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Bookstore Owner nailed in Fed Bust

Houston- Houston vice officers and immigration officials arrested 25 people Thursday, including the head of what authorities said was one of the largest prostitution organizations in the city, during simultaneous raids of 17 businesses and homes.

Among those arrested was Evan Loewenstein, 60, who police said owns or has a hand in all of the raided establishments, most of which are identified as “spas” or video stores.

He and six others arrested during the sweep are expected to be charged with engaging in organized criminal activity – prostitution, authorities said.

A search of Loewenstein’s home in the 2000 block of Diamond Springs turned up three cashier’s checks totaling more than $1 million and $25,000 cash inside a safe, Houston Police Department Vice Division Capt. Steve Jett said.

Authorities also froze 25 accounts at various banks around the city, police said.

Federal officials also are investigating whether any of the businesses were involved in immigrant trafficking.

Five of those arrested Thursday were women in the the country illegally, immigration officials said, and were arrested by U.S. Immigration and Customs Enforcement agents.

“At this time, we do not have any evidence to show that migrant trafficking occurred in this case,” said Scott Hatfield, the assistant special agent in charge of ICE’s Houston office.

Police said they began focusing on Loewenstein last year after several prostitutes told them he was a “big fish” in the adult entertainment spa business.

Investigators are not sure how much money the businesses may have generated, but called them a sophisticated and structured operation. Police said they believe Loewenstein’s organization is the biggest of its kind in Houston.

Others arrested Thursday included Loewenstein’s wife, Vickie Hegar, 40, of the 5700 block of Overton Park in Katy; Carolyn Cheatwood, 62, of the 19300 block of Quiet Brook, who police said served as a bookkeeper and records keeper; Khoai Vuong, 52, of the 15100 block of Gran Vista; Dan Light, 56, of the 2500 block of Lazy Lake; James Drew, 60, of the 22800 block of Williamschase in Katy; and Ted Wright, 58, who investigators said was involved in the collection and deposit of money from the businesses.

One of the business owners sought by police Thursday was not arrested because she was out of state, police said.

The 18 others arrested were employees working at the spas or at three bookstores owned by Loewenstein or his associates. Jett said profits from the spas may have been funneled to the bookstores.

Police said undercover officers successfully made numerous prostitution transactions inside each of the spas during the six-month investigation.

The probe was spurred in part by public demands that police crack down on such businesses, HPD officials said.

“We have a new chief in town who’s given us authority to go in and take care of this problem,” Jett said.

“The numbers have grown over the years. He recognizes that the citizens have demanded we get in there and make arrests in these places and run them out of their neighborhoods.”

To combat prostitution at some 300 “spas” across the city, Hurtt has changed a longstanding HPD policy to allow undercover officers to disrobe entirely to make sex-for-pay cases.

Additionally, HPD has begun to target the owners and operators of prostitution businesses on organized-crime charges.

After raids at 11 businesses last November, authorities agreed to drop prostitution charges against nearly 50 women in exchange for their testimony against the owners.

Authorities intend to seize all of the properties targeted in Thursday’s sweep and sell them.

They are worth an estimated $10 million to $20 million, Jett said.

Assets at each business were seized, but did not amount to much because the safes there are emptied regularly, Jett said.

 

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