United States Attorney's Office District of Connecticut
Press Release

OWNER AND MANAGER OF HARTFORD'S ALPHA CLUB CHARGED IN 38-COUNT INDICTMENT

Kevin J. O'Connor, United States Attorney for the District of Connecticut, Michael J. Wolf, Special Agent in Charge of the Connecticut Federal Bureau of Investigation, and Joseph A. Galasso, Special Agent in Charge of the Boston Field Office of the Internal Revenue Service – Criminal Investigation, announced that a federal grand jury sitting in Hartford today returned a 38-count indictment against ANGELA MOUTSATSOS, age 49, of 1086 New Britain Avenue, West Hartford, Connecticut, charging her with violations of federal law including conspiracy to use an interstate facility to promote prostitution, using interstate facilities to promote prostitution, money laundering, and conspiracy to smuggle bulk currency into the United States. Also charged in three counts of the Indictment is REBECCA M. ARROWOOD, age 32, of 474 East Altamonte Drive, Suite 108-185, Altamonte Springs, Florida, who is alleged to have conspired to use an interstate facility to promote prostitution and, in two counts, with using interstate facilities to promote prostitution. The indictments arise from their activities at the Alpha Leisure & Health Club, Inc. located at 156A Franklin Avenue, Hartford, Connecticut, which is alleged to have been a house of prostitution.

The Indictment alleges that between 1996 and 2002, MOUTSATSOS was an employee or officer of the Alpha Club, and that in 2002 she took control of, and became the principal owner of, Alpha Club. ARROWOOD is alleged to have worked as a manager at the Alpha Club in 2003. The Indictment charges that between 1997 and October 8, 2003, MOUTSATSOS and ARROWOOD conspired with each other, and with others, to use interstate wires to process credit card charges in payment for sexual acts and subsequently using the proceeds to promote or carry on a prostitution business. It also charges MOUTSATSOS with 13 counts of using an interstate facility to promote prostitution, 23 counts of money laundering and one count of conspiring to smuggle bulk currency in to the United States. This last charge of conspiracy to smuggle bulk currency into the United States relates to conduct that occurred between March 2001 and March 2002, when she is alleged to have 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.

"This investigation is ongoing and the U.S. Attorney's Office and our federal law enforcement partners will continue to assist the Hartford police in rooting out illegal activity in all of Hartford's neighborhoods," U.S. Attorney O'Connor stated.

"The FBI remains committed to working with all of our local, state and federal law enforcement partners to protect the quality of life for the citizens of our state," FBI Special Agent in Charge Wolf stated.

"The Alpha Club promoted itself as a fitness facility," IRS-CI Special Agent in Charge Galasso added. "However, these indictments of individuals who allegedly promoted this illegal activity are part of law enforcement's wellness program for Hartford's South End."

"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 stated. "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."

If convicted, MOUTSATSOS faces up to 20 years imprisonment and a $500,000 fine for each of the money laundering counts, up to five years imprisonment and a $250,000 fine on each of the conspiracy counts and on the count of using an interstate facility to promote prostitution. She also faces three counts of criminal asset forfeiture by which the Government, if successful, can seize over $210,000 in assets. ARROWOOD, if convicted, faces up to five years imprisonment and a $250,000 fine on the conspiracy count, and the same penalties on each of the counts charging use of an interstate facility to promote prostitution.

United States Attorney O'Connor stressed that an indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial at which it is the Government's burden to prove guilt beyond a reasonable doubt.

In related cases, on March 17, 2004, Gail Gaer of Newington, Connecticut, admitted that she owned and operated the Alpha Club between 1976 and 2002, and pleaded guilty to conspiring to use an interstate facility to promote prostitution, money laundering, and conspiring to smuggle bulk currency into the United States. On March 18, 2004, Reed Jaffe of Rocky Hill, Connecticut, pleaded guilty to conspiring to smuggle bulk currency into the United States. On March 23, 2004, Josephine Ramondetta of Bristol, Connecticut, admitted that she worked as a manager and supervisor at the Alpha Club from 1997 to 2003, and pleaded guilty to conspiring to use an interstate facility to promote prostitution.

The investigation is being conducted by Special Agents of the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation, and by detectives from the Vice Squad of the Hartford Police Department. These cases are being prosecuted by Assistant United States Attorney James G. Genco.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov