Joshua S. Levy, U.S. Attorney | U.S. Attorney for the District of Massachusetts
A Torrance, California man has admitted his role in running a network of high-end brothels across greater Boston and eastern Virginia. James Lee, 70, pleaded guilty in a federal court in Boston to charges related to conspiracy for prostitution, money laundering, and wire fraud. U.S. District Court Judge Julia E. Kobick has set his sentencing for April 29, 2025.
Lee was arrested alongside Han Lee, 42, from Cambridge, Massachusetts, and Junmyung Lee, 31, from Dedham, Massachusetts in November 2023. The three were indicted by a federal grand jury in February 2024.
From January 2022 through November 2023, James Lee collaborated with Han Lee and Junmyung Lee to run an interstate prostitution network using multiple brothels in the areas mentioned above. The operation involved enticing women to travel interstate for prostitution purposes. Furthermore, they conspired to launder the proceeds from this illegal activity by hiding that the funds originated from the prostitution scheme.
James Lee leased several upscale apartments in Boston and Eastern Virginia that served as brothel locations. He was legally listed as the tenant at six such locations but often used fraudulent or stolen identities for leases. His co-conspirators compensated him for leasing these apartments and traveling between them. Han Lee reportedly paid him around $1,000 monthly per active lease as commission.
The group hid their earnings by depositing large sums into personal bank accounts and making peer-to-peer transfers. They also purchased money orders with cash proceeds under reporting thresholds to avoid detection; these were used to cover rent and utilities at their brothel sites.
In addition to his involvement with the brothels, James Lee submitted false information between March 2020 and September 2021 to secure loans via CARES Act programs like the Economic Injury Disaster Loan (EIDL) program and Paycheck Protection Program (PPP). Using another individual's identity without consent enabled him to submit fraudulent loan applications leading to over $580,000 obtained through EIDL funds and PPP loans.
Han Lee entered a guilty plea in September 2024 with sentencing slated for March 19th next year while Junmyung did so last October awaiting sentencing on April18th next year too .
The public is encouraged reach out if they have questions or information regarding this case via USAMA.VictimAssistance@usdoj.gov .
Conspiracy charges could result up five years imprisonment along three years supervised release fine up $250k ;money laundering could bring twenty years imprisonment same period supervised release fine $500k twice laundered amount whichever greater; wire fraud similarly carries potential twenty-year sentence same terms fines double loss caused scheme . Sentences determined according guidelines statutes governing criminal cases .
United States Attorney Leah B Foley announced today alongside Michael J Krol Special Agent Charge Homeland Security Investigations New England Cambridge Police Commissioner Christine Elow receiving assistance Central District California Eastern District Virginia U S Postal Service Watertown Police Department . Assistant U S Attorneys Lindsey E Weinstein Criminal Division Raquelle Kaye Asset Recovery Unit prosecuting case .