Brothel operators facing prison

A husband and wife will serve time in a federal prison for operating illegal brothels in Las Vegas that used illegal immigrants as prostitutes.

Jia Hui Keyes, 43, and her husband, Christopher Smith, 35, were indicted in December 2007 following a two-year investigation called Operation Doll House.

"There was no evidence of violence, coercion or subjugation of women," said Keyes' lawyer, Robert Draskovich Jr. "The women in the brothels were there because they wanted to be."

Assistant U.S. Attorney Eric Johnson said the defendants admitted operating brothels that primarily used Asian women who had immigrated illegally to the United States. The prosecutor argued that the prostitutes' illegal status prevented them from working elsewhere and made them vulnerable.

U.S. District Judge Kent Dawson on Wednesday sentenced Keyes, the owner and primary operator of the brothels, to 18 months in prison.

Draskovich estimated that his client cut at least three years off her sentence by negotiating a guilty plea. She pleaded guilty in February to tax evasion and conspiracy to operate a brothel involving the movement of women from other states.

"While it was illegal in this county, one county over it would not have been," said Draskovich, who asked the judge to give his client probation.

Dawson sentenced Smith to 37 months in prison. The defendant pleaded guilty in February to possession of ecstasy with the intent to distribute the drug, as well as conspiracy to operate a brothel involving the movement of women from other states.

Smith's attorney, Kirk Kennedy, could not be reached for comment.

Draskovich said Smith received a longer sentence than his wife because of the drug charge and his prior criminal record. The lawyer said Keyes had no prior record.

Dawson ordered Keyes to pay about $92,000 in restitution for back taxes. She and her husband both were ordered to forfeit about $826,000.

Three properties used in the brothel operation and purchased with brothel proceeds, as well as about $60,000 in cash, were seized to satisfy part of the forfeiture.

Keyes and Smith were married in 2006. Draskovich said Dawson allowed the couple, who live in Las Vegas, to remain free until mid-December, when they must surrender to go to prison.

According to a statement from the U.S. attorney's office in Las Vegas, Keyes and Smith operated brothels in the Las Vegas area at various locations between about 2004 and 2006.

Prostitutes typically worked 10 to 15 days at one brothel before being circulated to a new brothel.

Three of the brothels were at 3755 Arville St., 4008 Calle Mirador and 3474 Eldon St.

Initially, some law enforcement officials said there was evidence of human trafficking, but federal authorities did not pursue charges along those lines, saying there wasn't evidence of coercion.

A Salvation Army social worker who helped the women said last year some of them returned to their home countries.

In 2004, Keyes received about $333,000 in income from operating the brothels.

She attempted to conceal the income from the Internal Revenue Service by frequently conducting transactions in cash, and she didn't file an individual income tax return for 2004.

The FBI, the IRS Criminal Investigation unit and Las Vegas police investigated the case.

"IRS Criminal Investigation plays a unique role in federal law enforcement's effort in that we target the profit and financial gains of individuals operating illegal businesses," according to a statement from Jeanne Killoran, acting special agent in charge of the Las Vegas field office.

"IRS-CI follows the money trail to financially disrupt and dismantle significant organizations operating outside the law."

Contact reporter Carri Geer Thevenot at cgeer@reviewjournal.com or 702-380-8135.