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Average US rate on a 30-year mortgage rises slightly for the second week in a row

Associated Press (AP) — The average rate on a 30-year in the U.S. rose slightly for the second week in a row, a modest setback for prospective home shoppers as the spring homebuying season ramps up.

The rate rose to 6.67% from 6.65% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.87%.

Including this week, the average rate on a 30-year home loan has risen only twice in the past nine weeks, a welcome trend for aspiring homebuyers struggling to afford a home after years of soaring home prices.

“The 30-year fixed-rate mortgage has stayed under 7% for nine consecutive weeks, which is helpful for potential buyers and sellers alike,” said Sam Khater, Freddie Mac’s chief economist.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose this week, pushing the average rate to 5.83% from 5.8% last week. A year ago, it averaged 6.21%, Freddie Mac said.

are influenced by several factors, including bond market investors’ expectations for future , global demand for U.S. Treasurys and the ‘s interest rate policy decisions.

After climbing to just above 7% in mid-January, the average rate on a 30-year mortgage has been mostly declining, loosely following the moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

The yield, which was nearing 4.8% in mid-January, has mostly fallen since then, reflecting worries about the economy’s growth and the fallout from the Trump administration’s decision to impose tariffs on imported goods from many of the nation’s key trade partners. The yield was at 4.23% in midday trading Thursday.

Tariffs can drive inflation higher, which could translate into higher yields on the 10-year Treasury note, pushing up mortgage rates. That’s because bond investors demand higher returns as long as inflation remains elevated.

The has been holding its key interest rate steady this year, after cutting it sharply through the end of last year. While lower rates can help give the a boost, they can also drive inflation higher.

On Wednesday, the central bank kept its benchmark interest rate unchanged. It also signaled that it still expects to cut rates twice this year, even as it sees inflation staying stubbornly elevated.

While the Fed doesn’t set mortgage rates, its actions can ultimately influence borrowing costs for mortgages and other consumer loans.

“In the near term, we expect mortgage rates to remain in a fairly narrow range, between 6.5% and 7%, which should support the spring housing market,” said Mike Fratantoni, chief economist at the Mortgage Bankers Association.

The family of an airplane safety whistleblower is suing Boeing over his death

CHARLESTON, S.C. (AP) — The family of a former Boeing quality control manager who police say killed himself after lawyers questioned him for days about his whistleblowing on alleged jumbo jet defects sued the airplane maker Thursday.

subjected John Barnett to a “campaign of harassment, abuse and intimidation intended to discourage, discredit and humiliate him until he would either give up or be discredited,” lawyers for the family wrote in a wrongful filed in federal court in South Carolina.

Barnett, 62, shot himself March 9, 2024, in Charleston after answering questions from attorneys for several days. He lived in Louisiana.

“Boeing had threatened to break John, and break him it did,” the attorneys wrote in court papers.

Boeing has not yet responded in court filings.

“We are saddened by John Barnett’s death and extend our condolences to his family,” the company said in a statement this week.

Barnett was a longtime Boeing employee and worked as a quality-control manager before he retired in 2017. In the years after that, he shared his concerns with journalists and became a .

Barnett said he once saw discarded metal shavings near wiring for the flight controls that could have cut wiring and caused a catastrophe. He also noted problems with up to a quarter of the oxygen systems on Boeing’s 787 planes.

Barnett shared his concerns with his supervisors and others before leaving Boeing, but according to the lawsuit they responded by ignoring him and then harassing him.

Boeing intentionally gave Barnett inaccurate, poor job reviews and less desirable shifts, according to the lawsuit. Barnett’s family argues the company publicly blamed him for delays that angered his co-workers and prevented him from transferring to another plant.

Barnett eventually was diagnosed with PTSD and his mental condition deteriorated, his family said.

“Whether or not Boeing intended to drive John to his death or merely destroy his ability to function, it was absolutely foreseeable that PTSD and John’s unbearable depression, panic attacks, and anxiety, which would in turn lead to an elevated risk of ,” the lawsuit said. “Boeing may not have pulled the trigger, but Boeing’s conduct was the clear cause, and the clear foreseeable cause, of John’s death.”

