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ABC News
ABC News
National
By Stacey Lee

Chinese national admits to money laundering as part of 'large-scale prostitution' ring

Hon Leung Chu leaves the Adelaide Magistrates Court.

A Chinese national, described in court as the main player in an nationwide 'large-scale prostitution' ring, has pleaded guilty to money laundering charges.

Hon Leung Chu, 33, was arrested at his home in Northgate, in Adelaide's inner north-east, in April last year.

The refugee is accused of running a nationwide prostitution ring from his apartment.

Police say they located a "brothel call centre" at the premises and seized computers, mobile phones and $16,000 cash.

In Adelaide Magistrates Court Chu admitted to knowingly laundering $44,000 between November 2017 and March 2018.

His lawyer, James Caldicott, conceded Chu was the head of the criminal organisation.

"His involvement was central. He was the main contributor," Mr Caldicott said.

"It started off relatively small and snowballed out of control.

"More people were brought on board and, effectively, he lost control."

Mr Caldicott said his client accepted that "he laundered the entire amount" and was "incredibly contrite and apologetic".

Chu's future in Australia unclear

The court heard Chu, who was born in Hong Kong, is currently living in Australia on a refugee visa.

His lawyer asked the magistrate to consider suspending Chu's sentence because there was "a real risk he will be deported to Hong Kong".

His wife and newborn son are both Australian citizens.

Magistrate Alfio Grasso ruled Chu's bail would continue, ahead of his sentencing in October.

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