Two people associated with an Annandale-based massage parlor have pleaded guilty to transporting women across state lines for the purpose of providing sexual services for a Washington-area clientele that included members of the military, federal contractors, and others with security clearancesm, federal officials said.
Susan Lee Gross, 46, who federal prosecutors said also was known by 11 different aliases, pleaded guilty in federal court Oct. 25 to conspiracy to transport women to engage in prostitution, which carries a maximum penalty of five years in prison, and conspiracy to commit money laundering, which carries a maximum penalty of 20 years.
In a statement of facts filed with her plea agreement, Gross admitted that from February 2011 to May 2012 she was the owner of “Peach Therapy,” a massage parlor located in Annandale that provided sexual services to customers.
Gross admitted customers would pay a “house fee” of $60 to $80, plus tips that ranged from $20 to $400 for various sex acts. Gross kept a portion of the house fee and whatever tips she earned herself, while the workers kept their own tips and received a portion of the house fee.
Gross admitted to laundering the proceeds of the prostitution activities by depositing funds in various bank accounts and a safe deposit box.
According to court documents, many of the customers of the massage parlor were married men whose names and personal information were kept on lists by employees at the massage parlor. The lists were seized by government agents.
Court documents identify many on these lists as “employees of defense contractors, commissioned and non-commissioned officers of the U.S. military, and individuals who held security clearances.”
Court documents also state that most customers paid with cash but that “…to assist married men who paid with credit cards to hide their activities from their wives…” transactions at Peach Therapy would appear instead as “South Blue Bay, Inc.” on customers’ monthly credit card statements
“Gross went to great lengths to facilitate her multi-state prostitution ring; she had women transported to Peach Therapy in Annandale from various areas such as New York and New Jersey, and then she laundered the illicit profits earned by her criminal enterprise to hide her tracks,” John P. Torres, special agent in charge of Homeland Security Investigations in Washington, D.C., said in a statement.
On Wednesday, Jin Seob Oh, 41, of Annandale also pleaded guilty to operating an unlicensed taxi business known as “Royal Taxi” that brought women from other states to perform sexual services for patrons at the massage parlor.
Oh also admitted to depositing thousands of dollars of proceeds from commercial sexual activity into Bank of America accounts, court documents state.
In the documents, Oh admitted that he understood that these bank accounts were used to conceal the unlawful source of the money and to ensure that activity could continue.
Prosecutors said the women who worked at Peach Therapy generally were from South Korea.
Gross induced a number of the women to travel to Virginia from New York and New Jersey, among other places, for the purposes of working as prostitutes at Peach Therapy, court documents state.
As part of her plea agreement, Gross agreed to repay a personal money judgment of $248,409, which represents proceeds derived from the conspiracy to transport women for prostitution.
Gross’ attorney, Bill R. Hicks, declined to comment on the case. No attorney information is yet available for Oh.