The lawsuit doesn’t specify the amount of damages sought by Barnett’s family but asks for compensation for emotional distress and mental anguish, back pay, 10 years of lost future earnings as well as bonuses, health expenses and his lost life insurance benefits.

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EDITOR’S NOTE — This story includes discussion of suicide. The national suicide and crisis lifeline is available by calling or texting 988. There is also an online chat at 988lifeline.org.

Constructing change

The industry has long been perceived as a male-dominated field, but is not just a moral imperative — it’s a strategic advantage. While the National Association of Home Builders reports that currently make up approximately 10.8% of the U.S. construction — an increase from 9.3% in 2002 — there is still significant room for growth.

Earlier this month, the construction industry celebrated Women in Construction Week, a time dedicated to recognizing the contributions of women in the field and promoting opportunities for future generations. As we continue through Women’s History Month, it is crucial to not only reflect on the progress made but also acknowledge the work still needed to build a more inclusive and equitable industry. By fostering an inclusive workplace, supporting mentorship initiatives and championing women in leadership roles, we are committed to shaping a future where women in construction are not just welcomed but empowered to thrive.

The business case for diversity

Diversity within the workforce is not merely a matter of ; it is a strategic advantage. Companies that embrace diverse perspectives are better equipped to innovate and adapt in a competitive marketplace. In construction, where problem-solving and creativity are paramount, the inclusion of women can lead to more comprehensive solutions and improved project outcomes. A comprehensive study by McKinsey & Company, published in May 2020, analyzed data from over 1,000 large companies across 15 countries. The findings revealed that companies in the top quartile for gender diversity on executive teams were 25% more likely to achieve above-average profitability compared to those in the bottom quartile. Furthermore, the study highlighted that the greater the representation of women, the higher the likelihood of outperformance. These insights underscore the tangible benefits of fostering gender diversity within leadership roles.

The construction industry, with its inherent need for innovation and efficiency, stands to gain significantly from increasing gender diversity — not just in workforce numbers but in leadership and decision-making roles as well. By cultivating an inclusive culture that actively supports the recruitment, retention and advancement of women, companies can secure a competitive edge while contributing to a more resilient industry.

Challenges persist

Despite progress in increasing female representation, women in the construction industry continue to face significant challenges, including workplace harassment and microaggressions. A comprehensive study by the Institute for Women’s Policy Research, based on a survey of over 2,600 tradeswomen, found that discrimination, harassment and a lack of respect contribute significantly to high turnover rates among female construction workers. The report, A Future Worth Building: What Tradeswomen Say about the Change They Need in the Construction Industry, revealed that 26.5% of surveyed women reported high levels of workplace harassment. Additionally, a 2024 article highlighted that 88% of women in the sector have faced microaggressions at work, with 41% of these incidents involving supervisors or managers. Such experiences not only deter women from entering or remaining in the industry but also emphasize the urgency for cultural change.

Addressing these systemic barriers through stronger policies, leadership accountability, and workplace education is critical to fostering a more inclusive and supportive work environment where women can thrive.

Driving industrywide change

Creating a more inclusive construction industry requires collaboration between companies, industry leaders and advocacy organizations. While many companies are committed to fostering an equitable workplace, broader change is also being driven by national organizations that provide education, mentorship and advocacy for women in construction. These initiatives are instrumental in breaking down barriers and ensuring that women not only enter the industry but also have the support they need to succeed.

Several key organizations are leading the charge:

● National Association of Women in Construction (NAWIC): Established in 1953, NAWIC provides members with opportunities for professional development, education, networking, leadership training and public service. The organization plays a critical role in advocating for policies that support women in the trades and creating a strong professional network.

● Home Builders Institute (HBI): A leader in workforce development, HBI offers free education, training, and job placement services to help individuals, including women, build successful careers in construction. By equipping workers with the skills and confidence needed to thrive, HBI plays a vital role in increasing the number of women entering and staying in the field.

