8/1/2014 – Dallas, TX — Two leaders of a major Dallas based prostitution ring have pleaded guilty to federal charges.
As JohnTV previously reported last year, ‘Operation Flaming Dragon’ was a two-year investigation involving local, state and federal authorities, centered around businesses in Plano, Dallas and Hurst.
Prosecutors contend that the targeted businesses and were nothing more than front for prostitution.
In June of 2013 more than 240 agents from multiple agencies executed 14 state and federal warrants in North Texas that resulted in 20 arrests. In all, nine brothels masquerading as massage parlors were shut down and one private residence in Dallas/Plano was raided.
Child Protective Services reports it removed three children from the Plano house, including a 6 month old boy, and two girls ages five and 15. Around two dozen people with ties to the prostitution ring were arrested. Eleven were charged in a federal indictment.
Two of those federally charged with leadership roles within the criminal organization pleaded guilty this week in a federal courtroom in Plano.
Yu Lin Chang, 38, wore shackles and an ill-fitting black and white stripped jail jumpsuit as she stood before the judge. Chang, through an interpreter, pleaded guilty for her part as a madame overseeing brothels in Plano, Dallas and Hurst. Chang’s lawyer was able to negotiate a plea deal that will only result in Chang being sentenced to up to 48-months in prison.
Court records indicate that Chang was often openly referred to as Quyen Thuc Ha’s wife – though in reality Ha was married to someone else.
Ha, 55, of Richardson owned the brothels and actively assisted Chang.
Ha pleaded guilty to two federal charges of bribery. Ha faces up to 10-years in prison at sentencing.
According to court documents, Ha paid police officers thousands of dollars thinking he was buying protection and leniency. In reality, the law enforcement officers were working with federal investigators to make a case against the criminal organization.
The brothels mostly utilized sites like Backpage.com to both advertise their prostitution services and recruit women into prostitution.
Court paperwork reveals that the brothels transported women from California, Nevada and Georgia to work for up to a month in the Texas brothels. Those who made the most money for the criminal organization were kept longer.
Documents also reveal that the prostitution ring used homes and apartment in Oklahoma City and St. Louis to conduct business.
Seven others involved in the brothels have accepted plea deals with federal prosecutors: Jia-Her Hwang, 66; Prapatson Verhotz, 48; Kim Sey Lau, 57; Yu Qian, 46; Tin Min Lo, 52; Michael Gene Jones, 65; and Li Meng Shank, 43.
Verhotz, Qian and Shank all worked as prostitutes. They were each sentenced to 12 months and one day in federal prison. Verhotz was also fined $2,000 while Qian was fined $40,000, according to court documents.
Sentencing hearings for the other four are pending.
Federal charges are pending for Lai Iong Chiu and Xia Xu. Several others faced misdemeanor charges in state district court for prostitution.