Brothel owner who built secret room escapes ban

By Nino Bucci, Nick McKenzie and Richard Baker

UpdatedJuly 17, 2015 — 2.52pmfirst published at 2.48pm

A Melbourne brothel operator who built a secret compartment to hide immigrants illegally employed as sex workers has been fined $65,000 and ordered to have regular checks of his business, but will escape a lifetime ban despite the urgings of authorities.

Consumer Affairs Victoria argued that Xian Yang Meng should be stripped of his brothel licence because of his conduct as the owner of Paradise Playmates in Seaford.

Jian Qing Xu leaves VCAT at an earlier hearing.Credit:Jason South

A Chinese woman known as LFQ was found by police hiding in a tiny wall cavity, accessible by a secret door and lockable from the inside, during an inspection in December 2013.

But the Victorian Civil Administrative Tribunal found that Meng, known as John Meng, was not responsible for hiring the worker or checking her visa status, and should be allowed to keep his licence.

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The cavity where a brothel worker was found.

Meng's wife, Jian Qing Xu, who is known as Amy Meng and was managing the brothel, was banned after it was found she was responsible for checking the visa status of LFQ.

Meng and Xu were prosecuted for breaching the Sex Work and Migration acts.

Meng wrote in a letter to the tribunal that he believed it would have been easier and a better investment to operate an illegal brothel, but that he had instead decided to embark on "this difficult road".

He wrote that he never stopped women from leaving or had sex with them to demonstrate he had treated his workers well.

But VCAT member Elizabeth Wentworth wrote in her findings, which were published this week, that it was unclear why Meng believed he deserved credit for not operating an illegal brothel, and for not having sex with his employees.

She wrote that constructing the dark, airless cavity was "breathtakingly irresponsible, foolish and potentially dangerous conduct".

Police were unable to find the cavity on an earlier visit despite being told it was there by an informer. When it was discovered, officers had to break in as it could not be opened once locked from the inside.

LFQ, who served as many as 185 clients during her two months at the brothel, was hiding amongst electrical wiring and insulation in the wall. She has since been voluntarily deported.

"Meng demonstrated no insight at the hearing into the inadequacies of his conduct or the seriousness of his actions," Ms Wentworth found.

"He gave inconsistent and wholly implausible evidence which he embellished in running. He was an unimpressive witness."

As part of his reprimand, Meng must report to Consumer Affairs every four months for the next two years.

He must report who is employed as a sex worker, and whether their visa status has been verified using an online system.

Xu wrote in her letter to Ms Wentworth that she was deeply guilty that her failures led to LFG working illegally, and wanted to continue managing the brothel.

She had been unable to sleep well because of "tremendous mental pressure".

"She has been exposed to the media, including the Chinese media and electronic media and their use of vulgar language and poor coverage have led her to the brink of collapse," a summary of the letter stated.

Ms Wentworth found there was no evidence Meng or Xu had been involved in human trafficking, or had previously hired workers that did not have a visa, and they had no criminal record.