Jr. Pleads Guilty

By Jonah Spangenthal-Lee June 25, 2010

The Feds just sent out a press release announcing that Frank Colarcurcio Jr., son of strip club magnate—and co-indictee Frank Colacurcio Sr—has pleaded guilty to racketeering charges, and will be stripped (get it!) of a number of assets:

            Two defendants in the RICO prosecution of the Colacurcio strip club organization pleaded guilty today to a criminal conspiracy.  FRANK COLACURCIO, JR. and corporate defendant MM MR RM CORPORATION both pleaded guilty in U.S. District Court in Seattle to Conspiracy to Commit RICO – Racketeer Influenced and Corrupt Organizations.  Frank Colacurcio, Sr., 93, remains the sole defendant in the RICO case.  Under the terms of the plea agreement, FRANK COLACURCIO, JR., and the corporation which he controls, forfeit not only their interest in the strip clubs, but the property at 8600 Lake City Way which houses the Colacurcio company ‘Talents West.’  The property was last appraised at $1.7 million.  COLACURCIO, JR. is also forfeiting $1.3 million in cash.  Under the terms of the plea agreement, COLACURCIO, JR. is to be sentenced to a year and a day in prison when sentenced on September 24, 2010.  Should U.S. District Judge Richard A. Jones deviate from the agreed upon sentence, either side can withdraw from the plea agreement. 

            In April 2010, the first group of defendants, all Colacurcio associates, entered guilty pleas and the strip club properties were closed.  The strip clubs run by this organization include Rick’s in Seattle, Fox’s in Parkland, Pierce County, Honey’s in Everett and Sugar’s in Shoreline.  Following sentencing currently scheduled for July 2010, the government will seize the properties where Rick’s and Sugar’s are located.  The government will receive payment equal to the appraised value of Honey’s, and the building will be bulldozed.  The corporations and the three individual defendants-- Leroy Richard Christiansen, 68, of Seattle, Washington, David Carl Ebert, 62, of Monroe, Washington and Steven Michael Fueston, 62, of Tacoma, Washington --  are barred from operating any adult entertainment business in Washington State for the next five years. 

            As part of his plea agreement, FRANK COLACURCIO, JR. is barred from participating in any adult entertainment enterprise in the State of Washington for the three year term of  supervised release which will follow his prison sentence.  COLACURCIO, JR. agreed to forfeit the Talents West building at 8600 Lake City Way, admitting it was used as part of the criminal scheme.  COLACURCIO, JR. forfeited the building on behalf of his father as well, using his power of attorney over his father’s affairs.  

            The assets of the Colacurcio organization were frozen by the government in June 2008 following a two year investigation.  Members of the conspiracy were indicted in June 2009.  The 25 page indictment lays out the actions members of the conspiracy took to promote prostitution at the clubs and their failure to stop prostitution when it was reported to them.  In various recorded conversations, the Colacurcios and their associates dissuaded dancers and managers from reporting acts of prostitution and repeatedly returned dancers who were arrested for and caught in acts of prostitution back to the clubs.  The indictment further details how credit card machines and ATMs were used to facilitate the prostitution and how the proceeds of prostitution were laundered through various bank accounts. 

            The plea agreement signed in court today details how FRANK COLACURCIO, JR. conspired with others  to facilitate prostitution at the clubs and to profit from the illegal prostitution.  The plea agreement recounts a conversation during which FRANK COLACURCIO, JR. tells a dancer she must lie to him about her acts of prostitution as part of a charade that he does not know what is occurring at the clubs.

            The case was investigated by the FBI, IRS Criminal Investigation (IRS-CI), and Seattle Police Department with assistance from the King County Sheriff’s Department, Everett Police Department, Snohomish County Sheriff’s Office, and the Pierce County Sheriff’s Office.  

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