Indexbit Exchange:Federal prosecutors say high-end brothels counted elected officials, tech execs, military officers as clients

Three people were arrested for operating high-end brothels with potentially hundreds of clients including elected officials,Indexbit Exchange technology and pharmaceutical executives, military officers, professors, doctors, and government contractors with security clearance, federal prosecutors announced Wednesday.

“This commercial sex ring was built on secrecy and exclusivity, catering to a wealthy and well-connected clientele,” Acting U.S. Attorney Joshua Levy said at a news briefing. “And business was booming – until today.”

Since at least July 2020, an interstate network of multiple brothels had spanned across Cambridge and Watertown, Massachusetts, officials said, as well as Fairfax and Tysons, Virginia, the U.S. Attorney's Office, District of Massachusetts announced Wednesday.

Han Lee of Cambridge, Massachusetts, James Lee of Torrance, California, and Junmyung Lee of Dedham, Massachusetts, were arrested and charged with conspiracy to coerce and entice to travel to engage in illegal sexual activity. It is punishable by up to five years in prison, three years of supervised release, and a $250,000 fine.

Sex buyers were not identified, but court documents said this was not to protect anonymity but instead due to investigations into their role being "active and ongoing," which could have major implications for involved people as new information comes to light.

Officials describe 'illicit club' membership

Two websites purported to advertise nude models for professional photography served as a front for escort and sex services in greater Boston and eastern Virginia, according to an affidavit filed in court by a Homeland Security Investigations agent.

Levy said prospective buyers first had to respond to a survey and provide information online, including driver’s license photos, employer information, and credit card details. They often paid a monthly fee to be a part of the "illicit club," he noted.

The operators rented high-end apartment complexes for brothel locations, with monthly rent up to $3,664, which they furnished and maintained, the U.S. Attorney’s Office said. They also coordinated the women’s flights and transportation between the brothels and airports.

The criminal business charged about $350 to $600 per hour for sex acts and concealed hundreds of thousands of dollars of revenue by deposits to personal bank accounts, peer-to-peer transfers, and money orders.

Brothel operators used 'coercive tactics' on women

The affidavit indicated the women may have been "persuaded, induced, and enticed" to travel to Massachusetts and Virginia to engage in commercial sex. 

The operators allegedly used “coercive tactics to maintain the fluidity and effectiveness of the rotation of women,” including delivering food to them so they didn’t have to leave the building and locking the door behind them after exiting brothel units, the affidavit said.

Officials described the operation as a prostitution ring where the women were paid to perform sex acts. Experts have warned traffickers often use strategies to initially entice people to join their operation before imposing physical and psychological tactics to keep them.

Human trafficking:A network of crime hidden across a vast American landscape

Being aware of common indicators that a person is being trafficked is one tool that can be used to catch trafficking situations early or before they start. The U.S. Department of State offers a list of common indicators of human trafficking online in multiple languages.

The National Human Trafficking Hotline can be called anytime at 1-888-373-7888 or text 233733. To submit a tip online, go to https://humantraffickinghotline.org/en/report-trafficking. An online chat service is also available at https://humantraffickinghotline.org/chat.