US Attorney Reports Five Convicted Of Human Trafficking Offenses With Korean Prostitutes

MICHAEL J. GARCIA, the United States Attorney for the
Southern District of New York, and SALVATORE DALESSANDRO, the
Acting Special Agent-in-Charge of the New York Office of the
Department of Homeland Security’s U.S. Immigration and Customs
Enforcement (“ICE”), announced today that SUN DANEMAN, HYANG RAN
were convicted, following a three-week jury trial before United
States District Judge ALVIN K. HELLERSTEIN, of conspiring to
transport women across state and foreign lines to engage in
prostitution. The jury also convicted KIM and RYAN of conspiring
to induce or entice women to travel across state and
international lines to engage in prostitution.

The trial of these five defendants stemmed from the
August 2006 arrests of more than 30 individuals charged as part
of a wide-ranging human trafficking ring operating throughout the
northeastern United States; 20 of the prostitution business
owners and managers were charged in the Southern District of New
York with operating and participating in an international
prostitution ring — the rest were charged in the Eastern
District of New York. Other than the five defendants convicted
today, all of the defendants charged in Manhattan pleaded guilty
before trial. According to documents filed in Manhattan federal
court and the evidence at trial:
The criminal operation smuggled women from South Korea
into the United States and placed those women at various
prostitution businesses located throughout the northeastern
United States, including the businesses owned and managed by the
trial defendants. DANEMAN owned the “Magic Health Salon” in
Waterbury, Connecticut; KIM owned the “OK Spa” in Washington, DC;
RYAN owned the “Cleveland Park Holistic Center” in Washington,
DC; SHIM owned the “Hong Kong” in Flushing, New York; and
THOMPSON managed the “14K Spa” in Washington, DC.

The defendants used a network of drivers to deliver
Korean women to work at the defendants’ businesses as
prostitutes, and to transport women within the network to meet
customer demand. The defendants generated hundreds of thousands
of dollars in annual income at their businesses by charging
customers “house fees” to have sex with the women, to whom the
defendants paid no wages or salaries. The women were also
required to pay the defendants up to $800 per week from the money
the customers paid them for sex.

The trial evidence also showed that the women were
typically required to sleep inside the defendants’ businesses and
follow “house rules” that barred them from going outside or
refusing customers. Several of the women testified at trial
about witnessing and experiencing sexual assaults inside the
businesses owned and managed by defendants KIM and THOMPSON, and
about how after the assaults, those defendants told the women to
refund the customers’ money and return to work.

The trial evidence included: recorded conversations
between the defendants and a driver who supplied women to the
businesses; the testimony of seven of the women who worked as
prostitutes in the defendants’ businesses; and testimony from
several undercover officers who had entered the businesses. The
evidence also included items seized by law enforcement agents
from the defendants’ businesses, including condoms hidden inside
pepper shakers, shampoo bottles, detergent bottles, and other
containers. Law enforcement agents seized picnic coolers
containing over 2,000 condoms at DANEMAN’s business.
Defendants KIM and RYAN face maximum sentences of ten
years in prison; DANEMAN, SHIM, and THOMPSON face maximum
sentences of five years in prison. All five defendants are
scheduled to be sentenced on March 4, 2008. Of the defendants
who pleaded guilty before trial, ten have been sentenced and
eight are awaiting sentencing.

Mr. GARCIA praised the work of ICE, the Federal Bureau
of Investigation, and the Waterbury, Connecticut Police
Department in this case.
Assistant United States Attorneys ELIE HONIG, LISA
ZORNBERG, and JASON P.W. HALPERIN are in charge of the
07-278 ###

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