Former Denver massage parlor owner pleads guilty to tax evasion - The Denver Post

[massage]

Jung Yoon Choi admitted obstructing and impairing the laws of the Internal Revenue Service


Jung Yoon Choi, age 55, formerly of Aurora, entered a guilty plea Thursday before U.S. District Court Judge Robert E. Blackburn to tax evasion, U.S. Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced.

Blackburn is scheduled to sentence Choi on April 21.

According to the plea agreement, from January 1, 2009, through Dec. 31, 2010, Choi owned and operated three massage parlors in the Denver metropolitan area, specifically; Ivy Spa located at 2260 S. Quebec Way in Denver (during 2009); New Image Spa located at 17783 Cottonwood Drive in Parker (during 2010); and Blue Pine Spa located at 6212 East Pine Lane in Douglas County (during 2010).

The primary service was massages. Each of the spas typically had a fee schedule according to which customers paid a door fee ordinarily ranging from $40 to $50, depending on the amount of time requested (30 to 60 minutes were the norm). In addition, customers at the various spas often paid an additional fee which was characterized as a "tip" in many instances for "extra services" provided by Choi's workers. At times, the "extra services" consisted of prostitution services.

Choi regularly advertised for her spas using Westword newspaper and Sowet.com. Choi paid the owner of Sowet.com a monthly fee to post favorable reviews on his website touting her various businesses and the women who worked there.


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Choi generated substantial income from each of her spas for tax years 2009 to 2010. However, she failed to file personal income tax returns for 2009 and 2010, did not report her business income for either year and she did not pay any taxes to the IRS. In addition to not filing tax returns and not paying taxes, Choi also impeded the IRS's collection of taxes by using nominees on bank accounts; conducting financial transactions in amounts that were less than $10,000 so as not to trigger the filing of currency transaction reports; and hiding and storing income in cash at various locations.

Under the plea agreement, Choi agrees to the forfeiture of $118,575.00 seized on Dec. 17, 2010.

Choi pleaded guilty to one count of obstructing and impairing IRS laws which carries a penalty of not more than 3 years in federal prison, and a fine of up to $250,000.


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