern Virginia, according to the U.S. Attorney’s Office. They then laundered the proceeds of the prostitution network through concealment, prosecutors said.
Lee was the sole legal tenant of six brothel locations across several rented high-end apartments and at times used fraudulent or stolen identities to rent apartments, the U.S. Attorney’s Office said. His co-conspirators regularly compensated him for leasing the apartments and traveling between them, paying him approximately $1,000 a month in commission per active lease.
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Lee also served as a liaison between the women working in the brothel ring and the property managers, fielding calls and resolving issues related to maintenance and inspection, according to prosecutors.
The three defendants concealed the proceeds from the brothel ring by depositing them into their personal bank accounts and through peer-to-peer transfers, the U.S. Attorney’s Office said. They also used the proceeds to purchase money orders and use them to pay for rent and utilities.
Between about March 2020 and September 2021, Lee submitted fraudulent information in an attempt to obtain loans through COVID-19 relief funds and programs like the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). Lee applied for the loans using third-party identifying information and names of businesses that either did not exist or served as shell companies, federal prosecutors said.
Lee also submitted fraudulent tax documents using a third party’s name and created a fake lease between himself and a false identity, enabling him to obtain at least $580,000 in EIDL funds and PPP loans, according to the U.S. Attorney’s Office.
Han Lee was sentenced in March to four years in prison followed by one year of supervised release. She was also ordered to pay $5,418,572 in forfeiture and a currently undetermined amount in restitution.
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Junmyung Lee was sentenced in April to one year in prison followed by one year of supervised release. He was also ordered to pay $200,000 in forfeiture.
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