Local Nail Salon Owners Arrested and Charged with Forced Labor and Debt Bondage

Assistant U. S. Attorney Christopher P. Tenorio (619) 546-8413    

NEWS RELEASE SUMMARY – December 12, 2019

SAN DIEGO – Cindy Mydung Luu and Jason Luu, siblings who own two Rancho Bernardo nail salons, were arraigned in federal court late today following their indictment by a federal grand jury on charges they were part of a forced labor conspiracy.

The brother and sister were arrested this morning at their home in Tierrasanta by members of the San Diego Human Trafficking Task Force. According to the indictment, they lured the victim – their second cousin - from Vietnam to San Diego to work long hours in their salons, Eden Nails Lounge & Spa (“Eden”) and Majestic Nail Salon (“Majestic).

The U.S. Department of Labor’s Wage and Hour Division also investigated the defendants’ nail salon for minimum wage and overtime violations, according to Wage and Hour District Director Rodolfo Cortez.

“We are very grateful that this matter came to the attention of the Human Trafficking Task Force upon the suggestion and support of two caring and vigilant nail salon customers who had befriended the victim,” said U.S. Attorney Robert Brewer. “With their assistance, Task Force officers were able to assist the victim immediately and to investigate these alleged crimes.”

“There’s never an excuse for coercing someone into forced labor,” said California Attorney General Xavier Becerra on behalf of the San Diego Human Trafficking Task Force. “We are all proud of the work done by our team and task force partners that led to this indictment.”

The indictment alleges the defendants recruited the victim to travel to San Diego from Vietnam in 2014 on a student visa. Beginning in September 2014, the victim was held at a home owned by the defendants and began working at Majestic. She worked at Majestic until February 2018, and then at Eden until June 2019.

Although the victim initially attended Grossmont College, she left in the spring of 2016 and was married to Jason Luu, her second-cousin, who petitioned for a visa for the victim as his spouse. Jason Luu is also charged with Visa Fraud for falsely swearing on the visa application in 2015 that the victim had lived with him as his spouse, and that she intended to continue living with him.  As the indictment alleges, the victim was actually residing at a separate residence owned by the defendants.

To maintain the victim’s labor, the defendants allegedly engaged in a scheme intended to cause the victim to believe she would suffer financial and reputational harm if she did not continue working. The defendants are also charged with benefitting financially from their forced labor and peonage venture, which required that the victim’s work proceeds be used to pay outstanding debts, both imaginary and real.

The United States is also seeking the forfeiture of property used to facilitate the crimes, and property involved in the offense, plus at least $300,000.

The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

The defendants were arraigned on the indictment today before U.S. Magistrate Judge Karen S. Crawford. Bond was set at $30,000 secured by real property for each defendant.

They are scheduled to appear before U.S. District Court Judge Jeffrey T. Miller on January 17, 2020 at 11 a.m. for a motion hearing and trial setting.

DEFENDANTS                                            Case Number 19CR4970-JM                                  

Cindy Mydung Luu                                        Age: 53                                   San Diego, CA

Jason Luu                                                        Age: 44                                   San Diego, CA

SUMMARY OF CHARGES

Forced Labor Conspiracy – Title 18, U.S.C., Section 1594

Maximum penalty: Twenty years in prison and $500,000 fine

Peonage – Title 18, U.S.C., Section 1581

Maximum penalty: Twenty years in prison and $500,000 fine

Forced Labor – Title 18, U.S.C., Section 1589

Maximum penalty: Twenty years in prison and $500,000 fine

Document Servitude – Title 18, U.S.C., Section 1592

Maximum penalty: Five years in prison and $500,000 fine

Benefitting Financially from Peonage – Title 18, U.S.C., Section 1593A

Maximum penalty: Twenty years in prison and $500,000 fine

Visa Fraud/False Swearing in Immigration Matter – Title 18, U.S.C., Section 1546(a)

Maximum penalty: Ten years in prison and $250,000 fine

AGENCIES

Homeland Security Investigations

Internal Revenue Service, Criminal Investigations

San Diego County Sheriff’s Department

U.S. Department of Labor, Wage and Hour Division

This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section.  Formed in 2019, by U.S. Attorney Robert Brewer, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.