Brothels in Boston, Virginia made ‘outstanding’ amount of money, investigators say

DHS: Pair at center of prostitution ring went to great lengths to conceal the money they made

The person accused of running a sprawling brothel network in Boston and Virginia made a “outstanding” amount of money over the last several years, concealing over $1 million in part through “structured money orders,” according to court documents filed Wednesday.

Prosecutors accused Han Lee, 41, of Cambridge, of running a brothel network that catered to politicians, doctors, lawyers, and military officers in both states and had the infrastructure to “persuade, induce, and entice” women to cross state lines for prostitution work.

Han Lee’s financial records detailing the illegal business were “impeccable,” according to court documents. Inside Han Lee’s Cambridge apartment, police said they discovered at least 16 cell phones, utility bills, a computer, and other documents.

“From a shelf, investigators seized a Louis Vuitton shoe box which contained hundreds of money order receipts for both Western Union and United States Postal Service that appeared to be organized by date, location, and rent amount,” according to documents filed with the court.

Prosecutors said Junmyung Lee, a 30-year-old Dedham resident, ran the brothels in Virginia and Boston, which had detailed ledgers detailing daily activity.

According to court documents, one ledger found in the apartment was open to a page showing the stage names, appointment dates and times, and earnings of women, specifically to people who were then listed on the Virginia brothel website.

According to court records, Han Lee and Junmyung Lee voluntarily agreed Wednesday to remain in custody while their case is heard in federal court.

According to investigators, the brothels were run as a cash business, and the accused leaders went to great lengths to conceal the money they made.

Brothel leaders deposited cash into their own accounts, spreading it out and later converting it into money orders “to make the funds appear more legitimate,” according to court documents. According to authorities, they also used “third-party bank accounts” to receive deposits and conduct other financial transactions.

“The co-conspirators also engaged in ‘structuring,’ (intentionally splitting larger amounts of money into a series of smaller sums to avoid scrutiny from law enforcement or compliance obligations), both in the manner in which the co-conspirators made cash deposits into their own accounts, as well as the manner in which they converted cash into money orders, in order to avoid reporting requirements,” according to the investigation.

According to investigators, Han Lee obtained hundreds of thousands of dollars in money orders from the US Postal Service and Western Union, “which she then used to pay for various expenses associated with the prostitution business.”

Investigators said Han Lee had “lavish and extravagant” spending habits despite the fact that she was unemployed. According to investigators, the Louis Vuitton shoe box that served as a filing cabinet for the brothel business had a $1,360 sticker price for the shoes.

“Investigators discovered luxury bags and shoes by Yves Saint Laurent, Givenchy, Louis Vuitton, Christian Louboutin, and Jimmy Choo.” “I am aware that Han’s bank records show purchases at other luxury stores, including Balenciaga,” wrote DHS Special Agent Zachary Mitlitsky in an affidavit.

Investigators said they discovered communications from Han Lee that laid out “house rules” for commercial sex workers at the brothels while searching cellphones carried by women working at the brothels.

According to court documents filed by investigators, these included listening to “the song while working,” being cautious with cigarettes, not going outside “with heavy makeup,” and not using “red lights or other colored lights in front of the door.”

“No matter how much I talk, there are guests who enter the building silently,” Han Lee is accused of having written in the “house rules.”