Ringleader Of Prostitution Racketeering Enterprise Sentenced To 46 Months In Prison And $5,269,698 In Forfeiture

SAN FRANCISCO – Allen Fong was sentenced to 46 months in prison and was ordered to pay a $5,269,698 forfeiture money judgment for his role in operating an international prostitution racketeering enterprise, announced United States Attorney Brian J. Stretch and Homeland Security Investigations ("HSI") Special Agent in Charge Ryan Spradlin. 
 
Fong, 60, of San Mateo, pleaded guilty on July 5, 2016, to numerous crimes, including racketeering, in connection with a broad-ranging indictment filed in federal court on October 16, 2014.  In pleading guilty to all 32 counts in the indictment, Allen Fong admitted that from August 2006 through July 2014, he was involved in the day-to-day operations of an ongoing racketeering enterprise that recruited women from overseas to work in brothels in Bay Area cities, including Foster City, Cupertino, San Bruno, San Mateo, and Santa Clara.  Fong’s activities included renting apartments for use as brothels, paying the rent, telephone and utility services for operating the enterprise, arranging for telecommunications services for prostitution advertisements and appointments for sexual activity between prostitutes and their customers, and transferring proceeds in amounts of thousands of dollars from the United States to Singapore. Fong also admitted he met a co-conspirator at the San Francisco International Airport traveling from Singapore to the United States and drove her to an enterprise brothel where she was housed and worked as a prostitute.

Court papers described the operation of the enterprise, Fong’s role as the leader of that enterprise, and Fong’s activities such as providing logistical support for the brothels, determining how much the prostitutes could charge customers for sexual services, determining and collecting the enterprise's share of the prostitutes' earnings, and deciding additional policy matters.  Court papers also documented Fong’s own words in recorded conversations such as his comment that “tons” of “girls” from Asian countries such as Singapore, Taiwan, and Hong Kong would be arriving “next month.”
 
In all, Fong pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, in violation of 18 U.S.C. § l962(d); one count of conspiracy to use interstate and foreign commerce to promote prostitution in aid of a racketeering enterprise, in violation of 18 U.S.C. §§ 371 and 1952(a)(3); eleven counts of use of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   interstate commerce to promote prostitution in aid of a racketeering enterprise, in violation of 18 U.S.C. §§ 1952(a)(3) and 2; one count of conspiracy to launder monetary instruments, in violation of 18 U.S.C. §§ 1956(h) and 1956(a)(1)(A)(i); nine counts of substantive money laundering, in violation of 18 U.S.C. §§ 1956(a)(1)(A)(i) and 2; one count of conspiracy to transport funds from the United States to a foreign country to promote unlawful activity, in violation of 18 U.S.C. §§ 1956(h) & 1956(a)(2)(A); seven counts of transporting funds from the United States to a foreign country to promote unlawful activity, in violation of 18 U.S.C. §§ 1956(a)(2)(A) and 2; and one count of conspiracy to transport an individual in interstate and foreign commerce for prostitution and importation of alien for immoral purpose, in violation of 18 U.S.C. §§ 371 & 2421, and 8 U.S.C. § 1328.
 
Fong’s prison term includes sentencing enhancements for his leadership role in the Enterprise and the number of prostitute victims involved.  The forfeiture money judgment of $5,269,698 represents proceeds generated by the conspiracy.  Judge Seeborg also sentenced Fong to a $12,500 fine, $3,200 in special assessments, and a three-year period of supervised release with conditions that include the supervising officer’s access to Fong’s financial information.  Fong was ordered to self-surrender to the Bureau of Prisons to begin serving his prison term on April 18, 2017.
 
Assistant U.S. Attorney Deborah R. Douglas is prosecuting the case assisted by Christine Tian and Lance Libatique.  Assistant United States Attorney David Countryman assisted with forfeiture matters. The prosecution results from a joint investigation by the Department of Homeland Security, Homeland Security Investigations San Francisco Field Office, and the San Mateo Police Department.