DENVER | An Aurora woman who operated three Denver metro area massage parlors where sexual acts were performed reached a plea agreement on federal tax charges connected to the businesses.
According to a news release from the office of U.S. Attorney John F. Walsh, Jung Yoon Choi, 55, pled guilty Thursday, Jan. 14, to obstructing and impairing the laws of the Internal Revenue Service in U.S. District Court.
According to the plea agreement, Choi owned and operated three Denver-area massage parlors between January 2009 and December 2010: Ivy Spa on South Quebec Way in Denver, New Image Spa on Cottonwood Drive in Parker, and Blue Pine Spa on East Lane Lane in Douglas County.
Prosecutors said Choi did not file personal income tax returns for the years she owned the businesses, with no business income reported, and “further impeded the IRS’ collection of taxes by several means,” including using “nominees” on cash and business transactions and bank accounts, making sure transactions were less than $10,000 to not trigger currency transaction filings, and hiding unreported income in multiple places.
In December 2010, IRS special agents seized more than $118,000 from a U-Store-It locker. In total, searches resulted in agents seizing more than $219,000 in cash from Choi and her associates.
Prosecutors said Choi’s spas would charge a “door fee” of between $40 and $50 depending on the length of the massage session, and then customers would pay an additional fee or “tip” for “extra services” such as sexual acts. Choi ran ads in Westword and Sowet.com for the spas and paid a monthly fee to Sowet.com “to post favorable reviews on his website touting her various businesses and the women who worked there,” according to the release.
As part of the plea agreement, Choi forfeited the $118,575 seized on Dec. 17.
She is scheduled for sentencing April 21. She faces up to three years in prison and a fine of up to $250,000 on top of the agreed-upon asset forfeiture as part of her plea agreement.
Oops. What happens for not paying taxes lol