● Commercial Women (CREW) Network: CREW is dedicated to advancing women in , including construction, development, and investment. Their industry research, including benchmark studies, provides insights into gender gaps and opportunities to advance women in leadership roles.

● Urban Land Institute – Women’s Leadership Initiative (ULI-WLI): ULI’s Women’s Leadership Initiative promotes the advancement of women in real estate and land use, supporting career growth, leadership training, and networking opportunities. Their programs help women build connections and gain visibility in the industry.

By working alongside these organizations and implementing internal initiatives, construction firms can take meaningful steps toward lasting industry transformation.

Brian K. Revere is president of . A subsidiary of The Breeden Co., Breeden Construction is a privately owned, nationally recognized general contracting company specializing in multifamily communities.

Trump Town owner found not guilty of assault, indecent exposure

A judge Monday found Donald “Whitey” Taylor, owner of ‘s Trump Town retail store, not guilty of misdemeanor charges of indecent exposure and assaulting three store employees.

“It was very rewarding,” Taylor said of the verdict. “These ladies were just looking for money.”

Requests for comment from the ‘s Commonwealth’s Attorney and to attorneys representing the former employees were not returned.

Judge Allen (A.J.) Dudley had questions about the ‘s credibility, according to The Times.

In 2020, Taylor, who also owns Franklin County Speedway, transformed a former church in the blink-and-you’ll-miss-it town of Boones Mill into a store filled with merchandise celebrating the 45th and 47th president of the United States. With a long history of serving as one of the Roanoke Valley’s more colorful characters, Taylor ran an unsuccessful campaign for Boones Mill mayor last year.

In October 2024, three Trump Town workers took out charges against Taylor for misdemeanor simple assault and assault and battery through the magistrate’s office.

Taylor believes his former employees timed filing the charges against him to ruin his mayoral candidacy.

With 113 votes, Victor E. Conner became the town’s mayor. Taylor received 17 votes. There was one write-in.

In one of the complaints, a former employee wrote that on or around Sept. 26, 2024, Taylor called her to the back of the store, where, she alleged, he exposed himself and asked her to perform a sex act. The woman also noted that on Oct. 13, Taylor grabbed her buttocks. “He has repeatedly sexually, mentally, emotionally and physically, verbally harassed me,” the woman alleged in the complaint.

In November, Taylor swore out warrants against the three employees, charging each with felony embezzlement. Those charges were later dropped.

Despite his and political battles, business remains brisk at Trump Town, according to Taylor. He doesn’t expect demand for merchandise related to The Donald to drop any time soon.

“He’s already built a legacy,” Taylor says of Trump. “His legacy will last forever.”

Developers break ground on $1.4B Petersburg casino

Baltimore-based The Cordish Cos. and Virginia Beach developer Enterprise broke ground Wednesday on the much-anticipated $1.4 billion Live! Casino & Hotel Resort in .

The mixed-use development’s backers say it will create about 1,400 permanent jobs, increase and generate billions in economic benefit for Virginia. In November 2024, more than 80% of Petersburg voters approved a local referendum greenlighting the casino, which is being built on an undeveloped, 100-acre site off Interstate 95 in Petersburg.

Smith and Cordish are partnering to develop the resort. On Wednesday, executives from both companies were joined by state and city officials to celebrate the .

“It has been a source of immense satisfaction and pride to partner in this incredible development,” said developer and NFL Pro Football Hall of Famer Smith. “For far too long, people have simply driven by the city of Petersburg, but today marks the beginning of a new era in which Petersburg will become a prime destination.”

Smith says the project will ignite tourism, create jobs and provide greater opportunity and upward mobility for local families. “As a champion of Petersburg and its residents, I am happily confident that this historic development will uplift, empower and enrich this community for years to come,” he said in a statement.

According to a news release, Live! Casino & Hotel Virginia is slated to open in 2027. The site will include more than 450,000 square feet of , and dining. It will also feature 75,000 square feet of meeting, convention and entertainment space, 1,600 slot machines, 65 live-action table games, high limit slot and table areas, and a 200-room hotel with 20 suites, a pool and fitness center.

