A 56-year-old woman who ran three massage parlors in metro Denver that offered extra services including sex for “tips” was sentenced in federal court to 19 months in prison followed by a year of supervised release after she failed to pay taxes for two years.
“You have to pay taxes, regardless of your profession,” Acting U.S. Attorney Bob Troyer said in a prepared statement.
, formerly of Aurora, had previously pleaded guilty for obstructing and impairing the laws of the Internal Revenue Service, Troyer and IRS investigative supervisor Kareem Carter said in a Thursday news release.
As part a plea agreement, Choi forfeited $118,575 that was seized on December 17, 2010. She was also ordered to pay $67,560 in restitution to the IRS.
Choi operated three massage parlors between 2009 and 2010: the Ivy Spa at 2260 S. Quebec Way in Denver; the New Image Spa at 17783 Cottonwood Drive in Parker and the Blue Pine Spa at 6212 East Pine Lane in Douglas County. She did not pay taxes for her businesses, the news release says.
Choi’s employees mostly provided massages, but for a “tip” they engaged in sexual acts with customers, the news release says. Choi was aware of the prostitution, it says.
Choi hoarded cash at various locations and had employees deposit money in various bank accounts to hide her income.
On Dec. 17, 2010, IRS agents seized approximately $118,575 in cash from a locker at a U-Store-It business, the lawsuit says.
The case was investigated by IRS and FBI agents, Los Angeles police officers and deputies from the Arapahoe County Sheriff’s Office. Assistant U.S. Attorney Tim Neff prosecuted the case.
