Rehoboth business owner liable for racketeering

After being found liable under the Racketeer Influenced and Corrupt Organizations statute for running a prostitution ring, there will be no more tricks or treats for Rehoboth business owner Da Zhong Wang.

In a ruling handed down Oct. 31, Halloween, Delaware Supreme Court Judge Abigail M. LeGrow said Wang was civilly liable for three violations under the state’s racketeering statute.

According to a Nov. 1 press release from the Delaware Department of Justice, the state alleged Wang profited from prostitution by owning and operating a series of brothels in Middletown, Smyrna, Dover and Rehoboth from 2010 to 2015. Community complaints led Delaware State Police to conduct sting operations at locations in Middletown and Rehoboth, according to the release, which resulted in Wang’s conviction on a count of permitting prostitution and revocation of his license by the Division of Professional Regulation.

In her written ruling, LeGrow said that during the racketeering trial, Wang attempted to distance himself from his employees who were arrested for prostitution, saying they were rogue employees trying to make money on the side.

“Although the state did not offer evidence that Wang directly received any proceeds from the massage therapists’ prostitution, it is logical and reasonable to infer from the evidence that he encouraged that activity in order to increase the number of customers who frequented his establishments,” said LeGrow. “Even if those customers paid the massage therapists directly for sexual services, and even if the therapists retained all those additional funds, Wang benefited from the increase in sales of massage services.”

LeGrow said Wang attempted to plead ignorance of the prostitution taking place at his businesses.

“In a nutshell, considered in a whole, the record demonstrates that Wang was aware of and encouraged prostitution at his establishments in order to increase business,” said LeGrow.

The DOJ attempted to hold Wang accountable on seven racketeering violations, but LeGrow said the state proved only three. 

The press release says Wang faces up to $100,000 in civil penalties for each of the three violations, with the state intending to seek the maximum available penalty of $300,000. The civil suit against Wang alleging racketeering was the first of its kind in Delaware involving human trafficking, the release states.