DENVER – Jung Yoon Choi, age 55, formerly of Aurora, Colorado, pled guilty yesterday before U.S. District Court Judge Robert E. Blackburn to obstructing and impairing the laws of Internal Revenue Service.
From January 1, 2009, through December 31, 2010, Choi owned and operated three massage parlors in the Denver Metropolitan area.
Choi typically staffed each of her spas with an on-site manager and a number of workers who provided services to customers. The primary service provided by her workers was giving massages. Each of the spas typically had a fee schedule according to which customers paid a door fee ordinarily ranging from $40 to $50, depending on the amount of time requested (30 to 60 minutes were the norm). In addition, customers at the various spas often paid an additional fee which was characterized as a “tip” in many instances for “extra services” provided by Choi’s workers. At times, the “extra services” consisted of prostitution services in violation of Colorado Revised Statute, 18-7-201. Specifically, the workers would engage in sexual acts with customers in exchange for money. Choi was aware that such illicit activity was occurring at times in each of her spas and that business income was being generated from such activity. Choi regularly advertised for her spas using Westword newspaper and Sowet.com. Choi paid the owner of Sowet.com a monthly fee to post favorable reviews on his website touting her various businesses and the women who worked there.
Choi pled to one count of obstructing and impairing IRS laws which carries a penalty of not more than 3 years in federal prison, and a fine of up to $250,000 per count.
