Feds: RI woman to admit fraud for securing loans for spa, a prostitution site

BOSTON -- A Woonsocket woman will admit to fraudulently securing federal loans during the COVID pandemic for a Massachusetts spa where authorities say her workers engaged in prostitution.

Chynna Savath, 56, agreed to plead guilty to two counts of wire fraud for obtaining $29,646 in fraudulent payments for Thai Body Work and Deep Tissue, LLC, through the Paycheck Protection Program and Economic Injury Disaster Loans program under the CARES Act.

Savath will admit to falsely representing on loan applications in 2020 that she was operating a legitimate massage parlor at 13-25 Main St., Suite B, in Franklin, Mass. In doing so, Savath certified that she was not engaged in any illegal activity, despite knowing that her employees engaged in prostitution with customers and collected a portion of fees paid by each customer. Savath no longer owns the business.

Under the plea agreement, Savath will not face prison time, but will be placed on probation for three years. She must pay $29,646 in restitution and forfeit an equal amount, court records show.

Savath’s lawyer, Daniel Cloherty, declined comment.