Indictments Returned Against Operators of Omaha “Spas”

United States Attorney Deborah R. Gilg announced the federal grand jury for the District of Nebraska has returned two indictments charging four defendants in connection with the operation of various “spas” in Omaha. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.

According to the indictments, all four defendants were involved in operating “spas” under various names at different locations in Omaha, all of which were, in fact, alleged fronts for prostitution. The spas were located at 3024 N. 93rd Street (variously known as Avant Gentleman’s Spa; Advantage Spa & Body Works; Ninety-Third Street Spa; and NTS Spa Ltd.); 620 and 622 South 72nd Street (Advantage Day Spa and OT Spa); and 3025 South 87th Street (It Works Spa), all in Omaha, Nebraska. The indictments allege, in substance, that the defendants conducted an interstate prostitution operation by using various facilities of interstate commerce to run their businesses and, in so doing, attracted clients from both Nebraska and other states.

William R. Knox is alleged during certain time periods to have operated a spa business himself or through managers. Knox is alleged during other time periods to have entered business sublease or purchase arrangements with others, under which the sublessor or purchaser paid Knox a weekly fee in exchange for the opportunity to operate the ongoing spa business on the premises.

Tammy L. Schuck is alleged to have operated a spa business under a sublease with Knox and to have thereafter opened and operated two other spas. Tabatha N. Ashburn is alleged to have managed and operated the spas. Christopher J. Tierney is alleged to have provided computer and electronic services for the spas, including setting up a website and creating a computerized record keeping system.

The specific charges in the indictments are the following:

William R. Knox, age 63, of Omaha, is charged in an eight count indictment. Count one charges a conspiracy during 1998 to April 2012 to violate Title 18, United States Code, Section 2422(a), inducement to travel in interstate commerce with intent to engage in illicit sexual conduct; and Title 18, United States Code, Section 1952(a)(3)(1), use of facilities in interstate commerce in aid of racketeering enterprises. The maximum possible penalty for the conspiracy count includes imprisonment of five years, a $250,000 fine, three years of supervised release, and a $100 special assessment.

Count two charges the defendant with use of facilities in interstate commerce in aid of a racketeering enterprise on August 23, 2011. The maximum possible penalty includes imprisonment of five years, a $250,000 fine, three years of supervised release, and a $100 special assessment.

Count three charges the defendant with inducement to travel in interstate commerce with intent to engage in illicit sexual conduct on February 24, 2009. The maximum possible penalty for this count includes imprisonment of 20 years, a $250,000 fine, three years of supervised release, and a $100 special assessment.

Count four charges the defendant with a money laundering conspiracy during March 2005 to January 2012. The maximum possible penalty includes imprisonment of 20 years, a $500,000 fine, three years of supervised release, and a $100 special assessment.

Counts five through eight charge money laundering offenses on particular dates during 2007 and 2011. The maximum possible penalty for each count includes imprisonment of 20 years, a $500,000 fine, three years of supervised release, and a $100 special assessment.

The indictment also includes criminal forfeiture allegations, seeking forfeiture of two vehicles and three bank accounts, as well as a money judgment equal to the value of property constituting or derived from proceeds obtained as a result of the offenses.

Tammy L. Schuck, age 41, of Omaha; Tabatha N. Ashburn, age 22, of Junction City, Kansas; and Christopher J. Tierney, age 31, of Omaha, are charged in a nine count indictment. Count one charges the defendants with a conspiracy during April 2008 to January 2012 to violate Title 18, United States Code, Section 2422(a), inducement to travel in interstate commerce with intent to engage in illicit sexual conduct; and Title 18, United States Code, Section 1952(a)(3)(1), use of facilities in interstate commerce in aid of tacketeering rnterprises. The maximum possible penalty for the conspiracy count includes imprisonment of five years, a $250,000 fine, three years of supervised release, and a $100 special assessment.

Counts two through four charge the defendants with use of facilities in interstate vommerce in aid of tacketeering enterprises on particular dates. The maximum possible penalty for each of these counts includes imprisonment of five years, a $250,000 fine, three years of supervised release, and a $100 special assessment.

Counts five through seven charge the defendants with inducement to travel in interstate commerce with intent to engage in illicit sexual conduct on particular dates. The maximum possible penalty for each count includes imprisonment of 20 years, a $250,000 fine, three years of supervised release, and a $100 special assessment.

Count eight charges the defendants with a money laundering conspiracy during April 2008 to January 2012. The maximum possible penalty for this count includes imprisonment of 20 years, a $500,000 fine, three years of supervised release, and a $100 special assessment.

Count nine charges Tammy L. Schuck with money laundering on June 24, 2010. The maximum possible penalty for this count includes imprisonment of 20 years, a $500,000 fine, three years of supervised release, and a $100 special assessment.

The indictment also includes criminal forfeiture allegations, seeking a money judgment equal to the value of property constituting or derived from proceeds obtained as a result of the offenses.

The indictments resulted from a joint investigation conducted by the Omaha Police Department, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigations Division.