Man Who Operated Prostitution Business In Vegas Pleads Guilty To Federal Conspiracy And Money Laundering Charge
Las Vegas, Nev. – Louis H. Young, who operated a prostitution business in Las Vegas and laundered the monies he earned from the enterprise, pleaded guilty today in U.S. District in Las Vegas, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Young pleaded guilty to Conspiracy to Defraud the IRS and Money Laundering, and is scheduled to be sentenced on February 23, 2006. Co-defendant Nancy A. Adams pleaded guilty to Conspiracy to Defraud the IRS on October 6, 2006, and is scheduled to be sentenced on January 19, 2006. They face up to five years in prison and a $250,000 fine on the Conspiracy charge. Young also faces up to 20 years in prison and a $500,000 fine on the Money Laundering charge.
According to the facts contained in the plea agreement, Young and Adams traveled from Minnesota to Nevada for the purpose of engaging in the prostitution business. Young worked as a pimp, and Adams worked as a prostitute in Las Vegas. They married in Clark County on November 30, 2001, after Las Vegas Metropolitan Police Department Officers executed a search warrant at their home in Henderson, Nevada.
Young, through his signed plea agreement, admitted that from approximately January 1, 1999, to April 15, 2002, he and Adams conspired to impede and obstruct the IRS in the computation and collection of their federal income tax. Young admitted that he and Adams owned and operated L & N House of Food, a fast food restaurant in Henderson, Nevada, from January 2000 until July 2002, in order to invest and conceal the income they earned from the prostitution business. In addition to using the business to conceal the income, they purchased other assets of value with cash and money orders, used nominee bank accounts, and used nominees to hold legal title to assets. Young made false statements to his bookkeeper/tax return preparer when he informed the bookkeeper that they had no other sources of income for the years 2000 or 2001, other than from L & N House of Food restaurant. Young and Adams also failed to file federal income tax returns for the years 1999, 2000, and 2001.
The case is being investigated by Special Agents with IRS Criminal Investigation and prosecuted by DOJ Tax Division Trial Attorneys Thomas W. Flynn and Jed Dwyer.