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Officials: Dallas-area prostitution ring had global connections

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The major prostitution ring operating in Plano, Dallas and Hurst that authorities busted up this week has national and international ties, officials said Wednesday. The two-year investigation involving local, state and federal authorities was dubbed Operation Flaming Dragon.
On Monday, more than 240 local and federal law enforcement agents executed 14 state and federal warrants in North Texas that resulted in 20 arrests. In addition, they shut down nine storefronts that they allege were posing as massage parlors but being run as brothels. A home in Dallas was also raided.
U.S. Attorney Malcolm Bales said at a news conference Wednesday that a federal grand jury has returned a seven-count indictment against 11 people, eight of whom are in custody. Twelve others taken into custody face state charges in Plano and Dallas.
“We've dealt a crippling blow to this organization,” Bales said, adding that the investigation continues and more charges are possible.
Details about the amount of money handled through the prostitution ring were not released, but Bales said it could total in the millions of dollars.
“People say prostitution is the world's oldest profession, but the indictment, as you will see, spells out some very modern business practices,” Bales said.
The indictment alleges that in addition to the storefronts, the ring operated Internet-based prostitution services, using apartments and homes rented in Dallas and The Colony as well as in St. Louis and Oklahoma City.
And prostitutes were transported among the North Texas locations as well as from California, Nevada and Georgia, authorities say. They typically stayed for three to four weeks, longer if “successful working for the business enterprise,” according to the indictment.
“There clearly exists a national network that organizes where and when these women will be located in a particular massage storefront,” Bales said.
Most of the women involved in the prostitution ring came from China or other Asian countries, according to authorities. Bales said investigators have found no evidence to believe human trafficking or involuntary servitude is involved. Nor have they found any evidence of children being involved, he said. All those involved appear to be in the U.S. legally, he said.
The federal indictment states that Quyen Thuc Ha, also known as Tony Ha, owned and operated nine massage parlors that functioned as brothels. He allegedly gave $305,000 in multiple bribery payments to a detective in Dallas and another in Plano beginning in March 2011.
The 53-year-old Ha, who lives in Richardson, believed the detectives were protecting his brothels from police enforcement, authorities say. Instead, the officers were working undercover, recording the transactions and turning the payments over to federal authorities. The most recent bribe payment came last week, they say.
The warrants executed on Monday have been sealed. Details about evidence seized are being kept under wraps. But Bales said computer records, phone records and business records have been confiscated and will be examined for further illegal activity.
FBI video surveillance captured “a large number of male customers entering and leaving” the businesses, documents say.
It will be up to local and state authorities to determine whether any of the clients will be prosecuted.
The investigation has been in the works for more than two years, in part to help authorities identify the main players as well as some of the national and international ties. One of the top women in the crime ring is believed to be in China or Hong Kong and is not in custody, Bales said.
Authorities say storefronts associated with the prostitution ring were the Hurst Asian Spa in Hurst; the Rosemeade Spa in the 3900 block of Rosemeade Parkway near the Bush Turnpike in Dallas; the JJ Asian Health Center in the 5500 block of Alpha Road near Montfort Drive in Dallas; the Spring Creek Village in Dallas; and the D-Spa on Coit Road in Dallas. In Plano were the Asian Therapy Center on 15th Street, the Wellness Therapy on 19th Street, the Aljunni Massage (Ni-Ni-Ha Foot Massage) on Alma Drive and the Golden Spring Asian Spa on Spring Creek Parkway. The indictment also references an unnamed hotel in Plano.
Listed in the federal indictment in addition to Ha were Yu Lin Chang, also known as Rica and Jennifer, 37, of Plano; Kim Sey Lau, also known as John Wang and Tony, 56, of Dallas; Lai Iong Chiu, also known as Mindy, Winnie, Wendy and Li Yan Zhou, 46, of Plano; Xia Xu, also known as Coco, 46, of Dallas; Yu Qian, also known as Maggie, 45, of Flower Mound; Li Meng Shank, 42, of Plano; Prapatson Verhotz, 46, of Garland; Tin Min Lo, also known as Gordon, 51, of Coppell, Michael Gene Jones, 64, of Georgetown; and Jia-Her Hwang, also known as Jack, 65, of Richardson.
They face charges of conspiracy and the use of interstate facility for organized prostitution. Ha also faces charges of bribery.
Officials say Chiu, Xu and Prapatson are not in custody.
Arrested by Plano police on suspicion of conducting massage therapy without a license were Yubing Li, 50; Hui Li, 44; Jing Liu, 53; and Jihong Liu, 41. Plano police also arrested Yafen Wang, 47, and LeQin Huang, 40, on suspicion of prostitution.
Dallas police arrested Pang Hsiang Lin, 51, and Yu Tao Chen, 52, at the Alpha Road spa in Dallas. Yuanli Zhang, 45, was arrested at the Rosemeade Parkway spa in Dallas, and Chinli Yeh, 57, was arrested at a home in the 13300 block of Kit Lane in Dallas, according to documents. The four face charges of engaging in the organized criminal activity of prostitution.

http://www.dallasnews.com/news/crime/hea…