A Tucson man who ran a house of prostitution for years will have to forfeit more than $1 million to the Arizona Attorney General's Office, a Maricopa County jury ruled Monday.
During the last three weeks, jurors in a Superior Court in Phoenix heard evidence alleging that John LaVoie, 52, has been running a brothel in Tucson in a home on East Lester Street near North Campbell Avenue for the last seven years, said Alex Mahon, Arizona assistant attorney general.
Several women testified against LaVoie — some who admitted they were prostitutes and several who said LaVoie tried to recruit them to work for him, Mahon said.
Defense attorney Brad Roach said LaVoie has always maintained that he operated a massage parlor at the house, called Angel's Heaven, and he fired anyone who engaged in sexual activity at the business.
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LaVoie blamed the civil prosecution against him on the University of Arizona wanting the property, which is near University Medical Center, Roach said.
"We're assessing our options, but it's by no means over," Roach said when asked about an appeal.
If the verdict stands, Roach said, LaVoie stands to lose everything, because he will have to sell all of his properties to satisfy the judgment.
Mahon said financial experts testified that they believe LaVoie made somewhere between $700,000 and $2 million over the seven years.
After deliberating seven hours over two days, "the jury found that John LaVoie unlawfully gained $850,000 from criminal practices," Mahon said.
The jurors ordered LaVoie to forfeit $850,000, more than $80,000 in cash seized from the home and the home itself, which Pima County records show has a full cash value of $263,238.
There are three reasons for pursuing a civil forfeiture action: to take the proceeds of illegal activities away from a defendant, to take away the means to continue such activities, and to use the seized assets for law-enforcement purposes, Mahon said.
The jurors were told the house of prostitution is still in operation, Mahon said.
"If I was aware of an ongoing investigation, I couldn't and I wouldn't be able to comment on that, but his criminal liability continues as long as he continues," Mahon said.
According to Arizona Daily Star archives, LaVoie was arrested in March 2005 on suspicion of operating a massage parlor without a license and employing unlicensed massage therapists. He was charged with fraud, knowingly failing to pay Arizona personal income tax with intent to evade, knowingly failing to file tax returns and illegally conducting a business.
However, the charges were dismissed because an undercover detective compromised the investigation by having sex with a woman involved in the case.
According to police records, Michael Moser, who was suspended and demoted and has since retired, told investigators that he used his police vehicle to meet the woman after work and had sex with her.
During the trial, jurors heard testimony from several women who said Moser would "twist their arms" whenever they gave him answers he didn't like, Roach said.
"There are serious questions about how the investigation was conducted," Roach said.
