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Justice News

Department of Justice
U.S. Attorney’s Office
District of Colorado

Thursday, January 24, 2013

Federal Authorities Share Seized Assets With Arapahoe County Sheriff's Office

DENVER – United States Attorney John Walsh and IRS – Criminal Investigation Special Agent in Charge Stephen Boyd presented the Arapahoe County Sheriff’s Office with a check yesterday for  $589,826.12, which represents proceeds forfeited by a criminal defendant who was convicted of operating an interstate prostitution business.  The check was presented to Undersheriff David Walcher during a private ceremony.

The money seized, forfeited and ultimate presented to the Arapahoe County Sheriff’s Office was part of a $1 million seizure that came from an investigation into the prostitution business dealings of Michelle Schramm, aka Uk Chin Schramm, of Aurora, Colorado.  Schramm was indicted, pled guilty, and was sentenced to four months in federal prison.  Part of her plea agreement was the stipulation that she not contest the forfeiture of the money seized by law enforcement.   Schramm was deported to South Korea immediately after serving her prison sentence, and she is not allowed to return to the United States. 

Beginning on December 7, 2005, and continuing through March 17, 2009, the defendant, Michelle Schramm, controlled and operated three businesses in the Denver Metropolitan Area.  The businesses were: Bali Spa, located in Arapahoe County, Malley Spa, located in Northglenn, and Green Garden Spa, also known as Beach Tanning Spa, located in Edgewater.  In the course of running her spas, the she regularly provided prostitution services, provided by a rotating staff of prostitutes.  The prostitutes would provide messages as well as routinely perform sexual acts for customers in exchange for money. 

“The citizens of Arapahoe County and Metro Denver benefit twice thanks to the hard work of the Arapahoe County Sheriff and IRS – Criminal Investigation,” said U.S. Attorney John Walsh.  “The community benefits by the dismantling of an interstate prostitution organization.  They also benefit because that organization’s financial assets were forfeited and shared with the Arapahoe County Sheriff’s Office, for law enforcement use to protect the citizens of Arapahoe County.”

“In cases like this we take away the prize from the crime,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.

“The money received as a result of this effort with our federal partners will benefit public safety at the local level.  We will invest the money in our continued efforts to protect the citizens of Arapahoe County,” said Arapahoe County Undersheriff David Walcher.

The Schramm case was investigated by IRS Criminal Investigation and the Arapahoe County Sheriff’s Office.

Schramm was prosecuted by Assistant U.S. Attorneys Tim Neff and Tonya Andrews.


Updated June 22, 2015