3 Sentenced In Prostitution, Money Laundering Scheme

JOHNS CREEK, GA -- Three people have been sentenced for their part in conspiring to operate a Doraville-based brothel that lured sex workers to Atlanta from parts of the United States. Xiaohong Huang (also known as Michelle), Chan Kong Chow and Biyun Gong were all sentenced after pleading guilty in July 2017 to conspiring to operate an interstate prostitution ring involving money laundering, U.S. Attorney BJay Pak said.

“Interstate prostitution is a serious crime that exploits women and harms our community,” he added. “Brothels remain a blight in segments of our communities. The prosecution of these defendants, the seizure of significant assets, and the dedication of law enforcement resources in targeting this long-running criminal scheme are a warning for others engaged in this conduct.”

According to prosecutors, Huang operated a brothel at a large apartment complex in Doraville between December 2005 through May of last year. Chow and Gong helped her by managing the day-to-day operations of the business. The defendants enticed women of Asian descent to travel to Georgia from states such as California and New York to work as commercial sex workers at the brothel, prosecutors argued. Huang advertised her business online and by word-of-mouth.

The defendants regularly used cell phones to communicate with women who worked as sex workers at the brothel and with their male clients. The defendants also arranged for the women to travel to the brothel on commercial flights into Atlanta about every 10 days on a rotating basis.

Huang also used Bank of America, Wells Fargo and Metro City Bank checking accounts to deposit proceeds generated from the brothel. She then used that money from the business to pay expenses related to the operation of the brothel. In this way, Huang laundered more than $150,000 in criminally derived proceeds during the conspiracy, the U.S. Attorney's Office added.

Huang, 45, of China, received two years and nine months in federal prison. As part of her sentence, she will have to forfeit a "large" residence in Johns Creek, cash, jewelry and other expensive items, the U.S. Attorney's Office added. Chow, 59, also hailing from China, was given a one year, nine-month federal prison sentence. Gong, 54, also of China, received one year and three months in federal prison.

Once they complete their sentences, they will be transferred to the Department of Homeland Security, Homeland Security Investigations for deportation proceedings. This case was investigated by the Federal Bureau of Investigation with assistance from the Department of Homeland Security. Assistant U.S. Attorneys Richard S. Moultrie, Jr. and Bret R. Hobson prosecuted the case.

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