A man from Torrance, California, has been sentenced in a Boston federal court for his role in operating high-end brothels and fraudulently obtaining COVID-19 relief funds. James Lee, aged 70, received a sentence of 27 months in prison followed by three years of supervised release. U.S. District Court Judge Julia E. Kobick also ordered him to pay restitution amounting to $569,123 for the fraudulent COVID-19 funds and a money judgment of $63,000 related to the prostitution conspiracy proceeds.
In February 2025, Lee pleaded guilty to charges including conspiracy to persuade individuals for prostitution across state lines, money laundering conspiracy, and wire fraud. He was arrested in November 2023 alongside co-defendants Han Lee and Junmyung Lee. The group was indicted by a federal grand jury in February 2024.
From January 2022 through November 2023, James Lee conspired with others to run an interstate prostitution network with brothels located in greater Boston and eastern Virginia. They laundered the proceeds by disguising their origins.
James Lee rented multiple apartments used as brothel locations under his name or using fraudulent identities. He received compensation from his co-conspirators for leasing these properties and coordinating issues between workers and property managers.
The group concealed their earnings by depositing cash into personal accounts and using peer-to-peer transfers. They purchased money orders below reporting thresholds to pay rent and utilities at the brothel sites.
Additionally, from March 2020 through September 2021, James Lee submitted false information to obtain loans via the CARES Act programs like the Economic Injury Disaster Loan (EIDL) program and Paycheck Protection Program (PPP). Using third-party identities and non-existent businesses, he secured at least $580,000 in relief funds.
Han Lee was sentenced in March 2025 to four years imprisonment followed by one year of supervised release; he must also pay forfeiture totaling $5,418,572 with additional restitution pending. In April 2025, Junmyung Lee received a one-year prison sentence followed by one year of supervised release along with a forfeiture money judgment of $200,000.
The public is encouraged to contact USAMA.VictimAssistance@usdoj.gov with any inquiries regarding this case.
The announcement came from United States Attorney Leah B. Foley; Michael J. Krol of Homeland Security Investigations; Cambridge Police Commissioner Christine Elow; supported by various law enforcement agencies including those from California and Virginia.
Assistant U.S. Attorneys Lindsey E. Weinstein and Raquelle Kaye prosecuted the case.
