Pierce Co. Man Gets 72 Months for Prostitution, Money Laundering

SEATTLE — A Milton, Washington resident has been sentenced to 72 months in federal prison for running a sex trafficking ring and engaging in money laundering and tax fraud.

Chang Young Kim, 59, who owned the Blue Moon Korean bar in Federal Way, was also ordered to pay $112,050 in restitution and over $1.6 million in back taxes and penalties to the IRS. In November 2012, Kim pleaded guilty to conspiracy to transport individuals for prostitution, conspiracy to engage in money laundering, bribery of a public official, and tax evasion.

During his sentencing, U.S. District Judge Ronald B. Leighton blasted Kim, stating, “You were a one-man criminal enterprise . . . [and] the most instrumental of everyone on a host of fronts.”

The investigation revealed that Kim used ‘madam’ Miyoung Roberts to recruit and manage over two dozen Korean women working as ‘bar girls’ at his establishment. He arranged their transportation from Korea and supervised some of their activities. Undercover law enforcement agents discovered that Kim offered $15,000 to a Washington State Liquor Control Board investigator in exchange for advance warnings of inspections.

In another scheme, Kim convinced two clients of his real estate company, Royal Realty, to invest $400,000 into purchasing a motel, only to use the money for personal expenses. He also attempted to evade over $1.6 million in income taxes by failing to report income and hiding assets.

Assistant U.S. Attorney Ye-Ting Woo prosecuted the case. Special Agent in Charge of HSI Seattle, Brad Bench, emphasized the impact on the community, stating, “Kim operated a sex club near homes and schools, degrading the quality of life in the community as well as the women involved.”

The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Internal Revenue Service Criminal Investigation (IRS-CI), the Washington State Liquor Control Board (WSLCB), the Federal Way Police Department, Lakewood Police Department, and the Federal Bureau of Investigation.

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