BOSTON—A Massachusetts woman accused of operating a high-end brothel network with wealthy and prominent clients in that state and the Washington, D.C., suburbs is planning to change her plea to guilty in federal court Friday, according to court documents.
Han Lee and two others were indicted earlier this year on one count of conspiracy to persuade, entice, and coerce one or more individuals to travel in interstate or foreign commerce to engage in prostitution and one count of money laundering, according to prosecutors.
James Lee of Torrance, California, and Junmyung Lee of Dedham, Massachusetts, also were indicted.
Han Lee initially had entered a not guilty plea. She has remained in custody.
A lawyer for Han Lee, Scott Lauer, said she would remain in custody after the hearing but declined to comment further. A lawyer for James Lee declined to comment. A lawyer representing Junmyung Lee said his next court appearance has been rescheduled.
Authorities said the commercial sex ring in Massachusetts and northern Virginia catered to politicians, company executives, military officers, lawyers, professors, and other well-connected clients.
Prosecutors have not publicly named any of the buyers and they have not been charged. Acting Massachusetts U.S. Attorney Josh Levy has said prosecutors are committed to holding accountable both those who ran the scheme and those who fueled the demand.
Some of the buyers have appealed to the highest court in Massachusetts in a bid to have their names remain private.
The operators rented high-end apartments to use as brothels in Watertown and Cambridge, Massachusetts, and Tysons, and Fairfax, Virginia, prosecutors said.
Han Lee recruited women and maintained the websites and brothels, according to authorities, who said she paid Junmyung Lee, who was one of her employees, between $6,000 and $8,000 in cash per month in exchange for his work booking appointments for the buyers and bringing women to the brothels.
The operators raked in hundreds of thousands of dollars through the network, where men paid from approximately $350 to upwards of $600 per hour depending on the services, according to prosecutors.
Officials say Han Lee concealed more than $1 million in proceeds from the ring by converting the cash into money orders, among other things, to make it look legitimate.
According to court documents, the defendants established house rules for the women during their stays in a given city to protect and maintain the secrecy of the business and ensure the women did not draw attention to the prostitution work inside apartment buildings.
Authorities seized cash, ledgers detailing the activities of the brothels, and phones believed to be used to communicate with the sex customers from their apartments, according to court papers.
The agent at Han Lee’s home also found items indicative of her “lavish and extravagant spending habits,” including luxury shoes and bags, investigators said. Each website described a verification process that interested sex buyers undertook to be eligible for appointment bookings, including requiring clients to complete a form providing their full names, email addresses, phone numbers, employers, and references if they had one, authorities said.
The defendants also kept local brothel phone numbers to communicate with customers; sent them a “menu” of available options at the brothel, investigators said.