A temporary gaming facility will open in Petersburg by the end of the year with 75,000 square feet of gaming space, 900 slots, 33 live-action table games, a bar and a quick-service restaurant.

According to a news release from Cordish, the resort is expected to generate $2.8 billion in economic stimulus to the region, $504 million in tax revenue, including $240 million to the City of Petersburg, as well as $802 million in economic benefits during , $201 million in annual economic benefits each year after opening and more than 7,500 jobs, including 6,100 construction jobs and 1,400  permanent jobs.

“Live! Casino & Hotel will be a transformative development that will bring a world-class gaming and entertainment experience to millions of visitors, create significant new jobs and generate millions of dollars in economic benefits for the community that will provide a beneficial impact for generations,” Smith said. “We look forward to making an immediate impact on the region with the construction of a temporary gaming facility that will be operational before the end of 2025, so that we can begin creating jobs, vendor opportunities and economic benefits for the city.”

So far, Virginia has three operating : Rivers Casino Portsmouth, the state’s first permanent casino; the Hard Rock Bristol Casino, which opened in November; and the Caesars Virginia casino in Danville, which opened in December.

Meanwhile, the Pamunkey Indian Tribe and Boyd Gaming started construction on the long-delayed Norfolk casino in February.

All four of those casino projects were passed via local referendum in 2020, but Richmond voters rejected an Urban One casino project in 2021 and 2023 votes. Last year, Virginia General Assembly lawmakers passed legislation that gave Petersburg a chance to host a casino, pending voters’ approval of a referendum on the November ballot, and barred Richmond from a third try. The state’s casino laws cap the number of casinos to one per city in five designated cities: Bristol, Danville, Norfolk, Portsmouth and now Petersburg, which replaced Richmond.

Verge rebrands to Roanoke Blacksburg Innovation Alliance

Verge, a collective of organizations dedicated to tech-based in the and New River valleys, announced a rebrand Tuesday, an effort that includes a new website, logo and a new name — the Roanoke Blacksburg Innovation Alliance (RBIA).

Previously, , which has roots dating back to 2013, used “Roanoke Blacksburg Innovation Alliance” as its tagline.

“Everybody just started kind of referring to us as our tagline,” explained RBIA CEO Erin Burcham, who’s also executive director of the Roanoke Blacksburg Council (RBTC). “We’re like, ‘We should elevate the tagline to the actual name.’”

Burcham appreciates how the new moniker allows those living outside of western Virginia to immediately grasp what RBIA is about. “Having a place-based name is really helpful, especially when … we’re out of market,” she says.

Organizations under the RBIA umbrella include Regional Accelerator and Mentoring Program (), a public/private business accelerator serving startups in STEM-H fields; RBTC, a member association of technology professionals, businesses and organizations; and CommonWealth Angels, a private capital investment organization based in Roanoke.

“We’re looking at this really holistically, on how to grow the technology, sectors in our region… so just really thinking about fundamentally what the sectors need to grow and making sure that we have the right elements in our portfolio to support the growth,” says Burcham.

RBIA’s new logo incorporates four circles, which represent “all four Alliance teams,” evoking “the momentum and creativity inherent in the regional innovation ecosystem,” according to a news release.

LeadPoint Digital, a Roanoke marketing agency, handled RBIA’s rebrand.

With roots going back to 2013, RBIA takes credit for accelerating more than 60 tech companies and for being “instrumental in crafting a creative culture that has seen” more than 3,200 patents filed since 2014.

In February, Region 2 announced that the statewide economic development initiative would invest $14.3 million to support Project VITAL (Virginia Innovations and Technology Advancements in Life Sciences), a “multiregional initiative to establish new research cores, expand development programs and create a collaborative network connecting academic institutions with industry partners across the commonwealth’s biotechnology corridor.” The effort is projected to generate an economic impact of more than $40 million.

