A BROTHEL madam who has been accused of being one of the key figures in Melbourne's illegal sex industry paid thousands of dollars in bribes to a top-ranking council official.
Xue "Jenny" Yan made the payments while running three illegal brothels in inner Melbourne as a way to get advance warning of raids in the area and cover up the illegal activity.
It is believed that Yan made payments in excess of $20,000 to keep the operation hidden from authorities between 2008 and 2010.
Yan pleaded guilty in the County Court to operating as a sex work provider without a license at two venues in Richmond, on Swan St and Madden Grove, and a Nicholson St, Fitzroy North, establishment.
She also pleaded guilty to paying a former Yarra City Council official, who cannot be named, to warn her of raids in his area.
At a Magistrates' Court committal hearing last year Yan emphatically denied the charges and was due to stand trial over the offending yesterday.
Instead she pleaded guilty and the matter has now been adjourned for a plea hearing later this year.
The former top-ranking council official at the centre of the scam was jailed for three years and two months in 2011 after he pleaded guilty to accepting bribes.
He said he accepted more than $130,000 in bribes from various illegal brothel operators in the Yarra area and used the money to fund his gambling addiction.
At least two other illegal brothel owners are facing charges over the bribes scandal.
The council official, who was responsible for stamping out illegal brothels in his area, said he was well aware of illegal activities at businesses in Yarra council including in Richmond and Fitzroy North.
The man said a co-accused of Yan, Anton Lu, made regular cash payments on a monthly basis and after some time increased the payments for added protection.
Other payments were allegedly deposited directly into the man's Tabcorp account.
Appearing at court alongside Yan yesterday Lu pleaded guilty to one charge of bribery and two charges of illegally operating as a sex work provider.
Lu and Yan, who are both on bail, will return to court today.
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