Couple could face 275 years in prison after prostitution bust
Staff report
Two former Salisbury residents who face federal indictments in a prostitution could face jail sentences of 275 years and fines of $13 million.
The 52-count indictment covers a period from 1997 through October 2001, with seven people charged.
On May 25, the federal GrandJury in Charlotte indicted the alleged operators of a prostitution service operating in Mecklenburg County and elsewhere. The indictment was sealed until arrests were made.
Barbara Lynn Kahn, also known as "Essa," 37, of Salisbury, is in federal custody and is scheduled for arraignment in U.S. Western District Court in Charlotte on June 14.
Saleemudeen Kahn, also known as "Sal" and "Alex," 37, has been indicted but not arrested.
The federal indictments list the Kahns' address as 3827 Main St., Salisbury. However, a telecommunicator in the county's 911 center said no structure exists at that address.
The Rowan Sheriff's Department issued a press release Wednesday saying the Sheriff's Department launched an investigation at 3820 S. Main St. after receiving complaints.
Sheriff George Wilhelm said Thursday that Detective Eddie Kluttz worked the case two years ago in conjunction with the Charlotte-Mecklenburg Police. Information and evidence gained in a search of the South Main Street house in 2001 were turned over to federal authorities.
Wilhelm said deputies carried out another search of the house earlier this week.
A press release from the U.S. Attorney Western District identifies Rachel Massachi, 33, also known as "Toni" and "Roxanne," address unknown, as the third person, along with the Khans, charged in 51 counts of the federal indictment.
Others indicted include: Bobbie Ferguson, 27, also known as "Bambi," 3001 Morrison St., Charlotte; Krista Deputy, 30, of 807 West Catawba Ave., Mount Holly; Darren Williams, 37, of 407 Huntmeadow Drive, Charlotte; and Tyler Grady, 32, also known as "Armond," of 16400 NE 17th Ave., N. Miami Beach, Fla.
All but Massachi and Saleemudeen Kahn have been arrested.
The announcement came from U.S. Attorney Gretchen C.F. Shappert, Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation Division Gina Fisher, and Chief Darrel Stephens of the Charlotte-Mecklenburg Police Department.
Count 1 of the indictment alleges that between 1997 and October 2001, Massachi and the six other defendants conspired to coerce individuals to travel in interstate commerce and use the mail and facilities in interstate commerce to distribute the proceeds of unlawful activity for the purpose of engaging in prostitution, according to the press release.
A total of 50 dates and amounts are specified as pay for services. The amounts range from $300 to $3,000; dates run from Nov. 24, 2000, to Oct. 11, 2001.
According to the indictment, the group of seven operated, managed, supervised and provided prostitution services from houses and hotel rooms in the Western District of North Carolina and elsewhere. The indictment alleges that some defendants placed advertisements in magazines, including V2 and Xtreme, which are distributed in North Carolina and other states. Those advertisements contained contact numbers, suggestive photographs of females and suggestive captions.
Among the lines used in the advertisements: Intimate Encounters, All That U Want, Honey's Hot Spot, Sugar Shack, The Dungeon, Baby's Bunnies and X Dreams.
The Grand Jury found that some defendants "recruited, solicited and employed persons to work as prostitutes ... received telephone calls from individual seeking to employ the services of prostitutes and then directed the individuals employed as prostitutes to go the respective engagement or call; persons acting as prostitutes engaged in sexual activity in exchange for money."
The indictment specifies that some were paid with cash and others by credit cards. "Certain defendants submitted credit card charges to a company outside of North Carolina, which in turn, provided payment by wire transferring funds to bank accounts registered to certain defendants."
The indictment further claims in Counts 2-51 that Massachi, Barbara Kahn and Saleemudeen Kahn conspired to use wire transfers of funds to distribute the proceeds of, and to otherwise promote, the alleged prostitution business.
The 51 counts involve wire transfer of the same funds specified in Count 1.
Count 52 alleges that on Sept. 30, 2001, Massachi traveled to York County, S.C. with the intent to commit a crime of violence to further the prostitution service.
Count 53 alleges that Massachi, the Kahns, and Daren Williams conspired to commit money laundering in connection with the alleged prostitution business. That count carries a maximum penalty of 20 years and $250,000 fine.
Count 1 carries a maximum penalty of five years in prison with a fine of $250,000. Each count from Count 2 through Count 52 carries a maximum penalty of five years and $250,000 fine.
The indictment also contains a forfeiture county in which the court seeks to forfeit the defendants' interest in $500,000 in currency and two houses in Charlotte, one at 3959 Craig Ave. and one at 4007 Huntmeadow Drive.
According to the press release from the U.S. Attorney's office, the Internal Revenue Service and the Vice Bureau of the Charlotte-Mecklenburg Police Department investigated the case with special assistance provided by the York County, S.C., Sheriff's Department. Law enforcement agencies assisting the IRS and Charlotte-Mecklenburg PD with the arrest include the Gaston County Police Department and the Rowan County Sheriff's Department.
First Assistant U.S. Attorney Edward Ryan is in charge of the prosecution.
