Jung Yoon Choi, 56, of Aurora, Colorado, is headed to federal prison for 19 months after admitting she ran a web of cash-heavy massage parlors where prostitution flourished and tax laws were shredded. Sentenced by U.S. District Court Judge Robert E. Blackburn, Choi also faces one year of supervised release for obstructing the IRS, a conviction that caps a years-long scheme to hide over $100,000 in income while pocketing profits from illicit services.
Choi waived indictment and pleaded guilty on January 14, 2016, to a single count of obstructing and impairing the Internal Revenue Service, stemming from her operation of three Denver-area spas: Ivy Spa in Denver, New Image Spa in Parker, and Blue Pine Spa in Douglas County. Between 2009 and 2010, these fronts raked in cash and credit payments under the guise of massage therapy, though investigators found a darker reality—customers paid extra for ‘services’ that crossed into illegal sex acts, in violation of Colorado Revised Statute 18-7-201. Choi knew, turned a blind eye, and profited.
The money flowed, but the taxes did not. Choi failed to file personal income tax returns for 2009 and 2010, deliberately concealing her earnings. At Ivy Spa alone, bank records showed $118,418 in deposits—$106,322 from customer credit card payments. Yet not a dime was reported to the IRS. Instead, Choi used nominees to open bank accounts, laundered transactions under $10,000 to dodge currency reporting rules, and stashed cash in secret locations to bury the trail.
To prop up her empire, Choi paid David Warmack, operator of Sowet.com, to post fake glowing reviews advertising her spas and the women working inside—ads that masked the criminal undercurrent. Warmack was later prosecuted and sentenced to 15 months in prison by Judge Christine M. Arguello for his role in the scheme. The web of deception extended beyond the spas, into the heart of Colorado’s underground economy.
As part of her plea deal, Choi agreed to forfeit $118,575.00 seized by federal agents on December 17, 2010, money directly tied to her unreported business operations. She was also ordered to pay $67,560 in restitution to the IRS—a fraction of what was owed, but a symbolic clawback from a woman who treated tax law like an optional suggestion.
Acting U.S. Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne announced the sentence, underscoring that hiding income—even in the murky world of massage parlors with blurred lines—carries real prison time. Choi’s case isn’t just about unpaid taxes. It’s about a deliberate, calculated defiance of federal law, funded by cash, secrecy, and sex.
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Key Facts
- State: Colorado
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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