United States Attorney
Northern District of Texas

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

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

Local Woman Pleads Guilty to Federal Charges of
Harboring Korean Women to Work in her Sexually-Oriented Businesses

United States Attorney Richard B. Roper announced that Mi Na Malcolm, a/k/a “Sora,” pled guilty today before the Honorable A. Joe Fish, United States Chief District Judge, to three felony counts and one forfeiture allegation, as charged in a superseding indictment returned by a federal grand jury in Dallas in October 2005. Malcolm has been in custody since her arrest in August 2005 when officers from the Dallas Police Department and U.S. Immigration and Customs Enforcement (ICE) agents executed several search warrants at sexually-oriented businesses in Dallas.

Malcolm, age 38, pled guilty to one count of conspiracy to hold or harbor illegal aliens for purposes of prostitution, one count of harboring illegal aliens for commercial advantage and private financial gain, and bulk cash smuggling. Malcolm also pled true to the forfeiture allegation which will require her to forfeit thousands of dollars in property and cash to the U.S. Government. She faces a maximum statutory sentence of 20 years imprisonment and a $750,000 fine. Sentencing is set for May 30, 2006.

U.S. Attorney Roper said, “Human trafficking is a brutal crime and an assault on human dignity. It victimizes society’s most vulnerable individuals - frightened runaways and illegal immigrants who become trapped in a cycle of violence, prostitution and forced labor.” Roper continued, “This case should serve as a warning to all who would traffic in and harbor illegal aliens that we will find them and make them pay the price.”

John Chakwin, Special Agent in Charge of the Dallas Office of U.S. Immigration and Customs Enforcement said, "These criminal human trafficking organizations imprison and exploit aliens who are at their most vulnerable. ICE is continuing to dismantle these criminal organizations. Today's guilty plea represents a huge investigative effort between ICE and the Dallas Police Department."

In documents filed in Court, Malcolm admitted that from November 2004 though mid-August 2005, she and others conspired to hold, or attempt to hold, illegal aliens for the purpose of prostitution. She paid to other conspirators the smuggling debts of several Korean women who had been smuggled into the United States, or who had become indebted for their transportation into the United States, for prostitution. Then she had the women work at one of her three sexually-oriented businesses in Dallas, including the Ruby Spa, the Venetian Body Work and the Palm Tree Relaxation, to have them pay off their debt and for her own financial benefit.

Malcolm admitted that she housed a number of aliens in the same places where they worked in her sexually oriented businesses; monitored their movements in person or through an escort and via video surveillance; and otherwise attempted to control their movements. She directed the women to work as prostitutes for six to seven days a week and many were required to be available for prostitution 24 hours per day.

Malcolm maintained records of many of the women’s earnings and payment of their debt. On multiple occasions Malcolm warned the women that they were not free to leave unless and until they had paid off their smuggling debt, as well as debts that she claimed they owed for rent and food.

With respect to the bulk cash smuggling charge, Malcolm admitted placing a box containing $60,000 in U.S. currency in the mail on April 25, 2005, addressed to her father in Korea. Malcolm filled out the required Postal Service Form 2976-A for the box declaring that the contents were “snacks and cookies.” Malcolm admitted she knew she had a legal duty to file a report of the amount of the currency transported and knowingly failed to do so, with the intent to violate the law.

Malcolm agreed to criminally forfeit a 2006 BMW 525i; a 2004 Lexus LS430; $218,906.99 in U.S. currency; 6,384 new condoms; 117 tubes of surgical lubricant; and assorted computer and electronic equipment, admitting the property was either proceeds from or used or intended to be used in the commission of her offenses.

U.S. Attorney Roper praised the investigative efforts of U.S. Immigration and Customs Enforcement and the Dallas Police Department. The case is being prosecuted by Assistant United States Attorneys Sarah R. Saldaña and John DeLaGarza.

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