United States Attorney
Northern District of Texas

1100 Commerce St., 3rd Fl.
Dallas, Texas 75242-1699

Telephone (214) 659-8600
Fax (214) 767-0978

CLUB OWNER PLEADS GUILTY
TO CONSPIRACY TO PROVIDE OR OBTAIN FORCED LABOR

Defendant Admits Requiring Korean Women
to Work at His Club to Pay Off Smuggling Debts

Wife Admits Employing Illegal Aliens

A Korean businessman who required Korean women to work at his club in Coppell, Texas to pay off smuggling debts he had paid for them, pleaded guilty today in federal court in Dallas, announced United States Attorney Richard B. Roper. In addition, the Korean businessman’s wife pled guilty to a related charge.

"This 21st century form of involuntary servitude is most insidious,” said U.S. Attorney Roper. Roper continued, “We, in law enforcement, will continue to aggressively pursue those who exploit and prey on vulnerable immigrants who come to our shores seeking a better life."

Sung Bum Chang, and his wife Hyang Kyung Chang, both of Coppell, Texas, each pled guilty this morning, before the Honorable Sam A. Lindsay, United States District Judge. Sung Bum Chang pled guilty to one count of conspiracy to provide or obtain forced labor and one count of forced labor. He faces a maximum statutory sentence of 25 years imprisonment, a $500,000 fine and restitution. In addition, he has agreed to forfeit one 2003 Mercedes, one 2004 Lexus, $5,560 in United States currency, computers and assorted electronic equipment. Hyang Kyung Chang pled guilty to one count of employing unauthorized aliens and aiding and abetting. She faces a maximum statutory sentence of six months imprisonment and restitution. She has agreed to pay a $21,000 fine. Judge Lindsay set their sentencing date for September 19, 2006.

Sung Bum Chang admitted that from December 2004 to April 26, 2005, he conspired with others to willfully hold club workers in a condition of forced labor. Sung Bum Chang is the owner of “Club Wa,” a karaoke bar located on Walnut Hill Lane in Dallas and is also the owner of a residence located on Greenway Drive in Coppell. Sung Bum Chang, in collaboration with others, recruited and brought young Korean women from South Korea to Dallas to obtain and maintain their labor and services as club hostesses at “Club Wa.” Sung Bum Chang paid to other conspirators the smuggling debts of several Korean women who had been smuggled into the United States and thereafter these women, who were in the country illegally, lived at the Chang residence and were required to work at “Club Wa.”

Hyang Kyung Chang, along with her husband and others, worked at “Club Wa” where women, all South Korean nationals, were hired, recruited or referred for a fee to obtain and maintain their labor and services as hostesses at “Club Wa.” Hyang Kyung Chang supervised these Korean national women and kept track of their earnings and expenses, all the while knowing the women were in the country illegally and were unauthorized aliens. Hyang Kyung Chang admitted she knowingly and willfully associated with this criminal venture and tried to make that venture successful in order to enjoy the benefits from it.

According to documents filed in Court, Sung Bum Chang admitted he used physical restraint, such as restrictions on the women’s ability to come and go from the residence and business through a video surveillance system and the placement, at times, of other employees at the exits, and various other means, to compel them to pay off their debt. He directed the women to work as club hostesses for six to seven days a week, requiring the women to sit with customers and otherwise entertain them so that the customers would buy more liquor from “Club Wa.” He maintained records regarding many of the women’s earnings and the payment of their debt and charged the women varying amounts for food and lodging, those amounts being added to their overall debt to him.

Sung Bum Chang did several things to force the young Korean women to keep working for him. He held the women’s passports, executed contracts with them that required at least six months of labor or services, restricted the women’s movements and social contact, monitored their movements with surveillance cameras and fined them for violating the rules of behavior. At one point, one of the young women jumped from a second story window at the Chang residence in order to escape.

On April 26, 2005, law enforcement executed search warrants on Chang’s residence and business. Chang was arrested and six undocumented Korean women were found in his residence. Chang was released on bond and the undocumented women have either been returned to their homeland or remain in the United States seeking immigration status.

U.S. Attorney Roper praised U.S. Immigration and Customs Enforcement and the Coppell and Dallas Police Departments for their investigative efforts. The case is being prosecuted by Assistant United States Attorney Sarah R. Saldaña

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