The four Chinese citizens pleaded guilty to charges including
conspiracy to harbor aliens, money laundering and tax evasion in connection
with the $700,000 enterprise, which sold Taiwanese, mainland Chinese and
Korean women for sex out of residential brothels in San Jose, Santa Clara,
Sunnyvale and San Mateo. A fifth defendant pleaded guilty Feb. 1.
Those who entered guilty pleas in U.S. District Court in San Francisco
are: Xiao Feng Shen, 35; Jia Jing Chu, 34; Yan Song, 42; and Ming Sun, 32,
all of San Jose; and Ai-Ching Chang, 45, of Sunnyvale. Sentencing is
scheduled for May 3. Conspiracy to harbor aliens carries a maximum 10 year
prison term and $250,000 fine. Money laundering brings a maximum 20-year
prison term and $500,000 fine and tax evasion convictions can result in a
maximum 5 year prison term and $100,000 fine.
The investigation began in fall 2004, when one of the defendants tried
to bribe a San Mateo police officer to dismiss pimping and pandering
charges against a co-defendant.
Federal investigators from Immigration and Customs Enforcement and the
Internal Revenue Service discovered the ring leaders were shuffling dozens
of women every 10 days between 10 residential brothels. Customers found the
unlicensed massage parlors through the Internet and word of mouth.
Brothel operators controlled the women's access to the outside world
by keeping them in rooms inside the brothels or in nearby apartments they
owned. They kept the curtains closed, provided sex supplies and moved the
women around in their own cars or by drivers who worked for the illegal
network. They also kept a portion of each woman's earnings.
After federal raids last October, officials detained 31 women and
interviewed them to determine if they were sex trafficking victims forced
to work against their will. Nineteen were deported, but 12 remained to
testify against the brothel owners. Now those 12 will undergo immigration
proceedings to determine their residency status.
"We want to make it perfectly clear that the degradation of women will
not be tolerated in our communities, and we will be proactive in our
efforts to arrest those who prey upon the plight of other human beings,"
San Jose Police Chief Rob Davis said in a written statement.