February 15th, 2008
Sentencing of Ralph Lunati, Owner of Adult Entertainment Clubs
Memphis, TN - Ralph Lunati, the past owner of adult entertainment establishments throughout the country, was sentenced to 18 months today following enforcement actions involving two Memphis adult entertainment clubs, Platinum Plus and Tunica Caberet announced David Kustoff, United States Attorney for the Western District of Tennessee, William L. Gibbons, District Attorney General for the 30th Judicial District of Tennessee, Larry Godwin, Director of Police Services for the City of Memphis, My Harrison, Special Agent in Charge of the FBI’s Memphis Division, Hubbard Burgess, Supervisory Special Agent, Internal Revenue Service Criminal Investigation, and David G. Jolley, United States Marshal for the Western District of Tennessee.
● Lunati pled guilty to conspiracy to facilitate the carrying on of an unlawful activity, specifically a business enterprise involving prostitution and promoting prostitution, in violation of Tennessee Code Annotated Sections 39-13-512 and 39-13-515, and thereafter did perform and attempt to perform acts to facilitate the carrying on of said unlawful activity; in violation of Title 18, United States Code, Sections 1952 and 371.
● The Information charged that dancers performing at Platinum Plus and Tunica Cabaret engaged in sexual activity as a business by conducting live sex shows, performing oral sex (cunnilingus) on one another and engaging in other acts of prostitution, all in exchange for money from club patrons.
● Through the use of facilities in interstate commerce, Ralph Lunati and other unnamed co-conspirators promoted and facilitated the promotion of the prostitution activities outlined above within Platinum Plus and Tunica Caberet.
● Upon conviction of the offense alleged in Count One of this Information, Ralph Lunati forfeited to the United States pursuant to 18 U.S.C. §§ 981(a)(1)(C) and § 982(b), 21 U.S.C. § 853(p) and 28 U.S.C. § 2461(c), any property constituting or derived from proceeds obtained directly or indirectly as a result of the said violation, including but not limited to the following:1. Two Hundred Seven Thousand Four Hundred Twenty-Three Dollars, Eighty-Three Cents ($207,423.83) in U.S. Currency seized by the United States from the premises of Platinum Plus on or about December 9, 2006.
2. Nineteen Thousand Two Hundred Ninety-Seven Dollars, Ninety-Two Cents ($19,297.92) in U.S. Currency seized by the United States from the premises of Tunica Cabaret on or about December 9, 2006.3. Platinum Plus, or those Parcels of Real Property Located at 2514 and 2518 Mt. Moriah Road, Memphis, Tennessee, with All Appurtenances and Improvements Thereon
4. Any interest Lunati has in Tunica Caberet, or that Parcel of Real Property Located at 5599 Highway 61 South, Memphis, Tennessee, with All Appurtenances and Improvements Thereon
5. Or substitute assets if any of the above-described forfeitable property, as a result of any act or omission of the defendant:
a. cannot be located upon the exercise of due diligence;
b. has been transferred or sold to, or deposited with, a third party;
c. has been placed beyond the jurisdiction of the court;
d. has been substantially diminished in value; or
e. has been commingled with other property which cannot be divided without difficulty;
This sentencing was the result of a two year Memphis Police Department undercover operation, referred to as operation "Last Call". Operation Last Call is another example of federal and state law enforcement resources are being used in combination to achieve concrete and important results for this community. Both Platinum Plus and Tunica Caberet have been padlocked and in the custody of the U.S. Marshals Service since the execution of federal and state raids in December of 2006. Detailed allegations concerning this investigation are set forth in the affidavits supporting the federal forfeiture complaints and in the state court nuisance petitions.
As alleged in the forfeiture affidavits, the Memphis Police Department used several undercover officers to make numerous undercover narcotics purchases on the premises of Platinum Plus and Tunica Caberet. A significant number of these purchases were made during business hours from dancers and other employees of these clubs. The narcotics sales alleged in the affidavits include sales of cocaine, crack cocaine, ecstacy and methamphetamine. The nuisance petitions concerning both clubs also allege that live-sex shows and prostitution occurred at the clubs.
The United States wants to thank all the officers, agents and attorneys who worked on this operation, with special consideration to undercover Anthony Godwin and Mark Jordan. This was a very long and hard operation, and both officers made considerable sacrifices.
● Petitions for abatement of nuisances were filed in Shelby County General Sessions Court against:
(1) Tunica Caberet, Jason Youngblood (alleged in the petition to be the owner of Tunica Caberet) and Ralph Lunati (alleged to be a part owner of Tunica Caberet); and
(2) Platinum Plus and Ralph Lunati (alleged in the petition to be the owner of Platinum Plus).
● There have also been approximately a dozen convictions in Federal Court resulting from this investigation, and over 58 indictments in State Court, which also resulted in numerous convictions. The charges ranged from the use of interstate commerce facilities in aid racketeering activity to narcotics trafficking and prostitution.
The federal criminal and civil proceedings were handled by Assistant United States Attorneys Scott Leary, Fred Godwin and Chris Cotten, with the Office of the United States Attorney for the Western District of Tennessee. The state criminal and civil proceedings were handled by Assistant District Attorneys General John Campbell, Paul Hagerman and Ray Lepone. In addition to the Memphis Police Department, the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation and the U.S. Marshal’s Service participated in the investigation and the December 9, 2006, enforcement operations.
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