With a $4.9 million investment from GO Virginia, RBIA will work with others including Virginia Tech, Carilion Clinic and Virginia Western Community College, to lead the Project VITAL effort in Region 2, which includes the cities of Covington, Lynchburg, Radford, Roanoke and Salem and the counties of Alleghany, Amherst, Appomattox, Bedford, Botetourt, Campbell, Craig, Floyd, Franklin, Giles, Montgomery, Pulaski and Roanoke.

Virginia Commonwealth University and Activation Capital will lead Project VITAL work in GO Virginia’s Region 4, with the University of Virginia and CvilleBioHub leading the effort in GO Virginia’s Region 9.

 

Hooker Furnishings adds showroom dedicated to international audience

Martinsville-based  is demonstrating its commitment to serving a worldwide audience with the debut of its dedicated International Buyer Showroom at the upcoming High Point Market in North Carolina that will run April 26-30.

Set apart from its flagship showroom, the dedicated 5,000-square-foot space is located on the second floor of Showplace in space 2340 and showcases Hooker Furnishings’ Modern Country collection, which made its debut at the January Show in Birmingham, U.K.

Created exclusively for international distribution, Modern Country blends craftsmanship and contemporary sensibilities while meeting regional design and scale preferences for European homes.

“The international marketplace presents exciting growth opportunities for Hooker Furnishings, and this new showroom is a key step in continuing to expand our global presence,” said CEO Jeremy Hoff. “Following the strong momentum from our successful JFS debut, we’re eager to welcome international buyers to our new showroom at High Point Market.”

Brad Miller, vice president of international sales, added, “Modern Country was incredibly well received at JFS, and we’re excited to introduce its latest expansion at the April High Point Market with the addition of bedroom furniture. Designed specifically for international lifestyles, the collection now offers versatile pieces for every room in the home, including dining, bedroom, occasional furniture and custom upholstery.”

The Modern Country collection includes five distinct ranges, including:

  • Timeless: Featuring designs that transcend time with a modern twist, this range combines natural wood grains, brass accents and versatile silhouettes for enduring elegance.
  • Eclectic Academia: Bold and creative, this range merges unexpected textures and shapes, offering accent pieces that spark conversation and complement a variety of interior styles.
  • Nordic Tranquility: Scandinavian simplicity meets mid-century modern design, with soft tones, bleached wood finishes and functional yet beautiful forms that evoke calmness and coziness.
  • Harmony Haven: Marrying antique charm with contemporary sophistication, this range features weathered oak finishes, clean lines and understated accents inspired by life’s simple pleasures.
  • Academic Fusion: Combining vintage sophistication with mid-century modern craftsmanship, this range offers muted tones, rich wood grains and practical designs inspired by intellectual pursuits, vintage libraries and the allure of well-worn pages.

Hooker Furnishings’ International Showroom will be open to registered international buyers and partners throughout the April market. The company will host a ribbon cutting at 4 p.m. on April 25.

Loudoun County supervisors shake up data center regulations

The Board of Supervisors approved major changes on Tuesday night to how the county regulates , eliminating them as a by-right use.

The board voted 7-2 to alter the county’s comprehensive plan and ordinance, with supervisors Kristen Umstattd and Caleb Kershner making the dissenting votes. The comprehensive plan amendment makes data centers a “conditional use” in places where they are currently a core or complementary use. This change requires all future data centers to meet certain conditions to be built.

The zoning ordinance amendment designates data centers as a “special exception” use in county areas where they were previously permitted by-right. By-right applications could be approved administratively, whereas “special exception” requires applicants to go through a public hearing process and get approval for data centers from the board.

However, in a separate 5-4 vote, the board made provisions to grandfather applications that were already in place by Feb. 12 — the night the board held a public hearing on the proposed zoning changes — for projects that are more than 500 feet away from residential units. The grandfather provision requires that the applicant “diligently” pursue approval of their application and also forbids substantial modification to an application.

Vice Chair Mike Turner and Supervisors Laura TeKrony, Juli Briskman and Sylvia Glass were the dissenting votes to the grandfather clause. Kershner made a motion to extend the date of grandfathering applications to March 18, but it failed to pass, with Umstattd being the only other supervisor to support it.

