Local man charged in prostitution ring
August 4, 2009
A South Lake Tahoe man accused of being involved in a prostitution ring in the Seattle, Wash., area has pleaded guilty to a single count of conspiracy in federal court, according to a plea agreement filed last week.
Donald Kerry Frey pleaded guilty to one count of conspiracy to transport individuals in furtherance of prostitution on July 20, according to the agreement.
Additional charges against Frey, which included money laundering, have been dropped because of the guilty plea, according to the agreement.
Frey faces up to five years in prison, a $250,000 fine, and three years of supervised release following the guilty plea. He could also be sentenced to up to five years of probation under the agreement.
In the document, Frey admitted that between 2004 and Nov. 4, 2008, he, along with several partners, operated brothels under the guise of tanning salons and spas in Kings County, Wash.
In the agreement, Frey admitted he knew women were brought from outside of Washington to work in the brothels and that he regularly traveled to the Northwest to meet partners in the operation, who have also been charged in the case. Frey collected bimonthly payments of $25,000 or more from the businesses and used the money to pay for their operation and his personal expenses, according to the agreement.
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According an indictment filed in November, Frey operated the brothels using straw companies with the names Crown Venture Capitol Inc. and Crown Venture Management Ltd.
During 2007 and 2008 women working at the businesses offered to provide sex acts to undercover officers and informants in exchange for cash, according to the indictment.