Big Story Follow UP

Couple in charge of prostitution ring to be sentenced today

Posted: Feb 1, 2012 9:42 AM by Drew Trafton
Updated: Feb 1, 2012 9:57 AM

BILLINGS- A couple faces sentencing today after pleading guilty in August of 2011 to charges of interstate promotion of prostitution and money laundering.

Gregory and Myong Suk "Suzie" McFarland each face up to a maximum sentence of 5 years in prison for promotion of prostitution and 20 years in prison for money laundering.

In addition to any sentence the McFarland's receive, they have also forfeited $1,176,228.70 from their illegal businesses to the U.S. government.

The sentencing will take place in Billings at 1:30p.m. at the courtroom of U.S. District Judge Richard Cebull, and a press conference will follow at 3p.m. in City Hall detailing to where the money will be distributed.

The charges stemmed from a five year investigation into the Shangri-la Spa and Sauna on 437 Bernard Street in Billings and Far West Sauna on 1211 Mullowney Lane, starting when the manager at a Holiday Inn in Billings called police regarding guests complaining that they had been propositioned while at the Far West Sauna (then Far West Massage).

Leading up to a search of the two businesses, and the home of the McFarlands, in September of 2010, police monitored and interviewed several men who were clients of the establishments who told police they had received sexual acts in turn for "tips"-- a process which police documented involved paying a $60 door fee and up to $300 in the room for sexual acts.

Police also documented the McFarlands coming and going from the establishments regularly, and they were also identified by a woman working in one of the businesses during the raid.

Police say the McFarlands employed 35 women during the span of the five year investigation, the majority of whom came from Minnesota and were operating as part of a circuit.

A search of the couple's home, 4605 Sticka Circle in Billings, revealed hundreds of pages of "ledgers/tally sheets" which documented the split of money, credit card receipts, security DVDs, and other records associated with running the businesses.

The credit card charges showed up on the spas client's statements as being from the OnJona Corporation and OnJona Property Management.

The National Processing Company, listed in court documents as the processor of the payments, shows the physical address for the OnJona Corporation as being 1211 Mullowney Lane-- the same address as Far West Sauna-- and OnJona Property management as being at 4605 Sticka Circle--the same address as the McFarland home.

The National Processing Company says on the application the corporation was described as a "storage/warehouse" business.