Alleged madam plea bargains

Wednesday, Oct. 18, 2000 | 10:53 a.m.

SUN STAFF AND WIRE REPORTS

DENVER -- Racketeering charges and other counts against a woman accused of hiring hundreds of Asian prostitutes to work at brothels in California, Colorado and Nevada have been dropped as part of a plea agreement.

Suk Ki Grell, 39, alias Kwang Suk Campbell-Walker, was sentenced Tuesday in U.S. District Court to 18 months in prison. She pleaded guilty in July to one count of failure to appear in court in April 1997 after being accused of racketeering, conspiracy and money-laundering offenses.

Federal authorities in Las Vegas said today they do not believe the case involving Grell is connected with a similar operation that was the focus of a two-year investigation. That case resulted in the arrest of five people last month who are accused of operating brothels using Asian women in Las Vegas and numerous large cities across the country.

In the Grell case, prosecutors agreed to dismiss the most serious charges as part of the plea agreement.

Grell faces deportation to Korea once she is released from prison.

Grell had been accused by the government of running a string of brothels that employed several hundred prostitutes.

"Because of the passage of time we didn't know if we could make that case," prosecutor Robert Mydans told the judge in explaining why the more serious charges were dropped.

They had alleged Grell organized crime contacts and brought hundreds of Asian women illegally to North America to work as prostitutes.

"Our contention is that they couldn't get it (a conviction) back then, but we didn't get to fight it because our defendant took off," said Daniel W. Carr, one of Grell's attorneys. "Proving failure to appear is easier than proving a speeding ticket."

During the hearing, Daniel questioned Grell attorney Robert McAllister about the whereabouts of thousands of dollars sought by the Internal Revenue Service.

McAllister said the money had been placed in one of his trust accounts to protect it from seizure. McAllister said he then transferred it back to those who were rightfully entitled to it, without elaborating.

Grell invoked her Fifth Amendment right in refusing to answer questions about the money.

"This settles all pending matters," McAllister said of the plea agreement and sentence.

Grell is in the midst of a divorce from her husband James J. Walker, who was also named in the April 1996 grand jury indictment. She has two children, Carr said.