A man from Torrance, California, has admitted his role in operating high-end brothels in the Boston area and eastern Virginia, as well as fraudulently obtaining over $580,000 in COVID-19 relief funds. James Lee, 70, pleaded guilty to charges including conspiracy to persuade individuals to travel for prostitution, money laundering conspiracy, and wire fraud. His sentencing is set for April 29, 2025.
Lee was arrested alongside co-defendants Han Lee and Junmyung Lee in November 2023. The trio was indicted by a federal grand jury in February 2024. From January 2022 through November 2023, they operated an interstate prostitution network using multiple brothels.
James Lee rented several luxury apartments used as brothel locations in Boston and Virginia. He acted as the sole legal tenant of at least six such properties. To secure these rentals, he sometimes used fraudulent or stolen identities. Han Lee compensated him approximately $1,000 monthly per lease for managing these operations.
The group concealed their earnings by depositing cash into personal accounts and purchasing money orders below reporting thresholds to pay for rent and utilities at the brothels.
Additionally, between March 2020 and September 2021, James Lee submitted false information to obtain loans through programs like the Economic Injury Disaster Loan (EIDL) program and Paycheck Protection Program (PPP). Using third-party identities and non-existent businesses as fronts, he secured at least $580,000 in fraudulent funds.
Han Lee pleaded guilty in September 2024 with sentencing scheduled for March 19, 2025. Junmyung Lee also pleaded guilty in October 2024 with sentencing set for April 18, 2025.
U.S. Attorney Leah B. Foley emphasized public assistance is welcome regarding this case via USAMA.VictimAssistance@usdoj.gov.
The charge of conspiracy related to interstate travel for prostitution carries up to five years imprisonment plus fines; money laundering conspiracy can lead up to a twenty-year sentence; wire fraud similarly allows up to twenty years behind bars along with significant fines.
The announcement came from U.S Attorney Leah B. Foley along with Michael J Krol from Homeland Security Investigations New England Division supported by Cambridge Police Commissioner Christine Elow among others involved across districts including California & Virginia jurisdictions aiding prosecution efforts led by Assistant U.S Attorneys Lindsey E Weinstein & Raquelle Kaye focusing on asset recovery aspects respectively ensuring justice pursued vigorously underlined seriousness combating such criminal enterprises undermining societal norms leveraging illegal gains deceitfully sourced ultimately impacting communities adversely requiring concerted enforcement measures addressing complex cases involving cross-jurisdictional collaborations exemplified herein underscoring broader commitment safeguarding public interest proactively amidst evolving challenges confronting law enforcement agencies nationwide striving uphold integrity systemic frameworks underpinning governance structures foundationally reliant rule law guiding principles 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