The owner of a Longmont health spa has pleaded guilty to hiding money from the IRS that she reaped by running a string of hookers.
Yong Gates, age 70, of Houston pled guilty to structuring prostitution proceeds in U.S. District Court in Denver on Tuesday.
Sun Health Spa, 10763 Turner Boulevard, owned by Gates, “generated much of its revenue in the form of currency that originated from acts of prostitution,” according to a United States Attorney’s Office Press Release.
Gates admitted concealing prostitution proceeds totaling $26,050, making deposits of less than $10,000 in a business bank account in order to evade currency reporting requirements.
Gates, who is scheduled to be sentenced on June 9, faces up to 5 years imprisonment, and a fine of up to $250,000.
She has agreed not to contest a civil forfeiture action, that will require her to forfeit certain assets valued at no more than $125,000, as well as seized assets, including: $550 in currency; $4,069.33 seized in December 2005 from a bank account in the name of Sun Health Spa, $2,050 in currency seized from Sun Health Spa on December 15, 2005; and $6,000 in currency seized from Gate’s residence.
Tom McGhee: (303)954-1671 or tmcghee@denverpost.com
