A Torrance man, James Lee, 70, has been sentenced in a Boston federal court for his role in orchestrating an interstate network of high-end brothels and defrauding the government of over $580,000 in COVID-19 relief funds. According to a Justice Department release, he has been given 27 months in prison and will be under supervised release for three years post-incarceration.
Lee's plea of guilty to counts including conspiracy to engage in prostitution, money laundering, and wire fraud came in February 2025 after his arrest in November 2023 alongside co-defendants Han Lee and Junmyung Lee. As reported yesterday, managing several luxurious apartments used as brothels, James Lee was the legal tenant for these properties, operating them under both his own and fraudulent identities across Boston and Eastern Virginia. Scheming to launder the illicit proceeds, the trio made frequent deposits and peer-to-peer transfers, evading detection by purchasing money orders below reportable thresholds.
Further entangling in deception, Lee exploited the Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) by submitting false information and documents. As detailed by the U.S. Attorney's Office in Boston, Lee funneled the ill-gotten funds through bank accounts under third-party identities and non-existent businesses. These fraudulent activities stretched from March 2020 through September 2021, culminating in the capture of significant COVID-19 relief funds.
Accompanying Lee's conviction are those of his co-defendants, with Han Lee receiving a four-year sentence in March, followed by Junmyung Lee's one-year incarceration handed down in April, creating a clear message that the judicial system will not tolerate such egregious violations of trust and law. As part of their sentences, hefty financial restitutions and forfeitures have been ordered, specifically a forfeiture of $5,418,572 from Han Lee and $200,000 from Junmyung Lee.
The collaborative effort in cracking down on this network included Homeland Security Investigations, Cambridge Police, and other agencies, with assistance from multiple judicial districts. Concerned members of the community are encouraged to reach out to [email protected] with any further information. This case was prosecuted by Assistant U.S. Attorneys from both the Criminal Division and the Asset Recovery Unit, as indicated by United States Attorney Leah B. Foley's office.
