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owner of Kansas security company conviction for promoting prostitution and money laundering upheld on appeal
February 21, 2018
owner of Kansas security company conviction for promoting prostitution and money laundering upheld on appeal  
    You would think that the owner of a security company engaged in Security Camera and POS Systems Alarm Monitoring Service, Repair Computer & Networking, Business Sign, also described as a business that monitored alarms, repaired computers, or dealt with business signage, was busy enough that he wouldn't have time to broker deals for massage parlors where the intent was to promote prostitution.  The United States Court of Appeals for the Ninth Circuit described the case this way:
    "Mr. Kay Tee appeals his conviction on three federal criminal counts: (1) attempted coercion and enticement to travel to engage in prostitution, (2) interstate transportation in aid of racketeering enterprises, and (3) money laundering. These counts grew out of Mr. Tee's discussions with a government informant (known as “Lucy”) who had contacted Mr. Tee, ostensibly for help in opening a massage parlor in Wichita, Kansas. The government's trial theory was that Mr. Tee had tried to help Lucy, thinking that she wanted to buy a massage parlor and operate it as a prostitution business. Mr. Tee denied guilt and pressed an affirmative defense of entrapment. The jury rejected the entrapment defense and found guilt on the three counts, leading Mr. Tee to appeal."
    The money laundering conviction was upheld based on Mr. Tee directing "Lucy" to wire $100 to his alarm company business account.  The Court rejected that his explanation for the funds was that he was charging her $100 to pick her up at the airport.  The Court found:
    "We have little reason to question the sufficiency of the evidence on the element of concealment. Mr. Tee directed Jenny to wire transfer the $100 to an account for Alert America, a separate, legitimate computer-security company that Mr. Tee owned. Mr. Tee's invoices for Alert America ...."
    Of course this case had nothing to do with the operation of the alarm business, except that the $100 was deposited into the alarm business bank account.  
    Why do I bother mentioning this case on this forum?  I guess to remind you to keep your eye and mind on your alarm operations and grow your RMR.  That endeavor should make you rich enough.  This fellow should have been spending his time updating his contracts.  
    Those of you interested enough to read the entire case can find it here: UNITED STATES of America, Plaintiff–Appellee, v. Kay TEE, Defendant–Appellant. No. 16-3243 FILED February 6, 2018  United States Court of Appeals, Tenth Circuit.


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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
516 747 6700