Guilty Pleas in Sedona Tanning Spa Case

Michael J. Moore, United States Attorney for the Middle District of Georgia, announced pleas of guilty today by four defendants in connection with prostitution activities, to-wit: Hyeon Chae of Atlanta, Georgia, age 45, to single counts of conspiracy to promote prostitution and conspiracy to commit money laundering; Kye Wol Dyreson, of Kansas, age 72, to one count of use of an interstate facility to promote, manage, and carry on prostitution; and Jin Noh, of Florida, age 50, along with Ki Un Jordan, of Atlanta, Georgia, age 51, to one count each of misprision of a felony. The pleas were entered before the Honorable Marc Treadwell, United States District Court Judge, in Macon, Georgia.

As part of their pleas of guilty, the defendants admitted that the establishment known as Sedona Tanning Salon, formerly known as Soft Hands Massage, located at 1922 Riverside Drive, Macon, Georgia, operated as a prostitution business. Defendants admitted that during the course of the conspiracy, the business always operated solely as a place of prostitution and that none of the women working there were ever licensed masseuses.

According to court documents, the manager, Ms. Dyreson, would greet customers and ensure one of the female prostitutes would provide prostitution services. Ms. Dyreson also controlled all the cash received in the establishment, ensuring that such money was deposited in the bank accounts of the owner, Ms. Chae. The services provided by the prostitutes covered a wide range of activities and payment for same could be by cash or credit card.

The business would receive a “house fee," which was anywhere from $40 to $60 per customer, which went directly to the owner, Ms. Chae. In addition to the house fee, there was a weekly fee that each female had to pay to Ms. Chae, which covered food for the week and a daily tip for the manager, Ms. Dyreson. The defendants used several bank accounts to launder the money from the prostitution activities. During the course of the investigation, the business laundered more than $700,000.

Ms. Chae and Ms. Dyreson each face a maximum sentence of five years’ imprisonment on the prostitution charges. Ms. Chae faces up to an additional 20 years’ imprisonment on the money laundering count. Ms. Jordan and Ms. Noh each face a maximum sentence of three years’ imprisonment. The court scheduled sentencing in the case for May 15, 2014.

“Prostitution is a crime which dehumanizes both of the parties involved. The prostitutes are victimized as they literally sell their bodies and souls for the profit of others. The prosecution of this form ofhuman trafficking is a priority of my office and of the United States Department of Justice,” said Michael J. Moore, United States Attorney for the Middle District of Georgia.

“We will continue to unite with our law enforcement partners at the local, county, state and federal levels and utilize every tool available to us to target those who conspire with each other to victimize members of our community for their own personal gain,” stated Special Agent in Charge, Veronica F. Hyman-Pillot, IRS-Criminal Investigation.

“In partnership with the Bibb County Sheriffs Office, the FBI, and the IRS, HSI identified criminals conducting various unlawful activities under the disguise of a legitimate business,” said Brock. D. Nicholson, special agent in charge of HSI Atlanta, who oversees the agency’s investigations in Georgia and the Carolinas. “The defendants brazenly exploited their 'masseuses' to operate an illegal house of prostitution in Macon and thanks to this collaborative investigation and great work by the U.S. Attorney’s Office, that illegitimate business has now been shut down.”

The case was investigated by the Bibb County Sheriffs Office Special Investigations Unit, the Federal Bureau of Investigation, Homeland Security Investigations, and the Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Verda Colvin is handling the prosecution for the Government.

For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.