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July 7, 2016San Francisco, CA, United StatesFinancial Crimes

Bay Area resident pleads guilty to operating interstate prostitution scheme

Sex workers recruited from Asian countries

SAN FRANCISCO – A Bay Area man pleaded guilty in federal court Wednesday to charges stemming from his role in an international prostitution enterprise, following a probe by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the San Mateo Police Department.

Allen Fong, 59, of San Mateo, is one of 10 defendants named in a far-reaching indictment filed Oct. 16, 2014. Fong pleaded guilty to all 32 counts charged in the indictment after acknowledging his role in an enterprise that recruited Asian women and facilitated their travel into the U.S. to work as prostitutes in brothels located in the Bay Area. 

According to court documents, from at least August 2006 through July 2014, Fong was involved in the day-to-day operations of the ongoing racketeering enterprise. His activities included renting apartments for use as brothels; transferring proceeds from the United States to Singapore; arranging for telecommunications services for advertising; and otherwise facilitating appointments for sexual activity between prostitutes and their customers. Fong also admitted meeting a co-conspirator at the San Francisco International Airport who traveled from Singapore. After meeting the woman, Fong transported her to a brothel linked to the scheme, where she was housed and worked as a prostitute. 

"This defendant was involved in a concerted scheme to recruit women from abroad to engage in prostitution for his personal gain. What's so troubling about this kind of criminal activity is, more often than not, it involves subjecting those being exploited to unspeakable conditions," said Ryan L. Spradlin, special agent in charge of HSI San Francisco. "HSI and our partners will continue to prioritize investigations involving criminals engaged in organized illegal sex crimes."

Fong's sentencing is set for Oct. 25. The counts charged in the indictment carry maximum penalties ranging from five to 20 years.

Assistant U.S. Attorney Deborah R. Douglas is prosecuting the case.

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