According to Turner, 24 data center applications were grandfathered by Tuesday’s vote.

The county’s planning and zoning staff calculated that as of Feb. 12, Loudoun County has approximately 46 million square feet of data centers constructed or with a building permit issued and about 61.5 million square feet of potential data center development. However, staff noted in the action item documents that is an “unconstrained number” and that it’s likely that not all possible data center square footage may be fully realized due to various factors, such as changes in the political landscape impacting the industry, change and limitations in electric transmission capacity and related infrastructure.

Kershner said numerous data center companies have “been some of our strongest business partners here in the county” and said the new rules would create a feeling of uncertainty and make companies hesitant to do business in the county. He described the new as a “dangerous game” of “Loudoun County Zoning roulette.”

“When you spin that wheel, there is a level of uncertainty that permeates all businesses, not just this business, but all businesses who are thinking and doing business here in the county, and that has huge negative effects on Loudoun County,” Kershner said.

Umstattd echoed Kershner’s concerns, saying she was concerned about taking away by-right opportunities from businesses who have invested in the county and reminded the rest of the board of the revenue data centers have brought the county. County Administrator Tim Hemstreet said last month that the data center industry generates 38% of all the county’s general fund revenues.

However, many county residents have voiced concerns about data centers in the county, with complaints about data centers straining the state’s electric grid, the centers generating too much noise and the buildings being eyesores. In particular, many residents feel that some data centers are being built in inappropriate locations — right next to neighborhoods.

Supervisor Matthew Letourneau says he appreciates the revenue data centers have brought and has consistently supported data centers “that are in places that they should be.” But, he said many data centers are in places they shouldn’t be. Glass said the changes approved empower the board to “make thoughtful decisions regarding what data centers we build in our communities.”

County Chair Phyllis Randall said one of the goals of the board is to be “the voice of the people” and that she gets emails almost every day from people complaining about data centers.

“When I first came on, I would call people and I would say, ‘But this is what it does for your tax rate and how much it lowers it, and they do this for the community.’ And somebody would say, ‘Oh, I didn’t know that. Thanks for letting me know,’ and that would be it,” Randall said. “Now I say, ‘this is what it does for your tax break.’ And they say, ‘I don’t care.’ I have people say, ‘I will pay more. Stop building these.’ At some point, we just cannot ignore the voice of the people.”

Federal Reserve keeps interest rate unchanged, sees slower growth, slightly higher inflation ahead

WASHINGTON (AP) — The kept its benchmark interest rate unchanged Wednesday and signaled that it still expects to cut rates twice this year, though more policymakers forecast fewer cuts.

The also now expects the to grow more slowly this year and next than it did three months ago, according to a set of quarterly economic projections also released Wednesday. It also expects the unemployment rate to tick higher, to 4.4%. Policymakers also expect will pick up slightly by the end of this year, to 2.7% from its current level of 2.5%. Bother are above the central bank’s 2% target.

“Uncertainty around the economic outlook has increased,” the Fed said in a statement released after its two-day meeting .

The projections underscore the tight spot the Fed may find itself in this year: Higher inflation typically would lead the Fed to keep its key rate elevated, or even raise rates. On the other hand, slower growth and higher unemployment would often cause the Fed to cut rates to spur more borrowing and spending and lift the economy.

It is the second meeting in a row that the Fed has kept its interest rate at about 4.3% as the central bank has moved to the sidelines as it evaluates the impact of the Trump administration’s policies on the economy. Economists forecast that tariffs will likely push up inflation, at least temporarily. But other policies, such as deregulation, could lower costs and cool inflation.

Woman accused of running high-end brothels in Northern Virginia and near Boston set to be sentenced

BOSTON (AP) — A woman accused of operating a high-end brothel network with wealthy and prominent clients in that state and the Washington, D.C., suburbs of is set to be sentenced.

