Former Massage Parlor Owner With Ties To Prostitution Pleads Guilty - CBS Local

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DENVER (CBS4)– A former massage parlor owner with ties to prostitution services has pleaded guilty to not paying her taxes.

Jung Yoon Choi pleaded guilty on Thursday to obstructing and impairing the laws of the Internal Revenue Service. She is scheduled to be sentenced to April 21.

According to the plea agreement, from Jan. 1, 2009 through Dec. 31, 2010, Choi owned an operated three massage parlors in the Denver metro area, Ivy Spa at 2260 S. Quebec Way in Denver, New Image Spa at 17793 Cottonwood Drive in Parker, and Blue Pine Spa located at 6212 East Pine Lane in Douglas County.

Court documents show that the primary service provided by her workers was giving massages for $40 to $50 but customers often paid an additional fee which was characterized as a tip for extra services.

At times those extra services consisted of prostitution services where the workers would engage in sexual acts with customers in exchange for money. Prosecutors say Choi was aware that the activity was happening.

Choi failed to file personal income tax returns for 2009 and 2010 and did not report her business income for either year and did not pay taxes to the IRS. Choi also impeded the IRS’s collection of taxes by using nominees on bank accounts to conceal business income, conducting financial transactions in amounts that were less than $10,000 and hiding income in the form of cast hoards at various locations.

Choi’s guilty plea of obstructing and impairing IRS laws carries a penalty of not more than three years in prison and a fine of up to $250,000 per count.

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