Landlord case: Not guilty pleas
JIM HERRON ZAMORA AND MICHAEL DOUGAN

Feb. 08, 2000
©2000 San Francisco Examiner

URL: http://www.sfgate.com/cgi-bin/article.cgi?file=/examiner/archive/2000/02/08/NEWS14967.dtl


Berkeley father, son arraigned together

OAKLAND - A Berkeley landlord and his son, charged with smuggling illegal immigrants from India for labor and sex, in the father's case, pleaded not guilty to all counts in U.S. District Court in Oakland.

Lakireddy Bali Reddy, 62, and Vijay Kumar Lakireddy, 30, nodded their heads to affirm their not guilty pleas during a brief arraignment Monday before Judge Wayne Brazil.

Together, they face nine counts issued by a federal grand jury. The investigation into Reddy's affairs began after one of three teenage girls allegedly smuggled into the United States for sex died of carbon monoxide poisoning last November in one of his 1,000 rental units. Most of those are in

Berkeley.

The two most serious charges - illegally importing minors for immoral purposes - have been filed only against Reddy. He faces a possible 15 years in prison on each count.

Both men declined to comment as they left the courtroom. Lakireddy scooped up one of his 2-year-old twins and left in the company of his wife, who held the other child.

Reddy is free on $10 million bail, secured in a complicated arrangement that freezes all of his vast assets. His attorney, Ted Cassman, told the judge that details of the bond arrangement were still being completed. He said it was an arduous process that involved numerous family members' signing multiple documents and filing them with the Alameda County recorder's office.

Under terms of his release, Reddy is staying at his brother's home in Merced and has ceded day-to-day control over his real estate empire, which includes more than 1,000 apartments in Berkeley.

Lakireddy, who is accused of filing fraudulent visa applications to sponsor employees from India for his Berkeley computer business, is free on $500,000 bail. Like his father, Lakireddy is not allowed the leave the country. But he is free to oversee his business.

If convicted on all counts, Reddy faces up to 70 years in prison, while Lakireddy faces a maximum of 20 years in prison.

Reddy remains under investigation by both Berkeley police and the Alameda County district attorney on suspicion of statutory rape in reference to the two surviving teenage immigrants. Prosecutors have said they will probably file charges against him.

Lakireddy's business activity is also being investigated by local authorities. But investigators have not said whether he will face any state charges.

Reddy and Lakireddy are next due in court next Tuesday, when they will appear before Judge Saundra Brown Armstrong, who will preside over their upcoming trial.


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