Alleged key members of Chinese illegal brothel syndicates charged with bribery offences.
ALLEGED key members of Chinese syndicates said to control much of Melbourne's illegal brothel trade have been charged with paying tens of thousands of dollars in bribes to a local government official.
The Sunday Age can reveal four people have been charged over the past 12 days with bribery or illegal prostitution, as part of an alleged multimillion-dollar racket that is said to have spanned six years and at least 15 Melbourne suburbs.
Among those charged is Xue Di ''Jenny'' Yan, an alleged king-pin of the illegal brothel industry.
The investigation, led by police detective sergeant Nick Goodear throughout 2010, was the biggest and most intensive operation targeting the illegal brothel sector in several years.
However, it focused only on Melbourne's inner and outer northern suburbs. Despite the charges and arrests, dozens of illegal brothel operators continue to run prostitution services throughout Melbourne with relative impunity.
Many of the illegal brothels are advertised in local newspapers and openly discussed online. Some allegedly linked to those charged remain open.
Today's revelations are part of an expose of criminality in Australia's sex industry produced in conjunction with the ABC's Four Corners program.
Police raids on up to a dozen illegal brothels in November 2010 netted evidence to be used in court to allege that Yan, with Anon Lu and Tony Tang, controlled several brothels in Melbourne's inner city and northern suburbs. They are accused of bribing former council officer Ken Wolfe in order to dodge inspections by police and council officials.
Wolfe, who was responsible for shutting down suspected illegal brothel premises by charging them with breaching planning regulations, resigned as the City of Yarra's co-ordinator of planning enforcement after his town hall office was raided last November.
He pleaded guilty in August to taking $130,000 in bribes from illegal brothel operators across Melbourne in exchange for information about inspections and raids.
Rumours that sex was being offered at Richmond's Club Striptease led to it being visited by police one day last year. They
found no sex on offer that day - because, they allege, the owner knew they were coming.
In a call caught on a phone tap, club owner Neil Hancock is alleged to have told a council worker: ''Mate, without that phone call I would've been f---ed.'' Over the next week, he is accused of depositing $250 into the council worker's TAB account, as part of payments that would allegedly total more than $12,000 over four years.
Hancock, 65, has now been charged with 52 offences, including bribing a public official with payments totalling $12,720 between July 25, 2006, and November 1, 2010. It is alleged sexual services were offered at his club without a licence.
Yan, 49, was charged with 35 offences including bribing a public official to the tune of $23,827.41 and working as a sex work provider without a licence. Hao Yong ''Tony'' Tang was charged with 106 offences, including making corrupt payments to a council official totalling $77,960 between October 2, 2004, and October 30, 2010, working as a sex work provider without a licence and living on the material benefits of prostitution.
Anon Lu, 50, was charged with 37 offences, including inciting a local government official to supply information about the investigations into alleged illegal brothels, making corrupt payments of $20,827.41 and working as a sex work provider without a licence.
In Melbourne Magistrates Court last week, magistrate Mary Kay Robertson extended bail for all four accused, subject to conditions including they not attend an international point of departure or contact prosecution witnesses other than the police informant.
De Gen Zheng, 55, of Preston, has been charged, over an alleged illegal brothel in East Melbourne, with recklessly carrying on a sex work business without a licence, carrying on a sex work service without a licence and knowingly deriving a benefit from the earnings of sex work. He will appear before the Magistrates Court in December.
Frequently Asked Questions about this Article…
What is the Melbourne illegal brothel bribery case about?
The article explains an investigation into alleged Chinese-led illegal brothel syndicates in Melbourne. Police say key figures have been charged with paying tens of thousands of dollars in bribes to a local government official to dodge inspections. The probe, led in 2010 by Detective Sergeant Nick Goodear and publicised alongside the ABC’s Four Corners, involved raids and multiple charges for bribery and operating without licences.
Who were the people charged and what bribery amounts are mentioned?
Names and alleged amounts in the article include: Ken Wolfe (former council officer) who pleaded guilty to taking about $130,000 in bribes; Xue Di “Jenny” Yan charged with bribery totalling $23,827.41; Hao Yong “Tony” Tang accused of corrupt payments totalling $77,960; Anon Lu alleged to have made corrupt payments of $20,827.41; and club owner Neil Hancock charged with payments totalling $12,720. Other accused include De Gen Zheng, charged over an alleged East Melbourne brothel.
How widespread was the alleged illegal brothel racket in Melbourne?
According to the article, police allege the racket was a multimillion-dollar operation that ran for about six years and spanned at least 15 Melbourne suburbs, with the investigation focusing on inner and outer northern suburbs. It also notes dozens of illegal brothels continue to operate across Melbourne, some openly advertised in newspapers and online.
What enforcement actions did police and councils take in the investigation?
Police conducted raids on up to a dozen alleged illegal brothels in November 2010, collecting evidence used in court. The City of Yarra town hall office was raided as part of the probe, and the council’s planning enforcement coordinator resigned. The article says suspected illegal brothels can be shut down by charging them with breaching planning regulations.
What were the court outcomes and bail conditions reported?
The article reports that in Melbourne Magistrates Court a magistrate extended bail for the four accused, subject to conditions such as not attending international points of departure and not contacting prosecution witnesses other than the police informant. Ken Wolfe pleaded guilty in August to taking bribes; other accused faced multiple charges and were on bail pending further court appearances.
Are illegal brothels still operating despite the raids and charges?
Yes. The article states that despite the arrests and charges, dozens of illegal brothel operators continue to run prostitution services throughout Melbourne with relative impunity, and some venues linked to the charged individuals remain open and are advertised publicly.
What links does the article make between council staff and the alleged corruption?
The article alleges a council officer, Ken Wolfe, supplied information about inspections and raids in exchange for bribes and later pleaded guilty to taking about $130,000. It also describes alleged instances where club owners deposited money into a council worker’s accounts after being warned about police visits, suggesting some council staff information was used to avoid enforcement.
What implications does this story have for property or everyday investors in Melbourne?
The article highlights that illegal uses of premises (alleged brothels) and breaches of planning regulations were central to the investigation, and that bribery was allegedly used to dodge inspections. For investors, the story illustrates how undisclosed illegal activity at commercial or residential properties can attract enforcement action, raids and legal scrutiny—issues that can affect property use and reputation in affected Melbourne suburbs.
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