Massachusetts business owner sentenced after receiving aid for business where workers prostituted themselves with clients

BOSTON — The former massage parlor owner was convicted on Thursday of filing and obtaining fraudulent pandemic-related loans for her illicit business where workers engaged in commercial sex acts with clients.

Chynna Savath, 57, of Woonsocket, RI, was sentenced by US District Court Judge Richard G. Stearns to three years probation. Savath was also ordered to pay restitution in the amount of $34,391. On January 20, 2022, Savath pleaded guilty to two counts of wire fraud.

Savath is the former owner of Thai Body Work, a massage parlor in Franklin, Mass. In June 2020, Savath submitted fraudulent claims to the Small Business Administration for COVID-19 relief through the Paycheck Protection Program and the Coronavirus Economic Disaster Loan Program. Aid, Relief and Economic Security Act. In the applications, Savath falsely certified that the applicant was not engaged in any illegal activity, although she knew that her Thai Body Work employees engaged in prostitution with clients and that she received part of the fees paid. by each customer. In total, Savath obtained $34,391 in fraudulent payments from the EIDL and PPP loan programs.

United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent for Homeland Security Investigations in Boston; Ketty Larco Ward, Inspector in Charge of the United States Postal Inspection Service; and Boston Police Acting Commissioner Gregory Long made the announcement. Special assistance was provided by the Cambridge, Boston, Franklin and Lexington police departments. Assistant U.S. Attorneys Elysa Wan of Rollins’ Criminal Division and Assistant Suffolk County District Attorneys Alyssa Tochka and Luke Goldworm, who were appointed as Special Assistant U.S. Attorneys, prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to mobilize Department of Justice resources in partnership with government agencies to scale up enforcement and prevention efforts. pandemic-related fraud.

Anyone with information about alleged attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) hotline at 866-720-5721 or via NCDF’s online complaint form at: https://www. .justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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