U.S. jury likely in Berkeley landlord sex case
Jim Herron Zamora
OF THE EXAMINER STAFF
Jan. 21, 2000
©2000 San Francisco Examiner

URL: http://www.sfgate.com/cgi-bin/article.cgi?file=/examiner/archive/2000/01/21/NEWS13350.dtl



Accused of smuggling Indian girls into U.S.

BERKELEY - A federal grand jury will probably begin next week to investigate the case of Berkeley's largest landlord, who is accused of smuggling teenage girls from India for sexual gratification.

Lakireddy Bali Reddy, 62, was due in federal court in Oakland on Friday at a hearing to set bail in the case.

Reddy, who controls an estimated $50 million to $60 million in East Bay real estate, has been held without bail since his arrest Jan. 14.

Federal prosecutors would not say Thursday if they plan to argue to keep Reddy behind bars.

Reddy is an immigrant from India who has been in the East Bay since 1960 when he attended graduate school at UC-Berkeley.

Authorities may consider him a flight risk: Reddy has access to large amounts of money and many overseas connections, particularly in India, according to federal officials.

Reddy's attorney, Ted Cassman, did not return phone calls. He earlier asserted his client's innocence, saying: "Mr. Reddy is a long-standing, law-abiding citizen of Berkeley. Everybody who knows him knows that these charges are not true, and the allegations will be proven not true."

Prosecutors and investigators would not say if any additional charges would be presented to the grand jury.

Reddy is 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.

Court records allege that Reddy set up an elaborate scheme to bring in illegal immigrants from India, including three teenage girls with whom he allegedly had sexual relationships.

Authorities said the investigation, which Berkeley police began

in December, may extend far beyond the three girls to include other current or former employees.

By law, federal prosecutors must either hold a preliminary hearing or obtain a grand jury indictment against a defendant within 10 working days of that person's first court appearance.

In the Northern California federal judicial district, prosecutors usually prefer to take their cases to a grand jury, which operates behind closed doors, said spokesman Matt Jacobs.

Jacobs is prohibited by federal law from discussing the grand jury probe.

In addition to indicting suspected criminals, a federal grand jury has wide powers to investigate a case and compel witnesses to testify.

A person summoned before a grand jury can invoke the right to refuse to testify in order to avoid self-incrimination. But that person must still produce all documents and business records requested by the grand jury.

Records could prove pivotal

In the Reddy case, that could prove pivotal because investigators are looking into the possibility that he arranged for immigrants to come to the United States using false visas.

Reddy and his family own more than 1,000 rental units in Berkeley and Oakland as well as Pasand, a well-known Indian restaurant on Shattuck Avenue.

Investigators will be taking a close look at Reddy's business records to determine if he used illegal workers, violated labor laws or tax codes, or engaged in any fraudulent activity.

"There are now federal charges, but there may also be state charges," said Berkeley Capt. Bobby Miller. "We just have to see where this investigation leads us."

Berkeley police allege Reddy forced people to work at his restaurant or his rental units for long hours for little or no pay.

In most cases, the victims were given only free room and board in his apartment units in return, Miller said.

"This case started in Berkeley, but we honestly do not know how far it goes," Miller said. "We have found so far that it extends outside this country, so we needed the help of the federal government."

Started with girl's death

Berkeley police began investigating Reddy after two of the girls he is accused of smuggling suffered carbon monoxide poisoning the day before Thanksgiving.

One of the girls, then identified as 17-year-old Sitha Vemireddy - a name that turned out to be bogus - and her 15-year-old sister were found unconscious in their one-bedroom apartment at 2020 Bancroft Way by their roommate. The girl identified at the time as Sitha Vemireddy was later pronounced dead.

"We asked: 'What's wrong with this picture,' " said Berkeley City Attorney Manuela Albuquerque, whom detectives on the case consulted because she is an immigrant from India.

"It seemed very suspicious for these two young girls to be left alone in that apartment by their parents," said Albuquerque. "That seems out of character for a family from India."

About that time, Berkeley detectives also received anonymous letters indicating the identities of the girls and their purported parents were false.

After questioning by Berkeley police detectives and Immigration and Naturalization Service investigators, the surviving girl and two adults - a brother and sister falsely claiming to be her parents - admitted their true identities.

According to his arrest warrant affidavit, Reddy had sexual relations with the girls in India and brought them to the United States to continue that relationship.

Court records indicate the girls' roommate was also brought to

Berkeley for similar purposes.

Call for other witnesses

Albuquerque and Miller have issued a plea for other victims or witnesses to come forward and help investigators in the case. But that could be complicated, because many potential witnesses are immigrants who may be here illegally.

INS spokeswoman Sharon Rummery said witnesses in criminal cases will not be deported during the prosecution of the case. "But by law their immigration status must be revisited afterward," she said.

"We are concerned that if any of the victims come forward federal authorities will deport them," said Hina Shah of the Asian Law Caucus, which has offered free legal advice to victims or witnesses in the case.

"What we are worried about is the possibility that girls who are sold by their family members may be deported to homes where they will suffer further persecution," Shah said.

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.

Indian community shocked

Meanwhile, on Thursday, East Bay Indians praised Reddy for his assistance to many local immigrants and aspiring entrepreneurs.

"This is shocking news for us," said Amky Reddy, owner of Swarna Restaurant in Walnut Creek and no relation to the suspect. "He is like a father figure to the community."

Amky Reddy is a former Pasand employee who was helped out by Reddy in opening his own restaurant in 1990.

Lakireddy Bali Reddy is from Valvavam, a village near the city of Vijawada, in the state of Andhra

Pradesh in India. He has helped many fellow residents come to the United States and get started, his supporters said.

"I am very surprised he is arrested," said Jay Rao, owner of Swagat Restaurant in Milpitas and a native of Valvavam.

Other business people of Indian descent in the East Bay shared Rao's

surprise.

"Wow, I'm shocked to hear this - He is a very well-respected in this community," said Kirpal Khanna, owner of Bazaar of India, a Berkeley store, and president of the University Avenue Association, a business organization. Reddy was a longstanding member of that group and several other Indian immigrant organizations.

"Oh my god, I am surprised," said Muji Rizvi, general manager of Copy Central in Berkeley who is a former tenant of Reddy. "I've known him for years and I hope it's all wrong."

Jim Herron Zamora is an Examiner staff writer. Anita Wadhwani is a freelance writer in Berkeley.


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