Han Lee and two others were indicted last year on one count of conspiracy to persuade, entice and coerce one or more individuals to travel in interstate or foreign commerce to engage in prostitution and one count of money laundering, according to prosecutors. Han Lee plead guilty in September. The operation, according to court documents, generated millions of dollars a year, and customers paid hundreds of dollars an hour for services.

A Massachusetts woman accused of operating a high-end brothel network with wealthy and prominent clients in that state and the Washington, D.C., suburbs is set to be sentenced Wednesday.

Han Lee and two others were indicted last year on one count of conspiracy to persuade, entice, and coerce one or more individuals to travel in interstate or foreign commerce to engage in prostitution and one count of money laundering, according to prosecutors. The operation, according to court documents, generated millions of dollars a year, and customers paid hundreds of dollars an hour for services.

Junmyung Lee of Dedham, Massachusetts, pleaded guilty in October and is set to be sentenced next month. James Lee of Torrance, California, accused of renting the apartments in the operation, pleaded guilty last month to his involvement in the scheme as well as fraudulently obtaining nearly $600,000 in pandemic relief funds. He is set to be sentenced next month.

Prosecutors are demanding that Han Lee, who pleaded guilty in September, be sentenced to six years imprisonment and three years of supervised released for running “one of the most successful prostitution networks” on the East Coast. They estimate that nearly 10,000 commercial sex dates occurred in her brothels, according to court records, and that she “controlled the day-to-day operations.”

“Han profited immensely off selling their bodies for sex and she concealed multimillions of dollars of illicit proceeds earned from her business,” Assistant United States Attorney Lindsey Weinstein wrote. “Han enticed and recruited women to travel to Massachusetts or Virginia from other states, and on thousands of occasions, directed women to have sex with strangers for money. She made a staggering total amount of money – at least $5.46 million dollars over more than four years – and used sophisticated means to hide that money from enforcement.”

But Lee’s federal public defender, Scott Lauer, plead for leniency, saying in court documents that Lee grew up poor in South Korea and had a father who drank heavily and was abusive. After arriving in the United States, she became a sex worker in California, Las Vegas and New York before settling in Massachusetts and continuing to work in the trade.

After a brothel was raided, Han Lee saw the opportunity to set up the network. The contends none of the sex workers in this operation were forced to do the job and that they kept a majority of the revenues.

“While cases involving prostitution often involve some degree of force or coercion exerted against the women involved, this case does not,” Lauer wrote. “There is a world of difference between Ms. Lee — a sex worker herself — and a pimp (or madam) who enriches themselves at the expense of those performing the work. The commercial sex workers in this case were well treated and well compensated.”

Authorities said the commercial sex ring in Massachusetts and Northern Virginia catered to politicians, company executives, military officers, lawyers, professors and other well-connected clients.

Nearly 30 of the buyers are appearing court this month in Cambridge, after the state’s highest court ruled last year that the hearings should be public. The first group of buyers appeared in court last week, and a second group is set to appear Friday.

The women who worked in the brothels were not identified or criminally charged and were considered victims, prosecutors said.
Prosecutors said their evidence included witness testimony from women who worked at the brothels, sex buyers who made appointments or received services, physical surveillance and electronic evidence.

Han Lee maintained the operation from 2020 to November 2023. The money made at the brothels was sometimes kept in the freezer to be picked up, prosecutors said. They said she also helped train Junmyung Lee to help vet sex buyers.

The brothel operation used websites that falsely claimed to advertise nude models for professional photography, prosecutors allege. The operators rented high-end apartments to use as brothels in Watertown and Cambridge, Massachusetts, and Tysons and Fairfax, Virginia, prosecutors said. Brothels were maintained at four locations in Massachusetts and two in Virginia.

According to court documents, the defendants established house rules for the women during their stays in a given city to protect and maintain the secrecy of the business and ensure the women did not draw attention to the prostitution work inside apartment buildings.

Each website described a verification process that interested sex buyers undertook to be eligible for appointment bookings, including requiring clients to complete a form providing their full names, email addresses, phone numbers, employers and references if they had one, authorities said.