A Torrance, California man was sentenced in a Boston federal court for his role in operating high-end brothels in the greater Boston area and eastern Virginia. James Lee, 70, received a 27-month prison sentence from U.S. District Court Judge Julia E. Kobick. His sentence includes three years of supervised release and restitution of $569,123 for fraudulently obtained COVID-19 relief funds. Additionally, a money judgment of $63,000 was ordered concerning proceeds from the prostitution conspiracy.
In February 2025, Lee pleaded guilty to charges including conspiracy to persuade individuals to travel for prostitution, money laundering conspiracy, and wire fraud. He was arrested alongside co-defendants Han Lee and Junmyung Lee in November 2023; they were indicted by a federal grand jury in February 2024.
From January 2022 through November 2023, James Lee conspired with Han Lee and Junmyung Lee to operate an interstate prostitution network involving multiple brothels. The network spanned greater Boston and eastern Virginia areas. James Lee rented several apartments used as brothel locations using both his name and fraudulent identities.
The defendants laundered the prostitution proceeds by depositing cash into personal bank accounts and peer-to-peer transfers while purchasing money orders below reporting thresholds to pay rent and utilities at the brothel locations.
Lee also engaged in fraudulent activities related to COVID-19 relief funds between March 2020 and September 2021. He submitted false loan applications using third-party information through programs like the CARES Act’s Economic Injury Disaster Loan (EIDL) program and Paycheck Protection Program (PPP), resulting in over $580,000 being fraudulently obtained.
Han Lee received a four-year prison sentence followed by one year of supervised release in March 2025 along with forfeiture amounting to $5,418,572; restitution will be determined later. In April 2025, Junmyung Lee was sentenced to one year in prison followed by one year of supervised release with a forfeiture judgment totaling $200,000.
For further information or inquiries regarding this case, members of the public are encouraged to contact USAMA.VictimAssistance@usdoj.gov.
The announcement came from United States Attorney Leah B. Foley; Michael J. Krol of Homeland Security Investigations New England; Cambridge Police Commissioner Christine Elow with assistance from various agencies including Central District of California; Eastern District of Virginia; U.S Postal Service; Watertown Police Department under prosecution led by Assistant U.S Attorneys Lindsey E Weinstein (Criminal Division) & Raquelle Kaye (Asset Recovery Unit).
