A Korean-American man has pleaded guilty to operating a high-end brothels that targeted doctors, business executives, military personnel, and attorneys in cities including Boston and Washington, D.C.
On February 26, the U.S. Attorney’s Office for the District of Massachusetts announced that James Lee (70) from Torrance, California, admitted to charges related to prostitution ring operations and pandemic relief fraud. U.S. District Judge Julia Kobick has scheduled his sentencing for April 29.
Prosecutors stated that Lee faces a maximum sentence of five years in prison and a fine of up to $250,000 for conspiracy to promote prostitution. Additionally, he could face up to 20 years in prison and a $500,000 fine for money laundering conspiracy, as well as 20 years in prison and a $250,000 fine for wire fraud.
![An apartment complex leased by James Lee for operating a prostitution ring in Virginia. [FOX5 Screenshot]](https://www.koreadailyus.com/wp-content/uploads/2025/02/korean-1.jpg)
Large-Scale Prostitution Operation Across Multiple States
Between January 2022 and November 2023, Lee conspired with co-defendants Han Lee (42, Cambridge, MA) and Junmyung Lee (31, Dedham, MA) to lease luxury apartments in Cambridge, Watertown, and Dedham, Massachusetts, as well as Fairfax and Tysons, Virginia, where they facilitated illegal prostitution. The organization then laundered the profits to conceal their activities.
The prostitution ring catered to elite clientele through a membership system, primarily targeting professionals. Investigators uncovered meticulous financial records written in Korean, documenting details such as the names of sex workers, customer appointments by day and time, and payments received.
Pandemic Relief Fraud
In addition to operating the prostitution ring, Lee and his associates fraudulently obtained federal pandemic relief funds intended for struggling businesses. They set up fake companies and used stolen personal information to apply for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds.
Prosecutors stated that Lee fraudulently received at least $580,000 in federal pandemic relief loans by submitting falsified tax documents and rental agreements.
Han Lee and Junmyung Lee pleaded guilty in September and October 2024, respectively.
The case highlights an extensive criminal operation that exploited federal relief programs while engaging in organized prostitution targeting high-income professionals. Lee now awaits sentencing, facing significant prison time and fines.
BY YOUNGNAM KIM [kim.youngnam@koreadaily.com]
