Landlord denies prostitution charges, case heads to federal grand jury

Friday, January 21, 2000


URL: http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2000/01/21/state1554EST0039.DTL


(01-21) 12:54 PST BERKELEY, Calif. (AP) -- Berkeley restaurateur and landlord Lakireddy Bali Reddy has denied charges he brought at least teenage girls from India for sex.

``I pray to God I get out of here,'' Reddy, 62, told the San Jose Mercury News during a tearful interview Thursday in the Alameda County jail where he has been held on federal charges since last Friday. ``I don't know who can help me. A lot of people come to me -- I always help them. God will help me.''

Reddy's bail hearing was postponed until Tuesday. He's charged with one count each of importing ``aliens for the purpose of prostitution and for other immoral purposes,'' and encouraging and inducing people to illegally ``enter and reside in the United States,'' according to his arrest warrant filed in federal court in Oakland. A grand jury will likely begin next week investigating the case.

On Thursday, U.S. Sen. Dianne Feinstein got involved, saying she wanted to aid the young girls who are witnesses in the case.

Feinstein, D-Calif., said she would introduce legislation to protect immigrants who testify in criminal exploitation cases from being deported.

Court records allege that Reddy, who owns more than 1,000 rental units worth an estimated $50 million, set up an elaborate scheme to bring in illegal immigrants from India, including three teenage girls with whom he allegedly had sexual relationships.

Two of those girls suffered carbon monoxide poisoning in their Reddy-owned apartment the day before Thanksgiving.

Seventeen-year-old Sitha Vemireddy died and her 15-year-old sister was treated and released the next day. The accident set off a string of events leading to the discovery that Reddy had brought the girls to California under false pretenses, investigators said.

Police and federal agents say they are investigating whether the case involves other victims and suspects.

``We believe the likelihood is that he could have engaged in this activity previously,'' said Chuck DeMore, district director for the U.S. Immigration and Naturalization Service.

Authorities suspect the girls may have been sexually abused by other men, although there's no indication they were part of an organized prostitution ring, DeMore added.

The sister of Sitha Vemireddy, who died in the accident, and her roommate told authorities that Reddy, on his frequent trips back home to India, had been having sex with them since they were 12 and 14 years old, according to a federal affidavit. They said he eventually brought them to the United States, along with Sitha, so he could continue having sex with them.

Reddy denied that he purchased the girls from their parents in India and said it was ``nonsense'' to suggest he brought them to the United States for sex. But he refused to answer when asked directly if he'd had sex with any of the girls.

Though authorities have described two of the girls as 15 and 16, Reddy said he thought they were all over 18.

Officials said Reddy may have arranged for a number of adults and children to enter the United States, using false names and bogus visas that capitalized on a program to help high-tech firms fill jobs that require special skills. Many of these individuals were women who labored long hours with little compensation, said Berkeley police Capt. Bobby Miller, who said the case ``may involve other cities, counties and states.''