Partial acquittal on key charges in a tax evasion and prostitution brokering case against a large entertainment venue

In a case in which the operators of a large entertainment venue were indicted on charges including tax evasion and brokering prostitution, Attorney Jaehoon Lee contested the basis for calculating the amount of tax evaded and the number of brokering incidents, and the extent to which the offenses were made out.

The main issues were the scope of taxable sales in light of the venue's actual business structure and revenue-sharing method, whether calculating the amount of tax evaded by estimation was appropriate, and whether a number of prostitution brokering incidents estimated without objective evidence could support a conviction.

Attorney Lee analyzed the revenue-sharing structure for each sales manager and the sales records, and contested the prosecution's method of calculating the amount of tax evaded and the scope of taxable sales.

He also reviewed hotel room usage records, business records and the statements of those involved, and contested the basis for calculating the number of prostitution brokering incidents and the level of proof.

At first instance, the defendants were acquitted on a substantial part of the tax evasion charges, and a substantial part of the counts of prostitution brokering charged by the prosecution were also found not proven.