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FORMER OWNER OF HARTFORD BROTHEL PLEADS GUILTY TO MULTIPLE FEDERAL CHARGES South End's "Alpha Club" operated for more than 25 years; Acting HPD Chief Mark Pawlina Pledges to Continue to Working Closely with FEDS.

Kevin J. O'Connor, United States Attorney for the District of Connecticut, announced that GAIL GAER, age 63, of 115 Apple Hill, Unit 31, Newington, Connecticut, pleaded guilty today to conspiring to use an interstate facility to promote prostitution, money laundering, and conspiring to smuggle bulk currency into the United States. In a hearing before United States Magistrate Judge Donna F. Martinez in Hartford, GAER admitted that between 1976 and 2002, she had owned and operated the Alpha Leisure & Health Club, Inc. located at 156A Franklin Avenue, Hartford, Connecticut, and that the business was a house of prostitution. In 2002, she lost control of the business but continued to receive monthly payments.

In pleading guilty to conspiracy to use interstate facilities to promote prostitution, GAER admitted that from 1997 to October 8, 2003, she conspired with others to use interstate wires to promote and carry on a business involving prostitution. Specifically, she acknowledged that the Alpha Club accepted credit card payments for prostitution services and processed the charges over interstate wires. The funds were subsequently transferred to the Alpha Club's checking accounts and used to promote and carry-on the prostitution business by paying for advertising, rent, utility bills, supplies, salaries, and other expenses of operating the Alpha Club.

With regard to the money laundering charge, GAER acknowledged that on May 8, 2000, she caused a financial transaction affecting interstate commerce to be conducted by causing an Alpha Club company check in the amount of $3850 to be issued and negotiated for the lease of the building in which the Alpha Club operated.

Finally, with regard to the conspiracy to smuggle bulk currency into the United States, GAER admitted that between March 2001 and March 2002, she conspired with others to smuggle over $1 million in cash from Switzerland into the United States by shipping it in multiple containers via a private delivery service.

According to documents filed with the court, between 1998 and October 2003, the Alpha Club received approximately $5.3 million in gross receipts.

"This was a significant and sophisticated prostitution operation that existed for too long," U.S. Attorney O'Connor stated. "This Office and our federal law enforcement partners are committed to assisting the Hartford police in rooting out illegal activity in Hartford's neighborhoods."

U.S. Attorney O'Connor noted that the investigation is ongoing.

"The Hartford Police Department will continue to work closely with the U. S. Attorney's Office and federal law enforcement officials to positively impact the quality of life in our neighborhoods," Acting Chief Mark P. Pawlina of the Hartford Police Department added. "I am very proud of the members of the Hartford Police Department, and very thankful for all the federal law enforcement efforts as we work together on this continuing investigation."

As a result of her pleas of guilty, GAER faces up to 20 years imprisonment and a $500,000 fine for money laundering and up to five years imprisonment and a $250,000 fine on each of the conspiracy counts. She also agreed not to contest the forfeiture of proceeds of her criminal conduct, which totaled more than $750,000. She is scheduled to be sentenced by Chief United States District Judge Robert N. Chatigny on June 11, 2004.

This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation and Federal Bureau of Investigation, and detectives of the Vice Squad of the Hartford Police Department. The case is being prosecuted by Assistant United States Attorney James G. Genco.