Staff report
Two former Salisbury residents who face federal indictments in a prostitution could face jail sentences of 275 years and fines of $13 million.
The 52-count indictment covers a period from 1997 through October 2001, with seven people charged.
On May 25, the federal GrandJury in Charlotte indicted the alleged operators of a prostitution service operating in Mecklenburg County and elsewhere. The indictment was sealed until arrests were made.
Barbara Lynn Kahn, also known as "Essa," 37, of Salisbury, is in federal custody and is scheduled for arraignment in U.S. Western District Court in Charlotte on June 14.
Saleemudeen Kahn, also known as "Sal" and "Alex," 37, has been indicted but not arrested.
The federal indictments list the Kahns' address as 3827 Main St., Salisbury. However, a telecommunicator in the county's 911 center said no structure exists at that address.
The Rowan Sheriff's Department issued a press release Wednesday saying the Sheriff's Department launched an investigation at 3820 S. Main St. after receiving complaints.
Sheriff George Wilhelm said Thursday that Detective Eddie Kluttz worked the case two years ago in conjunction with the Charlotte-Mecklenburg Police. Information and evidence gained in a search of the South Main Street house in 2001 were turned over to federal authorities.
Wilhelm said deputies carried out another search of the house earlier this week.
A press release from the U.S. Attorney Western District identifies Rachel Massachi, 33, also known as "Toni" and "Roxanne," address unknown, as the third person, along with the Khans, charged in 51 counts of the federal indictment.
Others indicted include: Bobbie Ferguson, 27, also known as "Bambi," 3001 Morrison St., Charlotte; Krista Deputy, 30, of 807 West Catawba Ave., Mount Holly; Darren Williams, 37, of 407 Huntmeadow Drive, Charlotte; and Tyler Grady, 32, also known as "Armond," of 16400 NE 17th Ave., N. Miami Beach, Fla.
All but Massachi and Saleemudeen Kahn have been arrested.
The announcement came from U.S. Attorney Gretchen C.F. Shappert, Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation Division Gina Fisher, and Chief Darrel Stephens of the Charlotte-Mecklenburg Police Department.
Count 1 of the indictment alleges that between 1997 and October 2001, Massachi and the six other defendants conspired to coerce individuals to travel in interstate commerce and use the mail and facilities in interstate commerce to distribute the proceeds of unlawful activity for the purpose of engaging in prostitution, according to the press release.
A total of 50 dates and amounts are specified as pay for services. The amounts range from $300 to $3,000; dates run from Nov. 24, 2000, to Oct. 11, 2001.
According to the indictment, the group of seven operated, managed, supervised and provided prostitution services from houses and hotel rooms in the Western District of North Carolina and elsewhere. The indictment alleges that some defendants placed advertisements in magazines, including V2 and Xtreme, which are distributed in North Carolina and other states. Those advertisements contained contact numbers, suggestive photographs of females and suggestive captions.
Among the lines used in the advertisements: Intimate Encounters, All That U Want, Honey's Hot Spot, Sugar Shack, The Dungeon, Baby's Bunnies and X Dreams.
The Grand Jury found that some defendants "recruited, solicited and employed persons to work as prostitutes ... received telephone calls from individual seeking to employ the services of prostitutes and then directed the individuals employed as prostitutes to go the respective engagement or call; persons acting as prostitutes engaged in sexual activity in exchange for money."
The indictment specifies that some were paid with cash and others by credit cards. "Certain defendants submitted credit card charges to a company outside of North Carolina, which in turn, provided payment by wire transferring funds to bank accounts registered to certain defendants."
The indictment further claims in Counts 2-51 that Massachi, Barbara Kahn and Saleemudeen Kahn conspired to use wire transfers of funds to distribute the proceeds of, and to otherwise promote, the alleged prostitution business.
The 51 counts involve wire transfer of the same funds specified in Count 1.
Count 52 alleges that on Sept. 30, 2001, Massachi traveled to York County, S.C. with the intent to commit a crime of violence to further the prostitution service.
Count 53 alleges that Massachi, the Kahns, and Daren Williams conspired to commit money laundering in connection with the alleged prostitution business. That count carries a maximum penalty of 20 years and $250,000 fine.
Count 1 carries a maximum penalty of five years in prison with a fine of $250,000. Each count from Count 2 through Count 52 carries a maximum penalty of five years and $250,000 fine.
The indictment also contains a forfeiture county in which the court seeks to forfeit the defendants' interest in $500,000 in currency and two houses in Charlotte, one at 3959 Craig Ave. and one at 4007 Huntmeadow Drive.
According to the press release from the U.S. Attorney's office, the Internal Revenue Service and the Vice Bureau of the Charlotte-Mecklenburg Police Department investigated the case with special assistance provided by the York County, S.C., Sheriff's Department. Law enforcement agencies assisting the IRS and Charlotte-Mecklenburg PD with the arrest include the Gaston County Police Department and the Rowan County Sheriff's Department.
First Assistant U.S. Attorney Edward Ryan is in charge of the prosecution.